China Foods Holdings Ltd. - Quarter Report: 2008 December (Form 10-Q)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
10-Q
þ
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the
quarterly period ended December 31,
2008
£ TRANSITION REPORT UNDER
SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the
transition period from __________ to __________
Commission
File Number 1-32522
Trafalgar Resources,
Inc.
(Exact
name of registrant as specified in its charter)
Utah
|
91-0974149
|
|
(State
or other jurisdiction of incorporation or organization)
|
(IRS
Employer Identification No.)
|
PO
Box 2017 Sandy, Utah
|
84091-2017
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(801)
748-1114
|
(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
past 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 þ 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 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 ¨
(Do not check if a smaller reporting
company) Smaller
reporting company þ
Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). Yes þ No
£
Indicate
the number of shares outstanding of each of the issuer’s classes of common
equity, as of the latest practicable date.
5,250,929 shares of no par
value common stock on February 11, 2009
1
Part
I - FINANCIAL INFORMATION
Item
1. Financial Statements
Trafalgar
Resources, Inc.
FINANCIAL
STATEMENTS
(UNAUDITED)
December
31, 2008
The
financial statements included herein 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. However, in the
opinion of management, all adjustments (which include only normal recurring
accruals) necessary to present fairly the financial position and results of
operations for the periods presented have been made. These financial
statements should be read in conjunction with the accompanying notes, and with
the historical financial information of the Company.
2
TRAFALGAR
RESOURCES, INC.
Balance
Sheets
December
31,
|
September
30,
|
|||||||||
2008
|
2008
|
|||||||||
(Unaudited)
|
||||||||||
ASSETS
|
||||||||||
CURRENT
ASSETS
|
||||||||||
Cash
|
$
|
1,795
|
$
|
5,022
|
||||||
TOTAL
CURRENT ASSETS
|
1,795
|
5,022
|
||||||||
TOTAL
ASSETS
|
$
|
1,795
|
$
|
5,022
|
||||||
LIABILITIES
AND STOCKHOLDERS' (DEFICIT)
|
||||||||||
CURRENT
LIABILITIES
|
||||||||||
Accounts
payable
|
$
|
3,100
|
$
|
600
|
||||||
Interest
payable
|
225
|
527
|
||||||||
Income
taxes payable
|
0
|
100
|
||||||||
TOTAL
CURRENT LIABILITIES
|
3,325
|
1,227
|
||||||||
CONTINGENT
LIABILITIES
|
||||||||||
Note
payable -- Related party (Note 2)
|
20,000
|
20,000
|
||||||||
TOTAL
LIABILITIES
|
23,325
|
21,227
|
||||||||
STOCKHOLDERS'
(DEFICIT)
|
||||||||||
Common
stock no par value, 100,000,000
|
||||||||||
shares
authorized, 5,250,929 shares issued and outstanding
|
137,413
|
137,413
|
||||||||
Retained
(deficit)
|
(103,925)
|
(103,925)
|
||||||||
(Deficit)
from re-entering development stage
|
(55,018)
|
(49,693)
|
||||||||
TOTAL
STOCKHOLDERS' (DEFICIT)
|
(21,530)
|
(16,205)
|
||||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
|
$
|
1,795
|
$
|
5,022
|
See Notes
to Financial Statements (Unaudited).
3
TRAFALGAR
RESOURCES, INC.
Statements
of Operations
Unaudited
Three
Months Ending December 31,
|
Period
from re-entering development stage to December 31,
|
|||||||||||
2008
|
2007
|
2008
|
||||||||||
Income
|
$
|
0
|
$
|
0
|
$
|
2
|
||||||
Cost
of Sales
|
0
|
0
|
0
|
|||||||||
GROSS
PROFIT
|
0
|
0
|
2
|
|||||||||
Expenses
|
||||||||||||
General
and Administrative
|
5,100
|
2,810
|
53,368
|
|||||||||
5,100
|
2,810
|
53,368
|
||||||||||
Other
Income and Expenses
|
||||||||||||
Interest
Expense
|
(225)
|
0
|
(1,202)
|
|||||||||
Other
Income
|
0
|
0
|
50
|
|||||||||
(225)
|
0
|
(1,152)
|
||||||||||
(LOSS)
BEFORE TAXES
|
(5,325)
|
(2,810)
|
(54,518)
|
|||||||||
PROVISION
FOR TAXES
|
0
|
0
|
500
|
|||||||||
NET
(LOSS)
|
$
|
(5,325)
|
$
|
(2,810)
|
$
|
(55,018)
|
||||||
(LOSS)
PER COMMON SHARE
|
||||||||||||
Basic
and fully diluted loss per weighted average common share
outstanding
|
$
|
(0.00)
|
$
|
(0.00)
|
||||||||
Weighted
average number of common shares outstanding
|
5,250,929
|
5,250,929
|
See Notes
to Financial Statements (Unaudited).
4
TRAFALGAR
RESOURCES, INC.
Statements
of Cash Flows
Unaudited
Three
Months Ending December 31,
|
Period
from re-entering development stage to December 31,
|
|||||||||||
2008
|
2007
|
2008
|
||||||||||
OPERATING
ACTIVITIES
|
||||||||||||
Net
(Loss)
|
$
|
(5,325)
|
$
|
(2,810)
|
$
|
(55,018)
|
||||||
Adjustments
to reconcile net (loss) to net cash used by operating
activities:
|
||||||||||||
Changes
in operating assets and liabilities:
|
||||||||||||
Accounts
payable
|
2,500
|
(53)
|
(2,471)
|
|||||||||
Interest
payable
|
(302)
|
113
|
527
|
|||||||||
Income
taxes payable
|
(100)
|
0
|
(1,243)
|
|||||||||
NET
CASH USED BY OPERATING ACTIVITIES
|
(3,227)
|
(2,750)
|
(58,205)
|
|||||||||
FINANCING
ACTIVITIES
|
||||||||||||
Loans-
Notes payable- Related party
|
0
|
0
|
20,000
|
|||||||||
Stock
Sold
|
0
|
0
|
40,000
|
|||||||||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
|
0
|
0
|
60,000
|
|||||||||
NET
INCREASE (DECREASE) IN CASH
|
(3,227)
|
(2,750)
|
1,795
|
|||||||||
CASH
AT BEGINNING OF PERIOD
|
5,022
|
6,414
|
0
|
|||||||||
CASH
AT END OF PERIOD
|
$
|
1,795
|
$
|
3,664
|
$
|
1,795
|
||||||
CASH
PAID FOR TAXES
|
$
|
100
|
$
|
0
|
$
|
1,804
|
||||||
CASH
PAID FOR INTEREST
|
$
|
302
|
$
|
0
|
$
|
1,142
|
See Notes
to Financial Statements (Unaudited).
5
TRAFALGAR
RESOURCES, INC.
Notes
to Financial Statements (Unaudited)
NOTE
1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Development
Stage Enterprise
Trafalgar
Resources, Inc. (the "Company") was incorporated under the laws of the State of
Utah on October 25, 1972. The Company is considered a development stage
enterprise, as defined in SFAS 7, because since October 1, 2003 it has not
commenced operations that have resulted in significant revenue and the Company's
efforts have been devoted primarily to activities related to raising capital and
attempting to acquire an operating entity.
Unaudited
Information
The
accompanying unaudited financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America
for interim financial information and with the instructions to Form 10-Q,
Article 8 of Regulation S-X of the United States Securities and Exchange
Commission. Accordingly, they do not include all of the information and footnote
disclosures normally included in annual financial statements prepared in
accordance with generally accepted accounting principles.
In the
opinion of management, all adjustments (consisting of normal recurring accruals)
considered necessary to present fairly the financial position and results of
operations for the periods presented have been made. These financial statements
for the three months ended December 31, 2008, should be read in conjunction with
the accompanying notes and with the historical financial information of the
Company, and are not necessarily indicative of the results that may be expected
for the year ending September 30, 2009.
Use
Of Estimates
These
financial statements are prepared in conformity with accounting principles
generally accepted in the United States of America and require that management
make estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities. The use of
estimates and assumptions may also affect the reported amounts of revenues and
expenses. Actual results could differ from those estimates or
assumptions.
Net
Loss Per Share Of Common Stock
The loss
per share of common stock is computed by dividing the net loss during the period
presented by the weighted average number of shares outstanding during that same
period.
Income
Taxes
The
Company has not had any income in prior periods, therefore, no income taxes were
paid. Management has determined that future taxable income may not be allowed to
offset prior losses and therefore has not established a deferred tax
asset.
Revenue
Recognition
The
Company has not had any realizable sources of revenue and consequently, has not
established a policy for the recognition of revenue.
New
Accounting Pronouncements
In
December 2007, the Financial Accounting Standards Board (“FASB”) issued FASB
Statements No.141 (revised 2007), “Business Combinations” (“FAS
141(R)”) and No. 160, “Noncontrolling Interests in
Consolidated Financial Statements” (“FAS 160”). These standards aim to
improve, simplify, and converge internationally the accounting for business
combinations and the reporting of noncontrolling interests in consolidated
financial statements. The provisions of FAS 141 (R) and FAS 160 are effective
for the fiscal year beginning June 1, 2009. We are currently evaluating the
provisions of FAS 141(R) and FAS 160.
NOTE
2: RELATED PARTY TRANSACTIONS
At
December 31, 2008, the Company owes $225 of interest and $20,000 to its
President. Note 1 bears interest of 4.5% per year. Interest of $450
per year is due on February 27, 2009. Interest and principal of
$10,450 are due on February 27, 2010. Note 2 bears interest of 4.5% per year.
Interest of $450 per year is due on February 28, 2009 and 2010. Interest and
principal of $10,450 are due February 28, 2011.
6
Item
2. Management’s Discussion and Analysis of Financial Condition and Results of
Operations
SPECIAL NOTE REGARDING
FORWARD-LOOKING STATEMENTS
This
periodic report contains certain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 with respect to the
financial condition, results of operations, business strategies, operating
efficiencies or synergies, competitive positions, growth opportunities for
existing products, plans and objectives of management. Statements in this
periodic report that are not historical facts are hereby identified as
forward-looking statements.
Critical Accounting Policies
and Estimates
The
preparation of financial statements and related disclosures in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the amounts
reported in the unaudited Financial Statements and accompanying notes.
Management bases its estimates on historical experience and on various other
assumptions that are believed to be reasonable under the circumstances.
Actual results could differ from these estimates under different
assumptions or conditions. The Company believes there have
been no significant changes during the three month periods ended December 31,
2008 and 2007, to the items disclosed as significant accounting policies
since the Company’s last audited financial statements for the year ended
September 30, 2008.
The
Company’s accounting policies are more fully described in Note 1 of the
consolidated financial statements. As discussed in Note 1, the
preparation of financial statements and related disclosures in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions about the future events
that affect the amounts reported in the consolidated financial statements and
the accompanying notes. Management bases its estimates on historical experience
and on various other assumptions that are believed to be reasonable under the
circumstances. Actual differences could differ from these estimates
under different assumptions or conditions. The Company believes that
the following addresses the Company’s most critical accounting
policies.
We
recognize revenue in accordance with Securities and Exchange Commission Staff
Accounting Bulletin No. 104, “Revenue Recognition” (“SAB 104”). Under
SAB 104, revenue is recognized at the point of passage to the customer of title
and risk of loss, when there is persuasive evidence of an arrangement, the sales
price is determinable, and collection of the resulting receivable is reasonably
assured. We recognize revenue as services are
provided. Revenues are reflected net of coupon
discounts.
We
account for income taxes in accordance with Statement of Financial Accounting
Standards No. 109, “Accounting for Income Taxes” (“SFAS No.
109). Under SFAS No. 109, deferred tax assets and liabilities are
measured using enacted tax rates in effect for the year in which the differences
are expected to reverse. Deferred tax assets will be reflected on the
balance sheet when it is determined that it is more likely than not that the
asset will be realized. A valuation allowance has currently been
recorded to reduce our deferred tax asset to $0.
Business of the
Company
The
Company was incorporated under the laws of the state of Utah on October 25,
1972, under the name of Electronic Agricultural Machinery Development
Corporation. In 1974, the Company changed its name to Zenith
Development Corporation. In 1980, the Company changed its name to
Alternative Energy Resources, Inc. In 2004, the Company changed its
name to Trafalgar Resources, Inc.
Initially,
the Company sought to develop and market inventions, including an asparagus
harvester, a hot water saving device and a gas alert
signal. Ultimately, none of the inventions were successful and they
were abandoned. The Company ceased to conduct any business and has
not conducted any business during the last three years.
Currently,
the Company is in the process of investigating potential business ventures
which, in the opinion of management, will provide a source of eventual profit to
the Company. Such involvement may take many forms, including the
acquisition of an existing business or the acquisition of assets to establish
subsidiary businesses. All risks inherent in new and inexperienced
enterprises are inherent in the Company’s business.
The
selection of a business opportunity in which to participate is complex and
risky. Additionally, as the Company has only limited resources, it may be
difficult to find good opportunities. There can be no assurance that
the Company will be able to identify and acquire any business opportunity which
will ultimately prove to be beneficial to the Company and its shareholders. The
Company will select any potential business opportunity based on management's
business judgment.
7
The
activities of the Company are subject to several significant risks which arise
primarily as a result of the fact that the Company has no specific business and
may acquire or participate in a business opportunity based on the decision of
management which potentially could act without the consent, vote, or approval of
the Company’s shareholders. The risks faced by the Company are
further increased as a result of its lack of resources and its inability to
provide a prospective business opportunity with significant
capital.
Discussion and Analysis of
Financial Condition and Results of Operations
The
Company is in the process of looking for potential business
ventures. As the Company possesses limited funds, the Company will be
extremely limited in its attempts to locate potential business situations for
investigation. The Company intends to commence, on a limited basis,
the process of investigating possible merger and acquisition candidates, and
believes that the Company’s status as a publicly-held corporation will enhance
its ability to locate such potential business ventures. No assurance
can be given as to when the Company may locate suitable business opportunities
and such opportunities may be difficult to locate; however, the Company intends
to actively search for potential business ventures for the foreseeable future.
The Company’s management does not expect to remain involved as management of any
acquired business.
Management
anticipates that due to its lack of funds, and the limited amount of its
resources, the Company may be restricted to participation in only one potential
business venture. This lack of diversification should be considered a
substantial risk because it will not permit the Company to offset potential
losses from one venture against gains from another.
Business
opportunities, if any arise, are expected to become available to the Company
principally from the personal contacts of its officers and
directors. While it is not expected that the Company will engage
professional firms specializing in business acquisitions or reorganizations,
such firms may be retained if funds become available in the future, and if
deemed advisable. Opportunities may thus become available from
professional advisors, securities broker-dealers, venture capitalists, members
of the financial community, and other sources of unsolicited
proposals. In certain circumstances, the Company may agree to pay a
finder’s fee or other form of compensation, including perhaps one-time cash
payments, payments based upon a percentage of revenues or sales volume, and/or
payments involving the issuance of securities, for services provided by persons
who submit a business opportunity in which the Company shall decide to
participate, although no contracts or arrangements of this nature presently
exist. The Company is unable to predict at this time the cost of
locating a suitable business opportunity.
The
analysis of business opportunities will be undertaken by or under the
supervision of the Company’s management, none of whom is a professional analyst
and none of whom have significant general business experience. Among
the factors which management will consider in analyzing potential business
opportunities are the available technical, financial and managerial resources;
working capital and financial requirements; the history of operation, if any;
future prospects; the nature of present and anticipated competition; potential
for further research, developments or exploration; growth and expansion
potential; the perceived public recognition or acceptance of products or
services; name identification, and other relevant factors.
It is not
possible at present to predict the exact manner in which the Company may
participate in a business opportunity. Specific business
opportunities will be reviewed and, based upon such review, the appropriate
legal structure or method of participation will be decided upon by
management. Such structures and methods may include, without
limitation, leases, purchase and sale agreements, licenses, joint ventures; and
may involve merger, consolidation or reorganization. The Company may
act directly or indirectly through an interest in a partnership, corporation or
reorganization. However, it is most likely that any acquisition of a
business venture the Company would make would be by conducting a reorganization
involving the issuance of the Company’s restricted securities. Such a
reorganization may involve a merger (or combination pursuant to state corporate
statutes, where one of the entities dissolves or is absorbed by the other), or
it may occur as a consolidation, where a new entity is formed and the Company
and such other entity combine assets in the new entity. A
reorganization may also occur, directly or indirectly, through subsidiaries, and
there is no assurance that the Company would be the surviving
entity. Any such reorganization could result in loss of control of a
majority of the shares. The Company’s present directors may be
required to resign in connection with a reorganization.
The
Company may choose to enter into a venture involving the acquisition of or
merger with a company which does not need substantial additional capital but
desires to establish a public trading market of its securities. Such
a company may desire to consolidate its operations with the Company through a
merger, reorganization, asset acquisition, or other combination, in order to
avoid possible adverse consequences of undertaking its own public
offering. (Such consequences might include expense, time delays or
loss of voting control.) In the event of such a merger, the Company
may be required to issue significant additional shares, and it may be
anticipated that control over the Company’s affairs may be transferred to
others.
8
As part
of their investigation of acquisition possibilities, the Company’s management
may meet with executive officers of the business and its personnel; inspect its
facilities; obtain independent analysis or verification of the information
provided, and conduct other reasonable measures, to the extent permitted by the
Company’s limited resources and management’s limited
expertise. Generally, the Company intends to analyze and make a
determination based upon all available information without reliance upon any
single factor as controlling.
In all
likelihood, the Company’s management will be inexperienced in the areas in which
potential businesses will be investigated and in which the Company may make an
acquisition or investment. Thus, it may become necessary for the
Company to retain consultants or outside professional firms to assist management
in evaluating potential investments. The Company can give no
assurance that it will be able to find suitable consultants or
managers. The Company has no policy regarding the use of consultants,
however, if management, in its discretion, determines that it is in the best
interests of the Company, management may seek consultants to review potential
merger or acquisitions candidates. There are currently no contracts
or agreements between any consultant and any companies that are searching for
“shell” companies with which to merge.
It may be
anticipated that the investigation of specific business opportunities and the
negotiation, drafting and execution of relevant agreements, disclosure documents
and other instruments will require substantial management time and attention,
and substantial costs for accountants, attorneys and others. Should a
decision thereafter be made not to participate in a specific business
opportunity, it is likely that costs already expended would not be
recoverable. It is likely, in the event a transaction should
eventually fail to be consummated, for any reason, that the costs incurred by
the Company would not be recoverable. The Company’s officers and
directors are entitled to reimbursement for all expenses incurred in their
investigation of possible business ventures on behalf of the Company, and no
assurance can be given that if the Company has available funds they will not be
depleted in such expenses.
Based on
current economic and regulatory conditions, management believes that it is
possible, if not probable, for a company like the Company,
without many assets or many liabilities, to negotiate a merger or
acquisition with a viable private company. The opportunity arises
principally because of the high legal and accounting fees and the length of time
associated with the registration process of “going public.” However,
should any of these conditions change, it is very possible that there would be
little or no economic value for anyone taking over control of the
Company.
LIQUIDITY AND CAPITAL
RESOURCES
As of
December 31, 2008, the Company had $1,795 in cash and $23,325 in
liabilities. The Company has only incidental ongoing expenses
primarily associated with maintaining its corporate status and maintaining the
Company’s reporting obligations to the Securities and Exchange
Commission. Current management has indicated a willingness to help
support the Company’s ongoing expenses through the purchase of securities of the
Company or loans to the Company. Existing liabilities are related to
loans by management to help fund ongoing expenses.
For the
three months ended December 31, 2008, the Company had $5,100 in expenses related
to maintaining its corporate status, paying accounting and legal
fees. Management anticipates only nominal continuing expenses related
to investigating business opportunities and legal and accounting cost. For the
three months ended December 31, 2008, the Company had a net loss of $5,325
compared to a loss of $2,810 for the three months ended December 31,
2007.
Since
inception, the Company has not generated significant revenue, and it is unlikely
that any revenue will be generated until the Company locates a business
opportunity with which to acquire or merge. Management of the Company
will be investigating various business opportunities. These efforts
may cost the Company not only out of pocket expenses for its management but also
expenses associated with legal and accounting costs. There can be no
guarantee that the Company will receive any benefits from the efforts of
management to locate business opportunities.
Management
does not anticipate employing any employees in the future until a merger or
acquisition can be accomplished. Management will continue to rely on
outside consultants to assist in its corporate filing requirements.
RESULTS OF
OPERATIONS
The
Company has not had any significant revenue since reentering the development
stage. The Company continues to suffer a small loss related to
maintaining its corporate status and reporting obligations. For the
three months ended December 31, 2008, the Company had a net loss of
$5,325. The Company does not anticipate any revenue until it
locates a new business opportunity.
9
Off-balance sheet
arrangements
The
Company does not have any off-balance sheet arrangements and it is not
anticipated that the Company will enter into any off-balance sheet
arrangements.
Forward-looking
Statements
The
Private Securities Litigation Reform Act of 1995 (the “Act”) provides a safe
harbor for forward-looking statements made by or on behalf of our Company. Our
Company and our representatives may from time to time make written or oral
statements that are “forward-looking,” including statements contained in this
Annual Report and other filings with the Securities and Exchange Commission and
in reports to our Company’s stockholders. Management believes that all
statements that express expectations and projections with respect to future
matters, as well as from developments beyond our Company’s control including
changes in global economic conditions are forward-looking statements within the
meaning of the Act. These statements are made on the basis of management’s views
and assumptions, as of the time the statements are made, regarding future events
and business performance. There can be no assurance, however, that management’s
expectations will necessarily come to pass. Factors that may affect forward-
looking statements include a wide range of factors that could materially affect
future developments and performance, including the following:
Changes
in Company-wide strategies, which may result in changes in the types or mix of
businesses in which our Company is involved or chooses to invest; changes in
U.S., global or regional economic conditions, changes in U.S. and global
financial and equity markets, including significant interest rate fluctuations,
which may impede our Company’s access to, or increase the cost of, external
financing for our operations and investments; increased competitive pressures,
both domestically and internationally, legal and regulatory developments, such
as regulatory actions affecting environmental activities, the imposition by
foreign countries of trade restrictions and changes in international tax laws or
currency controls; adverse weather conditions or natural disasters, such as
hurricanes and earthquakes, labor disputes, which may lead to increased costs or
disruption of operations.
This list
of factors that may affect future performance and the accuracy of
forward-looking statements is illustrative, but by no means exhaustive.
Accordingly, all forward-looking statements should be evaluated with the
understanding of their inherent uncertainty.
Item
3. Quantitative and Qualitative Disclosures About Market
Risk.
NA-Smaller
Reporting Company
Item
4T. Controls and Procedures.
Evaluation
of Disclosure Controls and Procedures
Our
management evaluated the effectiveness of our disclosure controls and procedures
as of the end of the period covered by this report. Based on that evaluation,
our President and CFO concluded that our disclosure controls and procedures as
of the end of the period covered by this report were effective such that the
information required to be disclosed by us in reports filed under the Exchange
Act is (i) recorded, processed, summarized and reported within the time
periods specified in the SEC’s rules and forms and (ii) accumulated and
communicated to our management as appropriate to allow timely decisions
regarding disclosure. A controls system cannot provide absolute assurance,
however, that the objectives of the controls system are met, and no evaluation
of controls can provide absolute assurance that all control issues and instances
of fraud, if any, within a company have been detected.
Management’s
Report on Internal Control over Financial Reporting
Our
management is responsible for establishing and maintaining adequate internal
control over financial reporting (as defined in Rule 13a-15(f) under the
Exchange Act). Our internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes of
accounting principles generally accepted in the United
States.
Because
of its inherent limitations, internal control over financial reporting may not
prevent or detect misstatements. Therefore, even those systems determined to be
effective can provide only reasonable assurance of achieving their control
objectives.
10
Our
management evaluated the effectiveness of our internal control over financial
reporting as of December 31, 2008. Based on this evaluation, our
management concluded that, as of December 31, 2008, our internal control over
financial reporting was effective. However, with the limitations on
the ability to provide segregation of duties, our management is actively seeking
to add additional management personnel to provide segregation of
duties.
Changes
in internal control over financial reporting
There
have been no changes in internal control over financial reporting.
PART
II - OTHER INFORMATION
ITEM
1. Legal Proceedings
None
ITEM
2. Unregistered Sales of Equity Securities and Use of
Proceeds
Recent Sales of Unregistered
Securities
We have
not sold for cash any restricted securities during the three months ended
December 31, 2008.
Use
of Proceeds of Registered Securities
None; not
applicable.
Purchases
of Equity Securities by Us and Affiliated Purchasers
During
the three months ended December 31, 2008, we have not purchased any equity
securities nor have any officers or directors of the Company.
ITEM
3. Defaults Upon Senior Securities
We are
not aware of any defaults upon senior securities.
ITEM
4. Submission of Matters to a Vote of Security Holders
No
matters were submitted to a vote of security holders during the quarter ended
December 31, 2008.
ITEM
5. Other Information.
None
ITEM
6. Exhibits
(a)
|
Exhibits.
|
||||||
Item
4
|
Exhibit
No.
|
Instruments
Defining the Rights of Security Holders
|
Location
|
||||
4.01
|
4
|
Specimen
Stock Certificate
|
Incorporated
by reference *
|
||||
10.01
|
10
|
Promissory
Note - Dated February 27, 2007
|
This
Filing
|
||||
10.02
|
10
|
Promissory
Note - Dated February 29, 2008
|
This
Filing
|
||||
31.01
|
31
|
CEO
Certification Pursuant to 18 USC Section 1350, as adopted pursuant to
Section 302 of Sarbanes--Oxley Act of 2002
|
This
Filing
|
||||
31.02
|
31
|
CFO
Certification Pursuant to 18 USC Section 1350, as adopted pursuant to
Section 302 of Sarbanes--Oxley Act of 2002
|
This
Filing
|
||||
32.01
|
32
|
CEO
Certification Pursuant to Section 906
|
This
Filing
|
||||
32.02
|
32
|
CFO
Certification Pursuant to Section 906
|
This
Filing
|
||||
* Incorporated
by reference from the Company’s registration statement on Form 10-SB filed
with the Commission, SEC file no. 0
23502.
|
11
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.
Trafalgar
Resources, Inc.
|
||||
[Registrant]
|
||||
Dated:
|
February
17, 2009
|
By:
|
/s/ Anthony Brandon Escobar | |
Anthony
Brandon Escobar, President (Principal Executive
Officer)
|
||||
February
17, 2009
|
By
|
/s/ Anthony Coletti | ||
Anthony
Coletti, Principal Accounting
Officer
|
12