10-K 1 rsook.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [x] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended August 31, 2008 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ____________ Commission file number 000-52439 Reshoot & Edit ------------------------------------------------------ (Exact name of registrant as specified in its charter) Nevada 20-5449905 ------------------------ ------------------------ (State of incorporation) (I.R.S. Employer ID No.) 10685 Oak Crest Avenue, Las Vegas, Nevada 89144 ------------------------------------------------------------- (Address of principal executive officers, including Zip Code) (702) 610-6523 ------------------------------------- (Issuer's Telephone Number) Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: Common Stock Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. [ ] Yes [X] No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. [ ] Yes [X] No Indicate by checkmark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] Indicate by checkmark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X] Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act. [ ] Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [X] Smaller reporting company (Do not check if a smaller reporting company) Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes[X] No [ ] State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant's most recently completed second fiscal quarter: The aggregate market value of the Company's common shares of voting stock held by non-affiliates of the Company at August 31, 2008, computed by reference to the $0.02 Registration Statement per-share price on August 31, 2008, was $40,000. Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date: As of November 4, 2008, there were 9,200,000 shares of the issuers Common Stock outstanding. DOCUMENTS INCORPORATED BY REFERENCE: None. Transitional Small Business Disclosure Format: Yes [ ] No [X] INDEX Title Page ITEM 1. BUSINESS 5 ITEM 2. PROPERTIES 15 ITEM 3. LEGAL PROCEEDINGS 15 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 15 ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS 16 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF 18 FINANCIAL CONDITION AND RESULTS OF OPERATIONS ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 22 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON 23 ACCOUNTING AND FINANCIAL DISCLOSURE ITEM 9A. CONTROLS AND PROCEDURES 23 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 26 ITEM 11. EXECUTIVE COMPENSATION 29 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS, 31 MANAGEMENT AND RELATED STOCKHOLDER MATTERS ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS 32 AND DIRECTOR INDEPENDENCE ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 33 ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 34 2 FORWARD-LOOKING STATEMENTS This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objections of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements or belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words "may," "could," "estimate," "intend," "continue," "believe," "expect" or "anticipate" or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. We do not undertake to update forward- looking statements to reflect the impact of circumstances or events that arise after the dates they are made. You should, however, consult further disclosures we make in future filings of our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Although we believe that the expectations reflected in any of our forward- looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward- looking statements, are subject to change and inherent risks and uncertainties. The factors impacting these risks and uncertainties include, but are not limited to: o inability to raise additional financing for working capital; o inability to locate television and movie scripts; o deterioration in general or regional economic, market and political conditions; o the fact that our accounting policies and methods are fundamental to how we report our financial condition and results of operations, and they may require management to make estimates about matters that are inherently uncertain; o adverse state or federal legislation or regulation that increases the costs of compliance, or adverse findings by a regulator with respect to existing operations; o changes in U.S. GAAP or in the legal, regulatory and legislative environments in the markets in which we operate; 3 o inability to efficiently manage our operations; o inability to achieve future operating results; o our ability to recruit and hire key employees; o the inability of management to effectively implement our strategies and business plans; and o the other risks and uncertainties detailed in this report. In this form 10-K references to "Reshoot & Edit", "the Company", "we," "us," and "our" refer to Reshoot & Edit. AVAILABLE INFORMATION We file annual, quarterly and special reports and other information with the SEC. You can read these SEC filings and reports over the Internet at the SEC's website at www.sec.gov. You can also obtain copies of the documents at prescribed rates by writing to the Public Reference Section of the SEC at 100 F Street, NE, Washington, DC 20549 on official business days between the hours of 10:00 am and 3:00 pm. Please call the SEC at (800) SEC-0330 for further information on the operations of the public reference facilities. We will provide a copy of our annual report to security holders, including audited financial statements, at no charge upon receipt to of a written request to us at Reshoot & Edit, 10685 Oak Crest Avenue, Las Vegas, Nevada 89144. 4 PART I ITEM 1. BUSINESS History and Organization ------------------------ Reshoot & Edit ("the Company") was incorporated under the laws of the State of Nevada on August 23, 2006, under the name Reshoot & Edit Reshoot & Edit is focused on becoming a depository of television and movie scripts for resale. Our Business ------------ Reshoot & Edit is a developmental stage start-up company that has not generated any revenues and has no inventory of any movie/television scripts. The Company's goal is to purchase or obtain options to purchase television and movie scripts, develop and implement a marketing and sales program to sell these television/movie scripts and address all necessary infrastructure concerns. Industry Background ------------------- A movie/television producer finds or develops scripts, puts them together with actors and other creative personnel, and sells the resulting "package" to a movie/television studio. There are literally thousands of full-and part-time producers, ranging from an individual to major production companies that may have a dozen or more film and TV projects in production at any given moment. An established production company will typically have a director of development and/or a story editor who reads scripts. In some cases, these people will read submissions from unknown writers and writers who are not represented by an agent. In most instances, they refuse to read unsolicited submissions because: (1) they already have more scripts than they can read; and (2) they are concerned of being sued by a new writer who may claim that they read his/her script, made some changes to the script and plagiarized their intellectual property. Some producers will read a script if the writer signs a release to protect the producers from plagiarism suits. Most writers approach the director of development through an agent. It is not mandatory that a writer have a screenplay agent represent them in order to sell a screenplay. However, having a screenplay agent may increase their chances to sell a screenplay. Many producers prefer or mandate that screenplay submissions come only from screenplay agents because screenplay agents help their review process by weeding out a large portion of non-saleable screenplays. Screenplay agents know the in's and out's of the industry. Experienced agents know who is available, and who does the buying. 5 The benefits provided by a screenplay agent include: a) They read and edit screenplays to enhance their marketability b) They know the players involved: actors, directors, producers, and the buyers c) They know the trends d) They are experienced negotiators and may be able to obtain better terms and royalties e) Their job is focused on selling screenplays For screenwriters, half the battle is writing a screenplay. The other half is selling their screenplay. For a new screenwriter, the process of a selling screenplays can take longer than actually writing the screenplay. A literary manager offers most of the same services as a screenplay agent, but they also offer some additional services. In general, a literary manager helps writers develop and fine tune their writing skills. They also help to develop and fine tune individual screenplays. A Literary Manager may do all of the following: a) Edit scripts and help guide rewrites. b) Help to develop and fine tune writers writing skills. c) Find writing jobs for new writers. Marketing Strategy ------------------ Reshoot & Edit is considering marketing its services in the "Hollywood Agents and Managers Directory." This publication is a source book of agents' names, addresses, and phone numbers. It is published in February and August of each year. The directory costs about $50 per issue or $80 for a year's subscription. A majority of known and unknown screenwriters subscribe to this Directory. The "Hollywood Agents and Managers Directory" contains detailed listings for every literary and talent agency that does business in Hollywood. The publishers of "Hollywood Agents and Managers Directory" also produce the "Hollywood Creative Directory," which lists producers and studio personnel. The Writers Guild of America, offers writers a list of agencies that represent screenwriters. The mega-agencies like ICM and William Morris tend to be less than friendly to new writers, who have not established themselves. The success of Reshoot & Edit in purchasing a completed screenplays is difficult to measure. Screenplay agents generally charge a 10% commission on any screenplay sale and managers generally charge a 15% commission on the purchase price of a screenplay. Reshoot & Edit may utilize the services of agents and managers to help sell a screenplay. The commission paid to these agents will reduce future company profit. 6 Products and Services --------------------- Reshoot & Edit plans to purchase screenplays through either 1) an outright purchase of the script or 2) an option to purchase the script. Few screenwriters sell their screenplays in upper 6 figures. A more realistic purchase price for new screenwriters will be in the mid-5 figure range. After a screenwriter sells a screenplay, they gain added credibility and their saleability increases. It is when a screenwriter sells a screenplay for the second and third time, they can then expect to sell their screenplays for higher figures. Reshoot & Edit hopes to identify, find and purchase screenplays from new writers, who are not known at this time. If they become successful writers in the future, Reshoot & Edit will have a greater likelihood of marketing and selling the writers original work(s). The prices that Reshoot & Edit can sell a screenplay will depend on: 1) available inventory of screenplays owned by Reshoot & Edit 2) the reputation of the writers of the inventoried screenplays 3) the quality and story of the screenplay 4) the producers and actors attached to the film 5) the target audience of the screenplay 6) paying a commission to an agency to help find a buyer 7) timing in finding the right buyer at the right time Reshoot & Edit Funding Requirements ----------------------------------- Reshoot & Edit does not have the required capital or funding to complete this initial project. Management anticipates Reshoot & Edit will require at least $200,000 to purchase or obtain options to purchase television and movie scripts, develop and implement a marketing and sales program and address all necessary infrastructure concerns. Future funding could result in potentially dilutive issuances of equity securities, the incurrence of debt, contingent liabilities and/or amortization expenses related to goodwill and other intangible assets, which could materially adversely affect the Company's business, results of operations and financial condition. Any future acquisitions of other businesses, technologies, services or product(s) might require the Company to obtain additional equity or debt financing, which might not be available on terms favorable to the Company, or at all, and such financing, if available, might be dilutive. 7 Competition ----------- Many of the Company's competitors include movie/television producers, agents, and literary managers. Writers will look to them to sell their scripts before they would consider selling their script to Reshoot & Edit. These competing individuals and entities are significantly larger and have substantially greater financial, industry recognition and other resources than Reshoot & Edit. There is no assurance that the Company will be able to compete successfully against present or future competitors or that competitive pressures faced by the Company will not have a material adverse effect on the Company. Patent, Trademark, License and Franchise Restrictions and Contractual Obligations and Concessions We currently have no pending or provisional patents or trademark applications. Research and Development Activities and Costs The majority of Reshoot & Edit expenses involved the costs related to maintain the Company's fully reporting status. Compliance With Environmental Laws We are not aware of any environmental laws that have been enacted, nor are we aware of any such laws being contemplated for the future, that impact issues specific to our business. Environment laws do not apply to companies or individuals providing consulting services, unless they have been engaged to consult on environmental matters. We are not planning to provide environmental consulting services. 8 Employees --------- We have no full-time employees at the present time. Our sole officer and director, is responsible for all planning, developing and operational duties, and will continue to do so throughout the early stages of our growth. All functions including development, strategy, negotiations and clerical work is being provided by the sole officer/director on a voluntary basis, without compensation. We have no intention of hiring employees until the business has been successfully launched and we have sufficient, reliable revenue from our operations. Our officer and director is planning to do whatever work is required until our business to the point of having positive cash flow. We do not expect to hire any employees during the coming fiscal year. Item 1A. Risk Factors. Risk Factors Relating to Our Company ------------------------------------ 1. SINCE WE ARE A DEVELOPMENT STAGE COMPANY, WE HAVE GENERATED NO REVENUES AND LACK AN OPERATING HISTORY, AN INVESTMENT IN THE SHARES OFFERED HEREIN IS HIGHLY RISKY AND COULD RESULT IN A COMPLETE LOSS OF YOUR INVESTMENT IF WE ARE UNSUCCESSFUL IN OUR BUSINESS PLAN. Our company was incorporated on August 23, 2006; we have no operating history upon which an evaluation can be made. Based upon current plans, we expect to incur operating losses in future periods as we incur significant expenses associated with the initial startup of our business. Further, there are no assurances that we will be successful in realizing revenues or in achieving or sustaining positive cash flow at any time in the future. Any such failure could result in the possible closure of our business or force us to seek additional capital through loans or additional sales of our equity securities to continue business operations, which would dilute the value of any shares. 2. IF OUR BUSINESS PLAN IS NOT SUCCESSFUL, WE MAY NOT BE ABLE TO CONTINUE OPERATIONS AS A GOING CONCERN AND OUR STOCKHOLDERS MAY LOSE THEIR ENTIRE INVESTMENT IN US. As discussed in the Notes to Financial Statements included in this annual report, at August 31, 2008 we had working capital of approximately $1,200 and stockholders' equity of approximately $1,200. In addition, we had a net loss of approximately (15,222) for the period August 23, 2006 (inception) to August 31, 2008. 9 These factors raise substantial doubt that we will be able to continue operations as a going concern, and our independent auditors included an explanatory paragraph regarding this uncertainty in their report on our financial statements for the period August 23, 2006 (inception) to August 31, 2008. Our ability to continue as a going concern is dependent upon our generating cash flow sufficient to fund operations and reducing operating expenses. Our business plans may not be successful in addressing these issues. If we cannot continue as a going concern, our stockholders may lose their entire investment in us. 3. WE EXPECT LOSSES IN THE FUTURE BECAUSE WE HAVE NO REVENUE. We have not generated any revenues , we are expect losses over the next twelve (12) months since we have no revenues to offset the expenses associated in executing our business plan. We cannot guarantee that we will ever be successful in generating revenues in the future. We recognize that if we are unable to generate revenues, we will not be able to earn profits or continue operations as a going concern. There is no history upon which to base any assumption as to the likelihood that we will prove successful, and we can provide investors with no assurance that we will generate any operating revenues or ever achieve profitable operations. 4. SINCE OUR OFFICER WORKS OR CONSULTS FOR OTHER COMPANIES, HER OTHER ACTIVITIES COULD SLOW DOWN OUR OPERATIONS. Dana Washington, our sole officer, does not work for us exclusively and does not devote all of her time to our operations. Therefore, it is possible that a conflict of interest with regard to her time may arise based on her employment in other activities. Her other activities will prevent her from devoting full-time to our operations which could slow our operations and may reduce our financial results because of the slow down in operations. Dana Washington, the President and Director of the company, currently devotes approximately 5-10 hours per week to company matters. She has no prior experience serving as a principal accounting officer or principal financial officer in a public company. We have not formulated a plan to resolve any possible conflict of interest with her other business activities. Ms. Washington intends to limit her role in her other business activities and devote more of her time to Reshoot & Edit after we attain a sufficient level of revenue and are able to provide sufficient officers' salaries per our business plan. In the event she is unable to fulfill any aspect of her duties to the company we may experience a shortfall or complete lack of sales resulting in little or no profits and eventual closure of the business. 10 5. OUR SOLE OFFICER, DANA WASHINGTON, HAS NO EXPERIENCE IN OPERATING A FULLY REPORTING COMPANY, AND HAS NO EXPERIENCE IN PURCHASING TELEVISION/MOVIE SCREENPLAYS. Our sole executive officer has no experience in operating a fully reporting company, and has no experience in purchasing television/movie screenplays. Due to her lack of experience, our executive officer may make wrong decisions and choices regarding selection of scripts to purchase on behalf of the Company. Consequently, our Company may suffer irreparable harm due to management's lack of experience in this industry. As a result we may have to suspend or cease operations which will result in the loss of your investment. 6. IF WE ARE UNABLE TO OBTAIN ADDITIONAL FUNDING, OUR BUSINESS OPERATIONS WILL BE HARMED. EVEN IF WE DO OBTAIN ADDITIONAL FINANCING OUR THEN EXISTING SHAREHOLDERS MAY SUFFER SUBSTANTIAL DILUTION. We will require additional funds to obtain the resources to purchase or obtain options to purchase television and movie scripts, develop and implement a marketing and sales program and address all necessary infrastructure concerns. We anticipate that we will require up to approximately $200,000 to fund our continued operations. Such funds may come from the sale of equity and/or debt securities and/or loans. It is possible that additional capital will be required to effectively support the operations and to otherwise implement our overall business strategy. The inability to raise the required capital will restrict our ability to grow and may reduce our ability to continue to conduct business operations. If we are unable to obtain necessary financing, we will likely be required to curtail our development plans which could cause the company to become dormant. Any additional equity financing may involve substantial dilution to our then existing shareholders. 7. WE MAY NOT BE ABLE TO RAISE SUFFICIENT CAPITAL OR GENERATE ADEQUATE REVENUE TO MEET OUR OBLIGATIONS AND FUND OUR OPERATING EXPENSES. Failure to raise adequate capital and generate adequate sales revenues to meet our obligations and develop and sustain our operations could result in reducing or ceasing our operations. Additionally, even if we do raise sufficient capital and generate revenues to support our operating expenses, there can be no assurances that the revenue will be sufficient to enable us to develop business to a level where it will generate profits and cash flows from operations. These matters raise substantial doubt about our ability to continue as a going concern. Our independent auditors currently included an explanatory paragraph in their report on our financial statements regarding concerns about our ability to continue as a going concern. 11 8. WE MAY NOT BE ABLE TO COMPETE WITH MOVIE PRODUCERS AND SCRIPT AGENTS, SOME OF WHOM HAVE GREATER RESOURCES AND EXPERIENCE THAN WE DO. The purchase of movie and television scripts is highly competitive, and subject to rapid change. We do not have the resources to compete with movie producers and script agents. With the minimal resources we have available, the selection of scripts we could purchase or obtain an option to purchase becomes very limited. Competition by existing and future competitors could result in our inability to secure any movie or television scripts that are marketable for resale. This competition from other entities with greater resources and reputations may result in our failure to maintain or expand our business as we may never be able to successfully execute our business plan. Further, Reshoot & Edit cannot be assured that it will be able to compete successfully against present or future competitors or that the competitive pressure it may face will not force it to cease operations. 9. OUR PRINCIPAL STOCKHOLDERS, OFFICERS AND DIRECTORS OWN A CONTROLLING INTEREST IN OUR VOTING STOCK AND INVESTORS WILL NOT HAVE ANY VOICE IN OUR MANAGEMENT, WHICH COULD RESULT IN DECISIONS ADVERSE TO OUR GENERAL SHAREHOLDERS. Our officer and our principal stockholder, in the aggregate, beneficially own approximately or have the right to vote approximately 86% of our outstanding common stock. As a result, these two stockholders, acting together, will have the ability to control substantially all matters submitted to our stockholders for approval including: a) election of our board of directors; b) removal of any of our directors; c) amendment of our Articles of Incorporation or bylaws; and d) adoption of measures that could delay or prevent a change in control or impede a merger, takeover or other business combination involving us. As a result of their ownership and positions, these two individuals have the ability to influence all matters requiring shareholder approval, including the election of directors and approval of significant corporate transactions. In addition, the future prospect of sales of significant amounts of shares held by our director and executive officer could affect the market price of our common stock if the marketplace does not orderly adjust to the increase in shares in the market and the value of your investment in the company may decrease. Management's stock ownership may discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of us, which in turn could reduce our stock price or prevent our stockholders from realizing a premium over our stock price. 12 Risks Relating To Our Common Shares ----------------------------------- 10. WE MAY, IN THE FUTURE, ISSUE ADDITIONAL COMMON SHARES, WHICH WOULD REDUCE INVESTORS' PERCENT OF OWNERSHIP AND MAY DILUTE OUR SHARE VALUE. Our Articles of Incorporation authorize the issuance of 70,000,000 shares of common stock and 5,000,000 preferred shares. The future issuance of common stock may result in substantial dilution in the percentage of our common stock held by our then existing shareholders. We may value any common stock issued in the future on an arbitrary basis. The issuance of common stock for future services or acquisitions or other corporate actions may have the effect of diluting the value of the shares held by our investors, and might have an adverse effect on any trading market for our common stock. 11. OUR COMMON SHARES ARE SUBJECT TO THE "PENNY STOCK" RULES OF THE SEC AND THE TRADING MARKET IN OUR SECURITIES IS LIMITED, WHICH MAKES TRANSACTIONS IN OUR STOCK CUMBERSOME AND MAY REDUCE THE VALUE OF AN INVESTMENT IN OUR STOCK. The Securities and Exchange Commission has adopted Rule 15g-9 which establishes the definition of a "penny stock," for the purposes relevant to us, as any equity security that has a market price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless exempt, the rules require: (a) that a broker or dealer approve a person's account for transactions in penny stocks; and (b) the broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and quantity of the penny stock to be purchased. In order to approve a person's account for transactions in penny stocks, the broker or dealer must: (a) obtain financial information and investment experience objectives of the person; and (b) make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks. The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the Commission relating to the penny stock market, which, in highlight form: (a) sets forth the basis on which the broker or dealer made the suitability determination; and (b) that the broker or dealer received a signed, written agreement from the investor prior to the transaction. Generally, brokers may be less willing to execute transactions in securities subject to the "penny stock" rules. This may make it more difficult for investors to dispose of our Common shares and cause a decline in the market value of our stock. 13 Disclosure also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading and about the commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and the rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements have to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks. 12. THERE IS BEEN NO TRADING MARKET OF OUR SECURITIES AND IF A TRADING MARKET DOES NOT DEVELOP, PURCHASERS OF OUR SECURITIES MAY HAVE DIFFICULTY SELLING THEIR SHARES. Our Common Stock is currently quoted on the OTC-Bulletin Board. Since we became listed on the OTC-Bulletin Board, no stock has traded as of November 4, 2008. There can be no assurance a meaningful trading market will develop. Reshoot & Edit makes no representation about the value of its Common Stock. The Company's common stock could be subject to wide fluctuations in response to variations in quarterly results of operations, announcements of technological innovations or new solutions by the Company or its competitors, general conditions in industry, and other events or factors, many of which are beyond the Company's control. In addition, the stock market has experienced price and volume fluctuations, which have affected the market price for many companies in industries similar or related to that of the Company, which have been unrelated to the operating performance of these companies. These market fluctuations may have a material adverse eject on the market price of the Company's common stock and investors may have difficulty selling their shares. 13. BECAUSE WE DO NOT INTEND TO PAY ANY CASH DIVIDENDS ON OUR COMMON STOCK, OUR STOCKHOLDERS WILL NOT BE ABLE TO RECEIVE A RETURN ON THEIR SHARES UNLESS THEY SELL THEM. We intend to retain any future earnings to finance the development and expansion of our business. We do not anticipate paying any cash dividends on our common stock in the foreseeable future. Unless we pay dividends, our stockholders will not be able to receive a return on their shares unless they sell them. There is no assurance that stockholders will be able to sell shares when desired. 14 14. WE MAY ISSUE SHARES OF PREFERRED STOCK IN THE FUTURE THAT MAY ADVERSELY IMPACT YOUR RIGHTS AS HOLDERS OF OUR COMMON STOCK. Our articles of incorporation authorize us to issue up to 5,000,000 shares of "blank check" preferred stock. Accordingly, our board of directors will have the authority to fix and determine the relative rights and preferences of preferred shares, as well as the authority to issue such shares, without further stockholder approval. As a result, our board of directors could authorize the issuance of a series of preferred stock that would grant to holders preferred rights to our assets upon liquidation, the right to receive dividends before dividends are declared to holders of our common stock, and the right to the redemption of such preferred shares, together with a premium, prior to the redemption of the common stock. To the extent that we do issue such additional shares of preferred stock, your rights as holders of common stock could be impaired thereby, including, without limitation, dilution of your ownership interests in us. In addition, shares of preferred stock could be issued with terms calculated to delay or prevent a change in control or make removal of management more difficult, which may not be in your interest as holders of common stock. Item 1B. Unresolved Staff Comments. Not applicable. Item 2. Properties. Our corporate headquarters are located at 10685 Oak Crest Avenue, Las Vegas, Nevada 89144. We believe our current office space is adequate for our immediate needs; however, as our operations expand, we may need to locate and secure additional office space. Item 3. Legal Proceedings. From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are not presently a party to any material litigation, nor to the knowledge of management is any litigation threatened against us, which may materially affect us. Item 4. Submission of Matters to a Vote of Security Holders. We did not submit any matters to a vote of our security holders during the past fiscal year. 15 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. (a) Market Information Reshoot & Edit Common Stock, $0.001 par value, is traded on the OTC- Bulletin Board under the symbol: RSOO. The stock was cleared for trading on the OTC-Bulletin Board on October 16, 2007. Since the Company has been cleared for trading, through October 16, 2007, there have been no activity of the Company's stock. There are no assurances that a market will ever develop for the Company's stock. (b) Holders of Common Stock As of November 4, 2008, there were approximately forty-one (41) holders of record of our Common Stock and 9,200,000 shares outstanding. (c) Dividends In the future we intend to follow a policy of retaining earnings, if any, to finance the growth of the business and do not anticipate paying any cash dividends in the foreseeable future. The declaration and payment of future dividends on the Common Stock will be the sole discretion of board of directors and will depend on our profitability and financial condition, capital requirements, statutory and contractual restrictions, future prospects and other factors deemed relevant. On or about January 30, 2008, record shareholders of Reshoot & Edit common stock were entitled to receive a special stock dividend of Reshoot Production Company, a Nevada corporation, a wholly owned subsidiary of Reshoot & Edit. This subsidiary acquired the interests in and rights to an unpublished script for the purpose of producing a motion picture. This spin off will allow both companies to focus on their different business plans and not compete in accessing funding in capital markets. Record shareholders received one (1) common share, par value $0.001, of Reshoot Production Company common stock for every share of Reshoot & Edit common stock owned. The Reshoot Production Company stock dividend was based on 9,200,000 shares of Reshoot & Edit common stock that were issued and outstanding as of the record date. Reshoot & Edit retained no ownership in Reshoot Production Company following the issuance of the stock dividend. Further, Reshoot Production Company is longer a subsidiary of Reshoot & Edit and both companies have different management. 16 (d) Securities Authorized for Issuance under Equity Compensation Plans There are no outstanding grants or rights or any equity compensation plan in place. Recent Sales of Unregistered Securities On August 23, 2006 (inception), we issued 400,000, par value $0.001 common shares of stock for cash to Dana Washington, who is our President, Chief Executive Officer, Chief Financial Officer, Secretary and Director. On August 31, 2005 we conducted a private placement without any general solicitation or advertisement. The shares were issued in reliance upon an exemption from registration under Section 4(2) of the Securities Act and/or Rule 506 of Regulation D promulgated thereunder as a transaction not involving a public offering. We filed a Form D with the SEC on our about August 31, 2006. The four investors purchased 8,000,000, par value $0.001 common shares, for cash. The Company filed a registration statement on Form SB-2 with the U. S. Securities and Exchange Commission. The registration was deemed effective on January 31, 2007. The Company coordinated the registration with the Securities Division of State of Nevada. The Company offered up to a maximum of 800,000 shares of its $0.001 par value common stock at a price of $0.01 per share pursuant to a self-underwritten offering. When the offering was closed on July 17, 2007, the maximum number (800,000 shares) were sold by the Company to thirty-six (36) investors in conjunction with the registered offering for an aggregate of $8,000.00. There have been no other issuances of common or preferred stock. Issuer Purchases of Equity Securities We did not repurchase any of our equity securities during the years ended August 31, 2008 or 2007. Item 6. Selected Financial Data. Not applicable. 17 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. Overview of Current Operations ------------------------------ Reshoot & Edit ("the Company") was incorporated under the laws of the State of Nevada on August 23, 2006, under the name Reshoot & Edit Reshoot & Edit is focused on becoming a depository of television and movie scripts for resale. Our Business ------------ Reshoot & Edit is a developmental stage start-up company that has not generated any revenues and has no inventory of any movie/television scripts. The Company's goal is to purchase or obtain options to purchase television and movie scripts, develop and implement a marketing and sales program to sell these television/movie scripts and address all necessary infrastructure concerns. Reshoot & Edit is attempting to purchase screenplays through either 1) an outright purchase of the script or 2) an option to purchase the script. Few screenwriters sell their screenplays in upper 6 figures. A more realistic purchase price for new screenwriters will be in the mid-5 figure range. After a screenwriter sells a screenplay, they gain added credibility and their saleability increases. It is when a screenwriter sells a screenplay for the second and third time, they can then expect to sell their screenplays for higher figures. Reshoot & Edit hopes to identify, find and purchase screenplays from new writers, who are not known at this time. 18 Results of Operations for the year ended August 31, 2008 -------------------------------------------------------- We earned no revenues since our inception on August 23, 2006 through August 31, 2008. We do not anticipate earning any significant revenues until such time as we can move our business plan forward. We are presently in the development stage of our business and we can provide no assurance that we will be successful in finding and acquiring television and movie scripts. For the period inception through August 31, 2008, we generated no income. Since our inception on August 23, 2006 through August 31, 2008, we experienced a net loss of (15,222). Our loss was attributed to organizational expenses, audit and legal fees. We anticipate our operating expenses will increase as we enhance our operations. The increase will be attributed to professional fees to be incurred in connection with the fully reporting requirements with the U. S. Securities Exchange Commission under the Securities Act of 1933. We anticipate our ongoing operating expenses will also increase once we become a reporting company under the Securities Exchange Act of 1934. Revenues -------- We generated no revenues for the period from August 23, 2006 (inception) through August 31, 2008. We do not anticipate generating any revenues for at least 24 months. Going Concern ------------- Our independent auditors included an explanatory paragraph in their report on the accompanying financial statements regarding concerns about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors. 19 Summary of any product research and development that we will perform for the term of our plan of operation. ---------------------------------------------------------------------------- We do not anticipate performing any additional significant product research and development under our current plan of operation. Expected purchase or sale of plant and significant equipment ------------------------------------------------------------ We do not anticipate the purchase or sale of any plant or significant equipment; as such items are not required by us at this time. Significant changes in the number of employees ---------------------------------------------- As of August 31, 2008, we did not have any employees. We are dependent upon our sole officer and a director for our future business development. As our operations expand we anticipate the need to hire additional employees, consultants and professionals; however, the exact number is not quantifiable at this time. Liquidity and Capital Resources ------------------------------- Our balance sheet as of August 31, 2008 reflects $4,100 assets and $2,900 liabilities. Cash and cash equivalents from inception to date have been sufficient to provide the operating capital necessary to operate to date. Notwithstanding, we anticipate generating losses and therefore we may be unable to continue operations in the future. We anticipate we will require additional capital up to approximately $200,000 and we would have to issue debt or equity or enter into a strategic arrangement with a third party. There can be no assurance that additional capital will be available to us. We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources. 20 Our sole officer/director has agreed to donate funds to the operations of the Company, in order to keep it fully reporting for the next twelve (12) months, without seeking reimbursement for funds donated. As a result of the Company's current limited available cash, no officer or director received cash compensation during the year ended August 31, 2008. The Company has no employment agreements in place with its officers. Off-Balance Sheet Arrangements ------------------------------ We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results or operations, liquidity, capital expenditures or capital resources that is material to investors. Critical Accounting Policies and Estimates ------------------------------------------ Revenue Recognition: We recognize revenue from product sales once all of the following criteria for revenue recognition have been met: pervasive evidence that an agreement exists; the services have been rendered; the fee is fixed and determinable and not subject to refund or adjustment; and collection of the amount due is reasonable assured. New Accounting Standards ------------------------ In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements, ("SFAS 157"). SFAS 157 provides a framework for measuring fair value when such measurements are used for accounting purposes. The framework focuses on an exit price in the principal (or, alternatively, the most advantageous) market accessible in an orderly transaction between willing market participants. SFAS 157 establishes a three-tiered fair value hierarchy with Level 1 representing quoted prices for identical assets or liabilities in an active market and Level 3 representing estimated values based on unobservable inputs. Under SFAS 157, related disclosures are segregated for assets and liabilities measured at fair value based on the level used within the hierarchy to determine their fair values. We anticipate adopting SFAS 157 on its effective date of January 1, 2008 and the financial impact, if any, upon adoption has not yet been determined. 21 In February 2007, the FASB issued Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities, including an amendment of FASB Statement No. 115, ("SFAS 159"). SFAS 159 permits fair value accounting to be irrevocably elected for certain financial assets and liabilities on an individual contract basis at the time of acquisition or at a remeasurement event date. Upon adoption of SFAS 159, fair value accounting may also be elected for existing financial assets and liabilities. For those instruments for which fair value accounting is elected, changes in fair value will be recognized in earnings and fees and costs associated with origination or acquisition will be recognized as incurred rather than deferred. SFAS 159 is effective January 1, 2008, with early adoption permitted as of January 1, 2007. We anticipate adopting SFAS 159 concurrent with the adoption of SFAS 157 on January 1, 2008, but have not yet determined the financial impact, if any, upon adoption. Item 7A. Quantitative and Qualitative Disclosures about Market Risk. Not applicable. Item 8. Financial Statements and Supplementary Data. Index to Financial Statements Financial Statement ------------------- PAGE ---- Independent Auditors' Report F-1 Balance Sheet F-2 Statements of Operations F-3 Statements of Changes in Stockholders' Equity F-4 Statements of Cash Flows F-5 Notes to Financials F-6
22 MOORE & ASSOCIATES, CHARTERED ACCOUNTANTS AND ADVISORS ------------------------ PCAOB REGISTERED REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ------------------------------------------------------- To the Board of Directors Reshoot & Edit (A Development Stage Company) We have audited the accompanying balance sheets of Reshoot & Edit (A Development Stage Company) as of August 31, 2008 and August 31, 2007, and the related statements of operations, stockholders' equity and cash flows for the years ended August 31, 2008 and August 31, 2007 and since inception on August 23, 2006 through August 31, 2008. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conduct our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Reshoot & Edit (A Development Stage Company) as of August 31, 2008 and August 31, 2007, and the related statements of operations, stockholders' equity and cash flows for the years ended August 31, 2008 and August 31, 2007 and since inception on August 23, 2006 through August 31, 2008, in conformity with accounting principles generally accepted in the United States of America. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has no current source of revenue, and has had limited operations, which raises substantial doubt about its ability to continue as a going concern. Management's plans concerning these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. /s/ Moore & Associates, Chartered --------------------------------- Moore & Associates, Chartered Las Vegas, Nevada September 30, 2008 2675 S. Jones Blvd. Suite 109, Las Vegas, NV 89146 (702) 253-7499 Fax (702) 253-7501 F-1 Reshoot & Edit (A development stage company) Balance Sheets
Balance Sheets August 31, August 31, 2008 2007 ----------- ----------- ASSETS Current Assets: Cash $ - $ 1,202 Funds held in escrow 4,100 8,000 ----------- ----------- Total current assets 4,100 9,202 ----------- ----------- TOTAL ASSETS $ 4,100 $ 9,202 =========== =========== Liabilities and Stockholder's Equity Current Liabilities: Accounts payable 2,900 - ----------- ----------- Total liabilities 2,900 - ----------- ----------- Stockholder's Equity: Series A preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued or outstanding - - Series B preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued or outstanding - - Series C preferred stock, $0.001 par value, 1,000,000 shares authorized, no shares issued or outstanding - - Common stock, $0.001 par value, 70,000,000 shares authorized, 9,200,000, 9,200,000 shares issued and outstanding as of 8/31/2008 and 8/31/2007, respectively 9,200 9,200 Additional paid-in capital 7,222 7,200 (Deficit) accumulated during development stage (15,222) (7,198) ----------- ----------- Total stockholders' equity 1,200 9,202 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,100 $ 9,202 =========== ===========
The accompanying notes are an integral part of these financial statements. F-2 Reshoot & Edit (A development stage company) Statements of Operations
Statements of Operations For the years From ended August 23, 2006 ---------------------- (Inception) to August 31, August 31, August 31, 2008 2007 2008 ---------- ---------- ------------ Revenue $ - $ - $ - ---------- ---------- ------------ Expenses: General and administrative expenses 8,024 6,798 15,222 ---------- ---------- ------------ Total expenses 8,024 6,798 15,222 ---------- ---------- ------------ Net loss before income taxes (8,024) (6,798) (15,222) Income tax expense - - - ---------- ---------- ------------ Net income (loss) $ (8,024) $ (6,798) $ (15,222) ========== ========== ============ Net (loss) per share - basic and fully diluted $ (0.00) $ (0.00) ========== ========== Weighted average number of common shares outstanding- basic and fully diluted 9,200,000 8,523,077 ========== ==========
The accompanying notes are an integral part of these financial statements. F-3 Reshoot & Edit (A development stage company) Statements of Stockholders' Equity
Statements of Stockholders' Equity Deficit Accumulated Additional During the Total Common Stock Paid-In Development Stockholders' Shares Amount Capital Stage Equity ---------- ------- --------- ----------- ------------- Founders initial investment, 8/23/2006 $0.001 per share 400,000 $ 400 $ - $ - $ 400 Common stock issued for cash at $0.001 per share, 506 offering 8,000,000 8,000 - - 8,000 Net (loss) for the year ended August 31, 2006 - - - (400) (400) ---------- ------- --------- ----------- ------------- Balance, August 31, 2006 8,400,000 8,400 - (400) 8,000 Sale of common stock for cash at $0.01 per share, July, 2007 800,000 800 7,200 8,000 Net (loss) for the year ended August 31, 2007 (6,798) (6,798) ---------- ------- --------- ----------- ------------- Balance, August 31, 2007 9,200,000 9,200 7,200 (7,198) 9,202 Contributed capital 22 22 Net (loss) for the year ended August 31, 2008 (8,024) (8,024) ---------- ------- --------- ----------- ------------- Balance, August 31, 2008 9,200,000 9,200 7,222 (15,222) 1,200 ========== ======= ========= =========== =============
The accompanying notes are an integral part of these financial statements. F-4 Reshoot & Edit (A development stage company) Statements of Cash Flows
Statements of Cash Flows For the years From ended August 23, 2006 ---------------------- (Inception) to August 31, August 31, August 31, 2008 2007 2008 ---------- ---------- ------------ Operating activities: Net income (loss) $ (8,024) $ (6,798) $ (15,222) Adjustments to reconcile net loss to net cash used by operating activities Increase in accounts payable 2,900 - 2,900 ---------- ---------- ------------ Net cash (used) from operating activities (5,124) (6,798) (12,322) Financing activities: Issuances of common stock - 8,000 16,400 Contributed capital 22 - 22 ---------- ---------- ------------ Net cash provided by financing activities 22 8,000 16,422 Net increase (decrease) in cash (5,102) 1,202 4,100 Cash and equivalents - beginning 9,202 8,000 - ---------- ---------- ------------ Cash and equivalents - ending $ 4,100 $ 9,202 $ 4,100 ========== ========== ============ Supplemental disclosures: Interest paid $ - $ - $ - ========== ========== ============ Income taxes paid $ - $ - $ - ========== ========== ============ Non-cash transactions $ - $ - $ - ========== ========== ============
The accompanying notes are an integral part of these financial statements. F-5 Reshoot & Edit (A Development Stage Company) Notes to Financial Statements August 31, 2008 NOTE 1. GENERAL ORGANIZATION AND BUSINESS Reshoot & Edit (the Company) was incorporated under the Laws of the state of Nevada on August 23, 2006. The Company has minimal operations and in accordance with SFAS #7, the Company is considered a development stage company. The Company plans to purchase television and movie scripts for resale, and also purchase options for the same. NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES The Company has cash assets of $4,100 and liabilities of $2,900 as of August 31, 2008. The relevant accounting policies are listed below. Basis of Accounting ------------------- The basis is United States generally accepted accounting principles. Earnings per Share ------------------ The basic earnings (loss) per share is calculated by dividing the Company's net income (loss) available to common shareholders by the weighted average number of common shares during the year. The diluted earnings (loss) per share is calculated by dividing the Company's net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted as of the first of the year for any potentially dilutive debt or equity. The Company has not issued any options or warrants or similar securities since inception. Dividends --------- The Company has not yet adopted any policy regarding payment of dividends. No Dividends have been paid during the period shown. Income Taxes ------------ The provision for income taxes is the total of the current taxes payable and the net of the change in the deferred income taxes. Provision is made for the deferred income taxes where differences exist between the period in which transactions affect current taxable income and the period in which they enter into the determination of net income in the financial statements. F-6 Reshoot & Edit (A Development Stage Company) Notes to Financial Statements August 31, 2008 NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES-CONTINUED Year-end -------- The Company has selected August 31 as its year-end. Advertising ----------- Advertising is expensed when incurred. There has been no advertising during the period. 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 the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. NOTE 3. GOING CONCERN The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. However the Company has no current source of revenue, and has had limited operations. Without realization of additional capital, it would be unlikely for the Company to continue as a going concern. It is management's plan to complete and execute a business plan in order to supply the needed cash flow. NOTE 4. STOCKHOLDERS' EQUITY The Company is authorized to issue up to 70,000,000 shares of common stock, par value $0.001 and up to 5,000,000 preferred shares, par value $0.001. Preferred Stock --------------- There have been no issuances of preferred stock. F-7 Reshoot & Edit (A Development Stage Company) Notes to Financial Statements August 31, 2008 NOTE 4. STOCKHOLDERS' EQUITY - CONTINUED Common Stock ------------ On August 23, 2006 (inception), the Company issued 400,000 shares of its $0.001 par value common stock to its sole officer and director for $400. On August 31, 2006, the Company issued 8,000,000 shares of its $0.001 par value common stock pursuant to a regulation 506 offering. The Company filed a registration statement on Form SB-2 with the U. S. Securities and Exchange Commission. The registration was deemed effective on January 31, 2007. The Company coordinated the registration with the Securities Division of State of Nevada. The Company offered up to a maximum of 800,000 shares of its $0.001 par value common stock at a price of $0.01 per share pursuant to a self-underwritten offering. When the offering was closed on July 17, 2007, the maximum number (800,000 shares) were sold by the Company to thirty-six (36) investors in conjunction with the registered offering for an aggregate of $8,000.00. There have been no other issuances of common or preferred stock. NOTE 5. RELATED PARTY TRANSACTIONS The officer and director of the Company is involved in other business activities. This person may face a conflict in selecting between the Company and their other business interests. The Company has not formulated a policy for the resolution of such conflicts. NOTE 6. PROVISION FOR INCOME TAXES The Company accounts for income taxes under Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" ("SFAS No. 109"), which requires use of the liability method. SFAS No. 109 provides that deferred tax assets and liabilities are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, referred to as temporary differences. Deferred tax assets and liabilities at the end of each period are determined using the currently enacted tax rates applied to taxable income in the periods in which the deferred tax assets and liabilities are expected to be settled or realized. F-8 Reshoot & Edit (A Development Stage Company) Notes to Financial Statements August 31, 2008 NOTE 6. PROVISION FOR INCOME TAXES - CONTINUED The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences are as follows: U.S federal statutory rate (34.0%) Valuation reserve 34.0% ------ Total -% NOTE 7. REVENUE AND EXPENSES Revenue recognition ------------------- The Company recognizes revenue on an accrual basis as it invoices for services. Revenue is generally realized or realizable and earned when all of the following criteria are met: 1) persuasive evidence of an arrangement exists between the Company and our customer(s); 2) services have been rendered; 3) our price to our customer is fixed or determinable; and 4) collectibility is reasonably assured. For the period from August 23, 2006 (inception) to August 31, 2008, the Company has not recognized any revenues. NOTE 8. OPERATING LEASES AND OTHER COMMITMENTS: The Company also has no assets or lease obligations. F-9 Reshoot & Edit (A Development Stage Company) Notes to Financial Statements August 31, 2008 NOTE 9 RECENT ACCOUNTING PRONOUNCEMENTS In May 2008, the Financial Accounting Standards Board ("FASB") issued SFAS No. 163, "Accounting for Financial Guarantee Insurance Contracts-and interpretation of FASB Statement No. 60". SFAS No. 163 clarifies how Statement 60 applies to financial guarantee insurance contracts, including the recognition and measurement of premium revenue and claims liabilities. This statement also requires expanded disclosures about financial guarantee insurance contracts. SFAS No. 163 is effective for fiscal years beginning on or after December 15, 2008, and interim periods within those years. SFAS No. 163 has no effect on the Company's financial position, statements of operations, or cash flows at this time. In May 2008, the Financial Accounting Standards Board ("FASB") issued SFAS No. 162, "The Hierarchy of Generally Accepted Accounting Principles". SFAS No. 162 sets forth the level of authority to a given accounting pronouncement or document by category. Where there might be conflicting guidance between two categories, the more authoritative category will prevail. SFAS No. 162 will become effective 60 days after the SEC approves the PCAOB's amendments to AU Section 411 of the AICPA Professional Standards. SFAS No. 162 has no effect on the Company's financial position, statements of operations, or cash flows at this time. In March 2008, the Financial Accounting Standards Board, or FASB, issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities-an amendment of FASB Statement No. 133. This standard requires companies to provide enhanced disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under Statement 133 and its related interpretations, and (c) how derivative instruments and related hedged items affect an entity's financial position, financial performance, and cash flows. This Statement is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. The Company has not yet adopted the provisions of SFAS No. 161, but does not expect it to have a material impact on its consolidated financial position, results of operations or cash flows. In December 2007, the SEC issued Staff Accounting Bulletin (SAB) No. 110 regarding the use of a "simplified" method, as discussed in SAB No. 107 (SAB 107), in developing an estimate of expected term of "plain vanilla" share options in accordance with SFAS No. 123 (R), Share-Based Payment. In particular, the staff indicated in SAB 107 that it will accept a company's F-10 Reshoot & Edit (A Development Stage Company) Notes to Financial Statements August 31, 2008 NOTE 9 RECENT ACCOUNTING PRONOUNCEMENTS - CONTINUED election to use the simplified method, regardless of whether the company has sufficient information to make more refined estimates of expected term. At the time SAB 107 was issued, the staff believed that more detailed external information about employee exercise behavior (e.g., employee exercise patterns by industry and/or other categories of companies) would, over time, become readily available to companies. Therefore, the staff stated in SAB 107 that it would not expect a company to use the simplified method for share option grants after December 31, 2007. The staff understands that such detailed information about employee exercise behavior may not be widely available by December 31, 2007. Accordingly, the staff will continue to accept, under certain circumstances, the use of the simplified method beyond December 31, 2007. The Company currently uses the simplified method for "plain vanilla" share options and warrants, and will assess the impact of SAB 110 for fiscal year 2009. It is not believed that this will have an impact on the Company's consolidated financial position, results of operations or cash flows. In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements-an amendment of ARB No. 51. This statement amends ARB 51 to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. Before this statement was issued, limited guidance existed for reporting noncontrolling interests. As a result, considerable diversity in practice existed. So-called minority interests were reported in the consolidated statement of financial position as liabilities or in the mezzanine section between liabilities and equity. This statement improves comparability by eliminating that diversity. This statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008 (that is, January 1, 2009, for entities with calendar year-ends). Earlier adoption is prohibited. The effective date of this statement is the same as that of the related Statement 141 (revised 2007). The Company will adopt this Statement beginning March 1, 2009. It is not believed that this will have an impact on the Company's consolidated financial position, results of operations or cash flows. F-11 Reshoot & Edit (A Development Stage Company) Notes to Financial Statements August 31, 2008 NOTE 9 RECENT ACCOUNTING PRONOUNCEMENTS - CONTINUED In December 2007, the FASB, issued FAS No. 141 (revised 2007), Business Combinations.'This Statement replaces FASB Statement No. 141, Business Combinations, but retains the fundamental requirements in Statement 141. This Statement establishes principles and requirements for how the acquirer: (a) recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree; (b) recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase; and (c) determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. This statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. An entity may not apply it before that date. The effective date of this statement is the same as that of the related FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements. The Company will adopt this statement beginning March 1, 2009. It is not believed that this will have an impact on the Company's consolidated financial position, results of operations or cash flows. In February 2007, the FASB, issued SFAS No. 159, The Fair Value Option for Financial Assets and Liabilities-Including an Amendment of FASB Statement No. 115. This standard permits an entity to choose to measure many financial instruments and certain other items at fair value. This option is available to all entities. Most of the provisions in FAS 159 are elective; however, an amendment to FAS 115 Accounting for Certain Investments in Debt and Equity Securities applies to all entities with available for sale or trading securities. Some requirements apply differently to entities that do not report net income. SFAS No. 159 is effective as of the beginning of an entities first fiscal year that begins after November 15, 2007. Early adoption is permitted as of the beginning of the previous fiscal year provided that the entity makes that choice in the first 120 days of that fiscal year and also elects to apply the provisions of SFAS No. 157 Fair Value Measurements. The Company will adopt SFAS No. 159 beginning March 1, 2008 and is currently evaluating the potential impact the adoption of this pronouncement will have on its consolidated financial statements. In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements This statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. This statement applies under other accounting pronouncements that require or permit fair value measurements, the Board having previously concluded in those accounting pronouncements that fair value is the relevant measurement attribute. Accordingly, this statement does not require any new fair value measurements. However, for some entities, the application of this statement will change current practice. This statement is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Earlier application is encouraged, provided that the reporting entity has not yet issued financial statements for that fiscal year, including financial statements for an interim period within that fiscal year. The Company will adopt this statement March 1, 2008, and it is not believed that this will have an impact on the Company's consolidated financial position, results of operations or cash flows. F-12 Item 9. Changes in and Disagreements With Accountants On Accounting and Financial Disclosure. None. Item 9A(T). Controls and Procedures. Evaluation of disclosure controls and procedures ------------------------------------------------ Management is responsible for establishing and maintaining adequate internal control over financial reporting and for the assessment of the effectiveness of those internal controls. As defined by the SEC, internal control over financial reporting is a process designed by our principal executive officer/principal financial officer, who is also the sole member of our Board of Directors, to provide reasonable assurance regarding the reliability of financial reporting and the reparation of the financial statements in accordance with U. S. generally accepted accounting principles. As of the end of the period covered by this report, we initially carried out an evaluation, under the supervision and with the participation of our chief executive officer (who is also our principal financial and accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our chief executive officer and chief financial officer initially concluded that our disclosure controls and procedures were not effective. Management's Report On Internal Control Over Financial Reporting ---------------------------------------------------------------- Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the company's principal executive and principal financial officers and effected by the company's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that: - Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; 23 - Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and - Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Because of the inherent limitations of internal control, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk. As of August 31, 2008 management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control--Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") and SEC guidance on conducting such assessments. Based on that evaluation, they concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as more fully described below. This was due to deficiencies that existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses. The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (2) inadequate segregation of duties consistent with control objectives; and (3) ineffective controls over period end financial disclosure and reporting processes. The aforementioned material weaknesses were identified by our Chief Executive Officer in connection with the review of our financial statements as of August 31, 2008. 24 Management believes that the material weaknesses set forth in items (2) and (3) above did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods. This annual report does not include an attestation report of the Corporation's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Corporation's registered public accounting firm pursuant to temporary rules of the SEC that permit the Corporation to provide only the management's report in this annual report. Management's Remediation Initiatives ------------------------------------ In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we have initiated, or plan to initiate, the following series of measures: We will create a position to segregate duties consistent with control objectives and will increase our personnel resources and technical accounting expertise within the accounting function when funds are available to us. And, we plan to appoint one or more outside directors to our board of directors who shall be appointed to an audit committee resulting in a fully functioning audit committee who will undertake the oversight in the establishment and monitoring of required internal controls and procedures such as reviewing and approving estimates and assumptions made by management when funds are available to us. Management believes that the appointment of one or more outside directors, who shall be appointed to a fully functioning audit committee, will remedy the lack of a functioning audit committee and a lack of a majority of outside directors on our Board. We anticipate that these initiatives will be at least partially, if not fully, implemented by August 31, 2009. Additionally, we plan to test our updated controls and remediate our deficiencies by August 31, 2009. Changes in internal controls over financial reporting ----------------------------------------------------- There was no change in our internal controls over financial reporting that occurred during the period covered by this report, that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting. Item 9B. Other Information. None. 25 PART III Item 10. Directors, Executive Officers and Corporate Governance. The following table sets forth certain information regarding our current directors and executive officers. Our executive officers serve one-year terms. Name Age Positions and Offices Held --------------- --- -------------------------- Dana Washington 33 President, Chief Executive Officer, Chief Financial Officer, Secretary and Director The business address of our officer/director is c/o Reshoot & Edit, 10685 Oak Crest Avenue, Las Vegas, Nevada 89144 Dana Washington - Background ---------------------------- Dana Washington has over 9-years of experience in the media industry. In June 1997, Ms. Washington obtained her Bachelor of Arts Degree in Journalism at the University of Oregon in Eugene, Oregon. She served as a media and public relations intern for the Portland Power, an ABL professional women's basketball team. She then moved to Washington, D.C., where she served as a public relations intern for Proserv, who authors press releases for sporting events and clientele. In 1998, Ms. Washington interned with BET (Black Entertainment Television), and assisting in the promotion and development of their new restaurants, utilizing promotional concepts, fashion shows and celebrity guest appearances. Ms. Washington then worked for the Major League Baseball Players Association as an office manager, organizing events such as the Big League Challenge for a national television broadcast. In 2001, Ms. Washington began work with United Talent Agency of Beverly Hills, California working in both the motion picture talent and television literary departments. She assisted in client relations with well-known actors, directors and writers, coordinating and scheduling meetings. Ms. Washington then worked as a Writers Assistant to Gary Scott Thompson, Show Creator and Executive Producer for the television production "Las Vegas." From 2006-2007, Ms. Washington began worked with Future Stars of America as Program Manager. Ms. Washington was in charge of public relations in a program that worked with youth who are in foster care, helping them to transition into adulthood. 26 Section 16(a) Beneficial Ownership Reporting Compliance Section 16(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), requires our executive officers and directors, and persons who beneficially own more than ten percent of our common stock, to file initial reports of ownership and reports of changes in ownership with the SEC. Executive officers, directors and greater than ten percent beneficial owners are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file. Based upon a review of the copies of such forms furnished to us and written representations from our executive officers and directors, we believe that as of the date of this report they were not current in his 16(a) reports. Board of Directors Our board of directors currently consists of one member, Ms. Washington. Our director serves a one-year term. Audit Committee --------------- The company does not presently have an Audit Committee. The sole member of the Board sits as the Audit Committee. No qualified financial expert has been hired because the company is too small to afford such expense. Committees and Procedures ------------------------- (1) The registrant has no standing audit, nominating and compensation committees of the Board of Directors, or committees performing similar functions. The Board acts itself in lieu of committees due to its small size. (2) The view of the board of directors is that it is appropriate for the registrant not to have such a committee because its directors participate in the consideration of director nominees and the board and the company are so small. (3) The members of the Board who acts as nominating committee is not independent, pursuant to the definition of independence of a national securities exchange registered pursuant to section 6(a) of the Act (15 U.S.C. 78f(a). (4) The nominating committee has no policy with regard to the consideration of any director candidates recommended by security holders, but the committee will consider director candidates recommended by security holders. 27 (5) The basis for the view of the board of directors that it is appropriate for the registrant not to have such a policy is that there is no need to adopt a policy for a small company. (6) The nominating committee will consider candidates recommended by security holders, and by security holders in submitting such recommendations. (7) There are no specific, minimum qualifications that the nominating committee believes must be met by a nominee recommended by security holders except to find anyone willing to serve with a clean background. (8) The nominating committee's process for identifying and evaluation of nominees for director, including nominees recommended by security holders, is to find qualified persons willing to serve with a clean backgrounds. There are no differences in the manner in which the nominating committee evaluates nominees for director based on whether the nominee is recommended by a security holder, or found by the board. Code of Ethics We have not adopted a Code of Ethics for the Board and any employees. Limitation of Liability of Directors ------------------------------------ Pursuant to the Nevada General Corporation Law, our Articles of Incorporation exclude personal liability for our Directors for monetary damages based upon any violation of their fiduciary duties as Directors, except as to liability for any breach of the duty of loyalty, acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, or any transaction from which a Director receives an improper personal benefit. This exclusion of liability does not limit any right which a Director may have to be indemnified and does not affect any Director's liability under federal or applicable state securities laws. We have agreed to indemnify our directors against expenses, judgments, and amounts paid in settlement in connection with any claim against a Director if he acted in good faith and in a manner he believed to be in our best interests. 28 Nevada Anti-Takeover Law and Charter and By-law Provisions ---------------------------------------------------------- The anti-takeover provisions of Sections 78.411 through 78.445 of the Nevada Corporation Law apply to Reshoot & Edit. Section 78.438 of the Nevada law prohibits the Company from merging with or selling more than 5% of our assets or stock to any shareholder who owns or owned more than 10% of any stock or any entity related to a 10% shareholder for three years after the date on which the shareholder acquired the Reshoot & Edit shares, unless the transaction is approved by Reshoot & Edit's Board of Directors. The provisions also prohibit the Company from completing any of the transactions described in the preceding sentence with a 10% shareholder who has held the shares more than three years and its related entities unless the transaction is approved by our Board of Directors or a majority of our shares, other than shares owned by that 10% shareholder or any related entity. These provisions could delay, defer or prevent a change in control of Reshoot & Edit. Item 11. Executive Compensation. The following table sets forth summary compensation information for the fiscal year ended August 31, 2008 for our Chief Executive Officer, who was appointed on August 14, 2006. We did not have any executive officers as of the year end of August 31, 2008 who received any compensation. Compensation ------------ As a result of our the Company's current limited available cash, no officer or director received compensation since August 23, 2006 (inception) of the company through the fiscal years ending August 31, 2008 and August 31, 2007. Reshoot & Edit has no intention of paying any salaries at this time. We intend to pay salaries when cash flow permits.
Summary Compensation Table -------------------------- All Fiscal Other Year Compen- Ending Salary Bonus Awards sation Total Name and Principal Position Aug 31 ($) ($) ($) ($) ($) ---------------------------------------------------------------------------- Dana Washington CEO/Dir. 2008 -0- -0- -0- -0- -0- 2007 -0- -0- -0- -0- -0- 2006 -0- -0- -0- -0- -0-
29 We do not have any employment agreements with our officers/directors. We do not maintain key-man life insurance for any our executive officers/directors. We do not have any long-term compensation plans or stock option plans. Stock Option Grants ------------------- We did not grant any stock options to the executive officers or directors from inception through fiscal year end August 31, 2008. Outstanding Equity Awards at Fiscal Year-Ending August 31, 2008 ------------------------------------------------------------- We did not have any outstanding equity awards as of August 31, 2008. Option Exercises for Fiscal Year-Ending August 31, 2008 ----------------------------------------------------- There were no options exercised by our named executive officer in fiscal year ending August 31, 2008. Potential Payments Upon Termination or Change in Control -------------------------------------------------------- We have not entered into any compensatory plans or arrangements with respect to our named executive officer, which would in any way result in payments to such officer because of his resignation, retirement, or other termination of employment with us or our subsidiaries, or any change in control of, or a change in his responsibilities following a change in control. Director Compensation --------------------- We did not pay our directors any compensation during fiscal years ending August 31, 2008 or August 31, 2007. 30 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The following table presents information, to the best of our knowledge, about the ownership of our common stock on September 30, 2008 relating to those persons known to beneficially own more than 5% of our capital stock and by our named executive officer and sole director. The percentage of beneficial ownership for the following table is based on 9,200,000 shares of common stock outstanding. Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and does not necessarily indicate beneficial ownership for any other purpose. Under these rules, beneficial ownership includes those shares of common stock over which the stockholder has sole or shared voting or investment power. It also includes shares of common stock that the stockholder has a right to acquire within 60 days after September 30, 2008 pursuant to options, warrants, conversion privileges or other right. The percentage ownership of the outstanding common stock, however, is based on the assumption, expressly required by the rules of the Securities and Exchange Commission, that only the person or entity whose ownership is being reported has converted options or warrants into shares of Reshoot & Edit's common stock.
AMOUNT AND NATURE OF TITLE OF NAME OF BENEFICIAL BENEFICIAL PERCENT OF CLASS OWNER AND POSITION OWNERSHIP CLASS ----------------------------------------------------------------------- Common Dana Washington(1) 400,000 4.8% Sole Officer/Director Common Ed DeStefano(2) 6,800,000 80.9% Shareholder ----------------------------- DIRECTORS AND OFFICERS AS A GROUP (1 person) 400,000 4.8% (1) Dana Washington, 10685 Oak Crest Avenue, Las Vegas, Nevada 89144 (2) Ed DeStefano, 14055 Tahiti Way, #305, Marina del Rey, CA 90292
31 We believe that all persons named have full voting and investment power with respect to the shares indicated, unless otherwise noted in the table. Under the rules of the Securities and Exchange Commission, a person (or group of persons) is deemed to be a "beneficial owner" of a security if he or she, directly or indirectly, has or shares the power to vote or to direct the voting of such security, or the power to dispose of or to direct the disposition of such security. Accordingly, more than one person may be deemed to be a beneficial owner of the same security. A person is also deemed to be a beneficial owner of any security, which that person has the right to acquire within 60 days, such as options or warrants to purchase our common stock. Item 13. Certain Relationships and Related Transactions, and Director Independence. The company's sole officer/director has contributed office space for our use. There is no charge to us for the space. Our officer will not seek reimbursement for past office expenses. Dana Washington, our president, chief executive officer, chief financial officer secretary and a director, on August 23, 2006 was issued 400,000 founders shares of the Company's $0.001 par value common stock for $400 cash. Ed DeStefano, the majority shareholder, on August 31, 2006 was issued 6,800,000 shares of the Company's $0.001 par value common stock for cash, pursuant to an exemption from registration under Section 4(2) of the Securities Act and/or Rule 506 of Regulation D promulgated thereunder as a transaction not involving a public offering. Through a Board Resolution, the Company hired the professional services of Moore & Associates, Chartered, Certified Public Accountants, to perform audited financials for the Company. Moore & Associates, Chartered own no stock in the Company. The company has no formal contracts with its accountants, they are paid on a fee for service basis. Other than as set forth above, there are no transactions since our inception, or proposed transactions, to which we were or are to be a party, in which any of the following persons had or is to have a direct or indirect material interest: a) Any director or executive officer of the small business issuer; b) Any majority security holder; and c) Any member of the immediate family (including spouse, parents, children, siblings, and in-laws) of any of the persons in the above. 32 Item 14. Principal Accountant Fees and Services. Moore & Associates, Chartered served as our principal independent public accountants for fiscal years ending August 31, 2008 and August 31, 2007. Aggregate fees billed to us for the years ended August 31, 2008 and August 31, 2007 by Moore & Associates were as follows:
For the Years Ended August 31, ------------------- 2008 2007 ------------------- (1) Audit Fees(1) $6,150 $4,500 (2) Audit-Related Fees -0- -0- (3) Tax Fees -0- -0- (4) All Other Fees -0- -0- Total fees paid or accrued to our principal accountant
(1) Audit Fees include fees billed and expected to be billed for services performed to comply with Generally Accepted Auditing Standards (GAAS), including the recurring audit of the Company's financial statements for such period included in this Annual Report on Form 10-K and for the reviews of the quarterly financial statements included in the Quarterly Reports on Form 10- QSB filed with the Securities and Exchange Commission. Audit Committee Policies and Procedures --------------------------------------- We do not have an audit committee; therefore our sole director pre-approves all services to be provided to us by our independent auditor. This process involves obtaining (i) a written description of the proposed services, (ii) the confirmation of our Principal Accounting Officer that the services are compatible with maintaining specific principles relating to independence, and (iii) confirmation from our securities counsel that the services are not among those that our independent auditors have been prohibited from performing under SEC rules. Our sole director then makes a determination to approve or disapprove the engagement of Moore & Associates for the proposed services. In the fiscal year ending August 31, 2008, all fees paid to Moore & Associates were unanimously pre-approved in accordance with this policy. Less than 50 percent of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. 33 PART IV Item 15. Exhibits, Financial Statement Schedules. The following information required under this item is filed as part of this report: (a) 1. Financial Statements Page ---- Management's Report on Internal Control Over Financial Reporting 23 Report of Independent Registered Public Accounting Firm F-1 Balance Sheets F-2 Statements of Operations F-3 Statements of Stockholders' Equity F-4 Statements of Cash Flows F-5 (b) 2. Financial Statement Schedules None. 34 (c) 3. Exhibit Index Incorporated by reference ------------------------- Filed Period Filing Exhibit Exhibit Description herewith Form ending Exhibit date ------------------------------------------------------------------------------ 3.1 Articles of Incorporation, SB-2 3.1 10/3/06 as currently in effect ------------------------------------------------------------------------------ 3.2 Bylaws SB-2 3.2 10/3/06 as currently in effect ------------------------------------------------------------------------------ 23.1 Consent Letter from Moore X and Associates Chartered ------------------------------------------------------------------------------ 31.1 Certification of President X and Principal Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act ------------------------------------------------------------------------------ 31.2 Certification of President X and Principal Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act ------------------------------------------------------------------------------ 35 SIGNATURES In accordance with Section 13 or 15(d) of the Securities Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Reshoot & Edit By: /s/ Dana Washington ------------------- Dana Washington President Date: November 4, 2008 ---------------- Pursuant to the requirements of the Securities Exchange Act of 1934, the following persons on behalf of the Registrant and in the capacities and on the dates indicated have signed this report below. By: /s/ Dana Washington --------------------------------- Dana Washington President, Secretary, Treasurer and Director (Principal Executive, Principal Financial and Principal Accounting Officer) Date: November 4, 2008 ---------------- 36