10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended June 30, 2012
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From                          to                        

 

INDEPENDENT FILM DEVELOPMENT CORPORATION

(Name of small business issuer specified in its charter)

Nevada	56-2676759
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)
9107 Wilshire Blvd., Suite 450 Beverly Hills, California	90210
(Address of principal executive offices)	(Zip Code)
Registrant’s telephone number, including area code: (310) 295-1711 6399 Wilshire Blvd., Suite 507, Los Angeles, California 90048 (Former address of principle offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:   Yes  x       No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every

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Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files.)  Yes x   No ¨   

Indicate by check mark whether the registrant is a large accelerated filer, a non–accelerated filer, or a smaller reporting company.   See definitions of large accelerated filer, accelerated filer and smaller reporting company in Section 12b-2 of the Exchange Act.

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes  ¨     No x

As of August 14, 2012, the issuer had 26,120,991 shares of common stock outstanding.

Transitional Small Business Disclosure Format:    Yes    ¨      No   x

Explanatory Note

The purpose of this Amendment No. 1 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012, filed with the Securities and Exchange Commission on August 17, 2012 (the “Form 10-Q”), is solely to furnish Exhibits 101 to the Form 10-Q. Exhibits 101 provides the financial statements and related notes from the Form 10-Q formatted in XBRL (Extensible Business Reporting Language).

No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

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Independent Film Development Corporation

(a Development Stage Company)

FORM 10-Q

For the Quarterly Period Ended June 30, 2012

INDEX

PART I	Financial Information	4
Item 1.	Financial Statements	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	27
Item 4.	Controls and Procedures	27
PART II	Other Information	29
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	33
Item 4.	Mining Safety Disclosures	33
Item 5.	Other Information	33
Item 6.	Exhibits	33
Signatures		35

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Independent Film Development Corporation
(a Development Stage Company)
Balance Sheets
		June 30, 2012			September 30, 2011
		(Unaudited)			(Restated)
ASSETS
Cash	$	—		$	5,222
Accounts receivable		2,270			—
Other receivable		1,000			—
Total Current Assets		3,270			5,222
Other Assets
Website properties, net of accumulated amortization		818,521			350,000
Total Assets	$	821,791		$	355,222
LIABILITIES AND STOCKHOLERS' EQUITY (DEFICIT)
Current Liabilities
Cash overdraft	$	11		$	—
Accounts payable		16,590			18,228
Accounts payable, related party		20,270			25,270
Accrued expenses		48,817			8,824
Accrued officer compensation		295,401			218,450
Advances from officers		2,960			7,837
Due to a related party		440			790
Derivative liability		410,702			116,504
Convertible debentures (net of discount of $256,281 and $55,998, respectively) (see Note 5)		749,769			309,002
Total Liabilities		1,544,960			704,905
Stockholders' Equity (Deficit)
Preferred Stock, $.0001 par value, 15,000,0000 shares authorized, none issued and outstanding		—			—
Common stock , $.0001 par value, 485,000,000
shares authorized, 26,120,991 and 24,120,991  issued and outstanding, respectively		2,612			2,412
Additional paid in capital		3,134,638			2,826,660
Common stock subscribed		709,500			779,000
Deficit accumulated during development stage		(4,569,919	)		(3,957,755	)
Total Stockholders' Equity (Deficit)		(723,169	)		(349,683	)
Total Liabilities and Stockholders' Equity (Deficit)	$	821,791		$	355,222
The accompanying notes are an integral part of these financial statements.

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Independent Film Development Corporation (a Development Stage Company) Statements of Operations (Unaudited)
	For the Nine Months Ended						For the Three Months Ended						September 14, 2007
	June 30,						June 30,						(inception) through
	2012			2011			2012			2011			June 30, 2012
Revenue	$	3,770		$	—		$	3,770		$	—		$	3,770
Cost of revenue		—			—			—			—			—
Gross revenue	$	3,770		$	—		$	3,770		$	—		$	3,770
Operating Expenses:
Officer compensation		191,251			884,500			40,275			213,000			1,013,751
Professional fees		138,754			91,450			90,118			2,050			574,011
Director fees		—			38,000			—			—			38,000
Bad debt expense for stock subscription receivable		—			—			—			—			70,365
General and administrative		53,244			26,189			43,746			23,310			2,575,547
Total operating expenses		383,249			1,040,139			174,139			238,360			4,271,674
Loss from operations		(379,479	)		(1,040,139	)		(170,369	)		(238,360	)		(4,267,904	)
Other income and (expense):
Interest expense		(113,992	)		—			(53,135	)		—			(132,332	)
Gain (loss) on derivative liability		(118,693	)		—			(62,097	)		—			(169,683	)
Total other expense		(232,685	)		—			(115,242	)		—			(302,015	)
Net loss	$	(612,164	)	$	(1,040,139	)	$	(285,611	)	$	(238,360	)	$	(4,569,919	)
Loss per share
Basic and diluted	$	(0.02	)	$	(0.04	)	$	(0.01	)	$	(0.01	)
Weighted average shares
outstanding basic and  diluted		24,591,064			23,128,319			25,417,694			23,413,068

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

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Independent Film Development Corporation
(a Development Stage Company)
Statement of Stockholders’ Equity (Deficit)
	Number of Shares Outstanding		Common Stock at Par Value		Paid in Capital		Deficit Accumulated During Development			Common Stock Subscribed		Stock Subscription Receivable			Total
Beginning balance		—	$	—	$	—	$	—		$	—	$	—		$	—
Stock issued for cash		125		—		500		—			—		—			500
Balance at September 30, 2007		125		—		500		—			—		—			500
Stock issued for cash		18,492		2		35,940		—			—		—			35,942
Net loss for the  year ended September 30, 2008		—		—		—		(33,413	)		—		—			(33,413	)
Balance at September 30, 2008		18,617		2		36,440		(33,413	)		—		—			3,029
Stock issued for cash		34,803		3		109,997		—			—		(85,000	)		25,000
Stock issued for compensation		22,300,000		2,230		2,227,770		—			—		—			2,230,000
Net loss for year ended September 30, 2009		—		—		—		(2,258,311	)		—		—			(2,258,311	)
Balance at September 30, 2009		22,353,420		2,235		2,374,207		(2,291,724	)		—		(85,000	)		(282	)
Stock issued for cash		626,571		63		197,032		—			—		—			197,095
Stock issued for compensation		4,000		—		2,000		—			—		—			2,000
Stock subscription receivable		—		—		—		—			—		22,660			22,660
Net loss for year ended September 30, 2010		—		—		—		(217,881	)		—		—			(217,881	)
Balance at September 30, 2010		22,983,991		2,298		2,573,239		(2,509,605	)		—		(62,340	)		3,592
Stock for other services		556,000		56		211,224		—			171,000		—			382,280
Stock for officer compensation		—		—		—		—			570,000		—			570,000

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Stock for Director fees	—		—		—		—			38,000			—			38,000
Stock issued for cash	575,000		57		39,918		—			—			(8,025	)		31,950
Common stock issued for lock up agreement	6,000		1		2,279		—			—			—			2,280
Write off of stock subscription receivable	—		—		—		—			—			70,365			70,365
Net loss for the year ended September 30, 2011	—		—		—		(1,448,150	)		—			—			(1,448,150	)
Balance at September 30, 2011	24,120,991		2,412		2,826,660		(3,957,755	)		779,000			—			(349,683	)
Write off of stock payable (unaudited)	—		—		95,000		—			(95,000	)					—
Stock for officer compensation (unaudited)	—		—		—		—			25,500			—			25,500
Settlement of derivative liability (unaudited)	—		—		61,188		—			—			—			61,188
Stock issued in conversion of note payable (unaudited)	2,000,000		200		138,290		—			—			—			138,490
Contributed capital (unaudited)	—		—		13,500		—			—			—			13,500
Net loss for the period ended June 30, 2012 (unaudited)	—		—		—		(612,164	)		—			—			(612,164	)
Balance at June 30, 2012 (unaudited)	26,120,991	$	2,612	$	3,134,638	$	(4,569,919	)	$	709,500		$	—		$	(723,169	)

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

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Independent Film Development Corporation
(a Development Stage Company)
Statements of Cash Flows
(Unaudited)
	For the Nine Months Ended						September 14, 2007
	June 30,						(inception) through
	2012			2011			June 30, 2012
Cash flows from operating activities:
Net loss	$	(612,164	)	$	(1,040,139	)	$	(4,569,919	)
Adjustments to reconcile net loss to total cash used in operations:
Common stock for compensation		25,500			570,000			2,827,500
Common stock for other services		—			384,560			384,560
Common stock for Director's fees		—			38,000			38,000
Amortization expense		31,479			—			31,479
(Gain) loss on derivative liability		118,693			—			169,683
Bad debt expense for stock subscription receivable		—			—			70,365
Debt discount amortization		74,900			—			84,416
Change in assets and liabilities:
(Increase) in accounts receivable		(2,270	)		—			(2,270	)
(Increase) in other receivable		(1,000	)		—			(1,000	)
Increase (decrease) in accounts payable		(1,639	)		8,850			16,589
Increase in accounts payable, related party		(5,000	)		—			20,270
Increase in accrued expenses		39,993			—			48,817
Increase in accrued compensation		76,952			—			295,402
Net cash used in operating activities		(254,556	)		(38,729	)		(586,108	)
Cash flows from investing activities		—			—			—
Cash flows from financing activities:
Cash overdraft		11			—			11
Proceeds/payments on loan, related party		(350	)		500			440
Proceeds from debentures		241,050			—			256,050
Proceeds from subscriptions receivable		—			—			22,660
Contributed capital		13,500			—			13,500
Advances from officers		125			7,426			7,962
Payments to officers		(5,002	)		—			(5,002	)
Proceeds from the sale of common stock		—			26,950			290,487
Net cash provided by financing activities		249,334			34,873			586,108
Net increase (decrease) in cash		(5,222	)		(3,856	)		—
Cash at beginning of period		5,222			3,882			—
Cash at end of period	$	—		$	26		$	—
Cash paid for:
Interest	$	—		$	—		$	—
Taxes	$	—		$	—		$	—
Supplemental disclosure of non cash activities
Website property acquired with convertible  debenture	$	500,000		$	—		$	850,000
Common stock issued for conversion of debt	$	100,000		$	—		$	100,000
Settlement of derivative liability	$	99,678		$	—		$	99,678
Debt discount on convertible notes payable	$	275,183		$	—		$	275,183
Forgiveness of stock payable	$	95,000		$	—		$	95,000

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

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Independent Film Development Corporation

(A Development Stage Company)

Notes to Financial Statements

June 30, 2012

(Unaudited)

NOTE 1: HISTORY OF OPERATIONS

Business Activity

Independent Film Development Corporation was incorporated in the State of Nevada on September 14, 2007. Effective April 24, 2008 we commenced operating as a Business Development Company ("BDC") under Section 54(a) of the Investment Company Act of 1940 ("1940 Act").  On September 30, 2009, our board of directors elected to cease operating as a BDC.  

Our current plan of operations is to acquire and develop independent films for production, sales and distribution, with a goal toward significant partnerships with mini-major and the major film studios, such as Lionsgate and Sony, while simultaneously emulating those companies’ recipes for success.

The Company is in the development stage as defined under Statement on Financial Accounting Standards Accounting Standards Codification FASB ASC 915-205 "Development-Stage Entities.”

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

Preparation of Financial Statements

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information.  While these statements reflect all normal recurring adjustments which are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto, which are included in the Company’s Annual Report on form 10-K, as amended, previously filed with the Commission.

The unaudited interim financial statements should be read in conjunction with the Company’s annual report on Form 10-K, as amended, which contains the audited financial statements and notes thereto, together with the Management’s Discussion and Analysis, for the fiscal year ended September 30, 2011.  The interim results for the nine months ended June 30, 2012 are not necessarily indicative of the results for the full fiscal year.

Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. There were no cash equivalents as of June 30, 2012 and September 30, 2011.

Stock Based Compensation

We account for equity instruments issued in exchange for the receipt of goods or services from non-employees. Costs are measured at the fair market value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of the date on which there first exists a firm commitment for performance by the provider of goods or services or on the date performance is complete. The Company recognizes the fair value of the equity instruments issued that result in an asset or expense being recorded by the company, in the same period(s) and in the same manner, as if the

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Company has paid cash for the goods or services.

Use of Estimates

The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Fair Value of Financial Instruments

The carrying amount of cash, notes receivable, accounts payable, accrued liabilities and notes payable, as applicable, approximates fair value due to the short-term nature of these items. The fair value of the related party notes payable cannot be determined because of the Company's affiliation with the parties with whom the agreements exist. The use of different assumptions or methodologies may have a material effect on the estimates of fair values.

ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures.  The carrying amounts reported in the balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

· Level 1:  Observable inputs such as quoted prices in active markets;

· Level 2:  Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;

· Level 3:  Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815.

The following table presents assets and liabilities that are measured and recognized at fair value as of September 30, 2011 and June 30, 2012 on a recurring basis:

September 30, 2011

Description	Level 1		Level 2		Level 3		Total Gains and (Losses)
Derivative		-		-		(116,504)		(50,990)
Total	$	-	$	-	$	(116,504)	$	(50,990)

June 30, 2012

Description	Level 1		Level 2		Level 3		Total Gains and (Losses)
Derivative		-		-		(410,702)		(118,693)
Total	$	-	$	-	$	(410,702)	$	(118,693)

Long Lived Assets

Long lived assets are carried at cost and amortized over their estimated useful lives, generally on a straight-line basis. The Company reviews identifiable amortizable assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value.

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 Income Taxes

Accounting Standards Codification Topic No. 740 “Income Taxes” (ASC 740) requires the asset and liability method of accounting be used for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Net deferred tax assets consist of the following components as of:

		June 30, 2012		September 30, 2011
NOL	$	(612,164)	$	(277,605)
Net Loss		(598,664)		(1,448,150)
Bad debt expense		-		70,365
Loss on derivative liability		118,693		50,990
Debt discount amortization		74,900		9,516
Common stock for Director's fees		-		38,000
Amortization expense		31,479		-
Common stock for other services		-		384,560
Common stock for compensation		25,500		570,000
NOL at end of period	$	(960,256)	$	(602,234)
Effective Rate		0.34		0.34
Deferred Tax Asset		(326,487)		(204,790)
Valuation		326,487		204,790
Deferred Tax Asset	$	-	$	-

In June 2006, the FASB interpreted its standard for accounting for uncertainty in income taxes, an interpretation of accounting for income taxes.  This interpretation clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements in accordance the minimum recognition threshold and measurement attributable to a tax position taken on a tax return is required to be met before being recognized in the financial statements.

The FASB’s interpretation had no material impact on the Company’s financial statements for the period ended June 30, 2012. As of June 30, 2012, the Company had a net operating loss carry forward for income tax reporting purposes of approximately $960,000 that may be offset against future taxable income through 2027. Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited. No tax benefit has been reported in the financial statements, because the Company believes there is a 50% or greater chance the carry forwards will expire unused. Accordingly, the potential tax benefits of the loss carry forwards are offset by a valuation allowance of the same amount.

Derivative Liabilities

The Company records the fair value of its derivative financial instruments in accordance with ASC815, Derivatives and Hedging . The fair value of the derivatives was calculated using a multi-nominal lattice model performed by an independent qualified business valuator. The fair value of the derivative liability is revalued on each balance sheet date with

corresponding gains and losses recorded in the consolidated statement of operations.

Derivative financial instruments should be recorded as liabilities in the balance sheet and measured at fair value. For purposes of the Company’s financial statements fair value was used as the basis for formulating an analysis which has been defined by the Financial Accounting Standards Board (“FASB”) as “the amount for which an asset (or liability) could be exchanged in a current transaction between knowledgeable, unrelated willing parties when neither party is acting under compulsion”. The FASB has provided guidance that its definition of fair value is consistent with the definition of fair market value in IRS Rev. Rule 59-60. In determining the fair value of the derivatives it was assumed that the Company’s business would be conducted as a going concern. These derivative liabilities will need to be marked-to-market each quarter with the change in fair value recorded in the income statement.

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Revenue Recognition

The Company recognizes revenue when persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable, and collection is reasonably assured. The Company currently generates revenue from two sources. The first is through its website property IndieBackers.com, from which the Company receives a percentage of the funds raised for film projects featured on its site. IndieBackers.com is administered and maintained by ibacking Corp. who which the Company has a convertible debenture (Note 5). The second is fees earned from services provided in the capacity of producer and/or sales agent. The company’s primary focus will be to act as a sales agent for independent film producers by providing the sales and marketing services for films.

Earnings (Loss) Per Share

Basic earnings (loss) per share are computed by dividing the net income (loss) by the weighted-average number of shares of common stock and common stock equivalents (primarily outstanding options and warrants). Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options and warrants, using the treasury stock method. The calculation of fully diluted earnings (loss) per share assumes the dilutive effect of the exercise of outstanding options and warrants at either the beginning of the respective period presented or the date of issuance, whichever is later. At June 30, 2012 and September 30, 2011, the Company had no outstanding options or warrants.

NOTE 3: RECENT ACCOUNTING PRONOUNCEMENTS

In September 2011 Accounting Standards Update No. 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for impairment. This ASU's objective is to simplify the process of performing impairment testing for Goodwill. With this update a company is allowed to asses qualitative factors, first, to determine if it is more likely than not (greater than 50%) that the FV is less than the carrying amount. This would be done, prior to performing the two-step goodwill impairment testing, as prescribed by Topic 350.  Prior to this ASU, all entities were required to test, annually, their good will for impairment by Step 1 - comparing the FV to the carrying amount, and if impaired, then step 2 - calculate and recognize the impairment. Therefore, the fair value measurement is not required, until the "more likely than not" reasonableness test is concluded. Effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011.

In May 2011, FASB issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs .    This ASU clarifies the board's intent of current guidance, modifies and changes certain guidance and principles, and adds additional disclosure requirements concerning the 3 levels of fair value measurements. Specific amendments are applied to FASB ASC 820-10-35, Subsequent Measurement and FASB ASC 820-10-50, Disclosures. This ASU is effective for interim and annual periods beginning after December 15, 2011.

In June 2011, FASB issued Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income . - ASU 2011-05. Current US GAAP allows companies to present the components of comprehensive income as a part of the statement of changes in stockholders' equity. This ASU eliminates that option. in this Update, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income This ASU is effective interim and annual periods beginning after December 15, 2011.  This ASU should be applied retrospectively. There are no specific transition disclosures

The Company has implemented all new accounting pronouncements that are in effect.  These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

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NOTE 4: WEBSITE PROPERTIES

During the fourth quarter of fiscal year 2011 the Company hired a third party to develop HollywoodIndy.com. The website promises to be an Internet based entertainment web property specializing in social networking and resourcing, production, development and distribution for independent film and television industry. The revenue model is to sell and market services to the community of entertainment professionals and non professionals in the form of classifieds, education forums and advertising, as well as providing a stable for unique projects to fit in the overall company umbrella. The model provides a unique revenue platform that includes anyone from established professionals looking for the next generation talent to young up-and-coming professionals breaking into the industry. The initial cost of the website of $350,000 has been capitalized due to the future economic benefits it will bring to the company. The cost will be amortized over five years beginning March 6, 2012, the date the website was launched to the public. On July 1, 2011 the company executed a convertible debenture for $350,000 (Note 5) as payment for the development of the website.

During the third quarter of fiscal year 2012 the Company hired a third party to develop Indiebackers.com (IndieBacker). The website is a donation based crowdfunding platform for Indie producers. This platform allows the producer to embark on a project while at the same time obtaining the much needed development money for such a project. IndieBacker is a crowdfunding solution for early stage projects allowing filmmakers to list their new projects on the site for budgets anywhere from $1,000 to $500,000. IndieBacker uses a donation base platform allowing producers to generate a following while raising capital. The revenue model is gross margin of approximately 6% of funds raised for all completed projects. Additional plans call for the brand to also incorporate an equity based platform once crowdfunding laws are fully passed in early 2013. The initial cost of the website of $500,000 has been capitalized due to the future economic benefits it will bring to the company. The cost will be amortized over five years beginning May 29, 2012, the date the website was launched to the public. On May 29, 2012 the company executed a convertible debenture for $500,000 (Note 5) as payment for the development of the website.

NOTE 5: CONVERTIBLE DEBENTURE

On July 1, 2011, the Company entered into an exchange agreement with Junior Capital Inc. (“Junior”), pursuant to which Junior exchanged a $350,000 promissory note for a $350,000 convertible debenture (the “Junior Debenture”). The Junior Debenture accrues interest of 10% and matures on July 1, 2012. Junior has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the common stock on the date of issuance, or $0.05 per share of common stock on the date of conversion as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock. As of June 30, 2012, $100,000 of the $350,000 debenture was converted into 2,000,000 shares of common stock.

On October 25, 2011 the Company issued a convertible debenture/note payable to Junior Capital, Inc. for $20,000; $15,000 of this amount was advanced to the Company prior to signing the debenture and prior to the year ended September 30, 2011. The remaining $5,000 was received in October 2011.  The Debenture accrues interest of 10% beginning on October 25, 2011 and matures on October 25, 2012. Junior has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the common stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock. As of June 30, 2012 $20,000 of the principal face value of the Junior Debenture remains outstanding.

On October 28, 2011, the Company entered into an exchange agreement with Editor Newswire Inc. (“Editor”), pursuant to which Editor exchanged a $20,000 promissory note for a $20,000 convertible debenture (the “Editor Debenture”). The Editor Debenture accrues interest of 10% and matures on October 28, 2012. Editor has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the common stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock. As of June 30, 2012 $20,000 of the principal face value of the Debenture remains outstanding.

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On November 18, 2011, the Company entered into an exchange agreement with Editor Newswire Inc. (“Editor”), pursuant to which Editor exchanged a $25,000 promissory note dated November 18, 2011 for a $25,000 convertible debenture (the “Editor Debenture”). The Editor Debenture accrues interest of 10% and matures on November 18, 2012. Editor has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the Common Stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock. As of June 30, $25,000 of the principal face value of the Debenture remains outstanding.

On January 11, 2012, the Company entered into a $33,000 convertible debenture with Junior Capital Inc. (“Junior”). The Junior Debenture accrues interest of 10% and matures on January 11, 2013. Junior has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the Common Stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock. As of June 30, 2012 $33,000 of the principal face value of the Debenture remains outstanding.

On March 15, 2012, the Company entered into a $40,000 convertible debenture with Junior Capital Inc. (“Junior”). The Junior Debenture accrues interest of 12% and matures on March 15, 2013. Junior has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the Common Stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock. As of June 30, 2012 $40,000 of the principal face value of the Debenture remains outstanding.

On April 9, 2012, the Company entered into a $100,000 convertible debenture with Neil Linder. The debenture accrues interest of 12% and matures on April 9, 2013. Mr. Linder has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to the lesser of fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the Common Stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock. As of June 30, 2012 $100,000 of the principal face value of the Debenture remains outstanding.

On May 29, 2012, the Company entered into a $500,000 convertible debenture with iBacking Corp. The iBacking Debenture accrues interest of 12% and matures on May 29, 2013. iBacking has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to the lesser of fifty percent (50%) of the lowest closing bid price of common stock during the ten trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the Common Stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock. As of June 30, 2012 $500,000 of the principal face value of the Debenture remains outstanding.

On June 5, 2012, the Company entered into an $18,000 convertible debenture with Junior Capital Inc. (“Junior”). The Junior Debenture accrues interest of 12% and matures on June 5, 2013. Junior has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the Common Stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock. As of June 30, 2012 $18,000 of the principal face value of the Debenture remains outstanding.

The following inputs and assumptions were used to value the secured convertible notes issued in the year ended September 30, 2011 and June 30, 2012:

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• The convertible promissory notes have a conversion price of the lesser of 50% of the average of the lowest closing bid stock prices (lowest closing bid price for the 5/29/12 note) over the last 5-10 days or 50% of the closing bid price at issuance (or $0.05 for the 7/1/11 note) and contains no dilutive reset feature.
• The stock price would fluctuate with an annual volatility. The projected volatility curve was based on historical volatilities of the 18 comparable companies in the entertainment industry.
• The Holder would redeem based on availability of alternative financing, increasing 1.0% monthly to a maximum of 10%
• The Holder would automatically convert the note at maturity if the registration was effective and the company was not in default.

A summary of the activity of the derivative liability is shown below:

Balance at September 30, 2010	$	-
Increase in derivative due to new issuances		65,514
Derivative loss due to new issuances		19,602
Derivative loss due to mark to market adjustment		31,388
Balance at September 30, 2011		116,504
Increase in derivative due to new issuances		275,183
Derivative loss due to new issuances		85,169
Decrease in derivative due to settlement of debt		(99,678)
Derivative loss due to mark to market adjustment		33,524
Balance at June 30, 2012	$	410,702

 NOTE 6: COMMON STOCK TRANSACTIONS

During the period from September 14, 2007 (inception) through September 30, 2007 the Company issued 125 common shares for $500 cash.

During the year ended September 30, 2008 the Company issued 18,492 common shares for $35,942 cash.

During the year ended September 30, 2009 the Company issued 34,803 common shares for $25,000 cash and a subscription receivable in the amount of $85,000. During the year ended September 30, 2010 the Company received $22,660 on its subscription receivable. As of December 31, 2011 it was determined that the remaining receivable would not be collected; as a result the company credited the stock subscription receivable account and debited bad debt expense for $62,340.

On September 30, 2009 the Company’s Board of Directors authorized the issuance of 200,000 common shares to Directors Robert Searcy and Patrick Peach, as compensation for two years’ services rendered, pursuant to Section 4(2) of the Securities Act of 1933. Due to the volatility of the market and the limited trading of the Company’s stock, shares were valued at $0.10 by the Board of Directors.

On September 30, 2009 the Company’s Board of Directors authorized the issuance of, 200,000 shares and 500,000 shares to Jeff Ritchie, the Company’s President and Director for compensation for two years’ services rendered, and 10 million shares in exchange for business opportunities assigned to the company, pursuant to Section 4(2) of the Securities Act of 1933. Due to the volatility of the market and the limited trading of the Company’s stock, shares were valued at $0.10 by the Board of Directors.

On September 30, 2009 the Company’s Board of Directors authorized the issuance of, 200,000 shares and 500,000 shares to Kenneth Eade, an Officer and Director for compensation for two years’ services rendered, 500,000 for two years’ legal services rendered, and 10 million shares in exchange for business opportunities assigned to the company, pursuant to Section 4(2) of the Securities Act of 1933. Due to the volatility of the market and the limited trading of the Company’s stock, shares were valued at $0.10 by the Board of Directors.

During the three month period ended December 31, 2009 the Company issued 90,000 common stock shares for total consideration of $45,000.

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During the three months ended June 30, 2010 the Company issued 406,571 common shares for total consideration of $119,595.

During the three months ended June 30, 2010, the Company issued 4,000 common shares for services totaling $2,000. Due to the volatility of the market and the limited trading of the Company’s stock, shares were valued at $0.10 by the Board of Directors.

During the three months ended September 30, 2010, the Company issued 130,000 common shares for total consideration of $32,500.

On March 31, 2011 the Company’s Board of Directors authorized the issuance of 100,000 common shares for Director’s fees totaling $38,000, based on the value of the common stock on the date of authorization. As of June 30, 2012 these shares had not yet been issued and therefore have been recorded as a stock payable.

On March 31, 2011 the Company’s Board of Directors authorized the issuance of 750,000 shares each to Jeff Ritchie, the Company’s CEO and Kenneth Eade the Company’s former CFO, for compensation for services rendered in 2010, and an additional 200,000 shares to Kenneth Eade for legal services rendered, for total consideration of $646,000, based on the value of the common stock on the date of authorization. As of June 30, 2012 these shares had not yet been issued and therefore have been recorded as a stock payable.

During the three month period ended March 31, 2011, the Company authorized the issuance of 250,000 common shares for services valued at $95,000, based on the value of the common stock on the date of authorization. These shares were never issued and the Company’s original agreement with the service provider was modified. As such the Company is no longer obligated to issue the 250,000 shares and has written the $95,000 payable off to additional paid in capital, given that at the time the stock was authorized to be issued the service provider was a Director of the Company.

On May 10, 2011 the Company issued 300,000 common shares for cash proceeds of $6,975 and a subscription receivable in the amount of $8,025. As of December 31, 2011 it was determined that the remaining receivable would not be collected; as a result the company credited the stock subscription receivable account and debited bad debt expense for $8,025.

On May 9, 2011 the Company issued 6,000 common shares for a lock up agreement in which the stockholder agreed not to transfer any of his shares for an agreed upon time. The Company recorded an expense of $2,280 based on the value of the common stock on the date of authorization.

On May 10, 2011 the Company issued 6,000 common shares to a stockholder for shares authorized in a prior period. The Company recorded an expense of $2,280 based on the value of the common stock on the date of authorization.

On June 24, 2011, the Company authorized the issuance of 550,000 common shares for services valued at $209,000, based on the value of the common stock on the date of authorization. The shares were issued in July 2011.

During the year ended September 30, 2011, the Company issued 275,000 common shares for total consideration of $24,975.

On March 7, 2012, the Company authorized the issuance of 450,000 common shares in conversion of $22,500 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture.

On March 28, 2012, the Company authorized the issuance of 450,000 common shares in conversion of $22,500 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture

On February 7, 2012, the Company authorized the issuance of 50,000 common shares to Rachel Boulds, the Company’s CFO, for compensation of services. The shares were issued at $0.51 based on the value of the common stock on the date of authorization. As of June 30, 2012 the shares had not yet been issued and as such have been booked as a stock payable.

On April 20, 2012, the Company authorized the issuance of 450,000 common shares in conversion of $22,500 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture

On June 13, 2012, the Company authorized the issuance of 250,000 common shares in conversion of $12,500 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture

On June 28, 2012, the Company authorized the issuance of 400,000 common shares in conversion of $20,000 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture

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NOTE 7: RELATED PARTY TRANSACTION

During the three month period ended March 31, 2011, the Company authorized the issuance of 250,000 common shares for services valued at $95,000, based on the value of the common stock on the date of authorization. These shares were never issued and the Company’s original agreement with the service provider was modified. As such the Company is no longer obligated to issue the 250,000 shares and has written the $95,000 payable off to additional paid in capital, given that at the time the stock was authorized to be issued the service provider was a Director of the Company.

As of June 30, 2012, the Company owed its officers a total of $2,960. The money was loaned to the company to cover certain operating expenses. In addition, a relative of one of the Company’s officers is owed $150 and a shareholder is owed $290, for funds advanced to cover certain expenses. Amounts are due on demand and have no stated rate of interest.

On February 7, 2012, the Company authorized the issuance of 50,000 common shares to Rachel Boulds, the Company’s CFO for compensation of services. The shares were issued at $0.51 based on the value of the common stock on the date of authorization. As of June 30, 2012 the shares had not yet been issued and as such have been booked as a stock payable.

NOTE 8: FINANICIAL STATEMENT RESTATEMENT

As a result of the Company engaging a third party to perform a valuation analysis of its derivative instruments in the second quarter it became necessary to restate the financial statements for the year ended September 30, 2011. The results of that restatement are as follows.

1) Increase of $2 due to rounding/balancing of financials.

2) All changes are a result of the independent valuation analysis of the Company’s derivative instruments.

3) It was subsequently determined that this receivable was deemed uncollectable as of September 30, 2011.

4) Change due to restatement of the Year Ended September 30, 2011.

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		September 30, 2011
		As Reported		Adjustment			As Restated
Cash	$	5,222	$	-		$	5,222
Website property, net of accumulated amortization		350,000		-			350,000
Total Assets	$	355,222	$	-		$	355,222
Current Liabilities
Accounts payable	$	20,228	$	-		$	20,228
Accounts payable, related party		23,270		-			23,270
Accrued expenses		8,822		2	1		8,824
Accrued officer compensation		218,450		-			218,450
Advances from officers		7,837		-			7,837
Due to a related party		790		-			790
Derivative liability		-		116,504	2		116,504
Convertible debentures , net of discount		88,225		220,777	2		309,002
Total Liabilities		367,622		337,283			704,905
Stockholders' Equity (Deficit)
Common stock , $.0001 par value, 485,000,000 shares authorized, 24,570,991 and 24,120,991  issued and outstanding, respectively		2,412		-			2,412
Additional paid in capital		3,191,660		(365,000)	2		2,826,660
Common stock subscribed		779,000		-			779,000
Stock subscription receivable		(70,365)		70,365	3		-
Deficit accumulated during development stage		(3,915,107)		(42,648)	4		(3,957,755)
Total Stockholders' Equity (Deficit)		(12,400)		(337,283)			(349,683)
Total Liabilities and Stockholders' Equity (Deficit)	$	355,222	$	-		$	355,222

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		For the Year Ended September 30, 2011
		As Reported		Adjustment			As Restated
Investment income	$	-	$	-		$	-
Total income		-		-			-
Expenses
Officer compensation		810,100		-			810,100
Professional fees		429,657		-			429,657
Director fees		38,000		-			38,000
Bad debt expense		-		70,365	3		70,365
General and administrative		30,698		-			30,698
Total operating expenses		1,308,455		70,365			1,378,820
Net loss from operations	$	(1,308,455)	$	(70,365)		$	(1,378,820)
Other income and (expense)
Gain on derivative liability		-		(50,990)	2		(50,990)
Interest expense		(97,047)		78,707	2		(18,340)
Total other expense		(97,047)		27,717			(69,330)
Net loss	$	(1,405,502)	$	(42,648)	4	$	(1,448,150)
Loss per share
Basic and diluted	$	(0.06)	$	-		$	(0.06)
Weighted average shares outstanding basic and  diluted		23,344,668		-			23,344,668

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		December 31, 2011
		As Reported		Adjustment			As Restated
Cash	$	-	$	-		$	-
Website property, net of accumulated amortization		350,000		-			350,000
Total Assets	$	350,000	$	-		$	350,000
Current Liabilities
Cash overdraft	$	2	$	-			2
Accounts payable		15,080		-			15,080
Accounts payable, related party		23,270		-			23,270
Accrued expenses		23,156		123			23,279
Accrued officer compensation		260,045		-			260,045
Advances from officers		7,922		-			7,922
Due to a related party		790		-			790
Derivative liability		-		123,895	2		123,895
Convertible debentures , net of discount		187,762		137,014	2		324,776
Total Liabilities		518,027		261,032			779,059
Stockholders' Equity (Deficit)
Common stock , $.0001 par value, 485,000,000 shares authorized, 24,570,991 and 24,120,991  issued and outstanding, respectively		2,412		-			2,412
Additional paid in capital		3,249,660		(365,000)			2,884,660
Common stock subscribed		779,000		-			779,000
Deficit accumulated during development stage		(4,199,099)		103,968			(4,095,131)
Total Stockholders' Equity (Deficit)		(168,027)		(261,032)			(429,059)
Total Liabilities and Stockholders' Equity (Deficit)	$	350,000	$	-		$	350,000

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		For the Three Months Ended December 31, 2011
		As Reported		Adjustment			As Restated
Investment income	$	-	$	-		$
Total income		-		-
Expenses
Officer compensation		75,000		-			75,000
Professional fees		26,825		-			26,825
Bad debt expense		70,365		(70,365)	3		-
General and administrative		2,431		-			2,431
Total operating expenses		174,621		70,365			104,256
Net loss from operations	$	(174,621)	$	70,365		$	(104,256)
Other income and (expense)
Loss on derivative liability		-		(7,391)	2		(7,391)
Interest expense		(109,371)		83,642	2		(25,729)
Total other expense		(109,371)		76,251			(33,120)
Net loss	$	(283,992)	$	146,616			(137,376)

NOTE 9: GOING CONCERN

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has generated minimal revenue during the period September 14, 2007 (inception) through June 30, 2012, has an accumulated deficit of $4,569,919 and has funded its operations primarily through the issuance of debt and equity. This matter raises substantial doubt about the Company's ability to continue as a going concern.

These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Accordingly, the Company’s ability to accomplish its business strategy and to ultimately achieve profitable operations is dependent upon its ability to obtain additional debt or equity financing. Management plans to take the following steps that it believes will be sufficient to provide the Company with the ability to continue in existence.

Management intends to raise financing through private equity financing or other means and interests that it deems necessary. The Company, as described above, is in the business of investing in operations of other companies. There can be no assurance that the Company will be successful in its endeavor.    

NOTE 10: SUBSEQUENT EVENTS

The Company has performed an evaluation of subsequent events in accordance with ASC Topic 855.  The Company is not aware of any subsequent events which would require recognition or disclosure in the financial statements except as follows.

Subsequent to the quarter ended June 30, 2012, the Company authorized the issuance of 2,015,385 common shares in conversion of $65,500 of the Junior Capital debentures. The shares were issued at $0.0325, which was equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date.

On July 1, 2012, the Company’s $350,000 convertible debenture with Junior Capital Inc. was in default for nonpayment. As of the date of default the Company owed $250,000 plus accrued interest on the debenture.

On July 16, 2012, the Company entered into a Sales Agent Agreement with 3KG, LLC. The Company is to serve as Executive Producer and Sales Agent for the motion picture being made. The agreement has a term of fifteen years and includes a Producer fee, funds to cover expenses and commissions from gross proceeds of the film.

On July 16, 2012, the Company authorized the issuance of 5,000 common shares for services.

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Item 2:  Management’s Discussion and Analysis or Plan of Operation

The following discussion of our financial condition and results of operations should be read in conjunction with the financial statements and related notes to the financial statements included elsewhere in this filing as well as with Management’s Discussion and Analysis or Plan of Operations contained in the Company’s Report on Form 10-K, as amended, for the period ended September 30, 2011, filed with the Securities and Exchange Commission.  

Forward Looking Statements

This discussion and the accompanying financial statements (including the notes thereto) may contain “forward-looking statements” that relate to future events or our future financial performance, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward looking statements are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These risks and other factors include, among others, those listed under “Risk Factors” in Part II Item 1a. and those included elsewhere in this filing.  For a more detailed discussion of risks and uncertainties, see the Company’s public filings made with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statements.

Plan of Operations

Independent Film Development Corporation’s (IFDC’s) overall plan of operations is to acquire and develop independent films for production, sales and distribution, with a goal toward significant partnerships with mini-major and the major film studios, such as Lionsgate and Sony, while simultaneously emulating those companies’ recipes for success.   

IFDC’s mission is to develop, produce and acquire films with high profit margins and built in “profit” safety nets. We will seek to leverage the combined talents of an experienced management/producing and sales/distribution team to develop, produce and acquire films for sale and distribution, IFDC will look to incorporate and acquire additional entertainment businesses that compliment and assist us to increase the value of our overall securities, and enhance shareholder value.

IFDC’s plan of operations has three main components of film production and finance; co-financing, acquiring product in the development stage, and its own film production.  This, coupled with film distribution, makes up the revenue model for the Company.

HollywoodIndy.Com: HollywoodIndy.com is an Internet based entertainment company specializing in social networking and resourcing for independent film and television development, production and distribution.  The social networking component of HollywoodIndy, which will invite any person to become a member and create their own profile, will be unique in that its main purpose will be to connect people with an interest in film and television production.  HollywoodIndy’s interface will have active pages with video, graphics, interactive resumes, and links to other areas of the site as well as other member’s pages.  We are designing this aspect of the site to monetize the site through paid upgrades, which will allow upgraded members access to our jobs board and production /distribution resources.  Our resource database, which will be fed by working professionals in the industry, will offer immediate access to upgraded members to resources in film and television development, screen writing, casting, budgeting, scheduling, financing and tax incentives, as well as completion bonds, locations, personnel, film equipment, support services, sound and film lab, digital intermediate services, delivery services, and full access to the Company’s film distribution services.  Our goal in distribution is to evaluate and obtain distribution rights to independent films our management team feels will be the most profitable, while offering online distribution to a full spectrum of segmented video and short films to full length features, with an aim to emulating Netflix for independent film distribution, and monetizing the YouTube phenomenon.

Indiebackers.com: During the third quarter of fiscal year 2012 the Company hired a third party to develop Indiebackers.com (IndieBacker). The website is a donation based crowdfunding platform for Indie producers. This platform allows the producer to embark on a project while at the same time obtaining the much needed development money for such a project. IndieBacker is a crowdfunding solution for early stage projects allowing filmmakers to list their new projects on the site for budgets anywhere from $1,000 to $500,000. IndieBacker uses a donation base platform allowing producers to generate a following while raising capital. The platform will allow tracked users to donate as little as $1 up to as much money as they would like to any given project. The model allows early stage projects the opportunity to raise the much needed seed capital in the form

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of donation based sales. IndieBacker solves many problems in getting an early stage project off the ground. Not only will it provide the necessary early capital but also gives an opportunity to negotiate from a position of strength if it can demonstrate a broad following with capital, talent and production services. Plans call for the brand to accept 2,500 projects by the end of 2013 with estimated budgets of $25,000. The revenue model is gross margin of approximately 6% of funds raised for all completed projects. Additional plans call for the brand to also incorporate an equity based platform once croudfunding laws are fully passed in early 2013. The initial cost of the website of $500,000 has been capitalized due to the future economic benefits it will bring to the company. The cost will be amortized over five years beginning May 29, 2012, the date the website was launched to the public. On May 29, 2012 the company executed a convertible debenture for $500,000 (Note 5) as payment for the development of the website.

Co-Financing

Co-financing is where a company such as IFDC goes out looking for films that are already financed at 50% or more. This can afford IFDC an opportunity to come in with the remaining funds and as co-financier/executive producer.

The average co-financing deal usually requires a project that, subject to our review, has:

• A good script

• A solid Director

• Actors of some prominence

The film would also be required to have some type of distribution already in place from foreign, domestic or both.  If the project meets with our project requirements we would partner with the production and bring in the remaining cash.

For our investment we would expect an average of 110% to 130% return. Once IFDC and all other investors have recouped, then all additional income from the film would be split on a percentage basis based on the amount of the individual investor’s original investment.  In addition, IFDC would receive a presentation credit in the opening titles and normally one or two executive producer credits. This not only will build IFDC’s brand name nationally and internationally it also helps us gain the respect of our peers in the industry. IFDC will constantly be on the lookout for these types of co-financing projects.

Acquire and Develop Original Product in Development Stage

With this strategy we will seek projects at an early stage, usually with a finished script and possibly a director, producer or actor attached, or some amount of equity, usually in the range of 10% to 25%.

The requirements are very similar to all of our production strategies:

1.     Well written salable script with a genre that is on the wave of coming into popularity

2.     Salable actors attached or interested

3.     Director of some prominence (actor directors for example)

4.     Projects that have some hard money attached

5.     Projects that have some form of distribution (rarely found at this stage)

6.     Projects that have some studio interest (rarely found at this stage)

IFDC will seek out projects that have many of the points listed above, then “option” the projects for a period of one to three years for as little money as possible, sometimes without any cash up front at all.

IFDC will then set about developing the project to get it to the point of funding. This will include script re-writes, and attaching actors. We will also use any director or producer already attached to the film to help with the work thus enabling IFDC to have several projects developing at once while not straining our resources; we have the individual filmmakers do the lion’s share of the work while we supervise and advise.

If the project gets to a point where we think it is strong enough, we will attempt to procure financing through traditional film financing sources such as foreign and domestic deals. If we think the individual project is strong enough, we can try to raise a portion or all of the money ourselves through private investors.

If we are unsuccessful at any stage of the game we can stop devoting resources to the project and allow the option to simply expire.

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With this strategy IFDC plans to harvest the best and strongest projects to proceed forward into production.  The advantages to acquisitions at the development stage are: the ability to guide the development process along, gearing it for success, steering the important decisions such as cast and director in a direction that will help make a more successful and profitable film. In addition we will be able to gauge the viability of the project with a small investment and will not risk big dollars, resources, and time before we can establish if the film is marketable or not.

The negatives are that we will spend small amounts of cash developing projects, some of which we will not bring to fruition, and so those projects will be a loss, but the films we do move forward on will be much more assured of financial success.

Film Distribution

IFDC’s plan of operations includes developing a distribution arm with the help of its management.

Each year, independent filmmakers produce over 15,000 films while only a small fraction are able to secure distribution for their product.  At the same time, the proliferation of theatrical and home entertainment outlets, including DVD/video (e.g., Netflix, Fox Video, Sony Video, Wal-Mart, Blockbuster), pay-per-view/video-on-demand (e.g., IN DEMAND), pay & free cable/satellite (e.g., HBO, Showtime), free television, new media (internet, pod-casting, web series, electronic delivery systems) and international markets, has resulted in an ever-increasing demand for filmed entertainment content around the globe.   However, the market connecting the filmmakers and the buyers of content is controlled by a few players in the industry.

The majority of the film distribution business will operate in a small, low risk, and profitable segment of the entertainment industry that connects the independent filmmakers and distribution outlets.  The company’s principal activities will consist of the following three complementary areas (in order of emphasis):

Sales agent – The Company licenses partially or fully completed films made by independent filmmakers to entertainment distributions companies such as those listed above.  The company recoups expenses and earns commissions from the first dollar collected under the licensing deals it generates.   Unlike film producers who make large investments in the production of their films (with little guarantee of return), the company is able to generate its revenue from these films with minimal investment and risk.

Negative pickups – The Company produces a film on behalf of a studio.  The company earns the difference between the predetermined budget and the actual cost of making the film, as well as a producer’s fee, typically generating between 5% - 10% of the total budget.

Film production – The Company identifies, produces, and secures distribution of a film.  The Company owns the film in perpetuity and directly participates in all revenue generated by the film.  The company will only produce films when distribution is secured in advance by its sales agent arm.

There are few significant players in the small independent film sales agent business. The more prominent companies in this sector now focus on larger independent films.  Companies such as New Line Cinema, LionsGate, and The Weinstein Company, all began selling and distributing low-budget independent films before being acquired by major studios or going public.  As these companies have grown, their business has progressed towards larger budget films, creating a large opportunity for The Company with smaller budgeted films.  In addition, investors such as Mark Cuban and Paul Allen are investing millions of dollars in entertainment production and distribution companies, such as Lions Gate, in order to secure content for their media outlets (HDNet and Charter Communications respectively).

Distribution Products and Services

The majority of the company’s distribution business will focus on the licensing of independently produced films to domestic and international distributors (as “sales agent”).  In addition, The company will produce small budget movies for major and sub-major studios (“negative pickups”) as well as produce movies that the Company will own (“internal productions”) in perpetuity.  All facets of The Company’s business are low-risk while the sales agent and internal production are highly complementary.

Sales Agent

The overwhelming majority of independent films are made without adequate financing and/or distribution arrangements.  Often independent filmmakers run out of money during the finishing stages of a film.  In some cases, films get “stuck” in

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post production due to lack of payment to suppliers or become foreclosed films held by financial institutions and/or post production houses.  Those that have managed to complete their films then have the daunting undertaking of marketing the film to distributors.

The company’s primary focus will be to act as a sales agent for independent film producers by providing the sales and marketing services for films.  The company acquires the rights to license these films (which are either fully or partially completed) from the filmmakers for little or no cash outlay.  The company then licenses the films to distributors in the various outlets (i.e., theatrical, home video, cable, TV, international).  The process usually takes between 1 – 12 months beginning when the sales agreement is effected with the filmmaker.  For a minimum cash outlay, The Company participates in the revenue streams of films that cost hundreds of thousands to millions of dollars to produce.   In addition, The Company earns commissions from the first dollar received and recoups its upfront expense before the producer receives any proceeds.

The company’s principals have the relationships and credibility with independent filmmakers, production suppliers and the distribution companies.    Further, the production experience of the company’s principals enables them to enable the completion of any unfinished films quickly and efficiently.

Acquisitions and Marketing

The company will identify films through its network of independent filmmakers as well as industry festivals and trade shows including Sundance, Tribeca, Cannes, and Toronto.   

The company will acquire the rights to license (as sales agent) films for a period of 7-25 years in return for a commission ranging from 10-30% of the licensing fees paid by the distributors.  In some cases, the Company will incur minimal upfront costs including: advances to the filmmaker, costs for finalizing the film, and marketing costs.  Upon signing a sales agent agreement, the Company and the filmmakers agree on the “market attendance fees”, trailer/artwork and other marketing costs.  These costs, along with any advances to the filmmaker and/or costs to complete the film, are recouped by the Company after its commission, but before any proceeds are paid to the filmmaker.  The company will incur costs of approximately $40,000 to $150,000 per film to prepare marketing materials including the production of a trailer and artwork.

The company will market these films to distributors in all domestic and international outlets by utilizing its relationships with distributors for various markets as well as through industry shows and conferences (e.g., AFM, MIPCOM, NATPE).

Negative Pickups

Studios often hire film production companies to produce lower budgeted films.  In these situations, known as “negative pickups”, the studio and the production company agree on a budget for the film and the production company keeps the difference of the budget and the actual cost of producing the film, as well as a producer’s fee, typically generating between 5% - 10% of the total budget.

The company’s principals have profitably produced low budget films.  The company’s ability to produce quality films at or under budget stems from low overhead and excellent relationships with industry suppliers.  As the company does not receive funds (other than the producer’s fee which is paid over the course of production) from the studio until after the film is delivered, a credit facility would be arranged to cover the cost of producing the film.  

Internal Production

The financing and production of movies is often the riskiest and most rewarding part of the entertainment business. The company plans to mitigate the inherent risks by only producing films that have secured distribution in some or all markets.  In addition, the Company will act as the sales agent for the films it produces.  

Initially, the Company will produce quality, moderately budgeted feature-length motion pictures, from a variety of genres, for worldwide distribution, which it will generally develop internally.  Said films will have a majority of the production budget pre-sold prior to embarking on production.  The Company will look to have approximately 75% of any individual budget covered by license fees to mitigate the downside risk of production.

 Late-Night Banner

Under a Late Night banner, the Company will produce feature-length motion pictures, generally budgeted at approximately $200,000 each (inclusive of corporate overhead and distribution expenses), with erotic R-Rated content that is produced to be distributed worldwide to cable television channels (such as HBO, Showtime, Cinemax and Playboy TV.) worldwide during “late-night” time slots, and to and through the home entertainment distribution window (such as video and DVD). Depending

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on the products' genre and the audience the company wants to reach, this will determine which strategy needs to be implemented.  IFDC has three strategies depending on the project:

1. Direct to Video (Home Video), Domestic and Foreign

2. Limited Theatrical, then Video, Domestic and Foreign

3. World Wide Theatrical then Video, Domestic and Foreign

All of these involve the company making a licensing agreement with a distribution company. We at IFDC strive to make strategic relationships with the best companies here in the United States and internationally. We will do this by fostering relationships at various festivals and film markets like MIPTV, MIFED, AFM and Cannes Market.

Direct to Video (Home Video) - this will be used to create equity by selling the licenses for our current back catalogue for home video market.

We will find a DVD label that is compatible with our vision for this title. They will make a good transfer and only use the best quality for production in the creation of the DVD.

The DVD label will do a cross-market promotion of IFDC and the title, via press releases, PR and various other media on the release of the DVD, and then reviews after the title is released.

IFDC's name and branding will be shared with the DVD Company on the DVD packaging.  IFDC will negotiate a good licensing fee with profits paid out every three months.

Direct to video will also be a possible route for some of IFDC’s smaller budget films that don’t meet to the standards of theatrical but are made with a small enough budget have a smaller overhead and so would be fine with a direct to video release.

Limited Theatrical

• 3 to 4 months, of festival support to garner hype and awards in various film festivals, both domestically and internationally

• We will then carry this hype and PR on to one of the major film markets where we will acquire a distribution deal with a sales company or a studio (if a deal is not already in place). In the deal we will attempt to procure a limited theatrical release based on the success and exposure of the film at the markets and festivals.

• After the limited theatrical run we will sell the rights to both foreign and domestic for DVD rights, via the direct-to-video plan mentioned in our first strategy.

Full Theatrical

This is where we would sell all rights to a studio or mini major, they in turn would handle all distribution and advertisement for both theatrical and home video markets.

Results of Operations – Three Months Ended June 30, 2012 as Compared to the Three Months Ended June 30, 2011

For the three months ended June 30, 2012 officer compensation was $40,275 as compared to $21,000 for the same period in the prior year. In the prior year the Company had no formal employment contracts in place. In the current period the Company now has employment agreements in place for its officers resulting in a more consistent expense going forward

For the three months ended June 30, 2012 professional fees increased $88,068 to $90,118 compared to $2,050 for the three months ended June 30, 2011. The increase is mainly attributed to expenses for public relations as the Company expands its efforts to market itself and its website properties.

Net loss increased by $47,251 to $285,611 from $238,360 for the three months ended June 30, 2012 as compared to the three months ended June 30, 2011.  The increase can be largely attributed to an increase in interest expense.

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Results of Operations – Nine Months Ended June 30, 2012 as Compared to the Nine Months Ended June 30, 2011

For the nine months ended June 30, 2012 officer compensation was $191,251 as compared to $884,500 for the same period in the prior year. In the prior year the Company had no formal employment contracts in place but did authorize the issuance of common shares, valued at $646,000, to its officers. In the current period the Company now has employment agreements in place for its officers resulting in a more consistent expense going forward. In addition to the regular compensation during the current period the Company authorized the issuance of shares for compensation valued at $25,500.

For the nine months ended June 30, 2012 professional fees increased $47,304 to $138,754 compared to $91,450 for the nine months ended June 30, 2011. Professional fees mainly consist of accounting, auditing and public relations. The increase is mainly attributed to expenses for public relations as the Company expands its efforts to market itself and its website properties.

Net loss decreased by $427,975 to $612,164 from $1,040,139 for the nine months ended June 30, 2012 as compared to the nine months ended June 30, 2011.  The decrease can be largely attributed to a decrease in the issuance of stock for services.

For the nine months ended June 30, 2012 the Company incurred $199,161 of interest expense compared to $0 for the nine months ended June 30, 2011. In addition, the Company also recorded a $33,524 loss on derivative liability.

 Cash Flow

During the nine months ended June 30, 2012, the Company used $254,556 of cash for operating activities and received net proceeds from financing activities of $249,334.

Critical Accounting Estimates and Policies

The discussion and analysis of our financial condition and plan of operations is 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, revenue and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates including, among others, those affecting revenue, the allowance for doubtful accounts, the salability of inventory and the useful lives of tangible and intangible assets. The discussion below is intended as a brief discussion of some of the judgments and uncertainties that can impact the application of these policies and the specific dollar amounts reported on our financial statements. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form our 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, or if management made different judgments.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

The Company’s business activities contain elements of risk. The Company considers a principal type of market risk to be a valuation risk. All assets will be valued at fair value as determined in good faith by or under the direction of the Board of Directors and management.  Market prices of common equity securities in general, are subject to fluctuations which could cause the amount to be realized upon sale to differ significantly from the current reported value. The fluctuations may result from perceived changes in the underlying economic characteristics of the Company’s assets, general market conditions and supply and demand.

Item 4: Controls and Procedures

Evaluation of disclosure controls and procedures

Under the supervision and with the participation of our management, including our President, Chief Executive Officer/Chief Financial Officer (the “Certifying Officer”) we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”). Based upon that evaluation, the Certifying Officers concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were not effective. We identified material weaknesses discussed below in the managements report on internal control over financial reporting.

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Report of Management on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that:

(i)    Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

(ii)  Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

(iii)   Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement to the Company’s annual or interim financial statements will not be prevented or detected.

In the course of management’s assessment, we have identified the following material weaknesses in internal control over financial reporting:

●  Segregation of Duties – As a result of limited resources, we did not maintain proper segregation of incompatible duties. Namely the lack of an audit committee, an understaffed financial and accounting function, and the need for additional personnel to prepare and analyze financial information in a timely manner and to allow review and on-going monitoring and enhancement of our controls. The effect of the lack of segregation of duties potentially affects multiple processes and procedures.

●   Maintenance of Current Accounting Records – This weakness specifically affects the payments and purchase cycle and therefore we failed to maintain effective internal controls over the completeness and cut off of accounts payable, expenses and other capital transactions.

We are in the continuous process of improving our internal control over financial reporting in an effort to eliminate these material weaknesses through improved supervision and training of our staff, but additional effort is needed to fully remedy these deficiencies. Management has engaged an accountant as a consultant to assist with the financial reporting process in an effort to mitigate some of the identified weaknesses.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Changes in Internal Control over Financial Reporting

There have been no changes in internal control over financial reporting since the last fiscal quarter of calendar year 2011, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are not a party to any material pending legal proceedings and, to the best of our knowledge, no such action by or against the Company has been threatened, except that, on or about September 1, 2011, the company and its Chief Executive Officer and Chief Compliance Officer filed a complaint in federal court, Central District of California, Case No. CV-11-07233 DMG (MRWx), to recover 6,500,000 shares of common stock transferred to Consultants Marc Cifelli and Arriva Capital, LLC on the grounds of fraud and failure of consideration.  Both defendants were served on October 4, 2011, their defaults have been entered, and the company is in the process of obtaining default judgments.

Item 1A Risk Factors

We are subject to various risks which may materially harm our business, financial condition and results of operations. You should carefully consider the risks and uncertainties described below and the other information in this filing before deciding to purchase our common stock. If any of these risks or uncertainties actually occurs, our business, financial condition or operating results could be materially harmed. In that case, the trading price of our common stock could decline and you could lose all or part of your investment.

We are a relatively young company with a limited operating history

Since we are a young company, it is difficult to evaluate our business and prospects. At this stage of our business operations, even with our good faith efforts, potential investors have a high probability of losing their investment. Our future operating results will depend on many factors, including the ability to generate sustained and increased demand and acceptance of our products, the level of our competition, and our ability to attract and maintain key management and employees. While management believes their estimates of projected occurrences and events are within the timetable of their business plan, there can be no guarantees or assurances that the results anticipated will occur.

We expect to incur net losses in future quarters.

If we do not achieve profitability, our business may not grow or operate. We may not achieve sufficient revenues or profitability in any future period. We will need to generate revenues from the sales of our products or take steps to reduce operating costs to achieve and maintain profitability. Even if we are able to generate revenues, we may experience price competition that will lower our gross margins and our profitability. If we do achieve profitability, we cannot be certain that we can sustain or increase profitability on a quarterly or annual basis.

We will require additional funds to operate in accordance with our business plan.

We may not be able to obtain additional funds that we may require. We do not presently have adequate cash from operations or financing activities to meet our short or long-term needs.  If unanticipated expenses, problems, and unforeseen business difficulties occur, which result in material delays, we will not be able to operate within our budget. If we do not achieve our internally projected sales revenues and earnings, we will not be able to operate within our budget. If we do not operate within our budget, we will require additional funds to continue our business.

If we are unsuccessful in obtaining those funds, we cannot assure you of our ability to generate positive returns to the Company. Further, we may not be able to obtain the additional funds that we require on terms acceptable to us, if at all. We do not currently have any established third-party bank credit arrangements. If the additional funds that we may require are not available to us, we may be required to curtail significantly or to eliminate some or all of our development, manufacturing, or sales and marketing programs.

We may seek to obtain them primarily through equity or debt financings. Such additional financing, if available on terms and schedules acceptable to us, if available at all, could result in dilution to our current stockholders and to you. We may also attempt to obtain funds through arrangement with corporate partners or others. Those types of arrangements may require us to relinquish certain rights to our intellectual property or resulting products.

We are highly dependent on Jeff Ritchie, our CEO. The loss of Mr. Ritchie, whose knowledge, leadership, and technical expertise upon which we rely, would harm our ability to execute our business plan.

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We are largely dependent on Jeff Ritchie, our CEO, for specific proprietary technical knowledge. Our ability to successfully market and distribute our products may be at risk from an unanticipated accident, injury, illness, incapacitation, or death of Mr. Ritchie. Upon such occurrence, unforeseen expenses, delays, losses and/or difficulties may be encountered.  Our success may also depend on our ability to attract and retain other qualified management and sales and marketing personnel. We compete for such persons with other companies and other organizations, some of which have substantially greater capital resources than we do. We cannot give you any assurance that we will be successful in recruiting or retaining personnel of the requisite caliber or in adequate numbers to enable us to conduct our business.

If  capital  is  not  available  to  us to expand our business operations,  we  will  not  be able to pursue our business plan.

We will require substantial additional capital  to  acquire additional properties and to participate in the development of those properties.  Cash flows from operations, to the extent available, will be used to fund these expenditures.  We intend to seek additional capital from loans from current shareholders and from public and private equity offerings.  Our  ability  to  access  capital  will  depend  on  its  success  in participating  in  properties that are successful in exploring for and producing oil  and gas at profitable prices.  It will also be dependent upon the status of the  capital  markets  at  the  time  such capital is sought.  Should sufficient capital not be available, the development of our business plan could be delayed and, accordingly, the implementation of the USD Energy's business strategy would be adversely affected. In such event it would not be likely that investors would obtain a profitable return on  their investments or a return of their investments.

Nevada Law and Our Charter May Inhibit a Takeover of Our Company That Stockholders May Consider Favorable

Provisions of Nevada law, such as its business combination statute, may have the effect of delaying, deferring or preventing a change in control of our company. As a result, these provisions could limit the price some investors might be willing to pay in the future for shares of our common stock.

Our Officers and Directors Have the Ability to Exercise Significant Influence Over Matters Submitted for Stockholder Approval and Their Interests May Differ From Other Stockholders

Our executive officers and directors, whether acting alone or together, may have significant influence in determining the outcome of any corporate transaction or other matter submitted to our stockholders for approval, including mergers, acquisitions, consolidations and the sale of all or substantially all of our assets, and also the power to prevent or cause a change in control. The interests of these executive officers and directors may differ from the interests of the other stockholders.

 Our Common Stock Has a Limited Market

Our common stock currently trades on the over-the –counter bulletin board, but trading volume has been limited and our stock price volatile.   Our common stock has experienced, and is likely to experience in the future, significant price and volume fluctuations which could adversely affect the market price of our common stock without regard to our operating performance. In addition, we believe that factors such as quarterly fluctuations in our financial results and changes in the overall economy or the condition of the financial markets could cause the price of our common stock to fluctuate substantially. Substantial fluctuations in our stock price could significantly reduce the price of our stock.

The Penny Stock Rules  cover our stock, which may make it difficult for a broker to sell investors shares.  This may make our stock less marketable, and liquid, and result in a lower market price.

 Our common stock is a penny stock, which means that SEC rules require broker dealers who make transactions in the stock to comply with additional suitability assessments and disclosures than they would in stock that were not penny stocks, as follows:

Prior to the transaction, to approve the person's account for transactions in penny stocks by obtaining information from the person regarding his or her financial situation, investment experience and objectives, to reasonably determine based on that information that transactions in penny stocks are suitable for the person, and that the person has sufficient knowledge and experience in financial matters that the person or his or her independent advisor reasonably may be expected to be capable of evaluating the risks of transactions in penny stocks. In addition, the broker or dealer must deliver to the person a written statement setting forth the basis for the determination and advising in highlighted format that it is unlawful for the broker or dealer to effect a transaction in a penny stock unless the broker or dealer has received, prior to the transaction, a written

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agreement from the person. Further, the broker or dealer must receive a manually signed and dated written agreement from the person in order to effectuate any transactions is a penny stock.

Prior to the transaction, the broker or dealer must disclose to the customer the inside bid quotation for the penny stock and, if there is no inside bid quotation or inside offer quotation, he or she must disclose the offer price for the security transacted for a customer on a principal basis unless exempt from doing so under the rules.

Prior to the transaction, the broker or dealer must disclose the aggregate amount of compensation received or to be received by the broker or dealer in connection with the transaction, and the aggregate amount of cash compensation received or to be received by any associated person of the broker dealer, other than a person whose function in solely clerical or ministerial.

The broker or dealer, who has affected sales of penny stock to a customer, unless exempted by the rules, is required to send to the customer a written statement containing the identity and number of shares or units of each such security and the estimated market value of the security. Imposing these reporting and disclosure requirements on a broker or dealer make it unlawful for the broker or dealer to effect transactions in penny stocks on behalf of customers. Brokers or dealers may be discouraged from dealing in penny stocks, due to the additional time, responsibility involved, and, as a result, this may have a deleterious effect on the market for the Company 's stock.

Item 2. Unregistered Sales and Issuances of Equity Securities and Use of Proceeds

The following securities were sold and/or issued by the registrant from inception (September 17, 2007) to September 30, 2011, that were not registered under the Securities Act:

On September 24, 2007, 125 shares of common stock were issued to Kenneth Eade, pursuant to Section 4(2) of the Securities Act of 1933, in exchange for $500 cash.

On November 29, 2007, 1,000,000 shares of common stock were issued to officer and director Kenneth Eade, in exchange for preferred stock of Imperia Entertainment, Inc., pursuant to Section 4(2) of the Securities Act of 1933.  

On November 29, 2007, 1,000,000 shares of common stock were issued to officer and director George Ivakhnik, in exchange for preferred stock of Imperia Entertainment, Inc., pursuant to Section 4(2) of the Securities Act of 1933.  

On December 30, 2007, 1,245 shares of common stock were issued to Kenneth Eade, pursuant to Section 4(2) of the Securities Act of 1933, in exchange for $4,980 cash.  

On March 31, 2008, 2,691 shares of common stock were issued to Kenneth Eade, pursuant to Section 4(2) of the Securities Act of 1933, in exchange for $10,764 in cash.

On June 30, 2008, 9,439 shares of common stock were issued to Kenneth Eade, pursuant to Section 4(2) of the Securities Act of 1933, in exchange for $1,800 in cash and $35,396 in forgiveness of debt.

On or about July 22, 2008, 34,803 shares of common stock were issued to a non-affiliate investor, pursuant to Section 4(2) of the Securities Act of 1933, and Regulation D, Rule 506, in exchange for a $110,000 subscription, $25,000 of which was paid in cash and $85,000 of which was due on February 26, 2009. During the year ended September 30, 2010 the Company received $22,660 on its subscription receivable. As of December 31, 2011 it was determined that the remaining receivable would not be collected; as a result the company credited the stock subscription receivable account and debited bad debt expense for $62,340.

On August 22, 2008, 525 shares of common stock were issued to non-affiliate investors, pursuant to Section 4(2) of the Securities Act of 1933, and other applicable exemptions.

On August 26, 2008, the entire transaction by which shares of Imperia Entertainment, Inc. were acquired was mutually rescinded and the transaction was accounted for as follows:

On August 28, 2008, 1,250 shares of common stock were issued to non-affiliate investors, pursuant to Section 4(2) of the Securities Act of 1933, and other applicable exemptions.

On September 12, 2008, 125 shares of common stock were issued to non-affiliate investors, pursuant to Section 4(2) of the Securities Act of 1933, and other applicable exemptions.

On September 27, 2008, 717 shares of common stock were issued to non-affiliate investors, pursuant to Section 4(2) of the

31

Securities Act of 1933, and other applicable exemptions.

On or about September 30, 2008, 3,573 shares of common stock were issued to affiliate Kenneth Eade, in exchange for cash and forgiveness of debt.

On or about September 30, 2009, 200,000 shares each were issued to Directors Robert Searcy and Patrick Peach, as compensation for two years’ services rendered, pursuant to Section 4(2) of the Securities Act of 1933.

On or about September 30, 2009, 200,000 shares and 500,000 shares were issued to Jeff Ritchie for compensation for two years’ services rendered, and 10 million shares in exchange for business opportunities assigned to the company, pursuant to Section 4(2) of the Securities Act of 1933.

On or about September 30, 2009, 200,000 shares and 500,000 shares were issued to Kenneth Eade for compensation for two years’ services rendered, 500,000 for two years’ legal services rendered, and 10,000,000 shares in exchange for business opportunities assigned to the company, pursuant to Section 4(2) of the Securities Act of 1933.

During the year ended September 30, 2010, the Company issued 626,521 shares of common stock for a total aggregate consideration of $197,051 to 11 investors, in reliance upon Section 4(2) of the Securities Act of 1933.

During the three month period ended March 31, 2011, the Company issued 250,000 common shares for total consideration of $19,975. The shares were issued pursuant to Section 4(2) of the Securities Act of 1933.

On May 10, 2011 the Company issued 300,000 common shares for cash proceeds of $6,975 and a subscription receivable in the amount of $8,025. The shares were issued pursuant to Section 4(2) of the Securities Act of 1933. As of December 31, 2011 it was determined that the remaining receivable would not be collected; as a result the company credited the stock subscription receivable account and debited bad debt expense for $8,025.

On May 9, 2011 the Company issued 6,000 common shares for a lock up agreement in which the stockholder agreed not to transfer any of his shares for an agreed upon time. The Company recorded an expense of $2,280 based on the value of the common stock on the date of issuance. The shares were issued pursuant to Section 4(2) of the Securities Act of 1933.

On or about May 10, 2011, 6,000 shares of common stock were issued to an investor who signed a subscription agreement and paid for the shares in 2009, but the shares were not issued in error.  The shares were issued pursuant to Section 4(2) of the Securities Act of 1933.

On or about June 24, 2011, 550,000 shares of common stock were issued in exchange for consulting services.  The shares were issued pursuant to Section 4(2) of the Securities Act of 1933.

On or about July 1, 2011, a $350,000 convertible debenture was issued to Junior Capital, Inc. The debenture was issued pursuant to Section 4(2) of the Securities Act of 1933.

On or about October 25, 2011, a $20,000 convertible debenture was issued to Junior Capital, Inc. The debenture was issued pursuant to Section 4(2) of the Securities Act of 1933.

On or about October 28, 2011, a $20,000 convertible debenture was issued to Editor Newswire, Inc. The debenture was issued pursuant to Section 4(2) of the Securities Act of 1933.

On or about November 18, 2011, a $25,000 convertible debenture was issued to Editor Newswire, Inc. The debenture was issued pursuant to Section 4(2) of the Securities Act of 1933.

On or about January 11, 2012, a $33,000 convertible debenture was issued to Junior Capital, Inc. The debenture was issued pursuant to Section 4(2) of the Securities Act of 1933.

On or about September 22, 2011, 25,000 common shares were issued to an investor in exchange for $5,000 cash.  The shares were issued pursuant to Section 4(2) of the Securities Act of 1933.

On or about March 15, 2012, a $40,000 convertible debenture was issued to Junior Capital, Inc. The debenture was issued pursuant to Section 4(2) of the Securities Act of 1933.

On March 7, 2012, the Company authorized the issuance of 450,000 common shares in conversion of $22,500 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture. The

32

shares were issued pursuant to Section 4(2) of the Securities Act of 1933.

On March 28, 2012, the Company authorized the issuance of 450,000 common shares in conversion of $22,500 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture. As of June 30, 2012 the shares had not yet been issued and as such have been booked as a stock payable. The shares were issued pursuant to Section 4(2) of the Securities Act of 1933.

On February 7, 2012, the Company authorized the issuance of 50,000 common shares to Rachel Boulds, the Company’s CFO, for compensation of services. The shares were issued at $0.51 based on the value of the common stock on the date of authorization. As of June 30, 2012 the shares had not yet been issued and as such have been booked as a stock payable. The shares were issued pursuant to Section 4(2) of the Securities Act of 1933.

On April 20, 2012, the Company authorized the issuance of 450,000 common shares in conversion of $22,500 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture

On June 13, 2012, the Company authorized the issuance of 250,000 common shares in conversion of $12,500 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture

On June 28, 2012, the Company authorized the issuance of 400,000 common shares in conversion of $20,000 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture

All shares were issued in reliance upon Section 4(2) of the Securities Act of 1933. No underwriters were used in any of the above-referenced sales.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mining Safety Disclosures.

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

			Incorporated by reference
Exhibit	Exhibit Description	Filed herewith	Form	Period ending	Exhibit	Filing date
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X

33

32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
10.1	Convertible Debenture for $350,000 dated November 16, 2011 to Junior Capital, Inc.		10-K	9/30/2011	10.1	1/13/2012
10.2	Convertible Debenture for $20,000 dated October 25, 2011 to Junior Capital Inc.		10-K	9/30/2011	10.2	1/13/2012
10.3	Convertible Debenture for $20,000 dated October 28, 2011 to Editor Newswire Inc.		10-K	9/30/2011	10.3	1/13/2012
10.4	Convertible Debenture for $25,000 dated November 18, 2011 to Editor Newswire Inc.		10-K	9/30/2011	10.4	1/13/2012
10.5	Convertible Debenture for $33,000 dated January 11, 2012 to Junior Capital Inc.		10-Q	3/31/2012	10.5	5/18//2012
10.6	Convertible Debenture for $40,000 dated March 15, 2012 to Junior Capital Inc.		10-Q	3/31/2012	10.6	5/18/2012
10.7	Convertible Debenture for $18,000 dated June 5, 2012 to Junior Capital Inc.		10-Q	6/30/2012	10.7	8/17/2012
10.8	Convertible Debenture for $500,000 dated May 29, 2012 to iBacking Corp.		10-Q	6/30/2012	10.8	8/17/2012
10.9	Convertible Debenture for $100,000 dated April 9, 2012 Neil Linder		10-Q	6/30/2012	10.9	8/17/2012
101.INS*	XBRL Instance Document	X
101.SCH*	XBRL Taxonomy Extension Schema Document	X
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document	X
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document	X
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document	X
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Definition	X

34

SIGNATURES

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

Date: September 12, 2012 INDEPENDENT FILM DEVELOPMENT CORPORATION   BY:      Jeff Ritchie              /s/ Jeff Ritchie                                                          Jeff Ritchie                 Chief Executive Officer and Director    By:        Rachel Boulds              /s/Rachel Boulds                                                   Rachel Boulds                              Chief Financial Officer

35

EX-31

Exhibit 31  

EX-32

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with this Quarterly Report of INDEPENDENT FILM DEVELOPMENT CORPORATION (the “Company”) on Form 10-Q/A for the period ending June 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeff Ritchie, the Chief Executive Officer and Director of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1.   Such Quarterly Report on Form 10-Q/A for the period ending June 30, 2012, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.   The information contained in such Quarterly Report on Form 10-Q/A for the period ending June 30, 2012, fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  September 12, 2012
/s/ Jeff Ritchie      Jeff Ritchie      Chief Executive Officer and Director

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with this Quarterly Report of INDEPENDENT FILM DEVELOPMENT CORPORATION (the “Company”) on Form 10-Q/A for the period ending June 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Rachel Boulds, the Chief Financial Officer (Principal Accounting Officer) of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1.   Such Quarterly Report on Form 10-Q/A for the period ending June 30, 2012 fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.   The information contained in such Quarterly Report on Form 10-Q/A for the period ending June 30, 2012, fairly presents, in all material respects, the financial condition and, results of operations of the Company.

Dated:  September 12, 2012
/s/ Rachel Boulds     Rachel Boulds     Chief Financial Officer

XML

Financial Statement Restatement Statement of Operations September 30, 2011 (Details) (USD $)	12 Months Ended
	Sep. 30, 2011
Reported
Investment income.	$ 0
Total income.	0
Expenses.
Officer compensation.	810,100
Professional fees.	429,657
Director fees.	38,000
Bad debt expense.	0
General and administrative.	30,698
Total operating expenses.	1,308,455
Net loss from operations.	(1,308,455)
Other income and (expense).
Gain on derivative liability.	0
Interest expense.	(97,047)
Total other expense.	(97,047)
Net loss:	(1,405,502)
Loss per share,
Basic and diluted.	$ (0.06)
Weighted average shares outstanding basic and diluted.	23,344,668
Adjustment
Investment income.	0
Total income.	0
Expenses.
Officer compensation.	0
Professional fees.	0
Director fees.	0
Bad debt expense.	70,365
General and administrative.	0
Total operating expenses.	70,365
Net loss from operations.	(70,365)
Other income and (expense).
Gain on derivative liability.	(50,990)
Interest expense.	78,707
Total other expense.	27,717
Net loss:	(42,648)
Loss per share,
Basic and diluted.	$ 0.00
Weighted average shares outstanding basic and diluted.	0
Restated
Investment income.	0
Total income.	0
Expenses.
Officer compensation.	810,100
Professional fees.	429,657
Director fees.	38,000
Bad debt expense.	70,365
General and administrative.	30,698
Total operating expenses.	1,378,820
Net loss from operations.	(1,378,820)
Other income and (expense).
Gain on derivative liability.	(50,990)
Interest expense.	(18,340)
Total other expense.	(69,330)
Net loss:	$ (1,448,150)
Loss per share,
Basic and diluted.	$ (0.06)
Weighted average shares outstanding basic and diluted.	23,344,668

XML

Common Stock Transactions Stock issuance on 2009 and 2010 (Details) (USD $)	3 Months Ended
	Mar. 31, 2011	Sep. 30, 2010	Jun. 30, 2010	Dec. 31, 2009
Common stock shares issued for consideration	0	130,000	406,571	90,000
Value of common stock shares issued for consideration	$ 0	$ 32,500	$ 119,595	$ 45,000
Common stock shares issued for services	0	0	4,000	0
Shares valued (per share) by the Board of Directors	$ 0	$ 0	$ 0.10	$ 0
Authorization of shares for services (no longer obligated to issue shares)	250,000	0	0	0
Value of shares issued for services (written payable off to additonal paid in capital)	$ 95,000	$ 0	$ 0	$ 0

XML

Website Properties Payment (Details) (USD $)	May 29, 2012	Jul. 01, 2011
Convertible debenture for issuance for payments to development of website	$ 500,000	$ 350,000

XML

Going Concern Accumulated Deficit (Details) (USD $)	58 Months Ended
	Jun. 30, 2012
Accumulated deficit.	$ 4,569,919

XML

Related Party Transactions loan and compensation (Details) (USD $)	Jun. 30, 2012	Feb. 07, 2012
Loan from officers	$ 2,960	$ 0
Loan from officer	150	0
Loan from shareholder	$ 290	$ 0
Shares authorized for compensation of service	0	50,000
Shares issued (per share) value based on value of common stock on the date of authorization	$ 0	$ 0.51

XML

RECENT ACCOUNTING PRONOUNCEMENTS

9 Months Ended

Jun. 30, 2012

RECENT ACCOUNTING PRONOUNCEMENTS

RECENT ACCOUNTING PRONOUNCEMENTS

NOTE 3: RECENT ACCOUNTING PRONOUNCEMENTS

In September 2011 Accounting Standards Update No. 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for impairment. This ASU's objective is to simplify the process of performing impairment testing for Goodwill. With this update a company is allowed to asses qualitative factors, first, to determine if it is more likely than not (greater than 50%) that the FV is less than the carrying amount. This would be done, prior to performing the two-step goodwill impairment testing, as prescribed by Topic 350.  Prior to this ASU, all entities were required to test, annually, their good will for impairment by Step 1 - comparing the FV to the carrying amount, and if impaired, then step 2 - calculate and recognize the impairment. Therefore, the fair value measurement is not required, until the "more likely than not" reasonableness test is concluded. Effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011.

In May 2011, FASB issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs .    This ASU clarifies the board's intent of current guidance, modifies and changes certain guidance and principles, and adds additional disclosure requirements concerning the 3 levels of fair value measurements. Specific amendments are applied to FASB ASC 820-10-35, Subsequent Measurement and FASB ASC 820-10-50, Disclosures. This ASU is effective for interim and annual periods beginning after December 15, 2011.

In June 2011, FASB issued Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income . - ASU 2011-05. Current US GAAP allows companies to present the components of comprehensive income as a part of the statement of changes in stockholders' equity. This ASU eliminates that option.  in this Update, an  entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income This ASU is effective interim and annual periods beginning after December 15, 2011.  This ASU should be applied retrospectively. There are no specific transition disclosures

The Company has implemented all new accounting pronouncements that are in effect.  These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

XML

Subsequent Events shares authorization (Details) (USD $)	3 Months Ended
	Jun. 30, 2012
Authorization of common shares for conversion of Junior capital debentures	2,015,385
Junior capital debentures amount	$ 65,500
Shares issued price (per Share)	$ 0.0325

XML

Convertible Debenture summary of the activity of the derivative liability (Details) (Derivative Liability, USD $)	9 Months Ended	12 Months Ended
	Jun. 30, 2012	Sep. 30, 2011
Derivative Liability
Balance Derivative Liability Beginning balance		$ 0
Increase in derivative due to new issuances		65,514
Derivative loss due to new issuances		19,602
Derivative loss due to mark to market adjustment		31,388
Balance,.		116,504
Increase in derivative due to new issuances.	275,183
Derivative loss due to new issuances.	85,169
Decrease in derivative due to settlement of debt.	(99,678)
Derivative loss due to mark to market adjustment.	33,524
Balance Derivative Liability Ending balance	$ 410,702

XML

Convertible Debenture 2012 (Details) (USD $)	Jun. 05, 2012	May 29, 2012	Apr. 09, 2012	Mar. 15, 2012	Jan. 11, 2012
Junior Convertible Debenture	$ 18,000	$ 500,000	$ 100,000	$ 40,000	$ 33,000
Interest percentage of debenture	12	12	12	12	10
Percentage of holder shall not be entitled to convert a number of shares on outstanding shares of common stock	4.99	4.99	4.99	4.99	4.99

XML

Subsequent Events Debentures and shares for services (Details) (USD $)	Jul. 16, 2012	Jul. 02, 2012
Convertible debenture with Junior capital Inc. (default for nonpayment)	$ 0	$ 350,000
Debenture balance and accrued interest	$ 0	$ 250,000
Shares authorized the issuance of common shares for services	5,000	0

XML

Common Stock Transactions from September 2007 to September 2011 (Details) (USD $)	1 Months Ended	12 Months Ended
	Sep. 30, 2007	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2008
Issued common shares for cash	125	275,000	0	34,803	18,492
Value of common shares issued for cash	$ 500	$ 24,975	$ 0	$ 25,000	$ 35,942
Proceeds from subscription receivable.	$ 0	$ 0	$ 22,660	$ 85,000	$ 0

XML

Common Stock Transactions Bad debt expense stock subscription receivable (Details) (USD $)	Dec. 31, 2011
Stock subscription receivable account debited bad debt expense	$ 62,340
Bad debt expense subscription receivable	$ 8,025

XML

SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Jun. 30, 2012

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

Preparation of Financial Statements

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information.  While these statements reflect all normal recurring adjustments which are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto, which are included in the Company’s Annual Report on form 10-K, as amended, previously filed with the Commission.

The unaudited interim financial statements should be read in conjunction with the Company’s annual report on Form 10-K, as amended, which contains the audited financial statements and notes thereto, together with the Management’s Discussion and Analysis, for the fiscal year ended September 30, 2011.  The interim results for the nine months ended June 30, 2012 are not necessarily indicative of the results for the full fiscal year.

Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. There were no cash equivalents as of June 30, 2012 and September 30, 2011.

Stock Based Compensation

We account for equity instruments issued in exchange for the receipt of goods or services from non-employees. Costs are measured at the fair market value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of the date on which there first exists a firm commitment for performance by the provider of goods or services or on the date performance is complete. The Company recognizes the fair value of the equity instruments issued that result in an asset or expense being recorded by the company, in the same period(s) and in the same manner, as if the Company has paid cash for the goods or services.

Use of Estimates

The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Fair Value of Financial Instruments

The carrying amount of cash, notes receivable, accounts payable, accrued liabilities and notes payable, as applicable, approximates fair value due to the short-term nature of these items. The fair value of the related party notes payable cannot be determined because of the Company's affiliation with the parties with whom the agreements exist. The use of different assumptions or methodologies may have a material effect on the estimates of fair values.

ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures.  The carrying amounts reported in the balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

· Level 1:  Observable inputs such as quoted prices in active markets;

· Level 2:  Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;

· Level 3:  Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815.

The following table presents assets and liabilities that are measured and recognized at fair value as of September 30, 2011 and June 30, 2012 on a recurring basis:

September 30, 2011

Description	Level 1		Level 2		Level 3		Total Gains and (Losses)
Derivative		-		-		(116,504)		(50,990)
Total	$	-	$	-	$	(116,504)	$	(50,990)

June 30, 2012

Description	Level 1		Level 2		Level 3		Total Gains and (Losses)
Derivative		-		-		(410,702)		(118,693)
Total	$	-	$	-	$	(410,702)	$	(118,693)

Long Lived Assets

Long lived assets are carried at cost and amortized over their estimated useful lives, generally on a straight-line basis. The Company reviews identifiable amortizable assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value.

 Income Taxes

Accounting Standards Codification Topic No. 740 “Income Taxes” (ASC 740) requires the asset and liability method of accounting be used for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Net deferred tax assets consist of the following components as of:

		June 30, 2012		September 30, 2011
NOL	$	(612,164)	$	(277,605)
Net Loss		(598,664)		(1,448,150)
Bad debt expense		-		70,365
Loss on derivative liability		118,693		50,990
Debt discount amortization		74,900		9,516
Common stock for Director's fees		-		38,000
Amortization expense		31,479		-
Common stock for other services		-		384,560
Common stock for compensation		25,500		570,000
NOL at end of period	$	(960,256)	$	(602,234)
Effective Rate		0.34		0.34
Deferred Tax Asset		(326,487)		(204,790)
Valuation		326,487		204,790
Deferred Tax Asset	$	-	$	-

In June 2006, the FASB interpreted its standard for accounting for uncertainty in income taxes, an interpretation of accounting for income taxes.  This interpretation clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements in accordance the minimum recognition threshold and measurement attributable to a tax position taken on a tax return is required to be met before being recognized in the financial statements.

The FASB’s interpretation had no material impact on the Company’s financial statements for the period ended June 30, 2012. As of June 30, 2012, the Company had a net operating loss carry forward for income tax reporting purposes of approximately $960,000 that may be offset against future taxable income through 2027. Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited. No tax benefit has been reported in the financial statements, because the Company believes there is a 50% or greater chance the carry forwards will expire unused. Accordingly, the potential tax benefits of the loss carry forwards are offset by a valuation allowance of the same amount.

Derivative Liabilities

The Company records the fair value of  its derivative financial instruments in accordance with ASC815, Derivatives and Hedging . The fair value of the derivatives was calculated using a multi-nominal lattice model performed by an independent qualified business valuator. The fair value of the derivative liability is revalued on each balance sheet date with

corresponding gains and losses recorded in the consolidated statement of operations.

Derivative financial instruments should be recorded as liabilities in the balance sheet and measured at fair value. For purposes of the Company’s financial statements fair value was used as the basis for formulating an analysis which has been defined by the Financial Accounting Standards Board (“FASB”) as “the amount for which an asset (or liability) could be exchanged in a current transaction between knowledgeable, unrelated willing parties when neither party is acting under compulsion”. The FASB has provided guidance that its definition of fair value is consistent with the definition of fair market value in IRS Rev. Rule 59-60. In determining the fair value of the derivatives it was assumed that the Company’s business would be conducted as a going concern. These derivative liabilities will need to be marked-to-market each quarter with the change in fair value recorded in the income statement.

Revenue Recognition

The Company recognizes revenue when persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable, and collection is reasonably assured. The Company currently generates revenue from two sources. The first is through its website property IndieBackers.com, from which the Company receives a percentage of the funds raised for film projects featured on its site. IndieBackers.com is administered and maintained by ibacking Corp. who which the Company has a convertible debenture (Note 5). The second is fees earned from services provided in the capacity of producer and/or sales agent. The company’s primary focus will be to act as a sales agent for independent film producers by providing the sales and marketing services for films.

Earnings (Loss) Per Share

Basic earnings (loss) per share are computed by dividing the net income (loss) by the weighted-average number of shares of common stock and common stock equivalents (primarily outstanding options and warrants). Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options and warrants, using the treasury stock method. The calculation of fully diluted earnings (loss) per share assumes the dilutive effect of the exercise of outstanding options and warrants at either the beginning of the respective period presented or the date of issuance, whichever is later. At June 30, 2012 and September 30, 2011, the Company had no outstanding options or warrants.

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Common Stock Transactions for Compensation (Details) (USD $)	Sep. 30, 2009
Common stock shares authorized for compensation to Directors	200,000
Common stock shares valued per share	$ 0.10
Common stock shares authorized for compensation to President	200,000
Common stock shares authorized for compensation to Director	500,000
Common stock shares authorized for compensation to an Officer	200,000
Common stock shares authorized for compensation to Director.	500,000

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Financial Statement Restatement Statement Assets and Liabilities December 31, 2011 (Details) (USD $)	Dec. 31, 2011
As Reported
Cash,	$ 0
Cash,	0
Website property, net of accumulated amortization,	350,000
Total Assets,	350,000
Current Liabilities,
Cash overdraft,	2
Accounts payable,	15,080
Accounts payable, related party,	23,270
Accrued expenses,	23,156
Accrued officer compensation,	260,045
Advances from officers,	7,922
Due to a related party,	790
Derivative liability,	0
Convertible debentures , net of discount,	187,762
Total Liabilities,	518,027
Stockholders' Equity (Deficit),
Common stock , $.0001 par value, 485,000,000 shares authorized, 24,570,991 and 24,120,991 issued and outstanding, respectively,	2,412
Additional paid in capital,	3,249,660
Common stock subscribed,	779,000
Deficit accumulated during development stage,	(4,199,099)
Total Stockholders' Equity (Deficit),	(168,027)
Total Liabilities and Stockholders' Equity (Deficit),	350,000
Adjustment
Cash,	0
Cash,	0
Website property, net of accumulated amortization,	0
Total Assets,	0
Current Liabilities,
Cash overdraft,	0
Accounts payable,	0
Accounts payable, related party,	0
Accrued expenses,	123
Accrued officer compensation,	0
Advances from officers,	0
Due to a related party,	0
Derivative liability,	123,895
Convertible debentures , net of discount,	137,014
Total Liabilities,	261,032
Stockholders' Equity (Deficit),
Common stock , $.0001 par value, 485,000,000 shares authorized, 24,570,991 and 24,120,991 issued and outstanding, respectively,	0
Additional paid in capital,	(365,000)
Common stock subscribed,	0
Deficit accumulated during development stage,	103,968
Total Stockholders' Equity (Deficit),	(261,032)
Total Liabilities and Stockholders' Equity (Deficit),	0
As Restated
Cash,	0
Cash,	0
Website property, net of accumulated amortization,	350,000
Total Assets,	350,000
Current Liabilities,
Cash overdraft,	2
Accounts payable,	15,080
Accounts payable, related party,	23,270
Accrued expenses,	23,279
Accrued officer compensation,	260,045
Advances from officers,	7,922
Due to a related party,	790
Derivative liability,	123,895
Convertible debentures , net of discount,	324,776
Total Liabilities,	779,059
Stockholders' Equity (Deficit),
Common stock , $.0001 par value, 485,000,000 shares authorized, 24,570,991 and 24,120,991 issued and outstanding, respectively,	2,412
Additional paid in capital,	2,884,660
Common stock subscribed,	779,000
Deficit accumulated during development stage,	(4,095,131)
Total Stockholders' Equity (Deficit),	(429,059)
Total Liabilities and Stockholders' Equity (Deficit),	$ 350,000

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Balance Sheets (USD $)	Jun. 30, 2012	Sep. 30, 2011
ASSETS
Cash	$ 0	$ 5,222
Accounts receivable	2,270	0
Other receivable	1,000	0
Total Current Assets	3,270	5,222
Other Assets
Website properties, net of accumulated amortization	818,521	350,000
Total Assets	821,791	355,222
Current Liabilities
Cash overdraft	11	0
Accounts payable	16,590	18,228
Accounts payable, related party	20,270	25,270
Accrued expenses	48,817	8,824
Accrued officer compensation	295,401	218,450
Advances from officers	2,960	7,837
Due to a related party	440	790
Derivative liability	410,702	116,504
Convertible debentures (net of discount of $256,281 and $55,998, respectively) (see Note 5)	749,769	309,002
Total Liabilities	1,544,960	704,905
Stockholders' Equity (Deficit)
Preferred Stock, $.0001 par value, 15,000,0000 shares authorized, none issued and outstanding	0	0
Common stock , $.0001 par value, 485,000,000 shares authorized, 26,120,991 and 24,120,991 issued and outstanding, respectively	2,612	2,412
Additional paid in capital	3,134,638	2,826,660
Common stock subscribed	709,500	779,000
Deficit accumulated during development stage	(4,569,919)	(3,957,755)
Total Stockholders Equity (Deficit)	(723,169)	(349,683)
Total Liabilities and Stockholders Equity (Deficit)	$ 821,791	$ 355,222

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Statements of Cash Flows (USD $)	9 Months Ended		58 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012
Cash flows from operating activities:
Net loss.	$ (612,164)	$ (1,040,139)	$ (4,569,919)
Adjustments to reconcile net loss to total cash used in operations:
Common stock for compensation	25,500	570,000	2,827,500
Common stock for other services	0	384,560	384,560
Common stock for Director's fees	0	38,000	38,000
Amortization expense	31,479	0	31,479
(Gain) loss on derivative liability	118,693	0	169,683
Bad debt expense for stock subscription receivable.	0	0	70,365
Debt discount amortization	74,900	0	84,416
Change in assets and liabilities:
(Increase) in accounts receivable	(2,270)	0	(2,270)
(Increase) in other receivable	(1,000)	0	(1,000)
Increase (decrease) in accounts payable	(1,639)	8,850	16,589
Increase in accounts payable, related party	(5,000)	0	20,270
Increase in accrued expenses	39,993	0	48,817
Increase in accrued compensation	76,952	0	295,402
Net cash used in operating activities	(254,556)	(38,729)	(586,108)
Cash flows from investing activities	0	0	0
Cash flows from financing activities:
Cash overdraft	11	0	11
Proceeds/payments on loan, related party	(350)	500	440
Proceeds from debentures	241,050	0	256,050
Proceeds from subscriptions receivable	0	0	22,660
Contributed capital	13,500	0	13,500
Advances from officers	125	7,426	7,962
Payments to officers	(5,002)	0	(5,002)
Proceeds from the sale of common stock	0	26,950	290,487
Net cash provided by financing activities	249,334	34,873	586,108
Net increase (decrease) in cash	(5,222)	(3,856)	0
Cash at beginning of period	5,222	3,882	0
Cash at end of period	0	26	0
Cash paid for:
Interest	0	0	0
Taxes	0	0	0
Supplemental disclosure of non cash activities
Website property acquired with convertible debenture	500,000	0	850,000
Common stock issued for conversion of debt	100,000	0	100,000
Settlement of derivative liability	99,678	0	99,678
Debt discount on convertible notes payable	275,183	0	275,183
Forgiveness of stock payable	$ 95,000	$ 0	$ 95,000

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Common Stock Transactions March to June 2012 (Details) (USD $)	Jun. 28, 2012	Jun. 13, 2012	Apr. 20, 2012	Mar. 28, 2012	Mar. 07, 2012	Feb. 07, 2012
Number of shares authorized for conversion of convertible debenture	400,000	250,000	450,000	450,000	450,000	0
Value of shares authorized for conversion of convertible debenture	$ 20,000	$ 12,500	$ 22,500	$ 22,500	$ 22,500	$ 0
Shares issued (per share) conversion terms of debenture	$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0
Authorization of shares to CFO for compensation of services	0	0	0	0	0	50,000
Shares issued (per share) based on value of common stock	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0.51

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Significant Accounting Policies Net deferred tax assets components (Details) (USD $)	Jun. 30, 2012	Sep. 30, 2011
NOL	$ (612,164)	$ (277,605)
Net Loss..	(598,664)	(1,448,150)
Bad debt expense	0	70,365
Loss on derivative liability	118,693	50,990
Debt discount amortization.	74,900	9,516
Common stock for Directors fees.	0	38,000
Amortization expense..	31,479	0
Common stock for other services.	0	384,560
Common stock for compensation.	25,500	570,000
NOL at end of period	(960,256)	(602,234)
Effective Rate	0.34	0.34
Deferred Tax Asset	(326,487)	(204,790)
Valuation	326,487	204,790
Deferred Tax Asset.	$ 0	$ 0

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Related Party Transaction Shares issued for services (Details) (USD $)	3 Months Ended
	Mar. 31, 2011
Authorization of shares for services (no longer obligated to issue shares).	275,000
Value of shares issued for services (written payable off to additonal paid in capital).	$ 95,000

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Website Properties Cost (Details) (USD $)	3 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Initial cost of website	$ 500,000	$ 350,000
Amortization term	5	5

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HISTORY OF OPERATIONS

9 Months Ended

Jun. 30, 2012

HISTORY OF OPERATIONS

HISTORY OF OPERATIONS

NOTE 1: HISTORY OF OPERATIONS

Business Activity

Independent Film Development Corporation was incorporated in the State of Nevada on September 14, 2007. Effective April 24, 2008 we commenced operating as a Business Development Company ("BDC") under Section 54(a) of the Investment Company Act of 1940 ("1940 Act").  On September 30, 2009, our board of directors elected to cease operating as a BDC.  

Our current plan of operations is to acquire and develop independent films for production, sales and distribution, with a goal toward significant partnerships with mini-major and the major film studios, such as Lionsgate and Sony, while simultaneously emulating those companies’ recipes for success.

The Company is in the development stage as defined under Statement on Financial Accounting Standards Accounting Standards Codification FASB ASC 915-205 "Development-Stage Entities.”

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Balance Sheets Parentheticals (USD $)	Jun. 30, 2012	Sep. 30, 2011
Discount of convertible debentures	$ 256,281	$ 55,998
Preferred Stock, par or stated value	$ 0.0001	$ 0.0001
Preferred Stock, shares authorized	150,000,000	150,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par or stated value	$ 0.0001	$ 0.0001
Common Stock, shares authorized	485,000,000	485,000,000
Common Stock, shares issued	26,120,991	24,120,991
Common Stock, shares outstanding	26,120,991	24,120,991

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Jun. 30, 2012

SIGNIFICANT ACCOUNTING POLICIES (Policies)

Preparation of Financial Statements

Preparation of Financial Statements

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information.  While these statements reflect all normal recurring adjustments which are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto, which are included in the Company’s Annual Report on form 10-K, as amended, previously filed with the Commission.

The unaudited interim financial statements should be read in conjunction with the Company’s annual report on Form 10-K, as amended, which contains the audited financial statements and notes thereto, together with the Management’s Discussion and Analysis, for the fiscal year ended September 30, 2011.  The interim results for the nine months ended June 30, 2012 are not necessarily indicative of the results for the full fiscal year.

Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented.

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. There were no cash equivalents as of June 30, 2012 and September 30, 2011.

Stock Based Compensation

Stock Based Compensation

We account for equity instruments issued in exchange for the receipt of goods or services from non-employees. Costs are measured at the fair market value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of the date on which there first exists a firm commitment for performance by the provider of goods or services or on the date performance is complete. The Company recognizes the fair value of the equity instruments issued that result in an asset or expense being recorded by the company, in the same period(s) and in the same manner, as if the Company has paid cash for the goods or services.

Use of Estimates

Use of Estimates

The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying amount of cash, notes receivable, accounts payable, accrued liabilities and notes payable, as applicable, approximates fair value due to the short-term nature of these items. The fair value of the related party notes payable cannot be determined because of the Company's affiliation with the parties with whom the agreements exist. The use of different assumptions or methodologies may have a material effect on the estimates of fair values.

ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures.  The carrying amounts reported in the balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

· Level 1:  Observable inputs such as quoted prices in active markets;

· Level 2:  Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;

· Level 3:  Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815.

The following table presents assets and liabilities that are measured and recognized at fair value as of September 30, 2011 and June 30, 2012 on a recurring basis:

September 30, 2011

Description	Level 1		Level 2		Level 3		Total Gains and (Losses)
Derivative		-		-		(116,504)		(50,990)
Total	$	-	$	-	$	(116,504)	$	(50,990)

June 30, 2012

Description	Level 1		Level 2		Level 3		Total Gains and (Losses)
Derivative		-		-		(410,702)		(118,693)
Total	$	-	$	-	$	(410,702)	$	(118,693)

Long Lived Assets

Long Lived Assets

Long lived assets are carried at cost and amortized over their estimated useful lives, generally on a straight-line basis. The Company reviews identifiable amortizable assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value.

Income Taxes

 Income Taxes

Accounting Standards Codification Topic No. 740 “Income Taxes” (ASC 740) requires the asset and liability method of accounting be used for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Net deferred tax assets consist of the following components as of:

		June 30, 2012		September 30, 2011
NOL	$	(612,164)	$	(277,605)
Net Loss		(598,664)		(1,448,150)
Bad debt expense		-		70,365
Loss on derivative liability		118,693		50,990
Debt discount amortization		74,900		9,516
Common stock for Director's fees		-		38,000
Amortization expense		31,479		-
Common stock for other services		-		384,560
Common stock for compensation		25,500		570,000
NOL at end of period	$	(960,256)	$	(602,234)
Effective Rate		0.34		0.34
Deferred Tax Asset		(326,487)		(204,790)
Valuation		326,487		204,790
Deferred Tax Asset	$	-	$	-

In June 2006, the FASB interpreted its standard for accounting for uncertainty in income taxes, an interpretation of accounting for income taxes.  This interpretation clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements in accordance the minimum recognition threshold and measurement attributable to a tax position taken on a tax return is required to be met before being recognized in the financial statements.

The FASB’s interpretation had no material impact on the Company’s financial statements for the period ended June 30, 2012. As of June 30, 2012, the Company had a net operating loss carry forward for income tax reporting purposes of approximately $960,000 that may be offset against future taxable income through 2027. Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited. No tax benefit has been reported in the financial statements, because the Company believes there is a 50% or greater chance the carry forwards will expire unused. Accordingly, the potential tax benefits of the loss carry forwards are offset by a valuation allowance of the same amount.

Derivative Liabilities

Derivative Liabilities

The Company records the fair value of  its derivative financial instruments in accordance with ASC815, Derivatives and Hedging . The fair value of the derivatives was calculated using a multi-nominal lattice model performed by an independent qualified business valuator. The fair value of the derivative liability is revalued on each balance sheet date with

corresponding gains and losses recorded in the consolidated statement of operations.

Derivative financial instruments should be recorded as liabilities in the balance sheet and measured at fair value. For purposes of the Company’s financial statements fair value was used as the basis for formulating an analysis which has been defined by the Financial Accounting Standards Board (“FASB”) as “the amount for which an asset (or liability) could be exchanged in a current transaction between knowledgeable, unrelated willing parties when neither party is acting under compulsion”. The FASB has provided guidance that its definition of fair value is consistent with the definition of fair market value in IRS Rev. Rule 59-60. In determining the fair value of the derivatives it was assumed that the Company’s business would be conducted as a going concern. These derivative liabilities will need to be marked-to-market each quarter with the change in fair value recorded in the income statement.

Revenue Recognition

Revenue Recognition

The Company recognizes revenue when persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable, and collection is reasonably assured. The Company currently generates revenue from two sources. The first is through its website property IndieBackers.com, from which the Company receives a percentage of the funds raised for film projects featured on its site. IndieBackers.com is administered and maintained by ibacking Corp. who which the Company has a convertible debenture (Note 5). The second is fees earned from services provided in the capacity of producer and/or sales agent. The company’s primary focus will be to act as a sales agent for independent film producers by providing the sales and marketing services for films.

Earnings (Loss) Per Share

Earnings (Loss) Per Share

Basic earnings (loss) per share are computed by dividing the net income (loss) by the weighted-average number of shares of common stock and common stock equivalents (primarily outstanding options and warrants). Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options and warrants, using the treasury stock method. The calculation of fully diluted earnings (loss) per share assumes the dilutive effect of the exercise of outstanding options and warrants at either the beginning of the respective period presented or the date of issuance, whichever is later. At June 30, 2012 and September 30, 2011, the Company had no outstanding options or warrants.

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Document and Entity Information	9 Months Ended
	Jun. 30, 2012	Aug. 14, 2012
Document and Entity Information
Entity Registrant Name	Independent Film Development CORP
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Entity Central Index Key	0001425883
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		26,120,991
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3

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SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Jun. 30, 2012

SIGNIFICANT ACCOUNTING POLICIES (Policies)

Assets and Liabilities that are measured and recognized at Fair Value

The following table presents assets and liabilities that are measured and recognized at fair value as of September 30, 2011 and June 30, 2012 on a recurring basis:

September 30, 2011

Description	Level 1		Level 2		Level 3		Total Gains and (Losses)
Derivative		-		-		(116,504)		(50,990)
Total	$	-	$	-	$	(116,504)	$	(50,990)

June 30, 2012

Description	Level 1		Level 2		Level 3		Total Gains and (Losses)
Derivative		-		-		(410,702)		(118,693)
Total	$	-	$	-	$	(410,702)	$	(118,693)

Components of Net deferred tax assets

Net deferred tax assets consist of the following components as of:

		June 30, 2012		September 30, 2011
NOL	$	(612,164)	$	(277,605)
Net Loss		(598,664)		(1,448,150)
Bad debt expense		-		70,365
Loss on derivative liability		118,693		50,990
Debt discount amortization		74,900		9,516
Common stock for Director's fees		-		38,000
Amortization expense		31,479		-
Common stock for other services		-		384,560
Common stock for compensation		25,500		570,000
NOL at end of period	$	(960,256)	$	(602,234)
Effective Rate		0.34		0.34
Deferred Tax Asset		(326,487)		(204,790)
Valuation		326,487		204,790
Deferred Tax Asset	$	-	$	-

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Statements of Operations (USD $)	3 Months Ended		9 Months Ended		58 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012
Revenue	$ 3,770	$ 0	$ 3,770	$ 0	$ 3,770
Cost of revenue	0	0	0	0	0
Gross revenue	3,770	0	3,770	0	3,770
Operating Expenses:
Officer compensation	40,275	213,000	191,251	884,500	1,013,751
Professional fees	90,118	2,050	138,754	91,450	574,011
Director fees	0	0	0	38,000	38,000
Bad debt expense for stock subscription receivable	0	0	0	0	70,365
General and administrative	43,746	23,310	53,244	26,189	2,575,547
Total operating expenses	174,139	238,360	383,249	1,040,139	4,271,674
Loss from operations	(170,369)	(238,360)	(379,479)	(1,040,139)	(4,267,904)
Other income and (expense):
Interest expense	(53,135)	0	(113,992)	0	(132,332)
Gain (loss) on derivative liability	(62,097)	0	(118,693)	0	(169,683)
Total other expense	(115,242)	0	(232,685)	0	(302,015)
Net loss	$ (285,611)	$ (238,360)	$ (612,164)	$ (1,040,139)	$ (4,569,919)
Loss per share
Basic and diluted	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.04)
Weighted average shares
outstanding basic and diluted	25,417,694	23,413,068	24,591,064	23,128,319

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COMMON STOCK TRANSACTIONS

9 Months Ended

Jun. 30, 2012

COMMON STOCK TRANSACTIONS

COMMON STOCK TRANSACTIONS

NOTE 6: COMMON STOCK TRANSACTIONS

During the period from September 14, 2007 (inception) through September 30, 2007 the Company issued 125 common shares for $500 cash.

During the year ended September 30, 2008 the Company issued 18,492 common shares for $35,942 cash.

During the year ended September 30, 2009 the Company issued 34,803 common shares for $25,000 cash and a subscription receivable in the amount of $85,000. During the year ended September 30, 2010 the Company received $22,660 on its subscription receivable. As of December 31, 2011 it was determined that the remaining receivable would not be collected; as a result the company credited the stock subscription receivable account and debited bad debt expense for $62,340.

On September 30, 2009 the Company’s Board of Directors authorized the issuance of 200,000 common shares to Directors Robert Searcy and Patrick Peach, as compensation for two years’ services rendered, pursuant to Section 4(2) of the Securities Act of 1933. Due to the volatility of the market and the limited trading of the Company’s stock, shares were valued at $0.10 by the Board of Directors.

On September 30, 2009 the Company’s Board of Directors authorized the issuance of, 200,000 shares and 500,000 shares to Jeff Ritchie, the Company’s President and Director for compensation for two years’ services rendered, and 10 million shares in exchange for business opportunities assigned to the company, pursuant to Section 4(2) of the Securities Act of 1933. Due to the volatility of the market and the limited trading of the Company’s stock, shares were valued at $0.10 by the Board of Directors.

On September 30, 2009 the Company’s Board of Directors authorized the issuance of, 200,000 shares and 500,000 shares to Kenneth Eade, an Officer and Director for compensation for two years’ services rendered, 500,000 for two years’ legal services rendered, and 10 million shares in exchange for business opportunities assigned to the company, pursuant to Section 4(2) of the Securities Act of 1933. Due to the volatility of the market and the limited trading of the Company’s stock, shares were valued at $0.10 by the Board of Directors.

During the three month period ended December 31, 2009 the Company issued 90,000 common stock shares for total consideration of $45,000.

During the three months ended June 30, 2010 the Company issued 406,571 common shares for total consideration of $119,595.

During the three months ended June 30, 2010, the Company issued 4,000 common shares for services totaling $2,000. Due to the volatility of the market and the limited trading of the Company’s stock, shares were valued at $0.10 by the Board of Directors.

During the three months ended September 30, 2010, the Company issued 130,000 common shares for total consideration of $32,500.

On March 31, 2011 the Company’s Board of Directors authorized the issuance of 100,000 common shares for Director’s fees totaling $38,000, based on the value of the common stock on the date of authorization. As of June 30, 2012 these shares had not yet been issued and therefore have been recorded as a stock payable.

On March 31, 2011 the Company’s Board of Directors authorized the issuance of 750,000 shares each to Jeff Ritchie, the Company’s CEO and Kenneth Eade the Company’s former CFO, for compensation for services rendered in 2010, and an additional 200,000 shares to Kenneth Eade for legal services rendered, for total consideration of $646,000, based on the value of the common stock on the date of authorization. As of June 30, 2012 these shares had not yet been issued and therefore have been recorded as a stock payable.

During the three month period ended March 31, 2011, the Company authorized the issuance of 250,000 common shares for services valued at $95,000, based on the value of the common stock on the date of authorization. These shares were never issued and the Company’s original agreement with the service provider was modified. As such the Company is no longer obligated to issue the 250,000 shares and has written the $95,000 payable off to additional paid in capital, given that at the time the stock was authorized to be issued the service provider was a Director of the Company.

On May 10, 2011 the Company issued 300,000 common shares for cash proceeds of $6,975 and a subscription receivable in the amount of $8,025. As of December 31, 2011 it was determined that the remaining receivable would not be collected; as a result the company credited the stock subscription receivable account and debited bad debt expense for $8,025.

On May 9, 2011 the Company issued 6,000 common shares for a lock up agreement in which the stockholder agreed not to transfer any of his shares for an agreed upon time. The Company recorded an expense of $2,280 based on the value of the common stock on the date of authorization.

On May 10, 2011 the Company issued 6,000 common shares to a stockholder for shares authorized in a prior period. The Company recorded an expense of $2,280 based on the value of the common stock on the date of authorization.

On June 24, 2011, the Company authorized the issuance of 550,000 common shares for services valued at $209,000, based on the value of the common stock on the date of authorization. The shares were issued in July 2011.

During the year ended September 30, 2011, the Company issued 275,000 common shares for total consideration of $24,975.

On March 7, 2012, the Company authorized the issuance of 450,000 common shares in conversion of $22,500 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture.

On March 28, 2012, the Company authorized the issuance of 450,000 common shares in conversion of $22,500 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture

On February 7, 2012, the Company authorized the issuance of 50,000 common shares to Rachel Boulds, the Company’s CFO, for compensation of services. The shares were issued at $0.51 based on the value of the common stock on the date of authorization. As of June 30, 2012 the shares had not yet been issued and as such have been booked as a stock payable.

On April 20, 2012, the Company authorized the issuance of 450,000 common shares in conversion of $22,500 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture

On June 13, 2012, the Company authorized the issuance of 250,000 common shares in conversion of $12,500 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture

On June 28, 2012, the Company authorized the issuance of 400,000 common shares in conversion of $20,000 of the Junior Capital debenture dated July 1, 2011. The shares were issued at $0.05 pursuant to the conversion terms of the debenture

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CONVERTIBLE DEBENTURE

9 Months Ended

Jun. 30, 2012

CONVERTIBLE DEBENTURE

CONVERTIBLE DEBENTURE

NOTE 5: CONVERTIBLE DEBENTURE

On July 1, 2011, the Company entered into an exchange agreement with Junior Capital Inc. (“Junior”), pursuant to which Junior exchanged a $350,000 promissory note for a $350,000 convertible debenture (the “Junior Debenture”). The Junior Debenture accrues interest of 10% and matures on July 1, 2012. Junior has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the common stock on the date of issuance, or $0.05 per share of common stock on the date of conversion as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock. As of June 30, 2012, $100,000 of the $350,000 debenture was converted into 2,000,000 shares of common stock.

On October 25, 2011 the Company issued a convertible debenture/note payable to Junior Capital, Inc. for $20,000; $15,000 of this amount was advanced to the Company prior to signing the debenture and prior to the year ended September 30, 2011. The remaining $5,000 was received in October 2011.  The Debenture accrues interest of 10% beginning on October 25, 2011 and matures on October 25, 2012. Junior has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the common stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock. As of June 30, 2012 $20,000 of the principal face value of the Junior Debenture remains outstanding.

On October 28, 2011, the Company entered into an exchange agreement with Editor Newswire Inc. (“Editor”), pursuant to which Editor exchanged a $20,000 promissory note for a $20,000 convertible debenture (the “Editor Debenture”). The Editor Debenture accrues interest of 10% and matures on October 28, 2012. Editor has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the common stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock. As of June 30, 2012 $20,000 of the principal face value of the Debenture remains outstanding.

On November 18, 2011, the Company entered into an exchange agreement with Editor Newswire Inc. (“Editor”), pursuant to which Editor exchanged a $25,000 promissory note dated November 18, 2011 for a $25,000 convertible debenture (the “Editor Debenture”). The Editor Debenture accrues interest of 10% and matures on November 18, 2012. Editor has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the Common Stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock. As of June 30, $25,000 of the principal face value of the Debenture remains outstanding.

On January 11, 2012, the Company entered into a $33,000 convertible debenture with Junior Capital Inc. (“Junior”). The Junior Debenture accrues interest of 10% and matures on January 11, 2013. Junior has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the Common Stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock. As of June 30, 2012 $33,000 of the principal face value of the Debenture remains outstanding.

On March 15, 2012, the Company entered into a $40,000 convertible debenture with Junior Capital Inc. (“Junior”). The Junior Debenture accrues interest of 12% and matures on March 15, 2013. Junior has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the Common Stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock.  As of June 30, 2012 $40,000 of the principal face value of the Debenture remains outstanding.

On April 9, 2012, the Company entered into a $100,000 convertible debenture with Neil Linder. The debenture accrues interest of 12% and matures on April 9, 2013. Mr. Linder has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to the lesser of fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the Common Stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock.  As of June 30, 2012 $100,000 of the principal face value of the Debenture remains outstanding.

On May 29, 2012, the Company entered into a $500,000 convertible debenture with iBacking Corp. The iBacking Debenture accrues interest of 12% and matures on May 29, 2013. iBacking has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to the lesser of fifty percent (50%) of the lowest closing bid price of common stock during the ten trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the Common Stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock.  As of June 30, 2012 $500,000 of the principal face value of the Debenture remains outstanding.

On June 5, 2012, the Company entered into an $18,000 convertible debenture with Junior Capital Inc. (“Junior”). The Junior Debenture accrues interest of 12% and matures on June 5, 2013. Junior has the right to convert all or a portion of the principal into shares of common stock at a conversion price equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date, or fifty percent (50%) of the closing bid price of the Common Stock on the date of issuance as quoted by Bloomberg, LP. Pursuant to the terms of this debenture, the holder shall not be entitled to convert a number of shares that would exceed 4.99% of the outstanding shares of the Company’s common stock.  As of June 30, 2012 $18,000 of the principal face value of the Debenture remains outstanding.

The following inputs and assumptions were used to value the secured convertible notes issued in the year ended September 30, 2011 and June 30, 2012:

• The convertible promissory notes have a conversion price of the lesser of 50% of the average of the lowest closing bid stock prices (lowest closing bid price for the 5/29/12 note) over the last 5-10 days or 50% of the closing bid price at issuance (or $0.05 for the 7/1/11 note) and contains no dilutive reset feature.
• The stock price would fluctuate with an annual volatility.  The projected volatility curve was based on historical volatilities of the 18 comparable companies in the entertainment industry.
• The Holder would redeem based on availability of alternative financing, increasing 1.0% monthly to a maximum of 10%
• The Holder would automatically convert the note at maturity if the registration was effective and the company was not in default.

A summary of the activity of the derivative liability is shown below:     

Balance at September 30, 2010	$	-
Increase in derivative due to new issuances		65,514
Derivative loss due to new issuances		19,602
Derivative loss due to mark to market adjustment		31,388
Balance at September 30, 2011		116,504
Increase in derivative due to new issuances		275,183
Derivative loss due to new issuances		85,169
Decrease in derivative due to settlement of debt		(99,678)
Derivative loss due to mark to market adjustment		33,524
Balance at June 30, 2012	$	410,702

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Significant Accounting Policies Income Taxes (Details) (USD $)	Jun. 30, 2012
Net operating loss carry forward	$ 960,000

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CONVERTIBLE DEBENTURE (Tables)

9 Months Ended

Jun. 30, 2012

SIGNIFICANT ACCOUNTING POLICIES (Policies)

Summary of the activity of the derivative liability

A summary of the activity of the derivative liability is shown below:     

Balance at September 30, 2010	$	-
Increase in derivative due to new issuances		65,514
Derivative loss due to new issuances		19,602
Derivative loss due to mark to market adjustment		31,388
Balance at September 30, 2011		116,504
Increase in derivative due to new issuances		275,183
Derivative loss due to new issuances		85,169
Decrease in derivative due to settlement of debt		(99,678)
Derivative loss due to mark to market adjustment		33,524
Balance at June 30, 2012	$	410,702

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GOING CONCERN

9 Months Ended

Jun. 30, 2012

GOING CONCERN

GOING CONCERN

NOTE 9: GOING CONCERN

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has generated minimal revenue during the period September 14, 2007 (inception) through June 30, 2012, has an accumulated deficit of $4,569,919 and has funded its operations primarily through the issuance of debt and equity. This matter raises substantial doubt about the Company's ability to continue as a going concern.

These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Accordingly, the Company’s ability to accomplish its business strategy and to ultimately achieve profitable operations is dependent upon its ability to obtain additional debt or equity financing. Management plans to take the following steps that it believes will be sufficient to provide the Company with the ability to continue in existence.

Management intends to raise financing through private equity financing or other means and interests that it deems necessary. The Company, as described above, is in the business of investing in operations of other companies. There can be no assurance that the Company will be successful in its endeavor.    

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RELATED PARTY TRANSACTION

9 Months Ended

Jun. 30, 2012

RELATED PARTY TRANSACTION

RELATED PARTY TRANSACTION

NOTE 7: RELATED PARTY TRANSACTION

During the three month period ended March 31, 2011, the Company authorized the issuance of 250,000 common shares for services valued at $95,000, based on the value of the common stock on the date of authorization. These shares were never issued and the Company’s original agreement with the service provider was modified. As such the Company is no longer obligated to issue the 250,000 shares and has written the $95,000 payable off to additional paid in capital, given that at the time the stock was authorized to be issued the service provider was a Director of the Company.

As of June 30, 2012, the Company owed its officers a total of $2,960. The money was loaned to the company to cover certain operating expenses. In addition, a relative of one of the Company’s officers is owed $150 and a shareholder is owed $290, for funds advanced to cover certain expenses. Amounts are due on demand and have no stated rate of interest.

On February 7, 2012, the Company authorized the issuance of 50,000 common shares to Rachel Boulds, the Company’s CFO for compensation of services. The shares were issued at $0.51 based on the value of the common stock on the date of authorization. As of June 30, 2012 the shares had not yet been issued and as such have been booked as a stock payable.

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FINANICIAL STATEMENT RESTATEMENT

9 Months Ended

Jun. 30, 2012

FINANICIAL STATEMENT RESTATEMENT

FINANICIAL STATEMENT RESTATEMENT

NOTE 8: FINANICIAL STATEMENT RESTATEMENT

As a result of the Company engaging a third party to perform a valuation analysis of its derivative instruments in the second quarter it became necessary to restate the financial statements for the year ended September 30, 2011. The results of that restatement are as follows.

1)Increase of $2 due to rounding/balancing of financials.

2)All changes are a result of the independent valuation analysis of the Company’s derivative instruments.

3)It was subsequently determined that this receivable was deemed uncollectable as of September 30, 2011.

4)Change due to restatement of the Year Ended September 30, 2011.

		September 30, 2011
		As Reported		Adjustment			As Restated
Cash	$	5,222	$	-		$	5,222
Website property, net of accumulated amortization		350,000		-			350,000
Total Assets	$	355,222	$	-		$	355,222
Current Liabilities
Accounts payable	$	20,228	$	-		$	20,228
Accounts payable, related party		23,270		-			23,270
Accrued expenses		8,822		2	1		8,824
Accrued officer compensation		218,450		-			218,450
Advances from officers		7,837		-			7,837
Due to a related party		790		-			790
Derivative liability		-		116,504	2		116,504
Convertible debentures , net of discount		88,225		220,777	2		309,002
Total Liabilities		367,622		337,283			704,905
Stockholders' Equity (Deficit)
Common stock , $.0001 par value, 485,000,000 shares authorized, 24,570,991 and 24,120,991  issued and outstanding, respectively		2,412		-			2,412
Additional paid in capital		3,191,660		(365,000)	2		2,826,660
Common stock subscribed		779,000		-			779,000
Stock subscription receivable		(70,365)		70,365	3		-
Deficit accumulated during development stage		(3,915,107)		(42,648)	4		(3,957,755)
Total Stockholders' Equity (Deficit)		(12,400)		(337,283)			(349,683)
Total Liabilities and Stockholders' Equity (Deficit)	$	355,222	$	-		$	355,222

		For the Year Ended September 30, 2011
		As Reported		Adjustment			As Restated
Investment income	$	-	$	-		$	-
Total income		-		-			-
Expenses
Officer compensation		810,100		-			810,100
Professional fees		429,657		-			429,657
Director fees		38,000		-			38,000
Bad debt expense		-		70,365	3		70,365
General and administrative		30,698		-			30,698
Total operating expenses		1,308,455		70,365			1,378,820
Net loss from operations	$	(1,308,455)	$	(70,365)		$	(1,378,820)
Other income and (expense)
Gain on derivative liability		-		(50,990)	2		(50,990)
Interest expense		(97,047)		78,707	2		(18,340)
Total other expense		(97,047)		27,717			(69,330)
Net loss	$	(1,405,502)	$	(42,648)	4	$	(1,448,150)
Loss per share
Basic and diluted	$	(0.06)	$	-		$	(0.06)
Weighted average shares outstanding basic and  diluted		23,344,668		-			23,344,668

		December 31, 2011
		As Reported		Adjustment			As Restated
Cash	$	-	$	-		$	-
Website property, net of accumulated amortization		350,000		-			350,000
Total Assets	$	350,000	$	-		$	350,000
Current Liabilities
Cash overdraft	$	2	$	-			2
Accounts payable		15,080		-			15,080
Accounts payable, related party		23,270		-			23,270
Accrued expenses		23,156		123			23,279
Accrued officer compensation		260,045		-			260,045
Advances from officers		7,922		-			7,922
Due to a related party		790		-			790
Derivative liability		-		123,895	2		123,895
Convertible debentures , net of discount		187,762		137,014	2		324,776
Total Liabilities		518,027		261,032			779,059
Stockholders' Equity (Deficit)
Common stock , $.0001 par value, 485,000,000 shares authorized, 24,570,991 and 24,120,991  issued and outstanding, respectively		2,412		-			2,412
Additional paid in capital		3,249,660		(365,000)			2,884,660
Common stock subscribed		779,000		-			779,000
Deficit accumulated during development stage		(4,199,099)		103,968			(4,095,131)
Total Stockholders' Equity (Deficit)		(168,027)		(261,032)			(429,059)
Total Liabilities and Stockholders' Equity (Deficit)	$	350,000	$	-		$	350,000

		For the Three Months Ended December 31, 2011
		As Reported		Adjustment			As Restated
Investment income	$	-	$	-		$
Total income		-		-
Expenses
Officer compensation		75,000		-			75,000
Professional fees		26,825		-			26,825
Bad debt expense		70,365		(70,365)	3		-
General and administrative		2,431		-			2,431
Total operating expenses		174,621		70,365			104,256
Net loss from operations	$	(174,621)	$	70,365		$	(104,256)
Other income and (expense)
Loss on derivative liability		-		(7,391)	2		(7,391)
Interest expense		(109,371)		83,642	2		(25,729)
Total other expense		(109,371)		76,251			(33,120)
Net loss	$	(283,992)	$	146,616			(137,376)

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SUBSEQUENT EVENTS

9 Months Ended

Jun. 30, 2012

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 10: SUBSEQUENT EVENTS

The Company has performed an evaluation of subsequent events in accordance with ASC Topic 855.  The Company is not aware of any subsequent events which would require recognition or disclosure in the financial statements except as follows.

Subsequent to the quarter ended June 30, 2012, the Company authorized the issuance of 2,015,385 common shares in conversion of $65,500 of the Junior Capital debentures. The shares were issued at $0.0325, which was equal to fifty percent (50%) of the average of the closing bid price of common stock during the five trading days immediately preceding the conversion date.

On July 1, 2012, the Company’s $350,000 convertible debenture with Junior Capital Inc. was in default for nonpayment. As of the date of default the Company owed $250,000 plus accrued interest on the debenture.

On July 16, 2012, the Company entered into a Sales Agent Agreement with 3KG, LLC. The Company is to serve as Executive Producer and Sales Agent for the motion picture being made. The agreement has a term of fifteen years and includes a Producer fee, funds to cover expenses and commissions from gross proceeds of the film.

On July 16, 2012, the Company authorized the issuance of 5,000 common shares for services.

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Common Stock Transactions Authorized shares (Details) (USD $)	Jun. 24, 2011	May 10, 2011	May 09, 2011	Mar. 31, 2011
Common stock shares authorized for Directors fees	0	0	0	38,000
Common stock shares authorized for CEO compensation	0	0	0	750,000
Common stock shares authorized for former CFO compensation	0	0	0	750,000
Additional shares authorized for legal services rendered	0	0	0	200,000
Total considersation for legal services	$ 0	$ 0	$ 0	$ 646,000
Issuance of shares for cash proceeds	0	300,000	0	0
Value of issuance of shares.	0	6,975	2,280	0
Subscription receivable,	0	8,025	0	0
Issued shares for lock up agreement	0	6,000	6,000	0
Value of shares lock up agreement	0	2,280	0	0
Shares authorized for services	550,000	0	0	0
Value of Shares authorized for services	$ 209,000	$ 0	$ 0	$ 0

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Significant Accounting Policies Fair Value of Financial Instruments (Details) (USD $)	Jun. 30, 2012	Sep. 30, 2011
Level 1
Derivative assets and liabilities measured and recognized at fair value September 30, 2011		$ 0
Derivative assets and liabilities measured and recognized at fair value September 30, 2011		0
Total Derivative assets and liabilities measured and recognized at fair value September 30, 2011		0
Derivative assets and liabilities measured and recognized at fair value June 30, 2012	0
Total Derivative assets and liabilities measured and recognized at fair value June 30, 2012	0
Level 2
Derivative assets and liabilities measured and recognized at fair value September 30, 2011		0
Derivative assets and liabilities measured and recognized at fair value September 30, 2011		0
Total Derivative assets and liabilities measured and recognized at fair value September 30, 2011		0
Derivative assets and liabilities measured and recognized at fair value June 30, 2012	0
Total Derivative assets and liabilities measured and recognized at fair value June 30, 2012	0
Level 3
Derivative assets and liabilities measured and recognized at fair value September 30, 2011		(116,504)
Derivative assets and liabilities measured and recognized at fair value September 30, 2011		(116,504)
Total Derivative assets and liabilities measured and recognized at fair value September 30, 2011		(116,504)
Derivative assets and liabilities measured and recognized at fair value June 30, 2012	(410,702)
Total Derivative assets and liabilities measured and recognized at fair value June 30, 2012	(410,702)
Total Gains and (Losses)
Derivative assets and liabilities measured and recognized at fair value September 30, 2011		(50,990)
Derivative assets and liabilities measured and recognized at fair value September 30, 2011		(50,990)
Total Derivative assets and liabilities measured and recognized at fair value September 30, 2011		(50,990)
Derivative assets and liabilities measured and recognized at fair value June 30, 2012	(118,693)
Total Derivative assets and liabilities measured and recognized at fair value June 30, 2012	$ (118,693)

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Convertible Debenture 2011 (Details) (USD $)	Nov. 18, 2011	Oct. 28, 2011	Oct. 25, 2011	Jul. 01, 2011
Exchange of promissory note for convertible debenture	$ 25,000	$ 20,000	$ 0	$ 350,000
Debenture accrues interest percentage	10	10	10	10
Convertible debenture Junior Capital, Inc. (out of which $15000 received in advance and $5000 received in October 2011)	$ 0	$ 0	$ 20,000	$ 0
The percentage of holder shall not be entitled to convert a number of shares on outstanding shares of common stock	4.99	4.99	4.99	4.99

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Financial Statement Restatement Statement of Operations December 31, 2011 (Details) (USD $)	3 Months Ended
	Dec. 31, 2011
As Reported
Investment income,	$ 0
Total income,	0
Expenses,
Officer compensation,	75,000
Professional fees,	26,825
Bad debt expense,	70,365
General and administrative,	2,431
Total operating expenses,	174,621
Net loss from operations,	(174,621)
Other income and (expense),
Loss on derivative liability,	0
Interest expense,	(109,371)
Total other expense,	(109,371)
Net loss,	(283,992)
Adjustment
Investment income,	0
Total income,	0
Expenses,
Officer compensation,	0
Professional fees,	0
Bad debt expense,	(70,365)
General and administrative,	0
Total operating expenses,	70,365
Net loss from operations,	70,365
Other income and (expense),
Loss on derivative liability,	(7,391)
Interest expense,	83,642
Total other expense,	76,251
Net loss,	146,616
As Restated
Investment income,	0
Total income,	0
Expenses,
Officer compensation,	75,000
Professional fees,	26,825
Bad debt expense,	0
General and administrative,	2,431
Total operating expenses,	104,256
Net loss from operations,	(104,256)
Other income and (expense),
Loss on derivative liability,	(7,391)
Interest expense,	(25,729)
Total other expense,	(33,120)
Net loss,	$ (137,376)

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Statement of Stockholders Equity (Deficit) (USD $)	Number of shares outstanding	Common Stock At par Value USD ($)	Paid in Capital USD ($)	Deficit accumulated during Development Stage USD ($)	Common Stock subscribed USD ($)	Stock subscription receivable USD ($)	Total USD ($)
Balance at Sep. 13, 2007		0	0	0	0	0	0
Stock issued for cash	125	0	500	0	0	0	500
Balance at Sep. 30, 2007	125	0	500	0	0	0	500
Stock issued for cash.	18,492	2	35,940	0	0	0	35,942
Net loss for the year ended September 30, 2008		$ 0	$ 0	$ (33,413)	$ 0	$ 0	$ (33,413)
Balance at Sep. 30, 2008	18,617	2	36,440	(33,413)	0	0	3,029
Stock issued for cash,	34,803	3	109,997	0	0	(85,000)	25,000
Stock issued for compensation	22,300,000	2,230	2,227,770	0	0	0	2,230,000
Net loss for year ended September 30, 2009		0	0	(2,258,311)	0	0	(2,258,311)
Balance at Sep. 30, 2009	22,353,420	2,235	2,374,207	(2,291,724)	0	(85,000)	(282)
Stock issued for cash:	626,571	63	197,032	0	0	0	197,095
Stock issued for compensation.	4,000	0	2,000	0	0	0	2,000
Stock subscription receivable		0	0	0	0	22,660	22,660
Net loss for year ended September 30, 2010		0	0	(217,881)	0	0	(217,881)
Balance at Sep. 30, 2010	22,983,991	2,298	2,573,239	(2,509,605)	0	(62,340)	3,592
Stock for other services	556,000	56	211,224	0	171,000	0	382,280
Stock for officer compensation		0	0	0	570,000	0	570,000
Stock for Director fees		0	0	0	38,000	0	38,000
Stock issued for cash;	575,000	57	39,918	0	0	(8,025)	31,950
Common stock issued for lock up agreement	6,000	1	2,279	0	0	0	2,280
Write off of stock subscription receivable		0	0	0	0	70,365	70,365
Net loss for the year ended September 30, 2011		0	0	(1,448,150)	0	0	(1,448,150)
Balance at Sep. 30, 2011	24,120,991	2,412	2,826,660	(3,957,755)	779,000	0	(349,683)
Write off of stock payable (unaudited)		0	95,000	0	(95,000)	0	0
Stock for officer compensation (unaudited)		0	0	0	25,500	0	25,500
Settlement of derivative liability (unaudited)		0	61,188	0	0	0	61,188
Stock issued in conversion of note payable (unaudited)	2,000,000	200	138,290	0	0	0	138,490
Contributed capital (unaudited)		0	13,500	0	0	0	13,500
Net loss for the period ended June 30, 2012 (unaudited)		$ 0	$ 0	$ (612,164)	$ 0	$ 0	$ (612,164)
Balance at Jun. 30, 2012	26,120,991	2,612	3,134,638	(4,569,919)	709,500	0	(723,169)

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WEBSITE PROPERTIES

9 Months Ended

Jun. 30, 2012

WEBSITE PROPERTIES

WEBSITE PROPERTIES

NOTE 4: WEBSITE PROPERTIES

During the fourth quarter of fiscal year 2011 the Company hired a third party to develop HollywoodIndy.com. The website promises to be an Internet based entertainment web property specializing in social networking and resourcing, production, development and distribution for independent film and television industry. The revenue model is to sell and market services to the community of entertainment professionals and non professionals in the form of classifieds, education forums and advertising, as well as providing a stable for unique projects to fit in the overall company umbrella. The model provides a unique revenue platform that includes anyone from established professionals looking for the next generation talent to young up-and-coming professionals breaking into the industry. The initial cost of the website of $350,000 has been capitalized due to the future economic benefits it will bring to the company. The cost will be amortized over five years beginning March 6, 2012, the date the website was launched to the public. On July 1, 2011 the company executed a convertible debenture for $350,000 (Note 5) as payment for the development of the website.

During the third quarter of fiscal year 2012 the Company hired a third party to develop Indiebackers.com (IndieBacker). The website is a donation based crowdfunding platform for Indie producers. This platform allows the producer to embark on a project while at the same time obtaining the much needed development money for such a project. IndieBacker is a crowdfunding solution for early stage projects allowing filmmakers to list their new projects on the site for budgets anywhere from $1,000 to $500,000. IndieBacker uses a donation base platform allowing producers to generate a following while raising capital. The revenue model is gross margin of approximately 6% of funds raised for all completed projects. Additional plans call for the brand to also incorporate an equity based platform once crowdfunding laws are fully passed in early 2013.  The initial cost of the website of $500,000 has been capitalized due to the future economic benefits it will bring to the company. The cost will be amortized over five years beginning May 29, 2012, the date the website was launched to the public. On May 29, 2012 the company executed a convertible debenture for $500,000 (Note 5) as payment for the development of the website.

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Convertible Debentures Outstanding balance (Details) (USD $)	Jun. 30, 2012
Out of $350000 debenture, value converted into common stock	$ 100,000
Number of shares debenture converted into common stock	2,000,000
Outstanding principal face value of Junior Debenture	20,000
Outstanding principal face value of Newswire Inc	20,000
Outstanding principal face value of Newswire Inc November 18, 2011	20,000
Junior Convertible Debenture January 11, 2012	33,000
Junior Convertible Debenture March 15, 2012	40,000
Convertible Debenture April 9, 2012	100,000
Convertible Debenture May 29, 2012	500,000
Convertible Debenture June 5, 2012	$ 18,000

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Financial Statement Restatement Assets and Liabilities September 30, 2011 (Details) (USD $)	Sep. 30, 2011
As Reported
Cash.	$ 5,222
Cash.	5,222
Website property, net of accumulated amortization.	350,000
Total Assets.	355,222
Current Liabilities.
Accounts payable.	20,228
Accounts payable, related party.	23,270
Accrued expenses.	8,822
Accrued officer compensation.	218,450
Advances from officers.	7,837
Due to a related party.	790
Derivative liability.	0
Convertible debentures , net of discount.	88,225
Total Liabilities.	367,622
Stockholders Equity (Deficit).
Common stock , $.0001 par value, 485,000,000 shares authorized, 24,570,991 and 24,120,991 issued and outstanding, respectively.	2,412
Additional paid in capital.	3,191,660
Common stock subscribed.	779,000
Stock subscription receivable.	(70,365)
Deficit accumulated during development stage.	(3,915,107)
Total Stockholders Equity (Deficit).	(12,400)
Total Liabilities and Stockholders Equity (Deficit).	355,222
Adjustment
Cash.	0
Cash.	0
Website property, net of accumulated amortization.	0
Total Assets.	0
Current Liabilities.
Accounts payable.	0
Accounts payable, related party.	0
Accrued expenses.	2
Accrued officer compensation.	0
Advances from officers.	0
Due to a related party.	0
Derivative liability.	116,504
Convertible debentures , net of discount.	220,777
Total Liabilities.	337,283
Stockholders Equity (Deficit).
Common stock , $.0001 par value, 485,000,000 shares authorized, 24,570,991 and 24,120,991 issued and outstanding, respectively.	0
Additional paid in capital.	(365,000)
Common stock subscribed.	0
Stock subscription receivable.	70,365
Deficit accumulated during development stage.	(42,648)
Total Stockholders Equity (Deficit).	(337,283)
Total Liabilities and Stockholders Equity (Deficit).	0
As Restated
Cash.	5,222
Cash.	5,222
Website property, net of accumulated amortization.	350,000
Total Assets.	355,222
Current Liabilities.
Accounts payable.	20,228
Accounts payable, related party.	23,270
Accrued expenses.	8,824
Accrued officer compensation.	218,450
Advances from officers.	7,837
Due to a related party.	790
Derivative liability.	116,504
Convertible debentures , net of discount.	309,002
Total Liabilities.	704,905
Stockholders Equity (Deficit).
Common stock , $.0001 par value, 485,000,000 shares authorized, 24,570,991 and 24,120,991 issued and outstanding, respectively.	2,412
Additional paid in capital.	2,826,660
Common stock subscribed.	779,000
Stock subscription receivable.	0
Deficit accumulated during development stage.	(3,957,755)
Total Stockholders Equity (Deficit).	(349,683)
Total Liabilities and Stockholders Equity (Deficit).	$ 355,222

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FINANICIAL STATEMENT RESTATEMENT (Tables)

9 Months Ended

Jun. 30, 2012

FINANICIAL STATEMENT RESTATEMENT (Tables)

Financial Statement Restatement Assets and Liabilities September 30, 2011

		September 30, 2011
		As Reported		Adjustment			As Restated
Cash	$	5,222	$	-		$	5,222
Website property, net of accumulated amortization		350,000		-			350,000
Total Assets	$	355,222	$	-		$	355,222
Current Liabilities
Accounts payable	$	20,228	$	-		$	20,228
Accounts payable, related party		23,270		-			23,270
Accrued expenses		8,822		2	1		8,824
Accrued officer compensation		218,450		-			218,450
Advances from officers		7,837		-			7,837
Due to a related party		790		-			790
Derivative liability		-		116,504	2		116,504
Convertible debentures , net of discount		88,225		220,777	2		309,002
Total Liabilities		367,622		337,283			704,905
Stockholders' Equity (Deficit)
Common stock , $.0001 par value, 485,000,000 shares authorized, 24,570,991 and 24,120,991  issued and outstanding, respectively		2,412		-			2,412
Additional paid in capital		3,191,660		(365,000)	2		2,826,660
Common stock subscribed		779,000		-			779,000
Stock subscription receivable		(70,365)		70,365	3		-
Deficit accumulated during development stage		(3,915,107)		(42,648)	4		(3,957,755)
Total Stockholders' Equity (Deficit)		(12,400)		(337,283)			(349,683)
Total Liabilities and Stockholders' Equity (Deficit)	$	355,222	$	-		$	355,222

Financial Statement Restatement Statement of Operations September 30, 2011

		For the Year Ended September 30, 2011
		As Reported		Adjustment			As Restated
Investment income	$	-	$	-		$	-
Total income		-		-			-
Expenses
Officer compensation		810,100		-			810,100
Professional fees		429,657		-			429,657
Director fees		38,000		-			38,000
Bad debt expense		-		70,365	3		70,365
General and administrative		30,698		-			30,698
Total operating expenses		1,308,455		70,365			1,378,820
Net loss from operations	$	(1,308,455)	$	(70,365)		$	(1,378,820)
Other income and (expense)
Gain on derivative liability		-		(50,990)	2		(50,990)
Interest expense		(97,047)		78,707	2		(18,340)
Total other expense		(97,047)		27,717			(69,330)
Net loss	$	(1,405,502)	$	(42,648)	4	$	(1,448,150)
Loss per share
Basic and diluted	$	(0.06)	$	-		$	(0.06)
Weighted average shares outstanding basic and  diluted		23,344,668		-			23,344,668

Financial Statement Restatement Assets and Liabilities December 31, 2011

		December 31, 2011
		As Reported		Adjustment			As Restated
Cash	$	-	$	-		$	-
Website property, net of accumulated amortization		350,000		-			350,000
Total Assets	$	350,000	$	-		$	350,000
Current Liabilities
Cash overdraft	$	2	$	-			2
Accounts payable		15,080		-			15,080
Accounts payable, related party		23,270		-			23,270
Accrued expenses		23,156		123			23,279
Accrued officer compensation		260,045		-			260,045
Advances from officers		7,922		-			7,922
Due to a related party		790		-			790
Derivative liability		-		123,895	2		123,895
Convertible debentures , net of discount		187,762		137,014	2		324,776
Total Liabilities		518,027		261,032			779,059
Stockholders' Equity (Deficit)
Common stock , $.0001 par value, 485,000,000 shares authorized, 24,570,991 and 24,120,991  issued and outstanding, respectively		2,412		-			2,412
Additional paid in capital		3,249,660		(365,000)			2,884,660
Common stock subscribed		779,000		-			779,000
Deficit accumulated during development stage		(4,199,099)		103,968			(4,095,131)
Total Stockholders' Equity (Deficit)		(168,027)		(261,032)			(429,059)
Total Liabilities and Stockholders' Equity (Deficit)	$	350,000	$	-		$	350,000

Financial Statement Restatement Statement of Operations December 31, 2011

		For the Three Months Ended December 31, 2011
		As Reported		Adjustment			As Restated
Investment income	$	-	$	-		$
Total income		-		-
Expenses
Officer compensation		75,000		-			75,000
Professional fees		26,825		-			26,825
Bad debt expense		70,365		(70,365)	3		-
General and administrative		2,431		-			2,431
Total operating expenses		174,621		70,365			104,256
Net loss from operations	$	(174,621)	$	70,365		$	(104,256)
Other income and (expense)
Loss on derivative liability		-		(7,391)	2		(7,391)
Interest expense		(109,371)		83,642	2		(25,729)
Total other expense		(109,371)		76,251			(33,120)
Net loss	$	(283,992)	$	146,616			(137,376)