x
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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o
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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DELAWARE
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000-51886
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26-3534190
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||
(State
or other jurisdiction of
incorporation
or organization)
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(Commission
File No.)
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(IRS
Employee Identification No.)
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Item
1.
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Financial
Statements
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Item
2.
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Management’s
Discussion and Analysis of Financial Condition
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Item
3
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Quantitative
and Qualitative Disclosures About Market Risk
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Item
4T.
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Control
and Procedures
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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
and Reports on Form 8-K
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PAGE
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1
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CONDENSED
BALANCE SHEETS AS OF MARCH 31, 2009 (UNAUDITED) AND AS OF DECEMBER 30,
2008 (AUDITED).
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PAGE
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3
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CONDENSED
STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND
2008 AND FOR THE PERIOD DECEMBER 9, 2005 (INCEPTION) TO MARCH 31, 2009
(UNAUDITED).
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PAGE
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3
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CONDENSED
STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIENCY FOR THE PERIOD FROM
DECEMBER 9, 2005 (INCEPTION) TO MARCH 31, 2009
(UNAUDITED).
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PAGE
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4
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CONDENSED
STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND
2008 AND FOR THE PERIOD DECEMBER 9, 2005 (INCEPTION) TO MARCH 31, 2009
(UNAUDITED).
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PAGES
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5 -
12
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NOTES
TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED).
|
(A
Development Stage Company)
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||||||||
Condensed
Balance Sheets
|
||||||||
ASSETS
|
||||||||
March
31, 2009
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December
31, 2008
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|||||||
(Unaudited)
|
||||||||
Current
Assets
|
||||||||
Cash
|
$ | 4,168 | $ | 33,950 | ||||
Prepaid
expenses
|
3,049 | 359 | ||||||
Total Current
Assets
|
7,217 | 34,309 | ||||||
Property
and Equipment, net
|
62,382 | 2,437 | ||||||
Intangible
assets
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275 | 275 | ||||||
Total Assets
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$ | 69,874 | $ | 37,021 | ||||
LIABILITIES AND STOCKHOLDERS'
DEFICIENCY
|
||||||||
Current
Liabilities
|
||||||||
Accounts
payable
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$ | 35,967 | $ | 860 | ||||
Accrued
expenses
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45,398 | 46,910 | ||||||
Loan
payable - related party
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- | 3,803 | ||||||
Total
Current Liabilities
|
81,365 | 51,573 | ||||||
Commitments
and Contingencies
|
||||||||
Stockholders'
Deficiency
|
||||||||
Preferred
stock, $0.001 par value; 10,000,000 shares
authorized,
|
||||||||
No
shares issued and outstanding
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- | - | ||||||
Common
stock, $0.001 par value; 250,000,000 shares
authorized,
|
||||||||
182,284,000
and 181,940,000 shares issued and outstanding,
respectively
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182,284 | 181,940 | ||||||
Additional
paid-in capital
|
151,534 | 128,078 | ||||||
Subscription
receivable
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- | (67,750 | ) | |||||
Deficit
accumulated during the development stage
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(345,309 | ) | (256,820 | ) | ||||
Total
Stockholders' Deficiency
|
(11,491 | ) | (14,552 | ) | ||||
Total
Liabilities and Stockholders' Deficiency
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$ | 69,874 | $ | 37,021 | ||||
(A
Development Stage Company)
|
||||||||||||
Condensed
Statements of Operations
|
||||||||||||
UNAUDITED
|
||||||||||||
For
the Three Months Ended,
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For
the Period From
December 9,
2005 (Inception) to
|
|||||||||||
March
31, 2009
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March
31, 2008
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March
31, 2009
|
||||||||||
Operating
Expenses
|
||||||||||||
General
and Administrative
|
$ | 18,934 | $ | 250 | $ | 84,394 | ||||||
Professional
Fees
|
15,555 | - | 26,880 | |||||||||
Compensation
|
54,000 | - | 97,549 | |||||||||
Total
Operating Expenses
|
88,489 | 250 | 208,823 | |||||||||
Loss
from Operations
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(88,489 | ) | (250 | ) | (208,823 | ) | ||||||
Other
Expense
|
||||||||||||
Interest
Expense
|
- | - | (31 | ) | ||||||||
Total
Other Expense
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- | - | (31 | ) | ||||||||
Provision
for Income Taxes
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- | - | - | |||||||||
Net
Loss
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$ | (88,489 | ) | $ | (250 | ) | $ | (208,854 | ) | |||
Net
Loss Per Share - Basic and Diluted
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$ | (0.00 | ) | $ | (0.00 | ) | ||||||
Weighted
average number of shares outstanding
|
||||||||||||
during
the year Basic and Diluted
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182,247,733 | 400,000 | ||||||||||
So
Act Network, Inc.
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||||||||||||||||||||||||||||||||
(A
Development Stage Company)
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||||||||||||||||||||||||||||||||
Condensed
Statement of Changes in Stockholders' Deficiency
|
||||||||||||||||||||||||||||||||
For
the Period from December 9, 2005 (Inception) to March 31,
2009
|
||||||||||||||||||||||||||||||||
Preferred
stock
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Common
stock
|
Additional
|
Total
|
|||||||||||||||||||||||||||||
paid-in
|
Accumulated
|
Subscription
|
Stockholder's
|
|||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
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Amount
|
capital
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Deficit
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Receivable
|
(Deficiency)
|
|||||||||||||||||||||||||
Balance,
December 9, 2005 (Inception)
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- | $ | - | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Stock
issued on acceptance of incorporation expenses
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- | - | 100,000 | 100 | - | - | - | 100 | ||||||||||||||||||||||||
Net
loss for the period December 9, 2005 (Inception) to December 31,
2005
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- | - | - | - | - | (400 | ) | (400 | ) | |||||||||||||||||||||||
Balance,
December 31, 2005
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- | - | 100,000 | 100 | - | (400 | ) | - | (300 | ) | ||||||||||||||||||||||
Net
loss
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- | - | - | - | - | (1,450 | ) | - | (1,450 | ) | ||||||||||||||||||||||
Balance,
December 31, 2006
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- | - | 100,000 | 100 | - | (1,850 | ) | - | (1,750 | ) | ||||||||||||||||||||||
Net
loss
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- | - | - | - | - | (1,400 | ) | - | (1,400 | ) | ||||||||||||||||||||||
Balance,
December 31, 2007
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- | - | 100,000 | 100 | - | (3,250 | ) | - | (3,150 | ) | ||||||||||||||||||||||
Common
stock issued for services to founder ($0.001/sh)
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- | - | 44,900,000 | 44,900 | - | - | - | 44,900 | ||||||||||||||||||||||||
Common
stock issued for cash ($0.25/sh)
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- | - | 473,000 | 473 | 117,777 | - | (67,750 | ) | 50,500 | |||||||||||||||||||||||
Common
stock issued for services ($0.25/sh)
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- | - | 12,000 | 12 | 2,988 | - | - | 3,000 | ||||||||||||||||||||||||
Shares
issued in connection with stock dividend
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- | - | 136,455,000 | 136,455 | - | (136,455 | ) | - | - | |||||||||||||||||||||||
In
kind contribution of rent
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- | - | - | - | 2,913 | - | - | 2,913 | ||||||||||||||||||||||||
Accrued
expenses payment made by a former shareholder
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- | - | - | - | 4,400 | - | - | 4,400 | ||||||||||||||||||||||||
Net
loss
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- | - | - | - | - | (117,115 | ) | - | (117,115 | ) | ||||||||||||||||||||||
Balance,
December 31, 2008
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- | - | 181,940,000 | 181,940 | 128,078 | (256,820 | ) | (67,750 | ) | (14,552 | ) | |||||||||||||||||||||
Common
stock issued for cash ($0.25/sh)
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- | - | 62,000 | 62 | 15,438 | - | - | 15,500 | ||||||||||||||||||||||||
Common
stock issued for services ($0.25/sh)
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- | - | 24,000 | 24 | 5,976 | - | - | 6,000 | ||||||||||||||||||||||||
Shares
issued in connection with stock dividend
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- | - | 258,000 | 258 | (258 | ) | - | - | - | |||||||||||||||||||||||
Stock
offering costs
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- | - | - | - | (850 | ) | - | - | (850 | ) | ||||||||||||||||||||||
Collection
of subscription receivable
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- | - | - | - | - | - | 67,750 | 67,750 | ||||||||||||||||||||||||
In
kind contribution of rent
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- | - | - | - | 3,150 | - | - | 3,150 | ||||||||||||||||||||||||
Net
loss for the period ended March 31, 2009
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- | - | - | - | - | (88,489 | ) | - | (88,489 | ) | ||||||||||||||||||||||
Balance
March 31, 2009, UNAUDITED
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- | $ | - | 182,284,000 | $ | 182,284 | $ | 151,534 | $ | (345,309 | ) | $ | - | $ | (11,491 | ) |
So
Act Network, Inc.
|
||||||||||||
(A
Development Stage Company)
|
||||||||||||
Condensed
Statements of Cash Flows
|
||||||||||||
UNAUDITED
|
||||||||||||
For
the Three Months Ended
|
For
the Period From
December 9,
2005 (Inception) to
|
|||||||||||
March
31, 2009
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March
31, 2008
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March
31, 2009
|
||||||||||
Cash
Flows From Operating Activities:
|
||||||||||||
Net
Loss
|
$ | (88,489 | ) | $ | (250 | ) | $ | (208,854 | ) | |||
Adjustments
to reconcile net loss to net cash used in operations
|
||||||||||||
Depreciation
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211 | - | 338 | |||||||||
Stock
offering costs
|
(850 | ) | - | (850 | ) | |||||||
In
kind contribution of rent
|
3,150 | - | 6,063 | |||||||||
Stock
issued for services
|
6,000 | - | 54,000 | |||||||||
Changes
in operating assets and liabilities:
|
||||||||||||
Increase
in prepaid expenses
|
(2,690 | ) | - | (3,049 | ) | |||||||
Increase
accounts payable
|
35,107 | - | 35,967 | |||||||||
(Decrease)/Increase
in Accrued Expenses
|
(1,512 | ) | 250 | 45,398 | ||||||||
Net
Cash Used In Operating Activities
|
(49,073 | ) | - | (70,987 | ) | |||||||
Cash
Flows From Investing Activities:
|
||||||||||||
Register
of trademark
|
- | - | (275 | ) | ||||||||
Purchase
of equipment
|
(60,156 | ) | - | (62,720 | ) | |||||||
Net
Cash Used In Investing Activities
|
(60,156 | ) | - | (62,995 | ) | |||||||
Cash
Flows From Financing Activities:
|
||||||||||||
Proceeds
from stockholder loans
|
- | - | 18,503 | |||||||||
Repayment
of stockholder loans
|
(3,803 | ) | - | (18,503 | ) | |||||||
Accrued
expenses payment made by a former shareholder
|
- | - | 4,400 | |||||||||
Proceeds
from issuance of stock, net of subscriptions receivable
|
15,500 | - | 133,750 | |||||||||
Proceeds
from collection of stock subscription
|
67,750 | - | - | |||||||||
Net
Cash Provided by Financing Activities
|
79,447 | - | 138,150 | |||||||||
Net
Decrease in Cash
|
(29,782 | ) | - | 4,168 | ||||||||
Cash
at Beginning of Period
|
33,950 | - | - | |||||||||
Cash
at End of Period
|
$ | 4,168 | $ | - | $ | 4,168 | ||||||
Supplemental disclosure of cash flow
information:
|
||||||||||||
Cash
paid for interest
|
$ | - | $ | - | $ | - | ||||||
Cash
paid for taxes
|
$ | - | $ | - | $ | - | ||||||
Supplemental disclosure of non-cash investing and
financing activities:
|
||||||||||||
Shares
issued in connection with stock dividend
|
$ | 258 | $ | 136,713 | ||||||||
March 31, 2009
|
March 31, 2008
|
|||||||
Website
Development
|
$ | 61,185 | $ | - | ||||
Software
|
400 | - | ||||||
Office
Equipment
|
1,135 | - | ||||||
Less
accumulated depreciation and amortization
|
(338 | ) | - | |||||
$ | 62,382 | $ | - |
For
the Quarters Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
Operating
Expenses
|
||||||||
General
and Administrative
|
$
|
18,934
|
$
|
250
|
||||
Professional
Fees
|
15,555
|
-
|
||||||
Compensation
|
54,000
|
-
|
||||||
Total
Operating Expenses
|
88,489
|
250
|
||||||
Loss
from Operations
|
(88,489
|
)
|
(250
|
)
|
||||
Other
Expense
|
||||||||
Interest
Expense
|
-
|
-
|
||||||
Total
Other Expense
|
-
|
-
|
||||||
Provision
for Income Taxes
|
-
|
-
|
||||||
Net
Loss
|
$
|
(88,489
|
)
|
$
|
(250
|
)
|
||
Net
Loss Per Share - Basic and Diluted
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
||
Weighted
average number of shares outstanding
|
||||||||
during
the year Basic and Diluted
|
182,247,733
|
400,000
|
||||||
SO
ACT NETWORK, INC.
|
||
Date:
May 14, 2009
|
By:
|
/s/ Greg
Halpern
|
Greg
Halpern
Chief
Executive Officer,
Chief
Financial Officer
(Principal
Accounting
Officer)
Director
|