0001213900-12-000530.txt : 20120209 0001213900-12-000530.hdr.sgml : 20120209 20120209092910 ACCESSION NUMBER: 0001213900-12-000530 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20120120 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Completion of Acquisition or Disposition of Assets ITEM INFORMATION: Unregistered Sales of Equity Securities ITEM INFORMATION: Changes in Control of Registrant ITEM INFORMATION: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20120209 DATE AS OF CHANGE: 20120209 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LEAGUE NOW HOLDINGS CORP CENTRAL INDEX KEY: 0001424657 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 000000000 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-148987 FILM NUMBER: 12584602 BUSINESS ADDRESS: STREET 1: 4075 CARAMBOLA CIRCLE NORTH CITY: COCONUT CREEK STATE: FL ZIP: 33066 BUSINESS PHONE: (954)478-4396 MAIL ADDRESS: STREET 1: 4075 CARAMBOLA CIRCLE NORTH CITY: COCONUT CREEK STATE: FL ZIP: 33066 8-K 1 f8k012012_leaguenow.htm FORM 8-K f8k012012_leaguenow.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported):    January 20, 2012
 
League Now Holdings Corporation
(Exact name of registrant as specified in its charter)

 
Florida
333-148987
20-35337265
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

 
6980 South Edgerton Road
Brecksville, OH 44141-3184
(Address of principal executive offices) (Zip Code)

(440) 546-9440
 (Registrant’s telephone number, including area code)

 (Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 

 
 
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

Forward-Looking Statements

This Current Report on Form 8-K and other reports filed by Registrant from time to time with the Securities and Exchange Commission (collectively, the “Filings”) contain or may contain forward-looking statements and information that are based upon beliefs of, and information currently available to, Registrant’s management as well as estimates and assumptions made by Registrant’s management. When used in the filings the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan” or the negative of these terms and similar expressions as they relate to Registrant or Registrant’s management identify forward-looking statements. Such statements reflect the current view of Registrant with respect to future events and are subject to risks, uncertainties, assumptions and other factors (including the risks contained in the section of this report entitled “Risk Factors”) relating to Registrant’s industry, Registrant’s operations and results of operations and any businesses that may be acquired by Registrant. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned.

Although Registrant believes that the expectations reflected in the forward-looking statements are reasonable, Registrant cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, Registrant does not intend to update any of the forward-looking statements to conform these statements to actual results. The following discussion should be read in conjunction with Registrant’s pro forma financial statements and the related notes filed herewith.

Unless otherwise indicated or the context otherwise requires, all references below in this Current Report on Form 8-K to “we,” “us,” “our,” “Registrant,” “League Now” and the “Company” refer to League Now Holdings Corporation, a Florida corporation.
 
 
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Item 1.01  Entry into a Material Definitive Agreement

On January 20, 2012, League Now Holdings Corporation (the “Company”) entered into a Stock Purchase Agreement and Share Exchange (the “Agreement”) with Infiniti Systems Group, Inc. (“Infiniti”). Pursuant to the Agreement, the Company has agreed to issue 30 million common shares of our stock to the shareholders of Infiniti in exchange for 100% of the issued and outstanding capital stock of Infiniti.  The shares issued to the shareholders of Infiniti represent 60% of our issued and outstanding capital stock on a fully diluted basis (the “Stock Consideration”). In addition, our Chief Executive Officer and Chief Financial Officer, Mario Barton, has resigned from those offices.  John Bianco, the Chief Executive Officer of Infiniti, has agreed to serve as the Company’s new President and Chief Executive Officer.  Our new Treasurer and Chief Financial Officer is Lisa Bischof, and our new Secretary and Chief Operating Officer is D. Bruce Veness. The transactions contemplated by the Agreement were closed on January 31, 2012.

Item 2.01  Completion of Acquisition or Disposition of Assets

The information set forth above in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.  As a result of the Stock Purchase Agreement and Share Exchange, (i) our principal business became the business of Infiniti, which is more fully described below and (ii) Infiniti became our wholly-owned operating subsidiary. Since the owners of Infiniti have obtained, by receipt by John Bianco, D. Bruce Veness and Lisa Bischof of the Stock Consideration, the majority of the outstanding shares of the Company through the acquisition, the acquisition is accounted for as a reverse merger or recapitalization of the Company. As such, Infiniti is considered the acquirer for accounting purposes.

FORM 10 DISCLOSURE

As disclosed elsewhere in this Current Report, the Company completed a Stock Purchase Agreement and Share Exchange with Infiniti Systems, Inc. (the "Transaction") and Item 2.01(f) of Form 8-K states that the registrant must disclose the information that would be required if the registrant were filing a general form for registration of securities on Form 10.

Accordingly, we are providing below the information that would be included in a Form 10 if we were to file a Form 10.  Please note that the information provided below relates to the combined enterprises after the closing of the Transaction, except that information relating to periods prior to the date of the Transaction only relates to the Registrant unless otherwise specifically indicated.

History

League Now Holdings Corporation was incorporated in September 2005 in Florida. Then on September 21, 2005, we entered into an Asset Purchase Agreement with Anthony Warner pursuant to which we acquired the domain name, www.leaguenow.com, its design, associated copyrights and trademarks and all business related to the website including the customer database. We originally intended to operate as an application service provider offering web-based services for the online video gaming industry.

We commenced offering our services in October 2005 through a subscription basis. During 2007 we changed our direction by using an advertising model. We were unable to generate additional revenue streams by charging registered users for the use of enhanced functionality to be incorporated into the site, access to specialized content, and e-commerce of merchandise related to the video console industry. Our inability to generate revenue led to the decision that we would have to explore our options regarding the development of a new business plan and direction.

Accordingly, beginning in late 2009, we believe that the Company would be considered a “shell” company as that term is defined in Rule 12b-2 of the Securities Exchange Act of 1934.

On October 6, 2010, we entered into a Share Exchange Agreement, dated October 6, 2010 (the “Share Exchange Agreement”) by and among League Now, James Pregiato, Pure Motion, Inc., a Texas corporation (“Pure Motion”) and the shareholders of Pure Motion (the “Pure Motion Shareholders”).    Pursuant to the Share Exchange Agreement, we acquired 100% of the outstanding shares of common stock of Pure Motion (the “Pure Motion Stock”), in exchange for the Pure Motion Stock, the Pure Motion Shareholders acquired 24,009,008 shares of our common stock (the “Exchange Shares”).

Additionally, pursuant to the terms of the Share Exchange Agreement, as consideration for the cancellation of 38,048,000 of the 39,111,136 shares of League Now common shares owned by James Pregiato (“Pregiato”), Pure Motion agreed to pay a total cash payment of $250,000 to Pregiato (the “Cash Payment”) of which $100,000 (the “Initial Cash Payment”) was paid on the closing date and $150,000 (the “Final Cash Payment”) was to be paid within twelve weeks of the closing date. The 38,048,000 shares were being held in escrow until receipt of the Final Cash Payment. Mr. Pregiato agreed to extinguish all outstanding debt and liabilities of League Now outstanding as of the closing date upon receipt of the Cash Payment.  Upon closing, Pure Motion became a wholly-owned subsidiary of the Company.
 
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On January 20, 2012, we entered into a Stock Purchase Agreement and Share Exchange (the “Agreement”) with Infiniti Systems Group, Inc. (“Infiniti”). Pursuant to the Agreement, the Company agreed to issue 30 million common shares of our stock to the shareholders of Infiniti in exchange for 100% of the issued and outstanding capital stock of Infiniti.  The shares issued to the shareholders of Infiniti represent 60% of our issued and outstanding capital stock on a fully diluted basis (the “Stock Consideration”). In addition, our Chief Executive Officer and Chief Financial Officer, Mario Barton, has resigned from those offices.  John Bianco, the Chief Executive Officer of Infiniti, has agreed to serve as the Company’s new President and Chief Executive Officer.  Our new Treasurer and Chief Financial Officer is Lisa Bischof, and our new Secretary and Chief Operating Officer is D. Bruce Veness. The transactions contemplated by the Agreement were closed on January 31, 2012, with the Company issuing 30 million shares to Bianco, Veness and Bischof.  Contemporaneously with the closing, Pregiato agreed to cancel 25,803,288 shares of our common stock which were held by him.

Overview

Infiniti Systems Group, Inc. was incorporated in the State of Ohio in January 1995 as J.L. Consulting, Inc., to develop and consult on application development, project management, managed information technology (IT) services, IT helpdesk services, professional staffing and placement, network security products and services, and server virtualization, backup and disaster recovery.  On July 15, 1999, J.L. Consulting, Inc. changed its name to Infiniti Systems Group, Inc.  

The Company is a reseller for Microsoft and McAfee products for many of our clients.  We market our managed IT services to the small to medium businesses and our security staffing sales to Fortune 1000 companies.  Our client base is across many industries including healthcare, financial, manufacturing, construction, transportation, non-profits and government.  Infiniti is now specializing in IT security and information technology consulting for companies in the Midwestern United States.  Infiniti’s security division provides product and service support in the Windows security, Unix and Linux security, Internet security, the latest on intrusion detection and prevention, disaster recovery and business continuity planning.  The consulting division provides network support, application development, staffing and recruiting for many companies in the Midwestern United States.

Business Continuity Services

Business continuity plans are critical to your business (large or small). Today, any amount of IT downtime can mean lost productivity, lost revenue, lost customers, and lost opportunities. Not having operational capability for weeks, or even days, can put a client out of business.  We provide not only the plan but the backup facility for office operations in the event of a disaster. Computer systems, business data and office space all operational within hours to maintain your company’s workflow in the event of a disaster.

We offer the following business continuity services to our clients:

Consulting Services

• Identify critical applications and other resources necessary to our client’s core business processes.
• Prioritize the critical processes (i.e. a one-day outage may impact fulfillment only while extended outages will begin impacting AR, AP, payroll, etc.)
• Design a plan and configuration that includes server, personal computers (PC’s), workstation, Internet and telephone infrastructure – all necessary to keep our client’s business in business

Backup Services

• Server ‘mirroring’ at our facility combining multiple physical machines into one virtual environment. Our clients do not share physical servers – their data is secure.
• On-line backup or replication will be used to keep our client’s software and data secure and current at a third party off site facility.
• Workstation ‘mirroring’ is accomplished with stored images downloaded to PC’s at outage execution (and for periodic user testing)
• Testing of the recovery and continuity service is performed at least quarterly.

Outage Services (In the event of a disaster)

• Warm site preparation (server data restore, workstation imaging, preliminary validation and testing). We will plan for between 8 and 24 hour response time to completion depending on your execution planning
• Workspace for each workstation
• Internet access
• Telephone service
• Help desk support

All this provided by Infiniti in addition to our normal IT and network support services to our clients.
 
 
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Managed Services
 
Infiniti’s managed services is a cost effective approach to outsourcing some or all effort required to build or maintain an IT infrastructure environment. “Infrastructure” refers to:
 
• computers that function as servers and workstations;
 
• hubs, switches, routers making up hard wired and wireless connectivity;
 
• printers, scanners, tape drives and other workflow peripherals;
 
• and software components relating to program and data backup, virus projection, and security.
 
Our managed services consists of:

Problem Resolution
• Troubleshooting and repair of system malfunctions (break/fix).
 
Preventive Maintenance
• Avoids degradation and failures by providing such services as Firewall configuration review, service pack and version control, and other performance assurance actions.
 
Remote Access Support
• A VPN "tunnel" will be established to facilitate remote troubleshooting by help desk and IT consultants. This allows rapid response to issues and frequently avoids travel delays and expense.
 
Remote Monitoring
• Provides immediate notification to ISG of system failures on a 24x7 basis. Allows our help desk staff to quickly address remotely accessible issues and/or
• Anticipates failures by remote network monitoring and interpreting key components of system. Allows the management of potential down time into a scheduled activity.
 
Dispatch Desk
• Staffed response line for the creation of “Trouble Ticket” and dispatch of IT consultants.
 
Help Desk
• Staffed infrastructure support response line, ISG resolved or creates “Trouble Ticket” real-time, if unable to resolve the issue, and begins and escalation process.
 
Virtual CIO/CTO
• Our IT advisor assists the strategic planning and execution of IT services for the client.
 
Additional sampling of specific services provided under a managed services agreement are:
• Proactive problem prevention where feasible
• Software patch & upgrade management
• Installation of software upgrades
• Installation of new or replacement hardware as procured through our Company
• Data backup and disaster recovery oversight & periodic testing

• Hardware acquisition consulting and proposal/quote services
• Maintain system documentation and hardware inventory
• Strategic planning of IT services

Security Consulting

We offer a complete line of security service to help our clients develop, implement and maintain effective security awareness programs. We have developed an information security practice that is time-tested and client specific. We focus on the following areas:

Network Security and Vulnerability Assessment:
 
We audit the effectiveness of the security measures and technology employed by the enterprise to ensure compliance with regulatory, industry and ISO 17799 standards; and report the business and technical vulnerabilities that may pose a risk to the information assets of the organization.
 
 
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Network Penetration Testing:
 
Using automated tools that scan a predetermined range of IP addresses and performs over 400 tests aimed at identifying known vulnerabilities in UNIX, Windows and TCP/IP based network systems, we help our clients harden their network arteries by implementing network access controls, firewalls, router filters, and virus prevention and detection software services.  Our security experts will perform both manual (e.g., default or trivial passwords) and automated (e.g., brute force password) attacks to gain access to client systems. We will help select and implement intrusion detection and reporting software and procedures, including real-time monitoring and 24/7 incident response and reporting.
 
Security Policies and Procedures (ISO 17799 compliant):
 
A corporate security policy defines what actions are authorized. The policy must be set forth by management and have consequences for failure to comply. Our team of security experts will evaluate and document all applicable security policies, standards and procedures, and provide recommendations with a focus on the ISO 17799 standard.
 
Security Awareness Training:
 
Recognizing that security is a business enabler, we will create an ongoing corporate security awareness training program which will address all facets of the organization and focus on people, processes and technology.
 
PCI Compliance Review:
 
The Payment Card Industry Data Security Standard (PCI DSS) applies to every organization that processes credit or debit card information, including merchants and third-party service providers that store, process or transmit credit card/debit card data. According to the PCI DSS documentation, "PCI DSS requirements are applicable if a Primary Account Number (PAN) is stored, processed or transmitted. If a PAN is not stored, processed, or transmitted, PCI DSS requirements do not apply." By the end of 2007, any organization that accepts payment card transactions must be in compliance with the standards.
 
·Examine the current process to ensure confidentiality, reliability and security.
 
·Evaluate and test the current state of these business functional areas by analyzing the network for application, system and network vulnerabilities.
 
·Evaluate sound business processes, security related administrative and procedural controls, along with current supporting vendors.
 
·Perform vulnerability testing on core data architecture including but not limited to servers, routers, switches, certificates, etc. to ensure complete confidentiality of this data.
 
·Confirm and test the integrity of transmissions and batch processes to each selected merchant.
 
·Ensure that the process exceeds the requirements of our clients overall security policies and procedures as well as meets PCI DSS recommendations.
 
·Ensure proper documentation is created, accurate and available relative to these processes.
 
Staffing Services

Our professional staffing and recruiting services provide the top IT talent for temporary and permanent placement for the lowest cost to our customers.  Infiniti will also complete the entire project as a turnkey operation, or assist our client’s staff with project completion as part of an in-house/outside consultant team approach.

Products

We also provide our clients with the latest in Firewalls/Gateway Security, Network/Internet Security and Messaging Security and Backup/Restore.

Market Opportunity

Infiniti has positioned itself in the IT consulting business by being able to market its services to small and mid-size firms, while also being able to capture the larger market for Fortune 1000 companies.  We continue to build partnerships with various vendors to enable us to offer unique support and solutions to our customers.   The market need for outside IT services continues to grow as businesses seek to save money by out-sourcing many of the necessary functions which our company offers.
 
 
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Industry Overview

The IT service industry continues to be one of the fastest growing in the United States.  The dependency of most businesses on information technology platforms and security has grown at a pace relative to the development of the computer and internet businesses.  In addition, the recent recession has left businesses seeking ways to cut costs without risking damage to their companies.  One way has been outsourcing of certain services, including human resources, accounting, information technology and security.  Moreover, many companies have short-term staffing needs but concerns about fulltime employment costs and expenses (such as payroll taxes, disability and workers’ compensation premiums, health insurance contributions and employment related liabilities).  Our staffing solutions provide a way for our clients to get the short-term staffing they need for projects while avoiding these potential liabilities.  Our competition is large with staffing and security companies, but our pricing gives us a competitive advantage to open doors in this marketplace.

Continued Development

The Company plans to continue to develop each of its practice areas.  Part of our business model includes using contractors to deliver around 50% of our consulting work to minimize bench time for our staff after completion of projects.

We currently do not own any intellectual property but are working in healthcare space to develop a product to better handle medical processing of claims and significantly reduce medical costs.  We have not yet chosen a name for this product.  Our plan is to have the product developed by the end of 2012, with a number of installations to commence in 2013.  This product could provide significant growth to our revenue and profitability.

Office Locations

We maintain our principal offices at 6980 South Edgerton Road, Brecksville, Ohio 44141-3184.  We also have a remote office in Raleigh, North Carolina. Both of these spaces are leased.  The lease for the Brecksville office expires in March 2012, and we are currently exploring options for new office space in the area.  Our telephone number is 440-546-9440.

Employees

As of January 31, 2012, Infiniti had 16 fulltime employees and 14 consultants.

 
 RISK FACTORS
 
You should carefully consider the risks described below together with all of the other information included in this report before making an investment decision with regard to our securities.  The statements contained in or incorporated herein that are not historic facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. If any of the following risks actually occurs, our business, financial condition or results of operations could be harmed. In that case, you may lose all or part of your investment.
 
Risks Relating to Our Business

If we fail to develop and maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud; as a result, current and potential shareholders could lose confidence in our financial reports, which could harm our business and the trading price of our common stock.

Effective internal controls are necessary for us to provide reliable financial reports and effectively prevent fraud. Section 404 of the Sarbanes-Oxley Act of 2002 requires us to evaluate and report on our internal controls over financial reporting. We plan to prepare for compliance with Section 404 by strengthening, assessing and testing our system of internal controls to provide the basis for our report. The process of strengthening our internal controls and complying with Section 404 is expensive and time consuming, and requires significant management attention, especially given that we have not yet undertaken any efforts to comply with the requirements of Section 404. We cannot be certain that the measures we will undertake will ensure that we will maintain adequate controls over our financial processes and reporting in the future. Furthermore, if we are able to rapidly grow our business, the internal controls that we will need will become more complex, and significantly more resources will be required to ensure our internal controls remain effective. Failure to implement required controls, or difficulties encountered in their implementation, could harm our operating results or cause us to fail to meet our reporting obligations. If we or our auditors discover a material weakness in our internal controls, the disclosure of that fact, even if the weakness is quickly remedied, could diminish investors’ confidence in our financial statements and harm our stock price. In addition, non-compliance with Section 404 could subject us to a variety of administrative sanctions, including the suspension of trading, ineligibility for listing on one of the Nasdaq Stock Markets or national securities exchanges, and the inability of registered broker-dealers to make a market in our common stock, which would further reduce our stock price.
  
 
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We will incur increased costs as a public company which may affect our profitability and an active trading market.

As a public company, we will incur significant legal, accounting and other expenses that it did not incur as a private company. SEC disclosures generally involve a substantial expenditure of financial resources. In addition, the Sarbanes-Oxley Act of 2002 and new rules subsequently implemented by the SEC have required changes in corporate governance practices of public companies. We expect that full compliance with these new rules and regulations will significantly increase our legal and financial compliance costs and make some activities more time-consuming and costly. For example, we will be required to create additional board committees and adopt policies regarding internal controls and disclosure controls and procedures. Such additional reporting and compliance costs may negatively impact our financial results. To the extent our earnings suffer as a result of the financial impact of our SEC reporting or compliance costs, our ability to develop an active trading market for our securities could be harmed.

There is no guarantee the Company can achieve or maintain profitability, and if the Company cannot generate sufficient revenues and profitability, it will be unable to build a sustainable business and you could lose your entire investment.

The Company has been in its initial stage of product development and demonstration, and has generated limited revenues or profits to date.  The Company anticipates that, in time, it will generate sales and profits as a result of manufacturing, licensing and marketing its products.  However, there can be no assurance that the Company will achieve revenues and profitability at the levels projected in management’s financial projections, or at all.  If the Company cannot generate sufficient revenues and profitability, it will be unable to build a sustainable business and you could lose your entire investment.

Potential investors should be aware of the problems, delays and expenses encountered by an enterprise in its development stage, many of which are beyond the Company’s control.  These include unanticipated manufacturing, marketing, operational and/or competitive problems, among others.  Revenues may be substantially lower, and costs and expenses may be substantially higher, than current estimates.  Potential investors should be aware of the difficulties normally encountered by new enterprises and the high rate of failure of such enterprises.  The likelihood of success must be considered in light of the expenses, difficulties, complications, delays and competition encountered in connection with the development of a business in the sports products industry.

 The Company needs significant additional financing to fund its operations, and if adequate funds are not available or are not available on acceptable terms, the Company’s ability to fund its expansion, take advantage of potential opportunities, develop or enhance products or otherwise respond to competitive pressures would be limited significant.

To date, the Company has financed its operations principally through capital infusions from its founders and a small group of investors.  The Company needs to raise additional funds through financing in order to be able to implement its business plan. There is no assurance that such financing will be available on commercially acceptable terms, or at all. If additional funds are raised through the issuance of shares, convertible debt or similar securities of the Company, the percentage of ownership of the Company’s shareholders will be reduced, and such securities may have rights or preferences superior to those of the Company’s securities issued pursuant to a new offering.  If adequate funds are not available or are not available on acceptable terms, the Company’s ability to fund its expansion, take advantage of potential opportunities, develop or enhance products or otherwise respond to competitive pressures would be limited significantly.
 
The Company’s products and services may not achieve market acceptance and the failure of the Company to achieve broad acceptance of its products and services would have a material adverse effect on the Company’s business, financial condition and results of operations

The Company’s growth and profitability will depend upon broad market acceptance of its products and services.  The overall success of the Company’s products and services is expected largely to depend on their acceptance and use by companies outside its current market in the Midwestern United States.  Market acceptance of the Company’s products and services may be adversely affected by a variety of factors, including product features, quality and pricing, the effectiveness of the Company’s sales and marketing efforts and competition.  The failure of the Company to achieve broad acceptance of its products and services would have a material adverse effect on the Company’s business, financial condition and results of operations.

Current and potential competitors, some of whom have greater resources and experience than the Company, may develop products and services that may cause demand for, and the prices of, its products to decline.

The Company will likely experience a competitive market subject to rapid change, and may be adversely affected by new product and service introductions and other market activities of competitors.  Additionally, competitors may combine with each other, and other companies may enter the Company’s markets by acquiring or entering into strategic relationships with its competitors.  Current and potential competitors may establish cooperative relationships among themselves or with third parties to increase the abilities of their existing products and services to address the needs of our prospective customers.

Many of the current and potential competitors have longer operating histories, significantly greater financial, technical, product development and marketing resources, greater name recognition and larger customer bases than the Company.  They may be able to develop products and services comparable or superior to those offered by the Company, adapt more quickly than the Company to new technologies, evolving industry trends and standards or customer requirements, or devote greater resources to the development, promotion and sale of their products and services than the Company.  If the Company is not able to compete effectively in its markets, it may not succeed in its business plan.
 
 
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The Company relies on the services of key personnel, and the failure to attract, motivate and retain these employees could harm the Company’s business.

The Company’s future performance depends to a significant degree on the continued service of a few full and part time key technical and managerial personnel, including without limitation its Chief Executive, Treasurer and Corporate Secretary.  If the Company loses the services of any of these individuals, its business, operating results and financial condition could be materially and adversely effected.  The Company’s future success also depends on its continuing ability to attract and retain highly qualified sales, technical, customer support, and managerial personnel.  There can be no assurance that the Company will be able to retain its key employees, or that it can attract, assimilate and retain other highly qualified personnel in the future.  The failure to attract, motivate and retain these employees could harm the Company’s business.

Adverse general economic conditions also could reduce sales of our products and adversely affect our business.

Our products and services are technical in nature and are, therefore, depends on the state of information technology for businesses. Our customers’ purchases of our products and services could decline during periods when disposable income is lower, or periods of actual or perceived unfavorable economic conditions, when projects could be scarce or funds unavailable for outsourcing of information technology needs. Any significant decline in these general economic conditions or uncertainties regarding future economic prospects that adversely affect business spending could lead to reduced sales of our products and services. A prolonged economic downturn could have a material adverse effect on our business, financial condition, and results of operations.

The Company relies upon third-party manufacturers, and the Company may not be able to maintain these relationships. The failure of the Company to maintain and renew these relationships on terms favorable to the Company could adversely affect its business, operating results and financial condition.

While the Company currently has relationships with the key software manufacturers, it will need to secure contracts with these key suppliers and distributors.  There is no assurance that these relationships will be maintained or that the Company will be able to renew these contractual relationships on terms favorable to it or at all.

The Company may encounter difficulties in managing its growth, which could prevent it from executing its business strategy.

If the Company achieves its growth objectives, such growth would place a strain on its management systems and resources.  The Company’s ability to compete effectively and to manage future growth, if any, will require it to continue to improve its financial and management controls, reporting systems and procedures on a timely basis, and to expand, train and manage its employee work force.  There can be no assurance that the Company will be able to successfully do so, which could adversely affect its business, operating results and financial condition.
 
The Company’s business relies upon utilization of software platforms developed and implemented by third parties.

The Company’s security division and consulting division utilize software platforms in Windows, Unix and Linux which were developed and implemented by third parties.  Any material changes to these software platforms which are not available to the Company could result have a material adverse effect on our business, financial condition, and results of operations.

The Company has never declared or paid a dividend, and does not anticipate paying cash dividends for the foreseeable future.

The Company has never declared or paid any cash dividends on its stock.  The Company currently intends to retain any future earnings for funding growth and, therefore, the Company does not currently anticipate paying cash dividends on its stock in the foreseeable future.  Any determination to pay dividends in the future will be at the discretion of the Board of Directors and will depend upon the Company’s results of operations, financial condition, and such other factors as the Board of Directors, in its discretion, deems relevant.
 
Legislative actions, higher insurance costs and potential new accounting pronouncements may impact our future financial position and results of operations.

There have been regulatory changes, including the Sarbanes-Oxley Act of 2002, and there may potentially be new accounting pronouncements or additional regulatory rulings that will have an impact on our future financial position and results of operations. The Sarbanes-Oxley Act of 2002 and other rule changes, as well as proposed legislative initiatives, are likely to increase general and administrative costs and expenses. In addition, insurers are likely to increase premiums as a result of high claims rates over the past several years, which we expect will increase our premiums for insurance policies. Further, there could be changes in certain accounting rules. These and other potential changes could materially increase the expenses we report under generally accepted accounting principles, and adversely affect our operating results.
 
 
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Future sales of shares of our common stock may decrease the price for such shares.

Actual sales, or the prospect of sales by our shareholders, may have a negative effect on the market price of the shares of our common stock. We may also register certain shares of our common stock that are subject to outstanding convertible securities, if any, or reserved for issuance under our stock option plans, if any. Once such shares are registered, they can be freely sold in the public market upon exercise of the options. If any of our shareholders either individually or in the aggregate causes a large number of securities to be sold in the public market, or if the market perceives that these holders intend to sell a large number of securities, such sales or anticipated sales could result in a substantial reduction in the trading price of shares of our common stock and could also impede our ability to raise future capital.

Other Risks
 
Mergers of the type we just completed with Infiniti are often heavily scrutinized by the SEC and we may encounter difficulties or delays in obtaining future regulatory approvals which would negatively impact our financial condition and the value and liquidity of your shares of common stock.

On June 29, 2005, the SEC adopted rules dealing with private company mergers into dormant or inactive public companies. As a result, it is likely that we will be scrutinized carefully by the SEC and possibly by the Financial Industry Regulatory Authority (“FINRA”) which could result in difficulties or delays in achieving SEC clearance of any future registration statements or other SEC filings that we may pursue, in attracting FINRA-member broker-dealers to serve as market-makers in our common stock, or in achieving admission to one of the Nasdaq stock markets or any other national securities market. As a consequence, our financial condition and the value and liquidity of your shares of our common stock may be negatively impacted.

The elimination of monetary liability against our directors, officers and employees under Florida law and the existence of indemnification rights to our directors, officers and employees may result in substantial expenditures by us and may discourage lawsuits against our directors, officers and employees.

Our Amended and Restated Bylaws contain specific provisions that eliminate the liability of our directors for monetary damages to our company and shareholders, and we are prepared to give such indemnification to our directors and officers to the extent provided by Florida law. We may also have contractual indemnification obligations under our employment agreements with our officers. The foregoing indemnification obligations could result in our company incurring substantial expenditures to cover the cost of settlement or damage awards against directors and officers, which we may be unable to recoup. These provisions and resultant costs may also discourage our company from bringing a lawsuit against directors and officers for breaches of their fiduciary duties, and may similarly discourage the filing of derivative litigation by our shareholders against our directors and officers even though such actions, if successful, might otherwise benefit our company and shareholders.

Our common stock is currently quoted on the OTC Bulletin Board. Since none of our securities are registered under Section 12 of the Securities Act of 1933, as amended, and our stock is not currently trading, our stock may be delisted from the OTC Bulletin Board.

The OTC Bulletin Board is an automated quotation system. Our stock is not currently trading. One of the listing requirements for the OTC Bulletin Board is that the issuer register its securities under Section 12 of the Securities Act of 1933, amended.  In view of these factors, our stock may be delisted from the OTC Bulletin Board.  In such an event, we would be required to register our common stock under Section 12 and reapply to the OTC Bulletin Board for quotation.

 
There is currently no market for our common stock.  Our common stock is currently thinly trading.  You may be unable to sell at or near asking prices or at all if you need to sell your shares to raise money or otherwise desire to liquidate your shares.

Currently, our common stock is quoted on the OTC Bulletin Board market; however it is thinly traded (meaning that there is not a great deal of daily volume in trades).  Any trading volume we may develop may be limited by the fact that many major institutional investment funds, including mutual funds, as well as individual investors follow a policy of not investing in OTC Bulletin Board stocks and certain major brokerage firms restrict their brokers from recommending OTC Bulletin Board stocks because they are considered speculative, volatile and thinly traded. The OTC Bulletin Board market is an inter-dealer market much less regulated than the major exchanges and our common stock is subject to abuses, volatility and shorting. Thus, there is currently no broadly followed and established trading market for our common stock. An established trading market may never develop or be maintained. Active trading markets generally result in lower price volatility and more efficient execution of buy and sell orders. Absence of an active trading market reduces the liquidity of the shares traded there.

Our common stock has been thinly trading and, trading is likely to continue to be limited and sporadic. As a result of such trading activity, the quoted price for our common stock on the OTC Bulletin Board may not necessarily be a reliable indicator of its fair market value. Further, if we cease to be quoted, holders would find it more difficult to dispose of our common stock or to obtain accurate quotations as to the market value of our common stock and as a result, the market value of our common stock likely would decline.
 
 
10

 
 
Our common stock will be subject to price volatility unrelated to our operations.

The market price of our common stock could fluctuate substantially due to a variety of factors, including market perception of our ability to achieve our planned growth, quarterly operating results of other companies in the same industry, trading volume in our common stock, changes in general conditions in the economy and the financial markets or other developments affecting our competitors or us. In addition, the stock market is subject to extreme price and volume fluctuations. This volatility has had a significant effect on the market price of securities issued by many companies for reasons unrelated to their operating performance and could have the same effect on our common stock.
 
Our common stock is classified as a “penny stock” as that term is generally defined in the Securities Exchange Act Of 1934, as amended, to mean equity securities with a price of less than $5.00. Our common stock will be subject to rules that impose sales practice and disclosure requirements on broker-dealers who engage in certain transactions involving a penny stock.

We will be subject to the penny stock rules adopted by the Securities and Exchange Commission that require brokers to provide extensive disclosure to its customers prior to executing trades in penny stocks. These disclosure requirements may cause a reduction in the trading activity of our common stock, which in all likelihood would make it difficult for our stockholders to sell their securities.

Rule 3a51-1 of the Securities Exchange Act of 1934 establishes the definition of a “penny stock,” for purposes relevant to us, as any equity security that has a minimum bid price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to a limited number of exceptions which are not available to us. It is likely that our shares will be considered to be penny stocks for the immediately foreseeable future. This classification severely and adversely affects any market liquidity for our common stock.
 
For any transaction involving a penny stock, unless exempt, the penny stock rules require that a broker or dealer approve a person’s account for transactions in penny stocks and 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 obtain financial information and investment experience and objectives of the person and make a reasonable determination that the transactions in penny stocks are suitable for that person and that that 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 prepared by the SEC relating to the penny stock market, which, in highlight form, sets forth:
 
•      the basis on which the broker or dealer made the suitability determination, and
•      that the broker or dealer received a signed, written agreement from the investor prior to the transaction.
 
Disclosure also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading and 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.
 
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

The following discussion and analysis of the results of operations and financial condition of Infiniti should be read in conjunction with the Selected Combined and Consolidated Financial Data, Infiniti’s financial statements, and the notes to those financial statements that are included elsewhere in this Form 8-K.
  
Results of operations for the nine month period ended September 30, 2011 compared to the nine month period from September 1, 2010 and the year ended December 31, 2010.
 
The following tables set forth key components of our results of operations for the periods indicated, in dollars and key components of our revenue for the period indicated, in dollars. The discussion following the table is based on these results.
 
 Infiniti Systems Group, Inc.
 
Quarter Ended
   
Quarter Ended
   
Year Ended
 
 Statement of Operations
 
September 30, 2011
   
September 30, 2010
   
December 31, 2010
 
                   
 Revenue
  $ 2,439,666     $ 3,341,862     $ 3,288,837  
                         
 Cost of Goods Sold
  $ 1,319,558     $ 1,992,666.00     $ 1,850,738  
 Interest Expense
  $ 72,252     $ 102,260.00     $ 102,218  
 General & Administrative
  $ 1,235,280     $ 1,322,580.00     $ 1,339,741  
 Depreciation and Amortization
  $ 3,961     $ 7,152     $ 7.152  
Loss from Operations
  $ (191,385 )   $ (8,715 )   $ (11,012  
Other Income or (Loss)
  $ 70,648     $ 74,082     $ 73,336  
Net Loss Before Taxes
  $ (120,737 )   $ (8,715 )   $ 62,324  
Income Tax
                 
                         
Net Loss
  $ (120,737 )   $ (8,715 )   $ 62,324  
                         
Net Loss Per Share
  $ (1,207.37 )   $ (87.15 )   $ 623.24  
 
 
11

 
 
Revenue:

Revenue decreased by $902,196 or 27%, to $2,439,666 for the nine-month period ended September 30, 2011 from $3,341,862 for the nine-month period ended September 30, 2010.

Cost of Goods Sold

Cost of Goods Sold has decreased to $1,319,558 for the nine-month period ended September 30, 2011 from $1,992,666 for the nine-month period ended September 30, 2010.  The increase is primarily due to the decrease in sales volumes of the Company’s products and services.
 
Operating Expenses :

Operating expenses  decreased by  $120,500 or 8% to $1,311,493 for the nine -month period ended  September 30, 2011 from $1,431,993 for the nine-month period ended September 30, 2010.   The decrease in operating expenses was due to the restructuring efforts of the company.

Loss from Operations :

Loss from operations increased by $108,588, to a loss of $191,385 for the nine- month period ended September 30, 2011 from $82,797 for the nine-month period ended September 30, 2011 mainly due to the decrease in sales of the company’s precuts and services.

Interest Income:

The company had no interest income to report.

Net Loss:

Net Loss was $120,737 for the nine -month period ended September 30, 2011, compared to a net loss of $8,715 for the nine-month period September 30, 2010.  

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2011, we had net current liabilities of $874,230 compared to $954,291 as of September 30, 2010. Our balance of cash and cash equivalents at September 30, 2011 was $13,005 compared to $64,194 at September 30, 2010.

Operational cash flow

We had operating cash outflows in the quarter ended September 30, 2011 of $51,189, and $53,692 in the quarter ended September 30, 2010.  Our primary uses of cash have been for marketing expenses, employee compensation, product development and working capital. All cash we receive has been expended in the furtherance of growing assets.

Investing cash flows

We had cash outflows for investing activities of $2,786 for the quarter ended September 30, 2011, and $2,050 for the quarter ended September 30, 2010.
 
Financing cash flows
 
During the quarter ended September 30, 2011, we received net cash from funding activities of $152,871.  During the quarter ended September 30, 2010 we had net cash outflows of $4,281 from financing activities.

 
12

 
 
Impact of Inflation

The business will have to absorb any inflationary increases on development costs in the short-term, with the expectation that it will be able to pass inflationary increases on costs on to our customers through price increases on the release of these new/enhanced products into the market and hence the management do not expect inflation to be a significant factor in our business.

Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements between us and any other entity 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 of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

Critical Accounting Policies

The discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
 
Management believes that the application of these policies on a consistent basis enables us to provide useful and reliable financial information about our operating results and financial condition.  Some of the critical accounting estimates are detailed below.

Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

As of January 31, 2012, there were no changes in or disagreements with accountants on accounting or financial disclosure matters.
 
Management

Appointment of New Directors

At the Closing Date of the Agreement, Mario Barton resigned as our sole officer.

The following table sets forth the names, ages, and positions of our new executive officers and directors appointed at the Closing Date. Executive officers are elected annually by our Board of Directors.  Each executive officer holds his office until he resigns, is removed by the Board, or his successor is elected and qualified.  Directors are elected annually by our stockholders at the annual meeting.  Each director holds his office until his successor is elected and qualified or his earlier resignation or removal.

NAME
 
  AGE
 
POSITION
John L. Bianco
 
61
 
President/CEO and Director
Mario Barton
 
62
 
Director
D. Bruce Veness
 
60
 
Corporate Secretary/COO and Director
Lisa Bischof
 
43
 
Treasurer/CFO

A brief biography of each officer and director is more fully described in Item 5.02(c).  The information therein is hereby incorporated in this section by reference.
 
Family Relationships

There are no family relationships between any of our directors or executive officers and any other directors or executive officers, except that our President/CEO John L. Bianco is the father of Lisa Bischof, our Treasurer/CFO.
 
 
13

 
 
Involvement in Certain Legal Proceedings
 
To the best of our knowledge, none of our executive officers or directors are parties to any material proceedings adverse to the Company, have any material interest adverse to the Company or have, during the past ten years:
 
  
been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);
 
  
had any bankruptcy petition filed by or against him/her or any business of which he/she was a general partner or executive officer, either at the time of the bankruptcy or within two years prior to that time;
 
  
been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his/her involvement in any type of business, securities, futures, commodities or banking activities;
 
  
been found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;
 
●   
been subject to, or party to, any judicial or administrative order, judgment, decree,  or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation  of (i) any Federal or State securities or commodities law or regulation, (ii) any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order or (iii) any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.
 
Executive Compensation

LEAGUE NOW CORPORATION EXECUTIVE COMPENSATION SUMMARY

Summary Compensation Table

The following summary compensation table sets forth all compensation awarded to, earned by, or paid to the named executive officers during the years ended December 31, 2010, and 2009 in all capacities for the accounts of our executives, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO):

Name and
Principal Position
    Year    
Salary
   
Bonus
   
Stock
Awards
   
Option
Awards
($)(1)
   
Non-
Equity
Incentive
Plan
Compensation
   
Non-
Qualified
Deferred
Compensation
Earnings
   
All Other
Compensation
   
Total
 
                                                 
James Pregiato (1) , Former President, Chief Executive Officer, Secretary, Treasurer
2010
$
12,000
     
-
     
-
     
-
     
-
     
-
           
$
12,000
 
(Principal Executive Officer and Principal Financial Officer)
2009
$
12,000
     
-
     
-
     
-
     
-
     
-
           
$
12,000
 
                                                                 
                                                                 
Mario Barton (2) , Chief Executive Officer, Treasurer, Secretary
2010
$
-
     
-
     
-
     
-
     
-
     
-
     
-
   
$
0
 
(Principal Executive Officer and Principal Financial Officer)
2009
 
-
     
-
     
-
     
-
     
-
     
-
     
-
   
$
-
 
                                                                 
                                                                 
                                                                 
                                                                 
                                                                 
(1)  
James Pregiato served in these offices through October 6, 2010.  
(2)
Mario Barton was appointed to these offices on October 6, 2010.
 
 
14

 
 
Employment Agreements
 
We currently do not have employment agreement with our officers and directors.
 
Compensation of Directors

Directors are permitted to receive fixed fees and other compensation for their services as directors. The Board of Directors has the authority to fix the compensation of directors. No amounts have been paid to, or accrued to, directors in such capacity.

Option Grants Table. There were no individual grants of stock options to purchase our common stock made to the executive officer named in the Summary Compensation Table through to date.
 
Aggregated Option Exercises and Fiscal Year-End Option Value Table. There were no stock options exercised during period ending December 31, 2011 by the executive officer named in the Summary Compensation Table.
 
Long-Term Incentive Plan (‘LTIP’) Awards Table. There were no awards made to a named executive officer in the last completed fiscal year under any LTIP.
 
 
15

 
 
INFINITI EXECUTIVE COMPENSATION SUMMARY

The following table sets forth all cash compensation paid by Infiniti, for the year ended December 31, 2011.  The table below sets forth the positions and compensations for each officer and director of Infiniti.

Name and Principal Position
Year
Salary
($)
Bonus
($)
Stock Awards
Option Awards
Non-Equity Incentive Plan Compensation
Nonqualified Deferred Compensation Earnings
All Other Comp.
($)
Total
($)
John L. Bianco President/Chief Executive Officer
2011
$80,300
-
-
-
-
-
-
$80,300
D. Bruce Veness, Vice President
2011
$74,769
-
-
-
-
-
-
$74,769
Lisa Bischof, Controller
2011
$40,000
-
-
-
-
-
-
$40,000

Employment Agreements
 
We currently do not have employment agreement with our officers and directors.

Compensation of Directors

Directors are permitted to receive fixed fees and other compensation for their services as directors. The Board of Directors has the authority to fix the compensation of directors. No amounts have been paid to, or accrued to, directors in such capacity.

Aggregated Option Exercises and Fiscal Year-End Option Value Table. There were no stock options exercised during period ending December 31, 2011 by the executive officers named in the Summary Compensation Table.
 
Long-Term Incentive Plan (‘LTIP’) Awards Table. There were no awards made to a named executive officer in the last completed fiscal year under any LTIP.
 
 
16

 
 
Principal Stockholders
 
The following table sets forth certain information regarding our Common Shares beneficially owned on January 31, 2012, for (i) each stockholder known to be the beneficial owner of 5% or more of the outstanding Common Shares of the Company, (ii) each executive officer and director, and (iii) all executive officers and directors as a group, on a pro forma basis prior to the Closing of the Combination and Offering.
 
Name and Address
 
Amount and Nature of
Beneficial Ownership
 
Percentage of Class (1)
             
Mr. James Pregiato
4075 Carambola Circle North
Coconut Creek, Florida 33066
   
39,111,136
     
85.4
%
                 
Mr. Mario Barton
11407 North 78th Street
Scottsdale, AZ 85260
   
103,676
     
Less than 1
                 
All Officers and Directors
   
103,676
     
Less than 1
%

 
(1)
Based on 45,803,288 shares outstanding prior to the close of the Merger.
 
Common Stock

The following table sets forth certain information regarding our Common Shares beneficially owned on the Closing Date, for (i) each stockholder known to be the beneficial owner of 5% or more of the outstanding Common Shares of the Company, (ii) each executive officer and director, and (iii) all executive officers and directors as a group.
 
Name and Address
   
Amount and Nature of
Beneficial Ownership
   
Percentage of Class (1)
 
 Mario Barton
11407 North 78th Street
Scottsdale, AZ 85260
   
 
 
103,676
   
Less than 1%
 
               
John L. Bianco
6980 South Edgerton Road
Brecksville, OH 44141
   
29,000,000
   
55.8%
 
               
Lisa Bischof
6980 South Edgerton Road
Brecksville, OH 44141
   
 
 
300.000
   
 
Less than 1%
 
               
D. Bruce Veness
6980 South Edgerton Road
Brecksville, OH 44141
   
700,000
   
Less than 1%
 
               
Mr. James Pregiato
4075 Carambola Circle North
Coconut Creek, Florida 33066
   
13,307,848
   
25.6%
 
               
All Officers and Directors
   
30,103,676
   
57.95%
 

(1)
Based on 51,945,563 shares of common stock issued and outstanding after the close of the Transaction.
 
 
17

 
 
Description of Securities

As of January 31, 2012, our authorized capital stock consists of 100,000,000 shares of common stock, par value $0.001 per share, and 10,000,000 shares of preferred stock, $0.001 par value per share.  As of January 31, 2012 and immediately after Closing, an aggregate of 51,945,563   shares of common stock were outstanding, including shares issued pursuant to the Closing.  

Common Stock    Each outstanding share of common stock entitles the holder thereof to one vote per share on all matters. Stockholders do not have preemptive rights to purchase shares in any future issuance of our common stock. Upon our liquidation, dissolution or winding up, and after payment of creditors and preferred stockholders, if any, our assets will be divided pro-rata on a share-for-share basis among the holders of the shares of common stock.

 The holders of shares of our common stock are entitled to dividends out of funds legally available when and as declared by our board of directors. Our board of directors has never declared a cash dividend and does not anticipate declaring any dividend in the foreseeable future. Should we decide in the future to pay dividends, as a holding company, our ability to do so and meet other obligations depends upon the receipt of dividends or other payments from our operating subsidiaries and other holdings and investments. In addition, our operating subsidiaries, from time to time, may be subject to restrictions on their ability to make distributions to us, including as a result of restrictive covenants in loan agreements, restrictions on the conversion of local currency into U.S. dollars or other hard currency and other regulatory restrictions. In the event of our liquidation, dissolution or winding up, holders of our common stock are entitled to receive, ratably, the net assets available to stockholders after payment of all creditors and preferred stockholders.
 
Preferred Stock . Our Articles of Incorporation also provide that we are authorized to issue up to 10,000,000 shares of preferred stock with a par value of $.001 per share. As of the date of this prospectus, there are no shares of preferred stock issued and outstanding. Our Board of Directors has the authority, without further action by the shareholders, to issue from time to time the preferred stock in one or more series for such consideration and with such relative rights, privileges, preferences and restrictions that the Board may determine. The preferences, powers, rights and restrictions of different series of preferred stock may differ with respect to dividend rates, amounts payable on liquidation, voting rights, conversion rights, redemption provisions, sinking fund provisions and purchase funds and other matters. The issuance of preferred stock could adversely affect the voting power or other rights of the holders of common stock.

Market Price and Dividends on Registrant’s Common Equity and Related Stockholder Matters

Our common stock is quoted on the Over-The-Counter Bulletin Board, under the trading symbol “LNWZ”.   There can be no assurance that a public trading market for our common stock will develop or be sustained.  If such a market is developed, we cannot assure you what the market price of our common stock will be in the future.

Holders

As of January 31, 2012, there are approximately 72 shareholders of our common stock.

Transfer Agent and Registrar

Olde Monmouth Stock Transfer is currently the transfer agent and registrar for our common stock.  Its address is 200 Memorial Parkway, Atlantic Highlands, NJ 07716.  Its phone number is (732) 872-2727.

 Dividend Policy

We have never declared or paid dividends on our common stock.  We intend to retain earnings, if any, to support the development of our business and therefore do not anticipate paying cash dividends for the foreseeable future.  Payment of future dividends, if any, will be at the discretion of our board of directors after taking into account various factors, including current financial condition, operating results and current and anticipated cash needs.

Securities Authorized for Issuance under Equity Compensation Plans

We did not have any equity compensation plans as of December 31, 2009.  Our Board of Directors may adopt an equity compensation plan in the future.
 
 
18

 
 
Certain Relationships and Related Transactions

Marketing Joint Venture - The Company is a party to a marketing joint venture agreement dated April 29, 2008, with Pure Motion Ventures, LLC, (“Ventures”) which is owned by four of the Company’s shareholders, including one of the principal shareholders. The agreement provides that Ventures will participate with the Company in television and internet marketing of the Company’s consumer putting system. The agreement provides that the Company will receive 40% of the profits of the venture. During 2009, sales of inventory to Ventures totaled $29,836. As of December 31, 2009, there were no profit distributions accrued.
 
Review, Approval and Ratification of Related Party Transactions

Given our small size and limited financial resources, we had not adopted prior to the closing of the Agreement formal policies and procedures for the review, approval or ratification of transactions, such as those described above, with our executive officers, directors and significant shareholders.  However, we intend that such transactions will, on a going-forward basis, be subject to the review, approval or ratification of our board of directors, or an appropriate committee thereof.

Legal Proceedings

Currently there are no outstanding judgments against the Company or any consent decrees or injunctions to which the Company is subject or by which its assets are bound and there are no claims, proceedings, actions or lawsuits in existence, or to the Company’s knowledge threatened or asserted, against the Company or with respect to any of the assets of the Company that would materially and adversely affect the business, property or financial condition of the Company, including but not limited to environmental actions or claims. However, from time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business.  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.

 Indemnification of Directors and Officers

 The General Corporation Law of Florida provides that directors, officers, employees or agents of Florida corporations are entitled, under certain circumstances, to be indemnified against expenses (including attorneys' fees) and other liabilities actually and reasonably incurred by them in connection with any suit brought against them in their capacity as a director, officer, employee or agent, if they acted in good faith and in a manner they reasonably believed to be in or not opposed to the best interests of the corporation, and with respect to any criminal action or proceeding, if they had no reasonable cause to believe their conduct was unlawful. This statute provides that directors, officers, employees and agents may also be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by them in connection with a derivative suit brought against them in their capacity as a director, if they acted in good faith and in a manner they reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification may be made without court approval if such person was adjudged liable to the corporation.

Our Certificate of Incorporation provides that we shall indemnify any and all persons whom we shall have power to indemnify to the fullest extent permitted by the Florida Corporate Law. Article VII of our By-Laws provides that we shall indemnify our authorized representatives to the fullest extent permitted by the Florida Law. Our By-Laws also permit us to purchase insurance on behalf of any such person against any liability asserted against such person and incurred by such person in any capacity, or out of such person's status as such, whether or not we would have the power to indemnify such person against such liability under the foregoing provision of the by-laws.

Item 3.02  Unregistered Sales of Equity Securities

Pursuant to the Agreement, on January 31, 2012, the Infiniti Shareholders acquired 30,000,000 post-split common shares of League Now.  Such securities were not registered under the Securities Act.  These securities qualified for exemption under Section 4(2) of the Securities Act since the issuance of securities by us did not involve a public offering. The offering was not a “public offering” as defined in Section 4(2) due to the insubstantial number of persons involved in the transaction, size of the offering, manner of the offering and number of securities offered. We did not undertake an offering in which we sold a high number of securities to a high number of investors. In addition, these shareholders had the necessary investment intent as required by Section 4(2) since they agreed to and received share certificates bearing a legend stating that such securities are restricted pursuant to Rule 144 of the Securities Act. This restriction ensures that these securities would not be immediately redistributed into the market and therefore not be part of a “public offering.” Based on an analysis of the above factors, we have met the requirements to qualify for exemption under Section 4(2) of the Securities Act for this transaction.

Item 5.01  Changes in Control of Registrant

As explained more fully in Item 1.01, in connection with the Agreement, on January 31, 2012, the Infiniti Shareholders acquired 30,000,000 common shares of League Now in exchange for 100% of the Infiniti Stock.  As such, immediately following the Acquisition, the Infiniti Shareholders hold 60.0 % of the total issued and outstanding common stock of the Company.
 
In connection with the Closing of the Acquisition and as explained more fully in Item below in Item 5.02 of this Current Report on Form 8-K, Mario Barton resigned from his offices with the Company.  The disclosures included in Item 5.02 are incorporated herein by this reference.
 
 
19

 
 
Item 5.02  Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
 
On January 20, 2012, the Board of Directors of the Company elected Mario Barton, John Bianco and D. Bruce Veness to serve as Directors of the Company.  The Board also elected John Bianco to serve as the President and Chief Executive Officer, Lisa Bischof to serve as Treasurer and Chief Financial Officer and Bruce Veness to serve as Secretary and Chief Operating Officer.

(a)    Resignation of Officers

On the Closing Date, Mario Barton resigned as our President, Treasurer, Secretary, Chief Executive Officer and Chief Financial Officer. The resignation was not the result of any disagreement with us on any matter relating to our operations, policies or practices.

(b)   Appointment of Directors and Officers

The following persons were appointed as to the positions listed by their name in the table below at Closing:
 
NAME
 
  AGE
 
POSITION
John L. Bianco
 
61
 
President/CEO and Director
Mario Barton
 
62
 
Director
D. Bruce Veness
 
60
 
Corporate Secretary/COO and Director
Lisa Bischof
 
43
 
Treasurer/CFO

The business background descriptions of the newly appointed director and officer are as follows:

John L. Bianco, President/CEO and Director

Since 1995, Mr. Bianco has served as the founder and chief executive officer of Infiniti Systems Group, Inc.  Prior to this, Mr. Bianco was the Vice President and Divisional Manager of Systemation for over 20 years until it was sold to Cap Gemini in 1989.  Mr. Bianco remained with Cap Gemini until he founded Infiniti.  Mr. Bianco is a member of the Society of Information Management and acting CIO for many companies in an outsourced IT environment.  He also serves on several advisory boards for colleges in northeaster Ohio, helping to develop and maintain IT educational interest for college majors.

D. Bruce Veness, Corporate Secretary/COO and Director
 
Since 2005, Mr. Veness has served as the Vice President of Infiniti Systems Group, Inc., responsible for marketing plan development and execution, recruiting oversight, customer and channel partner contracts and general business operations.  Prior to joining Infiniti, Mr. Veness was the President and CEO of MV3 Innovations, LLC.  MV3 offered a variety of ASP products, featuring Corporate University, a learning management system that facilitated development, delivery and administration of Web-based training programs.  Prior to joining MV3, Mr. Veness was the Vice President of Sales Operations for QRS Corporation.  QRS is a $145 million publicly-held corporation that provides network, e-Commerce, and value-added application services for the retail B2B industry.  Mr. Veness was responsible for all sales support functions including budget management, training, professional services/consulting, contract and compensation management.  In 1995, QRS acquired ShipNet Systems, where Mr. Veness was a principle.  He managed all customer facing activities for ShipNet, whose primary offering was a logistics management service, also in an ASP environment.

Lisa Bischof, Treasurer/CFO

Ms. Bischof is currently the Accounting Manager and Controller for Infiniti System Group, Inc., and has been a key contributor to the Company’s success over the last 8 years.  Ms. Bischof attended Ohio University where she majored in Business Administration.

Mario Barton , Director

Mario Barton was the sole officer of the Company prior to the Company’s acquisition of Infiniti Systems Group, Inc.  Prior to that, for the past five years, prior to the Corporation’s acquisition of Pure Motion, Inc., Mr. Barton served as Chief Executive Officer of Pure Motion, Inc. Mr. Barton attended the University of California at Los Angeles from 1969  to 1974.

Family Relationships

There are no family relationships between any of our directors or executive officers and any other directors or executive officers, except that our President/CEO John L. Bianco is the father of Lisa Bischof, our Treasurer/CFO.
 
 
20

 
 
Employment Agreements of the Executive Officers

As of January 31, 2012, do not have employment agreement with our officers and directors.

Item 9.01 Financial Statement and Exhibits

 
(a)
Financial Statements of Businesses Acquired .

The Audited Financial Statements of Infiniti Systems Group, Inc. for the years ended December 31, 2009 and 2010 are filed as Exhibit 99.1 to this current report and are incorporated herein by reference.

 
(b)
Financial Statements of Businesses Acquired .

The Unaudited Financial Statements of Infiniti Systems Group, Inc. for the nine months ended September 30, 2011 and 2012 are filed as Exhibit 99.3 to this current report and are incorporated herein by reference.

 
(c)
Pro Forma Financial Information.

The Pro Forma Financial Information is filed as Exhibit 99.2   to this Current Report and is incorporated herein by reference.
 
Exhibits

Exhibit No.
 
Description
     
2.1
 
Stock Purchase Agreement and Share Exchange by and between League Now Holdings Corporation and Infiniti Systems, Group, Inc., dated January 30, 2012
     
3.1
 
Articles of Incorporation (incorporated by reference to Exhibit 3.1 to  League Now Holdings Corporation’s Registration Statement on Form SB-2, filed on February 1, 2008)
     
3.2
 
Bylaws (incorporated by reference to Exhibit 3.2 to  League Now Holdings Corporation’s Registration Statement on Form SB-2 filed on February 1, 2008)
     
99.1
 
The Audited Financial Statements of Infiniti Systems Group, Inc. for the years ended December 31, 2009 and 2010
     
99.2
 
The Pro Forma Financial Information
     
99.3
 
The Unaudited Financial Statements of Infiniti Systems Group, In. for the nine months ended September 30, 2010 and 2011
 
 
21

 
 
Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

LEAGUE NOW HOLDINGS CORPORATION
 
     
       
Date: February 7, 2012
By:
/s/John Bianco
 
   
John Bianco
 
   
President and Chief Executive Officer
 

 
 
22

 
EX-2.1 2 f8k012012ex2i_leaguenow.htm STOCK PURCHASE AGREEMENT f8k012012ex2i_leaguenow.htm
Exhibit 2.1

STOCK PURCHASE AGREEMENT AND SHARE EXCHANGE



by and among

LEAGUE NOW HOLDINGS, INC.

a Florida Corporation;

and

INFINITI SYSTEMS GROUP, INC.

an Ohio Corporation










effective as of December 31, 2011
 
 
 

 

Table of Contents
 
ARTICLE I
 
1
REPRESENTATIONS, COVENANTS AND WARRANTIES OF LEAGUE NOW
1
Section 1.1
 Organization.
1
Section 1.2
 Capitalization.
2
Section 1.3
 Subsidiaries.
2
Section 1.4
 Tax Matters: Books and Records.
2
Section 1.5
 Litigation and Proceedings.
2
Section 1.6
 Material Contract Defaults.
2
Section 1.7      
 Information. 2
Section 1.8       
 Title and Related Matters. 2
Section 1.9    
 Contracts. 3
Section  1.10    
 Compliance With Laws and Regulations. 3
Section 1.11
 Approval of Agreement 3
Section 1.12 
 Material Transactions or Affiliations. 3
Section 1.13
 No Conflict With Other Instruments.
4
Section 1.14
 Governmental Authorizations.
4
Section 1.15
 Ownership of Stock.
4
ARTICLE II
  
4
REPRESENTATIONS, COVENANTS AND WARRANTIES OF INFINITI
4
Section 2.1
 Organization.
4
Section 2.2
 Capitalization.
5
Section 2.3
 Subsidiaries.
5
Section 2.4
 Tax Matters, Books & Records.
5
Section 2.5
 Information.
5
Section 2.6
 Title and Related Matters.
5
Section 2.7
 Litigation and Proceedings.
5
Section 2.8
 Contracts.
6
Section 2.9
 No Conflict With Other Instruments.
6
Section 2.10
 Material Contract Defaults.
6
Section 2.11
 Governmental Authorizations.
6
Section 2.12
 Compliance With Laws and Regulations.
7
Section 2.13
 Insurance.
7
Section 2.14
 Approval of Agreement.
7
Section 2.15
 Material Transactions or Affiliations.
7
ARTICLE III
 
7
EXCHANGE PROCEDURE AND OTHER CONSIDERATION
7
Section 3.1
 Share Exchange/Delivery of Infiniti Securities.
7
   Issuance and Delivery of League Now Shares. 7
Section 3.2     
7
Section 3.3
 Intentionally Omitted.
7
Section 3.4
 Events Prior to Closing.
8
Section 3.5
 Closing.
8
Section 3.6        Effective Date 8
Section 3.7
 Termination.
8
Section 3.8
 Directors of League Now After Acquisition.
9
Section 3.9
 Officers of League Now.
9
 
 
i

 
 
ARTICLE IV
 
9
SPECIAL COVENANTS
9
Section 4.1
 Access to Properties and Records.
9
Section 4.2
 Availability of Rule 144.
9
Section 4.3
 Special Covenants and Representations Regarding the League Now Common Shares to be Issued in the Exchange.
10
Section 4.4
 Third Party Consents.
10
Section 4.5
 Actions Prior to and Subsequent to Closing.
10
Section 4.6
 Indemnification.
11
     Section 4.7
 Anti-Dilution
11
ARTICLE V
 
12
CONDITIONS PRECEDENT TO OBLIGATIONS OF LEAGUE NOW
12
Section 5.1
 Accuracy of Representations.
12
Section 5.2
 Director Approval.
12
Section 5.3
 Officer's Certificate.
12
Section 5.4
 No Material Adverse Change.
12
Section 5.5
 Financial Statements.
12
Section 5.6
 Other Items.
12
ARTICLE VI
 
13
CONDITIONS PRECEDENT TO OBLIGATIONS OF INFINITI
13
Section 6.1
 Accuracy of Representations.
13
Section 6.2       Director Approval. 13
Section 6.3
 Officer's Certificate.
13
Section 6.4
 No Material Adverse Change.
13
Section 6.5
 1934 Exchange Act Compliance.
13
 
 
ii

 
 
ARTICLE VII
  
13
MISCELLANEOUS
13
Section 7.1
 Brokers and Finders.
13
Section 7.2
 Law, Forum and Jurisdiction.
14
Section 7.3
 Notices.
14
Section 7.4
 Attorneys' Fees.
14
Section 7.5
 Confidentiality.
14
Section 7.6
 Schedules; Knowledge.
15
Section 7.7
 Third Party Beneficiaries.
15
Section 7.8
 Entire Agreement.
15
Section 7.9
 Survival; Termination.
15
Section 7.10
 Counterparts.
15
Section 7.11
 Amendment or Waiver.
15
Section 7.12
 Expenses.
15
Section 7.13
 Headings; Context.
15
Section 7.14
 Benefit.
15
Section 7.15
 Public Announcements.
16
Section 7.16
 Severability.
16
Section 7.17
 Failure of Conditions; Termination.
16
Section 7.18
 No Strict Construction.
16
Section 7.19
 Execution Knowing and Voluntary.
16
Section 7.20     Amendment. 16
 
16
     
     
 
 
iii

 

 
STOCK PURCHASE AGREEMENT AND SHARE EXCHANGE
 
THIS STOCK PURCHASE AGREEMENT AND SHARE EXCHANGE, made and entered into as of this 31st day of December, 2011 (the “Agreement”), by and between League Now Holdings, Inc., a Florida corporation with its principal place of business located at 5601 West Spring Parkway, Plano, TX 775021 (“League Now"); and Infiniti Systems Group, Inc., an Ohio corporation with its principal place of business at 6980 South Edgerton Road, Brecksville, Ohio 44141 (“Infiniti”).
 
WHEREAS, this Agreement provides for the acquisition of Infiniti whereby Infiniti shall become a wholly owned subsidiary of League Now and in connection therewith, the issuance of 30 million (30,000,000) total of shares of League Now common stock, which will represent, and equate to, 60% of the issued and outstanding common stock to Infiniti after the transaction is closed.
 
WHEREAS, the boards of directors of League Now and Infiniti have determined, subject to the terms and conditions set forth in this Agreement, that the transaction contemplated hereby is desirable and in the best interests of their stockholders, respectively.  This Agreement is being entered into for the purpose of setting forth the terms and conditions of the proposed acquisition.
 
Agreement
NOW, THEREFORE, on the stated premises and for and in consideration of the mutual covenants and agreements hereinafter set forth and the mutual benefits to the parties to be derived herefrom, it is hereby agreed as follows:

ARTICLE I
REPRESENTATIONS, COVENANTS AND WARRANTIES OF LEAGUE NOW
 
 
As an inducement to and to obtain the reliance of Infiniti, League Now represents and warrants as follows:
 
Section 1.1  Organization.  League Now is a corporation duly organized, validly existing, and in good standing under the laws of Florida and has the corporate power and is duly authorized, qualified, franchised and licensed under all applicable laws, regulations, ordinances and orders of public authorities to own all of its properties and assets and to carry on its business in all material respects as it is now being conducted, including qualification to do business as a foreign corporation in the jurisdiction in which the character and location of the assets owned by it or the nature of the business transacted by it requires qualification.  Included in the Schedules attached hereto (hereinafter defined) are complete and correct copies of the articles of incorporation, bylaws and amendments thereto as in effect on the date hereof.  The execution and delivery of this Agreement does not and the consummation of the transactions contemplated by this Agreement in accordance with the terms hereof will not violate any provision of League Now’s articles of incorporation or bylaws.  League Now has full power, authority and legal right and has taken all action required by law, its articles of incorporation, its bylaws or otherwise to authorize the execution and delivery of this Agreement.
 
 
1

 
 
Section 1.2  Capitalization.  The authorized capitalization of League Now consists of 100,000,000 shares of common stock, $0.001 par value per share; and 10,000,000 shares of preferred stock, $0.001 par value.  As of the date hereof, League Now has 45,748,288 common shares issued and outstanding; and no share of preferred stock issued and outstanding.
 
All issued and outstanding shares are legally issued, fully paid and nonassessable and are not issued in violation of the preemptive or other rights of any person.  There are no securities, warrants or options authorized or issued.

Section 1.3  Subsidiaries.  League Now has no subsidiaries.
 
Section 1.4  Tax Matters: Books and Records.
 
(a)  
The books and records, financial and others, of League Now are in all material respects complete and correct and have been maintained in accordance with good business accounting practices; and

(b)  
League Now has no liabilities with respect to the payment of any country, federal, state, county, or local taxes (including any deficiencies, interest or penalties).
 
Section 1.5  Litigation and Proceedings.  There are no actions, suits, proceedings or investigations pending or threatened by or against or affecting League Now or its properties, at law or in equity, before any court or other governmental agency or instrumentality, domestic or foreign or before any arbitrator of any kind that would have a material adverse affect on the business, operations, financial condition or income of League Now.  League Now is not in default with respect to any judgment, order, writ, injunction, decree, award, rule or regulation of any court, arbitrator or governmental agency or instrumentality or of any circumstances which, after reasonable investigation, would result in the discovery of such a default.
 
Section 1.6  Material Contract Defaults.  League Now is not in default in any material respect under the terms of any outstanding contract, agreement, lease or other commitment which is material to the business, operations, properties, assets or condition of League Now, and there is no event of default in any material respect under any such contract, agreement, lease or other commitment in respect of which League Now has not taken adequate steps to prevent such a default from occurring.
 
Section 1.7  Information.  The information concerning League Now as set forth in this Agreement and in the attached Schedules is complete and accurate in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact required to make the statements made in light of the circumstances under which they were made, not misleading.
 
Section 1.8  Title and Related Matters. League Now does not have substantial assets, however, League Now has good and marketable title to and is the sole and exclusive owner of all of its properties, inventory, interest in properties and assets, real and personal (collectively, the “Assets”) free and clear of all liens, pledges, charges or encumbrances.  League Now owns free and clear of any liens, claims, encumbrances, royalty interests or other restrictions or limitations of any nature whatsoever and all procedures, techniques, marketing plans, business plans, methods of management or other information utilized in connection with League Now’s business.   No third party has any right to, and League Now has not received any notice of infringement of or conflict with asserted rights of other with respect to any product, technology, data, trade secrets, know-how, proprietary techniques, trademarks, service marks, trade names or copyrights which, singly on in the aggregate, if the subject of an unfavorable decision ruling or finding, would have a materially adverse affect on the business, operations, financial conditions or income of League Now or any material portion of its properties, assets or rights.
 
 
2

 
 
Section 1.9  Contracts. On the closing date:

(a)  
Other than as set forth on the most recent public filings for League Now, there are no material contracts, agreements, franchises, license agreements, or other commitments to which League Now is a party or by which it or any of its properties are bound;

(b)
League Now is not a party to any contract, agreement, commitment or instrument or subject to any charter or other corporate restriction or any judgment, order, writ, injunction, decree or award materially and adversely affects, or in the future may (as far as League Now can now foresee) materially and adversely affect, the business, operations, properties, assets or conditions of League Now; and

(c)  
League Now is not a party to any material oral or written: (i) contract for the employment of any officer or employee; (ii) profit sharing, bonus, deferred compensation, stock option, severance pay, pension benefit or retirement plan, agreement or arrangement covered by Title IV of the Employee Retirement Income Security Act, as amended; (iii)  agreement, contract or indenture relating to the borrowing of money; (iv) guaranty of any obligation for the borrowing of money or otherwise, excluding endorsements made for collection and other guaranties, of obligations, which, in the aggregate exceeds $1,000; (v) consulting or other contract with an unexpired term of more than one year or providing for payments in excess of $10,000 in the aggregate; (vi) collective bargaining agreement; and (vii) contract, agreement or other commitment involving payments by it for more than $10,000 in the aggregate.
 
Section  1.10  Compliance With Laws and Regulations. To the best of League Now’s knowledge and belief, League Now has complied with all applicable statutes and regulations of any federal, state or other governmental entity or agency thereof, except to the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets or condition of League Now or would not result in League Now incurring material liability.
 
Section 1.11  Approval of Agreement. The directors of League Now have authorized the execution and delivery of this Agreement and have approved the transactions contemplated.  A copy of the Director’s Resolution authorizing entry into this Agreement is attached as Schedule 1.11.
 
Section 1.12  Material Transactions or Affiliations.  There are no material contracts or agreements of arrangement between League Now and any person, who was at the time of such contract, agreement or arrangement an officer, director or person owning of record, or known to beneficially own ten percent (10%) or more of the issued and outstanding Common Shares of League Now and which is to be performed in whole or in part after the date hereof.  League Now has no commitment, whether written or oral, to lend any funds to, borrow any money from or enter into material transactions with any such affiliated person.
 
 
3

 
 
Section 1.13  No Conflict With Other Instruments.  The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, or constitute an event of default under, any material indenture, mortgage, deed of trust or other material contract, agreement or instrument to which League Now is a party or to which any of its properties or operations are subject.

Section 1.14  Governmental Authorizations. League Now has all licenses, franchises, permits or other governmental authorizations legally required to enable it to conduct its business in all material respects as conducted on the date hereof.  Except for compliance with federal and state securities and corporation laws, as hereinafter provided, no authorization, approval, consent or order of, or registration, declaration or filing with, any court or other governmental body is required in connection with the execution and delivery by League Now of this Agreement and the consummation of the transactions contemplated hereby.

Section 1.15  Ownership of Stock. League Now is the lawful owners of the stock to be exchanged with Infiniti or its designees and shall be free and clear of all liens, encumbrances, restrictions and claims of every kind and character, other than any of the foregoing arising from actions by Infiniti (collectively, "Encumbrances") as of the Closing Date. The delivery to Infiniti of the stock pursuant to the provisions of this Agreement will transfer to Infiniti valid title thereto, free and clear of any and all Encumbrances.
 
ARTICLE II
REPRESENTATIONS, COVENANTS AND WARRANTIES OF INFINITI

As an inducement to, and to obtain the reliance of League Now, Infiniti represents and warrants as follows:
 
Section 2.1  Organization.  Infiniti is a corporation duly organized, validly existing and in good standing under the laws of the State of Ohio and has the corporate power and is duly authorized, qualified, franchised and licensed under all applicable laws, regulations, ordinances and orders of public authorities to own all of its properties and assets and to carry on its business in all material respects as it is now being conducted, including qualification to do business as a foreign entity in the country or states in which the character and location of the assets owned by it or the nature of the business transacted by it requires qualification.  Included in the attached Schedules (as hereinafter defined) are complete and correct copies of the articles of incorporation, bylaws and amendments thereto as in effect on the date hereof.  The execution and delivery of this Agreement does not and the consummation of the transactions contemplated by this Agreement in accordance with the terms hereof will not, violate any provision of Infiniti’s certificate of incorporation or bylaws.  Infiniti has full power, authority and legal right and has taken all action required by law, its articles of incorporation, bylaws or otherwise to authorize the execution and delivery of this Agreement.
 
 
4

 
 
Section 2.2  Capitalization.  Infiniti’s authorized capitalization consists of a total of 750 shares of Common Stock no par value, of which 100 shares are issued and outstanding, held by the individuals and entities listed on Schedule 2.2.
 
All issued and outstanding common shares have been legally issued, fully paid, are nonassessable and not issued in violation of the preemptive rights of any other person.  Infiniti has no other securities, warrants or options authorized or issued.

Section 2.3  Subsidiaries.  Infiniti has no subsidiaries.
 
Section 2.4  Tax Matters, Books & Records.
 
(a)  
Infiniti’s books and records, financial and others are in all material respects complete and correct and have been maintained in accordance with good business accounting practices;

(b)  
Infiniti has no liabilities with respect to the payment of any country, federal, state, county, local or other taxes (including any deficiencies, interest or penalties); and

(c)  
Infiniti shall remain responsible for all debts incurred prior to the closing.
 
Section 2.5  Information.  The information concerning Infiniti as set forth in this Agreement and in the attached Schedules is complete and accurate in all material respects and does not contain any untrue statement of a material fact or omit a material fact required to make the statements made, in light of the circumstances under which they were made, not misleading.
 
Section 2.6  Title and Related Matters.  Infiniti has good and marketable title to and is the sole and exclusive owner of all of its properties, inventory, interests in properties and assets, real and personal (collectively, the "Assets") free and clear of all liens, pledges, charges or encumbrances.  Except as set forth in the attached Schedules, Infiniti owns free and clear of any liens, claims, encumbrances, royalty interests or other restrictions or limitations of any nature whatsoever and all procedures, techniques, marketing plans, business plans, methods of management or other information utilized in connection with Infiniti’s business.  Except as set forth in the attached Schedules, no third party has any right to, and Infiniti has not received any notice of infringement of or conflict with asserted rights of others with respect to any product, technology, data, trade secrets, know-how, proprietary techniques, trademarks, service marks, trade names or copyrights which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a materially adverse affect on the business, operations, financial conditions or income of Infiniti or any material portion of its properties, assets or rights.
 
Section 2.7  Litigation and Proceedings.  There are no actions, suits or proceedings pending or threatened by or against or affecting Infiniti, at law or in equity, before any court or other governmental agency or instrumentality, domestic or foreign or before any arbitrator of any kind that would have a material adverse effect on the business, operations, financial condition, income or business prospects of Infiniti.  Infiniti does not have any knowledge of any default on its part with respect to any judgment, order, writ, injunction, decree, award, rule or regulation of any court, arbitrator or governmental agency or instrumentality.
 
 
5

 
 
Section 2.8  Contracts. On the Closing Date:

(a)  
Except for those enumerated on the attached Schedules, there are no material contracts, agreements, franchises, license agreements, or other commitments to which Infiniti is a party to or by which it or any of its subsidiaries or properties are bound;

(b)  
Except as enumerated on the attached Schedules, Infiniti is not a party to any contract, agreement, commitment or instrument or subject to any charter or other corporate restriction or any judgment, order, writ, injunction, decree or award which materially and adversely affects, or in the future may (as far as Infiniti can now foresee) materially and adversely affect, the business, operations, properties, assets or conditions of Infiniti; and

(c)  
Except as enumerated on the attached Schedules, Infiniti is not a party to any material oral or written: (i) contract for the employment of any officer or employee; (ii) profit sharing, bonus, deferred compensation, stock option, severance pay, pension, benefit or retirement plan, agreement or arrangement covered by Title IV of the Employee Retirement Income Security Act, as amended; (iii) agreement, contract or indenture relating to the borrowing of money; (iv) guaranty of any obligation for the borrowing of money or otherwise, excluding endorsements made for collection and other guaranties of obligations, which, in the aggregate exceeds $1,000; (v) consulting or other contract with an unexpired term of more than one year or providing for payments in excess of $10,000 in the aggregate; (vi) collective bargaining agreement; and (vii) contract, agreement, or other commitment involving payments by it for more than $10,000 in the aggregate.
 
Section 2.9  No Conflict With Other Instruments.  The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, or constitute an event of default under, any material indenture, mortgage, deed of trust or other material contract, agreement or instrument to which Infiniti is a party or to which any of its properties or operations are subject.
 
Section 2.10  Material Contract Defaults.  To the best of Infiniti’s knowledge and belief, it is not in default in any material respect under the terms of any outstanding contract, agreement, lease or other commitment which is material to the business, operations, properties, assets or condition of Infiniti, and there is no event of default in any material respect under any such contract, agreement, lease or other commitment in respect of which Infiniti has not taken adequate steps to prevent such a default from occurring.
 
Section 2.11  Governmental Authorizations. To the best of Infiniti’s knowledge, Infiniti has all licenses, franchises, permits and other governmental authorizations that are legally required to enable it to conduct its business operations in all material respects as conducted on the date hereof.  Except for compliance with federal and state securities or corporation laws, no authorization, approval, consent or order of, or registration, declaration or filing with, any court or other governmental body is required in connection with the execution and delivery by Infiniti of the transactions contemplated hereby.
 
 
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Section 2.12  Compliance With Laws and Regulations.  To the best of Infiniti’s knowledge and belief, Infiniti has complied with all applicable statutes and regulations of any federal, state or other governmental entity or agency thereof, except to the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets or condition of Infiniti or would not result in Infiniti’s incurring any material liability.

Section 2.13  Insurance.  All of Infiniti’s insurable properties are insured for Infiniti’s ‘s benefit under valid and enforceable policy or policies containing substantially equivalent coverage and will be outstanding and in full force at the Closing Date.
 
Section 2.14  Approval of Agreement.  The directors of Infiniti have authorized the execution and delivery of this Agreement and have approved the transactions contemplated hereby.
 
Section 2.15  Material Transactions or Affiliations.  As of the Closing Date, there will exist no material contract, agreement or arrangement between Infiniti and any person who was at the time of such contract, agreement or arrangement an officer, director or person owning of record, or known by Infiniti to own beneficially, ten percent (10%) or more of the issued and outstanding Common Shares of Infiniti.  Infiniti has no commitment, whether written or oral, to lend any funds to, borrow any money from or enter into any other material transactions with, any such affiliated person.


ARTICLE III
EXCHANGE PROCEDURE AND OTHER CONSIDERATION
 
Section 3.1  Share Exchange/Delivery of Infiniti Securities.  On the Closing Date, Infiniti shall deliver to League Now all of its issued and outstanding shares, duly endorsed in blank or with executed power attached thereto in transferable form, so that Infiniti shall become a wholly owned subsidiary of League Now.
 
Section 3.2  Issuance of League Now Shares.  In exchange for all of the Infiniti Common Shares tendered pursuant to Section 3.1, League Now shall issue to Infiniti shareholders listed on Schedule 3.2 hereof a total of 30 million (30,000,000) common shares of League Now, which will represent, and equate to 60% of League Now’s issued and outstanding common stock after the closing of this transaction on a fully diluted basis, in the manner set forth in Schedule 3.2.  Such shares are restricted in accordance with Rule 144 of the 1933 Securities Act.
 
Section 3.3  Special Voting Rights.  A portion of the shares of League Now common stock issued to the Infiniti shareholders on the Closing Date equal to 30 million (30,000,000) shares (the “Super Voting Shares”), shall have voting rights equal to five (5) shares of common stock on all issues brought before the shareholders of League Now; provided, however, that (a) the dividend rights attributable to the Super Voting Shares shall not differ from those of the class of shares of common stock held by other shareholders of League Now; (b) the special voting rights of the Super Voting Shares will terminate upon the transfer, sale, pledge or other alienation of such Super Voting Shares from the possession of the Infiniti shareholders; and (c) such special voting rights for the Super Voting Shares shall not extend to issues whereby other shares of League Now may become diluted, reverse-split or subject to any other adverse conditions; and (d) such special voting rights for the Super Voting Shares shall not extend to the declaration of special dividends or increases in salaries or bonuses which have not been consented to by the Board of Directors of the Company.
 
 
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Section 3.4  Events Prior to Closing.  Upon execution hereof or as soon thereafter as practical, management of Infiniti and League Now shall execute, acknowledge and deliver (or shall cause to be executed, acknowledged and delivered) any and all certificates, opinions, financial statements, schedules, agreements, resolutions rulings or other instruments required by this Agreement to be so delivered, together with such other items as may be reasonably requested by the parties hereto and their respective legal counsel in order to effectuate or evidence the transactions contemplated hereby, subject only to the conditions to Closing referenced herein below.

Section 3.5  Closing.  The closing ("Closing Date") of the transactions contemplated by this Agreement shall be on the date and at the time the exchange documents are executed herewith.
 
Section 3.6  Effective Date.  The date, on or after the Closing Date, when all of the terms and conditions of this Agreement are satisfied, including but not limited to the Conditions Precedent set forth in Articles V and VI (the “Effective Date”).
 
Section 3.7  Termination.
 
(a)  
This Agreement may be terminated by the board of directors or majority interest of shareholders of either Infiniti or League Now, respectively, at any time prior to the Closing Date if:

(i)  
there shall be any action or proceeding before any court or any governmental body which shall seek to restrain, prohibit or invalidate the transactions contemplated by this Agreement and which, in the judgment of such board of directors, made in good faith and based on the advice of its legal counsel, makes it inadvisable to proceed with the exchange contemplated by this Agreement; or

(ii)  
any of the transactions contemplated hereby are disapproved by any regulatory authority whose approval is required to consummate such transactions.
 
In the event of termination pursuant to Paragraph (a) of this Section 3.7, no obligation, right, or liability shall arise hereunder and each party shall bear all of the expenses incurred by it in connection with the negotiation, drafting and execution of this Agreement and the transactions herein contemplated.

(b)  
This Agreement may be terminated at any time prior to the Closing Date by action of the board of directors of League Now if Infiniti shall fail to comply in any material respect with any of its covenants or agreements contained in this Agreement or if any of the representations or warranties of Infiniti contained herein shall be inaccurate in any material respect, which noncompliance or inaccuracy is not cured after 20 days written notice thereof is given to Infiniti.  If this Agreement is terminated pursuant to Paragraph (b) of this Section 3.7, this Agreement shall be of no further force or effect and no obligation, right or liability shall arise hereunder.
 
 
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(c)  
This Agreement may be terminated at any time prior to the Closing Date by action of the board of directors of Infiniti if League Now shall fail to comply in any material respect with any of its covenants or agreements contained in this Agreement or if any of the representations or warranties of League Now contained herein shall be inaccurate in any material respect, which noncompliance or inaccuracy is not cured after 20 days written notice thereof is given to League Now.  If this Agreement is terminated pursuant to Paragraph (c) of this Section 3.7, this Agreement shall be of no further force or effect and no obligation, right or liability shall arise hereunder.
 
In the event of termination pursuant to paragraph (b) and (c) of Section 3.7, the breaching party shall bear all of the expenses incurred by the other party in connection with the negotiation, drafting and execution of this Agreement and the transactions herein contemplated.
 
Section 3.8  Directors of League Now After Acquisition.  At the Closing Date, a resolution of the Board of Directors of League Now will become effective increasing the Board to five (5) directors and providing that the Board shall be appointed by Infiniti upon the provision of notice of a Special Meeting  or a waiver thereof by holders of the majority of the outstanding shares of League Now.  The new directors will be the ones listed on Schedule 3.8 attached hereto.  The Board resolution will be substantially in the form of Exhibit 3.8 attached hereto.

Section 3.9  Officers of League Now.  Upon the Closing, the persons listed on Schedule 3.9 shall be appointed as Officers of League Now.


ARTICLE IV
SPECIAL COVENANTS
 
Section 4.1  Access to Properties and Records.  Prior to Closing, Infiniti and League Now have each afforded to the officers and authorized representatives of the other full access to the properties, books and records of each other, so that each has had full opportunity to make such reasonable investigation as it desired to make of the affairs of the other and each has furnished the other with such additional financial and operating data and other information as to the business and properties of each other, as the other shall from time to time reasonably request.
 
Section 4.2  Availability of Rule 144.  League Now and its shareholders holding “restricted securities,” as that term is defined in Rule 144 of the 1933 Securities Act will remain as “restricted securities.”  League Now is under no obligation to register such shares under the Securities Act, or otherwise.  The stockholders of Infiniti and League Now holding restricted securities of Infiniti and League Now as of the date of this Agreement and their respective heirs, administrators, personal representatives, successors and assigns, are intended third party beneficiaries of the provisions set forth herein.  The covenants set forth in this Section 4.2 shall survive the Closing Date and the consummation of the transactions herein contemplated.
 
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Section 4.3  Special Covenants and Representations Regarding the League Now Common Shares to be Issued in the Exchange.  The consummation of this Agreement, including the issuance of the League Now Common Shares to the shareholders of Infiniti as contemplated hereby, constitutes the offer and sale of securities under the Securities Act, and applicable state statutes.  Such transaction shall be consummated in reliance on exemptions from the registration and prospectus delivery requirements of such statutes which depend, inter alia, upon the circumstances under which the shareholders of Infiniti acquire such securities.

Section 4.4  Third Party Consents.  League Now and Infiniti agree to cooperate with each other in order to obtain any required third party consents to this Agreement and the transactions herein contemplated.
 
Section 4.5  Actions Prior to and Subsequent to Closing.
 
(a)  
From and after the date of this Agreement until the Closing Date, except as permitted or contemplated by this Agreement, League Now and Infiniti will each use its best efforts to:

(i)  
maintain and keep its properties in states of good repair and condition as at present, except for depreciation due to ordinary wear and tear and damage due to casualty;
(ii)  
maintain in full force and effect insurance comparable in amount and in scope of coverage to that now maintained by it; and
(iii)  
perform in all material respects all of its obligations under material contracts, leases and instruments relating to or affecting its assets, properties and business.

(b)  
From and after the date of this Agreement until the Closing Date, League Now will not, without the prior consent of Infiniti:

(i)  
except as otherwise specifically set forth herein, make any change in its articles of incorporation or bylaws;
(ii)  
declare or pay any dividend on its outstanding Common Shares, except as may otherwise be required by law, or effect any stock split or otherwise change its capitalization, except as provided herein;
(iii)  
enter into or amend any employment, severance or agreements or arrangements with any directors or officers;
(iv)  
grant, confer or award any options, warrants, conversion rights or other rights not existing on the date hereof to acquire any Common Shares; or
(v)  
purchase or redeem any Common Shares.
 
 
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Section 4.6  Indemnification.
 

(a)  
League Now hereby agrees to indemnify Infiniti, each of the officers, agents and directors and current shareholders of Infiniti as of the Closing Date against any loss, liability, claim, damage or expense (including, but not limited to, any and all expense whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened or any claim whatsoever), to which it or they may become subject to or rising out of or based on any inaccuracy appearing in or misrepresentation made in this Agreement.  The indemnification provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement; and

(b)  
Infiniti hereby agrees to indemnify League Now, each of the officers, agents, directors and current shareholders of League Now as of the Closing Date against any loss, liability, claim, damage or expense (including, but not limited to, any and all expense whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened or any claim whatsoever), to which it or they may become subject arising out of or based on any inaccuracy appearing in or misrepresentation made in this Agreement. The indemnification provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement.
 
Section 4.7  Anti-Dilution.

(a)  
After the Closing, if Infiniti determines it is in the best interest of League Now to raise additional funds through the issuance and sale of shares of any of League Now’s capital stock to any third party, such shares will be issued and sold for full and adequate consideration, meaning that such shares will not be discounted more than forty (40%) percent the price per share for such stock based on a trailing thirty day average bid/ask price per share as reported on the OTC Bulletin Board.

(b)  
In the event that Infiniti causes League Now to issue any additional shares of its capital stock to third parties as set forth in (a) above, any dilution resulting from such issuance shall be pari passu among the Infiniti Shareholders and the League Now Shareholders, such that their relative positions to each other in respect of ownership of League Now stock at the Closing shall remain proportional following any such additional issuances.  For purposes of this Section 4.7, (i) the term “Infiniti Shareholders” shall mean the persons receiving shares of Common Stock of League Now pursuant to Section 3.2 hereof; and (ii) the term “League Now Shareholders” shall mean the holders of capital stock of League Now prior to the date of the Closing.

(c)  
Notwithstanding the foregoing, Infiniti shall have the right to cause League Now to prepare and issue an Employee Incentive Stock Option Plan (“ISOP”); provided that the ISOP shall not exceed an allocation of 3,000,000 (three million) shares of League Now common stock.

(d)  
From and after the Closing for a period of twenty four (24) months, without the prior written consent of a majority of the League Now Shareholders, Infiniti shall not cause League Now to  (a) split, reverse-split, combine or reclassify its outstanding capital stock or declare, set aside or pay any dividend or distribution payable in cash, stock, property or otherwise, (b) spin-off any assets or businesses, sell any assets or businesses or effect any extraordinary corporate transaction, (c) engage in any transaction for the purpose of effecting a recapitalization, or (d) engage in any transaction or series of related transactions which has a similar effect to any of the foregoing.
 
 
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ARTICLE V
CONDITIONS PRECEDENT TO OBLIGATIONS OF LEAGUE NOW
 
The obligations of League Now under this Agreement are subject to the satisfaction, at or before the Closing Date, of the following conditions:
 
Section 5.1  Accuracy of Representations.  The representations and warranties made by Infiniti in this Agreement were true when made and shall be true at the Closing Date with the same force and effect as if such representations and warranties were made at the Closing Date (except for changes therein permitted by this Agreement), and Infiniti shall have performed or compiled with all covenants and conditions required by this Agreement to be performed or complied with by Infiniti prior to or at the Closing.  League Now shall be furnished with a certificate, signed by a duly authorized officer of Infiniti and dated the Closing Date, to the foregoing effect.

Section 5.2  Director Approval.  The Board of Directors of League Now shall have approved this Agreement and the transactions contemplated herein.

Section 5.3  Officer's Certificate.  League Now shall have been furnished with a certificate dated the Closing Date and signed by a duly authorized officer of Infiniti to the effect that: (a) the representations and warranties of Infiniti set forth in the Agreement and in all Exhibits, Schedules and other documents furnished in connection herewith are in all material respects true and correct as if made on the Effective Date; (b) Infiniti has performed all covenants, satisfied all conditions, and complied with all other terms and provisions of this Agreement to be performed, satisfied or complied with by it as of the Effective Date; (c) since such date and other than as previously disclosed to Infiniti on the attached Schedules, Infiniti has not entered into any material transaction other than transactions which are usual and in the ordinary course if its business; and (d) no litigation, proceeding, investigation or inquiry is pending or, to the best knowledge of Infiniti, threatened, which might result in an action to enjoin or prevent the consummation of the transactions contemplated by this Agreement or, to the extent not disclosed in the Infiniti Schedules, by or against Infiniti which might result in any material adverse change in any of the assets, properties, business or operations of Infiniti.

Section 5.4  No Material Adverse Change.  Prior to the Closing Date, there shall not have occurred any material adverse change in the financial condition, business or operations of nor shall any event have occurred which, with the lapse of time or the giving of notice, may cause or create any material adverse change in the financial condition, business or operations of Infiniti.

Section 5.5  Financial Statements.  League Now shall have received audited financial statements of Infiniti in form required by the rules governing Form 8-K of the Securities Act.
 
Section 5.6  Other Items.  League Now shall have received such further documents, certificates or instruments relating to the transactions contemplated hereby as League Now may reasonably request.
 
 
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ARTICLE VI
CONDITIONS PRECEDENT TO OBLIGATIONS OF INFINITI

The obligations of Infiniti under this Agreement are subject to the satisfaction, at or before the Closing date (unless otherwise indicated herein), of the following conditions:
 
Section 6.1  Accuracy of Representations.  The representations and warranties made by League Now in this Agreement were true when made and shall be true as of the Closing Date (except for changes therein permitted by this Agreement) with the same force and effect as if such representations and warranties were made at and as of the Closing Date, and League Now shall have performed and complied with all covenants and conditions required by this Agreement to be performed or complied with by League Now prior to or at the Closing.  Infiniti shall have been furnished with a certificate, signed by a duly authorized executive officer of League Now and dated the Closing Date, to the foregoing effect.

Section 6.2  Director Approval.  The Board of Directors of Infiniti shall have approved this Agreement and the transactions contemplated herein.
 
Section 6.3  Officer's Certificate.  Infiniti shall be furnished with a certificate dated the Closing Date and signed by a duly authorized officer of League Now to the effect that:  (a) the representations and warranties of League Now set forth in the Agreement and in all Exhibits, Schedules and other documents furnished in connection herewith are in all material respects true and correct as if made on the Effective Date; and (b) League Now has performed all covenants, satisfied all conditions, and complied with all other terms and provisions of the Agreement to be performed, satisfied or complied with by it as of the Effective Date.
 
Section 6.4  No Material Adverse Change.  Prior to the Closing Date, there shall not have occurred any material adverse change in the financial condition, business or operations of nor shall any event have occurred which, with the lapse of time or the giving of notice, may cause or create any material adverse change in the financial condition, business or operations of League Now.
 
Section 6.5  1934 Exchange Act Compliance.  League Now must file any necessary reports to become and stay current with its 1934 Exchange Act filings up to and including the Effective Date of this Agreement. This shall include, but not be limited to, all annual and quarterly filings.

ARTICLE VII
MISCELLANEOUS
 
Section 7.1  Brokers and Finders.  Other than as set forth on Schedule 7.1 attached hereto, each party to this Agreement represents and warrants that it is under no obligation, express or implied, to pay certain finders in connection with the bringing of the parties together in the negotiation, execution, or consummation of this Agreement. The parties each agree to indemnify the other against any claim by any third person for any commission, brokerage or finder's fee or other payment with respect to this Agreement or the transactions contemplated hereby based on any alleged agreement or understanding between the indemnifying party and such third person, whether express or implied from the actions of the indemnifying party.
 
 
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Section 7.2  Law, Forum and Jurisdiction.  This Agreement shall be construed and interpreted in accordance with the laws of the State of New York, United States of America.
 
Section 7.3  Notices.  Any notices or other communications required or permitted hereunder shall be sufficiently given if personally delivered to it or sent by registered mail or certified mail, postage prepaid, or by prepaid telegram addressed as follows:
 
                 If to League Now:  League Now Holdings, Inc.
   5601 West Spring Parkway
   Plano, Texas 75021
   
   with a copy to:
   
   Fredric H. Aaron, Attorney at Law, P.C.
   1670 Old Country Road, Suite 203
   Plainview, New York 11803
   
                 If to Infiniti:  Infiniti Systems Group, Inc.
   6890 South Edgerton Road
   Brecksville, Ohio 44141-3184
   
   with a copy to:
   
   Fredric H. Aaron, Attorney at Law, P.C.
   1670 Old Country Road, Suite 203
   Plainview, New York 11803
 
or such other addresses as shall be furnished in writing by any party in the manner for giving notices hereunder, and any such notice or communication shall be deemed to have been given as of  the date so delivered, mailed or telegraphed.
 
Section 7.4  Attorneys' Fees.  In the event that any party institutes any action or suit to enforce this Agreement or to secure relief from any default hereunder or breach hereof, the breaching party or parties shall reimburse the non-breaching party or parties for all costs, including reasonable attorneys' fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.
 
Section 7.5  Confidentiality.  Each party hereto agrees with the other party that, unless and until the transactions contemplated by this Agreement have been consummated, they and their representatives will hold in strict confidence all data and information obtained with respect to another party or any subsidiary thereof from any representative, officer, director or employee, or from any books or records or from personal inspection, of such other party, and shall not use such data or information or disclose the same to others, except:  (i)  to the extent such data is a matter of public knowledge or is required by law to be published; and (ii)  to the extent that such data or information must be used or disclosed in order to consummate the transactions contemplated by this Agreement.
 
 
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Section 7.6  Schedules; Knowledge. Each party is presumed to have full knowledge of all information set forth in the other party's schedules delivered pursuant to this Agreement.
 
Section 7.7  Third Party Beneficiaries. This contract is solely between Infiniti and League Now and except as specifically provided, no director, officer, stockholder, employee, agent, independent contractor or any other person or entity shall be deemed to be a third party beneficiary of this Agreement.
 
Section 7.8  Entire Agreement. This Agreement represents the entire agreement between the parties relating to the subject matter hereof.  This Agreement alone fully and completely expresses the agreement of the parties relating to the subject matter hereof.  There are no other courses of dealing, understanding, agreements, representations or warranties, written or oral, except as set forth herein.  This Agreement may not be amended or modified, except by a written agreement signed by all parties hereto.
 
Section 7.9  Survival; Termination.  The representations, warranties and covenants of the respective parties shall survive the Closing Date and the consummation of the transactions herein contemplated for 24 months.

Section 7.10  Counterparts.  This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall be but a single instrument.
 
Section 7.11  Amendment or Waiver. Every right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law or in equity, and may be enforced concurrently herewith, and no waiver by any party of the performance of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring or existing.  At any time prior to the Closing Date, this Agreement may be amended by a written consent by all parties hereto, with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived or the time for performance hereof may be extended by a written consent by the party or parties for whose benefit the provision is intended.
 
Section 7.12  Expenses.  Each party herein shall bear all of their respective costs and expenses incurred in connection with the negotiation of this Agreement and in the consummation of the transactions provided for herein and the preparation thereof.  The parties have agreed to each pay one-half of the fees of Fredric H. Aaron, Attorney at Law, P.C., and have waived any and all claims of conflict of interests on the part of such firm.
 
Section 7.13  Headings; Context.  The headings of the sections and paragraphs contained in this Agreement are for convenience of reference only and do not form a part hereof and in no way modify, interpret or construe the meaning of this Agreement.
 
Section 7.14  Benefit.  This Agreement shall be binding upon and shall inure only to the benefit of the parties hereto, and their permitted assigns hereunder.  This Agreement shall not be assigned by any party without the prior written consent of the other party.
 
 
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Section 7.15  Public Announcements.  Except as may be required by law, neither party shall make any public announcement or filing with respect to the transactions provided for herein without the prior consent of the other party hereto.
 
Section 7.16  Severability.  In the event that any particular provision or provisions of this Agreement or the other agreements contained herein shall for any reason hereafter be determined to be unenforceable, or in violation of any law, governmental order or regulation, such unenforceability or violation shall not affect the remaining provisions of such agreements, which shall continue in full force and effect and be binding upon the respective parties hereto.

Section 7.17  Failure of Conditions; Termination.  In the event of any of the conditions specified in this Agreement shall not be fulfilled on or before the Closing Date, either of the parties have the right either to proceed or, upon prompt written notice to the other, to terminate and rescind this Agreement.  In such event, the party that has failed to fulfill the conditions specified in this Agreement will liable for the other parties’ legal fees.  The election to proceed shall not affect the right of such electing party reasonably to require the other party to continue to use its efforts to fulfill the unmet conditions.

Section 7.18  No Strict Construction. The language of this Agreement shall be construed as a whole, according to its fair meaning and intendment, and not strictly for or against either party hereto, regardless of who drafted or was principally responsible for drafting the Agreement or terms or conditions hereof.

Section 7.19  Execution Knowing and Voluntary.  In executing this Agreement, the parties severally acknowledge and represent that each:  (a) has fully and carefully read and considered this Agreement; (b) has been or has had the opportunity to be fully apprized by its attorneys of the legal effect and meaning of this document and all terms and conditions hereof; (c) is executing this Agreement voluntarily, free from any influence, coercion or duress of any kind.

Section 7.20  Amendment. At any time after the Closing Date, this Agreement may be amended by a writing signed by both parties, with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived or the time for performance hereof may be extended by a writing signed by the party or parties for whose benefit the provision is intended.





[Remainder of Page Intentionally Blank]

[Signature Page Follows]
 
 
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized officers or representatives and entered into as of the date first above written.
 
ATTEST:
LEAGUE NOW HOLDINGS, INC.
   
______________________________
By:
/s/ Mario Barton
 
Name:
Mario Barton
 
Title:
CEO

ATTEST:
INFINITI SYSTEMS GROUP, INC.
   
/s/ Bruce Veness
By:
/s/ John Bianco
Name:  Bruce Veness
Name:
John Bianco
 
Title:
President and CEO
     

 
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SCHEDULE 1.11

See Attached

 
18

 

SCHEDULE 2.2


INFINITI SYSTEMS GROUP, INC.
Capital Structure
 
Shareholders
Number of shares
Percentage
JOHN BIANCO
100
100%
 
100
100%

 
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SCHEDULE 3.2
Issuance of League Now Shares to Infiniti

Shareholders
Number of Shares
Percentage
John Bianco
29,000,000
96.67%
Bruce Veness
700,000
2.33%
Lisa Bischof
300,000
1.0%
TOTAL
30,000,000
100%
 
 
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SCHEDULE 3.8
Post-Agreement Directors of League Now


Name
John Bianco
Mario Barton
Bruce Veness

 
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SCHEDULE 3.9
Post-Agreement Officers of League Now


Name
Position
John Bianco
President and Chief Executive Officer
Lisa Bischof
Treasurer and Chief Financial Officer
Bruce Veness
Corporate Secretary and Chief Operating Officer
 
 
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SCHEDULE 7.1
Brokers and Finders


Name
Responsible Party
Compensation
RES Holding Corp.
League Now
Shares of League Now Common Stock
 
 
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EXHIBIT 3.8
League Now Resolution for Appointment of New Board


See Attached


 
 
 
24

EX-99.1 3 f8k012012ex99i_leaguenow.htm AUDITED FINANCIAL STATEMENTS f8k012012ex99i_leaguenow.htm
Exhibit 99.1
 
INFINITI SYSTEMS GROUP, INC.

FINANCIAL STATEMENTS

YEARS ENDED

December 31, 2010 and 2009
 
 
 
 

 
 
INFINITI SYSTEMS GROUP INC.

INDEX TO FINANCIAL STATEMENTS

  Page
   
Report of the Independent Registered Public Accountant     1
   
Financial Statements  
   
Balance Sheet as of December 31, 2010 and 2009 2
   
Statement of Operations for the years ended December 31, 2010 and 2009  3
   
Statement of Stockholder’s Equity  4
   
Statement of Cash Flows for the years ended December, 31, 2010 and 2009 5
   
Notes to the Financial Statements.    6-12
 
 
 

 
 
HARRIS F.RATTRAY CPA
1601 Palm Avenue
Pembroke Pines, FL 33026



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTANT


The Board of Directors and Stockholders
Infiniti Systems Group, Inc.
Brecksville, Ohio
 
I have audited the accompanying balance sheet of Infiniti Systems Group, Inc., (the “Company”) as of December 31, 2010 and 2009, and the related statements of operations, changes in stockholders’ deficiency and cash flows for the years then ended. These financial statements are the responsibility of the Company’s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor was I engaged to perform an audit of its internal control over financial reporting. My audit included consideration over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Accordingly I express no such opinion. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Infiniti Systems Group, Inc. at December 31, 2010 and 2009, and the related statements of operations and cash flows for the years ended December, 31 2010 and 2009 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 2 to the financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency, which raises substantial doubt about its ability to continue as a going concern. Management's plans regarding those matters also are described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.


/s/HARRIS F. RATTRAY CPA
Pembroke Pines, Florida
January 17, 2012,
 
 
 
1

 
 
                               
INFINITI SYSTEMS GROUP, INC.
 
Statements of Stockholders' Deficiency
 
As of December 31, 2010 and 2009
 
                               
         
Common
   
Additional
             
   
Common
   
Stock
   
Paid-in
   
Accumulated
       
   
Stock
   
Amount
   
Capital
   
Deficit
   
Total
 
                               
Beginning balance, January 1, 2009
    500     $ -     $ 203,550     $ (1,135,125 )   $ (931,075 )
                                         
                                         
Net Profit,  December 31, 2009
                            (74,813 )     (74,813 )
                                         
                                         
BALANCE DECEMBER 31, 2009
    500     $ -     $ 203,550     $ (1,209,938 )     (1,005,888 )
                                         
                                         
Net Profit, December 31, 2010
                            62,324       62,324  
                                         
                                         
BALANCE DECEMBER 31, 2010
    500     $ -     $ 203,550     $ (1,147,613 )     (943,563 )
                                         
The accompanying notes are an integral part of these financial statements
 
 
2

 
 
INFINITI SYSTEMS GROUP, INC.
 
BALANCE SHEET
 
As at December 31,
 
             
   
2010
   
2009
 
ASSETS
           
             
 Current assets:
           
     Cash
  $ 64,194     $ 99,007  
     Accounts receivable
    332,657       387,157  
     Other current assets
    13,443       13,113  
          Total current assets
    410,295       499,277  
                 
 Property and equipment, net
    4,653       8,301  
                 
          Total assets
  $ 414,948     $ 507,578  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
               
                 
 Current liabilities:
               
     Accounts payable
  $ 251,133     $ 375,744  
     Accrued expenses and other current liabilities
    71,204       75,790  
     Current portion of long term loans
    88,053       88,053  
          Total current liabilities
    410,390       539,587  
                 
 Notes and debentures payable - stockholders
    790,902       803,702  
 Loans from stockholders
    96,191       72,327  
 Long term loans
    61,028       97,850  
      948,121       973,879  
         Total liabilities
  $ 1,358,511     $ 1,513,466  
                 
Stockholders' (Deficit):
               
Common stock, no par value; 750 shares authorized;
               
100 shares issued  and outstanding as of December 31, 2010 and
               
December 31, 2009
    500       500  
Additional paid-in capital
    203,550       203,550  
Accumulated deficit
    (1,147,613 )     (1,209,938 )
Total Stockholders' (deficit)
    (943,563 )     (1,005,888 )
          Total liabilities and stockholder deficit
  $ 414,948     $ 507,578  
                 
The accompanying notes are an integral part of these financial statements
 
 
 
3

 
 
INFINITI SYSTEMS GROUP, INC.
 
STATEMENT OF OPERATIONS
 
For the Years Ended December 31,
 
             
   
2010
   
2009
 
             
Revenues
  $ 3,288,837     $ 2,366,900  
                 
Cost of Sales
    1,850,738       1,069,168  
                 
Gross Profit
    1,438,099       1,297,732  
                 
Expenses:
               
     General and administrative
    1,339,741       1,377,344  
     Interest expense
    102,218       74,604  
     Depreciation and amortization
    7,152       11,018  
                 
          Total expenses
    1,449,111       1,462,966  
                 
(Loss) from operations
    (11,012 )     (165,234 )
                 
Other income
    73,336       90,421  
                 
Net profit/(loss)
  $ 62,324     $ (74,813 )
                 
Net profit/(loss) per share-Basic and Diluted
  $ 623.24     $ (748.13 )
                 
Weighted average number of shares of
               
common stock outstanding Basic and Diluted
    100       100  
                 
The accompanying notes are an integral part of these financial statements
 
 
4

 
 
INFINITI SYSTEMS GROUP, INC.
 
STATEMENT OF CASH FLOWS
 
For the Years Ended December 31,
 
             
             
   
2010
   
2009
 
             
CASH FLOWS FROM OPERATING ACTIVITIES:
           
Net profit /(loss)
  $ 62,324     $ (74,813 )
     Adjustments to reconcile increase/(decrease) in net assets to cash
               
     provided by operating activities:
               
          Depreciation
    7,152       11,018  
          Changes in operating assets and liabilities:
               
               Accounts receivable
    54,500       (66,972 )
               Other current receivables
    (330 )     13,001  
               Accounts payable
    (124,611 )     (17,982 )
               Increase/(decrease) in accrued expenses and
               
               other current liabilities
    (4,587 )     10,420  
               Current portion of long term loans
    -       88,053  
               (Gain) on disposal of property and equipment
    -       (20,000 )
                 
Net cash provided by operating activities
    (5,552 )     (175,508 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES:
               
     Purchase of property and equipment
    (3,504 )     (1,141 )
     Proceeds from property and equipment sold
    -       20,000  
Net cash (used in)/provided by investing activities
    (3,504 )     18,859  
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
               
    ( Decrease) in notes and debentures payable - stockholders
    (12,800 )     (15,091 )
    Increase/(decrease) in loan from stockholder
    23,864       (14,705 )
    Increase in stockholders' equity
    -       21,050  
   (Decrease)/Increase in long term loans
    (36,822 )     69,032  
Net cash (used in)/provided by financing activities
    (25,757 )     166,633  
                 
(DECREASE)INCREASE IN CASH
    (34,813 )     11,125  
                 
CASH - BEGINNING OF YEAR
    99,007       87,882  
                 
CASH - END OF YEAR
  $ 64,194     $ 99,007  
                 
The accompanying notes are an integral part of these financial statements
 
 
 
5

 
 
INFINITY SYSTEMS GROUP, INC.
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2010


NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION

Infiniti Systems Group, Inc was organized under the laws of the State of Ohio on January 2 1995. The Company provides technology integration services to businesses. These services include management consulting, e-business services, application development, facilities development and network development. The Company’s principal office is in Brecksville, Ohio, with an additional office in Raleigh, North Carolina. On December 11, 1998, the Company changed its corporate name from J.L. Consulting, Inc. to Infiniti Systems Group, Inc.

NOTE 2 - GOING CONCERN

The Company’s primary source of operating funds since inception has been its stockholders and note financings. The Company intends to raise additional capital through private debt and equity investors. There is no assurance whether the Company will be able to generate enough revenue and raise enough capital to support those operations. This raises substantial doubt about the Company's ability to continue as a going concern.

As shown in the accompanying financial statements, the Company incurred cumulative net losses as at December 31, 2010 of $1,147,613

Management states that they are confident that they can improve operations and raise the appropriate funds to grow their underlying business and acquire other businesses. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting - The Company's policy is to prepare its financial statements using the accrual basis of accounting in accordance with generally accepted accounting principles. The Company has elected December 31 as its annual year-end.

Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Equivalents - Cash and cash equivalents include cash and cash in banks. The Company maintains cash and cash equivalent balances at a financial institution that is insured by the Federal Deposit Insurance Corporation up to $100,000.
 
 
6

 
 
Net Earnings (Loss) Per Share - Basic earnings (loss) per common share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share are computed similar to basic earnings (losses) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding. as of December 31, 2010. There are no outstanding stock options or stock warrants that would have affected the computation.

Revenue Recognition - The Company will recognize revenue upon completion of its services to be rendered or delivery of products to its customers.

Property and Equipment - Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for major renewals and betterments that extend over the useful lives of property and equipment are capitalized. Depreciation and amortization of property and equipment is recorded using the straight-line method over the estimated useful life of the relative assets, which range as follows:
 
   Furniture & Fixtures   5-7 years  
   Office Equipment    5-7 years  
   Computer Software    5  
 
Expenditures for maintenance and repairs are charged to expense as incurred

Fair Value of Financial Instruments - The carrying amounts of cash, accounts payable, and accrued liabilities approximate fair value due to the short-term nature of these instruments. The carrying amounts of our short term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuance of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk.
 
The Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 “Fair Value Measurements and Disclosures” which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.
 
ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:
 
Level 1 — quoted prices in active markets for identical assets or liabilities
 
Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable
 
Level 3 — inputs that are unobservable (for example, cash flow modeling inputs based on assumptions)
 
 
7

 
 
No such items existed as of December 31, 2010 or 2009.

Recent Accounting Pronouncements - In January 2010, the FASB issued guidance requiring new disclosures and clarifying existing disclosure requirements about fair value measurement. The FASB’s objective is to improve these disclosures and, thus, increase the transparency in financial reporting.  Specifically, the amendments now require a reporting entity to:
 
•     Disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers; and
 
•     Present separately information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements using significant unobservable inputs.
 
In addition, the guidance clarifies the requirements of the following disclosures:
 
•     For purposes of reporting fair value measurement for each class of assets and liabilities, a reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities; and
 
•     A reporting entity is to provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements.
 
The guidance is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Early application is permitted.  The Company adopted the revised disclosure guidance in the first quarter of 2009 and the adoption did not have a material impact on the Company’s financial statements as of and for the years ended December 31, 2010 and 2009.
 
In February 2010, the FASB issued an update which amends the subsequent events disclosure guidance.  The amendments include a definition of an SEC filer, requires an SEC filer to evaluate subsequent events through the date the financial statements are issued, and removes the requirement for an SEC filer to disclose the date through which subsequent events have been evaluated.  This guidance was effective upon issuance for the Company. 
 
The Company does not believe that there are any other new accounting pronouncements that the Company is required to adopt that are likely to have a material effect on the Company’s  financial statements upon adoption.
 
Subsequent Events - Management has evaluated subsequent events to determine whether events or transactions occurring through January 17, 2012, the date on which the financial statements were available to be issued, will require potential adjustment to or disclosure in the Company’s financial statements.
 
 
8

 
 
NOTE 3 - PROPERTY AND EQUIPMENT

Property and Equipment include the following:
 
   
December 31, 2010
   
December 31, 2009
 
             
Computer and peripherals
 
$
176,864
   
$
174,315
 
Office equipment
   
59,816
     
59,816
 
                 
Computer software
   
 28,424
     
28,424
 
     
265,104
     
262,555
 
Less: accumulated depreciation
   
(260,452
)
   
(254,254
)
Property and Equipment, net
 
$
4,652
   
$
8,301
 

Depreciation expense amounted to $6,198 and $10,627 for the years ended December 31, 2010 and 2009, respectively.

NOTE 4 - INCOME TAX

The Company, with the consent of its original stockholders, elected under the Internal Revenue Code to be taxed as a sub-chapter S corporation. In lieu of corporate income taxes, the stockholders of an S Corporation are taxed on their proportionate share of the company’s taxable income. Therefore, no liability for Federal or Ohio income taxes has been included in the financial statements. North Carolina and Ohio City corporate income taxes were expensed when paid.

NOTE 5 - NOTES PAYABLE

During the years ended December 31, 2010 and 2009, the Company issued certain revolving lines of credit aggregating $605,667 and $780,457, respectively.  The notes bear interest between 0% and 22.24% per annum.

Line of Credit – Independence Bank – The Company has a $350,000 revolving line of credit with is bank, all of which was used at December 31, 2010.  Advances on the credit line are payable on demand and carry an interest rate of 1.25% over the bank’s prime rate.  Interest is payable monthly.  The credit line is secured by all assets of the Company, including accounts receivable, inventory (if acquired), office equipment and the personal guaranty of an officer/stockholder.

Line of Credit- Other – The Company has a $34,500 revolving line of credit with American Express, $13,111 of which was unused at December 31, 2010.  Advances on the credit line are payable on demand and carry an interest rate of 5.50% at December 31, 2010.  Interest is payable monthly.  The credit line is unsecured.
 
 
9

 
 
Line of Credit- Other – The Company has a $14,100 revolving line of credit with Bank Atlantic, $562 of which was unused at December 31, 2010.  Advances on the credit line are payable on demand and carry an interest rate of 8.24% at December 31, 2010.  Interest is payable monthly.  The credit line is unsecured.

Line of Credit- Other – The Company has a $25,000 revolving line of credit with Bank of America, $7,812 of which was unused at December 31, 2010.  Advances on the credit line are payable on demand and carry an interest rate of 7.99% at December 31, 2010.  Interest is payable monthly.  The credit line is unsecured.

Line of Credit- Other – The Company has a $35,800 revolving line of credit with JP Morgan Chase Bank, $2,263 of which was unused at December 31, 2010.  Advances on the credit line are payable on demand and carry an interest rate of 22.24% at December 31, 2010.  Interest is payable monthly.  The credit line is unsecured.

Line of Credit- Other – The Company has a $12,300 revolving line of credit with Chevy Chase, $2,445 of which was unused at December 31, 2010.  Advances on the credit line are payable on demand and carry an interest rate of 7.24% at December 31, 2010.  Interest is payable monthly.  The credit line is unsecured.

Line of Credit- Other – The Company has a $15,300 revolving line of credit with American Express, $6,675 of which was unused at December 31, 2010.  Advances on the credit line are payable on demand and carry an introductory interest rate of 0% at December 31, 2010.  Interest is payable monthly.  The credit line is unsecured.

Line of Credit- Other – The Company has a $100,000 revolving line of credit with Wells Fargo, $160 of which was unused at December 31, 2010.  Advances on the credit line are payable on demand and carry an interest rate of 7.75% at December 31, 2010.  Interest is payable monthly.  The credit line is unsecured.

Convertible Debentures – On March 1, 2010, the Company renewed convertible debentures in the amount of $25,000.  The debentures pay quarterly interest of 14% and mature February 28, 2012.  Upon maturity, principal and unpaid interest are payable in four equal, interest-free quarterly installments, the first of which is due on month after maturity.  Prepayments of principal and interest are prohibited unless agreed to by the debenture holder.  The debentures may be converted after November 1, 2011 and prior to maturity.  The debentures are convertible into a number of common shares equal to one share of common stock for each $25,000 of principal owing on the conversion date.  Any accrued but unpaid principal owed at the time of conversion is to be paid in cash.  The debenture requires that any distribution to stockholders made while the debenture is outstanding be accompanied by a payment to the debenture holder in the amount that would have been received by the debenture holder had the debenture been converted to common stock immediately prior to the stockholder distribution.

 
10

 
 
NOTE 6 - LONG TERM DEBT

In June, 2010, the Company obtained a $209,905 term loan from its bank.  The proceeds of the term loan were used to reduce the outstanding balances of the Company’s line of credit with the bank.  The loan requires 69 monthly principal payments of $3000, plus monthly interest of 1.25% over the bank’s prime rate.  The term loan is secured by the personal guaranty of a Company stockholder.

In July, 2010, the Company obtained a $50,000 loan from an officer/stockholder.  The loan requires interest payments at a fixed rate of 7%, but specifies neither interest payment frequency nor a due date for the obligation.

In July, 2010, the Company obtained a $50,000 advance from a company specializing in small business financing.  In October, 2010, the Company obtained an additional $26,654 advance.  The loan is payable in daily installments of $474 (business days only) and is scheduled to be repaid in 2011.

In November, 2010, the Company obtained a $25,000 advance from a company specializing in small business financing.  The loan is payable in daily installments of $250 (business days only) and is scheduled to be repaid in 2011.

In March, 2008, the Company obtained a $12,500 loan from an officer/stockholder.  The loan requires interest payments at a fixed rate of 7%, but specifies neither interest payment frequency nor a due date for the obligation.

In June, 2008, the Company obtained a $50,000 loan from an officer/stockholder.  The loan requires 120 semi-monthly payments of $502, including principal and interest and bears interest at a fixed rate of 5.25%.  The loan is unsecured.

In August, 2008, the Company obtained a $30,000 term loan from an officer/stockholder.  The loan requires 120 semi-monthly payments of $292, including principal and interest, and bears interest at a fixed rate of 5%.  The loan is unsecured.

In January, 2007, the Company entered into a capital lease obligation for the purchase of computer equipment. The obligation required 36 monthly payments of $322, bore interest at approximately 16%, and was secured by the equipment under lease.  The obligation was paid in full during 2010.

In March, 2009, the Company converted rent arrearages in the amount of $138,454 into a term loan with its landlord.  The loan requires 48 monthly payments of $3,066 and bears interest at a fixed rate of 6%.  The loan is secured by an officer/stockholder of the Company.

During 2009, the Company obtained two $25,000 SBA-backed term loans from commercial banks.  Each loan requires 84 monthly payments of $390 and includes interest at 4.75% above the bank’s prime rate.  The originating interest is 8% for each loan.
 
 
11

 
 
Principal payments of long-term debt at December 31, 2010 are scheduled as follows:
 
2011   $ 144,847  
2012     120,642  
2013     64,214  
2014     43,698  
2015     44,335  
2016     13,470  
         
Total   $ 431,206  
 
NOTE 7 - RELATED PARTY TRANSACTIONS

A related party has been paid $ 79,819 for professional services made on behalf of the company during the year ended December 31, 2010.

During the years ended December 31, 2010 and 2009, the Company obtained unsecured advances and loans from an officer/stockholder and from a major stockholder aggregating $96,191 and $72,327, respectively.  The notes bear interest between 5% and 7% per annum.
 
RENTALS UNDER OPERATING LEASES

The Company conducts its Cleveland operations from a leased facility.  The Cleveland office lease requires a monthly payment of $6,347 and expires in March, 2012.  Rent expense, amounted to $69,430 (2010) and $218,616 (2009).

The following is a schedule of future minimum rental payments required under the Company’s current operating leases:
 
2011   $ 76,158  
2012     19,040  
Total   $ 95,198  
 
In March, 2009, the Company converted rent arrearages in the amount of $138,454 into a term loan with its landlord.  The loan requires 48 monthly payments of $3,066 and bears interest at a fixed rate of 6%.  The loan is secured by an officer/stockholder of the Company.
 
 
 
 
12

EX-99.2 4 f8k012012ex99ii_leaguenow.htm PRO FORMA FINANCIAL INFORMATION f8k012012ex99ii_leaguenow.htm
Exhibit 99.2
 
UNAUDITED PRO FORMA
 
CONSOLIDATED FINANCIAL STATEMENTS
 
FOR
 
LEAGUE NOW HOLDINGS CORPORATION
 
AND
 
INFINITI SYSTEMS GROUP, INC
 
 
 

 
 
LEAGUE NOW HOLDINGS CORPORATION

 AND

INFINITI SYSTEMS GROUP, INC.

INDEX TO UNAUDITED CONSOLIDATED PRO FORMA
FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES
 
   Page
   
Selected Pro Forma Data    PF-1
   
Pro Forma Balance Sheet as at September 30, 2011   PF-2
   
Pro Forma Statement of Operation for nine months ended September 30, 2011    PF-3
   
Pro Forma Statement of Operation for the year ended December 31, 2010    PF-4
   
Notes to unaudited Financial Statements   PF-5
 
All schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are not applicable, and therefore have been omitted.
 
 
 

 

LEAGUE NOW HOLDING CORPORATION

AND

INFINITI SYSTEMS GROUP, INC.

SELECTED UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL DATA
FOR FINANCIAL STATEMENTS

The unaudited pro forma consolidated balance sheet of League Now Holding Corporation and Infiniti Systems Group, Inc. as of September 30, 2011 gives the effect to the purchase of Infiniti Systems Group, Inc. as if it had occurred on December 31, 2010.  The Infiniti Systems Group purchase transaction was closed on January 24, 2012 for share exchange agreements between parties.  The unaudited pro forma statements for the period ended September 30, 2011 gives the effect to the acquisition by League Now Holdings as if it had occurred on December 31, 2010.  The column headed “Infiniti Systems Group” in the unaudited pro forma statement of operations gives the effect to revenues and expenses of the acquisition for periods being reported and was not included in our historical financial statements. Infiniti Systems Group, Inc. was acquired on December 31, 2011 and the purchase was accounted for by League Now Holding using the purchase method of accounting.

The following unaudited pro forma financial data have been included as required by the rules of the Securities and Exchange Commission and are provided for comparative purposes only.  The unaudited pro forma financial data presented are based upon the historical consolidated financial statements and the historical statements of revenues and direct operating expenses of League Now Holdings Inc and Infiniti Systems Group, Inc. and should be read in conjunction with such financial statements and related notes thereto included in this report.

The pro forma financial data are based upon assumptions and include adjustments as explained in the notes to the unaudited pro forma financial statements, and the actual recording of transactions could differ.  The unaudited pro forma financial data re not necessarily indicative of the financial results that would have occurred had the purchase been effective on and as of the date indicated and should not be viewed as indicative of operations in future periods.

 
PF-1

 

LEAGUE NOW HOLDINGS CORPORATION
 
UNAUDITED PROFORMA CONSOLIDATED BALANCE SHEET
 
AS AT SEPTEMBER 30, 2011
 
                         
   
League
   
Infiniti
 
Proforma 
   
ProForma
 
   
Now
   
Systems
  Adjustments    
Consolidated
 
   
Holdings
   
Group
             
Assets                        
                         
CURRENT ASSETS
                       
Cash and cash equivalents
 
3,243
   
13,005
         
16,248
 
Accounts receivable
 
-
   
921
         
921
 
Other current assets
 
7,000
   
18,119
         
25,119
 
Inventory
 
-
   
-
         
-
 
   
10,243
   
32,045
         
42,288
 
                         
PROPERTY PLANT & EQUIPMENT, net
 
2,058
   
3,480
         
5,538
 
                         
Goodwill
 
36,032
   
-
   
1,028,059
C
 
1,064,091
 
                         
Patent, net
 
6,433
   
-
         
6,433
 
   
54,766
   
35,525
         
1,118,350
 
                         
CURRENT LIABILITIES
                   
-
 
Accounts payable
 
23,726
   
8,215
         
31,941
 
Other accrued liabilities
 
3,433
   
77,600
         
81,033
 
Notes payable
 
-
   
88,053
         
88,053
 
Other current liabilities
 
-
   
700,362
   
-
   
700,362
 
   
27,159
   
874,230
         
901,389
 
                         
   
-
   
47,644
         
47,644
 
   
-
   
122,128
         
122,128
 
   
-
   
169,772
         
169,772
 
                         
Preferred stock, $0.001 par value: authorized 10,000,000 shares;
                   
none issued and outstanding as of December 2010
 
-
   
-
         
-
 
                     
-
 
Stockholders' equity:
                       
Common stock, $.001 par value, authorized 100,000,000
                       
shares; issued and outstanding 45,748,288 as of
                       
September 30,2011
 
45,748
   
500
   
500
C
 
45,748
 
Additional paid-in-capital
 
13,412
   
343,868
   
203,550
C
 
153,730
 
Accumulated deficit
 
(31,553)
   
(1,352,845)
   
(1,232,109)
C
 
(152,289)
 
   
27,607
   
(1,008,477)
         
47,189
 
   
54,766
   
35,525
         
1,118,350
 
 
 
PF-2

 
 
LEAGUE NOW HOLDINGS CORPORATION
UNAUDITED PROFORMA CONSOLIDATED INCOME STATEMENT
FOR NINE MONTHS ENDED SEPTEMBER 30, 2011
 
   
League
   
Infiniti
 
Proforma
 
ProForma
 
   
Now
   
Systems
    Adjustments    
Consolidated
 
   
Holdings
   
Group
             
                         
Revenue
 
-
   
2,439,666
         
2,439,666
 
Cost of sales
 
-
   
1,319,558
         
1,319,558
 
Gross Profit
 
-
   
1,120,108
         
1,120,108
 
                         
Expenses:
                       
General and administrative expenses
 
16,700
   
1,235,280
         
1,251,980
 
Interest expense
 
-
   
72,252
             
Depreciation and amortization
 
-
   
3,961
         
3,961
 
   
16,700
   
1,311,493
         
1,255,941
 
                         
(Loss) from operations
 
(16,700)
   
(191,385)
         
(135,833)
 
                         
Other income
       
70,648
         
70,648
 
Net (loss) before taxes
 
(16,700)
   
(120,737)
         
(137,437)
 
                         
Provision for income taxes
 
-
   
-
         
-
 
                         
Net loss
 
(16,700)
   
(120,737)
         
(137,437)
 
                         
Accumulated deficit - beginning of period
 
(15,107)
   
(1,232,109)
   
1,232,109
E
 
(15,107)
 
Accumulated deficit - end of period
 
(31,807)
   
(1,352,846)
         
(152,544)
 
 
 
PF-3

 

LEAGUE NOW HOLDINGS CORPORATION
 
PROFORMA CONSOLIDATED INCOME STATEMENT
 
FOR THE YEAR ENDED DECEMBER 31, 2010
 
                         
   
League
   
Infiniti
 
Proforma
   
ProForma
 
   
Now
   
Systems
    Adjustments    
Consolidated
 
   
Holdings
   
Group
             
                         
Revenues
 
63,768
   
2,439,666
         
2,503,434
 
                         
Cost of sales
 
4,361
   
1,319,558
         
1,323,919
 
                         
Gross profit
 
59,407
   
1,120,108
         
1,179,515
 
                         
Expenses:
                       
General and administrative expenses
 
58,275
   
1,235,280
         
1,293,555
 
Interest expense
 
-
   
72,251
         
72,251
 
   
58,275
   
1,307,531
         
1,365,806
 
                         
Income from operations
 
1,132
   
(187,423)
         
(186,291)
 
                         
Other income
 
-
   
70,648
         
70,648
 
   
-
   
70,648
         
70,648
 
                         
Net income before taxes
 
1,132
   
(116,775)
         
(115,643)
 
                         
Provision for income taxes
 
-
   
-
         
-
 
Net profit/(loss)
 
1,132
   
(116,775)
         
(248,206)
 
                         
Accumulated deficit - beginning of year
 
(273,694)
   
(1,232,109)
   
1,232,109
E
 
(273,694)
 
Accumulated deficit - end of year
 
(272,562)
   
(1,348,884)
         
(521,900)
 
 
 
PF-4

 
 
NOTES TO
UNAUDITED PROFORMA
CONSOLIDATED FINANCIAL STATEMENTS

The unaudited pro forma financial data for League Now Holdings Corporation and Infiniti Systems Group, Inc. for the period ended September 30, 2011 has been prepared to give effect to the acquisition by League Now Holdings Corporation of Infiniti Systems Group, Inc.  The column headed Infiniti Systems Group. in the unaudited proforma consolidated income statement gives effect to the revenues and direct operating expenses of the acquisition for the period that were not included in the League Now Statement historical financial statements.  The unaudited pro forma financial statements are not necessarily indicative of the results of League Now Holdings Corporation future operations.

The unaudited pro forma adjustment notes for the balance sheet are as follows:

A.  
The estimated value of contracts purchased and preliminary adjustments to historical book value of Infiniti Systems Group, Inc. as a result of the transaction.

B.  
Acquisition equity eliminations.
 
The unaudited pro forma adjustment notes for the statement of operations are as follows:

C.  
Elimination of pre-acquisition profits.

 
 
PF-5



EX-99.3 5 f8k012012ex99iii_leaguenow.htm UNAUDITED FINANCIAL STATEMENTS f8k012012ex99iii_leaguenow.htm
 
Exhibit 99.3
 
 
 
INFINITI SYSTEMS GROUP, INC.

FINANCIAL STATEMENTS

NINE MONTHS ENDED

September 30, 2011 and 2010
 
 

 
 

 
 
INFINITI SYSTEMS GROUP INC.

INDEX TO FINANCIAL STATEMENTS
 
  Page
   
Report of the Independent Registered Public Accountant 1
   
Financial Statements  
   
Balance Sheet as of September 30, 2011 and December 31, 2010  2
   
Statement of Operations for nine months ended September 30, 2011 and 2010 3
   
Statement of Cash Flows for nine months ended September 30, 2011 and 2010  4
   
Notes to the Financial Statements. 5-9
 
 
 
 

 
 
HARRIS F.RATTRAY CPA
1601 Palm Avenue
Pembroke Pines, FL 33026



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTANT


The Board of Directors and Stockholders
Infiniti Systems Group, Inc.
Brecksville, Ohio

I have reviewed the balance sheet of Infiniti Systems Group, Inc as of September 30, 2011 and the related statements of operations for the nine-month period ended September 30, 2011, and cash flows for the nine-month period ended September 30, 2011 included in the accompanying Securities and Exchange Commission Form 8-K for the period ended September 30, 2011.  These interim financial statements are the responsibility of the Company’s management.

I conducted my reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States).  A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters.  It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole.  Accordingly, I do not express such an opinion.

Based on my reviews, I am not aware of any material modifications that should be made to the financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States.

I have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board, the balance sheet of Infiniti Systems Group, Inc, as of December 31, 2010, and the related statements of operations, stockholders’ equity, and cash flows for the year then ended (not presented herein); and in our report dated January 17, 2012, I expressed an unqualified opinion on those financial statements.  In my opinion, the information set forth in the accompanying balance sheet as of March 31, 2011 is fairly stated in all material respects in relation to the balance sheet from which it has been derived.



Harris F. Rattray, CPA
Pembroke Pines, Florida
January 21. 2012
 
 
1

 
 
INFINITI SYSTEMS GROUP, INC.
 
BALANCE SHEET
 
   
   
September 30,
   
December 31,
 
   
2011
   
2010
 
   
(Unaudited)
       
ASSETS
 
             
Current assets:
           
     Cash
  $ 13,005     $ 64,194  
     Accounts receivable
    921       1,791  
     Other current assets
    18,119       13,443  
          Total current assets
    32,045       79,428  
                 
Property and equipment, net
    3,480       4,653  
                 
          Total assets
  $ 35,525     $ 84,081  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
 
                 
Current liabilities:
               
     Accounts payable
  $ 8,215     $ 5,507  
    Accrued expenses and other current liabilities
    77,600       70,459  
     Current portion of long term loans
    88,053       88,053  
     Notes and debentures payable - stockholders
    700,362       790,902  
          Total current liabilities
    874,230       954,921  
                 
       Loans from stockholders
    47,644       96,191  
       Long term loans
    122,128       61,028  
      169,772       157,219  
         Total liabilities
  $ 1,044,002     $ 1,112,140  
                 
Stockholders' Deficiency:
               
                 
Common stock, no par value; 750 shares authorized;
               
100 shares issued  and outstanding as of September 30, 2011 and
               
December 31, 2010
    500       500  
Additional paid-in capital
    343,868       203,550  
Accumulated deficit
    (1,352,846 )     (1,232,109 )
Total Stockholders' deficiency
    (1,008,478 )     (1,028,059 )
          Total liabilities and stockholders' deficiency
  $ 35,524     $ 84,081  
 
The accompanying notes are an integral part of these financial statements
 
 
2

 
 
INFINITI SYSTEMS GROUP, INC.
 
STATEMENT OF OPERATIONS
 
NINE MONTHS ENDED SEPTEMBER 30,
 
(Unaudited)
 
             
   
2011
   
2010
 
             
Revenues
  $ 2,439,666     $ 3,341,862  
                 
Cost of Sales
    1,319,558       1,992,666  
                 
Gross Profit
    1,120,108       1,349,196  
                 
Expenses:
               
     General and administrative
    1,235,280       1,322,580  
     Interest expense
    72,252       102,260  
     Depreciation and amortization
    3,961       7,152  
                 
          Total expenses
    1,311,493       1,431,993  
                 
Loss from operations
    (191,385 )     (82,797 )
                 
Other income
    70,648       74,082  
                 
Net loss
  $ (120,737 )   $ (8,715 )
                 
Net loss per share-Basic and Diluted
  $ (1,207.37 )   $ (87.15 )
                 
Weighted average number of shares of
               
common stock outstanding Basic and Diluted
    100       100  
                 
                 
 
The accompanying notes are an integral part of these financial statements
 
 
3

 
 
INFINITI SYSTEMS GROUP, INC.
 
STATEMENT OF CASH FLOWS
 
Nine Months Ended September 30,
 
(Unaudited)
 
             
   
2011
   
2010
 
             
CASH FLOWS FROM OPERATING ACTIVITIES:
           
Net profit
  $ (120,737 )   $ 65,547  
     Adjustments to reconcile increase(decrease) in net assets to cash
               
     provided by operating activities:
               
          Depreciation
    3,961       5,364  
          Changes in operating assets and liabilities:
               
               Decrease/(increase) in accounts receivable
    870       (3,680 )
               (Increase) in other current assets
    (4,676 )     (199 )
               Decrease/(increase) in accounts payable
    2,709       (97,626 )
               Increase/(decrease) in accrued expenses and
               
               other current liabilities:
    7,141       (11,034 )
               Decrease in notes and debentures payable-stockholders
    (90,540 )     (5,733 )
                 
Net cash used in operating activities
    (201,274 )     (47,361 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES:
               
     Purchase of property and equipment
    (2,786 )     (2,050 )
Net cash used in investing activities
    (2,786 )     (2,050 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
               
                 
    Repayment of notes payable
    -       (24,800 )
   (Decrease)/increase in loan from stockholder
    (48,547 )     37,944  
    Increase in shareholders' equity
    140,318       -  
    Increase/(decrease) in long term loans
    61,100       (17,425 )
                 
Net cash provided by/(used in) financing activities
    152,871       (4,281 )
                 
NET DECREASE IN CASH
    (51,189 )     (53,692 )
                 
CASH - BEGINNING OF YEAR
    64,194       99,007  
                 
CASH - END OF YEAR
  $ 13,005     $ 45,315  
                 
 
The accompanying notes are an integral part of these financial statements
 
 
4

 
 
INFINITY SYSTEMS GROUP, INC.
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2011
(Unaudited)


NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION

The accompanying unaudited interim financial statements of Infinity Systems Group, Inc. ( the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. Accordingly, these financial statements do not include all information and footnote disclosures required for an annual set of financial statements prepared under United States generally accepted accounting principles. In the opinion of our management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the financial position, results of operations and cash flows as of September 30, 2011 and for all interim periods presented herein have been reflected in these financial statements and the notes thereto. Interim results for the nine months period ended September 30, 2011 are not necessarily indicative of the results to be expected for the fiscal year as a whole. These financial statements should be read in conjunction with the audited financial statements and accompanying notes included on the Form 8-K for the fiscal year ended December 31, 2010.

The Company was organized under the laws of the State of Ohio on January 2 1995. The Company provides technology integration services to businesses. These services include management consulting, e-business services, application development, facilities development and network development. The Company’s principal office is in Brecksville, Ohio, with an additional office in Raleigh, North Carolina. On December 11, 1998, the Company changed its corporate name from J.L. Consulting, Inc. to Infiniti Systems Group, Inc.

NOTE 2 - GOING CONCERN

The Company’s primary source of operating funds since inception has been its stockholders and note financings. The Company intends to raise additional capital through private debt and equity investors. There is no assurance whether the Company will be able to generate enough revenue and raise enough capital to support those operations. This raises substantial doubt about the Company's ability to continue as a going concern.

As shown in the accompanying financial statements, the Company incurred cumulative net losses as at September 30, 2011 of $1,352,845

Management states that they are confident that they can improve operations and raise the appropriate funds to grow their underlying business and acquire other businesses. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.
 
 
5

 

NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting - The Company's policy is to prepare its financial statements using the accrual basis of accounting in accordance with generally accepted accounting principles. The Company has elected December 31 as its annual year-end.

Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Equivalents - Cash and cash equivalents include cash and cash in banks. The Company maintains cash and cash equivalent balances at a financial institution that is insured by the Federal Deposit Insurance Corporation up to $100,000.

Net Earnings (Loss) Per Share - Basic earnings (loss) per common share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share are computed similar to basic earnings (losses) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding. as of December 31, 2010. There are no outstanding stock options or stock warrants that would have affected the computation.

Revenue Recognition - The Company will recognize revenue upon completion of its services to be rendered or delivery of products to its customers.

Property and Equipment - Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for major renewals and betterments that extend over the useful lives of property and equipment are capitalized. Depreciation and amortization of property and equipment is recorded using the straight-line method over the estimated useful life of the relative assets, which range as follows:
 
   Furniture & Fixtures   5-7 years  
   Office Equipment    5-7 years  
   Computer Software    5  
 
Expenditures for maintenance and repairs are charged to expense as incurred

Fair Value of Financial Instruments - The carrying amounts of cash, accounts payable, and accrued liabilities approximate fair value due to the short-term nature of these instruments. The carrying amounts of our short term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuance of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk.
 
 
6

 
 
The Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 “Fair Value Measurements and Disclosures” which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.
 
Recent Accounting Pronouncements - In January 2010, the FASB issued guidance requiring new disclosures and clarifying existing disclosure requirements about fair value measurement. The FASB’s objective is to improve these disclosures and, thus, increase the transparency in financial reporting.  Specifically, the amendments now require a reporting entity to:
 
•     Disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers; and
 
•     Present separately information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements using significant unobservable inputs.
 
In addition, the guidance clarifies the requirements of the following disclosures:
 
 •     For purposes of reporting fair value measurement for each class of assets and liabilities, a reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities; and
 
•     A reporting entity is to provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements.
 
The guidance is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Early application is permitted.  The Company adopted the revised disclosure guidance in the first quarter of 2009 and the adoption did not have a material impact on the Company’s financial statements as of and for the nine months ended September 31, 2011 and the year ended December 31, 2010.
 
In February 2010, the FASB issued an update which amends the subsequent events disclosure guidance.  The amendments include a definition of an SEC filer, requires an SEC filer to evaluate subsequent events through the date the financial statements are issued, and removes the requirement for an SEC filer to disclose the date through which subsequent events have been evaluated.  This guidance was effective upon issuance for the Company. 
 
The Company does not believe that there are any other new accounting pronouncements that the Company is required to adopt that are likely to have a material effect on the Company’s financial statements upon adoption.
 
Subsequent Events - Management has evaluated subsequent events to determine whether events or transactions occurring through January 30, 2012, the date on which the financial statements were available to be issued, will require potential adjustment to or disclosure in the Company’s financial statements.
 
 
7

 
 
NOTE 3 - PROPERTY AND EQUIPMENT
 
Property and Equipment include the following:
 
   
September 30, 2011
   
December 31, 2010
 
             
Computer and peripherals
 
$
179,652
   
$
176,865
 
Office equipment
   
59,816
     
59,816
 
Computer software
   
 28,424
     
28,424
 
     
267,890
     
262,555
 
Less: accumulated depreciation
   
(264,411
)
   
(260,450
)
Property and Equipment, net
 
$
3,479
   
$
4,654
 

Depreciation expense amounted to $3,961 and $6,198 for the nine months ended September 30, 2011 and the year ended December 31, 2010.

NOTE 4 - INCOME TAX

The Company, with the consent of its original stockholders, elected under the Internal Revenue Code to be taxed as a sub-chapter S corporation. In lieu of corporate income taxes, the stockholders of an S Corporation are taxed on their proportionate share of the company’s taxable income. Therefore, no liability for Federal or Ohio income taxes has been included in the financial statements. North Carolina and Ohio City corporate income taxes were expensed when paid.-

NOTE 5 - NOTES PAYABLE

During the period ended September 30, 2011 and December 31, 2010, the Company issued certain revolving lines of credit aggregating $700,362 and $605,667, respectively.  The notes bear interest between 0% and 22.24% per annum.

Convertible Debentures – On March 1, 2010, the Company renewed convertible debentures in the amount of $25,000.  The debentures pay quarterly interest of 14% and mature February 28, 2012.  Upon maturity, principal and unpaid interest are payable in four equal, interest-free quarterly installments, the first of which is due on month after maturity.  Prepayments of principal and interest are prohibited unless agreed to by the debenture holder.  The debentures may be converted after November 1, 2011 and prior to maturity.  The debentures are convertible into a number of common shares equal to one share of common stock for each $25,000 of principal owing on the conversion date.  Any accrued but unpaid principal owed at the time of conversion is to be paid in cash.  The debenture requires that any distribution to stockholders made while the debenture is outstanding be accompanied by a payment to the debenture holder in the amount that would have been received by the debenture holder had the debenture been converted to common stock immediately prior to the stockholder distribution.
 
 
8

 
 
NOTE 6 - LONG TERM DEBT

In June, 2010, the Company obtained a $209,905 term loan from its bank.  The proceeds of the term loan were used to reduce the outstanding balances of the Company’s line of credit with the bank.  The loan requires 69 monthly principal payments of $3,000, plus monthly interest of 1.25% over the bank’s prime rate.  The term loan is secured by the personal guaranty of a Company stockholder.

NOTE 7 - RELATED PARTY TRANSACTIONS

A related party has been paid $ 79,819 for professional services made on behalf of the company during the year ended December 31, 2010.
 
During the years ended December 31, 2010 and 2009, the Company obtained unsecured advances and loans from an officer/stockholder and from a major stockholder aggregating $96,191 and $72,327, respectively.  The notes bear interest between 5% and 7% per annum.

RENTALS UNDER OPERATING LEASES

The Company conducts its Cleveland operations from a leased facility.  The Cleveland office lease requires a monthly payment of $6,347 and expires in March, 2012.

The following is a schedule of future minimum rental payments required under the Company’s current operating leases:
 
 2011   $ 76,158  
 2012      19,040  
 Total       $ 95,198  
 
In March, 2009, the Company converted rent arrearages in the amount of $138,454 into a term loan with its landlord.  The loan requires 48 monthly payments of $3,066 and bears interest at a fixed rate of 6%.  The loan is secured by an officer/stockholder of the Company.
 

 
9