0001144204-13-028485.txt : 20130514 0001144204-13-028485.hdr.sgml : 20130514 20130514100815 ACCESSION NUMBER: 0001144204-13-028485 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 13 CONFORMED PERIOD OF REPORT: 20130331 FILED AS OF DATE: 20130514 DATE AS OF CHANGE: 20130514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: 24HOLDINGS INC CENTRAL INDEX KEY: 0001025315 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 330726608 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-22281 FILM NUMBER: 13839670 BUSINESS ADDRESS: STREET 1: CYBERIA HOUSE STREET 2: CHURCH STREET CITY: BASINGSTOKE RG217QN STATE: X0 ZIP: 00000 BUSINESS PHONE: 011441256867800 MAIL ADDRESS: STREET 1: CYBERIA HOUSE STREET 2: CHURCH STREET CITY: BASINGSTOKE RG217QN STATE: X0 ZIP: 00000 FORMER COMPANY: FORMER CONFORMED NAME: SCOOP INC/DE DATE OF NAME CHANGE: 19970325 10-Q 1 v344028_10q.htm FORM 10-Q

 

UNITED STATES

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: March 31, 2013

 

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

for the transition period from _________ to __________

 

Commission file number: 000-22281

 

24Holdings Inc.

(Exact name of registrant as specified in its charter)

 

Delaware 33-0726608
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)

 

133 Summit Avenue Suite 22

Summit, NJ 07901

(Address of principal executive offices)

 

973-635-4047

(Issuer's telephone number)

 

(Former name, former address and former fiscal year,

if changed since 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 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. (Check one):

Large Accelerated filer ¨   Accelerated filer  ¨
Non-accelerated filer  ¨   Smaller reporting company x
     

Indicate by check mark whether the issuer 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: There were a total of 2,071,644 shares of the issuer’s common stock, par value $.001 per share, outstanding as of May 14, 2013.

 

 
 

 

24HOLDINGS INC.

Quarterly Report on Form 10-Q

For the Period Ended March 31, 2013

 

TABLE OF CONTENTS

 

  Page
   
PART I. FINANCIAL INFORMATION  
   
ITEM 1. FINANCIAL STATEMENTS  
   
Condensed Balance Sheets as of March 31, 2013 (unaudited) and December 31, 2012 3
   
Condensed Statements of Operations for the Three Months Ended March 31, 2013 and 2012 (unaudited) 4
   
Condensed Statements of Cash Flows for the Three Months Ended March 31, 2013 and 2012 (unaudited) 5
   
NOTES TO CONDENSED FINANCIAL STATEMENTS (unaudited) 6
   
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION 10
   
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 12
   
ITEM 4. CONTROLS AND PROCEDURES 12
   
PART II.  OTHER INFORMATION  
   
ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. 12
   
ITEM 5.  OTHER INFORMATION 13
   
ITEM 6.  EXHIBITS 13
   
SIGNATURES 14

 

FORWARD-LOOKING STATEMENTS

 

Certain statements made in this Quarterly Report on Form 10-Q are “forward-looking statements” regarding the plans and objectives of management for future operations and market trends and expectations. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. Our plans and objectives are based, in part, on assumptions involving the continued expansion of our business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that our assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements included in this report will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. The terms “we”, “our”, “us”, or any derivative thereof, as used herein refer to 24Holdings Inc., a Delaware corporation, and its predecessors.

  

2
 

 

PART I. – FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS:

 

24HOLDINGS INC.
CONDENSED BALANCE SHEETS

 

   March 31, 2013   December 31, 
   (unaudited)   2012 
ASSETS          
Current Assets          
Cash and cash equivalents  $5,950   $7,863 
TOTAL CURRENT ASSETS   5,950    7,863 
TOTAL ASSETS  $5,950   $7,863 
           
LIABILITIES AND STOCKHOLDERS' EQUITY(DEFICIT)          
           
Current Liabilities          
Accrued expenses  $38,140   $33,303 
TOTAL CURRENT LIABILITIES   38,140    33,303 
TOTAL LIABILITIES   38,140    33,303 
           
STOCKHOLDERS' EQUITY (DEFICIT):          
Preferred stock; $.001 par value, 5,000,000 shares authorized, none issued and outstanding   0    0 
Common stock, $.001 par value; 100,000,000 shares authorized, 1,244,902 shares issued and outstanding   1,245    1,245 
Additional Paid-in Capital   10,833,384    10,833,384 
Accumulated Deficit   (10,866,819)   (10,860,069)
Total stockholders' equity (deficit)   (32,190)   (25,440)
           
TOTAL LIABILITIES AND  STOCKHOLDERS' EQUITY (DEFICIT)  $5,950   $7,863 

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

 

3
 

 

24HOLDINGS INC.
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)

 

   Three Months Ended 
   March 31, 
   2013   2012 
Revenues  $-   $- 
           
Expenses          
General and administrative   6,750    7,279 
Total operating expenses   6,750    7,279 
Net Loss  $(6,750)  $(7,279)
           
Weighted average number of common shares outstanding   1,244,902    1,244,902 
           
Net loss per share - basic and fully diluted  $(0.01)  $(0.01)

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

  

4
 

 

24HOLDINGS INC.

CONDENSED STATEMENTS OF CASH FLOWS

(unaudited)

 

   Three Months Ended 
   March 31, 
   2013   2012 
         
CASH FLOWS FROM OPERATING ACTIVITIES          
Net loss  $(6,750)  $(7,279)
Changes in operating assets and liabilities increase (decrease) in accrued expenses   4,837    (1,949)
NET CASH USED IN OPERATING ACTIVITIES   (1,913)   (9,228)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Contributed capital   0    27,500 
NET CASH PROVIDED BY FINANCING ACTIVITIES   0    27,500 
           
NET CHANGE IN CASH AND CASH EQUIVALENTS   (1,913)   18,272 
           
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD   7,863    9,725 
CASH AND CASH EQUIVALENTS AT END OF PERIOD  $5,950   $27,997 
           
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION          
           
Interest paid  $-   $- 
Income taxes paid  $-   $- 

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

 

5
 

 

24HOLDINGS INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

March 31, 2013

(unaudited)

 

NOTE 1 - DESCRIPTION OF COMPANY:

 

We are a Delaware corporation formerly known as Scoop, Inc. In April 2001, Scoop, Inc. amended its Certificate of Incorporation to change its name to 24Holdings Inc. (“we”, “our”, “us” or “24Holdings”). Prior to September 30, 2005, 24Holdings was a holding company that conducted its business operations through its wholly owned subsidiary 24STORE (Europe) Limited, a company incorporated under the laws of England formerly known as 24STORE.com Limited ("24STORE"). 24STORE commenced business operations in 1996 and focused on the sale of media products and business information services. Commencing in July 1998, we underwent voluntary reorganization under Chapter 11 of the United States Bankruptcy Code. In accordance with the Plan of Reorganization approved by the Bankruptcy Court in December 1999, InfiniCom, AB (now known as Avalon Innovation AB), a Swedish registered company (“Infinicom”), acquired 91% of our outstanding stock in exchange for 100% of the stock of 24STORE. Subsequent to Infinicom’s acquisition in 1999 and until September 30, 2005, the business operations of 24STORE, which represented all of our operations, were devoted to supplying business customers with computer and electronics products.

 

On October 23, 2006 (the “Effective Date”), we implemented a 1 for 125 reverse stock split (the “Reverse Split”) of our common stock par value $.001 per share (the “Common Stock”). Pursuant to the Reverse Split, each 125 shares of Common Stock issued and outstanding as of the Effective Date was converted into one (1) share of Common Stock. The Reverse Split also reduced the number of shares of Common Stock into which each share of Series A Convertible Preferred Stock, par value $.001 per share (the “Preferred Stock”) could be converted from 100 shares to 0.8 shares. All per share data herein has been retroactively restated to reflect the Reverse Split.

 

The interim financial information as of March 31, 2013 and for the three month periods ended March 31, 2013 and 2012 have been prepared without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). 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 we believe that the disclosures made are adequate to provide for fair presentation. These financial statements should be read in conjunction with the financial statements and the notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2012, previously filed with the SEC.

 

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of our financial position as of March 31, 2013, results of operations for the three months ended March 31, 2013 and 2012, and cash flows for the three months ended March 31, 2013 and 2012, have been made. The results of operations for the three months ended March 31, 2013 are not necessarily indicative of the operating results that may be expected for the full fiscal year or any future periods.

 

CHANGE OF OWNERSHIP TRANSACTIONS

 

On May 26, 2005, we entered into a series of agreements with Infinicom in connection with our sale of all of the outstanding stock of 24STORE (the “24STORE Sale”) and separately, the assignment of all rights and title to certain trademarks and domain names (the “IP Assets”) that we held (the “IP Assignment”). Pursuant to the terms of the 24STORE Sale, Infinicom paid us $100,000 for our 24STORE shares and pursuant to the IP Assignment, we paid for the IP Assets through a set-off against all outstanding and contingent liabilities we owed to Infinicom determined as of the closing date of the 24STORE Sale, which amounted to $603,830.

 

On May 26, 2005, we also entered into a Preferred Stock Purchase Agreement with Infinicom (the “Preferred Stock Agreement”) pursuant to which we sold to Infinicom 344,595 shares of our Preferred Stock in exchange for the discharge of $230,879 of outstanding debt owed to Infinicom. Each share of the Preferred Stock was convertible into 0.8 shares of our Common Stock at the holder’s option.

 

On May 26, 2005, Infinicom, 24Holdings, Moyo Partners, LLC (“Moyo”) and R&R Biotech Partners, LLC (“R&R”, and together with Moyo, the “Purchasers”) entered into a Common Stock Purchase Agreement (the “Infinicom Sale Agreement”) pursuant to which, Infinicom agreed to sell to the Purchasers an aggregate of 873,369 shares of Common Stock (which included shares issuable upon conversion of the Preferred Stock) which represented approximately 83.6% of the then issued and outstanding shares of Common Stock (the “Infinicom Sale”). In return, the Purchasers (i) paid to Infinicom $500,000 in cash, and (ii) agreed that upon the occurrence of one of several post-closing events, including a merger with one or more as yet unidentified private unaffiliated operating companies, to cause 24Holdings to issue to Infinicom shares of Common Stock representing 1% of the then issued and outstanding shares of Common Stock on a fully diluted basis (the “Infinicom Additional Shares”). The consummation of the Infinicom Sale was contingent on the contemporaneous closing of the 24STORE Sale and the IP Assignment.

 

6
 

 

24HOLDINGS INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

March 31, 2013

(unaudited)

NOTE 1 - DESCRIPTION OF COMPANY (continued):

 

On September 30, 2005, 24Holdings and Infinicom completed the transactions contemplated in the 24STORE Sale, the IP Assignment and the Preferred Stock Agreement as described above. Infinicom forgave the $603,830 of debt 24Holdings owed to them in consideration of the IP Assignment.

 

Effective September 30, 2005, Infinicom completed the sale to the Purchasers, under the Infinicom Sale Agreement, of 597,693 shares of Common Stock (which represented 77.7% of the 769,226 shares of Common Stock then issued and outstanding) and 344,595 shares of Preferred Stock, constituting 83.6% in the aggregate of the then issued and outstanding Common Stock (assuming the conversion of the Preferred Stock into 275,676 shares of Common Stock). As a result, the Purchasers acquired control of 24Holdings from Infinicom, with R&R beneficially owning 698,696 shares of Common Stock (assuming the conversion by R&R of 275,676 shares of Preferred Stock into 220,541 shares of Common Stock) constituting 66.9% of the then issued and outstanding shares of Common Stock, and Moyo in the aggregate beneficially owning 174,674 shares of Common Stock (assuming the conversion by Moyo of 68,919 shares of Preferred Stock into 55,135 shares of Common Stock) constituting 16.7% of the then issued and outstanding shares of Common Stock.

 

Effective September 30, 2005 Urban von Euler resigned as our president and a director but remained our chief executive officer. Also, effective September 30, 2005, Larsake Sandin resigned as a director and each of Arnold P. Kling and Kirk M. Warshaw were appointed as directors of 24Holdings. On November 21, 2005, effective with the filing of our Form 10-Q for the quarter ended September 30, 2005, Mr. von Euler resigned as chief executive officer and Mr. Kling was appointed president and treasurer and Mr. Warshaw was appointed chief financial officer and secretary. As of that same date, 24Holdings relocated its headquarters to Chatham, New Jersey and then later to Summit, New Jersey.

 

On November 25, 2005, the Infinicom Sale Agreement was amended to provide, among other criteria, that the fair market value of the Infinicom Additional Shares would be no less than $400,000 nor more than $600,000 at the time such shares are required to be issued to Infinicom (See Note 7 – Subsequent Events).

 

On February 1, 2006, a total of 250,000 shares of Preferred Stock were authorized for issuance to two individuals who provided services to us. On May 12, 2006, we issued 150,000 and 100,000 shares, respectively, of Preferred Stock to Arnold P. Kling and Kirk M. Warshaw for their services as our president and chief financial officer, respectively. Each share of Preferred Stock is immediately convertible, at the holder's option, into 0.8 shares of Common Stock. Mr. Kling's services were valued at $11,250 and Mr. Warshaw's services were valued at $7,500.

 

On November 29, 2006, the holders of all the issued and outstanding shares of Preferred Stock elected to convert all of their Preferred Stock into shares of Common Stock. As a result, the 594,595 shares of Preferred Stock outstanding were exchanged for 475,676 shares of Common Stock.

 

As of March 31, 2013, our authorized capital stock consists of 100,000,000 shares of Common Stock and 5,000,000 shares of Preferred Stock of which 1,244,902 shares of Common Stock, and no shares of Preferred Stock, were issued and outstanding (See Note 7 – Subsequent Events).. All shares of Common Stock currently outstanding are validly issued, fully paid and non-assessable.

 

THE COMPANY TODAY

 

Since September 30, 2005, our purpose has been to serve as a vehicle to acquire an operating business and is currently considered a "shell" or blank check company inasmuch as we are not generating revenues, do not own an operating business, and have no specific plan other than to engage in a merger or acquisition transaction with a yet-to-be identified company or business. We have no employees and no material assets.

 

7
 

 

24HOLDINGS INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

March 31, 2013

(unaudited)

 

NOTE 2 – BASIS OF PRESENTATION

 

The condensed financial statements have been prepared by us, without audit, pursuant to the rules and regulations of the SEC. 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. In the opinion of management, the accompanying condensed financial statements include all adjustments (consisting of normal, recurring adjustments) necessary to make our, results of operations and cash flows not misleading as of March 31, 2013. The results of operations for the three months ended March 31, 2013 are not necessarily indicative of the results of operations for the full year or any other interim period. These financial statements should be read in conjunction with the financial statements and the notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2012, previously filed with the SEC.

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

 

Fair Value of Financial Instruments - Pursuant to the accounting guidance, "Disclosures About Fair Value of Financial Instruments," we are required to estimate the fair value of all financial instruments included on our balance sheet as of March 31, 2013. We consider the carrying value of accrued expenses in the financial statements to approximate their face value.

 

Statements of Cash Flows - For purposes of the statements of cash flows we consider all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents.

 

NOTE 4 – STOCKHOLDERS’ EQUITY

 

On February 1, 2006, a total of 250,000 shares of Preferred Stock were authorized for issuance to two individuals who provided services to us. On May 12, 2006, we filed a Certificate of Amendment to the Certificate of Designation for the Preferred Stock with the Secretary of State of the State of Delaware, increasing the number of shares designated as Preferred Stock from 500,000 to 600,000 shares. As a result of this filing, we issued 150,000 and 100,000 shares of the Preferred Stock to Arnold Kling and Kirk Warshaw for their services as our president and chief financial officer, respectively. Each share of Preferred Stock is convertible, at the holder's option, into 100 shares of Common Stock. Mr. Kling's services were valued at $11,250 and Mr. Warshaw's services were valued at $7,500.

 

On October 23, 2006, we effected a reverse stock split of our Common Stock. Pursuant to this reverse stock split, each 125 shares of Common Stock issued and outstanding as of the date following the reverse stock split was converted into one (1) share of Common Stock. This reverse stock split reduced the number of shares of Common Stock into which each share of Preferred Stock could be converted from 100 shares to .8 shares. All per share data has been retroactively restated to reflect this reverse stock split.

 

On November 29, 2006, the holders of all the issued and outstanding shares of Preferred Stock elected to convert all of their Preferred Stock into shares of Common Stock. As a result, the 594,595 shares of Preferred Stock outstanding were exchanged for 475,676 shares of Common Stock.

 

As of March 31, 2013, our authorized capital stock consists of 100,000,000 shares of Common Stock and 5,000,000 shares of Preferred Stock, of which 1,244,902 shares of Common Stock, and no shares of Preferred Stock, are issued and outstanding. All shares of Common Stock currently outstanding are validly issued, fully paid and non-assessable.

 

During 2011, a stockholder contributed $25,500 to the Company. During 2012, the same stockholder contributed an additional $27,500 to the Company.

 

8
 

 

24HOLDINGS INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

March 31, 2013

(unaudited)

 

NOTE 5 – NEW ACCOUNTING PRONOUNCEMENTS

 

Management does not believe that any new accounting pronouncements not yet effective will have a material impact on the Company’s financial statements once adopted.

 

NOTE 6 – COMMITMENTS AND CONTIGENCIES

 

On January 29, 2009, the Company entered into an agreement with Kirk M. Warshaw, LLC (the “LLC”) for the use and occupancy, and administrative services, related to its principal offices. The agreement provides for quarterly payments from the Company to the LLC of $500. The effective date of the agreement was January 1, 2009.

 

NOTE 7 – SUBSEQUENT EVENTS

 

The Company has evaluated all subsequent events and has determined that there were no subsequent events to recognize or disclose in these financial statements other than the following:

 

On May 9, 2013, the Company entered into an amendment to the Infinicom Sale Agreement (the “Amendment”) pursuant to which Infinicom’s rights to the Infinicom Additional Shares was converted into 138,322 shares of Common Stock, which will be delivered to Infinicom within 30 days of the Amendment.

 

On May 9, 2013, the Company raised gross proceeds of $134,000 from the sale of 344,210 shares of Common Stock at a price of $0.1946488 per share to each of Hudson Bay Master Fund Ltd. (“Hudson”) and Iroquois Master Fund Ltd. (“Iroquois”). The sale to Hudson and Iroquois was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Act”) pursuant to Sections 4(a)(2) and 4(a)(5) of the Act. Prior to May 9, 2013, each of Hudson and Iroquois acquired 349,348 shares of Common Stock at a purchase price of $68,000, or $0.194648 per share, from the Chapter 7 Trustee of the Estates of Rodman & Renshaw, LLC (“Rodman”), Direct Markets, Inc., and Direct Markets Holdings, Corp. in Chapter 7 bankruptcy proceedings pending in the United States Bankruptcy Court for the Southern District of New York (Cases No. 13-10087, 13-10088 and 13-10089). These shares were all the shares of Common Stock beneficially owned by R&R, an affiliate of Rodman.

 

9
 

 

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

 

Plan of Operation

 

Since September 30, 2005 our purpose is to effect a business combination with an operating business which we believe has significant growth potential. We are currently considered to be a “shell” company in as much as we have no operations, revenues or employees. We have no definitive agreements or understandings with any prospective business combination candidates and there are no assurances that we will find a suitable business with which to combine. The implementation of our business objectives is wholly contingent upon a business combination and/or the successful sale of securities in 24Holdings. We intend to utilize the proceeds of any offering, any sales of equity securities or debt securities, bank and other borrowings or a combination of those sources to effect a business combination with a target business which we believe has significant growth potential. While we may, under certain circumstances, seek to effect business combinations with more than one target business, unless and until additional financing is obtained, we will not have sufficient proceeds remaining after an initial business combination to undertake additional business combinations.

 

A common reason for a target company to enter into a merger with a shell company is the desire to establish a public trading market for its shares. Such a company would hope to avoid the perceived adverse consequences of undertaking a public offering itself, such as the time delays and significant expenses incurred to comply with the various Federal and state securities law that regulate initial public offerings.

 

As a result of our limited resources, we expect to have sufficient proceeds to effect only a single business combination. Accordingly, the prospects for our success will be entirely dependent upon the future performance of a single business. Unlike certain entities that have the resources to consummate several business combinations or entities operating in multiple industries or multiple segments of a single industry, we will not have the resources to diversify our operations or benefit from the possible spreading of risks or offsetting of losses. A target business may be dependent upon the development or market acceptance of a single or limited number of products, processes or services, in which case there will be an even higher risk that the target business will not prove to be commercially viable.

 

Our officers are only required to devote a small portion of their time (less than 10%) to our affairs on a part-time or as-needed basis. We expect to use outside consultants, advisors, attorneys and accountants as necessary. We do not anticipate hiring any full-time employees so long as we are seeking and evaluating business opportunities.

 

We expect our present management to play no managerial role in 24Holdings following a business combination. Although we intend to scrutinize closely the management of a prospective target business in connection with our evaluation of a business combination with a target business, our assessment of management may be incorrect. We cannot assure you that we will find a suitable business with which to combine.

 

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2013 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2012

 

We currently do not have any business operations and did not have any revenues during the three month periods ended March 31, 2013 and 2012.

 

Total general and administrative expenses for the three month periods ended March 31, 2013 and 2012 were $6,750 and $7,279, respectively. These expenses are primarily constituted by professional and filing fees.

 

Liquidity and Capital Resources

 

At March 31, 2013, 24Holdings did not have any revenues from operations. Absent a merger or other combination with an operating company, 24Holdings does not expect to have any revenues from operations. No assurance can be given that such a merger or other combination will occur or that 24Holdings can engage in any public or private sales of its equity or debt securities to raise working capital. 24Holdings is dependent upon future loans or capital contributions from its present stockholders and/or management and there can be no assurances that its present stockholders or management will make any loans or capital contributions to 24Holdings. At March 31, 2013, 24Holdings had cash of $5,950 and negative working capital of $32,190.

 

24Holdings's present material commitments are professional and administrative fees and expenses associated with the preparation of its filings with the SEC and other regulatory requirements. In the event that 24Holdings engages in any merger or other combination with an operating company, it will have additional material professional commitments.

 

10
 

 

Subsequent Event

 

On May 9, 2013, we raised gross proceeds of $134,000 from the sale of 344,210 shares of our common stock (“Common Stock”) at a price of $0.1946488 per share to each of Hudson Bay Master Fund Ltd. (“Hudson”) and Iroquois Master Fund Ltd. (“Iroquois”). The sale to Hudson and Iroquois was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Act”) pursuant to Sections 4(a)(2) and 4(a)(5) of the Act. Prior to May 9, 2013, each of Hudson and Iroquois acquired 349,348 shares of Common Stock at a purchase price of $68,000, or $0.194648 per share, from the Chapter 7 Trustee of the Estates of Rodman & Renshaw, LLC (“Rodman”), Direct Markets, Inc., and Direct Markets Holdings, Corp. in Chapter 7 bankruptcy proceedings pending in the United States Bankruptcy Court for the Southern District of New York (Cases No. 13-10087, 13-10088 and 13-10089). These shares were all the shares of Common Stock beneficially owned by R&R Biotech Partners, LLC (“R&R”), an affiliate of Rodman.

 

Critical Accounting Policies

 

Our unaudited financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require management to make estimates and assumptions that affect the amounts reported in such financial statements and related notes. Actual results can and will differ from estimates. These differences could be material to the financial statements. We believe our application of accounting policies and the estimates required therein are reasonable. Outlined below are those policies considered particularly significant.

 

Use of Estimates

 

In preparing financial statements in accordance with GAAP, management makes certain estimates and assumptions, where applicable, that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. While actual results could differ from those estimates, management does not expect such variances, if any, to have a material effect on the financial statements.

 

Statements of Cash Flows

 

For purposes of the statements of cash flows we consider all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents.

 

Earnings (Loss) Per Share

 

Basic earnings (loss) per share has been computed on the basis of the weighted average number of common shares outstanding during each period presented according to the Financial Accounting Standards Board’s (FASB) guidance for "EARNINGS PER SHARE". Diluted earnings (loss) per share reflects the potential dilution that could occur if options or other contracts to issue shares of common stock were exercised or converted to common stock as long as the effect of their inclusion is not anti-dilutive. We currently have no options or contracts to issue shares of common stock outstanding.

 

Income Taxes

 

The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for operating loss and tax credit carry forwards and for the future tax consequences 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 apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized.

 

Financial Instruments

 

The estimated fair values of all reported assets and liabilities which represent financial instruments, none of which are held for trading purposes, approximate their carrying value because of the short term maturity of these instruments or the stated interest rates are indicative of market interest rates.

 

11
 

 

Equity Based Compensation

 

The accounting guidance for “Share Based Payments” requires the recognition of the fair value of employee stock options and similar awards and applies to all outstanding and vested stock-based awards. In computing the impact, the fair value of each option is estimated on the date of grant based on the Black-Scholes options-pricing model utilizing certain assumptions for a risk free interest rate; volatility; and expected remaining lives of the awards. The assumptions used in calculating the fair value of share-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and we use different assumptions, our stock-based compensation expense could be materially different in the future. In addition, we are required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. In estimating our forfeiture rate, we analyzed its historical forfeiture rate, the remaining lives of unvested options, and the amount of vested options as a percentage of total options outstanding. If our actual forfeiture rate is materially different from its estimate, or if we reevaluate the forfeiture rate in the future, the stock-based compensation expense could be significantly different from what we have recorded in the current period. The last equity based compensation issued by us was more than two years ago and such shares were fully vested upon issuance, hence an expense was recorded at that time.

 

New Accounting Pronouncements

 

All new accounting pronouncements issued but not yet effective have been reviewed and determined to be not applicable. As a result, the adoption of such new accounting pronouncements, when effective, is not expected to have a material impact on our financial position.

 

Off-Balance Sheet Arrangements

 

As of March 31, 2013, we have no off-balance sheet arrangements such as guarantees, retained or contingent interest in assets transferred, obligation under a derivative instrument and obligation arising out of or a variable interest in an unconsolidated entity.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

As a smaller reporting company, we are not required to provide the information required by this Item.

 

ITEM 4. CONTROLS AND PROCEDURES.

 

(a)   Evaluation of Disclosure Controls and Procedures

Our management, with the participation of both of our president and chief financial officer, carried out an evaluation of the effectiveness of our “disclosure controls and procedures” (as defined in the Securities Exchange Act of 1934 (the “Exchange Act”) Rules 13a-15(e) and 15-d-15(e)) as of the end of the period covered by this report (the “Evaluation Date”). Based upon that evaluation, both of our president and chief financial officer concluded that as of the Evaluation Date, our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act (i) is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and (ii) is accumulated and communicated to our management, including our president and our chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

 

(b)   Changes in Internal Control over Financial Reporting

There were no changes in our internal controls over financial reporting that occurred during the quarter covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

PART II. - OTHER INFORMATION

 

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

 

On May 9, 2013, we restructured the Common Stock Purchase Agreement, dated May 26, 2005, as amended to date (the “Purchase Agreement”), among InfiniCom, AB (now known as Avalon Innovation AB), a Swedish registered company (“Infinicom”) 24Holdings, Moyo Partners, LLC and R&R (the “Amendment”). Pursuant to the Amendment, Infinicom’s right to receive $400,000 to $600,000 in equity value of 24Holdings upon the occurrence of one of several post-closing events, including a merger with one or more as yet unidentified private unaffiliated operating companies (the “Infinicom Additional Shares”), was converted into 138,322 shares of Common Stock, which will be delivered to Infinicom within 30 days of the Amendment. The issuance to Infinicom was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Act”) pursuant to Section 4(a)(2) of the Act.

 

On May 9, 2013, we raised gross proceeds of $134,000 from the sale of 344,210 shares of Common Stock at a price of $0.1946488 per share to each of Hudson and Iroquois. The sale to Hudson and Iroquois was exempt from the registration requirements of the Act pursuant to Sections 4(a)(2) and 4(a)(5) of the Act. Prior to May 9, 2013, each of Hudson and Iroquois acquired 349,348 shares of Common Stock at a purchase price of $68,000, or $0.194648 per share, from the Chapter 7 Trustee of the Estates of Rodman, Direct Markets, Inc., and Direct Markets Holdings, Corp. in Chapter 7 bankruptcy proceedings pending in the United States Bankruptcy Court for the Southern District of New York (Cases No. 13-10087, 13-10088 and 13-10089). These shares were all the shares of Common Stock beneficially owned by R&R, an affiliate of Rodman.

 

12
 

 

 

ITEM 5. OTHER INFORMATION.

 

On May 9, 2013, pursuant to the Amendment, the Infinicom Additional Shares were converted into 138,322 shares of Common Stock. The issuance to Infinicom was exempt from the registration requirements of the Act pursuant to Section 4(a)(2) of the Act.

 

On May 9, 2013, we raised gross proceeds of $134,000 from the sale of 344,210 shares of Common Stock at a price of $0.1946488 per share to each of Hudson and Iroquois. The sale to Hudson and Iroquois was exempt from the registration requirements of the Act pursuant to Sections 4(a)(2) and 4(a)(5) of the Act. Prior to May 9, 2013, each of Hudson and Iroquois acquired 349,348 shares of Common Stock at a purchase price of $68,000, or $0.194648 per share, from the Chapter 7 Trustee of the Estates of Rodman, Direct Markets, Inc., and Direct Markets Holdings, Corp. in Chapter 7 bankruptcy proceedings pending in the United States Bankruptcy Court for the Southern District of New York (Cases No. 13-10087, 13-10088 and 13-10089). These shares were all the shares of Common Stock beneficially owned by R&R, an affiliate of Rodman.

 

On May 9, 2013, we entered into an arrangement with Kirk M. Warshaw pursuant to which he will continue to serve as our part-time chief financial officer on an at-will basis. Mr. Warshaw will be paid $25,000 per annum for such services.

 

ITEM 6. EXHIBITS

 

Exhibit No.   Description
     
10.1   Form of Stock Subscription Agreement, dated May 9, 2013, between 24Holdings, Inc. and each of Hudson Bay Master Fund Ltd. and Iroquois Master Fund Ltd.
     
10.2   Amendment to the Common Stock Purchase Agreement, dated May 9, 2013, between InfiniCom, AB (now known as Avalon Innovation AB) and 24Holdings, Inc.
     
31.1   Certification of the President pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
31.2   Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
32.1   Certification of the President pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
32.2   Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
101.INS **   XBRL Instance Document.
     
101.SCH**   XBRL Taxonomy Extension Schema Document.
     
101.CAL**   XBRL Taxonomy Extension Calculation Linkbase Document.
     
101.LAB**   XBRL Taxonomy Extension Label Linkbase Document.
     
101.PRE**   XBRL Taxonomy Extension Presentation Linkbase Document.
     
101.DEF**   XBRL Taxonomy Extension Definition Linkbase Document.

 

 

 

**Filed with this report in accordance with Rule 406T of Regulation S-T, the information in these exhibits shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

 

13
 

 

SIGNATURES

 

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

 

  24Holdings Inc
   
Dated: May 14, 2013 /s/ Arnold P. Kling
  Arnold P. Kling, President
  (Principal Executive Officer)
   
Dated: May 14, 2013  /s/ Kirk M. Warshaw
  Kirk M. Warshaw, Chief Financial Officer
  (Principal Financial and Accounting Officer)

 

14

EX-10.1 2 v344028_ex10-1.htm EXHIBIT 10.1

EXECUTION COUNTERPART

FORM OF

 

 

24HOLDINGS, INC.

 

 

 

COMMON STOCK SUBSCRIPTION AGREEMENT

 

 

 

SUBSCRIBER:

 

[IROQUOIS CAPITAL MANAGEMENT LLC

 

HUDSON BAY CAPITAL MANAGEMENT, L.P.]

 

 

 

 

 

 

NUMBER OF SHARES: 344,210

 

 

 

 

 

 

 

 

Dated: May 9, 2013

 

 
 

 

Subscription Agreement

 

[For Purchase of Shares of Common Stock]

 

 

THIS SUBSCRIPTION AGREEMENT CONSTITUTES AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY 344,210 SHARES OF COMMON STOCK OF 24HOLDINGS, INC., AND THIS OFFERING IS MADE ONLY TO THOSE INVESTORS WHO QUALIFY AS “ACCREDITED INVESTORS” WITHIN THE MEANING OF RULE 501(A) OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

THE SECURITIES SUBSCRIBED FOR BY THIS AGREEMENT ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.

 

THE SECURITIES SUBSCRIBED FOR BY THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT, OR THE SECURITIES LAWS OF CERTAIN STATES AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. THE SECURITIES SUBSCRIBED FOR BY THIS AGREEMENT HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THE SECURITIES OFFERED BY THE COMPANY. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

 

24Holdings, Inc.

133 Summit Avenue, Suite 22

Summit, NJ 07901

 

Ladies and Gentlemen:

 

The undersigned (the “Subscriber”), desires to become a holder of 344,210 shares of Common Stock, $.001 par value, (the “Common Stock”) of 24Holdings, Inc., a corporation organized under the laws of the state of Delaware (the “Company”). Accordingly, the Subscriber hereby agrees as follows:

 

1. Subscription. The Subscriber hereby subscribes for and agrees to accept from the Company pursuant to this Subscription Agreement (the “Agreement”), 344,210 shares of Common Stock (the “Securities”) in consideration of $0.1946488 per Share, or aggregate consideration of $67,000.

 

2
 

 

2.      Purchase Procedure; Delivery of Certificates. The Subscriber acknowledges that, in order to subscribe for Shares, it must, and it does hereby, deliver to the Company:

 

2.1 One executed counterpart of the Signature Page attached to this Agreement; and

 

2.2 A wire transfer, in the amount of $67,000 sent to the bank account designated by 24Holdings, Inc. on the signature page hereto.

 

2.3 The Company will deliver to the Subscriber a certificate representing the Securities within 30 days of the date hereof.

 

3.      Purchaser’s Representations. Subscriber hereby represents and warrants as of the date hereof as follows:

 

(a)                Organization; Authority. Such Subscriber is an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Agreement and performance by such Subscriber of the transactions contemplated by the Agreement have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Subscriber. This Agreement has been duly executed by such Subscriber, and when delivered by such Subscriber in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Subscriber, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b)               Own Account. Such Subscriber understands that the Securities are “restricted securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities law (this representation and warranty not limiting such Subscriber’s right to sell the Securities otherwise in compliance with applicable federal and state securities laws). Such Subscriber is acquiring the Securities hereunder in the ordinary course of its business.

 

(c)                Subscriber Status. At the time such Subscriber was offered the Securities, it was, and as of the date hereof it is, and on each date on which it exercises any Warrants, it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act. Such Subscriber is not required to be registered as a broker-dealer under Section 15 of the Exchange Act.

 

3
 

 

(d)               Experience of Such Subscriber. Such Subscriber, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Subscriber is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e)                General Solicitation. Such Subscriber is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.

 

(f)                Investment Risk; No Review. Such Subscriber understands that an investment in the Securities involves substantial risks and Subscriber recognizes and understands the risks relating to the purchase of the Securities. Such Subscriber further understands that (i) the offering contemplated hereby has not been reviewed by any federal or state governmental body or agency due in part to the Company’s representations that it will comply with the provisions of Regulation D; (ii) if required by the laws or regulations of said state(s) the offering contemplated hereby will be submitted to the appropriate authorities of such state(s) for registration or exemption therefrom; and (iii) the documents used in connection with this Offering have not been reviewed or approved by any regulatory agency or government department, nor has any such agency or government department made any finding or determination as to the fairness of the Securities for investment.

 

(g)               Available Information. Such Subscriber represents that the Company has made available to it all information which it deemed material to making an informed investment decision in connection with his purchase of Securities; and that it has been represented by Counsel and been advised concerning the risks and merits of this investment. Further, Subscriber acknowledges that the Company has made available to it the opportunity to ask questions of, and receive answers from the Company, its officers, directors and other persons acting on its behalf.

 

4.      Company Representations.

 

(a)                Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of each of this Agreement and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection herewith. This Agreement has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

4
 

 

(b)   No Conflicts. The execution, delivery and performance by the Company of this Agreement, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Company’s certificate or articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien upon any of the properties or assets of the Company, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company debt or otherwise) or other understanding to which the Company is a party or by which any property or asset of the Company is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company is bound.

 

(c)    Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other person in connection with the execution, delivery and performance hereof by the Company.

 

(d)   Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the terms of this Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all liens imposed by the Company other than restrictions on transfer imposed by Federal securities laws and similar state securities law statutes.

 

(e)    Capitalization. The current capitalization of the Company is as set forth on Schedule 4(e) hereto. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by this Agreement. There are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company is or may become bound to issue additional shares of Common Stock. The issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any person (other than the Subscribers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities.

 

5
 

 

(f)    SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. 

 

5.      Indemnification.

 

(a)    Subscriber hereby agrees to indemnify and hold harmless the Company and the Company’s officers, directors, employees, agents and affiliates from and against any and all damages, losses, costs, liabilities and expenses (including, without limitation, reasonable attorneys’ fees) which they, or any of them, may incur by reason of the Subscriber’s failure to fulfill any of the terms and conditions of this Agreement or by reason of the Subscriber’s breach of any of his representations and warranties contained herein. This Agreement and the representations and warranties contained herein shall be binding upon the Subscriber’s heirs, executors, administrators, representatives, successors and assigns.

 

6
 

 

 (b)   The Company hereby agrees to indemnify and hold harmless the Subscriber and the Subcriber’s officers, directors, employees, agents and affiliates from and against any and all damages, losses, costs, liabilities and expenses (including, without limitation, reasonable attorneys’ fees) which they, or any of them, may incur by reason of the Company’s failure to fulfill any of the terms and conditions of this Agreement or by reason of the Company’s breach of any of his representations and warranties contained herein. This Agreement and the representations and warranties contained herein shall be binding upon the Company’s heirs, executors, administrators, representatives, successors and assigns.

 

 

THE COMPANY HAS BEEN ADVISED THAT THE INDEMNIFICATION OF THE COMPANY, ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS AND AFFILIATES FOR VIOLATIONS OF STATE OR FEDERAL SECURITIES LAWS IS VOID AS AGAINST PUBLIC POLICY AND THEREFORE UNENFORCEABLE.

 

6.Arbitration Agreement.

 

6.1 Subscriber represents, warrants and covenants that any controversy or claim brought directly, derivatively or in a representative capacity by him in his capacity as a present or former security holder, whether against the Company, in the name of the Company or otherwise, arising out of or relating to any acts or omissions of the Company, or any security holder or any of their officers, directors, agents, affiliates, associates, employees or controlling persons (including without limitation any controversy or claim relating to a purchase or sale of the Note) shall be settled by arbitration under the Federal Arbitration Act in accordance with the commercial arbitration rules of the American Arbitration Association (“AAA”) and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. Any controversy or claim brought by the Company against the Subscriber, whether in his capacity as present or former security holder of the Company in or against any of the Subscriber’s officers, directors, agents, affiliates, associates, employees or controlling persons shall also be settled by arbitration under the Federal Arbitration Act in accordance with the commercial arbitration rules of the AAA and judgment rendered by the arbitrators may be entered in any court having jurisdiction thereof. In arbitration proceedings under this Paragraph 5, the parties shall be entitled to any and all remedies that would be available in the absence of this Paragraph 5 and the arbitrators, in rendering their decision, shall follow the substantive laws that would otherwise be applicable. This Paragraph 6 shall apply, without limitation, to actions arising in connection with the offer and sale of the Notes contemplated by this Agreement under any Federal or state securities laws.

 

6.2 The arbitration of any dispute pursuant to this Paragraph 6 shall be held in New York City, New York.

 

7. Applicable Law. This Agreement shall be construed in accordance with and governed by the laws applicable to contracts made and wholly performed in the State of Delaware.

 

7
 

 

8. Execution in Counterparts. This Agreement may be executed in one or more counterparts.

 

9. Persons Bound. This Agreement shall, except as otherwise provided herein, inure to the benefit of and be binding on the Company and its successors and assigns and on each Subscriber and his respective heirs, executors, administrators, successors and assigns.

 

10. Entire Agreement. This Agreement, when accepted by the Company, will constitute the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, inducements or conditions, express or implied, oral or written, except as herein contained. This Agreement may not be modified, changed, waived or terminated other than by a writing executed by all the parties hereto. No course of conduct or dealing shall be construed to modify, amend or otherwise affect any of the provisions hereof.

 

11. Assignability. The Subscriber acknowledges that he may not assign any of his rights to or interest in or under this Agreement without the prior written consent of the Company, and any attempted assignment without such consent shall be void and without effect.

 

12. Notices. Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered personally, telegraphed, telexed, sent by facsimile transmission or sent by certified, registered or express mail, postage prepaid, to the address of each party set forth herein. Any such notice shall be deemed given when delivered personally, telegraphed, telexed or sent by facsimile transmission or, if mailed, three days after the date of deposit in the United States mails.

 

13. Interpretation.

 

13.1 When the context in which words are used in this Agreement indicates that such is the intent, singular words shall include the plural, and vice versa, and masculine words shall include the feminine and neuter genders, and vice versa.

 

13.2 Captions are inserted for convenience only, are not a part of this Agreement, and shall not be used in the interpretation of this Agreement.

 

 

 

[signature page follows]

 

 

8
 

 

IN WITNESS WHEREOF, the undersigned has hereby executed this Subscription Agreement as of the date set forth below.

 

(PLEASE PRINT OR TYPE)

 

Exact name of Subscriber: [Iroquois Capital Management LLC /
  Hudson Bay Capital Management, L.P.]
     
     
Signature of Subscriber:    
  By:  
    (Signature)
     
     
    (Type or Print Name)

 

 

Date: May 9, 2013

 

 

Mailing Address:

 

 

Telephone Numbers: (212)                                                         

 

Taxpayer Identification Number:____________________

 

24Holdings, Inc. Wire Instructions:

 

9
 

 

 

ACCEPTANCE OF SUBSCRIPTION

 

I, Arnold P. Kling, President of 24Holdings, Inc. for and on behalf of the Company, hereby accept the subscription of [Iroquois Capital Management LLC / Hudson Bay Capital Management, L.P.] to purchase 344,210 Shares of 24Holdings, Inc. for the aggregate consideration of $67,000 this 9th day of May, 2013.

 

  24Holdings, Inc.
   
   
   
  Arnold P. Kling
  President

 

 

10
 

 

 

EX-10.2 3 v344028_ex10-2.htm EXHIBIT 10.2

 

SECOND AMENDMENT TO COMMON STOCK PURCHASE AGREEMENT

 

 

THIS SECOND AMENDMENT TO COMMON STOCK PURCHASE AGREEMENT (the “Amendment”), dated as of May 9, 2013, by and between Avalon Innovation AB and 24Holdings, Inc.

 

W I T N E S S E T H

 

WHEREAS, Avalon Innovation AB (the “Seller”) and 24Holdings, Inc. (the “Company”) consummated certain transactions pursuant to that certain Common Stock Purchase Agreement (the “Agreement”) dated as of May 26, 2005, as amended, relating to, among other things, the sale of the Seller’s Shares (as defined in the Agreement) of the Company’s stock to the purchaser signatories to the Agreement; and

 

WHEREAS, by agreement dated as of November 28, 2005 the parties amended the Agreement with respect to certain Merger Shares to be issued to the Seller; and

 

WHEREAS, the Seller and the Company desire to further amend the Agreement to eliminate the obligation of the Company to issue Merger Shares in exchange for the issuance to the Seller of 138,322 share of commons stock of the Company (the “Consideration Shares”) as of the date hereof.

 

NOW THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1. All capitalized terms herein shall have the meanings defined in the Agreement unless otherwise defined in this Amendment. Except as set forth herein, the Agreement is ratified and confirmed in all respects and all provisions therein shall continue in full force and effect.

 

 
 

 

 

2. Section 2.1 of the Agreement is hereby deleted and replaced in its entirety as follows: “Subject to the terms and conditions set forth in this Agreement, Seller agrees to sell, transfer and assign to the Purchasers and the Purchasers agree to purchase from the Seller the Shares, in exchange for an aggregate purchase price (the “Purchase Price”) consisting of (i) $500,000 in cash (the “Cash Consideration”) and (ii) 138,322 shares of common stock of the Company (the “Share Consideration”) which represents ten percent (10%) of the issued and outstanding shares of common stock of the Company on a fully diluted basis on the date hereof (including any shares issuable pursuant to any warrants, options or convertible securities).”

 

3. Seller acknowledges prior receipt of the Cash Consideration and that upon receipt of the Share Consideration, it shall have no further rights to receipt of any consideration (cash or otherwise) on account of the Purchase Price.

 

4. Within thirty (30) days from the date hereof, the Company shall cause to be issued and delivered to counsel to the Seller a certificate representing the Share Consideration. The Share Consideration will be issued pursuant to an exemption from registration under the Securities Act of 1933, as amended, and the certificate will contain thereon a restrictive legend to such effect.

 

5. The Company represents and warrants to the Seller as follows:

 

(a) The authorized capital stock of the Company consists of 100,000,000 shares of common stock, $.001 par value per share, and 5,000,000 shares of preferred stock, $.001 par value per share. The outstanding capitalization of the Company as of the date hereof consists of 1,244,902 shares of common stock and no shares of preferred stock. Giving effect to the issuance of the Share Consideration, the outstanding capitalization of the Company will consists of 1,383,244 shares of common stock and no shares of preferred stock.

 

(b) As of the date hereof, the Company is current in its filings under the Exchange Act of 1934.

 

(c) Upon issuance, the shares of common stock comprising the Share Consideration will be duly authorized, fully paid and non-assessable shares of common stock of the Company.

 

2
 

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of the day and year first above written.

 

  24HOLDINGS, INC
     
  By: /s/ Arnold Kling
    Name:  Arnold Kling
    Title:  President
     
     
  AVALON INNOVATION AB
     
  By: /s/ Per-Anders Johansson
    Name: Per-Anders Johansson
    Title:   Chairman

 

 

3
 

EX-31.1 4 v344028_ex31-1.htm EXHIBIT 31.1

 

Exhibit 31.1

 

CERTIFICATION

 

I, Arnold P. Kling, certify that:

 

1.I have reviewed this quarterly report on Form 10-Q of 24Holdings Inc.;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

 

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: May 14, 2013

 

  /s/ Arnold P. Kling  
  Arnold P. Kling  
  President  
  (Principal Executive Officer)  

  

 

 

EX-31.2 5 v344028_ex31-2.htm EXHIBIT 31.2

Exhibit 31.2

 

CERTIFICATION

 

I, Kirk M. Warshaw, certify that:

 

1.I have reviewed this quarterly report on Form 10-Q of 24Holdings Inc.;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

 

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: May 14, 2013

 

  /s/ Kirk M. Warshaw  
  Kirk M. Warshaw  
  Chief Financial Officer  
  (Principal Financial Officer)  

  

 

 

EX-32.1 6 v344028_ex32-1.htm EXHIBIT 32.1

Exhibit 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the quarterly report of 24Holdings Inc. (the "Company") on Form 10-Q for the period ending March 31, 2013 as filed with the Securities and Exchange Commission (the "Report"), I, Arnold P. Kling, President of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

 

Dated: May 14, 2013  
   
/s/ Arnold P. Kling  
Arnold P. Kling  
President  

 

A signed original of this certification has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

  

 

 

EX-32.2 7 v344028_ex32-2.htm EXHIBIT 32.2

Exhibit 32.2

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the quarterly report of 24Holdings Inc. (the "Company") on Form 10-Q for the period ending March 31, 2013 as filed with the Securities and Exchange Commission (the "Report"), I, Kirk M. Warshaw, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

 

Dated: May 14, 2013  
   
/s/ Kirk M. Warshaw  
Kirk M. Warshaw  
Chief Financial Officer  

 

A signed original of this certification has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

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STOCKHOLDERS' EQUITY
3 Months Ended
Mar. 31, 2013
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]

NOTE 4 – STOCKHOLDERS’ EQUITY

 

On February 1, 2006, a total of 250,000 shares of Preferred Stock were authorized for issuance to two individuals who provided services to us. On May 12, 2006, we filed a Certificate of Amendment to the Certificate of Designation for the Preferred Stock with the Secretary of State of the State of Delaware, increasing the number of shares designated as Preferred Stock from 500,000 to 600,000 shares. As a result of this filing, we issued 150,000 and 100,000 shares of the Preferred Stock to Arnold Kling and Kirk Warshaw for their services as our president and chief financial officer, respectively. Each share of Preferred Stock is convertible, at the holder's option, into 100 shares of Common Stock. Mr. Kling's services were valued at $11,250 and Mr. Warshaw's services were valued at $7,500.

 

On October 23, 2006, we effected a reverse stock split of our Common Stock. Pursuant to this reverse stock split, each 125 shares of Common Stock issued and outstanding as of the date following the reverse stock split was converted into one (1) share of Common Stock. This reverse stock split reduced the number of shares of Common Stock into which each share of Preferred Stock could be converted from 100 shares to .8 shares. All per share data has been retroactively restated to reflect this reverse stock split.

 

On November 29, 2006, the holders of all the issued and outstanding shares of Preferred Stock elected to convert all of their Preferred Stock into shares of Common Stock. As a result, the 594,595 shares of Preferred Stock outstanding were exchanged for 475,676 shares of Common Stock.

 

As of March 31, 2013, our authorized capital stock consists of 100,000,000 shares of Common Stock and 5,000,000 shares of Preferred Stock, of which 1,244,902 shares of Common Stock, and no shares of Preferred Stock, are issued and outstanding. All shares of Common Stock currently outstanding are validly issued, fully paid and non-assessable.

 

During 2011, a stockholder contributed $25,500 to the Company. During 2012, the same stockholder contributed an additional $27,500 to the Company.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Mar. 31, 2013
Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

 

Fair Value of Financial Instruments - Pursuant to the accounting guidance, "Disclosures About Fair Value of Financial Instruments," we are required to estimate the fair value of all financial instruments included on our balance sheet as of March 31, 2013. We consider the carrying value of accrued expenses in the financial statements to approximate their face value.

 

Statements of Cash Flows - For purposes of the statements of cash flows we consider all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents.

XML 19 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONDENSED BALANCE SHEETS (USD $)
Mar. 31, 2013
Dec. 31, 2012
ASSETS    
Cash and cash equivalents $ 5,950 $ 7,863
TOTAL CURRENT ASSETS 5,950 7,863
TOTAL ASSETS 5,950 7,863
LIABILITIES AND STOCKHOLDERS' EQUITY(DEFICIT)    
Accrued expenses 38,140 33,303
TOTAL CURRENT LIABILITIES 38,140 33,303
TOTAL LIABILITIES 38,140 33,303
STOCKHOLDERS' EQUITY (DEFICIT):    
Preferred stock; $.001 par value, 5,000,000 shares authorized, none issued and outstanding 0 0
Common stock, $.001 par value; 100,000,000 shares authorized, 1,244,902 shares issued and outstanding 1,245 1,245
Additional Paid-in Capital 10,833,384 10,833,384
Accumulated Deficit (10,866,819) (10,860,069)
Total stockholders' equity (deficit) (32,190) (25,440)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 5,950 $ 7,863
XML 20 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
DESCRIPTION OF COMPANY:
3 Months Ended
Mar. 31, 2013
Organization, Consolidation and Presentation Of Financial Statements [Abstract]  
Nature of Operations [Text Block]

NOTE 1 - DESCRIPTION OF COMPANY:

 

We are a Delaware corporation formerly known as Scoop, Inc. In April 2001, Scoop, Inc. amended its Certificate of Incorporation to change its name to 24Holdings Inc. (“we”, “our”, “us” or “24Holdings”). Prior to September 30, 2005, 24Holdings was a holding company that conducted its business operations through its wholly owned subsidiary 24STORE (Europe) Limited, a company incorporated under the laws of England formerly known as 24STORE.com Limited ("24STORE"). 24STORE commenced business operations in 1996 and focused on the sale of media products and business information services. Commencing in July 1998, we underwent voluntary reorganization under Chapter 11 of the United States Bankruptcy Code. In accordance with the Plan of Reorganization approved by the Bankruptcy Court in December 1999, InfiniCom, AB (now known as Avalon Innovation AB), a Swedish registered company (“Infinicom”), acquired 91% of our outstanding stock in exchange for 100% of the stock of 24STORE. Subsequent to Infinicom’s acquisition in 1999 and until September 30, 2005, the business operations of 24STORE, which represented all of our operations, were devoted to supplying business customers with computer and electronics products.

 

On October 23, 2006 (the “Effective Date”), we implemented a 1 for 125 reverse stock split (the “Reverse Split”) of our common stock par value $.001 per share (the “Common Stock”). Pursuant to the Reverse Split, each 125 shares of Common Stock issued and outstanding as of the Effective Date was converted into one (1) share of Common Stock. The Reverse Split also reduced the number of shares of Common Stock into which each share of Series A Convertible Preferred Stock, par value $.001 per share (the “Preferred Stock”) could be converted from 100 shares to 0.8 shares. All per share data herein has been retroactively restated to reflect the Reverse Split.

 

The interim financial information as of March 31, 2013 and for the three month periods ended March 31, 2013 and 2012 have been prepared without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). 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 we believe that the disclosures made are adequate to provide for fair presentation. These financial statements should be read in conjunction with the financial statements and the notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2012, previously filed with the SEC.

 

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of our financial position as of March 31, 2013, results of operations for the three months ended March 31, 2013 and 2012, and cash flows for the three months ended March 31, 2013 and 2012, have been made. The results of operations for the three months ended March 31, 2013 are not necessarily indicative of the operating results that may be expected for the full fiscal year or any future periods.

 

CHANGE OF OWNERSHIP TRANSACTIONS

 

On May 26, 2005, we entered into a series of agreements with Infinicom in connection with our sale of all of the outstanding stock of 24STORE (the “24STORE Sale”) and separately, the assignment of all rights and title to certain trademarks and domain names (the “IP Assets”) that we held (the “IP Assignment”). Pursuant to the terms of the 24STORE Sale, Infinicom paid us $100,000 for our 24STORE shares and pursuant to the IP Assignment, we paid for the IP Assets through a set-off against all outstanding and contingent liabilities we owed to Infinicom determined as of the closing date of the 24STORE Sale, which amounted to $603,830.

 

On May 26, 2005, we also entered into a Preferred Stock Purchase Agreement with Infinicom (the “Preferred Stock Agreement”) pursuant to which we sold to Infinicom 344,595 shares of our Preferred Stock in exchange for the discharge of $230,879 of outstanding debt owed to Infinicom. Each share of the Preferred Stock was convertible into 0.8 shares of our Common Stock at the holder’s option.

 

On May 26, 2005, Infinicom, 24Holdings, Moyo Partners, LLC (“Moyo”) and R&R Biotech Partners, LLC (“R&R”, and together with Moyo, the “Purchasers”) entered into a Common Stock Purchase Agreement (the “Infinicom Sale Agreement”) pursuant to which, Infinicom agreed to sell to the Purchasers an aggregate of 873,369 shares of Common Stock (which included shares issuable upon conversion of the Preferred Stock) which represented approximately 83.6% of the then issued and outstanding shares of Common Stock (the “Infinicom Sale”). In return, the Purchasers (i) paid to Infinicom $500,000 in cash, and (ii) agreed that upon the occurrence of one of several post-closing events, including a merger with one or more as yet unidentified private unaffiliated operating companies, to cause 24Holdings to issue to Infinicom shares of Common Stock representing 1% of the then issued and outstanding shares of Common Stock on a fully diluted basis (the “Infinicom Additional Shares”). The consummation of the Infinicom Sale was contingent on the contemporaneous closing of the 24STORE Sale and the IP Assignment.

 

On September 30, 2005, 24Holdings and Infinicom completed the transactions contemplated in the 24STORE Sale, the IP Assignment and the Preferred Stock Agreement as described above. Infinicom forgave the $603,830 of debt 24Holdings owed to them in consideration of the IP Assignment.

 

Effective September 30, 2005, Infinicom completed the sale to the Purchasers, under the Infinicom Sale Agreement, of 597,693 shares of Common Stock (which represented 77.7% of the 769,226 shares of Common Stock then issued and outstanding) and 344,595 shares of Preferred Stock, constituting 83.6% in the aggregate of the then issued and outstanding Common Stock (assuming the conversion of the Preferred Stock into 275,676 shares of Common Stock). As a result, the Purchasers acquired control of 24Holdings from Infinicom, with R&R beneficially owning 698,696 shares of Common Stock (assuming the conversion by R&R of 275,676 shares of Preferred Stock into 220,541 shares of Common Stock) constituting 66.9% of the then issued and outstanding shares of Common Stock, and Moyo in the aggregate beneficially owning 174,674 shares of Common Stock (assuming the conversion by Moyo of 68,919 shares of Preferred Stock into 55,135 shares of Common Stock) constituting 16.7% of the then issued and outstanding shares of Common Stock.

 

Effective September 30, 2005 Urban von Euler resigned as our president and a director but remained our chief executive officer. Also, effective September 30, 2005, Larsake Sandin resigned as a director and each of Arnold P. Kling and Kirk M. Warshaw were appointed as directors of 24Holdings. On November 21, 2005, effective with the filing of our Form 10-Q for the quarter ended September 30, 2005, Mr. von Euler resigned as chief executive officer and Mr. Kling was appointed president and treasurer and Mr. Warshaw was appointed chief financial officer and secretary. As of that same date, 24Holdings relocated its headquarters to Chatham, New Jersey and then later to Summit, New Jersey.

 

On November 25, 2005, the Infinicom Sale Agreement was amended to provide, among other criteria, that the fair market value of the Infinicom Additional Shares would be no less than $400,000 nor more than $600,000 at the time such shares are required to be issued to Infinicom (See Note 7 – Subsequent Events).

 

On February 1, 2006, a total of 250,000 shares of Preferred Stock were authorized for issuance to two individuals who provided services to us. On May 12, 2006, we issued 150,000 and 100,000 shares, respectively, of Preferred Stock to Arnold P. Kling and Kirk M. Warshaw for their services as our president and chief financial officer, respectively. Each share of Preferred Stock is immediately convertible, at the holder's option, into 0.8 shares of Common Stock. Mr. Kling's services were valued at $11,250 and Mr. Warshaw's services were valued at $7,500.

 

On November 29, 2006, the holders of all the issued and outstanding shares of Preferred Stock elected to convert all of their Preferred Stock into shares of Common Stock. As a result, the 594,595 shares of Preferred Stock outstanding were exchanged for 475,676 shares of Common Stock.

 

As of March 31, 2013, our authorized capital stock consists of 100,000,000 shares of Common Stock and 5,000,000 shares of Preferred Stock of which 1,244,902 shares of Common Stock, and no shares of Preferred Stock, were issued and outstanding (See Note 7 – Subsequent Events).. All shares of Common Stock currently outstanding are validly issued, fully paid and non-assessable.

 

THE COMPANY TODAY

 

Since September 30, 2005, our purpose has been to serve as a vehicle to acquire an operating business and is currently considered a "shell" or blank check company inasmuch as we are not generating revenues, do not own an operating business, and have no specific plan other than to engage in a merger or acquisition transaction with a yet-to-be identified company or business. We have no employees and no material assets.

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XML 22 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
BASIS OF PRESENTATION
3 Months Ended
Mar. 31, 2013
Organization, Consolidation and Presentation Of Financial Statements [Abstract]  
Basis of Accounting [Text Block]

NOTE 2 – BASIS OF PRESENTATION

 

The condensed financial statements have been prepared by us, without audit, pursuant to the rules and regulations of the SEC. 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. In the opinion of management, the accompanying condensed financial statements include all adjustments (consisting of normal, recurring adjustments) necessary to make our, results of operations and cash flows not misleading as of March 31, 2013. The results of operations for the three months ended March 31, 2013 are not necessarily indicative of the results of operations for the full year or any other interim period. These financial statements should be read in conjunction with the financial statements and the notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2012, previously filed with the SEC.

XML 23 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONDENSED BALANCE SHEETS [Parenthetical] (USD $)
Mar. 31, 2013
Dec. 31, 2012
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares, issued 1,244,902 1,244,902
Common stock, shares, outstanding 1,244,902 1,244,902
XML 24 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUBSEQUENT EVENTS (Details Textual) (USD $)
12 Months Ended 3 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Mar. 31, 2013
Subsequent Event [Member]
Mar. 31, 2013
Subsequent Event [Member]
Hudson [Member]
Mar. 31, 2013
Subsequent Event [Member]
Iroquois [Member]
Stock Issued During Period, Shares, Conversion of Units     138,322    
Proceeds from Issuance of Common Stock $ 27,500 $ 25,500 $ 134,000    
Stock Issued During Period, Shares, New Issues     344,210 349,348 349,348
Common Stock Sale Price     0.1946488 0.194648 0.194648
Stock Issued During Period, Value, New Issues       $ 68,000 $ 68,000
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DOCUMENT AND ENTITY INFORMATION
3 Months Ended
Mar. 31, 2013
May 14, 2013
Entity Registrant Name 24HOLDINGS INC  
Entity Central Index Key 0001025315  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Trading Symbol twfh  
Entity Common Stock, Shares Outstanding   2,071,644
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2013  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2013  
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CONDENSED STATEMENTS OF OPERATIONS (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Revenues $ 0 $ 0
Expenses    
General and administrative 6,750 7,279
Total operating expenses 6,750 7,279
Net Loss $ (6,750) $ (7,279)
Weighted average number of common shares outstanding (in shares) 1,244,902 1,244,902
Net loss per share - basic and fully diluted (in dollars per share) $ (0.01) $ (0.01)
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SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2013
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

NOTE 7 – SUBSEQUENT EVENTS

 

The Company has evaluated all subsequent events and has determined that there were no subsequent events to recognize or disclose in these financial statements other than the following:

 

On May 9, 2013, the Company entered into an amendment to the Infinicom Sale Agreement (the “Amendment”) pursuant to which Infinicom’s rights to the Infinicom Additional Shares was converted into 138,322 shares of Common Stock, which will be delivered to Infinicom within 30 days of the Amendment.

 

On May 9, 2013, the Company raised gross proceeds of $134,000 from the sale of 344,210 shares of Common Stock at a price of $0.1946488 per share to each of Hudson Bay Master Fund Ltd. (“Hudson”) and Iroquois Master Fund Ltd. (“Iroquois”). The sale to Hudson and Iroquois was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Act”) pursuant to Sections 4(a)(2) and 4(a)(5) of the Act. Prior to May 9, 2013, each of Hudson and Iroquois acquired 349,348 shares of Common Stock at a purchase price of $68,000, or $0.194648 per share, from the Chapter 7 Trustee of the Estates of Rodman & Renshaw, LLC (“Rodman”), Direct Markets, Inc., and Direct Markets Holdings, Corp. in Chapter 7 bankruptcy proceedings pending in the United States Bankruptcy Court for the Southern District of New York (Cases No. 13-10087, 13-10088 and 13-10089). These shares were all the shares of Common Stock beneficially owned by R&R, an affiliate of Rodman.

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COMMITMENTS AND CONTIGENCIES
3 Months Ended
Mar. 31, 2013
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]

NOTE 6 – COMMITMENTS AND CONTIGENCIES

 

On January 29, 2009, the Company entered into an agreement with Kirk M. Warshaw, LLC (the “LLC”) for the use and occupancy, and administrative services, related to its principal offices. The agreement provides for quarterly payments from the Company to the LLC of $500. The effective date of the agreement was January 1, 2009.

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STOCKHOLDERS' EQUITY (Details Textual) (USD $)
1 Months Ended 12 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended
Oct. 31, 2006
Feb. 28, 2006
Dec. 31, 2012
Dec. 31, 2011
Mar. 31, 2013
Nov. 29, 2006
Sep. 30, 2005
Infinicom Sale Agreement [Member]
Sep. 30, 2005
Common Stock [Member]
Infinicom Sale Agreement [Member]
Sep. 30, 2005
Preferred Stock [Member]
Infinicom Sale Agreement [Member]
Oct. 31, 2006
Series A Convertible Preferred Stock [Member]
Feb. 01, 2006
Services Provider [Member]
Nov. 30, 2005
Minimum [Member]
Infinicom Sale Agreement [Member]
Nov. 30, 2005
Maximum [Member]
Infinicom Sale Agreement [Member]
Oct. 31, 2006
Stockholders' Equity, Total [Member]
Nov. 29, 2006
Stockholders' Equity, Total [Member]
Oct. 31, 2006
Stockholders' Equity, Total [Member]
Series A Convertible Preferred Stock [Member]
Feb. 28, 2006
Stockholders' Equity, Total [Member]
Arnold P Kling [Member]
Feb. 28, 2006
Stockholders' Equity, Total [Member]
Kirk M Warshaw [Member]
Feb. 28, 2006
Stockholders' Equity, Total [Member]
Minimum [Member]
Feb. 28, 2006
Stockholders' Equity, Total [Member]
Maximum [Member]
Preferred stock, shares authorized     5,000,000   5,000,000           250,000               500,000 600,000
Stock Issued During Period, Shares, Issued for Services             597,693 769,226 344,595     400,000 600,000       150,000 100,000    
Preferred Stock Conversion Description   Preferred Stock is immediately convertible, at the holder's option, into 0.8 shares of Common Stock               converted from 100 shares to 0.8 shares           converted from 100 shares to .8 shares.        
Stock Issued During Period, Value, Issued for Services                                 $ 11,250 $ 7,500    
Common Stock Conversion Description Each 125 shares of Common Stock issued and outstanding as of the Effective Date was converted into one (1) share of Common Stock                         Each 125 shares of Common Stock issued and outstanding as of the Effective Date was converted into one (1) share of Common Stock            
Preferred stock, shares outstanding     0   0                   594,595          
Preferred Stock Exchanged With Common Stock           475,676                 475,676          
Common stock, shares, issued     1,244,902   1,244,902                              
Common stock, shares, outstanding     1,244,902   1,244,902                              
Proceeds from Issuance of Common Stock     $ 27,500 $ 25,500                                
Common stock, shares authorized     100,000,000   100,000,000                              
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Mar. 31, 2013
Accounting Policies [Abstract]  
Use of Estimates, Policy [Policy Text Block]
Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments, Policy [Policy Text Block]
Fair Value of Financial Instruments - Pursuant to the accounting guidance, "Disclosures About Fair Value of Financial Instruments," we are required to estimate the fair value of all financial instruments included on our balance sheet as of March 31, 2013. We consider the carrying value of accrued expenses in the financial statements to approximate their face value.
Condensed Cash Flow Statement [Policy Text Block]
Statements of Cash Flows - For purposes of the statements of cash flows we consider all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents.
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DESCRIPTION OF COMPANY: (Details Textual) (USD $)
1 Months Ended 3 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended
Oct. 31, 2006
Feb. 28, 2006
Mar. 31, 2012
Mar. 31, 2013
Dec. 31, 2012
Nov. 29, 2006
Oct. 31, 2006
Stockholders' Equity, Total [Member]
Nov. 29, 2006
Stockholders' Equity, Total [Member]
Feb. 28, 2006
Arnold P Kling [Member]
Stockholders' Equity, Total [Member]
Feb. 28, 2006
Kirk M Warshaw [Member]
Stockholders' Equity, Total [Member]
Feb. 01, 2006
Services Provider [Member]
Feb. 28, 2006
Minimum [Member]
Stockholders' Equity, Total [Member]
Feb. 28, 2006
Maximum [Member]
Stockholders' Equity, Total [Member]
Sep. 30, 2005
Infinicom Sale Agreement [Member]
Nov. 30, 2005
Infinicom Sale Agreement [Member]
Minimum [Member]
Nov. 30, 2005
Infinicom Sale Agreement [Member]
Maximum [Member]
Sep. 30, 2005
Infinicom Sale Agreement [Member]
Common Stock [Member]
Sep. 30, 2005
Infinicom Sale Agreement [Member]
Preferred Stock [Member]
Sep. 30, 2005
Infinicom and R R [Member]
Sep. 30, 2005
Infinicom [Member]
May 31, 2005
Infinicom [Member]
Sep. 30, 2005
Moyo [Member]
Infinicom Sale Agreement [Member]
Oct. 31, 2006
Series A Convertible Preferred Stock [Member]
Oct. 23, 2006
Series A Convertible Preferred Stock [Member]
Oct. 31, 2006
Series A Convertible Preferred Stock [Member]
Stockholders' Equity, Total [Member]
May 31, 2005
Preferred Stock Agreement [Member]
May 26, 2005
Preferred Stock Agreement [Member]
May 31, 2005
Common Stock Purchase Agreement [Member]
Business Acquisition, Description of Acquired Entity     InfiniCom, AB, a Swedish registered company ("Infinicom"), acquired 91% of our outstanding stock in exchange for 100% of the stock of 24STORE.                                                  
Stockholders' Equity Note, Stock Split 1 for 125                                                      
Common Stock, Par Or Stated Value Per Share (in dollars per share)       $ 0.001 $ 0.001                                              
Common Stock Conversion Description Each 125 shares of Common Stock issued and outstanding as of the Effective Date was converted into one (1) share of Common Stock           Each 125 shares of Common Stock issued and outstanding as of the Effective Date was converted into one (1) share of Common Stock                                          
Preferred Stock, Par Or Stated Value Per Share (in dollars per share)       $ 0.001 $ 0.001                                     $ 0.001        
Preferred Stock Conversion Description   Preferred Stock is immediately convertible, at the holder's option, into 0.8 shares of Common Stock                                         converted from 100 shares to 0.8 shares   converted from 100 shares to .8 shares. Each share of the Preferred Stock was convertible into 0.8 shares of our Common Stock at the holder's option    
Proceeds from Related Party Debt                                       $ 603,830 $ 100,000              
Repayments of Related Party Debt                                         603,830              
Stock Issued During Period, Shares, New Issues                                                   344,595   873,369
Stock Issued During Period, Value, Conversion of Convertible Securities                                                   230,879    
Common Stock Issued Outstanding Percentage                                                     83.60%  
Cash                                                     500,000  
Common Stocks Issued Outstanding Diluted Percentage                                                     1.00%  
Common Stock Issued Outstanding Percentage One                           77.70%                            
Common Stock Issued Outstanding Percentage Two                           83.60%                            
Preferred stock, shares issued       0 0                 275,676         275,676     68,919            
Preferred Stock Converted To Common Stock                           220,541               55,135            
Common Stock Issued Outstanding Percentage Three                           66.90%                            
Common Stock Issued Outstanding Percentage Four                                           16.70%            
Preferred stock, shares authorized       5,000,000 5,000,000           250,000 500,000 600,000                              
Stock Issued During Period, Shares, Issued for Services                 150,000 100,000       597,693 400,000 600,000 769,226 344,595 698,696     174,674            
Stock Issued During Period, Value, Issued for Services                 $ 11,250 $ 7,500                                    
Preferred stock, shares outstanding       0 0     594,595                                        
Common stock, shares authorized       100,000,000 100,000,000                                              
Common stock, shares, issued       1,244,902 1,244,902                                              
Common stock, shares, outstanding       1,244,902 1,244,902                                              
Preferred Stock Exchanged With Common Stock           475,676   475,676                                        
XML 32 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMITMENTS AND CONTIGENCIES (Details Textual) (Kirk M Warshaw [Member], USD $)
In Thousands, unless otherwise specified
Jan. 29, 2009
Kirk M Warshaw [Member]
 
Amount Payable Quarterly Towards Rental And Administrative Services $ 500
XML 33 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONDENSED STATEMENTS OF CASH FLOWS (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (6,750) $ (7,279)
Changes in operating assets and liabilities increase (decrease) in accrued expenses 4,837 (1,949)
NET CASH USED IN OPERATING ACTIVITIES (1,913) (9,228)
CASH FLOWS FROM FINANCING ACTIVITIES    
Contributed capital 0 27,500
NET CASH PROVIDED BY FINANCING ACTIVITIES 0 27,500
NET CHANGE IN CASH AND CASH EQUIVALENTS (1,913) 18,272
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 7,863 9,725
CASH AND CASH EQUIVALENTS AT END OF PERIOD 5,950 27,997
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION    
Interest paid 0 0
Income taxes paid $ 0 $ 0
XML 34 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
NEW ACCOUNTING PRONOUNCEMENTS
3 Months Ended
Mar. 31, 2013
New Accounting Pronouncements and Changes In Accounting Principles [Abstract]  
Description of New Accounting Pronouncements Not yet Adopted [Text Block]

NOTE 5 – NEW ACCOUNTING PRONOUNCEMENTS

 

Management does not believe that any new accounting pronouncements not yet effective will have a material impact on the Company’s financial statements once adopted.

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