10-Q

United States

Securities and Exchange Commission

Washington, D.C. 20549

Form 10-Q

(Mark One)
x	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended September 30, 2012
o	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commissions file number: 000-54530

FOREX INTERNATIONAL TRADING CORP.

(Exact name of registrant as specified in its charter)

Nevada	27-0603137
State or other jurisdiction of	I.R.S. Employer Identification Number
incorporation or organization

2506 Campbell Place, Kensington MD 20895-3131

 (Address of principal executive office)

Issuer's telephone number: 888-426-4780

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x   No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x   No

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

Large accelerated filer  Accelerated filer      

Non accelerated filer   (Do not check if a smaller reporting company)  Smaller reporting company x

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

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:

Common Stock, $0.00001 par value	34,248,585
(Class)	(Outstanding at November 20, 2012)

Explanatory Note:  Forex International Trading Corp. (“Forex”)  is filing this Form 10-Q in reliance upon Order Under Section 17A and Section 36 of the Securities Exchange Act of 1934 Granting Exemptions From Specified Provisions of the Exchange Act and Certain Rules Thereunder (Release No. 68224/November 14, 2012)(the “Order”).  Due to the location of certain professional advisors in the area impacted by Hurricane Sandy and their unavailability during such storm and the related aftermath, Forex has been unable to file this report by the filing deadline of November 14, 2012.  As discussed in the Order, the Securities and Exchange Commission has provided companies that have been impacted by this event and have a report due during the period from October 29, 2012 through November 20, 2012 with the ability to file such report on or before November 21, 2012.

1

FOREX INTERNATIONAL TRADING CORP.

TABLE OF CONTENTS

PART I.	Financial Information
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of September 30, 2012 (unaudited) and December 31, 2011 (audited)	3
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended (unaudited) September  30, 2012  and  September 30, 2011 (restated)	4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended (unaudited) September  30, 2012  and  September  30, 2011 (restated)	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	21
Item 4.	Controls and Procedures	21
PART II.	Other Information	22
Signatures		24

2

PART I.	Financial Information
Item 1.	Financial Statements

FOREX INTERNATIONAL TRADING CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

	September			December 31,
	2012			2011
	(Unaudited)			(Audited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,920		$	411,656
Note and short term receivables, net of allowance for credit losses of
$0 and $100,000 as of September 30, 2012 and December 31, 2011		631,198			1,319,900
Accounts receivable and prepaid expenses		23,405			10,655
Total current assets		656,523			1,742,211
Property and equipment, net		9,798			13,944
		-
Other assets		31,328			17,560
Total assets	$	697,649		$	1,773,715
LIABILITIES AND STOCKHOLDERS'  EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	110,829		$	501,016
Notes payable and accrued interest		573,666			1,142,492
Total current liabilities		684,495			1,643,508
Total liabilities		684,495			1,643,508
Contingencies
Stockholders' equity:
Series B Preferred stock, $0.00001 par value, 20,000,000 shares authorized;
45,000 shares issued as of September 30, 2012 and December 31, 2011		-			-
Series C Preferred stock, $0.00001 par value, 10,000 shares authorized;
10,000 shares and 0 shares issued as of September 30, 2012 and December 31, 2011, respectively		-			-
Common stock - $0.00001 par value, 400,000,000 shares authorized; 34,248,585
issued and outstanding as of September 30, 2012 and December 31, 2011		343			343
Treasury stock, at cost; 38,000 shares as of September 30, 2012 and December 31, 2011		(11,059	)		(11,059	)
Additional paid-in capital		1,594,673			1,372,333
Accumulated deficit		(1,570,803	)		(1,231,410	)
Total stockholders' equity		13,154			130,207
Total liabilities and stockholders' equity	$	697,649		$	1,773,715

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

3

FOREX INTERNATIONAL TRADING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2012

	Three months ended September 30,						Nine months ended Sepetmber 30,
	2012			2011			2012			2011
				(Restated)						(Restated)
Revenues:
Income from foreign currency  operations	$	-		$	-		$	7,106		$	10,616
Total revenues		-			-			7,106			10,616
General and administrative expenses		49,733			180,379			287,703			1,062,834
Loss from operations		(49,733	)		(180,379	)		(280,597	)		(1,052,218	)
Other income (expenses):
Interest expense, net of interest income of $4,065 and $21,406
in 2012 and 2011, respectively		(12,036	)		(26,216	)		(47,456	)		(72,034	)
Other income  (expenses)		(111,340	)		-			(11,340	)		-
Total other income (expenses)		(123,376	)		(26,216	)		(58,796	)		(72,034	)
Loss before income taxes		(173,109	)		(206,595	)		(339,393	)		(1,124,252	)
Income tax expense		-			-			-			-
Net loss	$	(173,109	)	$	(206,595	)	$	(339,393	)	$	(1,124,252	)
Net loss per share:
Basic and diluted	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.03	)
Weighted average number of common shares outstanding:
Basic and diluted		34,248,585			34,584,384			34,248,585			44,646,568

 

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

4

FOREX INTERNATIONAL TRADING CORP.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

NINE MONTHS ENDED SEPTEMBER 30,

	2012			2011
				( Restated )
Cash flows from  operating activities:
Net loss	$	(339,393	)	$	(1,124,252	)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Recovery of allowance for credit loss		(100,000	)		-
Depreciation of property and equipment		4,146			4,303
Amortization of intangible assets		17,560			39,510
Amortization of debt discount		-			36,875
Common shares issued to consultants for services		-			362,000
Loss on settlement of GV Global payable		111,340			-
Changes in assets and liabilities:
Accrued interest on notes receivable		(224	)		(32,138	)
Accounts receivable and prepaid expenses		(12,750	)		(6,764	)
Accounts payable and accrued expenses		(123,945	)		326,936
Accrued interest on notes payable		49,664			90,785
Net cash used in operating activities		(393,602	)		(302,745	)
Cash flows from investing activities:
Investment in joint venture		(31,328	)		-
Issuance of notes receivable		(15,000	)		(150,000	)
Collection of short-term and notes receivables		803,926			-
Net cash provided by (used in) investing activities		757,598			(150,000	)
Cash flows from financing activities:
Issuance of common stock in private placement		-			28,345
Purchase of shares returned to treasury		-			(10,529	)
Repayment of  notes payable		(773,732	)		-
Net cash (used in ) provided by financing activities		(773,732	)		17,816
Net decrease in cash and cash equivalents		(409,736	)		(434,929	)
Cash and cash equivalents, beginning of period		411,656			460,149
Cash and cash equivalents, end of period	$	1,920		$	25,220
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	52,855		$	-
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Restricted common shares issued to pay certain expenses	$	-		$	71,736
Conversion of GV Global payable to Series C Preferred Stock	$	111,000		$	-
Conversion of accrued expense to note payable	$	155,242		$	-
Note issued to fund acquisition of additional 5% interest in a
private company	$	-		$	600,000
Issuance of Series A preferred shares to HAM pursuant to share exchange
agreement to acquire an additional 5% in a private company	$	-		$	1,200,000
Conversion of debt to common shares	$	-		$	200,000
Cancellation of common shares issued to Forex NYC	$	-		$	200,000

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

5

FOREX INTERNATIONAL TRADING CORP.

NOTES TO CONDENSED CONSOLIDATED  FINANCIAL STATEMENTS (UNAUDITED)

1.      Organization and Nature of Business

Forex International Trading Corp. (the “Company”) was incorporated on July 22, 2009 under the laws of the State of Nevada and is headquartered in Kensington, Maryland.  On September 9, 2009 the Company filed Form S-1 Registration Statement to provide for the registration of securities under the Securities Act of 1933.  The Company’s principal business activities have been to engage in foreign currency market trading for non-US resident professionals and retail clients over its web-based trading systems.  In addition, the Company is analyzing investments in joint ventures and is selectively pursuing acquisitions.

2.      Summary of Significant Accounting Policies

Presentation and Basis of Financial Statements

The accompanying unaudited condensed consolidated financial statements include the accounts of Forex International Trading Corp. and its consolidated subsidiaries (“Forex” or the Company”) and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and reports and with the instructions to  Form 10-Q and Rule 10-01 of  Regulation S-X. Accordingly, they do not include all, or include a condensed version of, the information and footnotes required by U.S. GAAP for complete financial statements. The Company believes, however, that the disclosures are adequate to make the information presented not misleading. The Company’s condensed consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for the fair presentation of the consolidated financial position and the consolidated results of operations of the Company for the periods shown. Results shown for the interim periods are not necessarily indicative of the results to be obtained for a full fiscal year or for any future period. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates, judgments and assumptions that affect the amounts reported in the condensed financial statements. Actual results might differ from management’s estimates.

The consolidated balance sheet information as of December 31, 2011 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with Securities and Exchange Commission (“SEC”) for the fiscal year ended December 31, 2011. These interim condensed consolidated financial statements should be read in conjunction with the Company’s most recently audited financial statements and in the above referenced Annual Report on Form 10-K.

All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods.  Significant estimates include the useful lives of tangible and intangible assets, depreciation and amortization, allowances for doubtful accounts and loan losses, valuation of common and preferred stock issuances, and the valuation allowance on deferred tax assets.  Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid financial instruments purchased with an original maturity of three months or less to be cash equivalents.

Notes and Short-Term Receivable

The note and short-term receivable are carried at cost, which approximates fair value.  The Company measures the impairment of loans based on its historical loan collection experience and existing economic conditions.  Impairment is recognized when management believes it is probable that payments will not be received on some portion of the loan, which is determined on an individual loan basis.  The Company evaluates loans for impairment on an annual basis or when there are indications that the loan may not be collected.  When management determines that a loan is impaired it is placed on non-accrual status, and an allowance for loan losses is established to recognize the estimated amount of impairment.  Payments received on non-accrual loans are generally applied to the outstanding principal balance.  Loans are removed from non-accrual status when management believes that the borrower will resume making the payments required by the loan agreement.

Property and Equipment

Property and equipment are stated at cost and the related depreciation is computed using the straight-line method over the estimated useful lives of the respective assets.  Expenditures for repairs and maintenance are charged to operations as incurred.  Renewals and betterments are capitalized.  Upon the sale or retirement of an asset, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is recognized in the results of operations.

6

Leasehold improvements are amortized over the lesser of the estimated life of the asset or the lease term.

As required by U.S. GAAP for long-lived assets, the Company evaluates the fair value of its property and equipment on an annual basis or whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.  Any impairment of value is recognized when the carrying amount of the asset exceeds its fair value.  There were no impairment losses for the three and nine months ended September 30, 2012 and 2011.

Treasury Stock

Treasury stock is recorded at cost.  The re-issuance of treasury shares is accounted for on a first in, first-out basis and any difference between the cost of treasury shares and the re-issuance proceeds are charged or credited to additional paid-in capital.

Income Taxes

The Company accounts for income taxes using the liability method, which provides for an asset and liability approach to accounting for income taxes.  Under this method, deferred tax assets and liabilities are recorded for future tax effects of temporary differences between the financial reporting and tax basis of assets and liabilities, and measured using the current tax rates and laws that are expected to be in effect when the underlying assets or liabilities are anticipated to be recovered or settled.  Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount of tax benefits expected to be realized.

U.S. GAAP requires that, in applying the liability method, the financial statement effects of an uncertain tax position be recognized based on the outcome that is more likely than not to occur.  Under this criterion the most likely resolution of an uncertain tax position should be analyzed based on technical merits and on the outcome that would likely be sustained under examination.  The Company had no uncertain tax positions as of September 30, 2012, and is current in its tax filings...

Revenue Recognition

Income from foreign currency operations is earned by referring potential customers to foreign exchange trading companies.  Foreign exchange trading companies remit a percentage of their revenues to the Company in exchange for customer leads, which the Company recognizes when the exchange trading occurs.

The Company recognizes consulting fees when services have been rendered.

Share-Based Compensation

The Company calculates stock-based compensation expense including compensation expense for all share-based payment awards made to employees and directors including employee stock options, stock appreciation rights and restricted stock awards based on their estimated grant date fair values.  The value of the portion of the award that is ultimately expected to vest is recognized as an expense on a straight-line basis over any required service period.  No such expenses were recognized for the three and nine months ended September 30, 2012 and 2011.  

Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period.  Diluted earnings (loss) per share considers the potential dilution that could occur if securities or other contracts to issue common stock were exercised or could otherwise cause the issuance of common stock, such as options, convertible notes and convertible preferred stock, were exercised or converted into common stock or could otherwise cause the issuance of common stock that then shared in earnings (loss).  Such potential additional common shares are included in the computation of diluted earnings per share.  Diluted loss per share has  not been computed for the three and nine months ended September 30, 2012 and 2011 because any potential additional common shares would reduce the reported loss per share and therefore have an antidilutive effect.

Going Concern

The accompanying financial statements have been prepared assuming the Company will continue as a going concern.  The future of the Company is dependent upon its ability to raise equity and debt financing, generate revenues and upon future profitable operations from the development of new business opportunities.  The financial statements do not include any adjustments relating to the recoverability of the Company’s assets or the payment of its liabilities in the event the Company cannot continue in existence.

Reclassifications

Certain reclassifications have been made to the prior years’ consolidated condensed financial statements to conform to the current year’s presentation.

3.      Acquisition and Divestiture/Restatements

Investment in Private Company—Triple 8

On November 17, 2010, the Company entered into a Share Exchange Agreement, which closed on December 30, 2010, to acquire 17,924 common shares, representing 44.9% of the issued and outstanding shares of Triple 8 Limited (“Triple 8”) from A.P. Holdings Limited (“APH”) (the “APH Agreement”).  In consideration for its purchase the Company issued 25,000,000 shares of common stock and a Note Payable (the “APH Note”) in the principal amount of $1,200,000, bearing interest at an annual rate of 6% and convertible into 6 million shares of common stock.  The APH Note was originally due on February 15, 2011.  Concurrently, certain shareholders agreed to surrender 70,000,000 shares of the Company’s common stock for cancellation to avoid diluting the ownership of the other existing shareholders. Following the purchase of Triple 8 shares from APH, the Company entered into another Share Exchange Agreement to acquire 1,996 common shares, or 5% of the issued and outstanding common shares of Triple 8, from the H.A.M. Group Limited (“HAM”).  As a result, the Company’s ownership of Triple 8 increased to 49.9% of the issued and outstanding common shares.  As consideration for its purchase, the Company issued HAM 12,000 shares of Series A Preferred Stock and a 6% Convertible Debenture for $600,000, due September 30, 2011 (the “HAM Note”).  The Series A Preferred Stock has a stated value of $100 per share and is convertible into common stock at a conversion price of $0.30 per share, thus representing 4,000,000 shares of common stock of the Company.

7

The Company defaulted on its note payable to APH and on its obligation under the HAM Note.  In order to avoid costly litigation and the potential detrimental impact of a judgment against the Company, as a result of two defaults, the Company entered into an agreement to annul its purchases of its ownership interest in Triple 8.  As a part of the Annulment:

·   Triple 8 has agreed to pay the Company $2,001,000 (the “Triple Payments”) over time through November 2012.  If Triple 8 fails to make any of the payments for a period of 60 days, it must transfer the original number of its common shares (17,924) purchased back to the Company.  In addition, Triple 8 is not entitled to have any previous payments returned.

·   The Company issued a new $1,000,000 promissory note (the "CDOO Note") to an assignee of HAM and APH as consideration for the termination of the APH Note and the HAM Note, which were both in default.  The assignee has the ability to foreclose on all shares of Triple 8 held by the Company.  The CDOO note bears interest at an annual rate of ten percent (10%) and is due and payable in full on November 30, 2012.  In the event that Triple 8 fails to make the Triple Payments, then the amount payable under the CDOO Note is to be reduced by half of the amount of any missed payment.

·   APH and HAM agreed to return all of their stock holdings to the Company for cancellation.

The Annulment closed on December 7, 2011, and the Company received its initial Triple Payment of $732,000 in cash at that time. Subsequently, the Company received Triple Payments in the aggregate amount of $653,926 for the nine months ended September 30, 2012 per the terms of the agreement.

The Company initially accounted for its acquisition of Triple 8 using the acquisition method as prescribed by U.S. GAAP.  Under the acquisition method, the acquirer must recognize the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at their acquisition date fair values.  Although the Company acquired less than 50% of the ownership of Triple 8, the use of the acquisition method and the accounting treatment of Triple 8 were considered appropriate because the Company believed that it had acquired control of Triple 8.  The basis behind the determination that the Company acquired control of Triple 8 even though it owned a minority stake, was that an employee of the Company became the sole member of the Board of Triple 8’s operating subsidiary and continued to be in that role until June 2011.  In addition, the Company believed that Triple 8 was subject to consolidation under U.S. GAAP as a Variable Interest Entity.

However, in June 2011, Triple 8’s operating subsidiary’s management unilaterally removed the Company’s employee from its Board and asserted its control over business operations.  Since then, the Company has reevaluated its determination that it had acquired control of Triple 8 and that Triple 8 was subject to consolidation as a Variable Interest Entity.  As a result, management  concluded that it never really had control and that the use of the acquisition method of accounting was not appropriate.  Upon reconsideration, management also concluded that Triple 8 was not subject to consolidation as a Variable Interest Entity essentially because the Company had no equity investment at risk.  In coming to these conclusions, the Company considered the following:

1.   The fair value of the consideration paid in both of the Share Exchange Agreements is questionable.  The original consideration included the Company’s stock and notes payable.  Given that the fair value of the Company’s stock and the fair value of Triple 8 was difficult to determine and that the Company never made any cash payments for its obligations under the notes payable, there is a legitimate argument that no consideration was paid for the Triple 8 stock received under the Share Exchange Agreements.

a.   With respect to exchange value of the company’s stock, management takes into account that at the time of the Share Exchange Agreements the Company’s stock was not trading.  [Since then, the Company’s stock has been a thinly traded penny stock that has had a high level of price volatility with respect to what stock has been traded and has not been rated by any analysts.]

b.   With respect to value in use of the would-be acquiree, management takes into account that at the time of the Share Exchange Agreements Triple 8 was a newly formed entity in business for only 2 years.  Under the circumstances, any valuation of Triple 8 would be highly subjective.  A market or cost approach to valuing Triple 8 was not feasible and an income approach requires highly subjective estimates about future operations, profits, and cash flows.

c.   The Company’s failure to make debt payments and the continuing revisions indicate that the Company’s Notes Payable were of little value to Triple 8’s sellers.

2.   The unilateral removal of the Company’s employee from the Triple 8 Board and Triple 8’s operating subsidiary management assertion of its control over business operations indicates the Company’s inability to control Triple 8.

These considerations have led the Company to conclude that the purchase of Triple 8 involved no real consideration.  Furthermore, the Share Exchange Agreement transactions do not meet the conditions necessary to qualify as a business combination achieved without the transfer of consideration under U.S. GAAP.

8

The Company has also considered the use of the equity method and the cost method of accounting in connection with the Share Exchange Agreement transactions for the purchase of Triple 8.  Generally, U.S. GAAP requires that investments in common stock or in entities over which the investor can exercise significant influence, but not control, be accounted for using the equity method.  Otherwise, an investment should be accounted for at cost.  In addition, the Company believes that its investment in Triple 8 should be accounted for at cost because it did not have significant influence over the period from the closing of the APH Agreement through to date of the annulment agreement.  While the Company did not have significant influence over Triple 8 during that period, the counterparties to the annulment agreement acknowledged the Company’s investment by entering into the annulment agreement.  Therefore, these financial statements have been restated to present the investment in Triple 8 on a cost basis, with cost being determined by the market value of the Company’s stock paid and the stated value of the note payable issued under the APH Agreement.

Presented below are restatements of the statement of operations for the three and nine months ended September 30, 2011 and statements of cash flows for the nine months ended September 30, 2011 to reflect the deconsolidation of Triple 8, a restatement for shares issued for services of $360,000 that had been previously been capitalized and correction of the weighted average common shares outstanding.

FOREX INTERNATIONAL TRADING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2011

	Three months ended September 30,2011									Nine months ended September 30,2011
	As Previously									As Previously
	Reported			Net Change			As Restated			Reported			Net Change			As Restated
Revenues:
Income from foreign currency operations	$	-		$	-		$	-		$	616		$	-		$	616
Consulting and services		-			-			-			10,000			-			10,000
		-			-			-			10,616			-			10,616
Cost of revenues		-			-			-			-			-			-
		-			-			-			10,616			-			10,616
General and administrative expenses		179,925			454			180,379			702,380			360,454			1,062,834
Loss from operations		(179,925	)		(454	)		(180,379	)		(691,764	)		(360,454	)		(1,052,218	)
Other income (expenses):
Interest expense, net of interest income		(26,216	)		-			(26,216	)		(72,034	)		-			(72,034	)
Impairment expense to goodwill from Variable Interests		(24,800,000	)		24,800,000			-			(24,800,000	)		24,800,000			-
Income from equity interest in Variable Interests		-			-			-			394,309			(394,309	)		-
Total other income (expenses)		(24,826,216	)		24,800,000			(26,216	)		(24,477,725	)		24,405,691			(72,034	)
(Loss) income before income taxes		(25,006,141	)		24,799,546			(206,595	)		(25,169,489	)		24,045,237			(1,124,252	)
Income tax expense		-			-			-			-			-			-
Net (loss) income	$	(25,006,141	)	$	24,799,546		$	(206,595	)	$	(25,169,489	)	$	24,045,237		$	(1,124,252	)
Net (loss) income per share:
Basic and diluted	$	(0.60	)	$	0.59		$	(0.01	)	$	(0.61	)	$	0.58		$	(0.03	)
Weighted average number of common
shares outstanding:
Basic and diluted		41,428,796			(6,844,412	)		34,584,384			41,428,796			3,217,772			44,646,568

9

FOREX INTERNATIONAL TRADING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

NINE MONTHS ENDED SEPTEMBER 30, 2011

	As Previously
	Reported			Net Change			As Restated
Cash flows from  operating activities:
Net loss	$	(25,169,491	)	$	24,045,239		$	(1,124,252	)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation  of  property and equipment		4,303			-			4,303
Amortization of intangible assets		39,682			(172	)		39,510
Amortization of debt discount		38,390			(1,515	)		36,875
Common shares issued to consultants for services		-			362,000			362,000
Income fron equity interest in Triple 8 Limited		(394,309	)		394,309			-
Impairment expense to goodwill from variable interest		24,800,000			(24,800,000	)		-
Change in accounting method for investment in variable interest -
reclassification of goodwill		3,531,487			(3,531,487	)		-
Foreign currency adjustment		1,533			(1,533	)		-
Changes in assets and liabilities:
Accrued interest on notes receivable		-			(32,138	)		(32,138	)
Accounts receivable and prepaid expenses		8,075			(14,839	)		(6,764	)
Other assets		(4,487,375	)		4,487,375			-
Secured note and debt discount		51,205			(51,205	)		-
Accounts payable and accrued expenses		(2,048,521	)		2,375,457			326,936
Other current liabilities		460,767			(460,767	)		-
Other liabilities		(75,000	)		75,000			-
Accrued interest on notes payable		98,818			(8,033	)		90,785
Net cash provided by (used in) operating activities		(3,140,436	)		2,837,691			(302,745	)
Cash flows from investing activities:
Investment in additional 5% of Triple 8 Limited		(1,800,000	)		1,800,000			-
Issuance of a short-term receivable		-			(150,000	)		(150,000	)
Net cash (used in) provided by investing activities		(1,800,000	)		3,600,000			(150,000	)
Cash flows from financing activities:
Issuance of common stock in private placement		28,345			-			28,345
Purchase of shares returned to treasury		(10,529	)		-			(10,529	)
Retirement of common shares to purchase Triple 8 Limited		(25,800,800	)		25,800,800			-
Issuance of Series A preferred shares to replace common shares		25,800,080			(25,800,080	)		-
Issuance of shares to reduce note		71,736			(71,736	)		-
Series A shares issued to fund acquisition of additional 5% of Triple 8 Limited		1,200,000			(1,200,000	)		-
Note payable issued to fund acquisition of additional 5% of Triple 8 Limited		600,000			(600,000	)		-
Net cash provided by (used in) financing activities		1,888,832			(1,871,016	)		17,816
Net increase (decrease) in cash and cash equivalents		(3,051,604	)		2,616,675			(434,929	)
Cash and cash equivalents, beginning of period		3,078,339			(2,618,190	)		460,149
Cash and cash equivalents, end of period	$	26,735		$	(1,515	)	$	25,220
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Restricted common shares issued to pay certain expenses	$	-		$	71,736		$	71,736
Note issued to fund acquisition of additional 5% interest in
Triple 8 Limited	$	-		$	600,000		$	600,000
Issuance of Preferred Shares Series A - Triple 8 limited	$	25,800,080		$	(25,800,080	)	$	-
Equity interest from Triple 8 limited, YTD	$	(25,800,000	)	$	25,800,000		$	-
Impairment expense from variable interest	$	394,309		$	(394,309	)	$	-
Issuance of Series A preferred shares to acquire an
additional 5% in Triple 8 Limited	$	1,200,000		$	-		$	1,200,000
Conversion of debt to common shares	$	-		$	200,000		$	200,000
Cancellation of common shares issued to Forex NYC	$	-		$	200,000		$	200,000
Accrued interest on notes payable	$	137,276		$	137,276		$	-
Accrued interest on notes receivable	$	32,142		$	32,142		$	-

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4.Notes and Short-term Receivables

At September 30, 2012 and December 31, 2011, notes and short-term receivables, including accrued interest, consisted of:

	2012		2011
Note receivable for annulment of Triple 8 investment	$	615,074	$	1,269,000	a.
Commercial note receivable, net of allowance
of $100,000		-		50,900	b.
Note receivable - Apel Design		16,124		-	c.
Total notes and short-term receivables	$	631,198	$	1,319,900

a.   In connection with the Triple 8 annulment agreement, the Company has a short term receivable of $1,269,000 which requires monthly payments of $68,914 in January 2012, $73,214 per month from February 2012 through October 2012, and a final payment of $541,860 in November 2012.  This receivable bears no interest and is the remaining portion, after the initial payment of $732,000, of the total $2,001,000 that Triple 8 agreed to pay the Company under the annulment of the share purchase agreements.  For the nine months ended September 30, 2012 the Company has received payments amounting to $653,926.

b.   Note receivable from Fortune Market Media Inc. (“FTMK”), original principal of $150,000, interest at a 12% annual rate, maturing on February 13, 2012.   FTMK had defaulted on the loan and the Company had established a reserve for loan losses of $100,000 at December 31, 2011. During the nine months ended September 30, 2012 the Company collected the entire amount of the original receivable plus accrued interest. At September 30, 2012 the Company has reflected the reversal of the $100,000 allowance for credit losses that had been established as other income in the accompanying financial statements.

c.   Note receivable from Amit Apel Design, Inc. (“Apel Design”) original principal of $15,000, interest at a 12% annual rate, maturing on August 13, 2012. Subsequently, the parties agreed to extend the maturity of the note to December 31, 2012. The note is secured by Apel Design’s inventory. As of September 30, 2012, the amount owed the Company by Apel including accrued interest is $16,124.

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5.      Property and Equipment, Net

Property and equipment consisted of the following as of September 30, 2012 and December 31, 2011:

	Estimated
	Useful
	Lives	2012		2011
Computers and equipment	3 years	$	12,539	$	12,539
Furniture	7 years		9,430		9,430
			21,969		21,969
Less accumulated depreciation			12,171		8,025
		$	9,798	$	13,944

Depreciation expense was $4,146 and $4,303 for the nine months ended September 30, 2012 and 2011, respectively.

6.      Other Assets

Other assets consisted of the following as of September 30, 2012 and December 31, 2011:

	2012		2011
White label licensing and websites	$	-	$	17,560
Investment in joint venture		31,328		-
	$	31,328	$	17,560

Websites development, net

On April 19, 2010, the Company entered into a Software Licensing Agreement whereby the Company licensed proprietary trading software (the “Software”) for the purpose of developing a Forex Trading Platform and introducing prospective clients (“End Users”).  In return, the Company received a newly created website, at cost of $105,359.  The cost of the website includes the vendor’s normal set-up fee plus payroll costs and consulting fees incurred by the Company relating to the development of internal use software.  The total cost of $105,359 cost was capitalized and is being amortized over a 2-year life. At September 30, 2012, the asset has been fully amortized. Amortization expense amounted to $17,560 and $39,510 for the nine months ended September 30, 2012 and 2011, respectively.

Investment in Joint Venture

On February 13, 2012, Direct JV Investments Inc (“Direct JV”), a wholly-owned subsidiary of the Company (“Direct JV”), entered into a Joint Venture Agreement with Vulcan Oil & Gas Inc. (“Vulcan”), whereby the Company will from time to time provide financing to certain Vulcan alternative, green and solar energy projects (the “Projects”) with the goal of sharing in any rebates awarded by the government on any of the Projects.  For all the Projects in the U.S. residential market, profits and losses of each of the Projects will be allocated at the conclusion of each fiscal year at a ratio of 60% to Vulcan and 40% to the Company.  For all other projects, the profit and loss allocation will be determined on a case by case basis.  There is no guarantee that the Projects will generate any revenues. As of September 30, 2012, Direct JV advanced Vulcan $31,328 per the agreements on specific projects.

On September 30, 2012, Vulcan entered into a cooperative joint venture with two other companies to forrn the entity Project Day4 Marketing (“PD4M”), Vulcan’s share of PD4M’s profits and losses is 40%. Per the joint venture agreement formed between the Company and Vulcan, the Company’s share of Vulcan’s profits and losses is 40%. Therefore, the Company’s share of the profits and losses for PD4M is 16%.

The Company had no income or loss from the joint ventures for the nine months ended September 30, 2012.

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7.           Notes Payable

At September 30, 2012 and at December 31, 2011, notes payable and accrued interest consisted of:

	2012		2011
Rasel notes payable and accrued interest	$	139,301	$	135,548
Glendon note payable		155,242		-
Cordelia note payable and accrued interest		279,123		1,006,944
	$	573,666	$	1,142,492

Rasel LTD - Convertible Notes Payable

On October 6, 2009 the Company signed a note payable for $25,000 to Rasel due on October 6, 2010 bearing interest at 4% per annum.  The proceeds were used to pay for half of existing accounts payable for legal fees incurred at the Company’s inception.  On October 20, 2009 the Company signed a note payable for $50,000 payable to Rasel due on October 20, 2010 bearing interest at 4% per annum.  These proceeds were used to pay for startup costs, audit fees and future expenses.  On January 22, 2010 the Company signed a note payable for $50,000 payable to Rasel due on October 30, 2011 bearing interest at 4% per annum.  These proceeds were used for working capital and expenditures.  On January 22, 2010 the Company signed an amendment to extend the maturity date of the promissory notes in the amount of $25,000 and $50,000 dated October 6, 2009 and October 20, 2009, respectively, to October 30, 2011.  On March 2, 2011 the Company and Rasel agreed to extend the maturity of all notes to December 31, 2012 in consideration of adding a conversion feature to the notes with either a 5% discount to the market price or a fixed price of $0.60.  The extension of maturity was effective as of December 30, 2010.

The balance of the notes as of September 30, 2012 and December 31, 2011was $139,301 and $135,548, respectively, which includes accrued interest in the amounts of $14,301 and $10,548 at September 30, 2012 and December 31, 2011, respectively.

Glendon Note Payable

On September 30, 2012, the Company converted a payable in the amount of $155,242 to a note payable. This note bears annual interest at 10%, and matures on December 31, 2012.

Cordelia (CDOO) Note Payable

The Company entered into a settlement agreement to annul its purchase of Triple 8 stock and issued a new promissory note to CDOO in the principal amount of $1,000,000.  The CDOO note bears interest at the rate of ten percent (10%) per annum and is due and payable in full on November 30, 2012.  Payments made for the nine months ended September 30, 2012 amounted to $$773,732  of which $45,911 was for accrued interest. The balance due at September 30, 2012 on the CDOO note is $279,123.   The balance due as of December 31, 2011 on the CDOO note was $1,006,944, which included accrued interest in the amount of $6,944.

8.      Stockholders’ Equity

Authorized Shares

The Company has 400,000,000 authorized shares of its $0.00001 par value common stock and 20,000,000 shares of its $0.00001 par value Preferred Stock Series  B as of September 30, 2012 and December 31, 2011. On September 26, 2012, the Company authorized 10,000  Preferred Stock Series C shares, par value $0.00001.

Common Shares:

On January 17, 2011, the Company issued to Core Consulting Group 700,000 restricted shares for serving as the Company’s investor relations firm. The amount charged to consulting fees was $210,000.

On January 27, 2011, the Company issued 324,234 shares to ATL for certain draws on a note to pay expenses in the amount of $71,736.  The note payable balance to ATL was reduced by the amount of those expenses. The Company did not deliver the shares to ATL. Based on the Triple 8 settlement agreement, these shares have been surrendered back to the Company.

On March 28, 2011 the Company issued to a consultant 10,000 restricted shares as part of the Company’s consideration under a consulting agreement. The amount charged to consulting fees was $2,000.

On April 5, 2011, the Company and, a shareholder of the Company, entered into an agreement whereby the parties agreed that a $200,000 6% Convertible note payable of the Company which had been assigned to said shareholder and was now in default by the Company would be satisfied by the issuance of 2,500,000 shares of common stock to the shareholder.

On June 29, 2011, pursuant to the terms of, and in consideration for Centurion entering into, the Investment Agreement, the Company issued 1,214,224 shares of Common Stock to Centurion as a commitment fee in connection with the Investment Agreement (the "Commitment Shares") and 86,730 shares of the Common Stock representing fees incurred by Centurion in connection with the Investment Agreement (the "Fee Shares"), in each case based upon a deemed valuation per share equal to 100% of the volume-weighted average price of the Company's Common Stock for the 5 trading days immediately preceding the date of the Investment Agreement.

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All the above shares of common stock of the Company were offered and sold by the Company in a securities purchase transaction made in reliance upon exemptions from registration pursuant to Section 4(2) under the Securities Act of 1933 (the “Securities Act”) and/or Rule 506 promulgated under the Securities Act. The investors are accredited investors as defined in Rule 501 of Regulation D promulgated under the Securities Act.

There were no common stock issuances for the nine months ended September 30, 2012.

Treasury Stock

On April 25, 2011, the Company issued a press release announcing that its Board of Directors approved a share repurchase program.  Under the program, the Company is authorized to purchase up to 1,000,000 of its shares of common stock in open market transactions at the discretion of management.  All stock repurchases will be subject to the requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended and other rules that govern such purchases.  As of September 30, 2012 and December 31, 2011, the Company had repurchased 38,000 of its common shares in the open market, which were returned to treasury.

Series A Preferred Shares (cancelled in December 2011)

The Series A Preferred Stock was issued as a part of the Share Exchange Agreements relating to the Triple 8 purchase and had a stated value of $100 per share and was convertible into the Company’s common stock at a conversion price of $0.30 per share representing 4,000,000 shares of common stock.  The Series A Preferred Stock voted on an as-converted basis multiplied by three and carried standard anti-dilution rights.  The Series A Preferred Stock did not carry preferential liquidation rights.  As part of the annulment of the Triple 8 Share Exchange Agreements share all of the outstanding Series A Preferred shares were returned to the Company and the stock has been canceled.

Series B Preferred Shares

On November 1, 2011, the Company and certain creditors entered into a Settlement Agreement (the "Agreement") whereby without admitting any wrongdoing on either part, the parties settled all previous agreements and resolved any existing disputes.  Under the terms of the Agreement, the Company agreed to issue the creditors 45,000 shares of Series B Preferred Stock of the Company on a pro-rata basis.  Following the issuance and delivery of the shares of Series B Preferred Stock to said creditors, as well as surrendering the undelivered shares, the Agreement resulted in the settlement of all debts, liabilities and obligations between the parties.

The Series B Preferred Stock has a stated value of $100 per share and is convertible into the Company’s common stock at a conversion price of $0.30 per share representing 15,000,000 common shares. Furthermore, the Series B Preferred Stock votes on an as converted basis and carries standard anti-dilution rights. These rights were subsequently removed, except in cases of stock dividends or splits.

Series C Preferred Shares

On April 29, 2011, GV Global Communications, Inc. (“GV”) provided funding to the Company in the aggregate principal amount of $111,000 (the “Loan”).  On September 25, 2012, the Company and GV entered into a Conversion Agreement pursuant to which the Company agreed to convert the Loan into 10,000 shares of Series C Preferred Stock of the Company, which was approved by the Board of Directors.

Each share of Series C Preferred Stock is convertible, at the option of GV, into such number of shares of common stock of the Company as determined by dividing the Stated Value (as defined below) by the Conversion Price (as defined below).  The Conversion Price for each share is equal to a 50% discount to the average of the lowest three lowest closing bid prices of the Company’s common stock during the 10 day trading period prior to the conversion with a minimum conversion price of $0.001.  The stated value is $11.00 per share (the “Stated Value”).  The Series C Preferred Stock has no liquidation preference, does not pay dividends and the holder of Series C Preferred Stock shall be entitled to one vote for each share of common stock that the Series C Preferred Stock shall be convertible into.   GV has contractually agreed to restrict its ability to convert the Series C Preferred Stock and receive shares of the Company's common stock such that the number of shares of the Company's common stock held by it and its affiliates after such conversion does not exceed 4.9% of the then issued and outstanding shares of the Company's common stock.

The issuance of the Series C Preferred Stock was made in reliance upon exemptions from registration pursuant to Section 4(2) under the Securities Act of 1933 and Rule 506 promulgated under Regulation D thereunder.  GV is an accredited investor as defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933.

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9.      Related Parties

Related parties are natural persons or other entities that have the ability, directly or indirectly, to control another party or exercise significant influence over the party in making financial and operating decisions. Related parties include other parties that are subject to common control or that are subject to common significant influences.

On January 18, 2011, Liat Franco was appointed by the Company to serve as the Secretary of the Company.  For her services during her term as Secretary, the Company is to issue Ms. Franco 15,000 shares of common stock of the Company, which will have a restrictive legend under the Securities Act of 1933, as amended.  In the event Ms. Franco’s employment agreement is extended, then the number of shares of common stock will be determined by dividing $6,000 by the market price on the first trading day of the term.  On November 15, 2011, Ms. Franco was appointed by the Company to serve as the Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and a director of the Company.  The Board of Directors elected to appoint Ms. Franco, who is an attorney licensed in the United States and Israel, as an executive officer and director to handle the Triple 8 settlement agreement.  As of September 30, 2012, no Company shares had been delivered.  On April 23, 2012, Ms. Franco resigned as an executive officer of the Company, but continued on as Director of the Board and Secretary of the Company.  On May 23, 2012, Ms. Franco resigned as Director of the Company to pursue other interests.

Effective January 2, 2012, Erik Klinger was appointed by the Company to serve as the Chief Financial Officer, on a part-time basis, and a Director of the Company.  A company controlled by Mr. Klinger receives a monthly fee of $3,500 for his services.

As of December 31 2011 the Company owed Ms. Franco $50,000, a company controlled by Mr. Klinger $6,500 and the former CEO $17,409. As of March 31, 2012 Ms. Franco was paid in full, and the Company owed the former CEO $2,409.  As of September 30, 2012, the payables outstanding have been paid in full, and the Company had accrued directors’ fees of $15,321, $15,321 and $4,159 to Ms. Franco, Mr. Glass, and Mr. Reich, respectively (recorded in accounts payable and accrued expenses), which will be settled in cash.

On April 23, 2012, Robert Morris Price was appointed by the Company to serve as the President, Chief Executive Officer, and Treasurer as well as Chairman of the Company.  

There is no understanding or arrangement between Mr. Price and any other person pursuant to which he was appointed as an executive officer and director.  Mr. Price does not have any family relationship with any director, executive officer or person nominated or chosen by the Company to become a director or an executive officer.  Mr. Price has not had direct or indirect material interest in any transaction or proposed transaction, in which the Company was or is a proposed participant, exceeding $120,000.

10.       Contingencies

Legal Proceedings

From time to time, the Company may be involved in various litigation matters, which arise in the ordinary course of business.  There is currently no litigation that management believes will have a material impact on the financial position of the Company.

On or about June 13, 2011 the Company initiated a complaint against an individual and website for defamation, intentional interference with prospective economic advantage, negligent and violations of business and professions codes.  The Complaint was filled with the Superior Court of the State of California - County of San Diego.  On August 22, 2011, the defendants filed a notice of motion to strike the complaint under the anti-slapp statute.  On September 14, 2011, the Company submitted a request for dismissal, without prejudice to the court.  On January 20, 2012 the court heard the defendants’ motion (where the Company failed to appear) and the judge ruled in favor of the defendant and awarded attorney fees and court costs in the amount of $21,462. The Company filed a motion to vacate the judgment and the motion was vacated..

On or around September 14, 2012, the judged awarded the defendant $12,000 in fees. The Company believes it is owed approximately the same amount by buying  the interest in a different lawsuit which  involved the same defendant. In that lawsuit, the rights to attorney fees and costs were awarded to the Company. The Company believes that the amounts due them from that particular lawsuit approximately equals the amount that it owes to satisfy the judgment against them.

11.      Per Share Information

Loss per share

Basic loss per share of common stock is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding.  Diluted loss per share of common stock (“Diluted EPS”) is computed by dividing the net loss by the weighted-average number of shares of common stock and dilutive common stock equivalents and convertible securities then outstanding.  At September 30, 2012 and September 30, 2011 (restated), there were 26,232,169 and 11,005,071, respectively, of potentially dilutive common stock equivalents outstanding.  The potentially dilutive common stock equivalents at September 30, 2012 arise from (x) the issuance on December 7, 2011 of 45,000 Series B Preferred Shares which are convertible into 15 million shares, (y) the issuance of the Rasel note which is convertible into 230,068 shares, and (z) the issuance of 10,000 Series C Preferred Shares having a stated value of $100 per share which are convertible into 11,000,000 common shares, given recent market prices, and notwithstanding a restriction against owning more than 4.99% of the Company’s stock.  The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net loss per common share.

12.      Subsequent Events

The Company has evaluated subsequent events from the balance sheet date through the date the accompanying condensed consolidated financial statements became available to be issued. There are no subsequent events to be disclosed at this time.

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ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

 The following discussion and analysis summarizes the significant factors affecting our condensed consolidated results of operations, financial condition and liquidity position for the three and nine months ended September 30, 2012. This discussion and analysis should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10-K for our year-ended December 31, 2011 and the condensed consolidated unaudited financial statements and related notes included elsewhere in this filing. The following discussion and analysis contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward looking statements, including without limitation, statements related to our plans, strategies, objectives, expectations, intentions and adequacy of resources. Investors are cautioned that such forward-looking statements involve risks and uncertainties including without limitation the following: (i) our plans, strategies, objectives, expectations and intentions are subject to change at any time at our discretion; (ii) our plans and results of operations will be affected by our ability to manage growth; and (iii) other risks and uncertainties indicated from time to time in our filings with the Securities and Exchange Commission.

In some cases, you can identify forward-looking statements by terminology such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘could,’’ ‘‘expects,’’ ‘‘plans,’’ ‘‘intends,’’ ‘‘anticipates,’’ ‘‘believes,’’ ‘‘estimates,’’ ‘‘predicts,’’ ‘‘potential,’’ or ‘‘continue’’ or the negative of such terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of such statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We are under no duty to update any of the forward-looking statements after the date of this Report.

This section of the report should be read together with Notes of the Company consolidated financials. The consolidated statements of operations for the three and nine month periods ended September 30, 2012 and September 30, 2011 are compared (subject to the above description and the restatement of the financials for the period ended September 30, 2011 – as detailed in footnote 3 and in this report) in the sections below:

General Overview

On April 19, 2010, the Company entered into a Software Licensing Agreement with Triple 8 Limited (“Triple 8”), which is a currency trading platform, organized under the laws of Cyprus whereby the Company licensed Triple 8’s proprietary trading software (the “Software”) for the purpose of developing a Forex Trading Platform and introducing prospective clients (“End Users”).  Triple 8 created a website for the Company under the domain www.4xint.com which is blocked for US and Canadian clients. The Company maintains a corporate website under the domain www.forex-international-trading.com.

Triple 8 Investments and Settlement

On November 17, 2010, we entered into a Share Exchange Agreement (the transaction was effectively closed on December 30, 2010) to acquire 17,924 common shares, representing 44.9% of the issued and outstanding shares of Triple 8 Limited (“Triple 8”) from A.P. Holdings Limited (“APH”) (the “APH Agreement”).  In consideration for its purchase, Forex issued 25,000,000 shares of common stock and a Note Payable (the “APH Note”) in the principal amount of $1,200,000, bearing interest at an annual rate of 6% and was convertible into 6 million shares of common stock.  The APH Note was originally due on February 15, 2011.  Concurrently, certain shareholders of Forex agreed to surrender 70,000,000 shares of the Company’s common stock for cancellation to avoid diluting the ownership of other existing shareholders.

Following the purchase of Triple 8 shares from APH, we entered into another Share Exchange Agreement to acquire 1,996 common shares, or 5% of the issued and outstanding common shares of Triple 8, from the H.A.M. Group Limited (“HAM”).  As a result, our ownership of Triple 8 increased to 49.9% of the issued and outstanding common shares.  As consideration for its purchase, Forex issued HAM 12,000 shares of Series A Preferred Stock and a 6% Convertible Debenture for $600,000, due September 30, 2011 (the “HAM Note”).  The Series A Preferred Stock has a stated value of $100 per share and is convertible into our common stock at a conversion price of $0.30 per share, thus representing 4,000,000 shares of common stock of the Company.

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The Company defaulted on its note payable to APH and on its obligation under the HAM Note.  In order to avoid costly litigation and the potential detrimental impact of a judgment against the Company, as a result of two defaults, entered into an agreement to annul its purchases of its ownership interest in Triple 8.  As a part of the Annulment:

·   Triple 8 has agreed to pay Forex $2,001,000 (the “Triple Payments”) over time through November 2012.  If Triple 8 fails to make any of the payments for a period of 60 days, it must transfer the original number of its common shares (17,924) purchased back to the Company.  In addition, Triple 8 is not entitled to have any previous payments returned.

·   Forex issued a new $1,000,000 promissory note (the "CDOO Note") to an assignee of HAM and APH as consideration for the termination of the APH Note and the HAM Note, which were both in default.  The assignee has the ability to foreclose on all shares of Triple 8 held by the Company.  The CDOO note bears interest at an annual rate of ten percent (10%) and is due and payable in full on November 30, 2012.  In the event that Triple 8 fails to make the Triple Payments, then the amount payable under the CDOO Note is to be reduced by half of the amount of any missed payment.

·   APH and HAM agreed to return all of their stock holdings to the Company for cancellation.

The Annulment closed on December 7, 2011, and the Company received its initial Triple Payment of $732,000 in cash at that time. Subsequently, the Company received Triple Payments in the aggregate amount of $653,926 for the nine months ended September 30, 2012 per the terms of the agreement.

Forex initially accounted for its acquisition of Triple 8 using the acquisition method as prescribed by U.S. GAAP. Under the acquisition method, the acquirer must recognize the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at their acquisition date fair values.  Although the Company acquired less than 50% of the ownership of Triple 8, the use of the acquisition method and the accounting treatment of Triple 8 were considered appropriate because Forex believed that it had both significant influences over the operations of Triple 8 as well as equity investment risk as the Triple 8’s primary beneficiary.  The basis behind the determination that Forex had acquired control of Triple 8 even though it owned a minority stake in Triple 8, was that an employee of the Company became the sole member of the Board of Triple 8’s operating subsidiary and continued to be in that role until late June 2011.  In addition, Forex believed that Triple 8 was subject to consolidation under U.S. GAAP as a Variable Interest Entity.

However in June 2011, Triple 8’s operating subsidiary’s management unilaterally removed our Company’s employee from its Board and asserted its control over business operations.  Since then, the Company has reevaluated its determination that it had acquired control of Triple 8 and that Triple 8 was subject to consolidation as Variable Interest Entity. As a result, management has concluded that it never really had control and that the use of the acquisition method of accounting was not appropriate.  Upon reconsideration, management also concluded that Triple 8 was not subject to consolidation as a Variable Interest Entity essentially because the Company had no equity investment at risk. In coming to these conclusions, Forex considered the following:

  1. The fair value of the consideration paid in both of the Share Exchange Agreements is questionable.  The original consideration included the Company’s stock and notes payable.  Given that the fair value of the Company’s stock and the fair value of Triple 8 was difficult to determine and that the Company never made any cash payments for its obligations under the notes payable, there is a legitimate argument that no consideration was paid for the Triple 8 stock received under the Share Exchange Agreements.

a.   With respect to exchange value of the Company’s stock, management takes into account that at the time of the Share Exchange Agreements the Company’s stock was not trading.  [Since then, the Company’s stock has been a thinly traded penny stock that has had a high level of price volatility with respect to what stock has been traded and has not been rated by any analysts.]

b.   With respect to value in use of the would-be acquiree, management takes into account that at the time of the Share Exchange Agreements Triple 8 was a newly formed entity in business for only 2 years.  Under the circumstances, any valuation of Triple 8 would be highly subjective.  A market or cost approach to valuing Triple 8 was not feasible and an income approach requires highly subjective estimates about future operations, profits, and cash flows.

c.   The Company’s failure to make debt payments and the continuing revisions indicate that the Company’s Notes Payable were of little value to Triple 8’s sellers.

2.   The unilateral removal of the Company’s employee from the Triple 8 Board and Triple 8’s operating subsidiary management assertion of its control over business operations indicates the Company’s inability to control Triple 8.

These considerations have led the Company to conclude that the purchase of Triple 8 involved no real consideration.  Furthermore, the Share Exchange Agreement transactions do not meet the conditions necessary to qualify as a business combination achieved without the transfer of consideration under U.S. GAAP.

The Company has also considered the use of the equity method and the cost method of accounting in connection with the Share Exchange Agreement transactions for the purchase of Triple 8.  Generally, U.S. GAAP requires that investments in common stock or in entities, over which the investor can exercise significant influence, but not control, be accounted for using the equity method.  Otherwise, an investment should be accounted for at cost. In addition, the Company believes that its investment in Triple 8 should be accounted for at cost during the period from the closing of the APH Agreement through to the date of the annulment agreement.  While the Company did not have significant influence over Triple 8 during that period, the counterparties to the annulment agreement acknowledged the Company’s investment by entering into the annulment agreement.  Therefore, these financial statements have been restated to present the investment in Triple 8 on a cost basis, as cost being determined by the market value of the Company’s stock paid and the stated value of the note payable issued under the APH Agreement.  The gain on settlement of Triple 8 is accounted for as other income in the 2011 statement of operations.

17

This section of the report should be read together with Notes of the Company’s consolidated financials as well as the other matters described in this filing.

Results of Operations:

Three months ended September 30, 2012 and 2011

A comparison of the consolidated statements of operations for the three months ended September 30, 2012 and 2011 is as follows:

Revenues:

The following table summarizes our revenues for the three months ended September 30, 2012 and 2011:

Three months ended September 30,	2012		2011
Total revenues	$	0	$	0

The Company had no revenues in both periods.

Operating expenses:

The following table summarizes our operating expenses for the three months ended September 30, 2012 and 2011:

Three months ended September 30,	2012		2011
Total operating expenses	$	49,733	$	180,379

The Company had significant operating costs (including professional and consulting fees, compensation and travel costs) associated with the Company’s involvement with Triple 8 for the third quarter ended 2011, as compared to the same period in 2012. In addition, the Company recorded lower advertising expense in the third quarter of 2012, and salaries were lower due to the departure of the former CEO.

Other income (expenses):

The following table summarizes our other income (expenses) for the three months ended September 30, 2012 and 2011:

Three months ended September 30,	2012			2011
Interest income	$	4,065		$	21,406
Interest expense		(16,101	)		(47,622	)
Net interest expense		(12,036	)		(26,216	)
Other income (expenses) - net		111,340			-
	$	(123,376	)	$	(26,216	)

On November 1, 2011, the Company swapped its existing convertible notes outstanding to Series B Preferred Stock.  The Series B Preferred Stock has a stated value of $100 per share and is convertible into our common stock at a conversion price of $0.30 per share representing 15,000,000 shares of common stock. Interest expense in fiscal 2012 is lower as a result of exchanging the convertible debt for Preferred Series B Shares.  On April 29, 2011, GV Global Communications, Inc. (“GV”) provided funding to the Company in the aggregate principal amount of $111,000 (the “Loan”).  On September 25, 2012, the Company and GV entered into a separate conversion agreement pursuant to which the Company agreed to convert the loan into 10,000 shares of Series C Preferred Stock of the Company, which resulted in a loss on settlement of debt in the amount of $111,340 and is reflected in other income (expenses).

18

Nine months ended September 30, 2012 and 2011 Results of Operations:

A comparison of the consolidated statements of operations for the nine months ended September 30, 2012 and 2011 is as follows:

Revenues:

The following table summarizes our revenues for the nine months ended September 30, 2012 and 2011:

Nine months ended September 30,	2012		2011
Total revenues	$	7,106	$	10,616

The Company earned insignificant revenues in both periods.

Operating expenses:

The following table summarizes our operating expenses for the nine months ended September 30, 2012 and 2011:

Nine months ended September 30,	2012		2011
Total operating expenses	$	287,703	$	1,062,834

The Company had significant operating costs (including professional and consulting fees, compensation and travel costs) associated with the Company’s involvement with Triple 8 for the nine months ended September 30, 2011, as compared to the same period in 2012. In addition, the Company recorded lower advertising expense in the first nine months of 2012, and salaries were lower due to the departure of the former CEO.

Other income (expenses):

The following table summarizes our other income (expense) for the nine months ended September 30, 2012 and September 30, 2011:

Nine months ended September 30,	2012			2011
Interest income	$	4,065		$	21,406
Interest expense		(51,521	)		(93,440	)
Net interest expense		(47,456			(72,034	)
Other income (expenses) - net		(11,340	)		-
	$	(58,796	)	$	(72,034	)

On November 1, 2011, the Company swapped its existing convertible notes outstanding to Series B Preferred Stock.  The Series B Preferred Stock has a stated value of $100 per share and is convertible into our common stock at a conversion price of $0.30 per share representing 15,000,000 shares of common stock.  Interest expense in fiscal 2012 is e lower as a result of exchanging the convertible debt for Preferred Series B Shares.  On April 29, 2011, GV provided the Loan to the Company.  On September 25, 2012, the Company and GV entered into a separate Conversion Agreement pursuant to which the Company agreed to convert the Loan into 10,000 shares of Series C Preferred Stock of the Company, which resulted in a loss on settlement of debt in the amount of $111,340. In the second quarter of 2012, we recorded a $100,000 recovery of a previously written off note receivable. We recorded a recovery of allowance for credit losses of $100,000 in the second quarter of 2012 when we received full collection of a $150,000 note that previously had been reserved for.

Liquidity and Capital Resources

Our cash and cash equivalents were $1,920 and $411,656 for the periods ended September 30, 2012 and  December 31, 2011, respectively, a decrease of $409,736.

Cash used by operating activities for the nine months ended September 30, 2012 and 2011 was $(393,602), and $(302,745), respectively. The primary reason for the use of cash in operations was the net loss incurred at September 30, 2012 and 2011; respectively   Additionally, for the nine months ended September 30, 2012, the Company recorded a non cash loss on the settlement of a note payable converted to Series C preferred stock, and reduced its accounts payable and accrued expenses.  For the period ending September 30, 2011, the Company had non- cash issuances of common shares of $362,000 for services, as well as an increase in its accounts payable and accrued expenses.

Cash provided by (used in) investing activities for the nine months ended September 30, 2012 and 2011 was $757,598 and $(150,000), respectively. During the nine months ended September 30, 2012, the Company collected a $150,000 note receivable and $653,926 from the settlement  of the Triple 8 investment, and invested $31,328 in a joint venture in the solar industry. The Company issued a short-term receivable of $15,000 for the nine months ended September 30, 2012.  

Cash (used in) provided by financing activities for the nine months ended September 30, 2012 and 2011 was $(773,732) and $17,816, respectively.  During the nine months ended September 30, 2012, the Company paid $773,732 to reduce the Cordellia note balance. During the first quarter of 2011, the Company received $28,345 in proceeds from the private placement which began in December 2010 and bought back treasury shares in the amount of $10,529.  

19

On February 13, 2012, Direct JV Investments Inc (“Direct JV”), a wholly-owned subsidiary of the Company (“Direct JV”), entered into a Joint Venture Agreement with Vulcan Oil & Gas Inc. (“Vulcan”), whereby the Company will from time to time provide financing to certain Vulcan alternative, green and solar energy projects (the “Projects”) with the goal of sharing in any rebates awarded by the government on any of the Projects.  For all the Projects in the U.S. residential market, profits and losses of each of the Projects will be allocated at the conclusion of each fiscal year at a ratio of 60% to Vulcan and 40% to the Company.  For all other projects, the profit and loss allocation will be determined on a case by case basis.  There is no guarantee that the Projects will generate any revenues. As of September 30, 2012, Direct JV advanced Vulcan $31,328 per the agreements on specific projects.

On September 30, 2012, Vulcan entered into a cooperative joint venture with two other companies to form the entity Project Day4 Marketing (“PD4M”), Vulcan’s share of PD4M’s profits and losses is 40%. Per the joint venture agreement formed between the Company and Vulcan, the Company’s share of Vulcan’s profits and losses is 40%. Therefore, the Company’s share of the profits and losses for PD4M is 16%.

The Company had no income or loss from the joint ventures for the nine months ended September 30, 2012.

Vulcan, in connection with its solar activities, imported from Canada approximately 50KW of solar panels (“Basis Inventory”) during the third quarter of 2012. Vulcan intends to commence marketing the Basis Inventory through cooperative agreement with third parties, with which the Company is not affiliated, and its own operation, in order to penetrate the Los Angeles market. Vulcan estimates that its cost for penetrating the market will be approximately $135,000 per month, and its costs consist of a small direct sales force, promotional expense, and overhead expenses.

The Company intends to invest approximately $242,000 by the end of the year in Vulcan to partially offset Vulcan’s expenses incurred in penetrating the Los Angeles market. The Company may invest up to $750,000 more in the Joint Venture in the next 12 months, depending on how quickly revenues ramp up. The subsequent investment may be a combination of cash and securities, and will be determined taking into account market conditions at the time that the investment is made.

Our future capital requirements and the adequacy of available funds will depend on numerous factors, including the successful commercialization of our products, competing technological and market developments, and the development of strategic alliances for the development and marketing of our products.  Our Company must obtain additional funds through equity or debt financing, strategic alliances with corporate partners and others, or through other sources.  There is no guarantee that these sources would be available at all or available on acceptable terms.

We expect to use the proceeds to fund our short-term capital requirements including paying administrative expenses associated with maintaining our public company’s filings for the next 12 months.    In order to implement our business plan and pay various administrative expenses on a minimal basis for 12 months, we expect that we will need approximately $50,000 per month, minimum.   We expect to be able to remain in operation for a period of 12 months with cash on hand and/or cash from collecting receivables and/or other debts. We also expect to receive monthly collections from our settlement agreement with Triple 8 to support our operations for the remainder 2012.  The Company expects that its operating results will fluctuate significantly from quarter to quarter in the future and will depend on a number of factors including the state of the worldwide economy and financial markets, which are outside the Company's control.

The investment in Vulcan is expected to generate profit and loss activity in 2013, which may partially offset our need to raise funds to generate operating capital. Our investment in Vulcan will be offset by extending the maturity of the Glendon and Rasel notes payable. As of September 30, 2012, we cannot guarantee our ability to be able to extend the maturity of those notes at yearend.

Debt Financing Arrangements

Rasel, LTD -

On October 6, 2009 the Company signed a Note Payable for $25,000 payable to Rasel due on October 6, 2010 at 4% per annum.   The proceeds were used to pay for half of an existing Accounts Payable for legal fees incurred at the Company’s inception. On October 20, 2009 the Company signed a Note Payable for $50,000 payable to Rasel due on October 20, 2010 at 4% per annum.  These proceeds were used to pay for startup costs, audit fees and future expenses. On January 22, 2010 the Company signed a Note Payable for $50,000 payable to Rasel due on October 30, 2011 at 4% per annum.  These proceeds will be used for working capital and future expenses. On January 22, 2010 the Company signed an amendment to extend the maturity date of the Promissory Notes in the amount of $50,000 and $25,000 dated October 6, 2009 and October 20, 2009, respectively, to October 30, 2011. On March 2, 2011 the Company and Rasel agreed to extend the maturity of all notes to December 31, 2012 in consideration of adding a conversion feature to said note with either a 5% discount to the market price or a fixed price of $0.60. The extension of maturity was agreed to be effective as of December 30, 2010.

The balance of the Rasel notes including accrued interest as of September 30, 2012 is $139,301.

20

Glendon Note Payable

On September 30, 2012, the Company converted a payable in the amount of $155,241 to a note payable. This note bears annual interest at 10%, and matures on December 31, 2012.

Cordellia d.o.o.:

In order to expedite the closing of the Triple 8 Annulment, the Company, A.P. Holdings (“APH")  H.A.M. Group Limited (“HAM“) and Cordellia d.o.o., a Croatian company ("CDOO"), third party which is not affiliated with the Company, entered into a Settlement and Foreclosure Agreement (the "Settlement Agreement"), whereby the Company provided CDOO, as the assignee of HAM and APH, with the ability to foreclose on all shares of Triple 8 held by the Company in consideration of the termination of the APH Note and the HAM Note, which were in default, and the issuance of a new promissory note in the name of CDOO in the principal amount of $1,000,000 (the "CDOO Note"). The CDOO note bears interest at the rate of ten percent (10%) per annum and is due and payable in full on November 30, 2012. In the event that Triple 8 fails to make the Triple Payments, then the amount payable under the CDOO Note shall be reduced by half of the amount of the missed payment.

The balance of the CDOO note including accrued interest as of September 30, 2012 is $279,123.

ATL Note:

On July 8, 2010, the Company issued a Convertible Promissory Note to a third party - ATL in aggregate principal amounts of $500,000 (the “Forex Note”).  In consideration for the Company issuing the ATL Note, ATL issued the Company a Secured and Collateralized Promissory Note in the principle amount of $400,000 (the “ATL Note”). The Forex Note bears interest at 10%, matures two years from the date of issuance and is convertible into our common stock, at ATL’s option, at a conversion price of $0.20 subject to adjustment.  On the 21st trading day following each conversion, the number of shares of common stock issuable to ATL pursuant to the Forex Note shall be adjusted such that the aggregate number of shares of common stock issuable to ATL is equal to the amount converted divided by 75% of the average of the three lowest closing bid prices during the 20 trading days following delivery of the shares of common stock upon the initial conversion.  Concurrent with the conversion of the Forex Note, ATL must make a payment to the Company reducing a pro rata amount owed to the Company under the ATL Note.

On November 1, 2011, the Company and the ATL Indebted Parties entered into a Settlement Agreement (the "Agreement") whereby without admitting any wrongdoing on either part, the parties thereby settled all previous agreements and resolved any existing disputes. Under the terms of the Agreement, the Company agreed to issue the Indebted Parties 45,000 shares of Series B Preferred Stock of the Company on a pro-rata basis, and the Undelivered Shares were returned to the treasury of the Company. The Series B Preferred Stock has a stated value of $100 per share and is convertible into our common stock at a conversion price of $0.30 per share representing 15,000,000 common shares. Furthermore, the Series B Preferred Stock votes on an as converted basis and carries standard anti-dilution rights.

Dividends

The Company has not yet adopted any policy regarding payment of dividends.  No dividends have been paid or declared since the Date of Inception.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a Smaller Reporting Company, the Company is not required to include the disclosure under this Item.

 ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended.  Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were not effective as of the end of the applicable period to ensure that the information required to be disclosed by the Company in reports that it files or submits under the Exchange Act (i) is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and (ii) is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

As a smaller reporting company, without material revenues, the Company does not have the resources to install a dedicated staff with deep expertise in all facets of SEC disclosure and U.S. GAAP compliance. As is the case with many smaller reporting companies, the Company will continue to work with its external auditors and attorneys as it relates to new accounting principles and changes to SEC disclosure requirements. The Company has found that this approach worked well in the past and believes it to be the most cost effective solution available for the foreseeable future.  The Company will conduct a review of existing sign-off and review procedures as well as document control protocols for critical accounting spreadsheets. The Company will also increase management's review of key financial documents and records.

21

As a small business, the Company does not have the resources to fund sufficient staff to ensure a complete segregation of responsibilities within the accounting function. However, Company management does review, and will increase the review of, financial statements on a monthly basis, and the Company's external auditor conducts reviews on a quarterly basis. These actions, in addition to the improvements identified above, will minimize any risk of a potential material misstatement occurring.

Changes in Internal Control over Financial Reporting

Other than as set forth above, there were no changes in the Company’s internal controls over financial reporting during the fiscal period ended September 30, 2012 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

 From time to time, the Company may be involved in various litigation matters, which arise in the ordinary course of business.   There is currently no litigation that management believes will have a material impact on the financial position of the Company.

On or about June 13, 2011 the Company initiated a complaint against an individual and website for defamation, intentional interference with prospective economic advantage, negligent and violations of business and professions code. The Complaint was filled with the Superior Court of the State of California - County of San Diego.   On August 22, 2011, the defendants filed a notice of motion to strike the complaint under the anti-slapp statute. On September 14, 2011, the Company submitted a request for dismissal, without prejudice to the court.

On January 20, 2012 the court heard the defendant’s motion (the Company failed to appear) and the judge ruled in favor of the defendant as a default judgment and awarded attorney fees and court costs in the amount of $21,462.  The Company filed a motion to vacate the judgment and the motion was vacated.

On or around September 14, 2012, the judged awarded the defendant $12,000 in fees. The Company believes it is owed approximately the same amount by buying  the interest in a different lawsuit which  involved the same defendant. In that lawsuit, the rights to attorney fees and costs were awarded to the Company. The Company believes that the amounts due them from that particular lawsuit approximately equals the amount that it ows to satisfy the judgement against them.

Other than the above, we are currently unaware of any such additional legal proceedings or claims that we believe will have, individually or in the aggregate, a material adverse affect on our business, financial condition or operating results.

ITEM 1A. RISK FACTORS.

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

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

Recent Issuances of Unregistered Securities

The Company has not sold securities during the quarter ended September 30, 2012 that were not registered under the Securities Act of 1933, as amended.

Repurchase of Equity Securities by the Issuer

On April 25, 2011, the Company issued a press release announcing that its Board of Directors approved a share repurchase program.  Under the program, the Company is authorized to purchase up to 1,000,000 of its shares of common stock in open market transactions at the discretion of management.  All stock repurchases will be subject to the requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended and other rules that govern such purchases.  As of September 30, 2012 and as of December 31, 2011, the Company repurchased 38,000 of its common shares in the open market, which were returned to treasury.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  MINE SAFETY DISCLOSURES

Not Applicable.

22

ITEM 5.  OTHER INFORMATION

 None.

ITEM 6. EXHIBITS

Exhibit No.	Description
3.1	Certificate of Incorporation of Forex International Trading Corp. (6)
3.2	Bylaws of Forex International Trading Corp. (6)
3.3	Certificate of Designation for Series A Preferred Stock (14)
3.4	Certificate of Designation for Series B Preferred Stock (21)
3.5	Certificate of Designation – Series C Preferred Stock (22)
3.6	Amendment to the Certificate of Designation for the Series B Preferred Stock
3.7	Amendment to the Certificate of Designation for the Series C Preferred Stock
4.1	Convertible Promissory Note issued by the Company to ATL dated July 8, 2010 (3)
4.2	Secured and Collateralized Promissory Note issued by ATL to the Company dated July 8, 2010 (3)
4.3	Collateral and Security Agreement by and between Forex International Trading Group and ATL dated July 7, 2010 (3)
4.4	Promissory Note issued to Rasel Ltd. Dated October 6, 2009(7)
4.5	Promissory Note issued to Rasel Ltd. Dated October 20, 2009 (7)
4.6	Letter Agreement between Rasel Ltd. and Forex International Trading Corp. dated January 22, 2011 (8)
4.7	Letter Agreement by and between Forex International Trading Group and ATL dated November 8, 2010(9)
4.8	6% Convertible Note issued to APH (11)
4.9	6% Convertible Debenture issued to HAM  dated April 5, 2011 (14)
4.10	Promissory Note dated November 30, 2011 issued to Cordellia d.o.o. in the amount of $1,000,000 (18)
10.1	Software Licensing Agreement dated April 12, 2010, by and between Forex International Trading Corp and Triple (1)
10.2	Employment Agreement dated April 23, 2010, by and between Forex International Trading Corp and Darren Dunckel (2)
10.3	Letter Agreement by and between Forex International Trading Corp. and Anita Atias, dated July 29, 2010 (4)
10.4	Letter Agreement by and between Forex International Trading Corp. and Stewart Reich, dated July 29, 2010 (4)
10.5	Letter Agreement by and between Forex International Trading Corp. and Mr. William Glass, dated August 6, 2010 (5)
10.6	Share Exchange Agreement by and between Forex International Trading Corp. and APH (10)
10.7	Letter Agreement by and between Forex International Trading Corp., APH, Medirad Inc. and Rasel Ltd. (11)
10.8	Letter Amendment by and between Forex International Trading Corp. and William Glass, dated March 4, 2011 (13)
10.9	Letter Amendment by and between Forex International Trading Corp. and Stewart Reich, dated March 4, 2011 (13)
10.10	Employment Agreement by and between Forex International Trading Corp. and Liat Franco, dated March 7, 2011 (13)
10.11	Agreement between Forex International Trading Corp. and APH dated April 5, 2011 (14)
10.12	Conversion Agreement between MP and Forex International Trading Corp. dated April 5, 2011 (14)
10.13	Share Exchange Agreement between Forex International Trading Corp. and dated April 5, 2011 (14)
10.14	Agreement to Unwind and Mutual Release dated as of July 11, 2011 by and between Forex International Trading Corp., Forex NYC and Wheatley Investment Agreement by and between Forex International Trading Corp. and Centurion Private Equity, LLC dated June 27, 2011 (16)
10.15	Registration Rights Agreement with Centurion by and between Forex International Trading Corp. and Centurion Private Equity, LLC dated June 27, 2011 (16)
10.16	Intentionally Left Blank
10.17	Settlement Agreement by and between Forex International Trading Corp., A.T. Limited, Watford Holding Inc. and James Bay Holdings, Inc. dated November 1, 2011 (17)
10.18	Settlement and Foreclosure Agreement between Forex International Trading Corp., AP Holdings Limited, H.A.M Group Limited and Cordellia d.o.o.(18)
10.19	Annulment of Share Purchase Agreement dated December 5, 2011 between Triple 8 Limited, AP Holdings Limited, H.A.M Group Limited and 888 Markets (Jersey) Limited (18)
10.20	Promissory Note issued to Forex International Trading Corp. dated December 13, 2011 (19)
10.21	Stock Pledge Agreement executed by Fortune Market Media Inc. dated December 13, 2011 (19)
10.22	Conversion Agreement between the Company and GV Global Communications, Inc. (22)
21.1	List of Subsidiaries (20)
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase

(1)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on April 20, 2010

(2)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on April 28, 2010

(3)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on July 13, 2010

(4)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on August 3, 2010

(5)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on August 9, 2010

(6)   Incorporated by reference to the Form S-1 Registration Statement filed with the SEC on September 9, 2009.

(7)   Incorporated by reference to the Form S-1 Registration Statement filed with the SEC on November 2, 2009.

(8)   Incorporated by reference to the Form S-1 Registration Statement filed with the SEC on January 29, 2010.

(9)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on December 22, 2010

(10)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on November 17, 2010

(11)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on January 3, 2011

(12)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on February 2, 2011

(13)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on March 9, 2011

(14)   Incorporated by reference to the Form 10-K Annual Report filed with the Securities and Exchange Commission on April 6, 2011

(15)   Incorporated by reference to the Form 10-Q Quarterly Report filed with the Securities and Exchange Commission on May 20, 2011

(16)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on June 29, 2011

(17)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on November 9, 2011

(18)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on December 12, 2011

(19)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on December 16, 2011

(20)   Incorporated by referenced to the Form 10-K Annual Report filed with the Securities and Exchange Commission on April 13, 2012

(21)   Incorporated by reference to the Form 10-Q Quarterly Report filed with the Securities and Exchange Commission on May 14, 2012

(22)   Incorporated by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission on September 27, 2012.

23

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, there unto duly authorized.

	FOREX INTERNATIONAL TRADING CORP. (Registrant)
Date: November 20, 2012	By:	/s/ Robert Morris Price
		Robert Morris Price
		Chief Executive Officer, President,
		Treasurer and Director
		(Principal Executive
		Officer)
	By:	/s/ Erik Klinger
		Erik Klinger
		Chief Financial Officer and Director
		(Principal Financial Accounting and
		Financial Officer)

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

SIGNATURE	NAME	TITLE	DATE
/s/Robert Morris Price	Robert Morris Price	Director, CEO, President and Treasurer	November 20, 2012
/s/ Erik Klinger	Erik Klinger	Director and CFO	November 20, 2012

24

EX-3.6

Exhibit 3.6

USE BLACK INK ONLY - DO NOT HIGHLIGHT  ABOVE SPACE IS FOR OFFICE USE ONLY

Certificate of Amendment to Certificate of Designation

For Nevada Profit Corporations

(Pursuant to NRS 78.1955 - After Issuance of Class or Series)

1. Name of corporation:

Forex International Trading Corp.

2.Stockholder approval pursuant to statute has been obtained.

3.The class or series of stock being amended:

Series BPreferred Stock

4.By a resolution adopted by the board of directors, the certificate of designation is being amended as follows or the new class or series is:

Section 5(b)(ii) of the Certificate of Designation shall be amended and restated as follows: if the ,Corporation, at any time while the Preferred Stock is outstanding: (A) shall pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock, (B) subdivide outstanding shares of Common Stock into a larger number of shares, (C) combine (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (D) issue by reclassification of shares of the Common Stock any shares of capital stock of the Corporation, then the Set Price (see Exhibit A)

5.Effective date of filing: (optional)    November 8, 2012

(must not be later than 90 days after the certificate is filed)

6. Signature: (required)

Signature of Officer

Filing Fee: $175.00

IMPORTANT: Failure to include any of the above information and submit with the proper fees may cause this filing to be rejected.

	Nevada Secretary of State NRS Amend Designation - After
This form must be accompanied by appropriate fees.	Revised: 3-6-09

Exhibit A

shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding before such event and of which the denominator shall be the number of shares of Common Stock outstanding after such event. Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification.

EX-3.7

Exhibit 3.7

USE BLACK INK ONLY - DO NOT HIGHLIGHT ABOVE SPACE IS FOR OFFICE USE ONLY

Certificate of Amendment to Certificate of Designation

For Nevada Profit Corporations

(Pursuant to NRS 78.1955 - After Issuance of Class or Series)

1.Name of corporation:

Forex International Trading Corp.

2.Stockholder approval pursuant to statute has been obtained.

3. The class or series of stock being amended:

Series C Preferred Stock

4.By a resolution adopted by the board of directors, the certificate of designation is being amended as follows or the new class or series is:

The first sentence of Section 5(b) shall be amended and restated as follows: The conversion price for each share (the "Conversion Price") shall be equal to the Variable Conversion Price (as defined herein), which in no event may be lower than $0.001.

 5.Effective date of filing: (optional) Novemeber 8, 2012  

(must not be later than 90 days after the certificate is filed)

6. Signature: (required)

Signature of Officer

Filing Fee: $175.00

IMPORTANT: Failure to include any of the above information and submit with the proper fees may cause this filing to be rejected.

This form must be accompanied by appropriate fees. Nevada Secretary of State NRS Amend Designation - After Revised: 36-09

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Robert Morris Price, Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Forex International Trading Corp.;

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

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

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

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

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

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

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal annual period that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

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

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

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

Date: November 20, 2012	/s/ Robert Morris Price
	Robert Morris Price,
	Director, CEO, President and Treasurer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Erik Klinger, Chief Financial Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Forex International Trading Corp.;

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

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

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

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

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

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

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal annual period that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

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

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

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

Date: November 20, 2012	/s/ Erik Klinger
	Erik Klinger,
	Chief Financial Officer and Director (Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly report of Forex International Trading Corp. (the "Company") on Form 10-Q for the  period ending September 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Erik Klinger, Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

Date: November 20, 2012	/s/ Robert Morris Price
	Robert Morris Price,
	Director, CEO, President and Treasurer (Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly report of Forex International Trading Corp. (the "Company") on Form 10-Q for the  period ending September 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Erik Klinger, Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

Date: November 20, 2012	/s/ Erik Klinger
	Erik Klinger,
	Chief Financial Officer and Director (Principal Financial and Accounting Officer)

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Notes Payable - Summary (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Notes Payable	$ 573,666	$ 1,142,492
Rasel notes payable and accrued interest
Debt Instrument [Line Items]
Notes Payable	139,301	135,548
Glendon note payable
Debt Instrument [Line Items]
Notes Payable	155,242
Cordelia note payable and accrued interest
Debt Instrument [Line Items]
Notes Payable	$ 279,123	$ 1,006,944

XML

Per Share Information (Details Textuals) (USD $)	9 Months Ended							9 Months Ended
	Sep. 30, 2012		Sep. 30, 2011		Sep. 30, 2012 Converted common stock	Sep. 30, 2012 Series B Preferred stock	Dec. 31, 2011 Series B Preferred stock	Sep. 30, 2012 Convertible Notes Payable	Sep. 30, 2012 Series C Preferred Stock	Sep. 26, 2012 Series C Preferred Stock	Sep. 25, 2012 Series C Preferred Stock	Dec. 31, 2011 Series C Preferred Stock	Sep. 30, 2012 Convertible series c preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive common stock equivalents outstanding	26,232,169	[1]	11,005,071	[1]
Potentially dilutive common stock arises						45,000
Issuance of shares or note convertible into shares						15,000,000		230,068
Issuance of preferred shares						45,000	45,000		10,000			0
Preferred stock, par value (in dollars per share)						$ 0.00001	$ 0.00001		$ 0.00001	$ 0.00001	$ 11.00	$ 0.00001	$ 100
Number of preference shares converted in to common stock					11,000,000
Restriction on percentage of common stock	More than 4.99%								Does not exceed 4.9%

[1] Restated

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Related Parties (Details Textuals) (USD $)		1 Months Ended		0 Months Ended				9 Months Ended
	Sep. 30, 2012	Jan. 18, 2011 Mrs. Liat Franco	Dec. 31, 2011 Mrs. Liat Franco	Jan. 02, 2012 Erik Klinger	Dec. 31, 2011 Erik Klinger	Mar. 31, 2012 Former CEO	Dec. 31, 2011 Former CEO	Sep. 30, 2012 Robert Morris Price
Related Party Transaction [Line Items]
Number of shares issued		15,000
Common stock value		$ 6,000
Service fees				3,500
Amount owed to stockholders			50,000			2,409	17,409
Amount owed to company owned Mr. Klinger					6,500
Accrued directors' fees to Ms. Franco	15,321
Accrued directors' fees to Mr. Glass	15,321
Accrued directors' fees to Mr. Reich	4,159
Minimum threshold limit of direct or indirect material interest in transaction								$ 120,000

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Notes and Short-term Receivables (Details Textuals 2) (USD $)	3 Months Ended	9 Months Ended		0 Months Ended	9 Months Ended		0 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2011	Feb. 13, 2012 Fortune Market Media Inc.	Sep. 30, 2012 Fortune Market Media Inc.	Dec. 31, 2011 Fortune Market Media Inc.	Aug. 13, 2012 Note receivable - Apel Design	Sep. 30, 2012 Note receivable - Apel Design
Accounts, Notes, Loans and Financing Receivable [Line Items]
Original principal amount of note receivable				$ 150,000			$ 15,000
Interest Rate				12.00%			12.00%
Allowance for credit losses short term receivable (in dollars)	0	0	100,000			100,000
Recovery of allowance for credit losses	(111,340)	100,000			100,000
Total notes and short-term receivables	$ 631,198	$ 631,198	$ 1,319,900					$ 16,124

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Notes Payable (Tables)

9 Months Ended

Sep. 30, 2012

Notes Payable [Abstract]

Schedule of notes payable and accrued interest

	2012		2011
Rasel notes payable and accrued interest	$	139,301	$	135,548
Glendon note payable		155,242		-
Cordelia note payable and accrued interest		279,123		1,006,944
	$	573,666	$	1,142,492

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Stockholders' Equity (Details Textuals) (USD $)	Sep. 30, 2012	Sep. 26, 2012	Sep. 25, 2012	Dec. 31, 2011
Class of Stock [Line Items]
Common Stock, shares authorized	400,000,000			400,000,000
Common Stock, par value (in dollars per share)	$ 0.00001			$ 0.00001
Series B Preferred stock
Class of Stock [Line Items]
Preferred Stock, shares authorized	20,000,000			20,000,000
Preferred stock, par value (in dollars per share)	$ 0.00001			$ 0.00001
Series C Preferred Stock
Class of Stock [Line Items]
Preferred Stock, shares authorized	10,000	10,000		10,000
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001	$ 11.00	$ 0.00001

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Other Assets (Details Textuals) (USD $)	1 Months Ended	9 Months Ended
	Apr. 19, 2012	Sep. 30, 2012	Sep. 30, 2011		Apr. 19, 2010
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Cost of creating websites					$ 105,359
Capitalized cost of creating websites					105,359
Amortization period	2 years
Amortization expense		$ 17,560	$ 39,510	[1]

[1] Restated

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Contingencies (Details Textuals) (USD $)	0 Months Ended
	Sep. 14, 2012	Jan. 20, 2012
Loss Contingency [Abstract]
Attorney fees and court costs		$ 21,462
Defendant fees	$ 12,000

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.      Summary of Significant Accounting Policies

Presentation and Basis of Financial Statements

The accompanying unaudited condensed consolidated financial statements include the accounts of Forex International Trading Corp. and its consolidated subsidiaries (“Forex” or the Company”) and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and reports and with the instructions to  Form 10-Q and Rule 10-01 of  Regulation S-X. Accordingly, they do not include all, or include a condensed version of, the information and footnotes required by U.S. GAAP for complete financial statements. The Company believes, however, that the disclosures are adequate to make the information presented not misleading. The Company’s condensed consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for the fair presentation of the consolidated financial position and the consolidated results of operations of the Company for the periods shown. Results shown for the interim periods are not necessarily indicative of the results to be obtained for a full fiscal year or for any future period. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates, judgments and assumptions that affect the amounts reported in the condensed financial statements. Actual results might differ from management’s estimates.

The consolidated balance sheet information as of December 31, 2011 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with Securities and Exchange Commission (“SEC”) for the fiscal year ended December 31, 2011. These interim condensed consolidated financial statements should be read in conjunction with the Company’s most recently audited financial statements and in the above referenced Annual Report on Form 10-K.

All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods.  Significant estimates include the useful lives of tangible and intangible assets, depreciation and amortization, allowances for doubtful accounts and loan losses, valuation of common and preferred stock issuances, and the valuation allowance on deferred tax assets.  Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid financial instruments purchased with an original maturity of three months or less to be cash equivalents.

Notes and Short-Term Receivable

The note and short-term receivable are carried at cost, which approximates fair value.  The Company measures the impairment of loans based on its historical loan collection experience and existing economic conditions.  Impairment is recognized when management believes it is probable that payments will not be received on some portion of the loan, which is determined on an individual loan basis.  The Company evaluates loans for impairment on an annual basis or when there are indications that the loan may not be collected.  When management determines that a loan is impaired it is placed on non-accrual status, and an allowance for loan losses is established to recognize the estimated amount of impairment.  Payments received on non-accrual loans are generally applied to the outstanding principal balance.  Loans are removed from non-accrual status when management believes that the borrower will resume making the payments required by the loan agreement.

Property and Equipment

Property and equipment are stated at cost and the related depreciation is computed using the straight-line method over the estimated useful lives of the respective assets.  Expenditures for repairs and maintenance are charged to operations as incurred.  Renewals and betterments are capitalized.  Upon the sale or retirement of an asset, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is recognized in the results of operations.

Leasehold improvements are amortized over the lesser of the estimated life of the asset or the lease term.

As required by U.S. GAAP for long-lived assets, the Company evaluates the fair value of its property and equipment on an annual basis or whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.  Any impairment of value is recognized when the carrying amount of the asset exceeds its fair value.  There were no impairment losses for the three and nine months ended September 30, 2012 and 2011.

Treasury Stock

Treasury stock is recorded at cost.  The re-issuance of treasury shares is accounted for on a first in, first-out basis and any difference between the cost of treasury shares and the re-issuance proceeds are charged or credited to additional paid-in capital.

Income Taxes

The Company accounts for income taxes using the liability method, which provides for an asset and liability approach to accounting for income taxes.  Under this method, deferred tax assets and liabilities are recorded for future tax effects of temporary differences between the financial reporting and tax basis of assets and liabilities, and measured using the current tax rates and laws that are expected to be in effect when the underlying assets or liabilities are anticipated to be recovered or settled.  Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount of tax benefits expected to be realized.

U.S. GAAP requires that, in applying the liability method, the financial statement effects of an uncertain tax position be recognized based on the outcome that is more likely than not to occur.  Under this criterion the most likely resolution of an uncertain tax position should be analyzed based on technical merits and on the outcome that would likely be sustained under examination.  The Company had no uncertain tax positions as of September 30, 2012, and is current in its tax filings...

Revenue Recognition

Income from foreign currency operations is earned by referring potential customers to foreign exchange trading companies.  Foreign exchange trading companies remit a percentage of their revenues to the Company in exchange for customer leads, which the Company recognizes when the exchange trading occurs.

The Company recognizes consulting fees when services have been rendered.

Share-Based Compensation

The Company calculates stock-based compensation expense including compensation expense for all share-based payment awards made to employees and directors including employee stock options, stock appreciation rights and restricted stock awards based on their estimated grant date fair values.  The value of the portion of the award that is ultimately expected to vest is recognized as an expense on a straight-line basis over any required service period.  No such expenses were recognized for the three and nine months ended September 30, 2012 and 2011.  

Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period.  Diluted earnings (loss) per share considers the potential dilution that could occur if securities or other contracts to issue common stock were exercised or could otherwise cause the issuance of common stock, such as options, convertible notes and convertible preferred stock, were exercised or converted into common stock or could otherwise cause the issuance of common stock that then shared in earnings (loss).  Such potential additional common shares are included in the computation of diluted earnings per share.  Diluted loss per share has  not been computed for the three and nine months ended September 30, 2012 and 2011 because any potential additional common shares would reduce the reported loss per share and therefore have an antidilutive effect.

Going Concern

The accompanying financial statements have been prepared assuming the Company will continue as a going concern.  The future of the Company is dependent upon its ability to raise equity and debt financing, generate revenues and upon future profitable operations from the development of new business opportunities.  The financial statements do not include any adjustments relating to the recoverability of the Company’s assets or the payment of its liabilities in the event the Company cannot continue in existence.

Reclassifications

Certain reclassifications have been made to the prior years’ consolidated condensed financial statements to conform to the current year’s presentation.

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Stockholders' Equity (Details Textuals 1) (USD $)	0 Months Ended	1 Months Ended
	Apr. 05, 2011 Shareholder	Jan. 17, 2011 Core Consulting Group	Jan. 27, 2011 AT Limited	Mar. 28, 2011 Consultant	Jun. 29, 2011 Centurion Private Equity, LLC
Number of restricted shares issued		700,000		10,000	1,214,224
Consulting fees		$ 210,000		$ 2,000
Shares issued to pay expenses			324,234
Expenses			71,736
6% Convertible note payable	$ 200,000
Number of shares of common stock, issued to shareholder	2,500,000
Number of shares issued representing fees incurred by Centurion in connection with the investment agreement					86,730
Percentage of the volume-weighted average price of common stock					100.00%
Number of trading days					5 days

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Acquisition and Divestiture/Restatements (Details Textuals 1) (USD $)	0 Months Ended	9 Months Ended
	Dec. 07, 2011	Sep. 30, 2012	Sep. 30, 2011
Business Combinations [Abstract]
Amount payable		$ 2,001,000
Threshold limit for the payments		60 days
Original number of common shares purchased		17,924
Amount of promissory note issued		1,000,000
Interest rate on promissory note		10.00%
Initial Payment	732,000	732,000
Aggregate amount of payments received		653,926
Maximum ownership percentage		50.00%
Value of shares issued for services			$ 360,000

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Acquisition and Divestiture/Restatements (Details Textuals) (USD $)	9 Months Ended			9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011	Sep. 30, 2011 Triple 8 Limited	Nov. 17, 2010 Triple 8 Limited Ap Holdings Limited	Nov. 17, 2010 Triple 8 Limited H Am Group Limited
Business Acquisition [Line Items]
Acquired common shares					17,924	1,996
Issued and outstanding shares					44.90%
Common Stock, shares issued	34,248,585		34,248,585		25,000,000
Note payable, principal amount					$ 1,200,000
Interest rate APH Note					6.00%
Common stock convertible amount					6,000,000
Number of shares surrender by the shareholders					70,000,000
Issued and outstanding common shares						5.00%
Company's ownership increased						49.90%
Preferred Stock, shares issued						12,000
Interest rate Percentage convertible debenture						6.00%
Amount of convertible debenture						$ 600,000
Preferred Stock, par value (in dollars per share)						$ 100
Conversion price						$ 0.30
Number of shares of common stock						4,000,000
Percentage of additional investment				5.00%
Percentage of additional Series A shares issued to fund acquisition				5.00%
Percentage of additional note payable issued to fund acquisition				5.00%
Percentage of acquisition of additional interest	5.00%	5.00%		5.00%
Percentage of additional in private company	5.00%	5.00%		5.00%

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Stockholders' Equity (Details Textuals 2) (USD $)	1 Months Ended	9 Months Ended
	Dec. 31, 2011 Treasury Stock	Sep. 30, 2012 Treasury Stock	Apr. 25, 2011 Treasury Stock	Nov. 01, 2011 Series B Preferred stock	Sep. 30, 2012 Series A Preferred stock
Class of Stock [Line Items]
Number of shares authorized to purchase			1,000,000
Number of shares repurchased	38,000	38,000
Number of shares of Series B Preferred Stock issued on a pro-rata basis				45,000
Preferred Stock, par value (in dollars per share)				$ 100	$ 100
Conversion price (in dollars per share)				$ 0.30	$ 0.30
Number of shares converted				15,000,000	4,000,000

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Notes and Short-term Receivables - Summary (Details) (USD $)	Sep. 30, 2012		Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes and short-term receivables	$ 631,198		$ 1,319,900
Note receivable for annulment of Triple 8 investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes and short-term receivables	615,074	[1]	1,269,000	[1]
Commercial note receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes and short-term receivables		[2]	50,900	[2]
Note receivable - Apel Design
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes and short-term receivables	$ 16,124	[3]		[3]

[1] In connection with the Triple 8 annulment agreement, the Company has a short term receivable of $1,269,000 which requires monthly payments of $68,914 in January 2012, $73,214 per month from February 2012 through October 2012, and a final payment of $541,860 in November 2012. This receivable bears no interest and is the remaining portion, after the initial payment of $732,000, of the total $2,001,000 that Triple 8 agreed to pay the Company under the annulment of the share purchase agreements. For the nine months ended September 30, 2012 the Company has received payments amounting to $653,926.

[2] Note receivable from Fortune Market Media Inc. ("FTMK"), original principal of $150,000, interest at a 12% annual rate, maturing on February 13, 2012. FTMK had defaulted on the loan and the Company had established a reserve for loan losses of $100,000 at December 31, 2011. During the nine months ended September 30, 2012 the Company collected the entire amount of the original receivable plus accrued interest. At September 30, 2012 the Company has reflected the reversal of the $100,000 allowance for credit losses that had been established as other income in the accompanying financial statements.

[3] Note receivable from Amit Apel Design, Inc. ("Apel Design") original principal of $15,000, interest at a 12% annual rate, maturing on August 13, 2012. Subsequently, the parties agreed to extend the maturity of the note to December 31, 2012. The note is secured by Apel Design's inventory. As of September 30, 2012, the amount owed the Company by Apel including accrued interest is $16,124.

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Notes and Short-term Receivables (Details Textuals) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance on Commercial note receivable	$ 0	$ 100,000
Commercial note receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance on Commercial note receivable		$ 100,000

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Organization and Nature of Business

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Organization and Nature of Business

1.      Organization and Nature of Business

Forex International Trading Corp. (the “Company”) was incorporated on July 22, 2009 under the laws of the State of Nevada and is headquartered in Kensington, Maryland.  On September 9, 2009 the Company filed Form S-1 Registration Statement to provide for the registration of securities under the Securities Act of 1933.  The Company’s principal business activities have been to engage in foreign currency market trading for non-US resident professionals and retail clients over its web-based trading systems.  In addition, the Company is analyzing investments in joint ventures and is selectively pursuing acquisitions.

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Notes and Short-term Receivables (Details Textuals 1) (USD $)	1 Months Ended	9 Months Ended
	Jan. 31, 2012	Sep. 30, 2012		Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes and short-term receivables		$ 631,198		$ 1,319,900
Note receivable for annulment of Triple 8 investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes and short-term receivables		615,074	[1]	1,269,000	[1]
Monthly payment of short term receivable	68,914	73,214
Initial payment of note receivables		732,000
Final payment of note receivables		541,860
Total payment of note receivables		2,001,000
Note receivable payment received		$ 653,926

[1] In connection with the Triple 8 annulment agreement, the Company has a short term receivable of $1,269,000 which requires monthly payments of $68,914 in January 2012, $73,214 per month from February 2012 through October 2012, and a final payment of $541,860 in November 2012. This receivable bears no interest and is the remaining portion, after the initial payment of $732,000, of the total $2,001,000 that Triple 8 agreed to pay the Company under the annulment of the share purchase agreements. For the nine months ended September 30, 2012 the Company has received payments amounting to $653,926.

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Notes Payable (Details Textuals) (USD $)	1 Months Ended
	Jan. 22, 2010	Sep. 30, 2012	Dec. 31, 2011	Mar. 02, 2011	Oct. 20, 2009	Oct. 06, 2009
Debt Instrument [Line Items]
Notes Payable		$ 573,666	$ 1,142,492
Rasel notes payable and accrued interest
Debt Instrument [Line Items]
Note payable, principal amount	50,000				50,000	25,000
Interest Rate	4.00%				4.00%	4.00%
Maturity date of the promissory notes extended	$25,000 and $50,000 dated October 6, 2009 and October 20, 2009, respectively, to October 30, 2011
Conversion feature note discount				5.00%
Conversion feature note fixed price				0.60
Notes Payable		139,301	135,548
Accrued interest		$ 14,301	$ 10,548

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 1,920	$ 411,656
Note and short term receivables, net of allowance for credit losses of $0 and $100,000 as of September 30, 2012 and December 31, 2011	631,198	1,319,900
Accounts receivable and prepaid expenses	23,405	10,655
Total current assets	656,523	1,742,211
Property and equipment, net	9,798	13,944
Other assets	31,328	17,560
Total assets	697,649	1,773,715
Current liabilities:
Accounts payable and accrued expenses	110,829	501,016
Notes payable and accrued interest	573,666	1,142,492
Total current liabilities	684,495	1,643,508
Total liabilities	684,495	1,643,508
Contingencies
Stockholders' equity:
Common stock - $0.00001 par value, 400,000,000 shares authorized; 34,248,585 issued and outstanding as of September 30, 2012 and December 31, 2011	343	343
Treasury stock, at cost; 38,000 shares as of September 30, 2012 and December 31, 2011	(11,059)	(11,059)
Additional paid-in capital	1,594,673	1,372,333
Accumulated deficit	(1,570,803)	(1,231,410)
Total stockholders' equity	13,154	130,207
Total liabilities and stockholders' equity	697,649	1,773,715
Series B Preferred stock
Stockholders' equity:
Preferred Stock, Value
Series C Preferred Stock
Stockholders' equity:
Preferred Stock, Value

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Stockholders' Equity (Details Textuals 3) (USD $)	1 Months Ended	9 Months Ended
	Sep. 25, 2012	Sep. 30, 2012	Sep. 26, 2012	Dec. 31, 2011	Apr. 29, 2011
Class of Stock [Line Items]
Restriction on percentage of common stock		More than 4.99%
Series C Preferred Stock
Class of Stock [Line Items]
Aggregate principal amount of loan					$ 111,000
Number of shares converted	10,000
Preferred stock, par value (in dollars per share)	$ 11.00	$ 0.00001	$ 0.00001	$ 0.00001
Restriction on percentage of common stock		Does not exceed 4.9%
Percentage of discount on conversion price		50.00%
Number of trading days		10 days
Conversion price (in dollars per share)		$ 0.001

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities:
Net loss	$ (339,393)	$ (1,124,252)	[1]
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Recovery of allowance for credit loss	(100,000)
Depreciation of property and equipment	4,146	4,303	[1]
Amortization of intangible assets	17,560	39,510	[1]
Amortization of debt discount		36,875	[1]
Common shares issued to consultants for services		362,000	[1]
Loss on settlement of GV Global payable	111,340
Changes in assets and liabilities:
Accrued interest on notes receivable	(224)	(32,138)	[1]
Accounts receivable and prepaid expenses	(12,750)	(6,764)	[1]
Accounts payable and accrued expenses	(123,945)	326,936	[1]
Accrued interest on notes payable	49,664	90,785	[1]
Net cash used in operating activities	(393,602)	(302,745)	[1]
Cash flows from investing activities:
Investment in joint venture	(31,328)
Issuance of notes receivable	(15,000)	(150,000)	[1]
Collection of short-term and notes receivables	803,926
Net cash provided by (used in) investing activities	757,598	(150,000)	[1]
Cash flows from financing activities:
Issuance of common stock in private placement		28,345	[1]
Purchase of shares returned to treasury		(10,529)	[1]
Repayment of notes payable	(773,732)
Net cash (used in ) provided by financing activities	(773,732)	17,816	[1]
Net decrease in cash and cash equivalents	(409,736)	(434,929)	[1]
Cash and cash equivalents, beginning of period	411,656	460,149	[1]
Cash and cash equivalents, end of period	1,920	25,220	[1]
Cash paid during the period for:
Interest	52,855
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Restricted common shares issued to pay certain expenses		71,736	[1]
Conversion of GV Global payable to Series C Preferred Stock	111,000
Conversion of accrued expense to note payable	155,242
Note issued to fund acquisition of additional 5% interest in a private company		600,000	[1]
Issuance of Series A preferred shares to HAM pursuant to share exchange agreement to acquire an additional 5% in a private company		1,200,000	[1]
Conversion of debt to common shares		200,000	[1]
Cancellation of common shares issued to Forex NYC		$ 200,000	[1]

[1] Restated

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Property and Equipment, Net (Details Textuals) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 4,146	$ 4,303	[1]

[1] Restated

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Notes and Short-term Receivables (Tables)

9 Months Ended

Sep. 30, 2012

Receivables [Abstract]

Schedule of notes and short-term receivables including accrued interest

	2012		2011
Note receivable for annulment of Triple 8 investment	$	615,074	$	1,269,000	a.
Commercial note receivable, net of allowance
of $100,000		-		50,900	b.
Note receivable - Apel Design		16,124		-	c.
Total notes and short-term receivables	$	631,198	$	1,319,900

a.   In connection with the Triple 8 annulment agreement, the Company has a short term receivable of $1,269,000 which requires monthly payments of $68,914 in January 2012, $73,214 per month from February 2012 through October 2012, and a final payment of $541,860 in November 2012.  This receivable bears no interest and is the remaining portion, after the initial payment of $732,000, of the total $2,001,000 that Triple 8 agreed to pay the Company under the annulment of the share purchase agreements.  For the nine months ended September 30, 2012 the Company has received payments amounting to $653,926.

b.   Note receivable from Fortune Market Media Inc. (“FTMK”), original principal of $150,000, interest at a 12% annual rate, maturing on February 13, 2012.   FTMK had defaulted on the loan and the Company had established a reserve for loan losses of $100,000 at December 31, 2011. During the nine months ended September 30, 2012 the Company collected the entire amount of the original receivable plus accrued interest. At September 30, 2012 the Company has reflected the reversal of the $100,000 allowance for credit losses that had been established as other income in the accompanying financial statements.

c.   Note receivable from Amit Apel Design, Inc. (“Apel Design”) original principal of $15,000, interest at a 12% annual rate, maturing on August 13, 2012. Subsequently, the parties agreed to extend the maturity of the note to December 31, 2012. The note is secured by Apel Design’s inventory. As of September 30, 2012, the amount owed the Company by Apel including accrued interest is $16,124.

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Other Assets - Summary (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
White label licensing and websites		$ 17,560
Investment in joint venture	31,328
Total Other Assets	$ 31,328	$ 17,560

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Other Assets (Tables)

9 Months Ended

Sep. 30, 2012

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of constituents of other assets

	2012		2011
White label licensing and websites	$	-	$	17,560
Investment in joint venture		31,328		-
	$	31,328	$	17,560

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parentheticals)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Statement Of Cash Flows [Abstract]
Percentage of acquisition of additional interest	5.00%	5.00%
Percentage of additional in private company	5.00%	5.00%

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Allowance for credit losses short term receivable (in dollars)	$ 0	$ 100,000
Common Stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common Stock, shares authorized	400,000,000	400,000,000
Common Stock, shares issued	34,248,585	34,248,585
Common Stock, shares outstanding	34,248,585	34,248,585
Treasury stock, shares	38,000	38,000
Series B Preferred stock
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred Stock, shares authorized	20,000,000	20,000,000
Preferred Stock, shares issued	45,000	45,000
Series C Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred Stock, shares authorized	10,000	10,000
Preferred Stock, shares issued	10,000	0

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Contingencies

9 Months Ended

Sep. 30, 2012

Loss Contingency [Abstract]

Contingencies

10.       Contingencies

Legal Proceedings

From time to time, the Company may be involved in various litigation matters, which arise in the ordinary course of business.  There is currently no litigation that management believes will have a material impact on the financial position of the Company.

On or about June 13, 2011 the Company initiated a complaint against an individual and website for defamation, intentional interference with prospective economic advantage, negligent and violations of business and professions codes.  The Complaint was filled with the Superior Court of the State of California - County of San Diego.  On August 22, 2011, the defendants filed a notice of motion to strike the complaint under the anti-slapp statute.  On September 14, 2011, the Company submitted a request for dismissal, without prejudice to the court.  On January 20, 2012 the court heard the defendants’ motion (where the Company failed to appear) and the judge ruled in favor of the defendant and awarded attorney fees and court costs in the amount of $21,462. The Company filed a motion to vacate the judgment and the motion was vacated..

On or around September 14, 2012, the judged awarded the defendant $12,000 in fees. The Company believes it is owed approximately the same amount by buying  the interest in a different lawsuit which  involved the same defendant. In that lawsuit, the rights to attorney fees and costs were awarded to the Company. The Company believes that the amounts due them from that particular lawsuit approximately equals the amount that it owes to satisfy the judgment against them.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2012	Nov. 19, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	Forex International Trading Corp.
Entity Central Index Key	0001471781
Trading Symbol	fxit
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		34,248,585
Document Period End Date	Sep. 30, 2012
Document Type	10-Q
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3

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Per Share Information

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Per Share Information

11.      Per Share Information

Loss per share

Basic loss per share of common stock is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding.  Diluted loss per share of common stock (“Diluted EPS”) is computed by dividing the net loss by the weighted-average number of shares of common stock and dilutive common stock equivalents and convertible securities then outstanding.  At September 30, 2012 and September 30, 2011 (restated), there were 26,232,169 and 11,005,071, respectively, of potentially dilutive common stock equivalents outstanding.  The potentially dilutive common stock equivalents at September 30, 2012 arise from (x) the issuance on December 7, 2011 of 45,000 Series B Preferred Shares which are convertible into 15 million shares, (y) the issuance of the Rasel note which is convertible into 230,068 shares, and (z) the issuance of 10,000 Series C Preferred Shares having a stated value of $100 per share which are convertible into 11,000,000 common shares, given recent market prices, and notwithstanding a restriction against owning more than 4.99% of the Company’s stock.  The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net loss per common share.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended			9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011		Sep. 30, 2012	Sep. 30, 2011
Revenues:
Income from foreign currency operations			[1]	$ 7,106	$ 10,616	[1]
Total revenues			[1]	7,106	10,616	[1]
General and administrative expenses	49,733	180,379	[1]	287,703	1,062,834	[1]
Loss from operations	(49,733)	(180,379)	[1]	(280,597)	(1,052,218)	[1]
Other income (expenses):
Interest expense, net of interest income of $4,065 and $21,406 in 2012 and 2011, respectively	(12,036)	(26,216)	[1]	(47,456)	(72,034)	[1]
Other income (expenses)	(111,340)		[1]	(11,340)
Total other income (expenses)	(123,376)	(26,216)	[1]	(58,796)	(72,034)	[1]
Loss before income taxes	(173,109)	(206,595)	[1]	(339,393)	(1,124,252)	[1]
Income tax expense			[1]			[1]
Net loss	$ (173,109)	$ (206,595)	[1]	$ (339,393)	$ (1,124,252)	[1]
Net loss per share:
Basic and diluted (in dollars per share)	$ (0.01)	$ (0.01)	[1]	$ (0.01)	$ (0.03)	[1]
Weighted average number of common shares outstanding:
Basic and diluted (in shares)	34,248,585	34,584,384	[1]	34,248,585	44,646,568	[1]

[1] Restated

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Property and Equipment, Net

9 Months Ended

Sep. 30, 2012

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

5.      Property and Equipment, Net

Property and equipment consisted of the following as of September 30, 2012 and December 31, 2011:

	Estimated
	Useful
	Lives	2012		2011
Computers and equipment	3 years	$	12,539	$	12,539
Furniture	7 years		9,430		9,430
			21,969		21,969
Less accumulated depreciation			12,171		8,025
		$	9,798	$	13,944

Depreciation expense was $4,146 and $4,303 for the nine months ended September 30, 2012 and 2011, respectively.

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Notes and Short-term Receivables

9 Months Ended

Sep. 30, 2012

Receivables [Abstract]

Notes and Short-term Receivables

4.Notes and Short-term Receivables

At September 30, 2012 and December 31, 2011, notes and short-term receivables, including accrued interest, consisted of:

 

	2012		2011
Note receivable for annulment of Triple 8 investment	$	615,074	$	1,269,000	a.
Commercial note receivable, net of allowance
of $100,000		-		50,900	b.
Note receivable - Apel Design		16,124		-	c.
Total notes and short-term receivables	$	631,198	$	1,319,900

a.   In connection with the Triple 8 annulment agreement, the Company has a short term receivable of $1,269,000 which requires monthly payments of $68,914 in January 2012, $73,214 per month from February 2012 through October 2012, and a final payment of $541,860 in November 2012.  This receivable bears no interest and is the remaining portion, after the initial payment of $732,000, of the total $2,001,000 that Triple 8 agreed to pay the Company under the annulment of the share purchase agreements.  For the nine months ended September 30, 2012 the Company has received payments amounting to $653,926.

b.   Note receivable from Fortune Market Media Inc. (“FTMK”), original principal of $150,000, interest at a 12% annual rate, maturing on February 13, 2012.   FTMK had defaulted on the loan and the Company had established a reserve for loan losses of $100,000 at December 31, 2011. During the nine months ended September 30, 2012 the Company collected the entire amount of the original receivable plus accrued interest. At September 30, 2012 the Company has reflected the reversal of the $100,000 allowance for credit losses that had been established as other income in the accompanying financial statements.

c.   Note receivable from Amit Apel Design, Inc. (“Apel Design”) original principal of $15,000, interest at a 12% annual rate, maturing on August 13, 2012. Subsequently, the parties agreed to extend the maturity of the note to December 31, 2012. The note is secured by Apel Design’s inventory. As of September 30, 2012, the amount owed the Company by Apel including accrued interest is $16,124.

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Property and Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2012

Property, Plant and Equipment [Abstract]

Schedule of property, plant and equipment

	Estimated
	Useful
	Lives	2012		2011
Computers and equipment	3 years	$	12,539	$	12,539
Furniture	7 years		9,430		9,430
			21,969		21,969
Less accumulated depreciation			12,171		8,025
		$	9,798	$	13,944

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Subsequent Events

9 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

12.      Subsequent Events

The Company has evaluated subsequent events from the balance sheet date through the date the accompanying condensed consolidated financial statements became available to be issued. There are no subsequent events to be disclosed at this time.

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Stockholders' Equity

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Note [Abstract]

Stockholders' Equity

8.      Stockholders’ Equity

Authorized Shares

The Company has 400,000,000 authorized shares of its $0.00001 par value common stock and 20,000,000 shares of its $0.00001 par value Preferred Stock Series  B as of September 30, 2012 and December 31, 2011. On September 26, 2012, the Company authorized 10,000  Preferred Stock Series C shares, par value $0.00001.

Common Shares:

On January 17, 2011, the Company issued to Core Consulting Group 700,000 restricted shares for serving as the Company’s investor relations firm. The amount charged to consulting fees was $210,000.

On January 27, 2011, the Company issued 324,234 shares to ATL for certain draws on a note to pay expenses in the amount of $71,736.  The note payable balance to ATL was reduced by the amount of those expenses. The Company did not deliver the shares to ATL. Based on the Triple 8 settlement agreement, these shares have been surrendered back to the Company.

On March 28, 2011 the Company issued to a consultant 10,000 restricted shares as part of the Company’s consideration under a consulting agreement. The amount charged to consulting fees was $2,000.

On April 5, 2011, the Company and, a shareholder of the Company, entered into an agreement whereby the parties agreed that a $200,000 6% Convertible note payable of the Company which had been assigned to said shareholder and was now in default by the Company would be satisfied by the issuance of 2,500,000 shares of common stock to the shareholder.

On June 29, 2011, pursuant to the terms of, and in consideration for Centurion entering into, the Investment Agreement, the Company issued 1,214,224 shares of Common Stock to Centurion as a commitment fee in connection with the Investment Agreement (the "Commitment Shares") and 86,730 shares of the Common Stock representing fees incurred by Centurion in connection with the Investment Agreement (the "Fee Shares"), in each case based upon a deemed valuation per share equal to 100% of the volume-weighted average price of the Company's Common Stock for the 5 trading days immediately preceding the date of the Investment Agreement.

All the above shares of common stock of the Company were offered and sold by the Company in a securities purchase transaction made in reliance upon exemptions from registration pursuant to Section 4(2) under the Securities Act of 1933 (the “Securities Act”) and/or Rule 506 promulgated under the Securities Act. The investors are accredited investors as defined in Rule 501 of Regulation D promulgated under the Securities Act.

There were no common stock issuances for the nine months ended September 30, 2012.

Treasury Stock

On April 25, 2011, the Company issued a press release announcing that its Board of Directors approved a share repurchase program.  Under the program, the Company is authorized to purchase up to 1,000,000 of its shares of common stock in open market transactions at the discretion of management.  All stock repurchases will be subject to the requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended and other rules that govern such purchases.  As of September 30, 2012 and December 31, 2011, the Company had repurchased 38,000 of its common shares in the open market, which were returned to treasury.

Series A Preferred Shares (cancelled in December 2011)

The Series A Preferred Stock was issued as a part of the Share Exchange Agreements relating to the Triple 8 purchase and had a stated value of $100 per share and was convertible into the Company’s common stock at a conversion price of $0.30 per share representing 4,000,000 shares of common stock.  The Series A Preferred Stock voted on an as-converted basis multiplied by three and carried standard anti-dilution rights.  The Series A Preferred Stock did not carry preferential liquidation rights.  As part of the annulment of the Triple 8 Share Exchange Agreements share all of the outstanding Series A Preferred shares were returned to the Company and the stock has been canceled.

Series B Preferred Shares

On November 1, 2011, the Company and certain creditors entered into a Settlement Agreement (the "Agreement") whereby without admitting any wrongdoing on either part, the parties settled all previous agreements and resolved any existing disputes.  Under the terms of the Agreement, the Company agreed to issue the creditors 45,000 shares of Series B Preferred Stock of the Company on a pro-rata basis.  Following the issuance and delivery of the shares of Series B Preferred Stock to said creditors, as well as surrendering the undelivered shares, the Agreement resulted in the settlement of all debts, liabilities and obligations between the parties.

The Series B Preferred Stock has a stated value of $100 per share and is convertible into the Company’s common stock at a conversion price of $0.30 per share representing 15,000,000 common shares. Furthermore, the Series B Preferred Stock votes on an as converted basis and carries standard anti-dilution rights. These rights were subsequently removed, except in cases of stock dividends or splits.

Series C Preferred Shares

On April 29, 2011, GV Global Communications, Inc. (“GV”) provided funding to the Company in the aggregate principal amount of $111,000 (the “Loan”).  On September 25, 2012, the Company and GV entered into a Conversion Agreement pursuant to which the Company agreed to convert the Loan into 10,000 shares of Series C Preferred Stock of the Company, which was approved by the Board of Directors.

Each share of Series C Preferred Stock is convertible, at the option of GV, into such number of shares of common stock of the Company as determined by dividing the Stated Value (as defined below) by the Conversion Price (as defined below).  The Conversion Price for each share is equal to a 50% discount to the average of the lowest three lowest closing bid prices of the Company’s common stock during the 10 day trading period prior to the conversion with a minimum conversion price of $0.001.  The stated value is $11.00 per share (the “Stated Value”).  The Series C Preferred Stock has no liquidation preference, does not pay dividends and the holder of Series C Preferred Stock shall be entitled to one vote for each share of common stock that the Series C Preferred Stock shall be convertible into.   GV has contractually agreed to restrict its ability to convert the Series C Preferred Stock and receive shares of the Company's common stock such that the number of shares of the Company's common stock held by it and its affiliates after such conversion does not exceed 4.9% of the then issued and outstanding shares of the Company's common stock.

The issuance of the Series C Preferred Stock was made in reliance upon exemptions from registration pursuant to Section 4(2) under the Securities Act of 1933 and Rule 506 promulgated under Regulation D thereunder.  GV is an accredited investor as defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933.

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Other Assets

9 Months Ended

Sep. 30, 2012

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

6.      Other Assets

Other assets consisted of the following as of September 30, 2012 and December 31, 2011:

	2012		2011
White label licensing and websites	$	-	$	17,560
Investment in joint venture		31,328		-
	$	31,328	$	17,560

Websites development, net

On April 19, 2010, the Company entered into a Software Licensing Agreement whereby the Company licensed proprietary trading software (the “Software”) for the purpose of developing a Forex Trading Platform and introducing prospective clients (“End Users”).  In return, the Company received a newly created website, at cost of $105,359.  The cost of the website includes the vendor’s normal set-up fee plus payroll costs and consulting fees incurred by the Company relating to the development of internal use software.  The total cost of $105,359 cost was capitalized and is being amortized over a 2-year life. At September 30, 2012, the asset has been fully amortized. Amortization expense amounted to $17,560 and $39,510 for the nine months ended September 30, 2012 and 2011, respectively.

Investment in Joint Venture

On February 13, 2012, Direct JV Investments Inc (“Direct JV”), a wholly-owned subsidiary of the Company (“Direct JV”), entered into a Joint Venture Agreement with Vulcan Oil & Gas Inc. (“Vulcan”), whereby the Company will from time to time provide financing to certain Vulcan alternative, green and solar energy projects (the “Projects”) with the goal of sharing in any rebates awarded by the government on any of the Projects.  For all the Projects in the U.S. residential market, profits and losses of each of the Projects will be allocated at the conclusion of each fiscal year at a ratio of 60% to Vulcan and 40% to the Company.  For all other projects, the profit and loss allocation will be determined on a case by case basis.  There is no guarantee that the Projects will generate any revenues. As of September 30, 2012, Direct JV advanced Vulcan $31,328 per the agreements on specific projects.

On September 30, 2012, Vulcan entered into a cooperative joint venture with two other companies to forrn the entity Project Day4 Marketing (“PD4M”), Vulcan’s share of PD4M’s profits and losses is 40%. Per the joint venture agreement formed between the Company and Vulcan, the Company’s share of Vulcan’s profits and losses is 40%. Therefore, the Company’s share of the profits and losses for PD4M is 16%.

The Company had no income or loss from the joint ventures for the nine months ended September 30, 2012.

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Notes Payable

9 Months Ended

Sep. 30, 2012

Notes Payable [Abstract]

Notes Payable

7.           Notes Payable

At September 30, 2012 and at December 31, 2011, notes payable and accrued interest consisted of:

	2012		2011
Rasel notes payable and accrued interest	$	139,301	$	135,548
Glendon note payable		155,242		-
Cordelia note payable and accrued interest		279,123		1,006,944
	$	573,666	$	1,142,492

Rasel LTD - Convertible Notes Payable

On October 6, 2009 the Company signed a note payable for $25,000 to Rasel due on October 6, 2010 bearing interest at 4% per annum.  The proceeds were used to pay for half of existing accounts payable for legal fees incurred at the Company’s inception.  On October 20, 2009 the Company signed a note payable for $50,000 payable to Rasel due on October 20, 2010 bearing interest at 4% per annum.  These proceeds were used to pay for startup costs, audit fees and future expenses.  On January 22, 2010 the Company signed a note payable for $50,000 payable to Rasel due on October 30, 2011 bearing interest at 4% per annum.  These proceeds were used for working capital and expenditures.  On January 22, 2010 the Company signed an amendment to extend the maturity date of the promissory notes in the amount of $25,000 and $50,000 dated October 6, 2009 and October 20, 2009, respectively, to October 30, 2011.  On March 2, 2011 the Company and Rasel agreed to extend the maturity of all notes to December 31, 2012 in consideration of adding a conversion feature to the notes with either a 5% discount to the market price or a fixed price of $0.60.  The extension of maturity was effective as of December 30, 2010.

The balance of the notes as of September 30, 2012 and December 31, 2011was $139,301 and $135,548, respectively, which includes accrued interest in the amounts of $14,301 and $10,548 at September 30, 2012 and December 31, 2011, respectively.

Glendon Note Payable

On September 30, 2012, the Company converted a payable in the amount of $155,242 to a note payable. This note bears annual interest at 10%, and matures on December 31, 2012.

Cordelia (CDOO) Note Payable

The Company entered into a settlement agreement to annul its purchase of Triple 8 stock and issued a new promissory note to CDOO in the principal amount of $1,000,000.  The CDOO note bears interest at the rate of ten percent (10%) per annum and is due and payable in full on November 30, 2012.  Payments made for the nine months ended September 30, 2012 amounted to $$773,732  of which $45,911 was for accrued interest. The balance due at September 30, 2012 on the CDOO note is $279,123.   The balance due as of December 31, 2011 on the CDOO note was $1,006,944, which included accrued interest in the amount of $6,944.

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Related Parties

9 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

Related Parties

9.    Related Parties

Related parties are natural persons or other entities that have the ability, directly or indirectly, to control another party or exercise significant influence over the party in making financial and operating decisions. Related parties include other parties that are subject to common control or that are subject to common significant influences.

On January 18, 2011, Liat Franco was appointed by the Company to serve as the Secretary of the Company.  For her services during her term as Secretary, the Company is to issue Ms. Franco 15,000 shares of common stock of the Company, which will have a restrictive legend under the Securities Act of 1933, as amended.  In the event Ms. Franco’s employment agreement is extended, then the number of shares of common stock will be determined by dividing $6,000 by the market price on the first trading day of the term.  On November 15, 2011, Ms. Franco was appointed by the Company to serve as the Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and a director of the Company.  The Board of Directors elected to appoint Ms. Franco, who is an attorney licensed in the United States and Israel, as an executive officer and director to handle the Triple 8 settlement agreement.  As of September 30, 2012, no Company shares had been delivered.  On April 23, 2012, Ms. Franco resigned as an executive officer of the Company, but continued on as Director of the Board and Secretary of the Company.  On May 23, 2012, Ms. Franco resigned as Director of the Company to pursue other interests.

Effective January 2, 2012, Erik Klinger was appointed by the Company to serve as the Chief Financial Officer, on a part-time basis, and a Director of the Company.  A company controlled by Mr. Klinger receives a monthly fee of $3,500 for his services.

As of December 31 2011 the Company owed Ms. Franco $50,000, a company controlled by Mr. Klinger $6,500 and the former CEO $17,409. As of March 31, 2012 Ms. Franco was paid in full, and the Company owed the former CEO $2,409.  As of September 30, 2012, the payables outstanding have been paid in full, and the Company had accrued directors’ fees of $15,321, $15,321 and $4,159 to Ms. Franco, Mr. Glass, and Mr. Reich, respectively (recorded in accounts payable and accrued expenses), which will be settled in cash.

On April 23, 2012, Robert Morris Price was appointed by the Company to serve as the President, Chief Executive Officer, and Treasurer as well as Chairman of the Company.  

There is no understanding or arrangement between Mr. Price and any other person pursuant to which he was appointed as an executive officer and director.  Mr. Price does not have any family relationship with any director, executive officer or person nominated or chosen by the Company to become a director or an executive officer.  Mr. Price has not had direct or indirect material interest in any transaction or proposed transaction, in which the Company was or is a proposed participant, exceeding $120,000.

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Property and Equipment, Net - Summary (Details) (USD $)	9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 21,969	$ 21,969
Less accumulated depreciation	12,171	8,025
Property and equipment, Net	9,798	13,944
Computers and equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Property and equipment, gross	12,539	12,539
Furniture
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years
Property and equipment, gross	$ 9,430	$ 9,430

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Acquisition and Divestiture/Restatements (Tables)

9 Months Ended

Sep. 30, 2012

Business Combinations [Abstract]

Schedule of restatement of statements of operations reflecting deconsolidation of company acquired

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2011

	Three months ended September 30,2011									Nine months ended September 30,2011
	As Previously									As Previously
	Reported			Net Change			As Restated			Reported			Net Change			As Restated
Revenues:
Income from foreign currency operations	$	-		$	-		$	-		$	616		$	-		$	616
Consulting and services		-			-			-			10,000			-			10,000
		-			-			-			10,616			-			10,616
Cost of revenues		-			-			-			-			-			-
		-			-			-			10,616			-			10,616
General and administrative expenses		179,925			454			180,379			702,380			360,454			1,062,834
Loss from operations		(179,925	)		(454	)		(180,379	)		(691,764	)		(360,454	)		(1,052,218	)
Other income (expenses):
Interest expense, net of interest income		(26,216	)		-			(26,216	)		(72,034	)		-			(72,034	)
Impairment expense to goodwill from Variable Interests		(24,800,000	)		24,800,000			-			(24,800,000	)		24,800,000			-
Income from equity interest in Variable Interests		-			-			-			394,309			(394,309	)		-
Total other income (expenses)		(24,826,216	)		24,800,000			(26,216	)		(24,477,725	)		24,405,691			(72,034	)
(Loss) income before income taxes		(25,006,141	)		24,799,546			(206,595	)		(25,169,489	)		24,045,237			(1,124,252	)
Income tax expense		-			-			-			-			-			-
Net (loss) income	$	(25,006,141	)	$	24,799,546		$	(206,595	)	$	(25,169,489	)	$	24,045,237		$	(1,124,252	)
Net (loss) income per share:
Basic and diluted	$	(0.60	)	$	0.59		$	(0.01	)	$	(0.61	)	$	0.58		$	(0.03	)
Weighted average number of common
shares outstanding:
Basic and diluted		41,428,796			(6,844,412	)		34,584,384			41,428,796			3,217,772			44,646,568

Schedule of restatement of statements of cash flow reflecting deconsolidation of company acquired

	As Previously
	Reported			Net Change			As Restated
Cash flows from  operating activities:
Net loss	$	(25,169,491	)	$	24,045,239		$	(1,124,252	)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation  of  property and equipment		4,303			-			4,303
Amortization of intangible assets		39,682			(172	)		39,510
Amortization of debt discount		38,390			(1,515	)		36,875
Common shares issued to consultants for services		-			362,000			362,000
Income fron equity interest in Triple 8 Limited		(394,309	)		394,309			-
Impairment expense to goodwill from variable interest		24,800,000			(24,800,000	)		-
Change in accounting method for investment in variable interest -
reclassification of goodwill		3,531,487			(3,531,487	)		-
Foreign currency adjustment		1,533			(1,533	)		-
Changes in assets and liabilities:
Accrued interest on notes receivable		-			(32,138	)		(32,138	)
Accounts receivable and prepaid expenses		8,075			(14,839	)		(6,764	)
Other assets		(4,487,375	)		4,487,375			-
Secured note and debt discount		51,205			(51,205	)		-
Accounts payable and accrued expenses		(2,048,521	)		2,375,457			326,936
Other current liabilities		460,767			(460,767	)		-
Other liabilities		(75,000	)		75,000			-
Accrued interest on notes payable		98,818			(8,033	)		90,785
Net cash provided by (used in) operating activities		(3,140,436	)		2,837,691			(302,745	)
Cash flows from investing activities:
Investment in additional 5% of Triple 8 Limited		(1,800,000	)		1,800,000			-
Issuance of a short-term receivable		-			(150,000	)		(150,000	)
Net cash (used in) provided by investing activities		(1,800,000	)		3,600,000			(150,000	)
Cash flows from financing activities:
Issuance of common stock in private placement		28,345			-			28,345
Purchase of shares returned to treasury		(10,529	)		-			(10,529	)
Retirement of common shares to purchase Triple 8 Limited		(25,800,800	)		25,800,800			-
Issuance of Series A preferred shares to replace common shares		25,800,080			(25,800,080	)		-
Issuance of shares to reduce note		71,736			(71,736	)		-
Series A shares issued to fund acquisition of additional 5% of Triple 8 Limited		1,200,000			(1,200,000	)		-
Note payable issued to fund acquisition of additional 5% of Triple 8 Limited		600,000			(600,000	)		-
Net cash provided by (used in) financing activities		1,888,832			(1,871,016	)		17,816
Net increase (decrease) in cash and cash equivalents		(3,051,604	)		2,616,675			(434,929	)
Cash and cash equivalents, beginning of period		3,078,339			(2,618,190	)		460,149
Cash and cash equivalents, end of period	$	26,735		$	(1,515	)	$	25,220
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Restricted common shares issued to pay certain expenses	$	-		$	71,736		$	71,736
Note issued to fund acquisition of additional 5% interest in
Triple 8 Limited	$	-		$	600,000		$	600,000
Issuance of Preferred Shares Series A - Triple 8 limited	$	25,800,080		$	(25,800,080	)	$	-
Equity interest from Triple 8 limited, YTD	$	(25,800,000	)	$	25,800,000		$	-
Impairment expense from variable interest	$	394,309		$	(394,309	)	$	-
Issuance of Series A preferred shares to acquire an
additional 5% in Triple 8 Limited	$	1,200,000		$	-		$	1,200,000
Conversion of debt to common shares	$	-		$	200,000		$	200,000
Cancellation of common shares issued to Forex NYC	$	-		$	200,000		$	200,000
Accrued interest on notes payable	$	137,276		$	137,276		$	-
Accrued interest on notes receivable	$	32,142		$	32,142		$	-

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Acquisition and Divestiture/Restatements - Statement of operations (Details) (USD $)	3 Months Ended			9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011		Sep. 30, 2012	Sep. 30, 2011
Total revenues, net of cost of goods sold:
Income from foreign currency operations			[1]	$ 7,106	$ 10,616	[1]
Total revenues			[1]	7,106	10,616	[1]
General and administrative expenses	49,733	180,379	[1]	287,703	1,062,834	[1]
Loss from operations	(49,733)	(180,379)	[1]	(280,597)	(1,052,218)	[1]
Other income (expenses):
Interest expense, net of interest income	(12,036)	(26,216)	[1]	(47,456)	(72,034)	[1]
Total other income (expenses)	(123,376)	(26,216)	[1]	(58,796)	(72,034)	[1]
(Loss) income before income taxes	(173,109)	(206,595)	[1]	(339,393)	(1,124,252)	[1]
Income tax expense			[1]			[1]
Net (loss) income	(173,109)	(206,595)	[1]	(339,393)	(1,124,252)	[1]
Net (loss) income per share:
Basic and diluted (in dollars per share)	$ (0.01)	$ (0.01)	[1]	$ (0.01)	$ (0.03)	[1]
Weighted average number of common shares outstanding:
Basic and diluted (in shares)	34,248,585	34,584,384	[1]	34,248,585	44,646,568	[1]
As Previously Reported
Total revenues, net of cost of goods sold:
Income from foreign currency operations					616
Consulting and services					10,000
Total revenues					10,616
Cost of revenues
Gross profit					10,616
General and administrative expenses		179,925			702,380
Loss from operations		(179,925)			(691,764)
Other income (expenses):
Interest expense, net of interest income		(26,216)			(72,034)
Impairment expense to goodwill from variable interest		(24,800,000)			(24,800,000)
Income from equity interest in Variable Interests					394,309
Total other income (expenses)		(24,826,216)			(24,477,725)
(Loss) income before income taxes		(25,006,141)			(25,169,489)
Income tax expense
Net (loss) income		(25,006,141)			(25,169,489)
Net (loss) income per share:
Basic and diluted (in dollars per share)		$ (0.60)			$ (0.61)
Weighted average number of common shares outstanding:
Basic and diluted (in shares)		41,428,796			41,428,796
Net Change
Total revenues, net of cost of goods sold:
Income from foreign currency operations
Consulting and services
Total revenues
Cost of revenues
Gross profit
General and administrative expenses		454			360,454
Loss from operations		(454)			(360,454)
Other income (expenses):
Interest expense, net of interest income
Impairment expense to goodwill from variable interest		24,800,000			24,800,000
Income from equity interest in Variable Interests					(394,309)
Total other income (expenses)		24,800,000			24,405,691
(Loss) income before income taxes		24,799,546			24,045,237
Income tax expense
Net (loss) income		24,799,546			24,045,237
Net (loss) income per share:
Basic and diluted (in dollars per share)		$ 0.59			$ (0.58)
Weighted average number of common shares outstanding:
Basic and diluted (in shares)		(6,844,412)			3,217,772
As Restated
Total revenues, net of cost of goods sold:
Income from foreign currency operations					616
Consulting and services					10,000
Total revenues					10,616
Cost of revenues
Gross profit					10,616
General and administrative expenses		180,379			1,062,834
Loss from operations		(180,379)			(1,052,218)
Other income (expenses):
Interest expense, net of interest income		(26,216)			(72,034)
Impairment expense to goodwill from variable interest
Income from equity interest in Variable Interests
Total other income (expenses)		(26,216)			(72,034)
(Loss) income before income taxes		(206,595)			(1,124,252)
Income tax expense
Net (loss) income		$ (206,595)			$ (1,124,252)
Net (loss) income per share:
Basic and diluted (in dollars per share)		$ (0.01)			$ (0.03)
Weighted average number of common shares outstanding:
Basic and diluted (in shares)		34,584,384			44,646,568

[1] Restated

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Notes Payable (Details Textuals 1) (USD $)	9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Notes Payable	$ 573,666	$ 1,142,492
Payment made of notes payable	773,732
Glendon note payable
Debt Instrument [Line Items]
Notes Payable	155,242
Interest Rate	10.00%
Cordelia note payable and accrued interest
Debt Instrument [Line Items]
Notes Payable	279,123	1,006,944
Interest Rate	10.00%
Principal amount of promissory note	1,000,000
Balance due of CDOO note payable	279,123	1,006,944
Accrued interest		6,944
Payment made of notes payable	773,732
Accrued interest paid on notes payable	$ 45,911

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parentheticals) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Income Statement [Abstract]
Interest income	$ 4,065	$ 4,065	$ 21,406	$ 21,406

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Acquisition and Divestiture/Restatements

9 Months Ended

Sep. 30, 2012

Business Combinations [Abstract]

Acquisition and Divestiture/Restatements

3.      Acquisition and Divestiture/Restatements

Investment in Private Company—Triple 8

On November 17, 2010, the Company entered into a Share Exchange Agreement, which closed on December 30, 2010, to acquire 17,924 common shares, representing 44.9% of the issued and outstanding shares of Triple 8 Limited (“Triple 8”) from A.P. Holdings Limited (“APH”) (the “APH Agreement”).  In consideration for its purchase the Company issued 25,000,000 shares of common stock and a Note Payable (the “APH Note”) in the principal amount of $1,200,000, bearing interest at an annual rate of 6% and convertible into 6 million shares of common stock.  The APH Note was originally due on February 15, 2011.  Concurrently, certain shareholders agreed to surrender 70,000,000 shares of the Company’s common stock for cancellation to avoid diluting the ownership of the other existing shareholders. Following the purchase of Triple 8 shares from APH, the Company entered into another Share Exchange Agreement to acquire 1,996 common shares, or 5% of the issued and outstanding common shares of Triple 8, from the H.A.M. Group Limited (“HAM”).  As a result, the Company’s ownership of Triple 8 increased to 49.9% of the issued and outstanding common shares.  As consideration for its purchase, the Company issued HAM 12,000 shares of Series A Preferred Stock and a 6% Convertible Debenture for $600,000, due September 30, 2011 (the “HAM Note”).  The Series A Preferred Stock has a stated value of $100 per share and is convertible into common stock at a conversion price of $0.30 per share, thus representing 4,000,000 shares of common stock of the Company.
 

The Company defaulted on its note payable to APH and on its obligation under the HAM Note.  In order to avoid costly litigation and the potential detrimental impact of a judgment against the Company, as a result of two defaults, the Company entered into an agreement to annul its purchases of its ownership interest in Triple 8.  As a part of the Annulment:

·   Triple 8 has agreed to pay the Company $2,001,000 (the “Triple Payments”) over time through November 2012.  If Triple 8 fails to make any of the payments for a period of 60 days, it must transfer the original number of its common shares (17,924) purchased back to the Company.  In addition, Triple 8 is not entitled to have any previous payments returned.

·   The Company issued a new $1,000,000 promissory note (the "CDOO Note") to an assignee of HAM and APH as consideration for the termination of the APH Note and the HAM Note, which were both in default.  The assignee has the ability to foreclose on all shares of Triple 8 held by the Company.  The CDOO note bears interest at an annual rate of ten percent (10%) and is due and payable in full on November 30, 2012.  In the event that Triple 8 fails to make the Triple Payments, then the amount payable under the CDOO Note is to be reduced by half of the amount of any missed payment.

·   APH and HAM agreed to return all of their stock holdings to the Company for cancellation.

The Annulment closed on December 7, 2011, and the Company received its initial Triple Payment of $732,000 in cash at that time. Subsequently, the Company received Triple Payments in the aggregate amount of $653,926 for the nine months ended September 30, 2012 per the terms of the agreement.

The Company initially accounted for its acquisition of Triple 8 using the acquisition method as prescribed by U.S. GAAP.  Under the acquisition method, the acquirer must recognize the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at their acquisition date fair values.  Although the Company acquired less than 50% of the ownership of Triple 8, the use of the acquisition method and the accounting treatment of Triple 8 were considered appropriate because the Company believed that it had acquired control of Triple 8.  The basis behind the determination that the Company acquired control of Triple 8 even though it owned a minority stake, was that an employee of the Company became the sole member of the Board of Triple 8’s operating subsidiary and continued to be in that role until June 2011.  In addition, the Company believed that Triple 8 was subject to consolidation under U.S. GAAP as a Variable Interest Entity.

However, in June 2011, Triple 8’s operating subsidiary’s management unilaterally removed the Company’s employee from its Board and asserted its control over business operations.  Since then, the Company has reevaluated its determination that it had acquired control of Triple 8 and that Triple 8 was subject to consolidation as a Variable Interest Entity.  As a result, management  concluded that it never really had control and that the use of the acquisition method of accounting was not appropriate.  Upon reconsideration, management also concluded that Triple 8 was not subject to consolidation as a Variable Interest Entity essentially because the Company had no equity investment at risk.  In coming to these conclusions, the Company considered the following:

1.   The fair value of the consideration paid in both of the Share Exchange Agreements is questionable.  The original consideration included the Company’s stock and notes payable.  Given that the fair value of the Company’s stock and the fair value of Triple 8 was difficult to determine and that the Company never made any cash payments for its obligations under the notes payable, there is a legitimate argument that no consideration was paid for the Triple 8 stock received under the Share Exchange Agreements.

a.   With respect to exchange value of the company’s stock, management takes into account that at the time of the Share Exchange Agreements the Company’s stock was not trading.  [Since then, the Company’s stock has been a thinly traded penny stock that has had a high level of price volatility with respect to what stock has been traded and has not been rated by any analysts.]

b.   With respect to value in use of the would-be acquiree, management takes into account that at the time of the Share Exchange Agreements Triple 8 was a newly formed entity in business for only 2 years.  Under the circumstances, any valuation of Triple 8 would be highly subjective.  A market or cost approach to valuing Triple 8 was not feasible and an income approach requires highly subjective estimates about future operations, profits, and cash flows.

c.   The Company’s failure to make debt payments and the continuing revisions indicate that the Company’s Notes Payable were of little value to Triple 8’s sellers.

2.   The unilateral removal of the Company’s employee from the Triple 8 Board and Triple 8’s operating subsidiary management assertion of its control over business operations indicates the Company’s inability to control Triple 8.

These considerations have led the Company to conclude that the purchase of Triple 8 involved no real consideration.  Furthermore, the Share Exchange Agreement transactions do not meet the conditions necessary to qualify as a business combination achieved without the transfer of consideration under U.S. GAAP.

The Company has also considered the use of the equity method and the cost method of accounting in connection with the Share Exchange Agreement transactions for the purchase of Triple 8.  Generally, U.S. GAAP requires that investments in common stock or in entities over which the investor can exercise significant influence, but not control, be accounted for using the equity method.  Otherwise, an investment should be accounted for at cost.  In addition, the Company believes that its investment in Triple 8 should be accounted for at cost because it did not have significant influence over the period from the closing of the APH Agreement through to date of the annulment agreement.  While the Company did not have significant influence over Triple 8 during that period, the counterparties to the annulment agreement acknowledged the Company’s investment by entering into the annulment agreement.  Therefore, these financial statements have been restated to present the investment in Triple 8 on a cost basis, with cost being determined by the market value of the Company’s stock paid and the stated value of the note payable issued under the APH Agreement.

Presented below are restatements of the statement of operations for the three and nine months ended September 30, 2011 and statements of cash flows for the nine months ended September 30, 2011 to reflect the deconsolidation of Triple 8, a restatement for shares issued for services of $360,000 that had been previously been capitalized and correction of the weighted average common shares outstanding.

FOREX INTERNATIONAL TRADING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2011

	Three months ended September 30,2011									Nine months ended September 30,2011
	As Previously									As Previously
	Reported			Net Change			As Restated			Reported			Net Change			As Restated
Revenues:
Income from foreign currency operations	$	-		$	-		$	-		$	616		$	-		$	616
Consulting and services		-			-			-			10,000			-			10,000
		-			-			-			10,616			-			10,616
Cost of revenues		-			-			-			-			-			-
		-			-			-			10,616			-			10,616
General and administrative expenses		179,925			454			180,379			702,380			360,454			1,062,834
Loss from operations		(179,925	)		(454	)		(180,379	)		(691,764	)		(360,454	)		(1,052,218	)
Other income (expenses):
Interest expense, net of interest income		(26,216	)		-			(26,216	)		(72,034	)		-			(72,034	)
Impairment expense to goodwill from Variable Interests		(24,800,000	)		24,800,000			-			(24,800,000	)		24,800,000			-
Income from equity interest in Variable Interests		-			-			-			394,309			(394,309	)		-
Total other income (expenses)		(24,826,216	)		24,800,000			(26,216	)		(24,477,725	)		24,405,691			(72,034	)
(Loss) income before income taxes		(25,006,141	)		24,799,546			(206,595	)		(25,169,489	)		24,045,237			(1,124,252	)
Income tax expense		-			-			-			-			-			-
Net (loss) income	$	(25,006,141	)	$	24,799,546		$	(206,595	)	$	(25,169,489	)	$	24,045,237		$	(1,124,252	)
Net (loss) income per share:
Basic and diluted	$	(0.60	)	$	0.59		$	(0.01	)	$	(0.61	)	$	0.58		$	(0.03	)
Weighted average number of common
shares outstanding:
Basic and diluted		41,428,796			(6,844,412	)		34,584,384			41,428,796			3,217,772			44,646,568

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

NINE MONTHS ENDED SEPTEMBER 30, 2011

	As Previously
	Reported			Net Change			As Restated
Cash flows from  operating activities:
Net loss	$	(25,169,491	)	$	24,045,239		$	(1,124,252	)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation  of  property and equipment		4,303			-			4,303
Amortization of intangible assets		39,682			(172	)		39,510
Amortization of debt discount		38,390			(1,515	)		36,875
Common shares issued to consultants for services		-			362,000			362,000
Income fron equity interest in Triple 8 Limited		(394,309	)		394,309			-
Impairment expense to goodwill from variable interest		24,800,000			(24,800,000	)		-
Change in accounting method for investment in variable interest -
reclassification of goodwill		3,531,487			(3,531,487	)		-
Foreign currency adjustment		1,533			(1,533	)		-
Changes in assets and liabilities:
Accrued interest on notes receivable		-			(32,138	)		(32,138	)
Accounts receivable and prepaid expenses		8,075			(14,839	)		(6,764	)
Other assets		(4,487,375	)		4,487,375			-
Secured note and debt discount		51,205			(51,205	)		-
Accounts payable and accrued expenses		(2,048,521	)		2,375,457			326,936
Other current liabilities		460,767			(460,767	)		-
Other liabilities		(75,000	)		75,000			-
Accrued interest on notes payable		98,818			(8,033	)		90,785
Net cash provided by (used in) operating activities		(3,140,436	)		2,837,691			(302,745	)
Cash flows from investing activities:
Investment in additional 5% of Triple 8 Limited		(1,800,000	)		1,800,000			-
Issuance of a short-term receivable		-			(150,000	)		(150,000	)
Net cash (used in) provided by investing activities		(1,800,000	)		3,600,000			(150,000	)
Cash flows from financing activities:
Issuance of common stock in private placement		28,345			-			28,345
Purchase of shares returned to treasury		(10,529	)		-			(10,529	)
Retirement of common shares to purchase Triple 8 Limited		(25,800,800	)		25,800,800			-
Issuance of Series A preferred shares to replace common shares		25,800,080			(25,800,080	)		-
Issuance of shares to reduce note		71,736			(71,736	)		-
Series A shares issued to fund acquisition of additional 5% of Triple 8 Limited		1,200,000			(1,200,000	)		-
Note payable issued to fund acquisition of additional 5% of Triple 8 Limited		600,000			(600,000	)		-
Net cash provided by (used in) financing activities		1,888,832			(1,871,016	)		17,816
Net increase (decrease) in cash and cash equivalents		(3,051,604	)		2,616,675			(434,929	)
Cash and cash equivalents, beginning of period		3,078,339			(2,618,190	)		460,149
Cash and cash equivalents, end of period	$	26,735		$	(1,515	)	$	25,220
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Restricted common shares issued to pay certain expenses	$	-		$	71,736		$	71,736
Note issued to fund acquisition of additional 5% interest in
Triple 8 Limited	$	-		$	600,000		$	600,000
Issuance of Preferred Shares Series A - Triple 8 limited	$	25,800,080		$	(25,800,080	)	$	-
Equity interest from Triple 8 limited, YTD	$	(25,800,000	)	$	25,800,000		$	-
Impairment expense from variable interest	$	394,309		$	(394,309	)	$	-
Issuance of Series A preferred shares to acquire an
additional 5% in Triple 8 Limited	$	1,200,000		$	-		$	1,200,000
Conversion of debt to common shares	$	-		$	200,000		$	200,000
Cancellation of common shares issued to Forex NYC	$	-		$	200,000		$	200,000
Accrued interest on notes payable	$	137,276		$	137,276		$	-
Accrued interest on notes receivable	$	32,142		$	32,142		$	-

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Acquisition and Divestiture/Restatements - Statement of cash flows (Details 1) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities:
Net loss	$ (339,393)	$ (1,124,252)	[1]
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation of property and equipment	4,146	4,303	[1]
Amortization of intangible assets	17,560	39,510	[1]
Amortization of debt discount		36,875	[1]
Common shares issued to consultants for services		362,000	[1]
Changes in assets and liabilities:
Accrued interest on notes receivable	224	32,138	[1]
Accounts receivable and prepaid expenses	12,750	6,764	[1]
Accounts payable and accrued expenses	123,945	(326,936)	[1]
Accrued interest on notes payable	49,664	90,785	[1]
Net cash provided by (used in) operating activities	(393,602)	(302,745)	[1]
Cash flows from investing activities:
Net cash (used in) provided by investing activities	757,598	(150,000)	[1]
Cash flows from financing activities:
Issuance of common stock in private placement		28,345	[1]
Purchase of shares returned to treasury		10,529	[1]
Net cash provided by (used in) financing activities	(773,732)	17,816	[1]
Net increase (decrease) in cash and cash equivalents	(409,736)	(434,929)	[1]
Cash and cash equivalents, beginning of period	411,656	460,149	[1]
Cash and cash equivalents, end of period	1,920	25,220	[1]
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Restricted common shares issued to pay certain expenses		71,736	[1]
Note issued to fund acquisition of additional 5% interest in Triple 8 Limited		600,000	[1]
Issuance of Series A preferred shares to acquire an additional 5% in Triple 8 Limited		1,200,000	[1]
Conversion of debt to common shares		200,000	[1]
Cancellation of common shares issued to Forex NYC		200,000	[1]
As Previously Reported
Cash flows from operating activities:
Net loss		(25,169,489)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation of property and equipment		4,303
Amortization of intangible assets		39,682
Amortization of debt discount		38,390
Common shares issued to consultants for services
Income from equity interest in Variable Interests		(394,309)
Impairment expense to goodwill from variable interest		24,800,000
Change in accounting method for investment in variable interest - reclassification of goodwill		3,531,487
Foreign currency adjustment		1,533
Changes in assets and liabilities:
Accrued interest on notes receivable
Accounts receivable and prepaid expenses		8,075
Other assets		(4,487,375)
Secured note and debt discount		51,205
Accounts payable and accrued expenses		(2,048,521)
Other current liabilities		460,767
Other liabilities		(75,000)
Accrued interest on notes payable		98,818
Net cash provided by (used in) operating activities		(3,140,436)
Cash flows from investing activities:
Investment in additional 5% of Triple 8 Limited		(1,800,000)
Issuance of a short-term receivable
Net cash (used in) provided by investing activities		(1,800,000)
Cash flows from financing activities:
Issuance of common stock in private placement		28,345
Purchase of shares returned to treasury		(10,529)
Retirement of common shares to purchase Triple 8 Limited		(25,800,800)
Issuance of Series A preferred shares to replace common shares		25,800,080
Issuance of shares to reduce note		71,736
Series A shares issued to fund acquisition of additional 5% of Triple 8 Limited		1,200,000
Note payable issued to fund acquisition of additional 5% of Triple 8 Limited		600,000
Net cash provided by (used in) financing activities		1,888,832
Net increase (decrease) in cash and cash equivalents		(3,051,604)
Cash and cash equivalents, beginning of period		3,078,339
Cash and cash equivalents, end of period		26,735
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Restricted common shares issued to pay certain expenses
Note issued to fund acquisition of additional 5% interest in Triple 8 Limited
Issuance of Preferred Shares Series A - Triple 8 limited		25,800,080
Equity interest from Triple 8 limited, YTD		(25,800,000)
Impairment expense from variable interest		394,309
Issuance of Series A preferred shares to acquire an additional 5% in Triple 8 Limited		1,200,000
Conversion of debt to common shares
Cancellation of common shares issued to Forex NYC
Accrued interest on notes payable		137,276
Accrued interest on notes receivable		32,142
Net Change
Cash flows from operating activities:
Net loss		24,045,237
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation of property and equipment
Amortization of intangible assets		(172)
Amortization of debt discount		(1,515)
Common shares issued to consultants for services		362,000
Income from equity interest in Variable Interests		394,309
Impairment expense to goodwill from variable interest		(24,800,000)
Change in accounting method for investment in variable interest - reclassification of goodwill		(3,531,487)
Foreign currency adjustment		(1,533)
Changes in assets and liabilities:
Accrued interest on notes receivable		(32,138)
Accounts receivable and prepaid expenses		(14,839)
Other assets		4,487,375
Secured note and debt discount		(51,205)
Accounts payable and accrued expenses		2,375,457
Other current liabilities		(460,767)
Other liabilities		75,000
Accrued interest on notes payable		(8,033)
Net cash provided by (used in) operating activities		2,837,691
Cash flows from investing activities:
Investment in additional 5% of Triple 8 Limited		1,800,000
Issuance of a short-term receivable		(150,000)
Net cash (used in) provided by investing activities		3,600,000
Cash flows from financing activities:
Issuance of common stock in private placement
Purchase of shares returned to treasury
Retirement of common shares to purchase Triple 8 Limited		25,800,800
Issuance of Series A preferred shares to replace common shares		(25,800,080)
Issuance of shares to reduce note		(71,736)
Series A shares issued to fund acquisition of additional 5% of Triple 8 Limited		(1,200,000)
Note payable issued to fund acquisition of additional 5% of Triple 8 Limited		(600,000)
Net cash provided by (used in) financing activities		(1,871,016)
Net increase (decrease) in cash and cash equivalents		2,616,675
Cash and cash equivalents, beginning of period		(2,618,190)
Cash and cash equivalents, end of period		(1,515)
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Restricted common shares issued to pay certain expenses		71,736
Note issued to fund acquisition of additional 5% interest in Triple 8 Limited		600,000
Issuance of Preferred Shares Series A - Triple 8 limited		(25,800,080)
Equity interest from Triple 8 limited, YTD		25,800,000
Impairment expense from variable interest		(394,309)
Issuance of Series A preferred shares to acquire an additional 5% in Triple 8 Limited
Conversion of debt to common shares		200,000
Cancellation of common shares issued to Forex NYC		200,000
Accrued interest on notes payable		137,276
Accrued interest on notes receivable		32,142
As Restated
Cash flows from operating activities:
Net loss		(1,124,252)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation of property and equipment		4,303
Amortization of intangible assets		39,510
Amortization of debt discount		36,875
Common shares issued to consultants for services		362,000
Income from equity interest in Variable Interests
Impairment expense to goodwill from variable interest
Change in accounting method for investment in variable interest - reclassification of goodwill
Foreign currency adjustment
Changes in assets and liabilities:
Accrued interest on notes receivable		(32,138)
Accounts receivable and prepaid expenses		(6,764)
Other assets
Secured note and debt discount
Accounts payable and accrued expenses		326,936
Other current liabilities
Other liabilities
Accrued interest on notes payable		90,785
Net cash provided by (used in) operating activities		(302,745)
Cash flows from investing activities:
Investment in additional 5% of Triple 8 Limited
Issuance of a short-term receivable		(150,000)
Net cash (used in) provided by investing activities		(150,000)
Cash flows from financing activities:
Issuance of common stock in private placement		28,345
Purchase of shares returned to treasury		(10,529)
Retirement of common shares to purchase Triple 8 Limited
Issuance of Series A preferred shares to replace common shares
Issuance of shares to reduce note
Series A shares issued to fund acquisition of additional 5% of Triple 8 Limited
Note payable issued to fund acquisition of additional 5% of Triple 8 Limited
Net cash provided by (used in) financing activities		17,816
Net increase (decrease) in cash and cash equivalents		(434,929)
Cash and cash equivalents, beginning of period		460,149
Cash and cash equivalents, end of period		25,220
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Restricted common shares issued to pay certain expenses		71,736
Note issued to fund acquisition of additional 5% interest in Triple 8 Limited		600,000
Issuance of Preferred Shares Series A - Triple 8 limited
Equity interest from Triple 8 limited, YTD
Impairment expense from variable interest
Issuance of Series A preferred shares to acquire an additional 5% in Triple 8 Limited		1,200,000
Conversion of debt to common shares		200,000
Cancellation of common shares issued to Forex NYC		200,000
Accrued interest on notes payable
Accrued interest on notes receivable

[1] Restated

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Other Assets (Details Textuals 1) (USD $)	9 Months Ended
	Sep. 30, 2012	Feb. 13, 2012
Percentage of profits and losses allocated		40.00%
Vulcan Oil & Gas Inc
Percentage of profits and losses allocated		60.00%
Advance payment	$ 31,328
Percentage share of the profits and losses as per joint venture agreement	40.00%
Project Day 4 Marketing
Percentage share of the profits and losses as per joint venture agreement	16.00%

XML

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Presentation and Basis of Financial Statements

Presentation and Basis of Financial Statements

The accompanying unaudited condensed consolidated financial statements include the accounts of Forex International Trading Corp. and its consolidated subsidiaries (“Forex” or the Company”) and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and reports and with the instructions to  Form 10-Q and Rule 10-01 of  Regulation S-X. Accordingly, they do not include all, or include a condensed version of, the information and footnotes required by U.S. GAAP for complete financial statements. The Company believes, however, that the disclosures are adequate to make the information presented not misleading. The Company’s condensed consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for the fair presentation of the consolidated financial position and the consolidated results of operations of the Company for the periods shown. Results shown for the interim periods are not necessarily indicative of the results to be obtained for a full fiscal year or for any future period. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates, judgments and assumptions that affect the amounts reported in the condensed financial statements. Actual results might differ from management’s estimates.

The consolidated balance sheet information as of December 31, 2011 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with Securities and Exchange Commission (“SEC”) for the fiscal year ended December 31, 2011. These interim condensed consolidated financial statements should be read in conjunction with the Company’s most recently audited financial statements and in the above referenced Annual Report on Form 10-K.

All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods.  Significant estimates include the useful lives of tangible and intangible assets, depreciation and amortization, allowances for doubtful accounts and loan losses, valuation of common and preferred stock issuances, and the valuation allowance on deferred tax assets.  Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid financial instruments purchased with an original maturity of three months or less to be cash equivalents.

Notes and Short-Term Receivable

Notes and Short-Term Receivable

The note and short-term receivable are carried at cost, which approximates fair value.  The Company measures the impairment of loans based on its historical loan collection experience and existing economic conditions.  Impairment is recognized when management believes it is probable that payments will not be received on some portion of the loan, which is determined on an individual loan basis.  The Company evaluates loans for impairment on an annual basis or when there are indications that the loan may not be collected.  When management determines that a loan is impaired it is placed on non-accrual status, and an allowance for loan losses is established to recognize the estimated amount of impairment.  Payments received on non-accrual loans are generally applied to the outstanding principal balance.  Loans are removed from non-accrual status when management believes that the borrower will resume making the payments required by the loan agreement.

Property and Equipment

Property and Equipment

Property and equipment are stated at cost and the related depreciation is computed using the straight-line method over the estimated useful lives of the respective assets.  Expenditures for repairs and maintenance are charged to operations as incurred.  Renewals and betterments are capitalized.  Upon the sale or retirement of an asset, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is recognized in the results of operations.

Leasehold improvements are amortized over the lesser of the estimated life of the asset or the lease term.

As required by U.S. GAAP for long-lived assets, the Company evaluates the fair value of its property and equipment on an annual basis or whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.  Any impairment of value is recognized when the carrying amount of the asset exceeds its fair value.  There were no impairment losses for the three and nine months ended September 30, 2012 and 2011.

Treasury Stock

Treasury Stock

Treasury stock is recorded at cost.  The re-issuance of treasury shares is accounted for on a first in, first-out basis and any difference between the cost of treasury shares and the re-issuance proceeds are charged or credited to additional paid-in capital.

Income Taxes

Income Taxes

The Company accounts for income taxes using the liability method, which provides for an asset and liability approach to accounting for income taxes.  Under this method, deferred tax assets and liabilities are recorded for future tax effects of temporary differences between the financial reporting and tax basis of assets and liabilities, and measured using the current tax rates and laws that are expected to be in effect when the underlying assets or liabilities are anticipated to be recovered or settled.  Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount of tax benefits expected to be realized.

U.S. GAAP requires that, in applying the liability method, the financial statement effects of an uncertain tax position be recognized based on the outcome that is more likely than not to occur.  Under this criterion the most likely resolution of an uncertain tax position should be analyzed based on technical merits and on the outcome that would likely be sustained under examination.  The Company had no uncertain tax positions as of September 30, 2012, and is current in its tax filings...

Revenue Recognition

Revenue Recognition

Income from foreign currency operations is earned by referring potential customers to foreign exchange trading companies.  Foreign exchange trading companies remit a percentage of their revenues to the Company in exchange for customer leads, which the Company recognizes when the exchange trading occurs.

The Company recognizes consulting fees when services have been rendered.

Share-Based Compensation

Share-Based Compensation

The Company calculates stock-based compensation expense including compensation expense for all share-based payment awards made to employees and directors including employee stock options, stock appreciation rights and restricted stock awards based on their estimated grant date fair values.  The value of the portion of the award that is ultimately expected to vest is recognized as an expense on a straight-line basis over any required service period.  No such expenses were recognized for the three and nine months ended September 30, 2012 and 2011.  

Earnings (Loss) Per Share

Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period.  Diluted earnings (loss) per share considers the potential dilution that could occur if securities or other contracts to issue common stock were exercised or could otherwise cause the issuance of common stock, such as options, convertible notes and convertible preferred stock, were exercised or converted into common stock or could otherwise cause the issuance of common stock that then shared in earnings (loss).  Such potential additional common shares are included in the computation of diluted earnings per share.  Diluted loss per share has  not been computed for the three and nine months ended September 30, 2012 and 2011 because any potential additional common shares would reduce the reported loss per share and therefore have an antidilutive effect.

Going Concern

Going Concern

The accompanying financial statements have been prepared assuming the Company will continue as a going concern.  The future of the Company is dependent upon its ability to raise equity and debt financing, generate revenues and upon future profitable operations from the development of new business opportunities.  The financial statements do not include any adjustments relating to the recoverability of the Company’s assets or the payment of its liabilities in the event the Company cannot continue in existence.

Reclassifications

Reclassifications

Certain reclassifications have been made to the prior years’ consolidated condensed financial statements to conform to the current year’s presentation.