Map Financial 10-Q 2010 Q0 Quarterly report

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly period ended June 30, 2009

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Commission file number: 333-153726

MAP FINANCIAL GROUP, INC.

(Exact name of registrant as specified in its charter)

Nevada	26-2936813
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
80 Broad Street
Suite 2700
New York, NY	10004
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 629-1955

Inapplicable

(Former name, former address and former fiscal year if changed from last report.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  ¨   No ¨

Indicate by check mark if 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.

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

At August 13, 2009, the number of shares outstanding of the registrant’s common stock was 20,000,000.

TABLE OF CONTENTS

			Page
Part I - Financial Information
	Item 1.	Condensed Financial Statements:
		Condensed Consolidated Balance Sheets, June 30, 2009 (unaudited) and December 31, 2008 (audited)	3
		Condensed Consolidated Statements of Operations for the Three and Six  Months Ended June 30, 2009 and 2008 (unaudited)	4
		Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2009 and 2008 (unaudited)	5
		Notes to Unaudited Condensed Consolidated Financial Statements	6
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	10
	Item 4.	Controls and Procedures	15
Part II - Other Information
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	16
	Item 6.	Exhibits	16
		Signatures	17

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MAP FINANCIAL GROUP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

JUNE 30, 2009 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED)

	June 30,			December 31,
	2009			2008
ASSETS
Current  Assets:
Cash and cash equivalents	$	450,433		$	253,707
Loans receivable, net of allowances for loan losses of $104,046 at June 30, 2009 and $125,527 at December 31, 2008		1,298,982			1,680,171
Prepaid expenses		9,835			1,948
Total Current Assets		1,759,250			1,935,826
Property and equipment, net		295,451			213,537
Other Assets		22,748			5,844
TOTAL  ASSETS	$	2,077,449		$	2,155,207
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable and accrued expenses	$	434,253		$	344,268
Stock subscription proceeds - common shares unissued		213,000			-
Due to related parties		188,321			202,371
Note payable		1,741,443			1,827,460
Total Current Liabilities	$	2,577,017		$	2,374,099
Stockholders' Deficit:
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, issued none		-			-
Common stock , $0.001 par value, 500,000,000 shares authorized, 20,000,000 issued and outstanding		20,000			20,000
Additional paid- in capital		12,730			12,730
Accumulated  deficit		(532,298	)		(251,622	)
Total Stockholders' Deficit		(499,568	)		(218,892	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	2,077,449		$	2,155,207

See Accompanying Notes to the Condensed Consolidated Financial Statements.

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MAP FINANCIAL GROUP INC.

CONDENSED CONSOLIDATED  STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
	2009			2008  (Proforma)			2009			2008 (Proforma)
Revenue	$	330,472		$	485,951		$	746,228		$	637,471
Expenses:
General and administrative expenses		420,302			214,913			890,709			436,119
Operating (loss) income		(89,830	)		271,038			(144,481	)		201,352
Other expenses:
Interest expense		68,966			51,646			136,195			98,772
(Loss) income before provision for income taxes		(158,796	)		219,392			(280,676	)		102,580
Provision for income taxes		-			39,400			-			39,400
Valuation allowance income taxes		-			(39,400	)					(39,400	)
Income taxes, net		-			-			-			-
Net (loss) income	$	(158,796	)	$	219,392		$	(280,676	)	$	102,580
Basic net earnings (loss) per share		(0.01	)		0.02			(0.01	)		0.01
Weighted average number of common shares outstanding		20,000,000			10,000,000			20,000,000			10,000,000

See Accompanying Notes to the Condensed Consolidated Financial Statements.

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MAP FINANCIAL GROUP INC.

CONDENSED CONSOLIDATED  STATEMENTS OF  CASH FLOWS

FOR THE SIX MONTHS ENDED (UNAUDITED) JUNE 30, 2009 AND 2008

	Six Months Ended June 30,
	2009			2008 (Proforma)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(280,676	)	$	102,580
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation		33,819			5,883
Changes in operating assets and liabilities:
Decrease (increase)  in loans receivable, net		381,189			(473,663	)
(Increase) decrease in prepaid expenses		(7,887	)		2,759
Increase in other assets		(16,904	)		-
Decrease in due to related parties		(14,050	)		(20,847	)
Increase in accounts payable and accrued expenses		89,985			152,383
Net cash provided by (used in) operating activities		185,476			(230,905	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(115,733	)		(11,418	)
Net cash used in  investing activities		(115,733	)		(11,418	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of  loans		(86,017	)		-
Proceeds from stock subscriptions		213,000			-
Proceeds from note payable		-			375,113
Net cash provided by financing activities		126,983			375,113
Net increase in cash and cash equivalents		196,726			132,790
Cash and cash equivalents at beginning of period		253,707			52,295
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	450,433		$	185,085
Supplemental cash flow  information:
Interest paid	$	68,966		$	18,382

See Accompanying Notes to the Condensed Consolidated Financial Statements.

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MAP FINANCIAL GROUP INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2009

NOTE 1 - BASIS OF PRESENTATION

The condensed consolidated financial statements include the accounts of Map Financial Group Inc., its wholly-owned subsidiary, FastCash International Limited, and the following wholly-owned subsidiaries of FastCash International Limited: Financial Services Inc. located in the Commonwealth of Dominica; FastCash (St. Lucia) Ltd.; FastCash (Antigua) Ltd; FastCash Ltd (Grenada); and Cash Express Ltd (St. Vincent). The Company acquired its subsidiaries in August 2008.  All significant intercompany accounts and transactions have been eliminated in consolidation. The comparative condensed consolidated financial statements for the three months ended June 30, 2009 and 2008 include the Company’s financial information for the 2009 period, and the historical financial information of the Company’s subsidiaries for the 2008 period.

The accompanying condensed consolidated balance sheet as of December 31, 2008, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Article 8 of Regulation S-X and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations, changes in stockholders’ deficit, and cash flows in conformity with accounting principles generally accepted in the United States of America.  However, all adjustments (consisting only of normal recurring accruals) which, in the opinion of management, are necessary for a fair presentation of the unaudited condensed consolidated financial statements have been included in the results of operations for the three and six months ended June 30, 2009. The proforma amounts for the three and six months ended June 30, 2008 are derived from the acquired companies’ internal financial statements.  For further information, please refer to the consolidated financial statements and footnotes which are included in our Form S-1 as of and for the year ended December 31, 2008.

Proforma results of operations for the six months ended June 30, 2008 are as follows:

	Map Financial Group, Inc.		Financial Services, Inc. and Affiliates (acquired companies)		Total Proforma June 30, 2008
Revenue		-	$	637,471	$	637,471
Expense		-		436,119		436,119
Other deductions		-		98,772		98,772
Net Income		-	$	102,580	$	102,580

Operating results for the period ended June 30, 2009 is not necessarily indicative of the results that may be expected for the year ending December 31, 2009.

Nature of Operations in Foreign Countries

All of the Company’s subsidiaries are located in various foreign countries. These foreign operations are subject to various political, economic, and other risks and uncertainties inherent in the countries in which the Company operates. Among other risks, the Company’s operations are subject to the risks of restrictions on transfer of funds; changing taxation policies; foreign exchange restrictions; and political conditions and government regulations.

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NOTE 2 – GOING CONCERN

As shown in the accompanying unaudited condensed consolidated financial statements, the Company has incurred recurring losses from operations, and as of June 30, 2009 an accumulated deficit of $532,298, the Company’s current liabilities exceeded its current assets by $817,767and its total assets by $499,568. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Over the past year the Company’s growth has been funded mainly by our revolving credit agreement. The Company expects that it will need to raise substantial additional capital investment to accomplish its business plan over the next several years. In addition, the Company may wish to selectively pursue possible acquisitions of businesses, technologies or products complementary to those of the Company in the future in order to expand its presence in the marketplace and achieve operating efficiencies. However there can be no assurance that these objectives will be achieved. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

NOTE 3 - EARNINGS PER SHARE

Basic earnings per share of common stock are computed by dividing net loss by the weighted average number of common shares outstanding during the period.

Diluted earnings per share calculations were not required for the three months and six months ended June 30, 2009 and 2008, since there were no common stock equivalents outstanding.

NOTE 4 - NOTE PAYABLE

Note payable represents amounts due by the various subsidiaries in the form of a revolving credit agreement in the amount of $10,000,000. Under the terms of the agreement with MapCash Management, Ltd., interest is charged at a rate of 15% per annum which is due and payable on the first day of each January, April, July, and October. Advances and any unpaid accrued interest are due on July 10, 2010. Amounts due at June 30, 2009 and December 31, 2008 were $1,741,443 and $1,827,460 respectively.  The proceeds of the loan shall be used solely for its working capital needs.

NOTE 5 - DUE TO RELATED PARTIES

At June 30, 2009 amounts totaling $188,321 represents advances from an associated company which bear no interest and are due on demand. Based on an interest rate of 5%, unrecognized interest would have been approximately $4,000 at June 30, 2009.

NOTE 6 - ALLOWANCE FOR LOAN LOSSES

The Company maintains an allowance for loan losses equal to the estimated uncollectible amounts. The Company’s estimate is based on historical experience and a review of the current status of the loans receivable. The Company writes off 100% of balances 120 days past due to bad debt and establishes reserves for 50% of accounts 60 days past due, 25% of accounts 30 days past due and 5% for all other accounts. The Company’s allowance policy is subject to ongoing review. As the Company’s historical loss experience, recent loss trends, changes in loan characteristics, including loan amounts and terms, delinquency levels, collection practices and general economic conditions change, the Company may need to make additional allowance in future periods. Loans receivable are presented net of an allowance for loan losses and unearned revenues.

The following table details the calculation of the Company’s loans receivable net of the allowance for loan losses and unearned revenues:

	Six Months Ended			Year Ended
	June 30, 2009			December 31, 2008
Loans receivable	$	1,458,603		$	1,969,967
Less allowance for loan losses		104,046			125,527
		1,354,557			1,844,440
Less unearned revenues		(55,575	)		(164,269	)
Loans receivable - net	$	1,298,982		$	1,680,171

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NOTE 7 – RECENT ACCOUNTING PRONOUNCEMENTS

On January 12, 2009, the FASB issued FASB Staff Position EITF 99-20-1, Amendments to the Impairment Guidance of EITF Issue No. 99-20 (FSP). FASB FSP 99-20-1 amends the impairment guidance in FASB EITF Issue No. 99-20, Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests that Continue to be held by a Transferor in Securitized Financial Assets. The intent of the FSP is to reduce complexity and achieve more consistent determinations as to whether other-than-temporary impairments of available for sale or held to maturity debt securities have occurred. The FSP is effective for interim and annual reporting periods ending after December 15, 2008. The adoption of this FSP did not have an impact on the Company’s consolidated financial statements.

In April 2009, the FASB issued three Final Staff Positions (FSPs) to provide additional guidance and disclosures regarding fair value measurements and impairments of securities:

FSP FAS 157-4. “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly”, provides guidance for estimating fair value  when the volume and level of activity for an asset or liability have significantly decreased. The Company does not expect that FSP FAS 157-4 will have a material impact on the Company’s consolidated financial statements.

FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments, amends the other-than-temporary impairment guidance for debt securities to make the guidance more operational and to improve the presentation and disclosure of other-than-temporary impairments on debt and equity securities in financial statements. The Company does not expect that FSP FAS 115-2 and FAS 124-2 will have a material impact on the Company’s consolidated financial statements.

FSP FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments, requires disclosure about fair value of financial instruments for interim reporting periods of publicly traded companies as well as in annual financial statements. The Company will review the requirements of FSP FAS 107-1 and comply with its requirements.

These three FSPs are effective for interim and annual periods ending after June 15, 2009.

NOTE 8 – FAIR VALUE

In September 2006, the Financial Accounting Standard Board issued SFAS No. 157 “Fair Value Measurement” that provides enhanced guidance for using fair value to measure assets and liabilities. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. The standard does not expand the use of fair value in any new circumstances. This Statement is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Earlier application is encouraged, provided that the reporting entity has not yet issued financial statements for that fiscal year, including financial statements for an interim period within that fiscal year. The Company does not expect this pronouncement will have a material effect on its financial statements.

NOTE 9 – COMMITMENTS AND CONTINGENCIES

Various subsidiaries of the Company lease office space on a month to month basis while others have leases expiring at various dates through 2013.  These leases generally call for monthly rentals plus escalations.  As of June 30, 2009, the future minimum annual rental payments required under the Company’s operating leases are as follows:

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Year	Amount
2009*	$	71,030
2010		147,194
2011		122,564
2012		101,836
2013		26,885
Total	$	469,509

* For the period July 1 through December 31, 2009

Rent expense charged to operations for the six months ended June 30, 2009 totaled $55,877.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

forward-looking statements

When used in this discussion and elsewhere in this Form 10-Q, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made, and readers are advised that various factors could affect our financial performance and could cause our actual results for future periods to differ materially from those anticipated or projected.  While it is impossible to identify all such factors, such factors include, but are not limited to, those risks identified in our Registration Statement on Form S-1 filed with the Securities and Exchange Commission.

We do not undertake and specifically disclaims any obligation to update any forward-looking statements to reflect occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

overview

Map Financial Group, Inc. (referred to in this report as the “Company”, “we” or “our”) was incorporated under the laws of the State of Nevada on June 27, 2008, to act as a holding company for five indirect, wholly-owned operating subsidiaries that provide micro-lending services in the Caribbean (our operating subsidiaries are referred to in this report as the “Operating Subsidiaries”).  Through the Operating Subsidiaries, we offer short term micro-loans to the employees of various governmental agencies and private companies in the Commonwealth of Dominica, Antigua and Barbuda, St. Lucia, St. Vincent and the Grenadines and Grenada.

The following paragraphs discuss our results of operations and financial condition for the fiscal quarter ended June 30, 2009, as compared to our fiscal quarter ended June 30, 2008.  Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States and general practices within the financial services industry.  The financial condition and results of operations of the Operating Subsidiaries are measured using the local currency, Eastern Caribbean Dollars, as the functional currency.  The Operating Subsidiaries generate and expend cash primarily in their local currency.  Revenues and expenses have been translated into U.S. dollars at average exchange rates prevailing during the period.  Assets and liabilities have been translated at the rates of exchange on the balance sheet date.  There were no major exchange rate fluctuation during the period presented below, and therefore no foreign exchange gain or loss arising from translation was recorded for these periods.

We have incurred recurring losses from operations, and as of June 30, 2009 an accumulated deficit of $532,298, our current liabilities exceeded our current assets by $817,767and its total assets by $499,568. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Over the past year our growth has been funded mainly by our revolving credit agreement. We expect that the Company will need to raise substantial additional capital investment to accomplish our business plan over the next several years. In addition, we may wish to selectively pursue possible acquisitions of businesses, technologies or products complementary to those of the Company in the future in order to expand our presence in the marketplace and achieve operating efficiencies.  However there can be no assurance that these objectives will be achieved.

results of operations

Revenues.  Our revenues are derived from our lending business, and our net income depends largely upon our interest income.  Revenues for the second quarter decreased by $155,479, from $485,951 in 2008 to $330,472 in 2009, a 32% decrease.  Since our loans are short term and our revenues during any quarter are derived primarily from loans made during the previous six months, our revenues for the quarter ended June 30, 2009 decreased from the corresponding 2008 period due to a decrease in the number of loans issued in the first and second quarters of this year as compared to last year. Our year-to-date revenues increased by $108,757, from $637,471 in 2008 to $746,228 in 2009, a 17% increase, due to an increase in the number of loans issued in the latter part of 2008 which matured during the first six months of 2009.

Interest Expense.  Interest expense for the quarter increased from $51,646 in 2008 to $68,966 in 2009, a 34% increase, due to higher balances on our credit facilities as our lending business increased. Total interest expense year-to-date increased from $98,772 in 2008, to $136,195in 2009, a 38% increase, due to higher balances on our credit facilities as our lending business increased.

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General and Administrative Expenses.  General and administrative expenses increased from $214,913 for the three month period ended June 30, 2008, to $420,302 for the corresponding 2009 period, a $205,389 increase (96%).  For the six month period, general and administrative expenses increased from $436,119 for the 2008 period to $890,709 for the corresponding 2009 period, a $454,590 increase (104%).  The increases for the three and six month periods were primarily due to increases in personnel, marketing, travel and general overhead expenses, and higher expenses associated with an increased number of branch offices.

Net Loss.  We realized consolidated net loss of $158,796 for the second quarter of 2009 compared to a $219,392 net income for the second quarter of 2008.  The difference was primarily due to an increase in provision for loan losses and an increase in general and administrative expenses, partially offset by the increase in revenues during the second quarter of 2009.  For the first six months of 2009, we realized consolidated net loss of $280,676 compared to a $102,580 net income for the first six months of 2008.  The difference was primarily due to an increase in provision for loan losses and an increase in general and administrative expenses.

Income Taxes.  During the three and six months ended June 30, 2009 and 2008, the Company recorded no income tax expense. The Company’s effective tax rate for the three and six month period in 2009 and 2008 was zero, due to a six month 2009 net loss and a year end net loss for 2008.

Provision for Loan Losses.  Our allowance for loan losses is based on the probable estimated losses that may be sustained in our loan portfolio and is based on two basic principles of accounting: (i) Statement of Financial Accountings Standards (SFAS) No. 5 “Accounting for Contingencies”, which requires that losses be accrued when they are probable of occurring and estimable; and (ii) SFAS Nos. 114 and 118, “Accounting by Creditors for Impairment of a Loan”, which requires that losses be accrued based on the differences between the value of collateral, present value of future cash flows or values that are observable in the secondary market and the loan balance.

The allowance for loan losses is established through a provision for loan losses charged to expense.  Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. The allowance, based on evaluations of the collectability of loans and prior loan loss experience, is an amount that management believes will be adequate to absorb possible losses on existing loans that may become uncollectable.  The evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, value of collateral, and current economic conditions and trends that may affect the borrower’s ability to pay.

During the six months period ended June 30, 2009, we made provisions of $86,828 for loan losses, respectively, compared to $125,527 provision for loan losses for the six months ended June 30, 2008.  For the six month period ended June 30, 2009 write offs totaled $118,132.

Analysis of Allowance for Loan Losses
			Additions
	Recoveries		to Reserve		Write offs			Total
Balance December 31, 2008								$	125,527
Dominica	$	1,754	$	26,489	$	(30,870	)		(2,627	)
Antigua		2,402		12,839		(21,491	)		(6,250	)
St. Lucia		4,208		24,992		(45,648	)		(16,448	)
St. Vincent		505		14,420		(8,246	)		6,679
Grenada		954		8,088		(11,877	)		(2,835	)
Activity for the Period Ended June 30, 2009	$	9,823	$	86,828	$	(118,132	)	$	(21,481	)
Balance at June 30, 2009								$	104,046

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financial condition

General.  Our assets decreased to $2,077,449 at June 30, 2009 from $2,155,207 at December 31, 2008, primarily due to a decrease in loans receivable. Our net loans receivable totaled $1,298,982 at June 30, 2009, compared to $1,680,171 at December 31, 2008, a decrease of $381,189 (23%), primarily attributable to a decrease in loans issued during the period.

Assets.  Our total assets decreased to $2,077,449 at June 30, 2009 from $2,155,207 at December 31, 2008, primarily due to a decrease in loans receivable.  The decrease in the loan portfolio during the six months period ended June 30, 2009 is due to stricter lending requirements which we instituted at the end of 2008.

The following table illustrates the aggregate amount of funds loaned by each of the Operating Subsidiaries in the quarters ended June 30, 2009 and 2008.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Country	2009		2008		2009		2008
Dominica	$	269,245	$	461,923	$	517,958	$	794,084
Antigua		239,795		200,729		441,328		343,588
St. Lucia		306,461		398,494		541,370		827,465
St. Vincent		231,139		174,239		387,143		341,538
Grenada		108,108		122,820		226,053		197,502
TOTAL	$	1,154,748	$	1,358,205	$	2,113,852	$	2,504,177

We financed $203,457 less during the three month period ended June 30, 2009 compared to 2008, primarily due to a general economic downturn in the Caribbean region. We took additional steps to reduce the number of borrowers from vulnerable sectors such as tourism and hospitality. We constantly review employment data and developments in each jurisdiction to mitigate the risk of companies downsizing and layoffs.

Liabilities.  Our liabilities consist primarily of commercial and private loans to the Company used to fund our lending business.  Our total liabilities increased to $2,577,017 at June 30, 2009, from $2,374,099 at December 31, 2008, primarily due to an increase in accounts payable and accrued expenses. The following table illustrates our liabilities for the two periods:

	Six Months Ended		Year Ended
	30-Jun-09		31-Dec-08
Loans payable	$	1,741,443	$	1,827,460
Due to related parties		188,321		202,371
Accounts payable and accrued expenses		434,253		344,268
Stock subscription proceeds-  shares not issued		213,000		-
TOTAL LIABILITIES	$	2,577,017	$	2,374,099

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Non-Performing Loans.  Under the provisions of SFAS Nos. 114 and 118, Accounting by Creditors for Impairment of a Loan, a loan is considered impaired if it is probable that a lender will not collect all principal and interest payments according to the loan’s contractual terms.  The impairment of the loan is measured at the present value of the expected cash flows using the loan’s effective interest rate, or the loan’s observable market price, or the fair value of the collateral if repayment is expected to be provided by the collateral.  Generally, our impairment of such loans is measured by reference to the fair value of the collateral.  Interest income generally is not recognized on specific impaired loans unless the likelihood of further loss is remote.  Interest payments received on such loans are applied as a reduction of the loans principal balance.  Interest income on the other nonaccrual loans is recognized only to the extent of interest payments received.

As of June 30, 2009 we had loans of $32,050 which were more than 61 days late and for which we continue to accrue interest.  We believe that both the principal and related accrued interest on these loans is collectable.

The following table shows the gross loans receivable and amounts past due of overdue accounts, as of June 30, 2009 for each of the Operating Subsidiaries:

Country	Total Past Due Accounts						Loan Receivable
	1-30 Days		31-60 Days		61 Days and over
Dominica	$	14,869	$	7,378	$	9,970	$	429,649
Antigua		7,592		3,118		4,754		239,803
St. Lucia		39,610		11,657		9,993		404,886
St. Vincent		5,598		3,310		2,284		261,267
Grenada		2,050		1,456		5,049		122,998
TOTAL	$	69,719	$	26,919	$	32,050	$	1,458,603

Allowance for Loan Losses.  We maintain an allowance for loan losses equal to the estimated uncollectible amounts.  Our estimate is based on historical collection experience and a review of the current status of the loans receivable. We write off as bad debt 100% of balances 120 days past due and establish reserves for 50% of accounts more than 60 days past due, 25% of accounts more than 30 days past due and 5% for all other accounts.  Our allowance policy is subject to ongoing review. As our historical loss experience, recent loss trends, changes in loan characteristics including loan amounts and terms, delinquency levels, collection practices and general economic conditions change, we may need to make additional allowance in future periods.  Loans receivable are presented net of an allowance for loan losses and unearned revenues.

liquidity and capital resources

The Operating Subsidiaries obtain the funds to make loans from their parent, FastCash International Limited (“FCI”). FCI and all its wholly-owned subsidiaries are parties to a Master Loan Agreement with MapCash Management Limited (“MapCash Management”), pursuant to which MapCash Management is obligated to make advances up to the aggregate principal sum of $10,000,000 upon the request of FCI or an Operating Subsidiary. Interest accrues on such advances at the rate of 15% per annum and is paid quarterly on the 1st day of each January, April, July and October. The entire unpaid principal balance and accrued and unpaid interest are due and payable on July 10, 2010. Any future subsidiaries of FCI may become parties to the Master Loan Agreement and obtain advances from MapCash Management in accordance with the terms of this Master Loan Agreement.

MapCash Management obtains the funds to make loans under the Master Loan Agreement pursuant to a $10,000,000 Line of Credit agreement between MapCash Management and Ice Assets, LLC (“Ice Assets”), a New York limited liability company, which is 50% owned by Mr. Zev Drizin, a director of the Company.  The terms of the $10,000,000 Line of Credit agreement provide, among other things, that Ice Assets has sole and absolute discretion with respect to any advances to MapCash Management. Interest accrues at the rate of 10% per annum and all outstanding amounts are due and payable to Ice Assets on July 10, 2010.  Pursuant to this agreement, Ice Assets has the right to designate one member to our board of directors. Upon termination of the Line of Credit facility with Ice Assets, the right of Ice Assets to designate one member of our board of directors will terminate.

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In the fourth quarter of 2008 the Company borrowed an aggregate of $212,801 from MapCash Holdings, LLC, an affiliate of the Company, to fund an upgrade of our computer systems and to cover legal and accounting expenses incurred in connection with our initial public offering.  This loan does not bear any interest and it is repayable on demand.

Operating activities provided cash of $185,476 for the six months ended June 30, 2009.  This was primarily due to a decrease in loans receivable of $381,189, an increase in accounts payable and accrued expenses of $89,985, and depreciation of $33,819.  For the same period last year, operating activities used cash of $(230,905), primarily as a result of increase in loans receivable.

Investing activities used cash of $(115,733) during the six months ended June 30, 2009 for the purchase of equipment.  Investing activities used $(11,418) in the comparable six months in the prior year for the purchase of equipment.

Financing activities provided cash of $126,983 during the six months ended June 30, 2009 due to stock subscription proceeds.  In the comparable six months in the prior year, financing activities provided cash of $375,113 primarily from the proceeds of a loan.

We believe that the credit available to the Company pursuant to the Master Loan Agreement is adequate to fund our lending operations for at least the next 12 months.

critical accounting policies and estimates

Our accounting policies are more fully described in our recently filed Registration Statement on Form S-1 and are essential to understanding Management’s Discussion and Analysis of Financial Condition and Results of Operations.  As discussed there, the preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes.  Since future events and their effects cannot be determined with absolute certainty, the determination of estimates requires the exercise of judgment.  Management has used the best information available to make the estimations necessary to value the related assets and liabilities based on historical experience and on various assumptions which are believed to be reasonable under the circumstances.  Actual results could differ from those estimates, and such differences may be material to the financial statements.  We reevaluate these variables as facts and circumstances change.  Historically, actual results have not differed significantly from our estimates.  The following is a summary of the more judgmental accounting estimates and principles involved in the preparation of our financial statements, including the identification of the variables most important in the estimation process:

Revenue Recognition.  Income on all loans is recognized using the interest method.  Income from service and other loan fees are deferred and the net fee is recognized as an adjustment to interest income ratably over the life of the loan on a constant yield basis, using the interest method as per SFAS 91.  For impaired loans accrual of interest is discontinued on a loan when management believes, after considering collection efforts and other factors that the borrower’s financial condition is such that the collection of interest is doubtful.  Loans are considered impaired when it is probable that we will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement.

Allowance for Loan Losses.  Our allowance for loan losses is determined based upon estimates that can and do change when the actual events occur, including historical losses as an indicator of future losses, fair market value of collateral, and various general or industry or geographic specific economic events.  The use of these estimates and values is inherently subjective and the actual losses could be greater or less than the estimates.

known trends and plans

On June 29, 2009 we opened a second branch office in the southern part of St. Lucia. 

 We are taking steps to close our agency relationship in Grenada and begin branch office operations there during the third quarter of this year.

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On May 19, 2009 we completed the incorporation of a new operating subsidiary, FastCash (Sint Maarten) N.V., a corporation duly incorporated under the laws of Sint Maarten, Netherlands Antilles.  We anticipate commencement of operation in the fourth quarter of this year.

We intend to commence operation in Guyana in the fourth quarter of this year. During the fourth quarter of this year, we also plan to incorporate subsidiaries in St. Kitts and Nevis, Trinidad and Tobago, and Barbados.

We also intend to expand current operations over the next six months by opening new satellite branches in our current markets. 

Additionally we plan to begin offering outsourced debt management solutions during the next six months to companies in the Eastern Caribbean, and intend to establish a call center for this purpose in the fourth quarter of this year.

ITEM 4.     CONTROLS AND PROCEDURES

We maintain a system of disclosure controls and procedures that is designed to provide reasonable assurance that information, which is required to be disclosed by us in the reports that we file or submit under the Securities and Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and is accumulated and communicated to management in a timely manner.  Our Chief Executive Officer and Chief Financial Officer have evaluated this system of disclosure controls and procedures as of the end of the period covered by this quarterly report, and have concluded that the system is effective.  There have been no changes in our internal control over financial reporting during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 2.           UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On April 17, 2009, our Registration Statement on Form S-1, File No. 333-153726, with respect to 500,000 shares of our Common Stock, par value $0.001 per share, was declared effective by the SEC.  As of June 30, 2009 we had not sold any of the securities registered for sale.

ITEM 6.           EXHIBITS

Exhibit No.
3.1	Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Registrant’s Registration Statement on Form S-1 filed September 29, 2008, Registration No. 333-153726)
3.2	By-Laws (incorporated by reference to Exhibit 3.2 to the Registrant’s Registration Statement on Form S-1 filed September 29, 2008, Registration No. 333-153726)
10.1	Master Loan Agreement, dated as of August 6, 2008, by and between MapCash Management, Ltd. and FastCash International, Limited, FastCash Dominica Limited, Financial Services Inc., FastCash (St. Lucia) Ltd., CashExpress Ltd., FastCash Limited and FastCash (Antigua) Limited, as amended (incorporated by reference to Exhibit 10.4 to Amendment the Registrant’s Registration Statement on Form S-1 filed September 29, 2008 and Exhibit 10.4.1 to Amendment No. 5 to the Registrant’s Registration Statement on Form S-1 filed April 7, 2009, Registration No. 333-153726)
10.2	$10 Million Line of Credit, dated August 6, 2008, from Ice Assets, LLC to MapCash Management Ltd. (incorporated by reference to Exhibit 10.5 to the Registrant’s Registration Statement on Form S-1 filed September 29, 2008, Registration No. 333-153726)
10.3	Letter Agreement, dated December 17, 2008, between Ice Assets, LLC and the Registrant (incorporated by reference to Exhibit 10.5.1 to Amendment No. 5 to the Registrant’s Registration Statement on Form S-1 filed April 7, 2009, Registration No. 333-153726)
10.4	Option Agreement, dated as of September 11, 2008, by and between the Registrant and Ice Assets, LLC (incorporated by reference to Exhibit 10.6 to the Registrant’s Registration Statement on Form S-1 filed September 29, 2008, Registration No. 333-153726)
10.5	Master Services Agreement, dated as of July 31, 2008, by and between FastCash International Limited and the Registrant (incorporated by reference to Exhibit 10.7 to the Registrant’s Registration Statement on Form S-1 filed September 29, 2008, Registration No. 333-153726)
10.7	Services Agreement, dated as of May 13, 2009, by and between FastCash International Limited and Navigant Consulting Services, Inc. (incorporated by reference to Exhibit 10.26 to the Registrant’s Current Report on Form 8-K filed May 14, 2009, Registration No. 333-153726)
31.1	Rule 15d-14(a) Certification of Chief Executive Officer
31.2	Rule 15d-14(a) Certification of Chief Financial Officer
32.1	Section 1350 Certifications

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		MAP FINANCIAL GROUP, INC.
		(Registrant)
Date: August 13, 2009	By:	/s/ Jonathan Chesky Malamud
		Jonathan Chesky Malamud
		President and Chief Executive Officer
	By:	/s/ Samuel Rosenberg
		Samuel Rosenberg
		Chief Financial Officer

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