UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10Q
(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
    1934

                FOR THE QUARTERLY PERIOD ENDED JUNESEPTEMBER 30, 2008

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

            For the transition period from __________ to ___________

                        Commission file number: 000-27055

                             CONCORD VENTURES, INC.
                            ------------------------
             (Exact name of registrant as specified in its charter)

           COLORADO                                            84-1472763
   (State of Incorporation)                             (IRS Employer ID Number)


           2460 WEST 26TH AVENUE, SUITE 380-C, DENVER, COLORADO, 80211
                    (Address of principal executive offices)

                                  303-380-8280
                         (Registrant's Telephone number)

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 past 12 months (or for such shorter  period that the registrant was required
to file such reports),  and (2) has been subject to the filing  requirements for
the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the  registrant is a large  accelerated  file, 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 the Exchange Act). Yes [X] No [ ]

Indicate  the number of share  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

As of July 10,November 11, 2008, there were 2,257,9862,358,487 shares of the registrant's  common
stock, $0.0001 par value, issued and outstanding.




CONCORD VENTURES, INC. INDEX PART I - FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Page ---- Balance Sheet - JuneSeptember 30, 2008 and December 31, 2007 3 Statement of Operations - Three and SixNine months ended JuneSeptember 30, 2008 4 and 2007 4 Statement of Cash Flows - Three and SixNine months ended JuneSeptember 30, 2008 5 and 2007 5 Notes to Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3. Quantitative and Qualitative Disclosures About Market Risk 26 - - Not Applicable Item 4. Controls and Procedures 26 Item 4T. Controls and Procedures 26 PART II - OTHER INFORMATION Item 1. Legal Proceedings 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 4. Submission of Matters to a Vote of Security Holders 26 Item 5. Other Information 27 Item 6. Exhibits 28 SIGNATURES 29
2 PART I ITEM 1. FINANCIAL STATEMENTS
CONCORD VENTURES, INC. BALANCE SHEETS JUNESEPTEMBER 30, DECEMBER 31, 2008 2007 (Unaudited) (Audited) --------------- --------------- ASSETS CURRENT ASSETS Cash & Cash Equivalents $ 175- $ 5,979 Prepayments - 208 --------------- --------------- Total Current Assets 175- 6,187 --------------- --------------- TOTAL ASSETS $ 175- $ 6,187 =============== =============== LIABILITIES & STOCKHOLDERS' DEFICIT CURRENT LIABILITIES Accounts Payable $ 124,821130,866 $ 94,366 Accrued Expenses 96,42896,500 89,040 Capital Leases 210,960 210,960 Operating Leases 196,216 196,216 Other Loans 26,05215,514 603 --------------- --------------- Total Current Liabilities 654,477650,055 591,185 LONG TERM LIABILITIES - - COMMITMENTS AND CONTINGENCIES (Note. 9) STOCKHOLDERS' DEFICIT Class A Common Stock; $0.0001 par value, 100,000,000, 1,1371,148 1,137 shares authorized 2,257,986 shares issued and outstandingas at JuneSeptember 30, 2008 and December 31, 2007, 2,358,487 and 2,257,986 shares issued and outstanding as at September 30, 2008 and December 31, 2007, respectively Additional Paid In Capital 16,771,32316,872,734 16,771,323 Accumulated Deficit (17,426,762)(17,523,937) (17,357,458) --------------- --------------- Total Stockholders' Deficit (654,302)(650,055) (584,998) --------------- --------------- TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 175- $ 6,187 =============== ===============
See accompanying Notes to Financial Statements. 3
CONCORD VENTURES, INC. STATEMENTS OF OPERATIONS (Unaudited)(UNAUDITED) FOR THE THREE MONTHS FOR THE SIXNINE MONTHS ENDED ENDED JUNESEPTEMBER 30, JUNESEPTEMBER 30, 2008 2007 2008 2007 ------------- -------------- ------------- ------------------------- ----------------- OPERATING EXPENSES (INCOME) Gain on Statute Barred Liabilities $ - $ -100,000 $ - $ (7,329,922)(7,229,922) General & Administrative Expenses 23,731 19,404 68,915 42,57996,715 19,769 165,630 62,348 ------------- -------------- ------------- ------------------------- ----------------- Total Operating Expenses (Income) 23,731 19,404 68,915 (7,287,343)96,715 119,769 165,630 (7,167,574) OPERATING PROFIT (LOSS) (23,731) (19,404) (68,915) 7,287,343(96,715) (119,769) (165,630) 7,167,574 Interest and Other Income (Expenses), Net (334) (1,032) (389) (1,692)(460) (1,477) (848) (3,169) ------------- -------------- ------------- ------------------------- ----------------- Profit (Loss) Profit before Income Taxes (24,064) (20,436) (69,304) 7,285,652(97,175) (121,247) (166,479) 7,164,405 Provision for Income Taxes - - - - ------------- -------------- ------------- ------------------------- ----------------- NET PROFIT (LOSS) PROFIT $ (24,064)(97,175)$ (20,436)(121,247)$ (69,304)(166,479)$ 7,285,6527,164,405 ============= ============== ============= ========================= ================= NET PROFIT (LOSS) PROFIT PER COMMON SHARE Basic & Diluted ($0.01)0.04) ($0.01)0.06) ($0.03) $3.620.07) $3.56 ============= ============== ============= ========================= ================= WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic & Diluted 2,257,986 2,010,931 2,257,986 2,010,9312,300,980 2,032,127 2,272,422 2,010,138 ============= ============== ============= ========================= =================
See accompanying Notes to Financial Statements. 4
CONCORD VENTURES, INC. STATEMENT OF CASH FLOWS (Unaudited)(UNAUDITED) FOR THE SIXNINE MONTHS ENDED JUNESPETEMBER 30, 2008 2007 ------------ ------------- CASH FLOW USED INPROVIDED BY (USED IN) OPERATING ACTIVITIES NET LOSSPROFIT (LOSS) $ (69,304)(166,479) $ -7,164,405 ADJUSTMENTS TO RECONCILE NET PROFIT / (LOSS) TO NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES (Gain) / Loss on Statute Barred Liabilities - (7,229,922) Stock Issued for Services 75,000 - CHANGES IN OPERATING ASSETS & LIABILITIES (Increase) / decrease in Prepaid Expenses 208 -(10) Increase / (decrease) in Accounts Payable 30,455 -36,500 (3,199) Increase / (decrease) in Accrued Expenses 7,388 -7,460 3,169 -------------- ------------- Total Cash Flow provided by / (used in) Operating Activities (31,253) - CASH FLOW FROM INVESTING ACTIVITIES 0 - -------------- ------------- Total Cash Flow provided by / (used in) Investing Activities 0 -(47,312) (65,556) CASH FLOW FROM FINANCING ACTIVITIES Increase in Other Loans 25,449 -41,333 55,176 Issue of Stock 0 - 50,000 -------------- ------------- Total Cash Flow provided by / (used in) Financing Activities 25,449 -41,333 105,176 INCREASE / (DECREASE) IN CASH & CASH EQUIVALENTS $ (5,804)(5,979) $ -39,620 ============== ============= Cash and Cash Equivalents at the beginning of the period $ 5,979 $ -39,620 ============== ============= Cash and Cash Equivalents at the end of the period $ 175- $ - ============== ============= SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION Cash paid for interest $ 0- $ - -------------- ------------- Cash paid for income tax $ 0- $ - -------------- ------------- No corporate bank account was maintained during the six months ended June 30, 2007.
See accompanying Notes to Financial Statements. 5 CONCORD VENTURES, INC. NOTES TO FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2008 (UNAUDITED) 1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES: Nature of Operations Concord Ventures, Inc. wasWe were incorporated in August 1998 in the State of Colorado. Effective February 16, 2001, we sold our entire business, and all of our assets, for the benefit of our creditors under a Chapter 11 reorganization. We were subsequently dismissed from the Chapter 11 reorganization, effective March 13, 2001, at which time the last of our remaining directors resigned. On March 13, 2001, we had no business or other source of income, no assets, no employees or directors, outstanding liabilities of approximately $8.4 million and had terminated our duty to file reports under securities law. In March 2006, we appointed a new board of directors and are now focused on reaching satisfactory negotiated settlements with our outstanding creditors, bringing our financial records up to date, seeking a listing on the over the counter bulletin board, raising debt and/or equity to fund negotiated settlements with our creditors and to meet our ongoing operating expenses and attempting to merge with another entity with experienced management and opportunities for growth in return for shares of our common stock to create value for our shareholders. There can be no assurance that this series of events will be successfully completed. Our business activities over the twelve month period ended December 31, 2007, were focused on the settlement of our outstanding liabilities and the renewal of and maintaining our SEC reporting status. On July 25, 2007, we filed a Form 10-SB12G with the SEC seeking to become a fully reporting company pursuant to Section 12 (g) of the Securities Exchange Act of 1934. The filing became effective September 23, 2007, at which time we succeeded in becoming a fully reporting company pursuant to Section 12 (g) of the Securities Exchange Act of 1934. In February 2008, we were re-listed on the OTC Bulletin Board and so are now listed on both the Pink Sheets and the OTC Bulletin Board.Board and trade under the symbol of "CCVR". On April 29, 2008, we held our annual meeting of stockholders at which meeting the majority of stockholders approved resolutions to re-elect Messrs. Cutler, Whiting and Green as our directors, reincorporate the Company in Delaware, authorize an up to 3 for 1 reverse split of our shares of common stock, change our name to a name to be chosen at the discretion of the Board of directors and to ratify the appointment of our auditor, Larry O'Donnell, CPA, PC. On August 22, 2008, we issued 75,000 of restricted common stock, valued at $75,000, to three consultants (25,000 shares each) as compensation for services they had provided to us One of the consultants is an existing shareholder of ours. We further issued 26,421 shares of restricted common stock to David Cutler, our President and director, in full settlement of the our debt to Mr. Cutler as at June 30, 2008 of $26,421. On October 6, 2008, we filed preliminary Schedule 14a prior to calling a special meeting of shareholders to facilitate our reincorporation in Delaware. 6 Basis of Presentation: The accompanying unaudited financial statements of Concord Ventures, Inc. have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three and sixnine months ended JuneSeptember 30, 2008 are not necessarily indicative of the results that may be expected for the year ended December 31, 2008. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2007 included in our Form10-KSB filed with the SEC. Significant Accounting Policies: Cash and Cash Equivalents -- Cash and cash equivalents consist of cash and highly liquid debt instruments with original maturities of less than three months. All cash balances were distributed for the benefit of our creditors following the sale of our entire business and all our assets, effective February 16, 2001, as part of our Chapter 11 reorganization. Following the sale of 50,000 shares of our common stock for $50,000 cash during the fiscal year ended December 31, 2007, we re-established a balance of cash and cash equivalents. Impairment of Long-Lived and Intangible Assets -- In the event that facts and circumstances indicated that the cost of long-lived and intangible assets may be impaired, an evaluation of recoverability was performed. If an evaluation was required, the estimated future undiscounted cash flows associated with the asset were compared to the asset's carrying amount to determine if a write-down to market value or discounted cash flow value was required. Financial Instruments -- The estimated fair values for financial instruments was determined at discrete points in time based on relevant market information. These estimates involved uncertainties and could not be determined with precision. The carrying amounts of notes receivable, accounts receivable, accounts payable and accrued liabilities approximated fair value because of the short-term maturities of these instruments. The fair value of notes payable approximated to their carrying value as generally their interest rates reflected our effective annual borrowing rate. Income Taxes -- We account for income taxes under the liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Comprehensive Income (Loss) -- Comprehensive income is defined as all changes in stockholders' equity (deficit), exclusive of transactions with owners, such as capital investments. Comprehensive income includes net income or loss, changes in certain assets and liabilities that are reported directly in equity such as 7 translation adjustments on investments in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. From our inception there were no differences between our comprehensive loss and net loss. Our comprehensive profit / (loss) was identical to our net profit / (loss) for the three and sixnine months ended JuneSeptember 30, 2008 and 2007. Income (Loss) Per Share -- The income (loss) per share is presented in accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 128, Earnings Per Share. SFAS No. 128 replaced the presentation of primary and fully diluted earnings (loss) per share (EPS) with a presentation of basic EPS and diluted EPS. Basic EPS is calculated by dividing the income or loss available to common stockholders by the weighted average number of common stock outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Diluted EPS was the same as Basic EPS for the three and sixnine months ended JuneSeptember 30, 2008 and 2007 as the exercise price of our outstanding stock options was substantially in excess of our share price throughout these periods. Stock-Based Compensation -- As permitted under the SFAS No. 123, Accounting for Stock-Based Compensation, we account for our stock-based compensation in accordance with the provisions of Accounting Principles Board (APB) Opinion No. 25, Accounting for Stock Issued to Employees. As such, compensation expense is recorded on the date of grant if the current market price of the underlying stock exceeds the exercise price. Certain pro forma net income and EPS disclosures for employee stock option grants are also included in the notes to the financial statements as if the fair value method as defined in SFAS No. 123 had been applied. Transactions in equity instruments with non-employees for goods or services are accounted for by the fair value method. Use of Estimates -- The preparation of our consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. Due to uncertainties inherent in the estimation process, it is possible that these estimates could be materially revised within the next year. Recently Issued Accounting Pronouncements-- In December 2007, the FASB issued SFAS No. 141 (Revised 2007), Business Combinations, or SFAS No. 141R. SFAS No. 141R will change the accounting for business combinations. Under SFAS No. 141R, an acquiring entity will be required to recognize all the assets acquired and liabilities assumed in a transaction at the acquisition-date fair value with limited exceptions. SFAS No. 141R will change the accounting treatment and disclosure for certain specific items in a business combination. SFAS No. 141R applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. Accordingly, any business combinations we engage in will be recorded and disclosed following existing GAAP until January 1, 2009. We expect SFAS No. 141R will have an impact on accounting for business combinations once adopted but the effect is dependent upon acquisitions at that time. In March 2008, the FASB issued FASStatement No. 161, Disclosures"Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB StatementActivities" ("SFAS No. 133. FAS161"). SFAS No. 161 changesamends and expands the disclosure requirements for derivative instruments and hedging activities. Entities are required to provide disclosures about (a) how and why derivative instruments are used, (b) how derivative instruments and related hedged items are accounted for under FASof Statement No. 133, Accounting"Accounting for Derivative Instruments and Hedging Activities,Activities." It requires qualitative 8 disclosures about objectives and its related interpretations, and (c) howstrategies for using derivatives, quantitative disclosures about credit-risk-related contingent features in derivative instruments and related hedged items affect the entity's financial position, financial performance, and cash flows. FASagreements. SFAS No. 161 is effective January 1, 2009.for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. The Company does not anticipate the adoption of SFAS No. 161 will have a material impact on its results of operations, cash flows or financial condition. In April 2008, the FASB issued FSP FAS 142-3, "Determination of the Useful Life of Intangible Assets" ("FSP FAS 142-3"). FSP FAS 142-3 amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under FASB Statement No. 142, "Goodwill and Other Intangible Assets". FSP FAS 142-3 also requires expanded disclosure related to the determination of intangible asset useful lives. FSP FAS 142-3 is effective for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. The Company does not expect that the adoption of FSP FAS No. 161142-3 will have a material effect on its consolidated results of operations or financial condition. In May 2008, the FASB issued FASB Staff Position (FSP) No. APB 14-1 "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)" (FSP APB 14-1). FSP APB 14-1 requires the issuer of certain convertible debt instruments that may be settled in cash (or other assets) on conversion to separately account for the liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer's non-convertible debt borrowing rate. FSP APB 14-1 is effective for fiscal years beginning after December 15, 2008 on a retroactive basis and will be adopted by the Company in the first quarter of fiscal 2009. The Company does not expect the adoption of FSP APB 14-1 to have a material effect on its results of operations and financial condition. In June 2008, the Financial Accounting Standards Board ("FASB") issued FASB Staff Position ("FSP") EITF 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities." This FSP provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. The FSP is effective for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. Upon adoption, companies are required to retrospectively adjust earnings per share data (including any amounts related to interim periods, summaries of earnings and selected financial data) to conform to provisions of this FSP. The Company does not anticipate the adoption of FSP EITF 03-6-1 will have a material impact on its results of operations, cash flows or financial condition. 2. GOING CONCERN AND LIQUIDITY: At JuneSeptember 30, 2008, we had totalno assets, of $175 consisting of cash, no operating business or other source of income, outstanding liabilities totaling $654,477$650,055 and a stockholder' deficit of $654,302.$650,055. In our financial statements for the fiscal years ended December 31, 2007 and 2006, the Report of the Independent Registered Public Accounting Firm includes an explanatory paragraph that describes substantial doubt about our ability to continue as a going concern. Our financial statements for the fiscal years ended December 31, 2007 and 2006, have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and 9 commitments in the normal course of business. At December 31, 2007, we had a working capital deficit of $584,998 and reported an accumulated deficit of $17,357,458. Consequently, we are now dependent on raising additional equity and/or debt to fund any negotiated settlements with our outstanding creditors and meet our ongoing operating expenses. There is no assurance that we will be able to raise the necessary equity and, or, debt that we will need to be able to negotiate acceptable settlements with our outstanding creditors or fund our ongoing operating expenses. 33. ASSETS At JuneSeptember 30, 2008 our sole assets were $175 cash.we had no assets. 4. ACCOUNTS PAYABLE Following the sale of all of our business and assets effective February 16, 2001, the proceeds from the sale were insufficient to repay all of our liabilities. Indeed the sale proceeds were only sufficient to pay certain of our secured liabilities. No proceeds were available to repay any of our unsecured creditors. Accordingly, the majority of the balance of accounts payable represents liabilities outstanding since we filed for Chapter 11 protection in December 2000. In the period April 1, 2003 through December 31, 2006, our outstanding accounts payable which had been incurred, prior to our dismissal from our Chapter 11 reorganization under the state laws of California, Delaware, Florida, Indianapolis, Maryland, Nebraska, North Carolina, Pennsylvania, Texas and Vermont were statute barred. Accordingly, we recognized a gain on these statute barred liabilities of $315,000 in theduring that period. During the year ended December 31, 2007, our outstanding accounts payable which had been incurred, prior to our dismissal from our Chapter 11 reorganization, under the state laws of Arizona, Colorado, Georgia, Massachusetts, Minnesota, Mississippi, New Jersey, New York, Oregon, South Dakota, Tennessee, Washington and Wisconsin were statute barred. Accordingly, we recognized a gain on statute barred liabilities of $1.6 million. As a result of the impact of the statute of limitation on our outstanding liabilities, during the year ended December 31, 2007, our outstanding accounts payable had been reduced from in excess of $2 million to approximately $94,000. The increase in accounts payable during the sixnine months ended JuneSeptember 30, 2008 reflects the legal and professional fees incurred in making the company a fully reporting company pursuant to Section 12 (g) of the Securities Exchange Act of 1934, achieving a re-listing on the OTC Bulletin Board and holding a shareholders' meeting in April 2008. 5. CUSTOMER PREPAYMENTS Prior to filing for Chapter 11 protection in December 2000, our customers prepaid us for the services we were to provide to them. Effective February 16, 2001, we sold our entire business and all our assets and ceased to provide any ongoing services. At that time, the purchaser of our business declined to provide services to customers who had already paid us and would only provide 10 services to customers who paid them on an ongoing basis. Consequently, this balance represents a liability to customers who had made prepayments to us prior to December 2000 in respect of respect of services we were to deliver after February 16, 2001, and who never received such services from us or from the purchaser of our business. Accordingly, this liability was unchanged at December 31, 2006 and 2005. During the year ended December 31, 2007, our outstanding liability in respect of customer prepayments was statute barred and accordingly we recognized a gain on statute barred liabilities of $1.1 million the period in respect of these statute barred customer prepayments. As a result of the impact of the statute of limitation on our outstanding liability for customer prepayments, during the year ended December 31, 2007, our outstanding liability for customer prepayments was reduced from $1.1 million to $0. 6. ACCRUED EXPENSES Accrued expenses related to accrued employee costs outstanding at the date we filed bankruptcy and accrued interest expenses in respect of our outstanding liabilities. No additional accrual was required for employee costs from the date on which we filed for bankruptcy as all post bankruptcy employee cost were paid in full and we had no employees from February 16, 2001. No additional accrual for interest expense was required in respect of unpaid liabilities outstanding at the date of our dismissal from bankruptcy in March 13, 2001 in the financial years ended December 31, 2006, 2005, and 2004 as we believe our outstanding liabilities could be settled in full for the values then reflected on our balance sheet. Interest was accrued at 8% on the loan made to us by Mr. David J.J Cutler, an officer and a director of the Company. During the year ended December 31, 2007, $552,000 of our accruals in respect of both outstanding liabilities and interest on liabilities outstanding at the date of our bankruptcy were statute barred and accordingly we recognized a gain on statute barred liabilities of $552,000 on the release of these accruals. As a result of the impact of the statute of limitation on our outstanding liability for accrued liabilities, during the year ended December 31, 2007, our outstanding liability for accrued liabilities was reduced from $642,000 to $89,000. 7. CAPITAL AND OPERATING LEASES Effective December 2000, when we filed for bankruptcy, we recognized in full the outstanding liabilities under all our capital and operating leases. In the April 1, 2003 through December 31, 2006, our outstanding liabilities under capital and operating leases which, had been entered into prior to our dismissal from our Chapter 11 reorganization, under the state laws of California, Delaware, Florida, Indianapolis, Maryland, Nebraska, North Carolina, Pennsylvania, Texas and Vermont were statute barred. Accordingly, we recognized a gain on statute barred liabilities of $422,000 in the period. 11 During the year ended December 31, 2007, our outstanding liabilities under capital and operating leases which had been entered into prior to our dismissal from our Chapter 11 reorganization, under the state laws of Arizona, Colorado, Georgia, Massachusetts, Minnesota, Mississippi, New Jersey, New York, Oregon, South Dakota, Tennessee, Washington and Wisconsin were statute barred. Accordingly we recognized a gain on statute barred liabilities of $2.7 million As a result of the impact of the statute of limitation on our outstanding liabilities under capital and operating leases, during the year ended December 31, 2007, our outstanding liabilities under capital and operating leases had been reduced from in excess of $3.5 million to approximately $407,000. 8. OTHER LOANS Other loans represent the loan made to us by one of our directors and officer, Mr. David J. Cutler. In the period from his appointment in March 2006 through September 2006, Mr. David Cutler, a director and our Chief Executive Officer and Chief Financial Officer, incurred more than $50,000 on our behalf in bringing our affairs up to date, principally on settling certain of our outstanding liabilities, legal and accounting fees and directors' remuneration. In September 2006, Mr. Cutler agreed to convert $50,000 of this loan to us into equity on a basis to be determined by an independent third party valuation. In September 2006, our independent directors authorized an initial issue of 510,000 shares of our common stock, representing 50.3% of our total issued and outstanding shares of our common stock, to Mr. Cutler, pending the completion of the independent third party valuation. In November 2006, the independent third party valuation of our shares of common stock was completed and on the basis of this third party valuation our independent directors authorized the issue of an additional 897,644 shares of our common stock to Mr. Cutler as the balance of the equity to which he was entitled on the conversion of his $50,000 loan to us into equity. Following this second issue of equity to Mr. Cutler, Mr. Cutlerhe owned a total of 1,407,644 shares of our common stock representing 70% of our total issued and outstanding shares of our common stock at that time. On December 3, 2007, we issued 87,055 shares of our restricted common stock to David J Cutler, one of our directors, in full and final settlement of the $87,055 loan Mr. Cutler had outstanding with, including accrued interest of $5,634, in respect of services and funding he has provided to the us in the period October 2006 through November 2007. The share issue was authorized by the independent members of our Board of Directors Interest is accrued on the loan at 8%. per annum. In the six monthsnine month period ended JuneSeptember 30, 2008, Mr. Cutler and Burlingham Corporate Finance, Inc., a company in which Mr. Cutler is the principal shareholder, have advanced to us a further $25,449an additional $40,963 to fund the costs of our ongoing overhead expenses. On August 22, 2008, we issued 26,421 shares of restricted common stock to David Cutler, our President and a director, in full settlement of the our debt to Mr. Cutler as at June 30, 2008, including accrued interest of $26,421. 12 9. COMMITMENTS: Capital and Operating Leases During the year ended December 31, 2007, our outstanding liabilities under capital and operating leases which had been entered into prior to our dismissal from our Chapter 11 reorganization effective March 13, 2001, under the state laws of Arizona, Colorado, Georgia, Massachusetts, Minnesota, Mississippi, New Jersey, New York, Oregon, South Dakota, Tennessee, Washington and Wisconsin were statute barred. Accordingly, we recognized a gain on statute barred liabilities of $2.7 million. As a result of the impact of the statute of limitation on our outstanding liabilities under capital and operating leases, during the year ended December 31, 2007, our outstanding liabilities under capital and operating leases had been reduced from in excess of $3.5 million to approximately $407,000. 10. CONVERTIBLE SUBORDINATED NOTES: During the year ended December 31, 2000, the Company had initiated a private offering of convertible subordinated notes for $600,000. The notes were convertible into shares of the Company's Class A Common Stock at a ratio of 833 shares per $50,000 of notes (implied conversion rate of $60.00 per share). The notes were to be immediately converted upon the filing of a registration statement with the SEC. In addition to the convertible note, each note holder was issued a detachable warrant to purchase 208 shares of the Company's Class A Common Stock for each of the $50,000 notes. The notes accrued interest at 10% per annum and matured one year from the date funded. Prior to the year ended December 31, 2000, we modified the terms of the private offering and those notes already issued. The terms were modified such that the notes were convertible into shares of our Class A common stock at the ratio of 2,500 shares per $50,000 of notes (implied conversion rate of $20.00 per share). Each note holder was to receive warrants to purchase 675 shares of our Class A common stock for each $50,000 of notes. The notes were to accrue interest at 10% per annum with maturity one year from the date funded. After the modification of terms, the Company issued an additional $825,000 in promissory notes. In March 2001, the holders of the convertible subordinated notes received a payment of $42,072 from the proceeds of the sale of our business assets at the time. During the year ended December 31, 2007, the debt associated with these notes became statute barred and consequently, we no longer have any liability outstanding in respect to this convertible debt. Prior to the year ended December 31, 2006, all of the outstanding warrants issued in connection with this financing expired. During the three months ended March 31, 2007, our liability in respect of this convertible debt became statute barred and consequently we no longer have any liability outstanding in respect of this convertible debt. During the year ended December 31, 2007, we issued 100,000 shares of our common stock, valued at $100,000 ($1.00 per share), in settlement of a disputed claim in respect of these liabilities. 13 11. RELATED PARTY TRANSACTIONS During the year ended December 31, 2006, we paid approximately $7,500 to the Aster Management Network in consultancy fees fro their assistance in bringing our financial affairs up to date. Aster Management Network is owned by Marshall E Aster, formerly our Chief Financial Officer. In the period from his appointment in March 2006 through September 2006, Mr. David Cutler, a director and our Chief Executive Officer and Chief Financial Officer, incurred more than $50,000 on our behalf in bringing our affairs up to date, principally on settling certain of our outstanding liabilities, legal and accounting fees and directors' remuneration. In September 2006, Mr. Cutler agreed to convert $50,000 of this loan to us into equity on a basis to be determined by an independent third party valuation. In September 2006, our independent directors authorized an initial issue of 510,000 shares of our common stock, representing 50.3% of our total issued and outstanding shares of our common stock, to Mr. Cutler, pending the completion of the independent third party valuation. In November 2006, the independent third party valuation of our shares of common stock was completed and on the basis of this third party valuation our independent directors authorized the issue of an additional 897,644 shares of our common stock to Mr. Cutler as the balance of the equity to which he was entitled on the conversion of his $50,000 loan to us into equity. Following this second issue of equity to Mr. Cutler, Mr. Cutlerhe owned a total of 1,407,644 shares of our common stock representing 70% of our total issued and outstanding shares of our common stock at that time. Following our ten for one reverse split in November 2006, we issued 25,000 shares of our common stock to each of our two non-executive directors, Messrs Whiting and Green, as remuneration for their services to us (50,000 share of common stock in total). On December 3, 2007, we issued 87,055 shares of our restricted common stock to David J Cutler, one of our directors, in full and final settlement of the $87,055 loan Mr. Cutler had outstanding with, including accrued interest of $5,634, in respect of services and funding he has provided to the us in the period October 2006 through November 2007. The share issue was authorized by the independent members of our Board of Directors. During the financial year ended December 31, 2007, we paid $10,000 of Mr. Cutler's remuneration to Burlingham Corporate Finance, Inc. ("Burlingham") in the form of consulting fees. Mr. Cutler is the principal shareholder of Burlingham. During the sixnine months ended JuneSeptember 30, 2008, we paid $30,000$45,000 of Mr. Cutler's remuneration to Burlingham in the form of consulting fees. In the six month periodnine months ended JuneSeptember 30, 2008, Mr. Cutler and Burlingham Corporate Finance, Inc., a company in which Mr. Cutler is the principal shareholder, have advanced to us a further $25,449$40,963 to fund the costs of our ongoing overhead expenses. On August 22, 2008, we issued 26,421 shares of restricted common stock to David Cutler, our President and a director of ours, in full settlement of the our debt to Mr. Cutler as at June 30, 2008, including accrued interest, of $26,421. 14 On August 22, 2008 we issued 25,000 shares of restricted common stock, valued at $25,000, to one of our shareholders for consulting services performed for us. 12. STOCKHOLDERS' DEFICIT: Common Stock We were authorized to issue 20,000,000 shares of common stock, par value $0.0001 per share. The common stock was segregated into two classes: Class A and Class B. Of the 20,000,000 shares of common stock, 19,970,000 shares were designated as Class A and 30,000 was designated as Class B. On August 22, 2008, we issued 75,000 of restricted common stock, valued at $75,000, to three consultants (25,000 shares each) as compensation for services they had provided to us. One of the consultants is an existing shareholder of ours. We further issued 26,421 shares of restricted common stock to David Cutler, our President and a director of ours, in full settlement of the our debt to Mr. Cutler as at June 30, 2008 of $26,421. At our shareholders meeting held in October 2006, our shareholders voted to increase the authorized number of our shares of Class A common stock from 19,970,000 to 100,000,000. Class A Common Stock The holders of our Class A Common Stock are entitled to one vote for each share held on record on each matter submitted to a vote of shareholders. Cumulative voting for election of directors is not permitted. Holders of Class A Common Stock have no preemptive rights or rights to convert their Class A Common Stock into any other securities. At our shareholders meeting held in October 2006, our shareholders voted to authorize a reverse split of our common stock on a basis up to one for ten which took effect on November 10, 2006. Consequently, all numbers of shares reported on these financial statements have been restated to reflect the impact of this one for ten reverse split. At our shareholders meeting held in April 2008, our shareholders voted to authorize a reverse split of our common stock on a basis up to one for three. This reverse split has not been made effective as yet. Recent IssuancesPREVIOUS PERIOD ISSUANCES On September 11, 2007, we issued 100,000 shares of our common stock with a value of $100,000 ($1.00 per share) in settlement of a disputed claim in connection with our convertible subordinated loan notes, which were statute barred during this period. On September 25, 2007, we issued 50,000 shares of our restricted common stock in exchange for cash of $50,000 ($1.00 per share). On September 25, 2007, we issued 10,000 shares of our restricted common stock as payment of consulting services valued at $10,000 ($1.00 per share). 15 On December 3, 2007, we issued 87,055 shares of our restricted common stock to David J Cutler, one of our directors, in full and final settlement of the $87,055 loan Mr. Cutler had outstanding with us, including accrued interest of $5,634, in respect of services and funding he has provided to the us in the period October 2006 through November 2007. The share issue was authorized by the independent members of our Board of Directors. Class B Common Stock 2,865 of these shares were issued in exchange for similar securities of LanXtra as partial consideration for the purchase of LanXtra's business, and were callable by us at $70 per share. The holders of Class B Common Stock had the right to sell the Class B Common Stock to us at $70 per share or convert their shares to equivalent units of our Class A Common Stock until March 31, 2000, at which time no holder of Class B Common Stock had exercised the put option. On that date, pursuant to our Articles of Incorporation, (i) each share of Class B Common Stock terminated; (ii) our authority to issue Class B Common Stock terminated; and (iii) the only other Class of Common Stock, which had until that time been designated as Class A Common Stock, was designated as Common Stock. Stock Options Effective March 19, 1999, we adopted a stock option plan (the "Plan"). The Plan provides for grants of incentive stock options, nonqualified stock options and restricted stock to designated employees, officers, directors, advisors and independent contractors. The Plan authorized the issuance of up to 75,000 shares of Class A Common Stock. Under the Plan, the exercise price per share of a non-qualified stock option must be equal to at least 50% of the fair market value of the common stock at the grant date, and the exercise price per share of an incentive stock option must equal the fair market value of the common stock at the grant date. The following table summarizes stock option activity under the Plan:
Under the Stock Option Plan: Other Grants: ------------------------------------------- -------------------- Granted to Granted to Non- Employees Non-Employees ----------------- -----------------Non-Employees -------------------- ------------------- Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price ------- -------- -------- -------- Outstanding at December 31, 2007 2,000 $45.00 - - Granted - - - - Exercised - - - - Canceled - - - - --------- --------- ----------- ---------- Outstanding at JuneSeptember 30, 2008 2,000 $45.00 - - ========= ========= =========== ========== Exercisable at JuneSeptember 30, 2008 2,000 $45.00 - - ========= ========= =========== ========== Exercisable at June 30, 2008December 31, 2007 2,000 $45.00 - - ========= ========= =========== ==========
16 13. INCOME TAXES We had losses since our Inception, and therefore were not subject to federal or state income taxes. We have accumulated tax losses available for carryforward in excess $17 million. The carryforward is subject to examination by the tax authorities and expires at various dates through the year 2064. The Tax Reform Act of 1986 contains provisions that may limit the NOL carryforwards available for use in any given year upon the occurrence of certain events, including significant changes in ownership interest. Consequently following the issue more than 50% of our total authorized and issued share capital in September 2006 to Mr. Cutler, one of our directors, our ability to use these losses is substantially restricted by the impact of section 382 of the Internal Revenue Code. 14. SUBSEQUENT EVENTS On October 6, 2008, we filed preliminary Schedule 14a prior to calling a special meeting of shareholders to facilitate our reincorporation in Delaware. 17 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with the consolidated financial statements and notes thereto and the other financial information included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. We believe that our expectations are based on reasonable assumptions within the bounds of our knowledge of our business and operations: there can be no assurance that actual results will not differ materially from our expectations. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated, including but not limited to, our ability to reach satisfactorily negotiated settlements with our outstanding creditors, raise debt and/or equity to fund negotiated settlements with our creditors and to meet our ongoing operating expenses and merge with another entity with experienced management and opportunities for growth in return for shares of our common stock to create value for our shareholders. You are urged to carefully consider these factors, as well as other information contained in this Annual Report on Form 10-KSB and in our other periodic reports and documents filed with the SEC. OVERVIEW We were incorporated in August 1998 in the State of Colorado. Effective February 16, 2001, we sold our entire business, and all of our assets, for the benefit of our creditors under a Chapter 11 reorganization. We were subsequently dismissed from the Chapter 11 reorganization, effective March 13, 2001, at which time the last of our remaining directors resigned. On March 13, 2001, we had no business or other source of income, no assets, no employees or directors, outstanding liabilities of approximately $8.4 million and had terminated our duty to file reports under securities law. In March 2006, we appointed a new board of directors and are now focused on reaching satisfactory negotiated settlements with our outstanding creditors, bringing our financial records up to date, seeking a listing on the over the counter bulletin board, raising debt and/or equity to fund negotiated settlements with our creditors and to meet our ongoing operating expenses and attempting to merge with another entity with experienced management and opportunities for growth in return for shares of our common stock to create value for our shareholders. There can be no assurance that this series of events will be successfully completed. Our business activities over the twelve month period ended December 31, 2007, were focused on the settlement of our outstanding liabilities and the renewal of and maintaining our SEC reporting status. On July 25, 2007, we filed a Form 10-SB12G with the SEC seeking to become a fully reporting company pursuant to Section 12 (g) of the Securities Exchange Act of 1934. The filing became effective September 23, 2007, at which time we succeeded in becoming a fully reporting company pursuant to Section 12 (g) of the Securities Exchange Act of 1934. In February 2008, we were listedre-listed on the OTC Bulletin Board and so are now listed on both the Pink Sheets and the OTC Bulletin Board.Board and trade under the symbol "CCVR." 18 On April 29, 2008, we held our annual meeting of stockholders at which meeting the majority of stockholders approved resolutions to re-elect Messrs. Cutler, Whiting and Green as our directors, reincorporate the Company in Delaware, authorize an up to 3 for 1 reverse split of our shares of common stock, change our name to a name to be chosen at the discretion of the Board of directors and to ratify the appointment of our auditor, Larry O'Donnell, CPA, PC. On August 22, 2008, we issued 75,000 of restricted common stock, valued at $75,000, to three consultants (25,000 shares each) as compensation for services they had provided to us One of the consultants is an existing shareholder of ours. We further issued 26,421 shares of restricted common stock to David Cutler, our President and a director of ours, in full settlement of the our debt to Mr. Cutler as at June 30, 2008 of $26,421. On October 6, 2008, we filed preliminary Schedule 14a prior to calling a special meeting of shareholders to facilitate our reincorporation in Delaware. PLAN OF OPERATIONS Our plan of operation is to reach satisfactory negotiated settlements with our outstanding creditors, obtain debt or equity finance to fund negotiated settlements with our creditors and to meet our ongoing operating expenses, seek a listing on the over the counter bulletin board and attempt to merge with another entity with experienced management and opportunities for growth in return for shares of our common stock to create value for our shareholders. There is can be no assurance that this series of events can be successfully completed, that any such business will be identified or that any stockholder will realize any return on their shares after such a transaction has been completed. In particular there is no assurance that any such business will be located or that any stockholder will realize any return on their shares after such a transaction. Any merger or acquisition completed by us can be expected to have a significant dilutive effect on the percentage of shares held by our current stockholders. We believe we are an insignificant participant among the firms which engage in the acquisition of business opportunities. There are many established venture capital and financial concerns that have significantly greater financial and personnel resources and technical expertise than we have. In view of our limited financial resources and limited management availability, we will continue to be at a significant competitive disadvantage compared to our competitors. General Business Plan - -------------------------------- We intend to seek, investigate and, if such investigation warrants, acquire an interest in business opportunities presented to us by persons or firms which desire to seek the advantages of an issuer who has complied with the Securities Act of 1934 (the "1934 Act"). We will not restrict our search to any specific business, industry or geographical location, and we may participate in business ventures of virtually any nature. This discussion of our proposed business is purposefully general and is not meant to be restrictive of our unlimited discretion to search for and enter into potential business opportunities. We anticipate that we may be able to participate in only one potential business venture because of our lack of financial resources. 19 We may seek a business opportunity with entities which have recently commenced operations, or that desire to utilize the public marketplace in order to raise additional capital in order to expand into new products or markets, to develop a new product or service, or for other corporate purposes. We may acquire assets and establish wholly owned subsidiaries in various businesses or acquire existing businesses as subsidiaries. We expect that the selection of a business opportunity will be complex. Due to general economic conditions, rapid technological advances being made in some industries and shortages of available capital, we believe that there are numerous firms seeking the benefits of an issuer who has complied with the 1934 Act. Such benefits may include facilitating or improving the terms on which additional equity financing may be sought, providing liquidity for incentive stock options or similar benefits to key employees, providing liquidity (subject to restrictions of applicable statutes) for all stockholders and other factors. Potentially, available business opportunities may occur in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex. We have, and will continue to have, essentially no assets to provide the owners of business opportunities. However, we will be able to offer owners of acquisition candidates the opportunity to acquire a controlling ownership interest in an issuer who has complied with the 1934 Act without incurring the cost and time required to conduct an initial public offering. The analysis of new business opportunities will be undertaken by, or under the supervision of, our Board of Directors. We intend to concentrate on identifying preliminary prospective business opportunities which may be brought to our attention through present associations of our director, professional advisors or by our stockholders. In analyzing prospective business opportunities, we will consider such matters as (i) available technical, financial and managerial resources; (ii) working capital and other financial requirements; (iii) history of operations, if any, and prospects for the future; (iv) nature of present and expected competition; (v) quality, experience and depth of management services; (vi) potential for further research, development or exploration; (vii) specific risk factors not now foreseeable but that may be anticipated to impact the proposed activities of the company; (viii) potential for growth or expansion; (ix) potential for profit; (x) public recognition and acceptance of products, services or trades; (xi) name identification; and (xii) other factors that we consider relevant. As part of our investigation of the business opportunity, we expect to meet personally with management and key personnel. To the extent possible, we intend to utilize written reports and personal investigation to evaluate the above factors. We will not acquire or merge with any company for which audited financial statements cannot be obtained within a reasonable period of time after closing of the proposed transaction. Acquisition Opportunities - ------------------------------------ In implementing a structure for a particular business acquisition, we may become a party to a merger, consolidation, reorganization, joint venture, or licensing agreement with another company or entity. We may also acquire stock or assets of an existing business. Upon consummation of a transaction, it is probable that our present management and stockholders will no longer be in control of us. In addition, our sole director may, as part of the terms of the acquisition 20 transaction, resign and be replaced by new directors without a vote of our stockholders, or sell his stock in us. Any such sale will only be made in compliance with the securities laws of the United States and any applicable state. It is anticipated that any securities issued in any such reorganization would be issued in reliance upon exemption from registration under application federal and state securities laws. In some circumstances, as a negotiated element of the transaction, we may agree to register all or a part of such securities immediately after the transaction is consummated or at specified times thereafter. If such registration occurs, it will be undertaken by the surviving entity after it has successfully consummated a merger or acquisition and is no longer considered an inactive company. The issuance of substantial additional securities and their potential sale into any trading market which may develop in our securities may have a depressive effect on the value of our securities in the future. There is no assurance that such a trading market will develop. While the actual terms of a transaction cannot be predicted, it is expected that the parties to any business transaction will find it desirable to avoid the creation of a taxable event and thereby structure the business transaction in a so-called "tax-free" reorganization under Sections 368(a)(1) or 351 of the Internal Revenue Code (the "Code"). In order to obtain tax-free treatment under the Code, it may be necessary for the owner of the acquired business to own 80% or more of the voting stock of the surviving entity. In such event, our stockholders would retain less than 20% of the issued and outstanding shares of the surviving entity. This would result in significant dilution in the equity of our stockholders. As part of our investigation, we expect to meet personally with management and key personnel, visit and inspect material facilities, obtain independent analysis of verification of certain information provided, check references of management and key personnel, and take other reasonable investigative measures, to the extent of our limited financial resources and management expertise. The manner in which we participate in an opportunity will depend on the nature of the opportunity, the respective needs and desires of both parties, and the management of the opportunity. With respect to any merger or acquisition, and depending upon, among other things, the target company's assets and liabilities, our stockholders will in all likelihood hold a substantially lesser percentage ownership interest in us following any merger or acquisition. The percentage ownership may be subject to significant reduction in the event we acquire a target company with assets and expectations of growth. Any merger or acquisition can be expected to have a significant dilutive effect on the percentage of shares held by our stockholders. We will participate in a business opportunity only after the negotiation and execution of appropriate written business agreements. Although the terms of such agreements cannot be predicted, generally we anticipate that such agreements will (i) require specific representations and warranties by all of the parties; (ii) specify certain events of default; (iii) detail the terms of closing and the conditions which must be satisfied by each of the parties prior to and after such closing; (iv) outline the manner of bearing costs, including costs associated with the Company's attorneys and accountants; (v) set forth remedies on defaults; and (vi) include miscellaneous other terms. As stated above, we will not acquire or merge with any entity which cannot provide independent audited financial statements within a reasonable period of time after closing of the proposed transaction. If such audited financial 21 statements are not available at closing, or within time parameters necessary to insure our compliance within the requirements of the 1934 Act, or if the audited financial statements provided do not conform to the representations made by that business to be acquired, the definitive closing documents will provide that the proposed transaction will be voidable, at the discretion of our present management. If such transaction is voided, the definitive closing documents will also contain a provision providing for reimbursement for our costs associated with the proposed transaction. Competition - ----------------- We believe we are an insignificant participant among the firms which engage in the acquisition of business opportunities. There are many established venture capital and financial concerns that have significantly greater financial and personnel resources and technical expertise than we have. In view of our limited financial resources and limited management availability, we will continue to be at a significant competitive disadvantage compared to our competitors. Investment Company Act 1940 - ----------------------------------------- Although we will be subject to regulation under the Securities Act of 1933, as amended, and the 1934 Act, we believe we will not be subject to regulation under the Investment Company Act of 1940 (the "1940 Act") insofar as we will not be engaged in the business of investing or trading in securities. In the event we engage in business combinations that result in us holding passive investment interests in a number of entities, we could be subject to regulation under the 1940 Act. In such event, we would be required to register as an investment company and incur significant registration and compliance costs. We have obtained no formal determination from the SEC as to our status under the 1940 Act and, consequently, any violation of the 1940 Act would subject us to material adverse consequences. We believe that, currently, we are exempt under Regulation 3a-2 of the 1940 Act. Liquidity and Capital Resources At JuneSeptember 30, 2008, we had totalno assets, of $175 consisting of cash, no operating business or other source of income, outstanding liabilities totaling $654,477$650,055 and a stockholder' deficit of $654,302.$650,055. In our financial statements for the fiscal years ended December 31, 2007 and 2006, the Report of the Independent Registered Public Accounting Firm includes an explanatory paragraph that describes substantial doubt about our ability to continue as a going concern. Our financial statements for the fiscal years ended December 31, 2007 and 2006, have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. At June 30, 2008,December 31, 2007, we had a working capital deficit of $654,302$584,998 and reported an accumulated deficit of $17,426,762.$17,357,458. Consequently, we are now dependent on raising additional equity and/or debt to fund any negotiated settlements with our outstanding creditors and meet our ongoing operating expenses. There is no assurance that we will be able to raise the necessary equity and, or, debt that we will need to be able to negotiate acceptable settlements with our outstanding creditors or fund our ongoing operating expenses. 22 RESULTS OF OPERATIONS THREE MONTHS ENDED JUNESEPTEMBER 30, 2008 COMPARED TO THE THREE MONTHS ENDED JUNESEPTEMBER 30, 2007 Gain on Statute Barred Liabilities During the three months ended September 30, 2007, we incurred a loss of $100,000 in respect of statute barred liabilities. We issued 100,000 shares of our common stock, valued at $100,000, in settlement of a disputed claim in respect of our convertible subordinated loan notes. No gain or loss on statute barred liabilities was recognized in the three month ended September 30, 2008. General and Administrative Expenses During the three months ended JuneSeptember 30, 2008, we incurred $23,731$96,715 in general and administrative expenses compared to $19,404$19,769 in the three months ended JuneSeptember 30, 2007, an increase of $4,327.$76,946. The increase was largely due costs incurred duringto the 75,000 shares of restricted common stock, valued at $75,000, that we issued to three months ended June 30, 2008 in holding our shareholders meeting in April 2008. No such costs were incurred inconsultants (25,000 shares each) as compensation for services they had provided to us One of the three months ended June 30, 2007.consultants is an existing shareholder of ours. Operating Profit / (Loss) In the three months ended JuneSeptember 30, 2008, we recognized an operating loss of $23,731$96,715 compared to an operating loss of $(19,404)$119,769 in the three months ended JuneSeptember 30, 2007, an increase of $4,427,$23,054, due to the factors as discussed above. Interest Expense We recognized an interest expense of $334$460 during the three months ended JuneSeptember 30, 2008, compared to $1,032$1,477 during the three months ended JuneSeptember 30, 2007, a decrease of $698.$1,017. This interest expense relates to the interest accrued on the loan made to us by one of our directors. The decrease in the amount of interest between the two periods reflects the decrease in the average principal balance of the loan made to us by one of our directors between the two periods following the capitalization of $87,055 and $26,421 of the outstanding balance in December 2007.2007 and August 2008, respectively. Profit / (Loss) before Income Tax In the three months ended JuneSeptember 30, 2008, we recognized a loss before income tax of $24,064$97,175 compared to a loss before income tax of $20,436$119,769 in the three months ended JuneSeptember 30, 2007, an increase of $3,628$22,594 due to the factors discussed above. Provision for Income Taxes No provision for income taxes was required in the three months ended JuneSeptember 30, 2008 or 2007 as we generated tax losses in these periods. 23 Net Profit / (Loss) and Comprehensive Profit / (Loss) In the three months ended JuneSeptember 30, 2008, we recognized a net loss of $24,064$97,175 compared to a net loss of $20,436$119,769 in the three months ended JuneSeptember 30, 2007, an increase of $3,628$22,594 due to the factors discussed above. The comprehensive loss was identical to the net loss in both the three months ended JuneSeptember 30, 2008 and 2007. SIXNINE MONTHS ENDED JUNESEPTEMBER 30, 2008 COMPARED TO THE SIXNINE MONTHS ENDED JUNESEPTEMBER 30, 2007 General and Administrative Expenses During the six months ended June 30, 2008, we incurred $68,915 in general and administrative expenses compared to $42,579 in the six months ended June 30, 2007, an increase of $26,336. The increase was largely due legal fees and other costs incurred during the six months ended June 30, 2008 in becoming a fully reporting company pursuant to Section 12 (g) of the Securities Exchange Act of 1934, being re-listed on the OTC Bulletin Board and holding a shareholders' meeting in April 2008. No such legal fees or other costs were incurred in then six months ended June 30, 2007. Gain on Statute Barred Liabilities During the sixnine months ended June,September, 2008, we recognized no gain or loss on statute barred liabilities compared to a gain of $7,329,922$7,229,922 in the sixnine months ended JuneSeptember 30, 2007, an increase of $7,329,922.$7,229,922. During the sixnine months ended JuneSeptember 30, 2007, outstanding liabilities, which had been incurred, prior to our dismissal from our Chapter 11 reorganization, were statute barred under the state laws of Arizona, Colorado, Georgia, Massachusetts, Minnesota, Mississippi, New Jersey, New York, Oregon, South Dakota, Tennessee, Washington, and Wisconsin and we recognized a gain on these statute barred liabilities of $7,329,922.7,329.922. This gain was offset by a $100,000 loss on statute barred liabilities when we issued 100,000 shares of our common stock, valued at $100,000, in settlement of a disputed claim in respect of our convertible subordinated loan notes. No outstanding liabilities became statute barred in the sixnine months ended September 30, 2008. General and Administrative Expenses During the nine months ended September 30, 2008, we incurred $165,630 in general and administrative expenses compared to $62,348 in the nine months ended September 30, 2007, an increase of $103,282. $75,000 of this increase was due to the 75,000 shares of restricted common stock, valued at $75,000, that we issued to three consultants (25,000 shares each) as compensation for services they had provided to us One of the consultants is an existing shareholder of ours. The balance of the increase was largely due legal fees and other costs incurred during the nine months ended June 30, 2008 in becoming a fully reporting company pursuant to Section 12 (g) of the Securities Exchange Act of 1934, being re-listed on the OTC Bulletin Board and holding a shareholders' meeting in April 2008. No such legal fees or other costs were incurred in then nine months ended September 30, 2007. Operating Profit / (Loss) In the sixnine months ended JuneSeptember 30, 2008, we recognized an operating loss of $68,915$(165,630) compared to an operating profit of $7,287,343$7,167,574 in the sixnine months ended JuneSeptember 30, 2007, a decrease of $7,218,428$7,333,204 due to the factors as discussed above. 24 Interest Expense We recognized an interest expense of $389$848 during the sixnine months ended JuneSeptember 30, 2008, compared to $1,692$3,169 during the sixnine months ended June 30,September30, 2007, a decrease of $1,303.$2,321. This interest expense relates to the interest accrued on the loan made to us by one of our directors. The decrease in the amount of interest between the two periods reflects the decrease in the average principal balance of the loan made to us by our director between the two periods following the capitalization of $87,055 and $26,421 of the outstanding balancesbalance in December 2007.2007 and August 2008 respectively . Profit / (Loss) before Income Tax In the sixnine months ended JuneSeptember 30, 2008, we recognized a loss before income tax of $69,304$(166,479) compared to a profit before income tax of $7,285,652$7,164,405 in the sixnine months ended JuneSeptember 30, 2007, a decrease of $7,216,348$7,330,884 due to the factors discussed above. above in connection with the decreases in operational expenses. Provision for Income Taxes No provision for income taxes was required in the sixnine months ended June 30, 2008 as we generated tax losses in the period. No provision for income taxes was required in the sixnine months ended JuneSeptember 30, 2007, as we had sufficient carry forward tax losses to offset the profits arising in the period. Net Profit / (Loss) and Comprehensive Profit / (Loss) In the sixnine months ended JuneSeptember 30, 2008, we recognized a net loss of $69,304$166,479 compared to a net profit of $7,285,652$7,164,405 in the sixnine months ended JuneSeptember 30, 2007, a decrease of $7,216,348$7,330,884 due to the factors discussed above.previously. The comprehensive profit / (loss) was identical to the net profit / (loss) in both the sixnine months ended JuneSeptember 30, 2008 and 2007. CASH FLOW INFORMATION FOR THE SIXNINE MONTHS ENDED JUNESEPTEMBER 30, 2008 COMPARED TO THE SIXNINE MONTHS ENDED JUNESEPTEMBER 30, 2007 At JuneSeptember 30, 2008, we had totalno assets, of $175 consisting of cash, no operating business or other source of income, outstanding liabilities totaling $654,477$650,055 and a stockholder' deficit of $654,302.$650,055. In our financial statements for the fiscal years ended December 31, 2007 and 2006, the Report of the Independent Registered Public Accounting Firm includes an explanatory paragraph that describes substantial doubt about our ability to continue as a going concern. Our financial statements for the fiscal years ended December 31, 2007 and 2006, have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. At June 30, 2008,December 31, 2007, we had a working capital deficit of $654,302$584,998 and reported an accumulated deficit of $17,426,762. During the six months ended June 30, 2007, we did not have a bank account and consequently, there were no movements in cash flow in the six months ended June 30, 2007. All our costs we paid for directly by Mr. Cutler, an officer and director of the Company. We subsequently opened a corporate bank account during the third quarter of 2007.$17,357,458. Net cash used in operations in the sixnine months ended JuneSeptember 30, 2008, was $31,253. Our$47,312 compared to net cash used in operations in the nine months ended September 30, 2007 of $65,556, a decrease of $18,244. In the nine months ended September 30, 2008, our net loss, without any need for adjustmentadjusted for non-cash items, resulted in a negative cash flow of $69,304,$91,479, which was partially offset by a positive cash 25 flow of $38,051$44,167 generated from the net movement in our operating assets and liabilities. . In the nine months ended September 30, 2007, our net profit, adjusted for non-cash items, resulted in a negative cash flow of $65,517 and the net movement in our operating assets and liabilities resulted in further negative cash flow of $39. No cash was provided by or used in investing activities during the sixnine months ended JuneSeptember 30, 2008. Net cash provided by financing activities during the sixnine months ended JuneSeptember 30, 2008, was $25,449$41,333 compared to $105,176 during the nine months ended September 30, 2007, a decrease of $63,846. During the nine months ended September 30, 2008 $41,333 was provided to us by loans fromof our shareholders. directors by way of loan. This compares with the nine months ended September 30, 2007 $41,333 was provided to us by of our directors by way of loan and we issued 50,000 shares of our common stock for cash consideration of $50,000. Consequently, we are now dependent on raising additional equity and/or debt to fund any negotiated settlements with our outstanding creditors and meet our ongoing operating expenses. There is no assurance that we will be able to raise the necessary equity and/or debt that we will need to be able to negotiate acceptable settlements with our outstanding creditors or fund our ongoing operating expenses. ITEM 3. QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. As a "smaller reporting company" as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item. ITEM 4. CONTROLS AND PROCEDURES As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the 1934 Act). Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in reports that we file or submit under the 1934 Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms. ITEM 4T. CONTROLS AND PROCEDURES Management's Quarterly Report on Internal Control over Financial Reporting. Our management is responsible for establishing and maintaining adequate internal control over financial reporting for the company in accordance with as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; 26 (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized Management's assessment of the effectiveness of the small business issuer's internal control over financial reporting is as of the quarter ended September 30, 2008. We believe that internal control over financial reporting is effective. We have not identified any, current material weaknesses considering the nature and extent of our current operations and any risks or errors in financial reporting under current operations. 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. This quarterly 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 pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management's report in this annual report. There have been no changes in the issuer's internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 240.15d-15 that occurred during the issuer's last fiscal quarter that has materially affected, or is reasonable likely to materially affect, the issuer's internal control over financial reporting. PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS No legal proceedings are pending or threatened to the best of our knowledge. ITEM 2. CHANGES IN SECURITIES ChangesThe Company made the following unregistered sales of its securities from July1, 2008 through September 30, 2008.
DATE OF SALE TITLE OF SECURITIES NO. OF SHARES CONSIDERATION CLASS OF PURCHASER - ----------------- ------------------------- -------------- ------------------------------- --------------------------------- 8/22/08 Common Stock 25,000 Consulting Services Business Associate - ----------------- ------------------------- -------------- ------------------------------- --------------------------------- 8/22/08 Common Stock 25,000 Consulting Services Business Associate - ----------------- ------------------------- -------------- ------------------------------- --------------------------------- 27 DATE OF SALE TITLE OF SECURITIES NO. OF SHARES CONSIDERATION CLASS OF PURCHASER - ----------------- ------------------------- -------------- ------------------------------- --------------------------------- 8/22/08 Common Stock 25,000 Consulting Services Business Associate - ----------------- ------------------------- -------------- ------------------------------- --------------------------------- 8/22/08 Common Stock 26,421 Payment of Debt of $26,421 Officer & Director
Exemption From Registration Claimed All of the sales by the Company of its unregistered securities were made by the Company in ourreliance upon Section 4(2) of the Securities Act of 1933, as amended (the "1933 Act"). All of the individuals and/or entities listed above that purchased the unregistered securities are describedwere almost all existing shareholders, all known to the Company and its management, through pre-existing business relationships, as long standing business associates, and officers and directors. All purchasers were provided access to all material information, which they requested, and all information necessary to verify such information and were afforded access to management of the Company in Note 12. Stockholders' Deficitconnection with their purchases. All purchasers of the unregistered securities acquired such securities for investment and not with a view toward distribution, acknowledging such intent to the Company. All certificates or agreements representing such securities that were issued contained restrictive legends, prohibiting further transfer of the certificates or agreements representing such securities, without such securities either being first registered or otherwise exempt from registration in the Notes to Financial Statements above.any further resale or disposition. ITEM 3. DEFAULTS UPON SENIOR SECURITIES We are in default under the terms of certain capital and operating leases as described in Note 7. Capital and Operating Leases in the Notes to Financial Statements above. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS We held an Annual Meeting of Stockholders on April 29, 2008, and the results of the stockholder voting waswere as follows: Resolution 1: To elect three (3) directors to hold office until the next annual meeting of stockholders or until their respective successors have been elected and qualified: Nominees David Cutler, Wesley Whiting and Redgie Green: David Cutler Wesley Whiting Redgie Green FOR 1,673,753 1,807,553 1,795,053 WITHHOLD 146,300 12,500 12,500 Resolution 2: To consider and act upon a proposal to authorize the Company to reincorporate in the State of Delaware: FOR 1,820,053 AGAINST 0 ABSTAIN 0 28 Resolution 3: To authorize a reverse split of the common stock issued and outstanding on an up to one new share for three old shareshares basis: FOR 1,581,090 AGAINST 146,652 ABSTAIN 92,311 Resolution 4: To authorize a change in the name of the Company to a new name to be chosen in the discretion of the Board of Directors: FOR 1,819,921 AGAINST 12 ABSTAIN 120 Resolution 5: To ratify the appointment of our auditors, Larry O'Donnell, CPA, PC. FOR 1,807,553 AGAINST 0 ABSTAIN 12,500 ITEM 5. OTHER INFORMATION NONE. None. ITEM 6. EXHIBITS Exhibits. The following is a complete list of exhibits filed as part of this Form 10-Q. Exhibit numbers correspond to the numbers in the Exhibit Table of Item 601 of Regulation S-K. Exhibit 3131.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act Exhibit 3232.1 Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act SIGNATURES In accordance with the requirements of Section 12 of the Securities Exchange Act of 1934, the Registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized. CONCORD VENTURES, INC. Date: AugustNovember 12, 2008 By: /s/ DAVID J. CUTLER ------------------------------------------------------------ David J.J Cutler Chief Executive Officer, & Chief Financial Officer 29