NEVADA
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87-0460247
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(State
or other jurisdiction of
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(IRS
Employer
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incorporation
or organization)
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Identification
No.)
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Page No.
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Part
I
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Financial
Information
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Item
1:
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Condensed
Consolidated Financial Statements (Unaudited)
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|||||
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||||||
Balance
Sheets as of March 31, 2009 and September 30, 2008
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3 | |||||
Statements
of Operations – For the Three Months Ended March 31, 2009 and
2008
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4 | |||||
Statements
of Operations – For the Six Months Ended March 31, 2009 and 2008 and from
inception (January 20, 2009) through March 31, 2009
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5 | |||||
Statements
of Cash Flows – For the Six Months Ended March 31, 2009 and 2008 and from
inception (January 20, 2009) through March 31, 2009
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6 | |||||
Notes
to Financial Statements
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7 | |||||
Item
2:
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Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
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14 | ||||
Item
3:
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Quantitative
and Qualitative Disclosure about Market Risk
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17 | ||||
Item
4:
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Controls
and Procedures
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17 | ||||
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Part
II
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Other
Information
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18 | ||||
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||||||
Item
1:
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Legal
Proceedings
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Item
1A:
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Risk
Factors
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|||||
Item
2:
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Unregistered
Sales of Equity Securities and Use of Proceeds
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|||||
Item
3:
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Defaults
Upon Senior Securities
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|||||
Item
4:
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Submission
of Matters to a Vote of Security Holders
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Item
5:
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Other
Information
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Item
6:
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Exhibits
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|||||
Signatures
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|||||
Exhibits
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March
31,
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September
30,
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|||||||
2009
|
2008
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|||||||
(Unaudited)
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||||||||
ASSETS
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||||||||
Current
assets:
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||||||||
Cash
and cash equivalents
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$ | 1,550 | $ | 10,886 | ||||
Accounts
receivable
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22,550 | 15,720 | ||||||
Marketable equity securities, less unrealized loss of $137,130 at March
31,
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||||||||
2009
and unrealized gain of $170,970 at September 30, 2008
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23,400 | 331,500 | ||||||
TOTAL
CURRENT ASSETS
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47,500 | 358,106 | ||||||
Notes
and accrued interest receivable
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233,672 | 228,537 | ||||||
Investments
at cost
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24,500 | 24,500 | ||||||
Website
costs in progress
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173,825 | 173,825 | ||||||
$ | 479,497 | $ | 784,968 | |||||
LIABILITIES
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||||||||
Accounts
payable
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53,139 | 32,609 | ||||||
Accrued
expenses
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860 | 166 | ||||||
Advance
from shareholder
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25,000 | 20,000 | ||||||
TOTAL
CURRENT LIABILITIES
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78,999 | 52,775 | ||||||
Minority
interest
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||||||||
Commitments
and contingencies
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||||||||
STOCKHOLDERS'
EQUITY
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||||||||
Common
stock, $.001 par value; authorized 100,000,000 shares;
50,925,820
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||||||||
shares
and 50,592,487 shares issued and outstanding at March 31,
2009
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||||||||
and
September 30, 2008, respectively
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50,926 | 50,592 | ||||||
Additional
paid-in capital
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9,946,023 | 9,936,356 | ||||||
Accumulated
deficit
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(9,596,451 | ) | (9,254,755 | ) | ||||
Total
stockholders' equity
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400,498 | 732,193 | ||||||
Total
liabilities and stockholders' equity
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$ | 479,497 | $ | 784,968 |
2009
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2008
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|||||||
Revenue
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||||||||
Management
income
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$ | - | $ | - | ||||
Total
income
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- | - | ||||||
Expenses:
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||||||||
General
and administrative expense
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17,453 | 76,903 | ||||||
17,453 | 76,903 | |||||||
Loss
from operations
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(17,453 | ) | (76,903 | ) | ||||
Other
income (expense):
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||||||||
Interest
income
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4,071 | 4,456 | ||||||
Interest
expense
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- | (669 | ) | |||||
Unrealized
loss on marketable equity securities
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(101,100 | ) | (16,875 | ) | ||||
Net
realized and unrealized gains (losses)
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(97,029 | ) | (13,088 | ) | ||||
Loss
before income taxes
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(114,482 | ) | (89,991 | ) | ||||
Income
taxes
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- | - | ||||||
Net
loss before minoritiy interest
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(114,482 | ) | (89,991 | ) | ||||
Minority
interest
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- | 1,033 | ||||||
Net
loss available to common stockholders
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(114,482 | ) | (88,958 | ) | ||||
Preferred
dividends
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- | (162,780 | ) | |||||
Net
loss
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$ | (114,482 | ) | $ | (251,738 | ) | ||
Loss
per share, basic and diluted
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$ | (0.00 | ) | $ | (0.00 | ) | ||
Weighted
average shares outstanding
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50,925,820 | 40,946,993 |
2009
|
2008
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Development
Stage
Inception
(January
20, 2009)
Through
March 31,
2009
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||||||||||
Revenue
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||||||||||||
Management
income
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$ | 7,500 | $ | - | $ | - | ||||||
Total
income
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7,500 | - | - | |||||||||
Expenses:
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||||||||||||
General
and administrative expense
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49,328 | 139,730 | 17,453 | |||||||||
49,328 | 139,730 | 17,453 | ||||||||||
Loss
from operations
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(41,828 | ) | (139,730 | ) | (17,453 | ) | ||||||
Other
income (expense):
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||||||||||||
Interest
income
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8,233 | 5,300 | 4,071 | |||||||||
Interest
expense
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- | - | - | |||||||||
Unrealized
loss on marketable equity securities
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(308,100 | ) | (60,000 | ) | (101,100 | ) | ||||||
Other
income (expense)
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(299,867 | ) | (54,700 | ) | (97,029 | ) | ||||||
Loss
before income taxes
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(341,695 | ) | (194,430 | ) | (114,482 | ) | ||||||
Income
taxes
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- | - | - | |||||||||
Net
loss before minoritiy interest
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(341,695 | ) | (194,430 | ) | (114,482 | ) | ||||||
Minority
interest
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- | 1,376 | - | |||||||||
Net
loss available to common stockholders
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(341,695 | ) | (193,054 | ) | (114,482 | ) | ||||||
Preferred
dividends
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- | (162,780 | ) | - | ||||||||
Net
loss
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$ | (341,695 | ) | $ | (355,834 | ) | $ | (114,482 | ) | |||
Loss
per share, basic and diluted
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$ | (0.01 | ) | $ | (0.01 | ) | $ | (0.00 | ) | |||
Weighted
average shares outstanding
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50,835,161 | 26,332,415 | 50,925,820 |
2009
|
2008
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Development
Stage
Inception
(January
20, 2009)
Through
March
31, 2009
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||||||||||
Operating
activities:
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||||||||||||
Net
increase (decrease) in net assets from operations
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$ | (341,695 | ) | $ | (355,835 | ) | $ | (114,482 | ) | |||
Adjustments
to reconcile net increase (decrease) in net assets
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||||||||||||
from
operations to net cash used in operating activities:
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||||||||||||
Change
in unrealized (gain) loss of maketable securities
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308,100 | 60,000 | 101,100 | |||||||||
Minority
interest
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- | (1,376 | ) | - | ||||||||
Preferred
dividends declared
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- | 162,780 | - | |||||||||
Changes
in operating assets and liabilities:
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||||||||||||
Accounts
receivable and accrued interest
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(11,965 | ) | (5,299 | ) | (4,071 | ) | ||||||
Accounts
payable and accrued expenses
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21,224 | 6,215 | 12,538 | |||||||||
Net
cash used in operating activities
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(24,336 | ) | (133,515 | ) | (4,915 | ) | ||||||
Investing
activities:
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||||||||||||
Website
development costs
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- | (83,478 | ) | - | ||||||||
Investments
made
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- | (264,173 | ) | - | ||||||||
Net
cash used in investing activities
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- | (347,651 | ) | - | ||||||||
Financing
activities:
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||||||||||||
Common
stock issued for cash
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10,000 | 575,250 | - | |||||||||
Preferred
dividends paid in cash
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- | (67,500 | ) | - | ||||||||
Loan
from shareholder
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5,000 | - | - | |||||||||
Collection
of stock subscription receivable
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- | 11,000 | - | |||||||||
Net
cash used in investing activities
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15,000 | 518,750 | - | |||||||||
Net
increase (decrease) in cash and cash equivalents
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(9,336 | ) | 37,584 | (4,915 | ) | |||||||
Cash
and cash equivalents, beginning of period
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10,886 | 8,350 | 6,465 | |||||||||
Cash
and cash equivalents, end of period
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$ | 1,550 | $ | 45,934 | $ | 1,550 | ||||||
Supplemental
Cash Flow Information:
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Cash
paid for interest and income taxes:
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||||||||||||
Interest
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$ | - | $ | - | $ | - | ||||||
Income
taxes
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- | - | - | |||||||||
Non-cash
investing and financing activities:
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Common
stock issued for redemption of preferred stock
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||||||||||||
and
payment of preferred dividends
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- | 397,526 | - | |||||||||
Common
stock issued to acquire investment
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- | 320,000 | - | |||||||||
Common
stock issued for stock subscription receivable
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- | 6,000 | - |
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·
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Trading
securities reported at fair value with unrealized gains and losses
included in earnings;
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·
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Available-for-sale
securities reported at fair value with unrealized gains and losses, net of
applicable deferred income taxes, reported in other comprehensive
income;
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·
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Held-to-maturity
securities and other investments reported at amortized cost;
and
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·
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Investments
using the equity method of
accounting.
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Three
months ended
March
31,
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2009
|
2008
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|||||||
Net
decrease in net assets from operations
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$ | - | $ | (250,189 | ) | |||
Net
loss of wholly-owned subsidiary not
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||||||||
previously
consolidated
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- | (1,549 | ) | |||||
Net
earnings loss
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(265,253 | ) | (251,738 | ) | ||||
Other
comprehensive earnings (loss):
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||||||||
As
originally reported
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- | - | ||||||
Unrealized
gains (losses) on available-for-
|
||||||||
sale
securities
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(192,844 | ) | - | |||||
Net
comprehensive earnings (loss)
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$ | (458,097 | ) | $ | (251,738 | ) | ||
Net
earnings (loss) per share, basic and diluted:
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||||||||
As
originally reported
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N/A | $ | (0.01 | ) | ||||
Restated
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$ | (0.28 | ) | $ | (0.01 | ) |
Six
months ended
March
31,
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||||||||
2009
|
2008
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Net
decrease in net assets from operations
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||||||||
operations
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$ | (202,375 | ) | $ | (353,771 | ) | ||
Net
loss of wholly-owned subsidiary not
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||||||||
previously
consolidated
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(27,855 | ) | (2,064 | ) | ||||
Net
loss for the three months ended March
|
||||||||
31,
2009 on separate company basis
|
(111,466 | ) | - | |||||
Net
loss
|
(341,696 | ) | (355,835 | ) | ||||
Other
comprehensive earnings (loss):
|
||||||||
As
originally reported
|
- | - | ||||||
Unrealized
gains (losses) on available-for-
|
||||||||
sale
securities
|
- | - | ||||||
Net
comprehensive earnings (loss)
|
$ | (341,696 | ) | $ | (355,835 | ) | ||
Net
earnings (loss) per share, basic and diluted:
|
||||||||
As
originally reported
|
$ | - | $ | (0.01 | ) | |||
Restated
|
$ | (0.01 | ) | $ | (0.01 | ) |
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·
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None.
|
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·
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None.
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31.1
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Certification
pursuant to 18 U.S.C. Section 1350 Section 302 of the Sarbanes-Oxley Act
of 2002
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32.1
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Certification
pursuant to 18 U.S.C. Section 1350 Section 906 of the Sarbanes-Oxley Act
of 2002
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DOUBLE
EAGLE HOLDINGS, LTD.
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May
12, 2009
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By:
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/s/M.E.
Durschlag
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M.E.
Durschlag, President,
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Chief
Executive Officer and
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Chief
Financial Officer
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