SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2009
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-53258
VANHOLT GROUP, LTD.
(Exact name of registrant as specified in its charter)
Delaware 20-5572611
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5027 Madison Road, Cincinnati, Ohio 45227
(Address of principal executive offices) (zip code)
513/297-0089
(Registrant's telephone number, including area code)
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 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
(do not check if a smaller reporting company)
Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).
Yes X No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding at
September 30, 2009
Common Stock, par value $0.0001 1,500,000
Documents incorporated by reference: None
PART I -- FINANCIAL INFORMATION
VANHOLT GROUP, LTD.
(A DEVELOPMENT STAGE COMPANY)
CONTENTS
PAGE 1 CONDENSED BALANCE SHEETS AS OF SEPTEMBER 30, 2009
(UNAUDITED) AND DECEMBER 31, 2008
PAGE 2 CONDENSED STATEMENTS OF OPERATIONS FOR THE THREE and
NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 AND FOR
THE PERIOD FROM SEPTEMBER 13, 2006 (INCEPTION) THROUGH
SEPTEMBER 30, 2009 (UNAUDITED)
PAGE 3 CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE PERIOD SEPTEMBER 13, 2006 (INCEPTION) THROUGH
SEPTEMBER 30, 2009 (UNAUDITED)
PAGE 4 CONDENSED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS
ENDED SEPTEMBER 30, 2009 AND 2008 AND FOR THE PERIOD FROM
SEPTEMBER 13, 2006 (INCEPTION) THROUGH SEPTEMBER 30, 2009
(UNAUDITED)
PAGES 5 - 7 NOTES TO FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2009
AND 2008
VANHOLT GROUP, LTD
(A DEVELOPMENT STAGE COMPANY)
CONDENSED BALANCE SHEETS
-----------------------
ASSETS
------
As of As of
Sept 30, December 31,
2009 2008
(Unaudited) ---------
----------
Cash $ 550 $ 500
------ --------
TOTAL ASSETS $ 550 $ 500
------------ ====== ========
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
----------------------------------------
LIABILITIES
ACCRUED LIABILITIES $ 3,333 $ 2,000
------- --------
TOTAL LIABILITIES $ 3,333 $ 2,000
------- --------
STOCKHOLDERS' EQUITY
Preferred Stock, $.0001 par value,
20,000,000 shares authorized,
none issued and outstanding - -
Common Stock, $.0001 par value,
100,000,000 shares authorized,
1,500,000 issued and outstanding 150 100
Additional paid-in capital 2,717 1,050
Deficit accumulated during
development stage (5,650) (2,650)
-------- -------
Total Stockholders' Deficiency (2,783) (1,500)
-------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' DEFICIENCY $ 550 $ 500
======== =======
See accompanying notes to condensed financial statements
1
VANHOLT GROUP, LTD.
(A DEVELOPMENT STAGE COMPANY)
CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
AND FOR THE PERIOD FROM SEPTEMBER 13, 2006 (INCEPTION)
THROUGH SEPTEMBER 30, 2009
(UNAUDITED)
For the For the For the For the For the Period
3-Months 3-Months 9-Months 9-Months from Sept. 13,
Ended Ended Ended Ended 2006 (Inception)
Sept 30, Sept 30, Sept 30, Sept 30, through Sept 30,
2009 2008 2009 2008 2009
Income $ - $ - $ - $ - $ -
------- ------- ------ ------- -------
Expenses
Organization
expense - - - - 650
Professional Fees 3,000 - 3,000 - 5,000
------- ------- ------- ------- -------
Total expenses 3,000 - 3,000 - 5,650
------- ------- ------ ------- -------
NET LOSS (3,000) - (3,000) - (5,650)
========= ======= ======= ======== ======== =======
Basic and diluted--
loss per share $ - $ - $ - $ -
======= ======= ======== ========
Weighted average
number of shares
outstanding;
basic and diluted 1,105,555 1,000,000 1,001,388 1,000,000
========= ========= ========= =========
See accompanying notes to condensed financial statements
2
VANHOLT GROUP, LTD.
(A DEVELOPMENT STAGE COMPANY)
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIENCY
FOR THE PERIOD FROM SEPTEMBER 13, 2006 (INCEPTION)
THROUGH September 30, 2009
(UNAUDITED)
--------------------
Deficit
Accumulated
Additional During
Common Stock Issued Paid-In Development
Shares Amount Capital Stage Total
----------- ------ ----- ------ -------- --------
BALANCE, SEPTEMBER 13,2006
(Date of Inception)
Common Stock Issuance 1,000,000 $ 100 $ 400 $ - $ 500
Fair value of expense
contributed 535 535
Net Loss (535) (535)
---------- ------- -------- -------- ---------
BALANCE AS OF DECEMBER 31, 2006 1,000,000 100 935 (535) 500
Fair Value of expense contributed 115 115
Net Loss (115) (115)
---------- ------- -------- -------- ---------
BALANCE AS OF DECEMBER 31, 2007 1,000,000 100 1,050 (650) 500
Net Loss (2,000) (2,000)
---------- ------- -------- -------- ---------
BALANCE AS OF DECEMBER 31, 2008 1,000,000 100 1,050 (2,650) (1,500)
Fair Value of expense contributed 1,667 1,667
Common stock redeemed at par (500,000) (50) - - (50)
Common stock issued at par 1,000,000 100 - - 100
Net Loss (3,000) (3,000)
---------- ------- -------- -------- ---------
BALANCE AS OF September 30, 2009 1,500,000 150 2,717 (5,650) (2,783)
========== ======= ======== ======== =========
See accompanying notes to condensed financial statements
3
VANHOLT GROUP, LTD.
(A DEVELOPMENT STAGE COMPANY)
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
------------------------
For the Period
From
For the Nine For the Nine September 13, 2006
Months Ended Months Ended (Inception) to
Sept 30, 2009 Sept 30, 2008 Sept 30, 2009
-------------- -------------- ----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (3,000) $ - $ (5,650)
Adjustment to reconcile net loss to
net cash used by operating activities:
Contributed expenses 1,667 - 2,317
Increase (decrease) in liabilities:
Accrued expesnes (1,333) - 3,333
-------------- -------------- --------------
Net Cash Used In Operating Activities - - -
-------------- -------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES - - -
-------------- -------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash Paid for common stock (50) - (50)
Proceeds from issuance of common stock 100 - 600
-------------- -------------- --------------
Net Cash Provided By Financing
Activities 50 - 550
-------------- -------------- --------------
INCREASE IN CASH AND CASH EQUIVALENTS - - 550
CASH AND CASH EQUIVALENTS - BEGINNING
OF PERIOD 500 500 -
-------------- -------------- --------------
CASH AND CASH EQUIVALENTS - END OF
PERIOD $ 550 $ 500 $ 550
============== ============== ==============
See accompanying notes to condensed financial statements
4
VANHOLT GROUP, LTD.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED FINANCIAL STATEMENTS
--------------------------------
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(A) Organization and Business Operations
Vanholt Group, Ltd. (a development stage company) ("the
Company") was incorporated in Delaware on September 13, 2006,
as Spinnet Acquisition Corporation to serve as a vehicle to effect
a merger, exchange of capital stock, asset acquisition or other
business combination with a domestic or foreign private business.
On September 30, 2009, effected a change of control and changed its
name to Vanholt Group, Ltd. As of September 30, 2009, the Company
had not yet commenced any formal business operations, and all activity
to date relates to the Company's formation. The Company's fiscal year
end is December 31.
(B) Change in Control
On September 30, 2009, the following events occurred which resulted
in a change in control of the Company: Of the 1,000,000 shares
previously outstanding, the Company redeemed 250,000 shares from
Tiber Creek Corporation and 250,000 shares from IRAA Fin. Serv.
The Company subsequently issued 400,000 shares to Jeffrey T.
Holtmeier and 600,000 shares to Mary Smyjunas. (See Note 2).
Following the transactions above, new officers and directors were
appointed and elected and the prior officer and director resigned as
outlined below:
On September 30, 2009, James M. Cassidy resigned as the Company's
president, secretary and sole director.
On September 30, 2009, Jeffrey T. Hholtmeier and J. Robet Smyjunas
were elected to the Board of Directors of the Company.
On September 30, 2009, J. Robert Smyjunas was appointed as Chief
Executive Officer, President and Secretary of the Company.
On September 30, 2009, Jeffrey T. Holtmeier was appointed as Vice
President and Treasurer of the Company.
(C) Use of Estimates
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
(D) Cash and Cash Equivalents
For purposes of the statement of cash flows, the Company considers all
highly liquid investments purchased with an original maturity of three
months or less to be cash equivalents.
(E) Taxes
Deferred tax assets and liabilities are recognized for the future tax
consequence attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective
tax bases. Deferred tax assets and liabilities are measured using enacted
tax rates expected to be applied to taxable income in the years in which
those temporary differences are expected to reverse. The effect on
deferred tax assets and liabilities of a change in tax rates is
recognized in the statement of income in the period that includes the
enactment date. A valuation allowance is provided for deferred tax assets
if it is more likely than not these items will either expire before the
Company is able to realize their benefits, or that future deductibility
is uncertain. There is no current or deferred income tax expense or
benefits due to the Company not having any material operations for
the nine months ended September 30, 2009 and 2008.
5
VANHOLT GROUP, LTD.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED FINANCIAL STATEMENTS
--------------------------------
(F) Earnings Per Share
Basic earnings per share is computed by dividing income available to
common shareholders by the weighted-average number of common shares
outstanding during the period. Diluted earnings per share is computed
similar to basic earnings per share except that the denominator is
increased to include the number of additional common shares that would
have been outstanding if the potential common shares had been issued
and if the additional common shares were dilutive. There were no
potentially dilutive securities for the nine months ended September 30,
2009 and 2008.
(G) Fair Value of Financial Instruments
Effective January 1, 2009, fair value measurements are determined by the
Company's adoption of authoritative guidance issued by the FASB with
respect to fair value measurements of (a) non-financial assets and
liabilities that are recognized or disclosed at fair value in the
Company's financial statements on a recurrring basis (at least
annually) and (b) all financial assets and liabilities. Fair value
is defined as the exit price, or the amount that would be received
to sell an asset or paid to transfer a liability in an orderly
transaction between market participants as of the measurement
date.
A fair value hierarchy was established for inputs used in measuring
fair value that maximizes the use of observable inputs and minimizes
the use of unobservable inputs by requiring that the most observable
inputs be used when available. Observable inputs are inputs market
participants would use in valuing the asset or liability developed
based on market data obtained from sources independent of the Company.
Unobservable inputs are inputs that reflect the Company's assumptions
about the factors market participants would use in valuing the asset
or liability developed based upon the best information available in
the circumstances. The hierarchy is broken down into three levels.
Level 1 inputs are quoted prices (unadjusted) in active markets for
identical assets or liabilities. Level 2 inputs include quoted prices
for similar assets or liabilities in active markets. Level 3 inputs
are unobservable inputs for the asset or liability. Categorization
within the valuation hierarchy is based upon the lowest level of input
that is significant to the fair value measurement.
The assets measured at fair value on a recurring basis subject to the
disclosure requirements as of September 30, 2009 are as follows:
Quote Prices in Significant
Carrying Active Markets Other Significant
Value as of for Identical Observable Unobservable
of Sept. 30, Assets Inputs Inputs
2009 (Level 1) (Level 2) (Level 3)
----------- ------------- ------------ -----------
Cash
and cash $550 $550
equivalents
(H) Recent Accounting Pronouncements
In June, 2009, the FASB issued authoritative guidance on accounting
standards codification and the hierarchy of generally accepted
accounting principles effective for interim and annual reporting periods
ending after September 15, 2009. The FASB accounting standards
codification ("ASC", "Codification") has become the source of
authoritative accounting principles recognized by the FASB to be
applied by nongovernmental entities in the preparation of financial
statements in accordance with GAAP. All existing accounting standard
documents are superseded by the Codification and any accounting
interpretive releases of the SEC issued under the authority of federal
securities laws will continue to be sources of authoritative GAAP for
SEC registrants. Beginning with the quarter ending September 30, 2009,
all references made by the Company to GAAP in its condensed
consolidated financial statements use the Codification numbering
system. The Codification does not change or alter existing
GAAP and, therefore, it does not have an impact of the Company's
financial position, results of operations and cash flows.
In June, 2009, the FASB made an update to consolidation of variable
interest entities. Among other things, the update replaces the
calculation for determining which entities, if any, have a
controlling financial interest in a variable interest entity (VIE)
from a quantitative based risks and rewards calculation, to a
qualitative approach that focuses on identifying which entities
have the power to direct the activities that most significantly
impact the VIE's economic performance and the obligation to absorb
losses of the VIE or the right to receive benefits from the VIE.
The update also requires ongoing assessments as to whether an entity
is the primary beneficiary of a VIE (previously, reconsideration
was only required upon the occurrence of specific events), modifies
the presentation of consolidated VIE assets and liabilities, and
requires additional disclosures about a company's involvement in
VIEs. This update will be effective for fiscal years beginning
after November 15, 2009. The Company does not currently believe
that the adoption of this update will have any effect on its
condensed financial statements.
NOTE 2 STOCKHOLDERS' EQUITY
(A) Preferred Stock
The Company is authorized to issue 20,000,000 shares of preferred
stock at $.0001 par value, with such designations, voting and other
rights and preferences as may be determined from time to time by the
Board of Directors.
(B) Common Stock
The Company is authorized to issue 100,000,000 shares of common stock
at $.0001 par value. The Company issued 500,000 shares of its common
stock to Tiber Creek Corporation, a Delaware corporation, and 500,000
shares of its common stock to IRAA Fin Serv, an unincorporated California
business entity, pursuant to Section 4(2) of the Securities Act of 1933
for an aggregate consideration of $500. Of these 1,000,000 shares, 500,000
were redeemed on September 30, 2009 and an additional 1,000,000 shares
were issued as 400,000 shares to Jeffrey T. Holtmeier and 600,000 shares
to Mary Smyjunas.
6
VANHOLT GROUP, LTD.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED FINANCIAL STATEMENTS
--------------------------------
NOTE 3 RELATED PARTIES
Additional paid-in capital as of September 30, 2009 includes $2,317 of
fair value of organization and professional costs incurred by related
parties on behalf of the Company.
NOTE 4 SUBSEQUENT EVENT
In preparing these financial statements, the Company has evaluated
events and transactions for potential recognition or disclosure through
November 13, 2009, the date the financial statements were issued. No
subsequent events were identified that would have required a change to
the financial statements or disclosure in the notes to the financial
statements.
7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The Company was incorporated in Delaware on September 13, 2006,
as Spinnet Acquisition Corporation to serve as a vehicle to effect
a merger, exchange of capital stock, asset acquisition or other
business combination with a domestic or foreign private business.
On September 30, 2009, the Company effected a change of control and
changed its name to Vanholt Group, Ltd. As of September 30, 2009,
the Company had not yet commenced any formal business operations,
and all activity to date relates to the Company's formation.
The Company's directors are the sole owners of AsiaSun Group, Ltd.,
a Hong Kong corporation which holds a 49% stake in a real estate
development joint venture with Unis-Tonghe, Ltd., a subsidiary of
Unisplendour Corporation, a large IT service company in China, for
the development of the UnisTechnology Park, a planned large
datacenter located in Zhengzhou, Henan province, mainland China.
The Company has not entered into any agreements or contracts
with AsiaSun Group, Ltd. or any other entity, but the directors
anticipate that the Company will enter into an arrangement with
AsiaSun Group, Ltd. that will include the Company as a participant
in AsianSun Group's current joint venture and/or in future joint
ventures in China primarily in the real estate, energy and
technology fields. The Company anticipates that such participation
may take the form of acquiring AsiaSun Group as a subisidiary,
entering into a joint venture agreement or some other similar
corporate transaction.
If the Company becomes a participant in such joint venture,
the Company anticipates that it will effect a private offering
of its securities in order to raise initial funds for such
joint venture participation.
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk.
Information not required to be filed by Smaller reporting companies.
ITEM 4. Controls and Procedures.
Disclosures and Procedures
Pursuant to Rules adopted by the Securities and Exchange Commission,
the Company carried out an evaluation of the effectiveness of the design
and operation of its disclosure controls and procedures pursuant to
Exchange Act Rules. This evaluation was done as of the end of the
period covered by this report under the supervision and with the
participation of the Company's principal executive officer (who is
also the principal financial officer).
Based upon that evaluation, he believes that the Company's
disclosure controls and procedures are effective in gathering, analyzing
and disclosing information needed to ensure that the information
required to be disclosed by the Company in its periodic reports is
recorded, summarized and processed timely. The principal executive
officer is directly involved in the day-to-day operations of the Company.
This Quarterly Report does not include an attestation report of
the Company's registered public accounting firm regarding internal
control over financial reporting. Management's report was not subject
to attestation by the Company's registered public accounting firm
pursuant to temporary rules of the Securities and Exchange
Commission that permit the Company to provide only management's
report in this Quarterly Report.
Changes in Internal Controls
There was no change in the Company's internal control over
financial reporting that was identified in connection with such
evaluation that occurred during the period covered by this report
that has materially affected, or is reasonably likely to materially
affect, the Company's internal control over financial reporting.
PART II -- OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are no legal proceedings against the Company and the Company
is unaware of such proceedings contemplated against it.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Information previously reported on the Company's Form 8-K,
filed September 30, 2009.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5. OTHER INFORMATION
(a) Not applicable.
(b) Item 407(c)(3) of Regulation S-K:
During the quarter covered by this Report, there have not been
any material changes to the procedures by which security holders
may recommend nominees to the Board of Directors.
ITEM 6. EXHIBITS
(a) Exhibits
31 Certification of the Chief Executive Officer and Chief
Financial Officer pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002
32 Certification of the Chief Executive Officer and Chief
Financial Officer pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002
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.
VANHOLT GROUP, LTD.
By: /s/ J. Robert Smyjunas
President
By: /s/ Jeffrey T. Holtmeier
Chief Financial Officer
Dated: November 13, 2009
Pursuant to the Securities Exchange Act of 1934, this report has been
signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.
NAME OFFICE DATE
/s/ J. Robert Smyjunas Director November 12, 2009
/s/ Jeffrey T. Holtmeier Director November 13, 2009