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

FORM 10-K
 
(Mark One)
x     ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THESECURITIESTHE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended September 30, 20122013

o       TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________
 
Commission file number 333-171636

Inspired Builders, Inc.
 (Name of small business issuer in its charter
 
Nevada 27-1989147
(State or other jurisdiction of
incorporation or organization)
 
(IRSI.R.S. Employer
Identification No.)
 
233 Wilshire Boulevard, Suite 830
Santa Monica, California
 90401
(Address of principal executive offices) (Zip Code)

(310) 526-8400
 (Registrant’s telephone number, including area code)
 
Securities registered pursuant tounder Section 12(g)12(b) of the Exchange Act:   Common Stock
Title of each class: Name of each exchange on which registered:
None None
Securities registered pursuant to Section 12(g) of the Act:   Common Stock

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes o    No x
 
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.  Yes o     No x

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  o

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  o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   x

Indicate by 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  o
 
  Accelerated filer                   o
 Non-accelerated filer    o (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 the Exchange Act).  Yes o    No  x

The aggregate market value of the voting and non-voting stock held by non-affiliates of the registrant, as of March 31, 2012,1, 2013, was approximately $0. All executive officers and directors of the registrant have been deemed, solely for the purpose of the foregoing calculation, to be "affiliates" of the registrant.

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 11,025,000.date, February 28, 2014: 11,125,000.
 
 
 
 
 
FORM 10-K
FOR THE FISCAL YEAR ENDED SEPTEMBER 31, 201230, 2013

INDEX

    PAGE
  PART I  
ITEM 1. BusinessBusiness. 3
ITEM 1A. Risk FactorsFactors. 34
ITEM 1B. Unresolved Staff CommentsComments. 34
ITEM 2. PropertiesProperties. 34
ITEM 3. Legal ProceedingsProceedings. 35
ITEM 4. Mine Safety DisclosuresDisclosures. 35
     
  PART II  
ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity SecuritiesSecurities. 35
ITEM 6. Selected Financial DataData. 45
ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsOperations. 45
ITEM 7A. Quantitative and Qualitative Disclosures About Market RiskRisk. 78
ITEM 8. Financial Statements and Supplementary DataData. F-1
ITEM 9. Changes in and Disagreements With Accountants on Accounting and Financial DisclosureDisclosure. 89
ITEM 9A. Controls and ProceduresProcedures. 89
ITEM 9B. Other InformationInformation. 810
     
  PART III  
ITEM 10. Directors, Executive Officers and Corporate GovernanceGovernance. 810
ITEM 11. Executive Compensation 911
ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder MattersMatters. 1012
ITEM 13. Certain Relationships and Related Transactions, and Director IndependenceIndependence. 1012
ITEM 14. Principal Accounting Fees and ServicesServices. 1113
     
  PART IV  
ITEM 15. Exhibits, Financial Statement Schedules 1213
     
SIGNATURES 1314
 
 
12
 

STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Except for the historical information contained herein, some of the statements in this Report contain forward-looking statements that involve risks and uncertainties. These statements are found in the sections entitled "Business," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Risk Factors." They include statements concerning: our business strategy; expectations of market and customer response; liquidity and capital expenditures; future sources of revenues; expansion of our product lines; addition of new product lines; and trends in industry activity generally. In some cases, you can identify forward-looking statements by words such as "may," "will," "should," "expect," "plan," "could," "anticipate," "intend," "believe," "estimate," "predict," "potential," "goal," or "continue" or similar terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including, but not limited to, the risks outlined under "Risk Factors," that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. For example, assumptions that could cause actual results to vary materially from future results include, but are not limited to: our ability to successfully develop and market our products to customers; our ability to generate customer demand for our products in our target markets; the development of our target markets and market opportunities; our ability to produce and deliver suitable products at competitive cost; market pricing for our products and for competing products; the extent of increasing competition; technological developments in our target markets and the development of alternate, competing technologies in them; and sales of shares by existing shareholders. 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. Unless we are required to do so under U.S. federal securities laws or other applicable laws, we do not intend to update or revise any forward-looking statements.
 
2
PART I
 
Item 1.   Business.

Overview

Inspired Builders, Inc., a Nevada Corporation, was located in Boston, Massachusetts. On January 13, 2012, pursuant to the change of control transaction, previously disclosed in the Company’s filing on Form 10-K dated as of January 13, 2012, we relocated to Santa Monica, California. Until the change of control transaction, we focused on repairingthe real estate construction services business through a residential property repair and providing home improvements for the homeowners.improvement business. .

Going forward,Since then we expect to redirecthave redirected the Company’s focus to acquiring, investing in, developing and managing real estate properties and related investments.  We have evaluated numerous real estate investment opportunities emphasizing commercial real estate development. Any such efforts in real estate will require substantial financial and management resources, which the Company does not currently possess.  Therefore, while we will seek to acquire these resources as a part of our business plans, there can be no assurance of our success, and therefore, in our ability to enter the real estate investment or any other market.

Agreement to Purchase of Duval Property

On June 24, 2013 the Company entered into an agreement with a related party to purchase a parcel of undeveloped land in Duval County, Florida.  The purchase price for the Duval property was $1,350,000, payable as to $750,000 by the Company’s delivery of a 3% mortgage in the amount of $750,000, which is due June 15, 2014.   The $600,000 balance of the purchase price was paid by approving the issuance to the seller of 100,000 shares of the Company’s common stock, $0.001 par value per share, which was valued by the parties at $6.00 per share.  Due to the related party nature of this transaction, the Company’s carrying value was deemed to be the historical basis of the property, $307,504.  The difference between the purchase price and the historical basis was treated as a deemed distribution and recorded against Additional Paid In Capital.
Joint Venture with Development Property Holdings, Inc.

As previously disclosed on Form 8-K filed on December 31, 2013, on December 10, 2013, we entered into a joint venture with Development Property Holdings, Inc. a California corporation, (the “Joint Venture”) to enter into and become a Florida joint venture for the purpose of acquiring certain commercial real property in the State of Florida. The Joint Venture will be vested 50% by each partner and all decisions, costs, expenses and profits will be divided evenly between the two partners. A copy of the Joint Venture Agreement is attached hereto as Exhibit 10.6.

To date, the Joint Venture has not executed and closed on any properties and is still searching for its first project.
3
Employees

As of January 14, 2013,7, 2014, other than our Chief Executive Officer, we have no0 employees.

Item 1A.  Risk Factors.

Smaller reporting companies are not required to provide the information required by this item.

Item 1B.  Unresolved Staff Comments.

None.

Item 2.  Properties.

Our principal executive office is now located at 233 Wilshire Boulevard, Suite 830, Santa Monica, California 90401, and our telephone number is (310) 526-8400. We do not have a lease agreement for this property. This property is owned by our sole officer and director and he allows us to use the space to run the business.
 
4
Item 33.  Legal Proceedings.

We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company, or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

Item 4. Mine Safety Disclosures.

Not applicable.
  
PART II

Item 5.  Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Our common stock commenced quotation on the OTC Bulletin Board under the trading symbol “ISRB” on April 8, 2011. The OTC Bulletin Board is generally considered to be a less active and efficient market than the NASDAQ Global Market, the NASDAQ Capital Market or any national exchange and will not provide investors with the liquidity that the NASDAQ Global Market, the NASDAQ Capital Market or a national exchange would offer.  Since being listed on the OTCBB in April 2011 our common stock has not been traded.
3

Recent Sales of Unregistered Securities

None.

Holders

As of January 14, 2013,February 25, 2014, we had approximately 3227 record holders.

Dividends

No dividends were declared on our common stock in the year ended September 30, 2012,2013, and it is anticipated that cash dividends will not be declared on our common stock in the foreseeable future.  Our dividend policy is subject to the discretion of our board of directors and depends upon a number of factors, including operating results, financial condition and general business conditions.  Holders of common stock are entitled to receive dividends as, if and when declared by our board of directors out of funds legally available therefor.  We may pay cash dividends if net income available to stockholders fully funds the proposed dividends, and the expected rate of earnings retention is consistent with capital needs, asset quality and overall financial condition.

Securities Authorized for Issuance under Equity Compensation Plan

None.

Item 6.  Selected Financial Data.

Smaller reporting companies are not required to provide the information required by this item.

Item 7.  Management’s Discussion and Analysis of Financial Conditions and Results Of Operations.

The following plan of operation provides information which management believes is relevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read along with our financial statements and notes thereto. This section includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.

5
Plan of Operations

We have commenced limited operations and we will require outside capital to implement our business model.

Inspired Builders, Inc., a Nevada Corporation, was located in Boston, Massachusetts. On January 13, 2012, pursuant to the change of control transaction, previously disclosed in the Company’s filing on Form 10-K dated as of January 13, 2012, we relocated to Santa Monica, California. Until the change of control transaction, we focused on repairing and providing home improvements for the homeowners.

Going forward, we expect to redirect the Company’s focus to acquiring, investing in, developing and managing real estate properties and related investments.  Any such efforts will require substantial financial and management resources, which the Company does not currently possess.  Therefore, while we will seek to acquire these resources as a part of our business plans, there can be no assurance of our success, and therefore, in our ability to enter the real estate investment or any other market.
4

Limited Operating History

We have generated no independent financial history and have not previously demonstrated that we will be able to expand our business. Our business is subject to risks inherent in growing an enterprise, including limited capital resources and possible rejection of our business model and/or sales methods.

Results of Operations

Comparison of the year ended September 30, 20122013 and 20112012

For the fiscal year ended September 30, 2012,2013, we had revenuerevenues of $0, as compared to $030,309$0 in the same period in 2011.2012. Operating expenses for the year ended September 30, 20122013 totaled $212,539$97,748 resulting in a net loss of $228,980,$132,799, as compared to $71,486_operating expenses of $212,539 and a net loss of $228,980 for the year ended September 30, 2011.2012. Expenses for the year ended September 30, 2012 was $212,5392013 consisted of $97,748 in general and administrative expenses, as compared to $71,486$212,539 of general administrative expenses for the same period in 2011.
Net Loss2012.

As a result of the factors described above, our net loss for the fiscal year ended September 30, 2012 was $228,980, or $0.00per common share (basic and diluted), as compared to $58,000or $0.00 for 2011..
Liquidity and Capital Resources

Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. We have been funding our operations thoughthrough the sale of our common stock.

Our net revenues are not sufficient to fund our operating expenses. At September 30, 2012,2013, we had a cash balance of $0.$857.   Since inception, we raised $6,500 from the sale of common stock and received proceeds from notes payable – related parties of $265,746 to fund our operating expenses, pay our obligations, and grow our company. We currently have no material commitments for capital expenditures. We may be required to raise additional funds, particularly if we are unable to generate positive cash flow as a result of our operations. We estimate that based on current plans and assumptions, that our available cash will not be sufficient to satisfy our cash requirements under our present operating expectations, without further financing, for up to 12 months. Other than working capital, we presently have no other alternative source of working capital. We maydo not have sufficient working capital to fund the expansion of our operations and to provide working capital necessary for our ongoing operations and obligations. We will need to raise significant additional capital to fund our operating expenses, pay our obligations, and grow our company. We do not anticipate that we will be profitable in 2013.2014. Therefore our future operations will be dependent on our ability to secure additional financing. Financing transactions may include the issuance of equity or debt securities, obtaining credit facilities, or other financing mechanisms. However, the trading price of our common stock and a downturn in the U.S. equity and debt markets could make it more difficult to obtain financing through the issuance of equity or debt securities. Even if we are able to raise the funds required, it is possible that we could incur unexpected costs and expenses, fail to collect amounts owed to us, or experience unexpected cash requirements that would force us to seek alternative financing. Furthermore, if we issue additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of our common stock. The inability to obtain additional capital will restrict our ability to grow and may reduce our ability to continue to conduct business operations. If we are unable to obtain additional financing, we will likely be required to curtail our marketing and development plans and possibly cease our operations.
Over the next twelve months, we plan on sustaining our business and, if our financial resources allow, expanding our marketing efforts in order to be able to implement our business and secure home remodeling jobs. In order to implement our business plan, we do not need additional capital to purchase inventory, supplies or machines. However, we do need capital to be able to advertise effectively and make sure that home owners know that we can provide the services they need.
 
 
56
 

We anticipate that depending on market conditions and our plan of operations, we may incur operating losses in the foreseeable future. Therefore, our auditors have raised substantial doubt about our ability to continue as a going concern.

Our liquidity may be negatively impacted by the significant costs associated with our public company reporting requirements, costs associated with newly applicable corporate governance requirements, including requirements under the Sarbanes-Oxley Act of 2002 and other rules implemented by the Securities and Exchange Commission. We expect all of these applicable rules and regulations to significantly increase our legal and financial compliance costs and to make some activities more time consuming and costly.

Critical Accounting Policies and Estimates

While our significant accounting policies are more fully described in Note 1 to our financial statements for the period ended September 30, 2011,2013, we believe that the following accounting policies are the most critical to aid you in fully understanding and evaluating this management discussion and analysis.

Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We continually evaluate our estimates, including those related to bad debts, recovery of long-lived assets, income taxes, and the valuation of real estate and equity transactions. We base our estimates on historical experience and on various other assumptions that we believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of the financial statements.

Revenue recognition

We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the purchase price is fixed or determinable and collectability is reasonably assured.  For all revenue sources discussed below, in accordance with ASC 605-45 “Principal Agent Considerations”, we recognize revenue net of amounts retained by third party entities pursuant to revenue sharing agreements. Our specific revenue recognition policies are as follows:

We recognize revenue from the acceptance of a home remodeling contract and the signing of the contract when the project is completed and collection is reasonably assured.

7
Stock-based compensation

We account for stock-based instruments issued to employees in accordance with ASC Topic 718. ASC Topic 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity based compensation issued to employees. There were no options outstanding as of September 30, 2010.2013. We account for non-employee share-based awards in accordance with ASC Topic 505-50.
 
Recent Accounting Pronouncements

In January 2010,Recent accounting pronouncements issued by the Financial Accounting Standards Board ("FASB") issued updated guidance to amendFASB (including its Emerging Issues Task Force), the disclosure requirements related to recurring and nonrecurring fair value measurements. This update requires new disclosures on significant transfers of assets and liabilities between Level 1 and Level 2 of the fair value hierarchy (including the reasons for these transfers)AICPA, and the reasons for any transfers inSEC, did not, or out of Level 3. This update also requires a reconciliation of recurring Level 3 measurements about purchases, sales, issuances and settlements on a gross basis. In addition to these new disclosure requirements, this update clarifies certain existing disclosure requirements. For example, this update clarifies that reporting entities are required to provide fair value measurement disclosures for each class of assets and liabilities rather than each major category of assets and liabilities. This update also clarifies the requirement for entities to disclose information about both the valuation techniques and inputs used in estimating Level 2 and Level 3 fair value measurements. This update will become effective for the interim and annual reporting period beginning January 1, 2010, except for the requirement to provide the Level 3 activity of purchases, sales, issuances, and settlements on a gross basis, which will become effective for the interim and annual reporting period beginning January 1, 2011. We will not be required to provide the amended disclosures for any previous periods presented for comparative purposes. Other than requiring additional disclosures, adoption of this update will not have a material effect on our financial statements.
6

In August 2010, the FASB issued an exposure draft on lease accounting that would require entities to recognize assets and liabilities arising from lease contracts on the balance sheet. The proposed exposure draft states that lessees and lessors should apply a “right-of-use model” in accounting for all leases. Under the proposed model, lessees would recognize an asset for the right to use the leased asset, and a liability for the obligation to make rental payments over the lease term. The lease term is defined as the longest possible term that is “more likely than not” to occur. The accounting by a lessor would reflect its retained exposure to the risks or benefits of the underlying leased asset. A lessor would recognize an asset representing its right to receive lease payments based on the expected term of the lease. Comments on this exposure draft were due by December 15, 2010 and the final standard is expected to be issued in the second quarter of 2011. The Company believes that the proposed standard, as currently drafted, will have neither a material impact on its reported financial position and reported results of operations, nor a material impact on the liquidity of the Company.

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expectedbelieved by management, to have a material impact on the Company’s present or future financial statements upon adoption.statements.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk.

Smaller reporting companies are not required to provide the information required by this item.
 
 
78
 
 
Item 8.  Financial Statements and Supplementary Data.

 
Report of Independent Registered Public Accounting Firm
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Shareholders,To the Board of Directors of:
Inspired Builders, Inc.

We have audited the accompanying financial statementsbalance sheet of Inspired Builders, Inc. which comprise the balance sheet at(the “Company”) as of  September 30, 20122013, and the related statementsstatement of operations, changes in shareholder equity,statement of stockholders’ deficit and cash flows for the year then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of theseended.  These financial statements in accordance with accounting principles generally accepted inare the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentationresponsibility of the financial statements that are free from material misstatement, whether due to error or fraud.

Auditor’s Responsibility

Company’s management.  Our responsibility is to express an opinion on these financialsfinancial statements based on our audit. 

We conducted our audit in accordance with auditingthe standards generally accepted inof the United States of America.Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements presented are free of material misstatement.

An audit involves performing procedures to obtain auditincludes examining, on a test basis, evidence aboutsupporting the amounts and disclosures in the financial statements.  The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluatingassessing the appropriateness of accounting policiesprinciples used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

statement presentation.  We believe that theour audit evidence we have obtained is sufficient and appropriate to provideprovides a reasonable basis for our audit opinion.

In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of Inspired Builders, Inc. as of September 30, 20122013 and the results of theirits operations and theirits cash flows for the yearperiod then ended,  in conformity with accounting principles generally accepted in the United States of America.

EmphasisThe accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  As discussed in Note 3 in the financial statements, the Company has a net loss of Matter$132,799, an accumulated deficit of $432,974 and a negative cash flow from continuing operations of $ 61,628. These factors raise substantial doubt about the Company's ability to continue as a going concern.  Management's plans concerning these matters are also described in Note 3.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
 
Liggett, Vogt & Webb, P.A.
Certified Public Accountants
Boynton Beach, Florida
February 28, 2014
F-1
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of Inspired Builders Inc.
We have audited the accompanying balance sheet of Inspired Builders Inc. as of September 30, 2012 and the related statements of operations, stockholders' deficit, and cash flows for the year in the period ended September 30, 2012. These financial statements are the responsibility of the Company's management.  Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Inspired Builders Inc. as of September 30, 2012, and the results of its operations and its cash flows for the year in the period ended September 30, 2012, in conformity with U.S. generally accepted accounting principles.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.  As discussed in Note 3 to the financial statements, the Company has suffered recurring losses and negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern.  Management’s plans in regard to these matters are also discussed in Note 3.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.uncertainty.

 
Donahue Associates LLC
Monmouth Beach, New JerseyN.J.
January 15, 2013
 
F-1
Inspired Builders, Inc.
Balance Sheets
 At September 30, 2012 and September 30, 2011
ASSETS 
September 30,
  
September 30,
 
  2012  2011 
Current Assets:      
  Cash
 $0  $1,205 
  Prepaid expense
  4,000   0 
    Total current assets $4,000  $1,205 
         
    Total assets $4,000  $1,205 
         
LIABILITIES AND SHAREHOLDERS' EQUITY        
         
Current Liabilities:        
  Accounts payable
 $17,429  $48,400 
  Loan payable-related party
  211,000   3,000 
    Total current liabilities $228,429  $51,400 
         
  Due to related party
  54,746   0 
         
Shareholders' equity:        
  Preferred stock, $0.001 par value, 5 million shares authorized, none outstanding
 $0  $0 
  Common stock- $0.001 par value, authorized 50,000,000 shares authorized,
        
    11,025,000 shares issued and outstanding at September 30, 2011 and
        
    11,025,000 shares issued and outstanding at September 30, 2012 $11,025  $11,025 
  Additional paid in capital
  9,975   9,975 
  Accumulated deficit
  (300,175)  (71,195)
    Total shareholders' equity (deficit)  (279,175)  (50,195)
         
    Total Liabilities & Shareholders' Equity (Deficit) $4,000  $1,205 
         
See the notes to the financial statements.        

 
 
F-2
 
 
Inspired Builders, Inc.
INSPIRED BUILDER, INC. 
BALANCE SHEETS 
  
ASSETS 
       
  As of September 30, 
  2013  2012 
ASSETS      
       
Current Assets:      
Cash $857  $- 
Prepaid expenses  -   4,000 
Total current assets  857   4,000 
         
Real estate  307,504   - 
         
Total assets $308,361  $4,000 
         
LIABILITIES AND STOCKHOLDERS’ DEFICIT 
  
Current Liabilities:        
Accounts payable and accrued expenses $74,600  $17,429 
Accrued salary  10,000     
Due to related parties
  3,711   54,746 
Mortgage payable - related party  750,000     
Notes payable - related parties
  324,520   211,000 
Total current liabilities  1,162,831   283,175 
         
Commitments and Contingencies: (See Note 10)
        
         
Stockholders' deficit:        
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding  -   - 
Common stock, $0.001 par value, 50,000,000 shares authorized, 11,125,000 and 11,025,000 shares outstanding, and 11,025,000 shares issued, respectively
  11,125   11,025 
Additional paid in capital  (432,621)  9,975 
Accumulated deficit  (432,974)  (300,175)
Total Stockholders’ deficit  (854,470)  (279,175)
         
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $308,361  $4,000 
Statements of Operations
For the Years Ended September 30, 2012 and September 30, 2011
 
  September 30,  September 30, 
  2012  2011 
       
Construction revenue $0  $30,309 
Cost of materials & labor  0   (16,607)
  Gross profit $0  $13,702 
         
General & administrative expenses:        
  Administration $212,539  $71,486 
    Total general & administrative expenses  212,539   71,486 
         
Net loss from operations $(212,539) $(57,784)
         
Other expense:        
  Interest expense  (16,441)  (216)
         
Net loss before provision for income taxes $(228,980) $(58,000)
         
Provision for income taxes  0   0 
         
Net loss $(228,980) $(58,000)
         
Net loss per share: basic and diluted $(0.02) $(0.01)
Weighted shares outstanding  11,025,000   10,929,739 
         
See the notes to the financial statements.        
See accompanying notes to financial statements.
 
 
F-3
 
 
Inspired Builders, Inc.
Statement of Cash Flows
For the Years Ended September 30, 2012 and September 30, 2011
INSPIRED BUILDERS, INC.
STATEMENTS OF OPERATIONS
       
  For the Years Ended September 30, 
  2013  2012 
       
OPERATING EXPENSES      
General and administrative $97,748  $212,539 
      Total operating expenses  97,748   212,539 
         
LOSS FROM OPERATIONS  (97,748)  (212,539)
         
Other expenses        
Interest expense  35,051   16,441 
         
Net Loss before provision for income taxes  (132,799)  (228,980)
         
Provision for income taxes  -   - 
         
NET LOSS $(132,799) $(228,980)
         
Net loss per share - basic and diluted $(0.01) $(0.02)
         
Weighted average number of shares outstanding during the period - basic and diluted  11,051,849   11,025,000 
 
  
September 30,
  
September 30,
 
  2012  2011 
Operating Activities:      
  Net loss
 $(228,980) $(58,000)
  Adjustments to reconcile net loss items not requiring the use of cash:
        
    Consulting expense  0   1,250 
Changes in other operating assets and liabilities :        
  Prepaid expense  (4,000)  0 
  Accounts payable  (30,971)  47,730 
Net cash used by operations $(263,951) $(9,020)
         
Financing activities:        
  Issuance of common stock $0  $6,500 
  Proceeds from note payable  208,000   3,000 
  Advances from related party  54,746   0 
  Subscriptions received  0   0 
Net cash provided by financing activities  262,746   9,500 
         
Net increase in cash $(1,205) $480 
         
Cash balance at beginning of the period  1,205   725 
         
Cash balance at September 30th $0  $1,205 
         
Supplemental disclosures of cash flow information:        
  Interest paid during the fiscal year
 $0  $0 
  Income taxes paid during the fiscal year
 $0  $0 
         
See the notes to the financial statements.        
See accompanying notes to financial statements.
 
 
F-4
 
INSPIRED BUILDERS, INC 
STATEMENTS OF CASH FLOWS 
       
  For the Years Ended September 30, 
  2013  2012 
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net loss $(132,799) $(228,980)
Adjustments to reconcile net loss to net cash used in operating activities:     
Changes in operating assets and liabilities:        
(Increase) / Decrease in prepaid expenses  4,000   (4,000)
Increase / (Decrease) in accounts payable and accrued interest  57,171   (30,971)
Increase in accrued salary  10,000   - 
Net Cash Used In Operating Activities  (61,628)  (263,951)
         
CASH FLOWS FROM FINANCING ACTIVITIES:        
Advances - related parties
  3,711   54,746 
Proceeds from notes payable - related parties
  58,774   208,000 
Net Cash Provided By Financing Activities  62,485   262,746 
         
NET INCREASE / DECREASE IN CASH  857   (1,205)
         
CASH AT BEGINNING OF YEAR
  -   1,205 
         
CASH AT END OF YEAR
 $857  $- 
         
Supplemental disclosure of non cash investing & financing activities:     
Cash paid for income taxes $-  $- 
Cash paid for interest expense $-  $- 
 
Inspired Builders, Inc.
StatementOn June 24, 2013 the Company authorized the issuance of Shareholder Deficit
For100,000 shares of common stock and a note payable of $750,000 as consideration for the Years Ended September 30, 2012purchase of real estate from a related party. The real estate was recorded at its historical cost and September 30, 2011
  Common  Par  Additional Paid in  Accumulated  Total Equity 
  Shares *  Value  capital  Deficit  (Deficit) 
                
Balance at September 30, 2010  10,250,000  $10,250  $3,000  $(13,195) $55 
                     
Common stock issued to founder and consultants  125,000  $125  $1,125      $1,250 
                     
Issuance of common stock  650,000   650   5,850       6,500 
                     
Net loss              (58,000)  (58,000)
                     
Balance at September 30, 2011  11,025,000  $11,025  $9,975  $(71,195) $(50,195)
                     
Net loss              (228,980)  (228,980)
                     
Balance at September 30, 2012  11,025,000  $11,025  $9,975  $(300,175) $(279,175)
                     
See the notes to the financial statements.                    
the difference between the historical costs and the consideration paid was treated as a return of capital of $442,496.
 
See accompanying notes to financial statements.
 
F-5
 
INSPIRED BUILDERS, INC
STATEMENT OF STOCKHOLDERS' DEFICIT
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
 
              Additional     Total 
  Preferred Stock  Common Stock  Paid-in  Accumulated  Stockholders' 
  Shares  Par Value  Shares  Par Value  Capital  Deficit  Deficit 
                      
Balance, September 30, 2011  -  $-   11,025,000  $11,025  $9,975  $(71,195) $(50,195)
                             
Net Loss for the year ended September 30, 2012  -   -   -   -   -   (228,980)  (228,980)
                             
Balance, September 30, 2012  -   -   11,025,000   11,025   9,975   (300,175)  (279,175)
                             
Net Loss for year ended September 30, 2013  -   -   -   -   -   (132,799)  (132,799)
                             
Common stock approved for issuance for purchase of real estate  -   -   100,000   100   (442,596)  -   (442,496)
                             
Balance September 30, 2013  -  $-   11,125,000  $11,125  $(432,621) $(432,974) $(854,470)
 
See accompanying notes to financial statements.
F-6
Inspired Builders, Inc.
Notes to Financial Statements
For the Years Ended September 30, 20122013 and September 30, 20112012
 
1.   Nature of Operations

Inspired Builders, Inc., a Nevada Corporation, (the “Company”) was located in Boston, Massachusetts. On January 13, 2012, pursuant to the change of control transaction previously disclosedincorporated in the Company’s filing on Form 10-K dated asState of January 13, 2012, we relocatedNevada in February 2010.  The Company is a construction company that specializes in residential home repair and home improvements.  The Company contracts with homeowners to Santa Monica, California. Until the recent change of control transaction, we focused on repairing and providingbuild custom home improvements, including shelving for the homeowners.

Going forward, we expect to redirectclosets, bathroom remodeling, upgrading home entertainment centers and replacing flooring.  In May 2013, the Company’s focusboard of directors determined that conversion of the Company’s corporate status to acquiring, investing in, developing and managing real estate properties and related investments.  Any such efforts will require substantial financial and management resources, which the Company does not currently possess.  Therefore, while we will seek to acquire these resources asthat of a part of our business plans, there can be no assurance of our success, and therefore, in our ability to enter the real estate investment or any other market. trust (a “REIT”) would best support the company’s strategic direction.  Accordingly, the board passed and adopted a resolution for the Company to be treated as a REIT.  As of February 28, 2014, the Company has not completed the necessary filings to change its status with the Internal Revenue Services.
 
2. Summary of Significant Accounting Policies
 
Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions impact, among others, the following; estimates of the probability and potential magnitude of contingent liabilities, and the valuation allowance for deferred tax assets due to continuing operating losses.losses, valuation of shares issued in connection with the purchase of real estate, the valuation of the real estate and the evaluation of any impairment on the real estate.
 
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.

Cash

The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents.  There were no cash equivalents at September 30, 20122013 and 2011.
2012.
The Company minimizes its credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits.
 
Fair Value of Financial Instruments
 
For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amounts of cash, loan payable, and accounts payable and accrued expenses reported in the balance sheets are estimated by management to approximate fair value at September 30, 20122013 and September 30, 2011.2012.
 
Revenue Recognition
 
The Company records revenue for services rendered when all of the following have occurred: (1) persuasive evidence of an arrangement exists, (2) the product/service is delivered, (3) the sales price to the customer is fixed or determinable, and (4) collectability of the related customer receivable is reasonably assured. 
F-6
 
Income Taxes

The Company accounts for income taxes in accordance with generally accepted accounting principles which requires an asset and liability approach to financial accounting and reporting for income taxes.  Deferred income tax assets and liabilities are computed annually for differences between financial statement and income tax bases of assets and liabilities that will result in taxable income or deductible expenses in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established when necessary to reduce deferred tax assets and liabilities to the amount expected to be realized.  Income tax expense is the tax payable or refundable for the period adjusted for the change during the period in deferred tax assets and liabilities.
 
The Company follows the accounting requirements associated with uncertainty in income taxes using the provisions of Financial Accounting Standards Board (FASB) ASC 740,   Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the positions will be sustained upon examination by the tax authorities.  It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  As of September 30, 20122013 and September 30, 2011,2012, the Company has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements.  All tax returns from fiscal years 20082010 to 20112013 are subject to IRS audit.

F-7
Earnings per share

In accordance with accounting guidance now codified as FASB ASC Topic 260, “Earnings per Share,”  basic earnings (loss) per share is computed by dividing net income (loss) by weighted average number of shares of common stock outstanding during each period.  Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period.
 
The Company did not have any potential common stock equivalents at September 30, 20122013 and 2011.2012.

Recent accounting pronouncements

In May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs,”    (“ASU 2011-04”). This standard results in a common requirement between the FASB and the International Accounting Standards Board for measuring fair value and disclosing information about fair value measurements. ASU 2011-04 is effective for fiscal years and interim periods beginning after December 15, 2011. The adoption of this accounting pronouncement did not have any effect on our financial position and results of operations.

All other newRecent accounting pronouncements issued butby the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC, did not, yet effective or adopted have been deemed not to be relevant to us, hence are not expectedbelieved by management, to have anya material impact once adopted.
date.on the Company’s present or future financial statements.

3. Going Concern

As reflected in the accompanying financial statements, the Company has a net loss of $228,980$137,399 and net cash used in operations of $263,951$61,628 for the year ended September 30, 2012.2013. In addition, the Company has not had construction revenues since May 2011 and the only prospect for positive cash flow is through the issuance of common stock or debt.

The ability of the Company to continue its operations is dependent on Management's plans, which include the raising of capital through debt and/or equity markets with some additional funding from other traditional financing sources, including term notes, until such time that funds provided by operations are sufficient to fund working capital requirements. There is no plan or knowledge of any tangible financing source or discussions with any investors to raise additional capital.  If the Company does not begin to generate sufficient revenue or raise additional funds through a financing, the Company may need to incur additional liabilities with certain related parties to sustain the Company’s existence. The Company will require additional funding to finance the growth of its future operations as well as to achieve its strategic objectives.   This raises substantial doubt about its ability to continue as a going concern. The Company believes its current available cash along with anticipated revenues may be insufficient to meet its cash needs for the near future. There can be no assurance that financing will be available in amounts or terms acceptable toability of the Company if at all.
The accompanying financial statements have been prepared onto continue as a going concern basis, which contemplatesis dependent on the realization of assetsCompany’s ability to raise additional capital and the satisfaction of liabilities in the normal course of business.  Thesegenerate revenue. The financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary shouldif the Company beis unable to continue as a going concern.

4. Note PayableReal Estate

On January 10, 2011June 24, 2013, the Company borrowed $3,000 pursuantentered into an agreement with a related party to purchase a parcel of undeveloped land in Duval County, Florida. The purchase price for the Duval property was $1,350,000, payable as $750,000 by the Company’s delivery of its 3% note payable. On November 16, 2011and mortgage, due June 15, 2014. The $600,000 balance of the Company borrowed an additional $2,000 pursuantpurchase price was paid by approving the issuance to a note payable under the same terms. In January 2012 an additional $4,500seller of 100,000 shares of the Company’s common stock. The $0.001 par value per share was advanced undervalued by the same terms. The loan is payable one year fromparties at $6.00 per share, based on the closing price of the stock on the date of issuance and accrues interestthe closing. In accordance with SAB 7310.1, transfers of nonmonetary assets for stock or other consideration of the registrant are recorded at a ratethe predecessor cost. Accordingly, the Company recorded the value of 10% per annum. On January 12, 2012 the loan amountreal estate acquired at the historical basis of $9,500 and accrued interest of $316 were repaid.
F-7
$307,504.
 
5. NoteEmployment Agreement

On September 1, 2013 the Company entered into a three year employment contract with its CEO. The CEO is to be paid $10,000 per month plus reimbursement for expenses and bonuses as determined by the board.  The CEO will be entitled to one week paid vacation and is subject to a one year non-compete agreement at the end of the employment contract.  As of September 30, 2013, the Company has accrued $10,000, for amounts due to the CEO.

6. Mortgage Payable – Related Party

On June 24, 2013 the Company entered into an agreement with a related party to purchase a parcel of undeveloped land in Duval County, Florida. The purchase price for the Duval property was $1,350,000, payable as $750,000 by the Company’s delivery of its 3% note and mortgage, due June 15, 2014. The $600,000 balance of the purchase price was paid by approving the issuance to the seller of 100,000 shares of the Company’s common stock. The $0.001 par value per share was valued by the parties at $6.00 per share, based on the closing price of the stock on the date of the closing. As of September 30, 2013 the Company has accrued interest of $6,125 due on the mortgage.
7. Notes Payable – Related Parties
  
On January 13, 2012 the Company entered into a 12 month unsecured promissory note in the amount of $211,000.  Interest shall accrueaccrues in arrears on the principal of this Note outstanding from time to timeprincipal at the rate of ten percent (10.00%) per annum.  Interest shall be payable on the last day of each quarter, commencing March 30, 2012, and continuing until the Maturity Date.maturity date.  Should Makerthe maker fail to pay the entire Loanprincipal and accrued interest by the Maturity Date, Makermaturity date, the maker agrees that the interest rate shall increase to Twelvetwelve percent (12.00%) per annum. On May 10, 2013, the Company and the related party agreed to extend the maturity of the loan for an additional year or until January 13, 2014.   The loan maturity dates were further extended to January 13, 2015 on January 13, 2014.  On May 22, 2012, the Company borrowed an additional $32,714 from the related party, with the same terms. On September 17, 2012, the Company borrowed an additional $22,033 from the related party, with the same terms.  On February 7, 2013, the Company borrowed an additional $28,773 from the related party, with the same terms, and on July 31, 2013, the Company borrowed an additional $30,000 from the related party, with the same terms.  The total outstanding principal at September 30, 2013 amounted to $324,529. Accrued interest at September 30, 2013, and September 30, 2012, amounted to $16,341.$45,768 and $16,341, respectively.

6.
F-8
8. Stockholders’ Equity
 
On FebruaryJune 24, 2010 (inception),2013, the Company issued 10,000,000approved the issuance of 100,000 shares of common stock to a related party as partial consideration for the founder ($0.001/share).purchase of real estate.  The Company expensedshares were valued at the $10,000 immediately.historical cost of the consideration given.  The difference between the historical cost and the consideration paid was treated as a return of capital of $442,496.
  
During fiscal year 2010, the Company issued 250,000 shares of common stock for proceeds of $2,500 ($0.01/share).9.  Income Taxes
 
During fiscal year 2011, the Company issued 650,000 shares of common stock for proceeds of $6,500 ($0.01/share).
Provision for income taxes is comprised of the following:      
       
  September 30, 2013  September 30, 2012 
       
Current tax expense:        
  Federal $0  $0 
  State  0   0 
  Total $0  $0 
 
During fiscal year 2011, the Company issued 125,000 shares of common stock to consultants for services rendered valued at $1,250 ($0.01/share).
A reconciliation of provision for income taxes at the statutory rate to provision for income taxes at the Company's effective tax rate is as follows:
      
Statutory U.S. federal rate  34%  34%
Statutory state  income tax  5.83%  0% 
Less valuation allowance  (39.83)%  (34)%
Effective rate  0%  0%
         
Deferred income taxes are comprised of the following:        
         
Tax loss carryforwards $172,232  $119,332 
Less valuation allowance  (172,232)  (119,332)
Deferred tax benefit $0  $0 
 
7.The increase in the valuation allowance for the year ended September 30, 2013 was an increase of $52,900.

10. Commitments and Contingencies

From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business.  However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise that may harm its business. The Company is currently not aware of any such legal proceedings or claims that they believe will have, individually or in the aggregate, a material adverse affecteffect on its business, financial condition or operating results.
 

F-8
8.  Income Taxes
Provision for income taxes is comprised of the following:      
  
September 30, 2012
  
September 30, 2012
 
       
Net loss before provision for income taxes $(228,980) $(58,000)
         
Current tax expense:        
  Federal
 $0  $0 
  State
  0   0 
  Total
 $0  $0 
         
Less deferred tax benefit:        
  Tax loss carryforwards
  (119,332)  (19,918)
  Allowance for recoverability
  119,332   19,918 
  Provision for income taxes
 $0  $0 
         
A reconciliation of provision for income taxes at the statutory rate to provision     
for income taxes at the Company's effective tax rate is as follows:     
         
Statutory U.S. federal rate  34%  34%
Statutory state and local income tax  10%  10%
Less allowance for tax recoverability  -44%  -44%
Effective rate  0%  0%
         
Deferred income taxes are comprised of the following:        
         
Tax loss carryforwards $119,332  $19,918 
Allowance for recoverability  (119,332)  (19,918)
Deferred tax benefit $0  $0 
9.11. Concentration of Credit Risk

The Company relies heavily on the support of its president and majority shareholder.  A withdrawal of this support, for any reason, will have a material adverse affecteffect on the Company’s financial position and its operations.
 
10.12.  Related Party Transaction

On May 22, 2012 the Company borrowed $32,714 from the related party at 10% interest due on demand. On September 17, 2012 the Company borrowed an additional $22,033 from the same related party with the interest at 10% due on demand.

On January 13, 2012 the Company entered into a 12 month unsecured promissory note in the amount of $211,000 with a related party.$211,000.  Interest shall accrueaccrues in arrears on the principal of this Note outstanding from time to timeprincipal at the rate of ten percent (10.00%) per annum.  Interest shall be payable on the last day of each quarter, commencing March 30, 2012, and continuing until the Maturity Date.maturity date.  Should Makerthe maker fail to pay the entire Loanprincipal and accrued interest by the Maturity Date, Makermaturity date, the maker agrees that the interest rate shall increase to Twelvetwelve percent (12.00%) per annum.

10. Subsequent Events

annum. On May 10, 2013, the Company and the related party agreed to extend the maturity of the loan for an additional year or until January 13, 2014.  The loan maturity dates were further extended to January 13, 2015 on January 13, 2014.  On May 22, 2012, the Company has made a review of material subsequent eventsborrowed an additional $32,714 from the related party, with the same terms. On September 17, 2012, the Company borrowed an additional $22,033 from the related party, with the same terms.  On February 7, 2013, the Company borrowed an additional $28,773 from the related party, with the same terms, and on July 31, 2013, the Company borrowed an additional $30,000 from the related party, with the same terms Total outstanding principal at September 30, 2013 amounted to $324,529. Accrued interest at September 30, 2013, and September 30, 2012, through the date of this reportamounted to $45,768 and found the following material subsequent events reportable during this period:$16,341, respectively.
 
 
F-9
 
On June 24, 2013 the Company entered into an agreement with a related party to purchase a parcel of undeveloped land in Duval County, Florida. The purchase price for the Duval property was $1,350,000, payable as $750,000 by the Company’s delivery of its 3% note and mortgage, due June 15, 2014. The $600,000 balance of the purchase price was paid by approving the issuance to the seller of 100,000 shares of the Company’s common stock. In accordance with SAB 7310.1, transfers of nonmonetary assets for stock or other consideration of the registrant are recorded at the predecessor cost. Accordingly, the Company recorded the value of the real estate acquired at the historical basis of $307,504. As of September 30, 2013 the Company recorded accrued interest of $6,125
 
On September 1, 2013 the Company entered into a three year employment contract with its CEO. The CEO is to be paid $10,000 per month plus reimbursement for expenses and bonuses as determined by the board.  The CEO will be entitled to one week paid vacation and is subject to a one year non-compete agreement at the end of the employment contract.  As of September 30, 2013, the Company has accrued $10,000, for amounts due to the CEO.
13. Subsequent Events
On November 14, 2013, a related party advanced the Company $19,960 for working capital.

On November 13, 2013, a related party entered into an unsecured note payable for $25,000 with an interest rate of 10% due November 13, 2014.

On December 20, 2013, a related party advanced the Company $2,500 for working capital.

On January 13, 2014, a related party entered into an unsecured note payable for $3,352 with an interest rate of 5% due January 13, 2015.

On January 7, 2014, a related party advanced the Company $5,000 for working capital.

On January 24, 2014, a related party advanced the Company $10,000 to pay for 1 months salary to our Chief Executive Officer.
In December 2013 the Company entered into a Joint Venture Agreement with Development Property Holdings, Inc. a California corporation, to enter into and become a Florida joint venture for the purpose of acquiring certain commercial real property in the State of Florida. The Joint Venture will be vested 50% by each partner and all decisions, costs, expenses and profits will be divided evenly between the two partners. To date, the Joint Venture has not executed and closed on any properties and is still searching for its first project.

On February 7, 2014, the Company issued 100,000 shares to the seller of the property, a related party, which closed on June 24, 2013.
F-10
Item 9.  Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.

None.

Item 9A.  Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (“Exchange Act”), the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer (“CEO”) (the Company’s principal executive officer) and Chief Financial Officer (“CFO”) (the Company’s principal financial and accounting officer), of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures are not effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Management's Annual Report on Internal Control Over Financial Reporting.

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting for the Company.  Our internal control system was designed to, in general, provide reasonable assurance to the Company’s management and board regarding the preparation and fair presentation of published financial statements, but because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of the Company’s internal control over financial reporting as of September 30, 2012.2013.  The framework used by management in making that assessment was the criteria set forth in the document entitled “ Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that assessment, our management has determined that as of September 30, 2012,2013, the Company’s internal control over financial reporting was not effective for the purposes for which it is intended.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis. In its assessment of the effectiveness of internal control over our financial reporting as of September 30, 2013 the Company determined that the following items constituted a material weakness:
·The Company does not currently have an active Chief Financial Officer to oversee the day to day transactions and operations, which ensures the timely and accurate identification and reporting of all necessary transactions.
·The Company does not have an independent audit committee that can review and approve significant transactions and the reporting process and provide independent oversight of the Company.
·The Company is dependent on related parties for funding and decision making, which is provided on a very limited basis, therefore accurate accounting, record retention and financial disclosures are not performed in a timely and efficient manner.
·
The Company failed to issue shares approved for issuance as part of the purchase of property, which closed in June 2013.

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm as we are a smaller reporting company and not required to provide the report.
 
9
Changes in Internal ControlControls over Financial Reporting

No change in our system of internal control over financial reporting occurred during the period covered by this report, fourth quarter of the fiscal year ended September 30, 2012 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information.

None.
In December 2013 the Company entered into a Joint Venture Agreement with Development Property Holdings, Inc. a California corporation, to enter into and become a Florida joint venture for the purpose of acquiring certain commercial real property in the State of Florida. The Joint Venture will be vested 50% by each partner and all decisions, costs, expenses and profits will be divided evenly between the two partners. To date, the Joint Venture has not executed and closed on any properties and is still searching for its first project.
 
PART III

Item 10.  Directors, Executive Officers and Corporate Governance
 
The following table sets forth the name and age of our sole officerofficers and director as of January 15, 2013, immediately prior to the filing of this Annual Report on Form 10-K.September 30, 2013. Our Executive Officers are appointed by our Board of Directors and hold their offices until they resign or are removed by the Board. Our directors are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with our bylaws.
 
NameAgePosition
Carlos P. SalasMatthew Nordgren4230Chief Executive Officer, Chief Operating Officer and Director

Set forth below is a brief description of the background and business experience of our executive officer and director for the past five years.
8

Carlos P. Salas,Matthew Nordgren, age 30, has served as the Chief Executive Officer

of Nordco Consulting since he founded it in February 2009.  From 2007 to 2010, Mr. Salas is an ExecutiveNordgren has been a partner and Vice President Direct Investments of COR Capital Corporation. Previously,Schlegel Woy Management.  Since 2008, Mr. Nordgren has been the Texas President of VEEV, where he co-founded Dolphin Direct Equity Partners, LP, a New York-based private-equity fund focused on structured debtis responsible for marketing, distribution, and equity investments in small-market companies. Prior to forming Dolphin,sales within the State of Texas.  Since 2002, Mr. SalasNordgren has served as CFO of a private capital equipment manufacturer to lead its financial and operational restructuring. Before this assignment, he was an investment banker with Donaldson, Lufkin & Jenrette,executive at Nordco, Inc. and Credit Suisse First Boston, each in Los Angeles, providing M&A and corporate-finance advice to middle-market companies. Mr. Salas is a member of the State Bar of California and practiced law with Cleary, Gottlieb, Steen & Hamilton in New York,, where he advised clientsis responsible for corporate development and marketing strategies. Mr. Nordgren received his B.A. in connection with debt and equity issuances and cross-border M&A transactions. In addition, he has served ongovernment from the boards of directors of several public and private companies, and currently serves on the board of Williams Controls, Inc. Mr. Salas is a graduate of The University of Chicago (J.D.) and New York University (B.A.)Texas.
 
Director Independence and Board Committees

We do not have any independent directors on our board of directors. Our board of directors solely consists of Carlos Salas,Brendan Powderly, our Chief Executive Officer, who is not independent. Our board of directors does not have any committees, as companies whose securities are traded on the OTC Bulletin Board are not required to have board committees. However, if, at such time in the future, we appoint independent directors on our board we expect to form the appropriate board committees.

We currently do not have a standing audit, nominating or compensation committee.  Our board of directors handles functions that would otherwise be handled by each of the committees.  We believe that there is not a need for a nominating committee at this time because our board of directors consists of solely one director who is not independent and who is the only decision maker. At such point when we have independent board of directors we will need to establish a nomination committee.
 
Term of Office

Our directors are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with our bylaws. Our officers are appointed by our board of directors and hold office until removed by the board.

Code of Ethics

We have not adopted a code of ethics that applies to our principal executive officer and principal financial officer. We intend to adopt a Code of Ethics as we develop our business.
 
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Item 11.  Executive Compensation.

The following summary compensation table sets forth all compensation awarded to, earned by, or paid to the named executive officers paid by us for fiscal 2012year 2013 and fiscal 2011.year 2012.
 
SUMMARY COMPENSATION TABLE
 
Name and Principal Position Year 
Salary
($)
 
Bonus
($)
 
Stock
 Awards
($)
 
Option Awards
($)
 Non-Equity Incentive Plan Compensation ($) 
Non-Qualified Deferred Compensation Earnings
($)
  All Other Compensation ($) 
Totals
($)
 
Carlos Salas, 2011 $0 0  0 0  0 0 $0 $0 
Chief Executive Officer, Chief Operating Officer 2012 $0 0  0 0  0 0 $0 $0 
                         
Brendan Powderly, 2011 $0 0  0 0  0 0 $10,293(3) $10,293 
Former Chief Executive Officer(2) 2012 $
N/A
 
N/A
  
N/A
 
N/A
  
N/A
 
N/A
 $
N/A
 $
N/A
 
Name and Principal Position Year 
Salary
($)
 
Bonus
($)
 
Stock
 Awards
($)
 
Option
Awards
($)
 
Non-Equity
Incentive Plan
Compensation
($)
 
Non-Qualified
Deferred
Compensation
Earnings
($)
 
 All Other
Compensation
($)
 
Totals
($)
 
Matthew Nordgren, 2013 $10,000 0  0 0  0 0 $0 $10,000 
Chief Executive Officer (1) 2012 $0 0  0 0  0 0 $0 $0 
                         
Carlos Salas, 2013 $0 0  0 0  0 0 $0 $0 
Chief Executive Officer, Chief Operating Officer (2) 2012 $0 0  0 0  0 0 $0 $0 

(1)Brendan Powderly resignedMatthew Nordgren was appointed as a result of the change of control transactionChief Executive Officer on January 13, 2012.February 22, 2013.
(2)Represents personal expenses paid for byCarlos Salas resigned on February 22, 2013 as the Chief Executive Officer and director of the Company.

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Compensation of Directors

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

Employment Agreements
 
None.On September 1, 2013, the Company approved an employment agreement for Matthew Nordgren. Pursuant to the employment agreement, Mr. Nordgren shall be paid $10,000 per month and is eligible for an annual bonus in stock or cash. The term of the employment agreement is for 3-years. A copy of the Employment Agreement is attached hereto as Exhibit 10.1.

Pursuant to the terms of the change of control, Mr. Powderly terminated any employment agreement he had with the Company and waived any rights to any payments due to him under this employment agreement.

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Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The following table provides the names and addresses of each person known to us to own more than 5% of our outstanding shares of common stock as of January 14, 2013,February 25, 2014, and by the officers and directors, individually and as a group. Except as otherwise indicated, all shares are owned directly and the shareholders listed possesses sole voting and investment power with respect to the shares shown.

Name Number of Shares Beneficially Owned  Percent of Class (1) 
         
Executive Officers and Directors        
Carlos P. Salas; 233 Wilshire Boulevard, Suite 830, Santa Monica, CA 90401  0    *
All Executive Officers and Directors as a group (1 person)  0   0%
5% Shareholders        
Brendan Powderly; 288 North Street, Georgetown, Massachusetts 01833  10,000,000   90.70%
Name 
Number of
Shares
Beneficially
Owned
  
Percent
of
Class (1)
 
Matthew Nordgren; 233 Wilshire Boulevard, Suite 830, Santa Monica, CA 90401  0    *
All Executive Officers and Directors as a group (1 person)  0   *%
Swan Associates Group, LLC  3,508,333   31.536%

* denotes ownership of less than 1%.

(1)
Based on 11,025,00011,125,000 shares of common stock outstanding as of January 15, 2013
February 25, 2014.

Item 13.  Certain Relationships and Related Transactions, and Director Independence.
 
NoneOther than the above, none of the following persons has any direct or indirect material interest in any transaction to which we are a party since our incorporation or in any proposed transaction to which we are proposed to be a party:

 (A)Any of our directors or officers;
 (B)Any proposed nominee for election as our director;
 (C)Any person who beneficially owns, directly or indirectly, shares carrying more than 10% of the voting rights attached to our common stock; or
 (D)Any relative or spouse of any of the foregoing persons, or any relative of such spouse, who has the same house as such person or who is a director or officer of any parent or subsidiary of our company.
 
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Director Independence

We do not have any independent directors. Because our common stock is not currently listed on a national securities exchange, we have used the definition of “independence” of The NASDAQ Stock Market to make this determination.  NASDAQ Listing Rule 5605(a)(2) provides that an “independent director” is a person other than an officer or employee of the company or any other individual having a relationship which, in the opinion of the Company’s Board of Directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.  The NASDAQ listing rules provide that a director cannot be considered independent if:

●
the director is, or at any time during the past three years was, an employee of the company;
●the director or a family member of the director accepted any compensation from the company in excess of $120,000 during any period of 12 consecutive months within the three years preceding the independence determination (subject to certain exclusions, including, among other things, compensation for board or board committee service);

●
a family member of the director is, or at any time during the past three years was, an executive officer of the company;
●the director or a family member of the director is a partner in, controlling stockholder of, or an executive officer of an entity to which the company made, or from which the company received, payments in the current or any of the past three fiscal years that exceed 5% of the recipient’s consolidated gross revenue for that year or $200,000, whichever is greater (subject to certain exclusions);

●
the director or a family member of the director is employed as an executive officer of an entity where, at any time during the past three years, any of the executive officers of the company served on the compensation committee of such other entity; or
●the director or a family member of the director is a current partner of the company’s outside auditor, or at any time during the past three years was a partner or employee of the company’s outside auditor, and who worked on the company’s audit.

Carlos SalasMatthew Nordgren is not considered independent because he is an executive officer of the Company.

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We do not currently have a separately designated audit, nominating or compensation committee.

Item 14.  Principal Accounting Fees and Services.

Audit Fees

For the Company’s fiscal year ended September 30, 2013 and 2012, we have incurred $6,500$25,000 and $6,000, respectively, for professional services rendered for the audit and reviews of our financial statements.
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All Other Fees (including, Audit Related Fees and Tax Fees)

None.

Effective May 6, 2003, the Securities and Exchange Commission adopted rules that require that before our auditor is engaged by us to render any auditing or permitted non-audit related service, the engagement be:
 
●approved by our audit committee; or

●entered into pursuant to pre-approval policies and procedures established by the audit committee, provided the policies and procedures are detailed as to the particular  service,  the  audit committee is informed of each service, and such policies and procedures do not include delegation of the audit committee’s responsibilities to management.

We do not have an audit committee.  Our entire board of directors pre-approves all services provided by our independent auditors.

The pre-approval process has just been implemented in response to the new rules. Therefore, our board of directors does not have records addressing the percentage of pre-approved audit fees.  However, all of the above services and fees were reviewed and approved by the entire board of directors either before or after the respective services were rendered.
 
PART IV
 
ITEMItem 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES.Exhibits, Financial Statement Schedules.
 
(a) Documents filed as part of this Annual Report

1. Financial Statements

2. Financial Statement Schedules

3. Exhibits
 
Exhibit No.10.1  Title of DocumentEmployment Agreement for Matthew Nordgren
10.2  Purchase and Sale Agreement between the Company for the Duval property (1)
10.3Assignment of Special Warranty Deed to the Duval Property (1)
10.4Secured $750,000 promissory note of the Company (1)
10.5Mortgage and Security Agreement on the Duval property (1)
10.6Joint Venture Agreement between Inspired Builders, Inc. and Development Property Holdings, Inc. dated December 10, 2013.
31.1  Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1  
Certification of Principal Executive Officer and Principal Financial Officer, pursuant to Rule 13a-14(b) of the Exchange Act and18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 20022002.
101.INS* XBRL Instance Document
101.SCH* XBRL Taxonomy Schema
101.CAL* XBRL Taxonomy Calculation Linkbase
101.DEF* XBRL Taxonomy Definition Linkbase
101.LAB* XBRL Taxonomy Label Linkbase
101.PRE* XBRL Taxonomy Presentation Linkbase

(1)Referred to and incorporated by reference to the Current Report on Form 8-K filed on June 24, 2013.

In accordance with SEC Release 33-8238, Exhibit 32.1 is being furnished and not filed.

* Furnished herewith. XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
 
 
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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, thereunto duly authorized.
 
 INSPIRED BUILDERS, INC. 
    
Date: January 15, 2013Date : March 5, 2014By:/s/ Carlos SalasMatthew Nordgren 
  
Carlos SalasMatthew Nordgren
Chief Executive Officer and Chief Financial Officer
 
 
Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.
 
Signature Capacity Date
     
/s/ Carlos SalasMatthew Nordgren
 Chief Executive Officer (Principal Executiveand Chief Financial Officer January 15, 2013March 5, 2014
Carlos SalasMatthew Nordgren Officer), President(Principal Executive Officer and Principal Financial Officer) and Sole Director  
 
 
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