UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





FORM 10-K





[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE


ACT OF 1934





For the fiscal year ended September 30, 2010





[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE


ACT OF 1934





For the transition period from __________________ to __________________





Commission File No. - 001-10171







WESTCOTT PRODUCTS CORPORATION


(Name of Small Business Issuer in its Charter)





Delaware

80-0000245(State or other Jurisdiction of Incorporation or organization)

(I.R.S. Employer Identification No.)





8867 South Capella Way, Sandy, Utah  84093


(Address of Principal Executive Offices)





(801) 631-7969


(Registrant’s Telephone Number, including area code)





Securities Registered Pursuant to Section 12(b) of the Act: None





Securities Registered Pursuant to Section 12(g) of the Act: Common Stock, par value $0.001





Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes [  ] No [X]





Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes [  ]   No [X]





Indicate by check mark if the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


(1) Yes [X] No [  ]     (2) Yes [X] No [  ]





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. [  ]


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Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company:





Large accelerated filer
[   ]
Accelerated filed
[   ]Non-accelerated filer
[   ]
Smaller reporting company
[X]





Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [X] No [  ]





State the aggregate market value of the voting and non-voting common stock held by non-affiliates computed by reference to the price at which the common stock was last sold, or the average bid and asked price of such common stock, as of the last business day of the Registrant’s most recently completed second quarter.





Due to the extremely limited trading market for the Registrant’s common stock on the OTCBB of the Financial Industry Regulatory Authority, Inc. (“FINRA”), these shares have been arbitrarily valued at par value of one mill ($0.001) per share.  There were 618,300 shares held by non-affiliates, valued in the aggregate at $618.





Applicable only to Registrants involved in Bankruptcy Proceedings during the preceding Five Years





Not applicable.





Outstanding Shares





As of November 9, 2010, the Registrant had 1,115,800 shares of common stock outstanding.





Documents Incorporated by Reference





See Part IV, Item 15.





FORWARD LOOKING STATEMENTS





In this Annual Report, references to “Westcott Products Corporation,” “Westcott,” the “Company,” “we,” “us,” “our” and words of similar import) refer to Westcott Products Corporation, the Registrant.





This Annual Report contains certain forward-looking statements and for this purpose any statements contained in this Annual Report that are not statements of historical fact may be deemed to be forward-looking statements.  Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate” or “continue” or comparable terminology are intended to identify forward-looking statements.  These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within our control.  These factors include but are not limited to economic conditions generally and in the endeavors in which we may participate, competition within our chosen industry, technological advances and failure by us to successfully develop business relationships, among others.





PART I





ITEM 1.  BUSINESS





Business Development





Westcott Products Corporation was incorporated as Light Tech, Inc. under the laws of the State of Nevada on May 24, 1984. At our inception, a total of 866 shares of our one mill ($0.001) par value common voting stock were issued to directors, officers and founders for a total consideration of $2,500. Commencing June 19, 1984, and ending August 8, 1984, we offered and sold 2,000 shares of our one mill ($0.001) par value common voting stock to residents of the State of Utah pursuant to Rule 504 of Regulation D promulgated under the Securities Act of 1933, as


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amended (the “Securities Act”), for a total consideration of $25,000. Thereafter, we remained inactive until June 14, 1985, when our stockholders approved an Agreement and Plan of Reorganization with Lee Building Products, Inc. that is outlined below.





Westcott Products Corporation was organized by us under the laws of the State of Delaware on June 24, 1986, for the purpose of changing our name and domicile to the State of Delaware. On June 27, 1986, we merged with the Delaware subsidiary, with the survivor being Westcott Products Corporation. Our Company is now in the development stage as it searches for new business opportunities.





We have an authorized capital of 100,000,000 shares divided into 50,000,000 shares of common stock of a par value of $0.001 per share and 50,000,000 shares of preferred stock with a par value of $0.01, with 3,000,000 of the 50,000,000 shares of preferred stock designated as Series A. Our Company was formed for the primary purpose of engaging in any and all lawful business.





All of our Company’s prior operations were conducted through our wholly owned subsidiary, T. A. Kilgore & Company, (“Kilgore”), which owned and operated a home center in League City, Texas, about 30 miles southeast of downtown Houston, Texas. During November, 1990, Kilgore ceased operations, and the secured lenders took possession of all of its assets.





Our Company has been basically dormant since 1990. On March 11, 2000, our Board of Directors began the process of bringing us current, with the appointment of new officers and directors. We also authorized the issuance of 12,000 shares of our common stock for $15,000. On October 5, 2000, in order to reconcile our transfer records, we authorized the issuance of 8,800 shares of our common stock in the name of ARTCO Trustee, our transfer agent, for the sole purpose of replacing certificates presented for transfer that are not reflected on the shareholders list, if there was reasonable cause to believe that such certificates were issued by Mellon Securities Transfer, our previous transfer agent, and would have been represented alphabetically, on pages 269 or 270 of Mellon Securities Transfer shareholder list dated December 27, 1993. Those pages were missing from our historical lists of stockholders when we re-commenced the development stage. The Company began the process of reactivation in October 1999 and is now in the process of seeking new business opportunities.





Copies of the Certificate of Ownership and Merger and our initial Articles of Incorporation, as amended, together with our By-Laws, were filed as Exhibits to our 10-KSB Annual Report for the fiscal year ended September 30, 2003. See Item 15.





On or about November 28, 2006, we filed a Definitive Information Statement on Form 14C with the Securities and Exchange Commission (the “SEC”), whereby we amended our Articles of Incorporation with the State of Delaware and issued common stock to the members of our Board of Directors for compensation of services.  The Amended Articles of Incorporation were unanimously adopted by our Board of Directors and certain shareholders owning approximately 13,800 shares of our common stock or approximately 59.7% of our outstanding voting securities to effect a re-capitalization of our outstanding common stock in the form of a pro rata 250,000 for one reverse split and an immediate 200 for one pro rata dividend of our outstanding common stock. All computations herein take into account this re-capitalization. A copy of the Amended Articles of Incorporation was filed as an Exhibit to our Definitive Information Statement on Form 14C.  See Item 15.





It was believed by the members of the Board of Directors that without the re-capitalization, we would not be able to make any acquisition, merger or reorganization that would be beneficial to us and our stockholders, and that we would have had no real prospects through which we could be otherwise successful.





A total of 600,000 shares of our common stock that are “restricted securities” as defined in Rule 144 of the SEC and representing control of our Company were issued to the members of our Board of Directors contemporaneously with the dividend, as fully described in our Definitive Information Statement.  See Part IV, Item 15.





This re-capitalization and issuance became effective December 20, 2006.





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Description of Business





We are currently seeking and investigating potential assets, property or businesses to acquire.  We have had no material business operations for more than 10 years.  Our plan of operation for the next 12 months is to: (i) consider guidelines of industries in which we may have an interest; (ii) adopt a business plan regarding engaging in the business of any selected industry; and (iii) to commence such operations through funding and/or the acquisition of a “going concern” engaged in any industry selected.  We are unable to predict the time as to when and if we may actually participate in any specific business endeavor, and will be unable to do so until we determine any particular industry in which we may engage.





We are not currently engaged in any substantive business activity except the search for potential assets, property or businesses to acquire, and we have no current plans to engage in any other activity in the foreseeable future unless and until we complete any such acquisition.  In our present form, we are deemed to be a vehicle to acquire or merge with a business or company.  We do not intend to restrict our search for business opportunities to any particular business or industry, and the areas in which we will seek out business opportunities or acquisitions, reorganizations or mergers may include all lawful businesses.  We recognize that the number of suitable potential business ventures that may be available to us may be extremely limited, and may be restricted as to acquisitions, reorganizations and mergers with businesses or entities that desire to avoid what such entities may deem to be the adverse factors related to an initial public offering (“IPO”) as a method of going public.  The most prevalent of these factors include substantial time requirements, legal and accounting costs, the inability to obtain an underwriter who is willing to publicly offer and sell shares, the lack of or the inability to obtain the required financial statements for such an undertaking, state limitations on the amount of dilution to public investors in comparison to the stockholders of any such entities, along with other conditions or requirements imposed by various federal and state securities laws, rules and regulations and federal and state agencies that implement such laws, rules and regulations.





Amendments to Form 8-K by the SEC  regarding shell companies and transactions with shell companies that require the filing of all information about an acquired company that would have been required to have been filed had any such company filed a Form 10 or 10-SB Registration Statement with the SEC, along with required audited, interim and proforma financial statements, within four business days of the closing of any such transaction (Item 5.01(a)(8) of Form 8-K); and the recent amendments to Rule 144 adopted by the SEC that were effective on February 15, 2008, that limit the resale of most securities of shell companies until one year after the filing of such information, may eliminate many of the perceived advantages of these types of going public transactions.  These types of transactions are customarily referred to as “reverse” reorganizations or mergers in which the acquired company’s shareholders become the controlling shareholders in the acquiring company and the acquiring company becomes the successor to the business operations of the acquired company.  Regulations governing shell companies also deny the use of Form S-8 for the registration of securities and limit the use of this Form to a reorganized shell company until the expiration of 60 days from when any such entity is no longer considered to be a shell company.  This prohibition could further restrict opportunities for us to acquire companies that may already have stock option plans in place that cover numerous employees.  In such instances, there may be no exemption from registration for the issuance of securities in any business combination to these employees, thereby necessitating the filing of a registration statement with the SEC to complete any such reorganization, and incurring the time and expenses that are normally avoided by reverse reorganizations or mergers.





Recent amendments to Rule 144, adopted by the SEC and effective on February 15, 2008, codify the SEC’s prior position limiting the tradeability of certain securities of shell companies, including those issued by us in any acquisition, reorganization or merger, and further limit the tradeability of additional securities of shell companies; these proposals will further restrict the availability of opportunities for us to acquire any business or enterprise that desire to utilize us as a means of going public.





Any of these types of transactions, regardless of the particular prospect, would require us to issue a substantial number of shares of our common stock that could amount to as much as 95% of our outstanding voting securities following the completion of any such transaction; accordingly, investments in any such private enterprise, if available, would be much more favorable than any investment in us.


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Management intends to consider a number of factors prior to making any decision as to whether to participate in any specific business endeavor, none of which may be determinative or provide any assurance of success.  These may include, but will not be limited to, as applicable, an analysis of the quality of the particular business or entity’s management and personnel; the anticipated acceptability of any new products or marketing concepts that any such business or company may have; the merits of any such business’ or company’s technological changes; the present financial condition, projected growth potential and available technical, financial and managerial resources of any such business or company; working capital, history of operations and future prospects; the nature of present and expected competition; the quality and experience of any such business’ or company’s management services and the depth of management; the business’ or the company’s potential for further research, development or exploration; risk factors specifically related to the business’ or company’s operations; the potential for growth, expansion and profit of the business or  company; the perceived public recognition or acceptance of the company’s or the business’ products, services, trademarks and name identification; and numerous other factors which are difficult, if not impossible, to properly or accurately quantify or analyze, let alone describe or identify, without referring to specific objective criteria of an identified business or company.





Regardless, the results of operations of any specific entity may not necessarily be indicative of what may occur in the future, by reason of changing market strategies, plant or product expansion, changes in product emphasis, future management personnel and changes in innumerable other factors.  Further, in the case of a new business venture or one that is in a research and development mode, the risks will be substantial, and there will be no objective criteria to examine the effectiveness or the abilities of its management or its business objectives.  Also, a firm market for its products or services may yet need to be established, and with no past track record, the profitability of any such entity will be unproven and cannot be predicted with any certainty.





Management will attempt to meet personally with management and key personnel of any entity providing any potential business opportunity afforded to us, visit and inspect material facilities, obtain independent analysis or verification of information provided and gathered, check references of management and key personnel and conduct other reasonably prudent measures calculated to ensure a reasonably thorough review of any particular business opportunity; however, due to time constraints of management, these activities may be limited.





We are unable to predict the time as to when and if we may actually participate in any specific business endeavor.  We anticipate that proposed business ventures will be made available to us through personal contacts of directors, executive officers and principal shareholders, professional advisors, broker dealers in securities, venture capital personnel and others who may present unsolicited proposals.  In certain cases, we may agree to pay a finder’s fee or to otherwise compensate the persons who submit a potential business endeavor in which we eventually participate. Such persons may include our directors, executive officers and beneficial owners of our securities or their affiliates. In this event, such fees may become a factor in negotiations regarding any potential venture and, accordingly, may present a conflict of interest for such individuals.  Management does not presently intend to acquire or merge with any business enterprise in which any member has a prior ownership interest.





Our directors and executive officers have not used any particular consultants, advisors or finders on a regular basis.





Although we currently have no plans to do so, depending on the nature and extent of services rendered, we may compensate members of management in the future for services that they may perform for us.  Because we currently have extremely limited resources, and we are unlikely to have any significant resources until we have determined a business or enterprise to engage in or have completed a reorganization, merger or acquisition, management expects that any such compensation would take the form of an issuance of shares of our common stock to these persons; this would have the effect of further diluting the holdings of our other shareholders.  There are presently no preliminary agreements or understandings between us and members of our management respecting such compensation.  Any shares issued to members of our management would be required to be resold under an effective registration statement filed with the SEC or 12 months after we file the Form 10 information about the acquired company with the SEC as now required by Form 8-K.  These provisions could further inhibit our ability to complete the acquisition of any business or complete any merger or reorganization with another entity, where finder’s or others who may be subject to these resale limitations refuse to provide us with any introductions or to close any such transactions unless they are paid requested fees in cash or unless we agree to file a registration statement with the SEC that includes any shares that are to be issued to them, at no cost to them.  These expenses could limit potential acquisition candidates,


5


especially those in need of cash resources, and could affect the number of shares that our shareholders retain following any such transaction, by reason of the increased expense.





Substantial fees are also often paid in connection with the completion of all types of acquisitions, reorganizations or mergers, ranging from a small amount to as much as $600,000 or more. These fees are usually divided among promoters or founders or finders, after deduction of legal, accounting and other related expenses, and it is not unusual for a portion of these fees to be paid to members of management or to principal shareholders as consideration for their agreement to retire a portion of their shares of our common stock that are owned by them or to provide an indemnification for all of our prior liabilities.  Management may actively negotiate or otherwise consent to the purchase of all or any portion of their shares of common stock as a condition to, or in connection with, a proposed reorganization, merger or acquisition.  It is not anticipated that any such opportunity will be afforded to other shareholders or that such other shareholders will be afforded the opportunity to approve or consent to any particular stock buy-out transaction.  In the event that any such fees are paid or shares are purchased, these requirements may become a factor in negotiations regarding any potential acquisition or merger by us and, accordingly, may also present a conflict of interest for such individuals. We have no present arrangements or understandings respecting any of these types of fees or opportunities.  Any of these types of fees that are paid in shares of our common stock will also be subject to the resale limitations embodied in the recent amendments to Rule 144.





Principal Products or Services and Their Markets





None; not applicable.





Distribution Methods of the Products or Services





None; not applicable.





Status of any Publicly Announced New Product or Service





None; not applicable.





Competitive Business Conditions and Smaller Reporting Company’s Competitive Position in the Industry and Methods of Competition





Management believes that there are literally thousands of shell companies engaged in endeavors similar to those engaged in by us; many of these companies have substantial current assets and cash reserves.  Competitors also include thousands of other publicly-held companies whose business operations have proven unsuccessful, and whose only viable business opportunity is that of providing a publicly-held vehicle through which a private entity may have access to the public capital markets via a reverse reorganization or merger.  There is no reasonable way to predict our competitive position or that of any other entity in these endeavors; however, we, having limited assets and no cash reserves, will no doubt be at a competitive disadvantage in competing with entities that have significant cash resources and have recent operating histories when compared with the complete lack of any substantive operations by us since 1990.





Sources and Availability of Raw Materials and Names of Principal Suppliers





None; not applicable.





Dependence on One or a Few Major Customers





None; not applicable.


6


Patents, Trademarks, Licenses, Franchises, Concessions, Royalty Agreements or Labor Contracts, including Duration





None; not applicable.





Need for any Governmental Approval of Principal Products or Services





Because we currently have no business operations and produce no products nor provide any services, we are not presently subject to any governmental regulation in this regard.  However, in the event that we complete a reorganization, merger or acquisition transaction with an entity that is engaged in business operations or provides products or services, we will become subject to all governmental approval requirements to which the reorganized, merged or acquired entity is subject or may become subject.





Effect of Existing or Probable Governmental Regulations on the Business





Smaller Reporting Company





We are subject to the reporting requirements of Section 13 of the Exchange Act, and we are subject to the disclosure requirements of Regulation S-K of the SEC, as a “smaller reporting company.”  That designation will relieve us of some of the informational requirements of Regulation S-K.





Sarbanes/Oxley Act





We are also subject to the Sarbanes-Oxley Act of 2002.  The Sarbanes/Oxley Act created a strong and independent accounting oversight board to oversee the conduct of auditors of public companies and strengthens auditor independence.  It also requires steps to enhance the direct responsibility of senior members of management for financial reporting and for the quality of financial disclosures made by public companies; establishes clear statutory rules to limit, and to expose to public view, possible conflicts of interest affecting securities analysts; creates guidelines for audit committee members’ appointment, compensation and oversight of the work of public companies’ auditors; management assessment of our internal controls; auditor attestation to management’s conclusions about internal controls; prohibits certain insider trading during pension fund blackout periods; requires companies and auditors to evaluate internal controls and procedures; and establishes a federal crime of securities fraud, among other provisions. Compliance with the requirements of the Sarbanes/Oxley Act will substantially increase our legal and accounting costs.





Exchange Act Reporting Requirements





Section 14(a) of the Exchange Act requires all companies with securities registered pursuant to Section 12(g) of the Exchange Act to comply with the rules and regulations of the SEC regarding proxy solicitations, as outlined in Regulation 14A. Matters submitted to our stockholders at a special or annual meeting thereof or pursuant to a written consent will require us to provide our stockholders with the information outlined in Schedules 14A or 14C of Regulation 14; preliminary copies of this information must be submitted to the SEC at least 10 days prior to the date that definitive copies of this information are forwarded to our stockholders.





We are required to file annual reports on Form 10-K and quarterly reports on Form 10-Q with the Securities Exchange Commission on a regular basis, and are required to timely disclose certain material events (e.g., changes in corporate control; acquisitions or dispositions of a significant amount of assets other than in the ordinary course of business; and bankruptcy) in a Current Report on Form 8-K.





Research and Development Costs During the Last Two Fiscal Years





None; not applicable.


7


Cost and Effects of Compliance with Environmental Laws





We do not believe that our current or intended business operations are subject to any material environmental laws, rules or regulations that would have an adverse material effect on our business operations or financial condition or result in a material compliance cost; however, we will become subject to all such governmental requirements to which the reorganized, merged or acquired entity is subject or may become subject.





Number of Total Employees and Number of Full Time Employees





None.





Additional Information





You may read and copy any materials that we file with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549.  You may also find all of the reports or registration statements that we have previously filed electronically with the SEC at its Internet site at www.sec.gov.  Please call the SEC at 1-202-551-8090 for further information on this or other Public Reference Rooms.  Our SEC reports and registration statements are also available from commercial document retrieval services, such as CCH Washington Service Bureau, whose telephone number is 1-800-955-5219.





ITEM 1A.  RISK FACTORS





Not required for smaller reporting companies.





ITEM 2:  PROPERTIES





We have no assets, property or business; our principal executive office address and telephone number are the business office address and telephone number of Wayne Bassham, our President, which are provided at no cost to us.  Because we have had no business, our activities have been limited to keeping us in good standing in the State of Delaware and timely voluntarily filing our reports with the SEC. These activities have consumed an insignificant amount of management’s time; accordingly, the costs to Mr. Bassham of providing the use of his office and telephone have been minimal.





ITEM 3:  LEGAL PROCEEDINGS





We are not a party to any pending legal proceeding. To the knowledge of our management, no federal, state or local governmental agency is presently contemplating any proceeding against us. No director, executive officer or affiliate of ours or owner of record or beneficially of more than 5% of our common stock is a party adverse to us or has a material interest adverse to us in any proceeding.





ITEM 4:  (REMOVED AND RESERVED)





PART II





ITEM 5:  MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES





Market Information





Our common stock was listed on the OTC Bulletin Board of the National Association of Securities Dealers (“NASD” [now “FINRA”] ) on June 14, 2007, under the symbol “WSPD.” There is currently no established trading market for shares of our common stock.  Management does not expect any viable market to develop in our common stock unless and until we complete an acquisition or merger. In any event, no assurance can be given that any market for our common stock will develop or be maintained.


8


For any market that develops for our common stock, the sale of “restricted securities” (common stock) pursuant to Rule 144 of the SEC by members of management or any other person to whom any such securities may be issued in the future may have a substantial adverse impact on any such public market.  For information regarding the requirements of resales under Rule 144, see the heading “Rule 144” of this item below.





The following table sets forth, for the periods indicated over the last two years, the high and low closing bid quotations, as reported by the OTC Bulletin Board, and represents prices between dealers, does not include retail markups, markdowns or commissions, and may not represent actual transactions:





Closing BidHigh
Low2008October 1 – December 31
NONE
NONE2009January 2 – March 31
NONE
NONEApril 1 – June 30
NONE
NONEJuly 1 – September 30
NONE
NONEOctober 1 – December 31
NONE
NONE2010January 4 – March 31
NONE
NONEApril 1 – June 30
.05
.05July 1 – September 30
.10
.10





These prices were obtained from the National Quotation Bureau, Inc. (“NQB”) and do not necessarily reflect actual transactions, retail markups, mark downs or commissions.





Holders





We currently have 553 shareholders, not including an indeterminate number who may hold shares in “street name.”





Dividends





We have not declared any cash dividends with respect to our common stock, and do not intend to declare dividends in the foreseeable future. Our future dividend policy cannot be ascertained with any certainty, and if and until we complete any acquisition, reorganization or merger, no such policy will be formulated. There are no material restrictions limiting, or that are likely to limit, our ability to pay dividends on our securities.





Securities Authorized for Issuance Under Equity Compensation Plans





None; not applicable.





Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities





We did not issue any unregistered securities during the fiscal year ended September 30, 2010.





Rule 144





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The following is a summary of the current requirements of Rule 144:





Affiliate or Person Selling on Behalf of an Affiliate
Non-Affiliate (and has not been an Affiliate During the Prior Three Months)Restricted Securities of Reporting Issuers
During six-month holding period – no resales under Rule 144 Permitted.



After Six-month holding period – may resell in accordance with all Rule 144 requirements including:

·Current public information,

·Volume limitations,

·Manner of sale requirements for equity securities, and

·Filing of Form 144.
During six- month holding period – no resales under Rule 144 permitted.



After six-month holding period but before one year – unlimited public resales under Rule 144 except that the current public information requirement still applies.



After one-year holding period – unlimited public resales under Rule 144; need not comply with any other Rule 144 requirements.Restricted Securities of Non-Reporting Issuers
During one-year holding period – no resales under Rule 144 permitted.



After one-year holding period – may resell in accordance with all Rule 144 requirements including:

·Current public information,

·Volume limitations,

·Manner of sale requirements for equity securities, and

·Filing of Form 144.
During one-year holding period – no resales under Rule 144 permitted.



After one-year holding period – unlimited public resales under Rule 144; need not comply with any other Rule 144 requirements.





Shell Companies





The following is an excerpt from Rule 144(i) regarding resales of securities of shell companies:





“(i)  Unavailability to securities of issuers with no or nominal operations and no or nominal non-cash assets.





(1)           This section is not available for the resale of securities initially issued by an issuer defined below:





(i) An issuer, other than a business combination related shell company, as defined in §230.405, or an asset-backed issuer, as defined in Item 1101(b) of Regulation AB (§229.1101(b) of this chapter), that has:





(A)           No or nominal operations; and





(B)           Either :





(1)   No or nominal assets;


(2)   Assets consisting solely of cash and cash equivalents; or


(3)   Assets consisting of any amount of cash and cash equivalents and nominal other assets; or





(ii)           An issuer that has been at any time previously an issuer described in paragraph (i)(1)(i).





(2)           Notwithstanding paragraph (i)(1), if the issuer of the securities previously had been an issuer described in paragraph (i)(1)(i) but has ceased to be an issuer described in paragraph (i)(1)(i); is subject to the reporting requirements of section 13 or 15(d) of the Exchange Act; has filed all reports and other materials required to be filed by section 13 or 15(d) of the Exchange Act, as applicable, during the preceding 12 months (or for such shorter


10


period that the issue was required to file such reports and materials), other than Form 8-K reports (§249.308 of this chapter); and has filed current “Form 10 information” with the Commission reflecting its status as an entity that is no longer an issuer described in paragraph (i)(1)(i), then those securities may be sold subject to the requirements of this section after one year has elapsed from the date that the issuer filed “Form 10 information” with the Commission.





(3)           The term “Form 10 information” means the information that is required by Form 10 or Form 20-F (§249.220f of this chapter), as applicable to the issuer of the securities, to register under the Exchange Act each class of securities being sold under this rule.  The issuer may provide the Form 10 information in any filing of the issuer with the Commission.  The Form 10 information is deemed filed when the initial filing is made with the Commission.”





Securities of a shell company cannot be publicly sold under Rule 144 in the absence of compliance with this subparagraph, though the SEC has implied that these restrictions would not be enforced respecting securities issued by a shell company while it was not determined to be a shell company.





Section 4(1) of the Securities Act





Since we are a shell company as defined in subparagraph (i) of Rule 144, our shares of common stock cannot be publicly resold under Rule 144 until we comply with the requirements outlined above under the heading “Shell Companies.”  Until those requirements have been satisfied, any resales of our shares of common stock must be made in compliance with the provisions of the exemption from registration under the Securities Act provided in Section 4(1) thereof, applicable to persons other than “an issuer, underwriter or a dealer.”  That will require that such shares of common stock be sold in “routine trading transactions,” which would include compliance with substantially all of the requirements of Rule 144, regardless of its availability; and such resales may be limited to our non-affiliates.  It is the position of the SEC that the Section 4(1) exemption is not available for the resale of any securities of an issuer that is or was a shell company, by directors, executive officers, promoters or founders or their transferees.  See NASD Regulation, Inc., CCH Federal Securities Law Reporter, 1990-2000 Decisions, Paragraph No. 77,681, the so-called “Worm-Wulff Letter.”





Use of Proceeds of Registered Securities





There were no proceeds received during the calendar year ended September 30, 2010, from the sale of registered securities.





Purchases of Equity Securities by Us and Affiliated Purchasers





None; not applicable.





ITEM 6:  SELECTED FINANCIAL DATA





Not required for smaller reporting companies.





ITEM 7:  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION





When used in this Annual Report, the words “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “intend,” and similar expressions are intended to identify forward-looking statements within the meaning of Section 27a of the Securities Act and Section 21e of the Exchange Act regarding events, conditions, and financial trends that may affect Westcott’s future plans of operations, business strategy, operating results, and financial position.  Persons reviewing this Annual Report are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties and actual results may differ materially from those included within the forward-looking statements as a result of various factors.  Such factors are discussed further below under “Trends and Uncertainties,” and also include general economic factors and conditions that may directly or indirectly impact our financial condition or results of operations.


11


Plan of Operation





Our plan of operation for the next 12 months is to: (i)consider guidelines of industries in which we may have an interest; (ii) adopt a business plan regarding engaging in the business of any selected industry; and (iii) to commence such operations through funding and/or the acquisition of a “going concern” engaged in any industry selected.





During the next 12 months, our only foreseeable cash requirements will relate to maintaining our good standing or the payment of expenses associated with legal fees, accounting fees and reviewing or investigating any potential business venture, which may be advanced by management or principal stockholders as loans to us. Any such loan will be on terms no less favorable to us than would be available from a commercial lender in an arm’s length transaction. No advance or loan from any affiliate will be required to be repaid as a condition to any agreement with future acquisition partners.





When and if a business will commence or an acquisition made is presently unknown and will depend upon various factors, including but not limited to funding and its availability and if and when any potential acquisition may become available to us at terms acceptable to us.  The estimated costs associated with reviewing and verifying information about a potential business venture would be mainly for due diligence and the legal process and could cost between $5,000 and $25,000.  These funds will either be required to be loaned by management or raised in private offerings; we cannot assure you that it can raise funds, if needed.





Liquidity and Capital Resources





We have no cash or cash equivalents on hand. If additional funds are required, such funds may be advanced by management or stockholders as loans to us. During the year ended September 30, 2010, expenses were paid by a principal stockholder in the amount of $7,066.  During the same period in 2009, additional expenses by a principal stockholder totaled $6,760. The aggregate amount of $58,053 outstanding as of September 30, 2010, is unsecured and is due on demand.





Results of Operations





Other than maintaining its good corporate standing in the State of Delaware, compromising and settling its debts and seeking the acquisition of assets, properties or businesses that may benefit us and our stockholders, we have had no material business operations in the two most recent calendar years.





During the year ended September 30, 2010, we had a net loss of $7,066, resulting from operations.  During this same period ending September 30, 2009, we had a net loss of $6,760, also resulting from operations. The increase in our net loss from September 30, 2009, to September 30, 2010, was due to an increase in accounting fees.  Except as described above, we have received no revenues in either of our two most recent calendar years. See the Index to Financial Statements, Part II, Item 8, of this Annual Report.





Off-Balance Sheet Arrangements





We had no Off-Balance Sheet arrangements during the fiscal year ended September 30, 2010.





ITEM 7A:  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK





Not applicable.





12


ITEM 8:  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA





WESTCOTT PRODUCTS CORPORATION


(A Development Stage Company)





FINANCIAL STATEMENTS


September 30, 2010





TABLE OF CONTENTS










Report of Independent Registered Public Accounting Firm
14Balance Sheet
15Statements of Operations
16Statement of Stockholders' Equity (Deficit)
17Statements of Cash Flows
19Notes to Financial Statements
20













13





Report of Independent Registered Public Accounting Firm





The Board of Directors and Shareholders


Westcott Products Corporation [a development stage company]





We have audited the accompanying balance sheets of Westcott Products Corporation [a development stage company] as of September 30, 2010 and 2009, and the related statements of operations, stockholders’ equity (deficit), and cash flows for the years ended September 30, 2010 and 2009, and for the period from reactivation [October 1999] through September 30, 2010. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these 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 an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the Company’s internal controls over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 financial position of Westcott Products Corporation [a development stage company] as of September 30, 2010 and 2009, and the results of its operations and cash flows for the years ended September 30, 2010 and 2009, and for the period from reactivation through September 30, 2010, in conformity with accounting principles generally accepted in the United States of America.





The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has incurred a loss from operations and negative operating cash flows during the period from reactivation through September 30, 2010. These issues raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustment that might result from the outcome of this uncertainty.





/s/ Mantyla McReynolds, LLC


Mantyla McReynolds, LLC


Salt Lake City, Utah


December 3, 2010





14





WESTCOTT PRODUCTS CORPORATION


(A Development Stage Company)


BALANCE SHEET


September 30, 2010 and 2009


(Audited)








September 30,


September 30,2010


2009ASSETSAssetsCurrent AssetsCash

$
-


$
-Total Current Assets


-



-Total Assets

$
-


$
-LIABILITIES AND STOCKHOLDERS' DEFICITLiabilitiesCurrent Liabilities:Accrued Liabilities

$
-


$
-Payable to Shareholders


58,053



50,987Total Current Liabilities


58,053



50,987Total Liabilities


58,053



50,987Stockholders' DeficitPreferred Stock 50,000,000 shares authorized havinga par value of $.01, $1.00 liquidation value;zero issued and outstanding


-



-Capital Stock 50,000,000 shares authorized having aa par value of $.001 per share; 1,115,800 sharesissued and outstanding


1,116



1,116Additional Paid-in Capital


2,815,697



2,815,697Accumulated Deficit


(2,867,932
)


(2,867,932
)Accumulated (deficit) earnings in development stage


(6,934
)


132Total Stockholders' Deficit


(58,053
)


(50,987
)Total Liabilities and Stockholders' Deficit

$
-


$
-














See accompanying notes to financial statements.


15





WESTCOTT PRODUCTS CORPORATION


(A Development Stage Company)


STATEMENTS OF OPERATIONS


For the Years Ended September 30, 2010 and 2009 and


For the Period from Reactivation (October 1999) through September 30, 2010











For thePeriod fromOctober 1999For the


For the


(date ofYear


Year


reactivation)Ended


Ended


throughSeptember 30,


September 30,


September 30,2010


2009


2010Revenues

$
-


$
-


$
-General and Administrative Expenses


7,066



5,469



63,653Operating Income (Loss)


(7,066
)


(5,469
)


(63,653
)Other Income


-



-



56,719Net (Loss) Before Income Taxes


(7,066
)


(5,469
)


(6,934
)Current Year Provision for Income Taxes


-



-



-Net Income (Loss)

$
(7,066
)

$
(5,469
)

$
(6,934
)Basic Earnings (Loss) per Common Share

$
(0.01
)

$
(0.01
)

$
0.01Basic Weighted Average Shares Outstanding


1,115,800



1,115,800



433,047Diluted Earnings (Loss) per Common Share

$
(0.01
)

$
(0.01
)

$
-Diluted Weighted Average Shares Outstanding


1,115,800



1,115,800



433,047

















See accompanying notes to financial statements.





16


WESTCOTT PRODUCTS CORPORATION


(A Development Stage Company)


STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)


For the Period from Reactivation (October 1999) through September 30, 2010





DeficitAccumulated


NetAdditional





in


Stockholders'Preferred


Preferred


Common


Common


Paid-in


Accumulated


Development


EquityShares


Stock


Shares


Stock


Capital


Deficit


Stage


(Deficit)Balance, October 1, 1999


3,000,000


$
30,000



12,527,980


$
12,528


$
2,758,685


$
(2,867,932
)

$
-


$
(66,719
)Effect of reverse split 1 for 250,000










(12,527,356
)


(12,527
)


12,527











-Effect of stock dividend accounted for as split 200 for 1










124,176



124



(124
)










-Issued common stock for cash at par, $.001, March 11, 2000










12,000



12



14,988











15,000Net income for the period ended September 30, 2000


























(992
)


(992
)Balance, September 30, 2000


3,000,000



30,000



136,800



137



2,786,076



(2,867,932
)


(992
)


(52,711
)Net income for the period ended September 30, 2001


























(3,181
)


(3,181
)Balance, September 30, 2001


3,000,000



30,000



136,800



137



2,786,076



(2,867,932
)


(4,173
)


(55,892
)Net income for the period ended September 30, 2002


























(2,733
)


(2,733
)Balance, September 30, 2002


3,000,000



30,000



136,800



137



2,786,076



(2,867,932
)


(6,906
)


(58,625
)Net income for the period ended September 30, 2003


























(2,382
)


(2,382
)Balance, September 30, 2003


3,000,000



30,000



136,800



137



2,786,076



(2,867,932
)


(9,288
)


(61,007
)





17


Net income for the period ended September 30, 2004




















(2,170
)


(2,170
)Balance, September 30, 2004


3,000,000



30,000



136,800



137



2,786,076



(2,867,932
)


(11,458
)


(63,177
)Net income for the period ended September 30, 2005


























52,565



52,565Balance, September 30, 2005


3,000,000



30,000



136,800



137



2,786,076



(2,867,932
)


41,107



(10,612
)Preferred Stock Converted into Common Stock on 1 for 1 basis (adjusted to post split / dividend amounts)


(1,311,000
)


(13,110
)


1,000



1



13,109











-Cancellation of Preferred Shares


(1,311,000
)


(13,110
)










13,110











-Net income for the period ended September 30, 2006


























(11,386
)


(11,386
)Balance, September 30, 2006


378,000


$
3,780



137,800


$
138


$
2,812,295


$
(2,867,932
)

$
29,721


$
(21,998
)Common Shares issued for services










600,000



600















600Net income for the period ended September 30, 2007


























(14,396
)


(14,396
)Balance, September 30, 2007


378,000


$
3,780



737,800


$
738


$
2,812,295


$
(2,867,932
)

$
15,325


$
(35,794
)Conversion of Series A Convertible Preferred stock into like number of Common Shares


(378,000
)


(3,780
)


378,000



378



3,402Net income for the period ended September 30, 2008


























(8,433
)


(8,433
)Balance, September 30, 2008


-


$
-



1,115,800


$
1,116


$
2,815,697


$
(2,867,932
)

$
6,892


$
(44,227
)Net income for the period ended September 30, 2009


























(6,760
)


(6,760
)Balance, September 30, 2009


-


$
-



1,115,800


$
1,116


$
2,815,697


$
(2,867,932
)

$
132


$
(50,987
)Net income for the period ended September 30, 2010


























(7,066
)


(7,066
)Balance, September 30, 2010


-


$
-



1,115,800


$
1,116


$
2,815,697


$
(2,867,932
)

$
(6,934
)

$
(58,053
)





See accompanying notes to financial statements.


18





WESTCOTT PRODUCTS CORPORATION


(A Development Stage Company)


STATEMENTS OF CASH FLOWS


For the Years Ended September 30, 2010 and 2009 and


for the Period from Reactivation (October 1999) through September 30, 2010








For thePeriod fromOctober 1999For the


For the


(date ofYear


Year


reactivation)Ended


Ended


throughSeptember 30,


September 30,


September 30,2010


2009


2010Cash Flows Used For Operating ActivitiesNet Income (Loss)

$
(7,066
)

$
(6,760
)

$
(6,934
)Adjustments to reconcile net loss to net cashprovided by operating activities:Stock Issued for Expenses


-



-



600Increase (decrease) in accrued liabilities


-



-



-Increase (decrease) in shareholder loans


7,066



6,760



58,053Increase (decrease) in taxes payable


-



-



(56,719
)Net Cash (used in) Operating Activities


-



-



(5,000
)Cash Flows from Financing ActivityProceeds from issuance of common stock


-



-



15,000Principal payments on loans


-



-



(10,000
)Net Cash Provided by Financing Activities


-



-



5,000Net Increase/(Decrease) in Cash


-



-



-Beginning Cash Balance


-



-



-Ending Cash Balance

$
-


$
-


$
-Supplemental Disclosure of Cash Flow InformationCash paid during the year for interest

$
-


$
-


$
-Cash paid during the year for income taxes


-



-



-Stock issued in exchange for accrued liability/expense


-



-



600








See accompanying notes to financial statements.


19





WESTCOTT PRODUCTS CORPORATION


(A Development Stage Company)


NOTES TO FINANCIAL STATEMENTS


September 30, 2010





NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





(a) Organization





Westcott Products Corporation (the Company) was chartered in the State of Delaware on June 24, 1986, as the surviving entity in a merger with Lee Building Products, Inc. The Company had been dormant for many years but began the process of reactivation in October 1999 and is now in the process of seeking new business opportunities.





Currently, management’s plans include finding a well-capitalized merger candidate to recommence its operations.





The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America.  The following summarizes the more significant of such policies:





(b) Statement of Cash Flows





For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.  During the period ending September 30, 2009 the Company did not have non-cash investing or financing activities.





(c) Income Taxes





The Company applies the provisions of Financial Accounting Standards Board Accounting Standard Codification (“ASC”) 740 Income Taxes.  The Standard requires an asset and liability approach for financial accounting and reporting for income taxes, and the recognition of deferred tax assets and liabilities for the temporary differences between the financial reporting basis and tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. Due to a loss from inception, the Company has no tax liability.  At this time the Company has no deferred taxes arising from temporary differences between income for financial reporting and income tax purposes.





We classify tax-related penalties and net interest on income taxes as income tax expense. As of September 30, 2010 and 2009, no income tax expense had been incurred.





(d) Net Loss Per Common Share





Basic loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is calculated to give effect to common stock equivalents.  The per share calculations reflect the reverse-split and stock dividend (treated as a forward-split).  The following is a reconciliation of the numerators and denominators of the basic and diluted EPS computations:


20





For the PeriodfromOctober 1999For the

For the

(date ofYear

Year

reactivation)Ended

Ended

throughSeptember 30,

September 30,

September 30,2010

2009

2010Shares used in Basic per Share Amounts:Weighted average common shares outstanding
1,115,800


1,115,800

433,047Shares used in Diluted per Share amounts:Diluted weighted average preferred stock
—


—

—Diluted Weighted Average Common Shares Outstanding
1,115,800


1,115,800

433,047Anti-dilutive Weighted Average Common Shares Outstanding
—


—

—





(e) Impairment of Long-Lived Assets





The Company reviews long-lived assets, at least annually, to determine if impairment has occurred and whether the economic benefit of the asset (fair value for assets to be used and fair value less disposal costs for assets to be disposed of) is expected to be less than the carrying value. Triggering events, which signal further analysis, consist of a significant decrease in the asset’s market value, a substantial change in the use of an asset, a significant physical change in the asset, a significant change in the legal or business climate that could affect the asset, an accumulation of costs significantly in excess of the amount originally expected to acquire or construct the asset, or a history of losses that imply continued losses associated with assets used to generate revenue. The Company has no long-lived assets as of September 30, 2010 and 2009.





(f) Use of Estimates in Preparation of Financial Statements





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





(g) Revenue Recognition





The Company shall recognize revenues in accordance with the Securities & Exchange Commission Staff Accounting Bulletin (SAB) number 104, “Revenue Recognition.”  SAB 104 clarifies application of U.S. generally accepted accounting principles to revenue transactions. Accordingly the Company shall recognize revenues when earned which shall be as products or services are delivered to customers. The Company shall also record accounts receivable for revenue earned but not yet collected. An allowance for bad debts shall be provided based on estimated losses. For revenue received in advance of service the Company shall record a current liability as deferred revenue until the earnings process is complete.





(h) Impact of New Accounting Standards





Effective July 1, 2009, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 105-10, Generally Accepted Accounting Principles – Overall (“ASC 105-10”), which was formerly known as SFAS 168.  ASC 105-10 establishes the FASB Accounting Standards Codification (the “Codification”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. GAAP.  Rules and interpretive releases of the Securities and Exchange Commission (the "SEC") under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants.  All guidance contained in the Codification carries an equal level of authority.  The Codification superseded all existing non-SEC accounting and reporting standards and all other non-grandfathered, non-SEC accounting literature not included in the Positions or Emerging


21


Issues Task Force Abstracts.  Instead, it will issue Accounting Standards Updates (“ASUs”).  The FASB will not consider ASUs as authoritative in their own right.  ASUs will serve only to update the Codification, provide background information about the guidance and provide the basis of conclusions on the change(s) in the Codification.  References made to FASB guidance throughout this document have been updated for the Codification.





In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business Combinations (“SFAS 141R”), which was primarily codified into Topic 802 “Business Combinations’ in the ASC, and SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of Accounting Research Bulletin No. 51(“SFAS 160”), which was primarily codified into Topic 810 “Consolidations” in the ASC. SFAS No. 141R requires an acquirer to measure the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquiree at their fair values on the acquisition date, with goodwill being the excess value over the net identifiable assets acquired.  SFAS No. 160 clarifies that a noncontrolling interest in a subsidiary should be reported as equity in the consolidated financial statements. The calculation of earnings per share will continue to be based on income amounts attributable to the parent. SFAS No. 141R and SFAS No. 160 are effective for financial statements issued for fiscal years beginning after December 15, 2008.  Early adoption is prohibited.  SFAS No. 141R will impact the valuation of business acquisitions made in 2009 and forward.  The Company adopted SFAS No. 160 on October 1, 2009.  As a result, implementation of SFAS No. 160 had no impact on the Company’s condensed consolidated financial statements.





In October 2009, the FASB issued Accounting Standards Update No. 2009-13 for Revenue Recognition – Multiple Deliverable Revenue Arrangements (Subtopic 605-25) “Subtopic”. This accounting standard update establishes the accounting and reporting guidance for arrangements under which the vendor will perform multiple revenue – generating activities. Vendors often provide multiple products or services to their customers. Those deliverables often are provided at different points in time or over different time periods. Specifically, this Subtopic addresses how to separate deliverables and how to measure and allocate arrangement consideration to one or more units of accounting.  The amendments in this guidance will affect the accounting and reporting for all vendors that enter into multiple-deliverable arrangements with their customers when those arrangements are within the scope of this Subtopic.  This Statement is effective for fiscal years beginning on or after June 15, 2010. Earlier adoption is permitted. If a vendor elects early adoption and the period of adoption is not the beginning of the entity’s fiscal year, the entity will apply the amendments under this Subtopic retrospectively from the beginning of the entity’s fiscal year.  The presentation and disclosure requirements shall be applied retrospectively for all periods presented. Currently, Management believes this Statement will have no impact on the financial statements of the Company once adopted.





The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operation, financial position or cash flows.  Based on that review, the Company believes that none of these pronouncements will have a significant effect on its financial statements





NOTE 2 LIQUIDITY AND GOING CONCERN





The Company is a development stage enterprise, has sustained a loss from operations since reactivation of $63,653 and has had negative cash flows from operating activities during the period from reactivation [October 1999] through September 30, 2010. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustment that might result from the outcome of this uncertainty. Currently, management’s plans include finding a well-capitalized merger candidate to recommence its operations.





NOTE 3 RELATED PARTY TRANSACTION





During the years ended September 30, 2010 and 2009, the Company borrowed $7,066 and $6,760, respectively from an investor to pay operating expenses.  The loan is non-interest bearing, unsecured and payable on demand. The balance of the loan as of September 30, 2010 and 2009 is $58,053 and $50,987, respectively.


22


NOTE 4 EQUITY





In October of 1999, the Company began raising money in an effort to reactivate. On March 11, 2000, the Company issued 15,000,000 pre-split/dividend (or 12,000 post-split/dividend) shares of common stock at par ($.001) for $15,000 cash.





On or about September 28, 2006, the Company’s largest Series A Preferred shareholder converted 1,311,000 (1,200 post-split/dividend shares) Preferred Shares to our Common Stock that is subject to the re-capitalization and has cancelled another 1,311,000 leaving his Preferred holdings at 28,000 shares and the total number of outstanding Series A Preferred Shares at 378,000. The preferred shares are convertible into common stock on a one for one basis at the option of the holder.  The preferred shares carry a liquidation preference of one dollar per share.  In the event of liquidation, any excess proceeds are paid to common shareholders.  In the event of liquidation with which there is a deficit in the amounts payable, preferred shareholders will share ratably in any distribution.  Each preferred share has one (1) vote and votes as a class with common shares.





On or about November 28, 2006, the Company filed a Definitive Information Statement on Form 14C, whereby the Company amended its Articles of Incorporation with the State of Delaware and issued common stock to the members of our Board of Directors for compensation of services. The Amended Articles of Incorporation were unanimously adopted by our Board of Directors and certain shareholders owning 17,211,000 shares of our common stock or approximately 59.7% of our outstanding voting securities to effect a re-capitalization of our outstanding common stock in the form of a pro rata 250,000 for one reverse split and an immediate 200 for one pro rata dividend of our outstanding common stock.





On or about December 7, 2006, the Board of Directors authorized the issuance of a total of 29,601 pre- capitalization shares (2,600 post-split/dividend shares – 2,800 shares were originally issued but 200 were subsequently returned) of our common stock to reconcile our transfer records with certificates presented by The Depository Trust Co.





On December 20, 2006, a total of 600,000 post-re-capitalization shares of our common stock that are “restricted securities” as defined in Rule 144 of the SEC were issued to the members of our Board of Directors contemporaneously with the dividend. See the Exhibit Index for a copy of our Information Statement on Form 14C. Because there has been no “established public market” and the shares are restricted, the Company has estimated the fair value of these shares to be $0.001. The Company accrued $600 in executive compensation for these shares during the year ended September 30, 2006.





On or about February 14, 2008, we received notice of conversion and subsequently effected the conversion of 378,000 shares of Series A Convertible Preferred Stock into a like number of common shares pursuant to our Certificate of Designation set forth in August of 1986.  This conversion, at the request of the Series A Preferred holders, constitutes the elimination of any outstanding Preferred Shares.





NOTE 5 ACCRUED LIABILITIES





During the year ended September 30, 2005, the Company was relieved of both its Federal Tax lien of $1,046 and its Judgment lien of $55,673 for back payroll taxes. The Company has recoded this as other income.





NOTE 6 INCOME TAXES





The provision for income taxes consists of the following:


23





2010



2009Current tax
$
—


$
—Deferred tax benefit

(1,060
)


(1,014
)Benefits of operating loss carryforwards

1,060



1,014Provision for Income Tax
$
—


$
—





Below is a summary of deferred tax asset calculations on net operating loss carry forward amounts as of September 30, 2010.  Currently there is no reasonable assurance that the Company will be able to take advantage of a deferred tax asset. Thus, an offsetting allowance has been established for the deferred asset.





Description

NOL Balance


Tax


RateNet Operating Loss

$
63,654


$
9,548



15
%Valuation Allowance






(9,548
)Deferred Tax Asset – 9/30/2009





$
—





During the years ended September 30, 2010 and 2009, the valuation allowance increased $1,060 and $1,014, respectively.





The Company has the following operating loss carry forwards available at September 30, 2010:





Operating LossesExpires

Amount2020

9922021

3,1822022

2,7332023

2,3822024

2,1702025

4,1542026

11,3862027

14,3962028

8,4332029

6,7602030

7,066





Reconciliation between income taxes at the statutory tax rate (15%) and the actual income tax provision for continuing operations follows:





2010



2009Expected Tax Provision
$
(1,060
)

$
(1,014
)Effect of:Increase in Valuation Allowance

1,060



1,014Actual Tax Provision
$
—


$
—





24


Uncertain Tax Positions





The Company adopted the provisions of FIN 48 on October 1, 2007.  As a result of this adoption, the Company has evaluated its uncertain tax positions as required by FIN 48 and determined that any required adjustments would not have a material impact on the Company’s balance sheet, income statement, or statement of cash flows.





A reconciliation of our unrecognized tax benefits for the financial year ending September 30, 2010 is presented in the table below:





Balance as of October 1, 2009

$
0.00Additions based on tax positions related to the current year


0.00Reductions for tax positions of prior years


0.00Reductions due to expiration of statute of limitations


0.00Settlements with taxing authorities


0.00Balance as of September 30, 2010

$
0.00





All years prior to 2007 are closed by expiration of the statute of limitations.  The tax year ended September 30, 2007, was closed by expiration of the statute of limitations in December 2010.  The years ended September 30, 2009, 2009 and 2010 are open for examination.





25


ITEM 9:  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE





None; not applicable.





ITEM 9A:  CONTROLS AND PROCEDURES





Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act).  Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes of accounting principles generally accepted in the United States.





Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.





Our management, with the participation of the principal executive officer and principal financial officer, evaluated the effectiveness of the Company’s internal control over financial reporting as of September 30, 2010.  In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control – Integrated Framework.  Based on this evaluation, our management, with the participation of the principal executive officer and principal financial officer, concluded that, as of September 30, 2010, our internal control over financial reporting was effective.





This Annual Report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by our registered public accounting firm pursuant to rules of the Security and Exchange Commission that permit us to provide only management’s report in this Annual Report.





Changes in Internal Control Over Financial Reporting





There have been no changes in internal control over financial reporting during the last fiscal quarter of our fiscal year ended September 30, 2010.





ITEM 9B:  OTHER INFORMATION





None.





PART III





ITEM 10:  DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE





Identification of Directors and Executive Officers





Our executive officers and directors and their respective ages, positions and biographical information are set forth below.





Name
Age
Positions Held
Director SinceWayne Bassham
51
President & Director
March 2000Todd Albiston
52
Vice President & Director
March 2000





Background and Business Experience





Wayne Bassham, our President is 51 years of age. He has been employed as a manager for Harley-Davidson of Salt Lake City for the past twenty years. Mr. Bassham is the President and a director of Bear Lake Recreation, Inc., a Nevada company, which has been deemed a blank check company.  Mr. Bassham is the Secretary/Treasurer and a director of Northsight Capital, Inc., which has also been deemed to be a blank check company.


26





Todd Albiston, our Vice President is 52 years of age. Mr. Albiston has been employed as an account manager for Physician Sales and Service, Inc. for the past seven years. For the preceding seventeen years, Mr. Albiston was an account manager for Cardinal Medical Corporation, a medical device company.  Mr. Albiston is the Secretary/Treasurer and a director of Bear Lake Recreation, Inc., a Nevada company, which has been deemed a blank check company.





Significant Employees





We have no employees who are not executive officers, but who are expected to make a significant contribution to the Company’s business.





Family Relationships





There are no family relationships between our officers and directors.





Involvement in Other Public Companies





Wayne Bassham is the President and a director of Bear Lake Recreation, Inc., a Nevada company (“Bear Lake”), which has been deemed a blank check company.  Todd Albiston is also a director and the Secretary/Treasurer of Bear Lake.  Bear Lake Recreation, Inc. files reports with the SEC under Section 13 of the Exchange Act. Mr. Bassham is the Secretary/Treasurer and a director of Northsight Capital, Inc., which has also been deemed to be a blank check company, and which also files reports with the SEC.





Mr. Albiston is the Secretary/Treasurer and a director of Bear Lake Recreation, Inc., a Nevada company, which has been deemed a blank check company, and which files reports with the SEC under Section 13 of the Exchange Act.  Mr. Albiston is also a director of Rx Bids, a Nevada corporation, which also files reports with the SEC.





Involvement in Certain Legal Proceedings





During the past ten (10) years, none of our present or former directors, executive officers or persons nominated to become directors or executive officers (or those in similar positions with us) has been the subject of any of the following:





(1) A petition under the federal bankruptcy laws or any state insolvency law was filed by or against, or a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such person, or any partnership in which he was a general partner at or within two (2) years before the time of such filing, or any corporation or business association of which he was an executive officer at or within two (2) years before the time of such filing;





(2) Such person was convicted in a criminal proceeding or is a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);





(3) Such person was the subject of any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him or her from, or otherwise limiting, the following activities:





(i) Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person ofany of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;





(ii) Engaging in any type of business practice; or


27





(iii) Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws;





(4) Such person was the subject of any order, judgment or decree, not subsequently reversed,


suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than sixty (60) days the right of such person to engage in any activity described in paragraph (f)(3)(i) of this section, or to be associated with persons engaged in any such activity;





(5) Such person was found by a court of competent jurisdiction in a civil action or by the SEC to have violated any federal or state securities law, and the judgment in such civil action or finding by the SEC has not been subsequently reversed, suspended, or vacated;





(6) Such person was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated;





(7) Such person was the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:





(i) Any federal or state securities or commodities law or regulation; or





(ii) Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or





(iii) Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or





(8) Such person was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.





Compliance with Section 16(a) of the Exchange Act





The common stock of the Company is registered under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), and therefore, the officers, directors and holders of more than 10% of our outstanding shares are subject to the provisions of Section 16(a) which requires them to file with the SEC initial reports of ownership and reports of changes in ownership of common stock and our other equity securities.  Officers, directors and greater than 10% beneficial owners are required by SEC regulations to furnish us with copies of all Section 16(a) reports they file.  Based solely upon review of the copies of such forms furnished to us during the fiscal year ended September 30, 2010, the following were filed timely:





Name
Type
FiledWayne Robert Bassham
Form 3
September 30, 2005Todd Albiston
Form 4
August 20, 2008Kent Faulkner
Form 4
August 20, 2008





Code of Ethics





We have adopted a Code of Ethics for our principal executive and financial officers.  See Part IV, Item 15.





28


Corporate Governance





Nominating Committee





We have not established a Nominating Committee because, due to our lack of operations and the fact that we presently have only two directors and executive officers, we believe that we are able to effectively manage the issues normally considered by a Nominating Committee.  Following the entry into any business or the completion of any acquisition, merger or reorganization, a further review of this issue will no doubt be necessitated and undertaken by new management.





If we do establish a Nominating Committee, we will disclose this change to our procedures in recommending nominees to our Board of Directors.





Audit Committee





We have not established an Audit Committee because, due to our lack of operations and the fact that we presently have only two directors and executive officers, we believe that we are able to effectively manage the issues normally considered by an Audit Committee.  Following the entry into any business or the completion of any acquisition, merger or reorganization, a further review of this issue will no doubt be necessitated and undertaken by new management.





ITEM 11:  EXECUTIVE COMPENSATION





All Compensation





Our officers and directors (including Ken Faulkner who resigned in August, 2008) received an aggregate of 600,000 shares (200,000 shares each) for services valued at $200 each on September 28, 2006, and none for the years ended September 30, 2010, 2009, 2008, and 2007.  These shares were valued at $0.001 per share.





SUMMARY COMPENSATION TABLE





Name and Principle Position
Year
Salary

($)
Bonus

($)
Stock Awards

($)
Option Awards

($)
Non-

Equity

Incentive

Plan

Compen-sation

($)
Nonqual-ified Deferred Compen-sation

($)
All

Other

Compen-

sation

($)
Total

Earnings

($)(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)Wayne Bassham
09/30/10
0
0
0
0
0
0
0
0President, Director
09/30/09
0
0
0
0
0
0
0
009/30/08
0
0
0
0
0
0
0
009/30/07
0
0
0
0
0
0
0
009/30/06
0
0
200
0
0
0
0
200Todd Albiston
09/30/10
0
0
0
0
0
0
0
0Vice President,
09/30/09
0
0
0
0
0
0
0
0Director
09/30/08
0
0
0
0
0
0
0
009/30/07
0
0
0
0
0
0
0
009/30/06
0
0
200
0
0
0
0
200





Outstanding Equity Awards at Fiscal Year-End





None; not applicable.


29


Compensation of Directors





There are no standard arrangements pursuant to which our directors are compensated for any services provided as director, including services for committee participation or for special assignments. Our directors received no compensation for service as directors for the year ended September 30, 2010.





ITEM 12:  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS





Security Ownership of Certain Beneficial Owners





The following table sets forth the ownership by any person known to us to be the beneficial owner of more than five percent (5%) of any of our outstanding voting securities as of November 9, 2010.  Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities.  The persons named in the table below have sole voting power and investment power with respect to all shares of common stock shown as beneficially owned by them.  The percentage of beneficial ownership is based upon 1,115,800 shares of common stock outstanding at that date.





Beneficial Owners





Title of Class
Name and Address of Beneficial Owners
Amount and Nature of Beneficial Ownership
Percent of ClassCommon
Todd Albiston, Vice President
297,500
26.66%8346 S. Viscounti DriveSandy, Utah 84093Common
Wayne Bassham, President
200,000
17.92%8867 S. Capella WaySandy, Utah 84093Common
Thomas J. Howells
100,000
8.96%4685 S. Highland Dr., Suite 202Salt Lake City, Utah 84117





Management





Title of Class
Name and Address of Beneficial Owners
Amount and Nature of Beneficial Ownership
Percent of ClassCommon
Todd Albiston, Vice President
297,500
26.66%8346 S. Viscounti DriveSandy, Utah 84093Common
Wayne Bassham, President
200,000
17.92%8867 S. Capella WaySandy, Utah 84093





SEC Rule 13d-3 generally provides that beneficial owners of securities include any person who, directly or indirectly, has or shares voting power and/or investment power with respect to such securities, and any person who has the right to acquire beneficial ownership of such security within 60 days.  Any securities not outstanding which are subject to such options, warrants or conversion privileges exercisable within 60 days are treated as outstanding for the purpose of computing the percentage of outstanding securities owned by that person.  Such securities are not treated as outstanding for the purpose of computing the percentage of the class owned by any other person.  At the present time there are no outstanding options or warrants.


30


Changes in Control





There are no additional present arrangements or pledges of our securities which may result in a change in control of the Company.  However, there are no provisions in our Articles of Incorporation or Bylaws that would delay, defer or prevent a change in control.





Securities Authorized for Issuance under Equity Compensation Plans





None; not applicable.





ITEM 13:  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTORS INDEPENDENCE





Transactions with Related Persons





There were no material transactions, or series of similar transactions, during our last two fiscal years, or any currently proposed transactions, or series of similar transactions, to which we or any of our subsidiaries was or is to be a party, in which the amount involved exceeded the lesser of $120,000 or 1% of our total assets at year-end for the last two completed fiscal years and in which any director, executive officer or any security holder who is known to us to own of record or beneficially more than five percent of any class of our common stock, or any member of the immediate family of any of the foregoing persons, had an interest.





Promoters and Certain Control Persons





See the heading “Transactions with Related Persons” above.





Parents of the Smaller Reporting Company





We have no parents.





Director Independence





We do not have any independent directors serving on our Board of Directors.





ITEM 14:  PRINCIPAL ACCOUNTANT FEES AND SERVICES





The following is a summary of the fees billed to us by our principal accountants during the fiscal years ended September 30, 2010 and 2009:





Fee Category


2010


2009Audit Fees

$
6,671

$
5,964Audit-related Fees

$
0

$
0Tax Fees

$
0

$
350All Other Fees

$
0

$
0Total Fees

$
6,671

$
6,314





Audit Fees -Consists of fees for professional services rendered by our principal accountants for the audit of our annual financial statements and review of the financial statements included in our Forms 10-QSB or services that are normally provided by our principal accountants in connection with statutory and regulatory filings or engagements.





Audit-related Fees - Consists of fees for assurance and related services by our principal accountants that are reasonably related to the performance of the audit or review of our financial statements and are not reported under “Audit fees.”





31


Tax Fees - Consists of fees for professional services rendered by our principal accountants for tax compliance, tax advice and tax planning.





All Other Fees - Consists of fees for products and services provided by our principal accountants, other than the services reported under “Audit fees,” “Audit-related fees,” and “Tax fees” above.





Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Auditors





We have not adopted an Audit Committee; therefore, there is no Audit Committee policy in this regard. However, we do require approval in advance of the performance of professional services to be provided to us by our principal accountant. Additionally, all services rendered by our principal accountant are performed pursuant to a written engagement letter between us and the principal accountant.





PART IV





ITEM 15:  EXHIBITS AND FINANCIAL STATEMENT SCHEDULES





(a)(1)(2)    Financial Statements.  See the audited financial statements for the year ended September 30, 2009 contained in Item 8 above which are incorporated herein by this reference.





(a)(3)         Exhibits.  The following exhibits are filed as part of this Annual Report:





Exhibit No.
Identification of Exhibit3.1
Articles of Incorporation(1)3.1(i)
Certificate of Amendment of the Articles of Incorporation(1)3.2
Bylaws(1)14.1
Code of Ethics(2)20.1
DEF14C - Definitive Information Statement filed November 28, 2006, amending the Company’s Articles of Incorporation to effect a re-capitalization of our outstanding common stock and issuing common stock to the members of our Board of Directors for compensation of services.31.1
Certification of Principal Executive Officer as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002*31.2
Certification of Principal Financial Officer as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002*32.2
Certification of Principal Executive and Financial Officer pursuant to 18 U.S.C section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*





(1)  Filed with our initial Form 10 on January 23, 1989, and incorporated herein by reference.


(2)  Filed with our initial Form 10-KSB for September 30, 2003, and incorporated herein by reference.





*Filed herewith.


32





SIGNATURES





Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.





WESTCOTT PRODUCTS CORPORATION





Date:
December 3, 2010

By:
/s/Wayne BasshamWayne BasshamPresident and DirectorPrincipal Executive Officer





Pursuant to the requirements of the Securities Exchange Act of 1934 this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.





WESTCOTT PRODUCTS CORPORATION





Date:
December 3, 2010

By:
/s/Wayne BasshamWayne BasshamPresident and DirectorPrincipal Executive OfficerDate:
December 3, 2010

By:
/s/Todd AlbistonTodd AlbistonVice President and DirectorPrincipal Financial Officer