U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[x] Quarterly Report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended December 31, 2006
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[ ] Transition Report under Section 13 or 15(d)of the Exchange Act For the
Transition Period from ________ to ___________
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Commission File Number: 000-51224
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My Quote Zone, Inc.
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(Name of small business issuer in its charter)
Nevada 56-2504276
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6130 Elton Avenue, Las Vegas, NV 89107
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(Address of principal executive officers, including Zip Code)
702-874-3131
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(Issuer's Telephone Number)
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Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act of 1934 during the past 12 months (or 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 shell company (as defined
in Rule 12b-2 of the Exchange Act) Yes [ ] No [X]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by a court.
Yes [X] No [ ] N/A
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:
As of February 14, 2007, the registrant's outstanding common stock consisted
of 36,000,000 shares, $0.001 Par Value. Authorized - 70,000,000 common
voting shares. No preferred shares issued, 5,000,000 authorized.
Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]
1
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.................................. 3
Independent Accountant's Review Report................ 4
Balance Sheet (unaudited)............................. 5
Statements of Operations (unaudited).................. 6
Statements of Cash Flows (unaudited).................. 7
Notes to Financial Statements......................... 8
Item 2. Management's Discussion and Analysis of Plan
of Operation......................................... 10
Item 3. Controls and Procedures................................. 16
PART II. OTHER INFORMATION
Item 1. Legal Proceedings..................................... 17
Item 2. Changes in Securities and Use of Proceeds............. 17
Item 3. Defaults upon Senior Securities....................... 17
Item 4. Submission of Matters to a Vote
of Security Holders.................................. 17
Item 5. Other Information..................................... 17
Item 6. Exhibits and Reports on Form 8-K...................... 17
Signatures...................................................... 18
2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS AND EXHIBITS
As prescribed by item 310 of Regulation S-B, the independent auditor has
reviewed these unaudited interim financial statements of the registrant
for the three months ended December 31, 2006. The financial statements
reflect all adjustments which are, in the opinion of management, necessary
to a fair statement of the results for the interim period presented. The
unaudited financial statements of registrant for the three months ended
December 31, 2006, follow.
3
MOORE & ASSOCIATES, CHARTERED
ACCOUNTANTS AND ADVISORS
------------------------
PCAOB REGISTERED
Report of Independent Registered Public Accounting Firm
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My Quote Zone
(A Development Stage Company)
6130 Elton Ave
Las Vegas, NV 89107
We have reviewed the accompanying balance sheet of My Quote Zone Inc. (A
Development Stage Company). as of December 31, 2006, and the related
statements of income, retained earnings, and cash flows for the three months
then ended, in accordance with the standards of the Public Company Accounting
Oversight Board (United States). All information included in these financial
statements is the representation of the management of My Quote Zone Inc. (A
Development Stage Company).
A review consists principally of inquiries of company personnel and
analytical procedures applied to financial data. It is substantially less in
scope than an audit in accordance with generally accepted auditing standards,
the objective of which is the expression of an opinion regarding the
financial statements taken as a whole. Accordingly, we do not express such an
opinion.
Based on our review, we are not aware of any material modifications that
should be made to the financial statements in order for them to be in
conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the
company will continue as a going concern. As discussed in the notes to the
financial statements, the Company has a limited source of revenue and limited
operations. This raises substantial doubt about the Company's ability to
continue as a going concern. The financial statements do not include any
adjustments that might result from this uncertainty.
/s/ Moore & Associates, Chartered
- ---------------------------------
Moore & Associates, Chartered
Las Vegas, Nevada
February 14, 2007
2675 S. JONES BLVD. SUITE 109, LAS VEGAS, NEVADA 89146
(702) 253-7511 Fax: (702)253-7501
4
My Quote Zone, Inc.
(Formerly Cornerstone Data Processing)
(a Development Stage Company)
Balance Sheets
December 31, 2005
December 31, 2006
(Unaudited)
Balance Sheets
December 31, December 31,
2006 2005
------------ -------------
(Unaudited) (Unaudited)
Assets
Current assets:
Cash $ 2,177 $ 1,367
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Total current assets 2,177 1,367
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$ 2,177 $ 1,367
=========== =============
Liabilities and Stockholder's Equity
Liabilities and Stockholders' Equity
Stockholders' equity:
Series A preferred stock, $0.001
par value, 2,000,000 shares authorized,
no shares issued or outstanding - -
Series B preferred stock, $0.001
par value, 2,000,000 shares authorized,
no shares issued or outstanding - -
Series C preferred stock, $0.001
par value, 1,000,000 shares authorized,
no shares issued or outstanding - -
Common stock, $0.001 par value, 70,000,000
shares authorized, 36,000,000, 36,000,000
shares issued and outstanding as of 12/31/2005
and 12/31/2006, respectively 36,000 36,000
Additional paid-in capital (21,000) (21,000)
Earnings (Deficit) accumulated during
development stage (12,823) (13,633)
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2,177 1,367
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$ 2,177 $ 1,367
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The accompanying notes are an integral part of these financial statements.
5
My Quote Zone, Inc.
(Formerly Cornerstone Data Processing)
(a Development Stage Company)
Statements of Operations
For the three months ended December 31, 2005 and December 31, 2006
From December 24, 2003 (Inception) to December 31, 2006
(Unaudited)
Statements of Operations
For the three months ended
December 31, December 24, 2003
-------------------------- (Inception) to
2006 2005 December 31, 2006
------------ ------------ ------------------
Revenue $ 62,713 $ 15,244 $ 227,200
------------ ------------ ------------------
Expenses:
Organizational and startup
costs - - 530
General and administrative
expenses 67,963 25,477 239,493
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Total expenses 67,963 25,477 240,023
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Net income (loss) $ (5,250) $ (10,233) $ (12,823)
============ ============ ==================
Weighted average number of
common shares outstanding -
basic and fully diluted 32,605,263 31,038,462
============ ============
Net (loss) per share - basic
& fully diluted $ (0.00) $ (0.00)
============ ============
The accompanying notes are an integral part of these financial statements.
6
My Quote Zone, Inc.
(Formerly Cornerstone Data Processing)
(a Development Stage Company)
Statements of Cash Flows
For the three months ended December 31, 2005 and December 31, 2006
From December 24, 2003 (Inception) to December 31, 2006
(Unaudited)
Statements of Cash Flows
For the three months ended
December 31, December 24, 2003
-------------------------- (Inception) to
2006 2005 December 31, 2006
------------ ------------ ------------------
Cash flows from operating activities:
Net income (loss) $ (5,250) $ (10,233) $ (12,823)
Stock issued for
organizational
costs 530
------------ ------------ ------------------
Net cash (used) provided
by operating
activities (5,250) (10,233) (12,293)
Cash flows from financing activities:
Issuances of
common stock - - 12,000
Proceeds from
subscriptions
receivable - - 2,470
------------ ------------ ------------------
Net cash provided
by financing
activities - - 14,470
------------ ------------ ------------------
Net increase (decrease)
in cash (5,250) (8,633) 2,177
Cash and equivalents-
beginning 7,427 10,000 -
------------ ------------ ------------------
Cash and equivalents-
ending 2,177 1,367 2,177
============ ============ ==================
Supplemental disclosures:
Interest paid $ - $ - $ -
============ ============ ==================
Income taxes paid $ - $ - $ -
============ ============ ==================
The accompanying notes are an integral part of these financial statements.
7
My Quote Zone, Inc.
(Formerly Cornerstone Data Processing)
(a Development Stage Company)
Notes
Note 1 - Basis of Presentation
The interim financial statements included herein, presented in accordance
with United States generally accepted accounting principles and stated
in US dollars, have been prepared by the Company, without audit,
pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are adequate to
make the information presented not misleading.
These statements reflect all adjustments, consisting of normal recurring
adjustments, which, in the opinion of management, are necessary for fair
presentation of the information contained therein. It is suggested that these
consolidated interim financial statements be read in conjunction with the
financial statements of the Company for the year ended September 30, 2006 and
notes thereto included in the Company's 10-KSB Annual report. The Company
follows the same accounting policies in the preparation of interim reports.
Results of operations for the interim periods are not indicative of annual
results.
Note 2 - Going concern
These consolidated financial statements have been prepared in accordance with
generally accepted accounting principles applicable to a going concern which
contemplates the realization of assets and the satisfaction of liabilities and
commitments in the normal course of business. As at December 31, 2006, the
Company has recognized $227,200 in revenues and has accumulated operating
losses of approximately $240,023 since inception. Without realization of
additional capital, it would be unlikely for the Company to continue as a going
concern. It is management's plan to continue executing the Company's business
plan, thereby supplying the needed cash flow.
These conditions raise substantial doubt about the Company's ability to
continue as a going concern. These financial statements do not include any
adjustments that might arise from this uncertainty.
8
My Quote Zone, Inc.
(Formerly Cornerstone Data Processing)
(a Development Stage Company)
Notes
Note 3 - Related party transactions
The Company does not lease or rent any property. Office services are provided
without charge by a director. Such costs are immaterial to the financial
statements and, accordingly, have not been reflected therein.
The officers and directors of the Company are involved in other business
activities and may, in the future, become involved in other business
opportunities. If a specific business opportunity becomes available, such
persons may face a conflict in selecting between the Company and their other
business interests. The Company has not formulated a policy for the resolution
of such conflicts.
9
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATIONS
My Quote Zone, Inc. ("MQZ" or "the Company") is a technology based Internet
media and marketing firm that specializes in online lead generation. The
Company develops comprehensive online advertising campaigns on behalf of its
clients. This is accomplished by creating and hosting customized web pages
and/or complete web properties to facilitate consumer transactions for specific
products and/or services. MQZ currently services the following industries:
o Communications
o Insurance
o Accounting
o Travel
o Auto
o Mortgage
B. Business of Issuer
1) Principal Products, Services and Principal Markets.
My Quote Zone, Inc. executes online lead generation programs for businesses
who want to prospect new customers. The Company provides end-to-end marketing
solutions to its clients, which include advertisers, direct marketers, lead
brokers, and agencies, seeking to increase sales and customer contact through
online marketing channels.
Website development and prospect acquisition is managed by the Company's
proprietary Lead Code software platform. This technology platform allows the
Company to acquire, database and deliver prospects to clients in real-time.
The platform also generates comprehensive detailed reporting on website
activity which allows the Company to analyze the effectiveness of different
campaigns, advertisements and promotions. This software tool helps management
determine which campaigns are performing at an acceptable level for the
Company.
My Quote Zone lead generation programs create sales prospects in various
industry categories. Some of these categories include - the wireless industry,
the insurance industry, the travel industry, the auto industry and the mortgage
industry. Leads are generated on company branded web pages. The Company also
markets its product and service offerings utilizing its direct-to-consumer
online financial portal. - www.MyQuoteZone.com
Online Marketing
- ----------------
MQZ owns and operates a variety of Internet websites. The Company generates
traffic to its websites both internally and from third party Internet
advertising. The Company's Web properties and marketing activities are
designed to generate real-time response based marketing results. These
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Web properties generate a variety of transactional results ranging from
(a) Web traffic, (b) inbound telemarketing calls, (c) outbound telemarketing
leads, (d) marketable profiled data lists of consumers, (e) targeted response
leads, and (f) completed applications for products and services.
The Company utilizes the following online marketing channels to promote its
hosted websites.
Email Marketing
- ---------------
Company websites are promoted through opt-in email marketing. The Company
currently markets to multiple consumer and business databases.
Search Marketing
- ----------------
The Company utilizes search engine marketing to direct consumers to its network
of websites: Funds are placed in an open account with each provider and are
spent on a Cost-Per-Click auction basis. Google, Yahoo, and Terra Lycos are
the primary 3 search engine providers used.
Affiliate Marketing
- -------------------
The Company has just completed an affiliate destination where online publishers
can promote MQZ exclusive offers and promotions. The new system allows
publishers to choose, deploy, and manage campaigns chosen. Publishers are also
provided with real-time commission tracking.
Syndication
- -----------
If management determines that a specific internal lead campaign is performing
at acceptable levels; the campaign is syndicated out and offered to other
affiliate marketing networks for deployment.
MQZ's Business
- --------------
The Company has achieved $62,713 in revenues for the three months ending
December 31, 2006 as compared to a net loss of $(5,250) for the same period in
2005. As of December 31, 2006, the Company has an accumulated deficit of
$(12,823) since its inception on December 24, 2003 through the period ended
December 31, 2006. There can be no assurances that the Company can achieve or
sustain profitability or that the Company's operating losses will not increase
in the future.
11
Management is currently exploring various business strategies to build its
core business. The analysis of business opportunities and evaluating
new business strategies will be undertaken by or under the supervision of the
Company's two Officers. In analyzing prospective businesses opportunities,
management will consider, to the extent applicable, the available technical,
financial and managerial resources of any given business venture. Management
will also consider the nature of present and expected competition; potential
advances in research and development or exploration; the potential for growth
and expansion; the likelihood of sustaining a profit within given time frames;
the perceived public recognition or acceptance of products, services, trade
or service marks; name identification; and other relevant factors.
Going Concern - The Company experienced operating losses, of $(12,823) since
its inception on December 24, 2003 through the period ended December 31, 2006.
The financial statements have been prepared assuming the Company will continue
to operate as a going concern, which contemplates the realization of assets
and the settlement of liabilities in the normal course of business. No
adjustment has been made to the recorded amount of assets or the recorded
amount or classification of liabilities which would be required if the Company
were unable to continue its operations. (See Financial Footnote 2)
Management believes My Quote Zone has enough funds to operate for the next
twelve (12) months without the need to raise additional capital to meet its
obligations in the normal course of business.
Results of Operations
- ---------------------
In its most recent three month operating period ended December 31, 2006, the
Company generated $62,713 in revenues as compared to revenues of $15,244 for
the same period last year. During the three months ended December 31, 2006,
the Company had a net loss of $(5,250), as compared to a net loss of $(10,233)
for the same period last year. The quarterly expenses of $67,963 represented
general and administrative expenses. Since the Company's inception on
December 24, 2003, the Company experienced total revenues of
$227,200, and a net loss of $(12,823).
Plan of Operation
- -----------------
MQZ is a provider of sales leads and databases to businesses seeking to
identify new prospects and grow their sales. MQZ actively compiles and
updates consumer and business databases. The Company has a wide spectrum
of potential customers. These include individual salespeople, small/medium
businesses, and Fortune 500 companies.
The Company has a limited operating history, upon which an evaluation of the
Company, its current business and its prospects can be based, each of which
must be considered in light of the risks, expenses and problems frequently
encountered by all companies in the early stages of development, and
particularly by such companies entering new areas of business.
12
The Company's prospects must be considered in light of the risks,
uncertainties, expenses and difficulties frequently encountered by companies
in their early stages of a new business plan, particularly companies involved
in the highly competitive Internet industry. Such risks include, without
limitation, the ability of the Company to manage its operations, including
the amount and timing of capital expenditures and other costs relating to the
expansion of the company's operations, direct and indirect competitors of the
Company, including those with greater financial, technical and marketing
resources, the inability of the Company to attract, retain and motivate
qualified personnel and general economic conditions.
The Company has not demonstrated profitability to date, and the Company
anticipates that it will continue to incur net losses for the foreseeable
future. The extent of these losses will depend, in part, on the amount of
expenditures the Company earmarks to execute its new business strategy. As
of December 31, 2006, the Company had an accumulated deficit of $(12,823)
Dollars) since its inception on December 24, 2003. Thus, the Company will
need to generate increased revenues to achieve profitability. To the extent
that increases in its operating expenses precede or are not subsequently
followed by commensurate increases in revenues, or that the Company is
unable to adjust operating expense levels accordingly, the Company's
business, results of operations and financial condition would be materially
and adversely affected. There can be no assurances that the Company can
achieve or sustain profitability or that the Company's operating losses will
not increase in the future.
Liquidity and Capital Resources
- -------------------------------
As of December 31, 2006, the Company's current assets exceeded its current
liabilities by $2,177.
The Company has not borrowed any money from affiliated or related entities.
On December 26, 2003 (inception), the Company, at that time named Cornerstone
Data Processing, Inc. issued 30,000,000 shares of its $0.001 par value common
stock to its sole shareholder for cash. On or about September 14, 2005, My
Quote Zone, a private company, purchased the original 30,000,000 founder's
shares, for $8,000 cash, to take control of the Cornerstone Data Processing,
business. The restricted shares were then apportioned on a pro-rata basis to
the owners of this private company.
On May 30, 2005, the Company issued 6,000,000 shares of its $0.001 par value
common stock pursuant to a regulation 504 Regulation D offering.
On September 30, 2006, the Company effected a 6-for-1 forward split of its
$0.001 par value common stock. All references to common stock above are
retroactively restated to reflect the forward split.
There have been no other issuances of preferred or common stock.
13
The Company has limited financial resources available, which has had an
adverse impact on the Company's liquidity, activities and operations. These
limitations have adversely affected the Company's ability to obtain certain
projects and pursue additional business. There is no assurance that the
proceeds of the Company will be able to raise sufficient funding to enhance
the Company's financial resources sufficiently to generate volume for the
Company.
Market Information
- ------------------
The common stock of the Company is not traded on the NASDAQ OTC Bulletin
Board or any other formal or national securities exchange. There is no
trading market for the Company's common stock at present and there has
been no trading market to date. The Company has applied for listing
on the OTC Bulletin Board, and is currently responding to comment letters
from the NASD.
(a) There is currently no Common Stock which is subject to outstanding
options or warrants to purchase, or securities convertible into, the
Company's common stock.
(b) There is currently no common stock of the Company which could be sold
under Rule 144 under the Securities Act of 1933 as amended or that the
registrant has agreed to register for sale by security holders.
(c) The Company did not repurchase any of its shares during the fiscal year
covered by this report.
(ii) Holders
- ------------
The approximate number of holders of record of common stock as of February 14,
2007 was approximately sixty-two (62).
Dividends
- ---------
Holders of common stock are entitled to receive such dividends as the board of
directors may from time to time declare out of funds legally available for the
payment of dividends. No dividends have been paid on our common stock, and we
do not anticipate paying any dividends on our common stock in the foreseeable
future.
14
Forward-Looking Statements
- --------------------------
This Form 10-QSB includes "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. All statements, other than
statements of historical facts, included or incorporated by reference in this
Form 10-QSB which address activities, events or developments which the Company
expects or anticipates will or may occur in the future, including such things
as future capital expenditures (including the amount and nature thereof),
finding suitable merger or acquisition candidates, expansion and growth of
the Company's business and operations, and other such matters are forward-
looking statements. These statements are based on certain assumptions and
analyses made by the Company in light of its experience and its perception
of historical trends, current conditions and expected future developments as
well as other factors it believes are appropriate in the circumstances.
However, whether actual results or developments will conform with the
Company's expectations and predictions is subject to a number of risks and
uncertainties, general economic market and business conditions; the business
opportunities (or lack thereof) that may be presented to and pursued by the
Company; changes in laws or regulation; and other factors, most of which
are beyond the control of the Company.
This Form10-QSB contains statements that constitute "forward-looking
statements." These forward-looking statements can be identified by the use of
predictive, future-tense or forward-looking terminology, such as "believes,"
"anticipates," "expects," "estimates," "plans," "may," "will," or similar
terms. These statements appear in a number of places in this Registration and
include statements regarding the intent, belief or current expectations of
the Company, its directors or its officers with respect to, among other
things: (i) trends affecting the Company's financial condition or results of
operations for its limited history; (ii) the Company's business and growth
strategies; and, (iii) the Company's financing plans. Investors are
cautioned that any such forward-looking statements are not guarantees of
future performance and involve significant risks and uncertainties, and that
actual results may differ materially from those projected in the forward-
looking statements as a result of various factors. Factors that could
adversely affect actual results and performance include, among others, the
Company's limited operating history, potential fluctuations in quarterly
operating results and expenses, government regulation, technological change
and competition.
Consequently, all of the forward-looking statements made in this Form 10-QSB
are qualified by these cautionary statements and there can be no assurance
that the actual results or developments anticipated by the Company will be
realized or, even if substantially realized, that they will have the expected
consequence to or effects on the Company or its business or operations. The
Company assumes no obligations to update any such forward-looking statements.
15
Item 3. Controls and Procedures
As of the end of the period covered by this report, the Company conducted an
evaluation, under the supervision and with the participation of the principal
executive officer and principal financial officer, of the Company's disclosure
controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the
Securities Exchange Act of 1934 (the "Exchange Act")). Based on this
evaluation, the principal executive officer and principal financial officer
concluded that the Company's disclosure controls and procedures are effective
to ensure that information required to be disclosed by the Company in reports
that it files or submits under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in Securities and
Exchange Commission rules and forms. There was no change in the Company's
internal control over financial reporting during the Company's most recently
completed fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the Company's internal control over financial reporting.
16
PART II OTHER INFORMATION
ITEM 1. Legal Proceedings
The Company is not a party to any legal proceedings.
ITEM 2. Changes in Securities and Use of Proceeds
None.
ITEM 3. Defaults upon Senior Securities
None.
ITEM 4. Submission of Matters to a Vote of Security Holders
None.
ITEM 5. Other Information
None.
ITEM 6. Exhibits and Reports on Form 8-K
a) Exhibits
Exhibit
Number Title of Document
----------------------------------------------------------------
31.1 Certifications of the President pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
31.2 Certifications of the Director pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
32.1 Certifications of President pursuant to 18 U.S.C. Section 1350
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
32.2 Certifications of Director pursuant to 18 U.S.C. Section 1350
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.
17
b) Reports on Form 8-K
No Current Reports on Form 8-K were filed during the Quarter ending
December 31, 2006.
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 hereunto duly authorized.
My Quote Zone, Inc.
-------------------
Registrant
By: /s/ Mark Theis
---------------------
Name: Mark Theis
Title: Director
Dated: February 14, 2007
-----------------
18