UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


WASHINGTON,
D.C. 20549


_______________




FORM
10-Q


_______________




x
              QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934




For
the quarterly period ended March 31, 2009




o
              TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For the transition period from
______to______.




ARTCRAFT
V, INC.


(Exact
name of registrant as specified in Charter




Delaware
                          
                          000-50818
                          
                          26-0744863(State
      or other jurisdiction of
                            incorporation
      or organization)
                          
                          (Commission
      File No.)
                          
                          (IRS
      Employee Identification
No.)





Room
1131, XianKeJiDian Building


BaGuaSi
Road Futian District


Shenzhen
City, China 518029


(Address
of Principal Executive Offices)


_______________




011-86775
23990959


(Issuer
Telephone number)


_______________




(Former
Name or Former Address if Changed Since Last Report)




Check
whether the issuer (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 issuer was required to file such reports), and (2)has been
subject to such filing requirements for the past 90 days. Yes x  No o




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





Large
Accelerated Filer £                              Accelerated
Filer£                                   Non-Accelerated
Filero                          Smaller
Reporting Companyx





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




As of
June 12, 2009 the Company had 10,250,000 shares of common stock
outstanding.













ARTCRAFT
V, INC.


FORM
10-Q


March
31, 2009


INDEX






PART
I-- FINANCIAL INFORMATION




Item
      1.
            Financial
      StatementsItem
      2.
            Management’s
      Discussion and Analysis of Financial ConditionItem
      3
            Quantitative
      and Qualitative Disclosures About Market RiskItem
      4T.
            Control
      and Procedures




PART
II-- OTHER INFORMATION




Item
      1
            Legal
      ProceedingsItem
      1A.
            Risk
      FactorsItem
      2.
            Unregistered
      Sales of Equity Securities and Use of ProceedsItem
      3.
            Defaults
      Upon Senior SecuritiesItem
      4.
            Submission
      of Matters to a Vote of Security HoldersItem
      5.
            Other
      InformationItem
      6.
            Exhibits
      and Reports on Form 8-K




SIGNATURE












ITEM
1. FINANCIAL INFORMATION





The
financial statements of the Company are included following the signature page of
this Form 10-Q.





ITEM
2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.





BUSINESS
OVERVIEW




Artcraft
V, Inc. was incorporated under the laws of the State of Delaware on June 7,
2004. On November 7, 2005, the Company entered into an Exchange Agreement with
Top Interest International Limited (“Top Interest”). Top Interest owned 70%
equity interest of Shenzhen Xin Kai Yuan Info Consult Co., Ltd. (“188info.com”)
which operates 188info.com, a professional information searching platform that
is engaged in the business of providing information search engine, online web
application and image designing, digital network service, online market
research, online promotion and advertising services, and query searches for both
individuals and businesses. Top Interest was incorporated under the laws of the
British Virgin Islands. 188info.com was legally established under the laws of
the People’s Republic of China. When used in these notes, the terms “Company”,
“we”, “our” or “us” mean Artcraft V, Inc. and its subsidiary.




Pursuant
to the Stock Purchase and Share Exchange Agreement, the Company purchased all of
the issued and outstanding shares of Top Interest from the shareholders for
issuance of a total of 10,000,000 shares of the Company’s common stock, or
approximately 99% of the total issued and outstanding shares. This transaction
closed on November 7, 2005 and has been accounted for as a reverse
acquisition.




We
operated our business through our wholly owned subsidiary, Top Interest
International Limited, which owned a 70% interest in 188info.com, which operates
"188Info" service in the PRC.




On
September 22, 2008 the Company’s board of directors agreed to sell the Company’s
70% interest in 188info.com in order to protect its shareholders’ interest as
“188info.com” continues to generate operating losses and negative cash flow. The
Company entered into an agreement with Shenzhen Dingyi Investment Consulting
Company Co., Ltd on September 22, 2008 to sell them its 70% interest in
188info.com for $0.15 (RMB1) and the assumption of all assets and liabilities of
188info.com. The transaction was completed and approved by the PRC on October
17, 2008.




Due to
the sale of 188info.com we do not expect to generate any revenues over the next
twelve months. Our principal business objective for the next twelve months will
be to seek, investigate and, if such investigation warrants, engage in a
business combination with a private entity whose business presents an
opportunity for our shareholders.




During
the next twelve months we anticipate incurring costs related to filing of
Exchange Act reports, general administrative costs and costs relating to
consummating an acquisition. We believe we will be able to meet these costs
through loans by our stockholders, management or other outside investors. We
have no specific plans, understandings or agreements with respect to the raising
of such funds, and we may seek to raise the required capital by the issuance of
equity or debt securities or by other means. Since we have no such arrangements
or plans currently in effect, our inability to raise funds for the consummation
of an acquisition may have a severe negative impact on our ability to become a
viable company.




In the
future, we will attempt to acquire other assets or business operations that will
maximize shareholder value. No specific assets or businesses have been
definitively identified and there is no certainty that any such assets or
business will be identified or any transactions will be
consummated.






-1-




We expect
that we will need to raise funds in order to effectuate our business plan. We
will seek to establish or acquire businesses or assets with funds raised either
via the issuance of shares or debt. There can be no assurance that additional
capital will be available to us. We may seek to raise the required capital by
other means. We may have to issue debt or equity or enter into a strategic
arrangement with a third party. We currently have no agreements, arrangements or
understandings with any person to obtain funds through bank loans, lines of
credit or any other sources. Since we have no such arrangements or plans
currently in effect, our inability to raise funds will have a severe negative
impact on our ability to remain a viable company. In pursuing the foregoing
goals, we may seek to expand or change the composition of the Board or make
changes to our current capital structure, including issuing additional shares or
debt and adopting a stock option plan.





RESULTS
OF OPERATIONS FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2009 AND
2008





The
following table presents certain consolidated statement of operations
information for the three month periods ended March 31, 2009 and 2008. The
discussion following the table is based on these results. Certain columns may
not add due to rounding.




Three
      month ended March 31,2009
                                      
                                      
                                      2008Revenue,
      net
                                      
                                      $
                                      -
                                      
                                      
                                      $
                                      -Operating
      Expenses:General and
      administrative expenses
                                      
                                      
                                      10,514
                                      
                                      
                                      
                                      7,986Loss
      from operations
                                      
                                      
                                      (10,514
                                      )
                                      
                                      
                                      (7,986
                                      )Loss
      from continued operationsDiscontinued
      OperationLoss
      from operations of entity disposed
                                      
                                      
                                      
                                      
                                      
                                      
                                      (903
                                      )Net
      loss
                                      
                                      
                                      (10,514
                                      )
                                      
                                      
                                      (8,889
                                      )Other
      comprehensive incomeForeign
      currency translation
                                      
                                      
                                      -
                                      
                                      
                                      
                                      530Comprehensive
      loss
                                      
                                      
                                      (10,514
                                      )
                                      
                                      
                                      (8,359
                                      )




Net
Revenue





Net sales
for the three months ended March 31, 2009 totaled $0 compared to $0 (after
reclassification of $7,389 revenue related to the discontinued entity) for the
three months ended March 31, 2008. Revenue reduced to $0 in the current quarter
compared to same period last year after discontinued operation. The decrease in
revenue is due to the fact that the Company became dormant after the sale of the
subsidiary 188info.com.







-2-






Operating
Expense





General
and administrative expenses for the three month period ended March 31, 2009
totaled $10,514 compared to $7,986 (after reclassification of $8,184 expenses
related to the discontinued entity) for the three month ended March 31,
2008.  The increase in operating expense of $2,528 after discontinued
operations was due to the increase in professional fees.





Loss
from Continued Operations





Loss from
operations for the three month period ended March 31, 2009 totaled $10,514
compared to $7,986 for the three month ended March 31, 2008 (after
reclassification of discontinued operations).  The increase in loss
from operations of $2,528 or approximately 32% was due to the increase in
expenses and no revenue as the Company disposed its subsidiary
188info.com.





Net
Loss





Net loss
for the three month period ended March 31, 2009 totaled $10,514 compared to
$8,889 for the three month period ended March 31, 2008, an increase of $1,625 or
approximately 18%. The increase in net loss was primarily due to the increase in
professional fees and decrease in revenue as described above.





LIQUIDTY
AND CAPITAL RESOURCES




Cash has
historically been generated from operations. Operations and liquidity needs are
funded primarily through cash flows from operations and short-term borrowings.
Cash and cash equivalents were $1,091 at March 31, 2009 and current assets
totaled $1,091 at March 31, 2009. The Company's total current liabilities were
$422,642 at March 31, 2009. Working capital at March 31, 2009 was $(421,551).
During the three month ended March 31, 2009, net cash used in operating
activities was $(6,000).





We will
continue to evaluate alternative sources of capital to meet our growth
requirements, including other asset or debt financing, issuing equity securities
and entering into other financing arrangements. There can be no assurance,
however, that any of the contemplated financing arrangements described herein
will be available and, if available, can be obtained on terms favorable to
us.




Our
operations and short term financing does not currently meet our cash
needs.  We believe we will be able to generate revenues from sales and
raise capital through private placement offerings of its equity securities to
provide the necessary cash flow to meet anticipated working capital
requirements.  Our actual working capital needs for the long and short
term will depend upon numerous factors, including our operating results,
competition, and the availability of credit facilities, none of which can be
predicted with certainty.  Our future expansion will depend on
operating results and will be limited by its ability to enter into financings
and raise capital.




WORKING
CAPITAL REQUIREMENTS




Historically
operations and short term financing have been sufficient to meet our cash needs.
We believe that we will be able to generate revenues from sales and raise
capital through private placement offerings of its equity securities to provide
the necessary cash flow to meet anticipated working capital requirements.
However, our actual working capital needs for the long and short term will
depend upon numerous factors, including operating results, competition, and the
availability of credit facilities, none of which can be predicted with
certainty. Future expansion will be limited by the availability of financing
products and raising capital.




OFF-BALANCE
SHEET ARRANGEMENTS




We have
never entered into any off-balance sheet financing arrangements and have never
established any special purpose entities. We have not guaranteed any debt or
commitments of other entities or entered into any options on non-financial
assets.








-3-





ITEM
3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK.




Not
required for smaller reporting companies.





ITEM
4T.   CONTROLS AND PROCEDURES.





Evaluation of Disclosure
Controls and Procedures





Pursuant
to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”),
the Company carried out an evaluation, with the participation of the Company’s
management, including the Company’s Chief Executive Officer (“CEO”) and Chief
Financial Officer (“CFO”),of the effectiveness of the Company’s disclosure
controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act)
as of the end of the period covered by this report. Based upon that evaluation,
the Company’s CEO and CFO concluded that the Company’s disclosure controls and
procedures are effective to ensure that information required to be disclosed by
the Company in the reports that the Company files or submits under the Exchange
Act, is recorded, processed, summarized and reported, within the time periods
specified in the SEC’s rules and forms, and that such information is accumulated
and communicated to the Company’s management, including the Company’s CEO and
CFO, as appropriate, to allow timely decisions regarding required
disclosure.





Changes in Internal
Controls





There
have been no changes in the Company’s internal control over financial reporting
during the latest fiscal quarter that have materially affected, or are
reasonably likely to materially affect, the Company's internal control over
financial reporting.







-4-





PART
II - OTHER INFORMATION






Item
1. Legal Proceedings.




Currently
we are not aware of any litigation pending or threatened by or against the
Company.





Item
1A. Risk Factors.





Not
Applicable because we are a smaller reporting company.




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




None.




Item
3. Defaults Upon Senior Securities.




None




Item
4. Submission of Matters to a Vote of Security Holders.




None.




Item
5. Other Information.




None.




Item
6. Exhibits and Reports of Form 8-K.




(a)         Exhibits




31.1 Certifications pursuant to Section 302 of Sarbanes Oxley Act of
2002




32.1 Certifications pursuant to Section 906 of Sarbanes Oxley Act of
2002




(b)         Reports
of Form 8-K




None.





-5-





SIGNATURES




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




ARTCRAFT
      V, INCDate:
      June 12, 2009
            By:
            By:
      /s/ Li Te
      XiaoLi
      Te XiaoPresident,
      Chief Executive Officer,Chief
      Financial Officer and Director


















-6-












ARTCRAFT
V, INC. AND SUBSIDIARY





CONSOLIDATED
FINANCIAL STATEMENTS





MARCH
31, 2009





(UNAUDITED)























TABLE
OF CONTENTS











Consolidated
      Balance Sheets (Unaudited)
                  F-2Consolidated
      Statements of Operations (Unaudited)
                  F-3Consolidated
      Statements of Cash Flows (Unaudited)
                  F-4Notes
      to Consolidated Financial Statements
                  F-5
      - F-8
















F-1





ARTCRAFT
      V, INC. AND SUBSIDIARIESCONSOLIDATED
      BALANCE SHEETS(UNAUDITED)ASSETSMarch
      31,
                              
                              
                              December
      31,2009
                              
                              
                              2008Current AssetsCash
      and cash equivalents
                              
                              $
                              1,091
                              
                              
                              $
                              91LIABILITIES AND STOCKHOLDERS'
      DEFICITCurrent
      LiabilitiesAccounts
      payable and accrued expenses
                              
                              $
                              45,514
                              
                              
                              $
                              41,001Loan
      payable to related party
                              
                              
                              377,128
                              
                              
                              
                              370,128Total
      Current Liabilities
                              
                              
                              422,642
                              
                              
                              
                              411,129Stockholders'
      DeficitCommon
      stock, $.001 par value, 100,000,000shares
      authorized, 10,250,000 issued and outstanding
                              
                              
                              10,250
                              
                              
                              
                              10,250Additional
      paid in capital
                              
                              
                              115,159
                              
                              
                              
                              115,159Subscription
      receivable
                              
                              
                              -
                              
                              
                              
                              (50,000
                              )Accumulated
      deficit
                              
                              
                              (546,961
                              )
                              
                              
                              (486,447
                              )Total
      Stockholders' Deficit
                              
                              
                              (421,551
                              )
                              
                              
                              (411,038
                              )$
                              1,091
                              
                              
                              $
                              91





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




F-2





ARTCRAFT
      V, INC. AND SUBSIDIARIESCONSOLIDATED
      STATEMENTS OF OPERATIONSFOR
      THE THREE MONTH PERIODS ENDED MARCH 31, 2009 AND 2008(UNAUDITED)2009
                              
                              
                              2008Revenue,
      net
                              
                              $
                              -
                              
                              
                              $
                              -Operating
      Expenses:General and
      administrative expenses
                              
                              
                              10,514
                              
                              
                              
                              7,986Loss
      from continued operations
                              
                              
                              (10,514
                              )
                              
                              
                              (7,986
                              )Discontinued
      OperationLoss
      from operations of entity disposed
                              
                              
                              -
                              
                              
                              
                              (903
                              )Net
      loss
                              
                              
                              (10,514
                              )
                              
                              
                              (8,889
                              )Other
      comprehensive incomeForeign
      currency translation
                              
                              
                              -
                              
                              
                              
                              530Comprehensive
      loss
                              
                              $
                              (10,514
                              )
                              
                              $
                              (8,359
                              )Loss
      per share:Basic &
      diluted
                              
                              $
                              (0.00
                              )
                              
                              $
                              (0.00
                              )Weighted
      average number of shares outstanding:Basic &
      diluted
                              
                              
                              10,250,000
                              
                              
                              
                              10,250,000





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




F-3





ARTCRAFT
      V, INC. AND SUBSIDIARIESCONSOLIDATED
      STATEMENTS OF CASH FLOWSFOR
      THE THREE MONTH PERIODS ENDED MARCH 31, 2009 AND 2008(UNAUDITED)2009
                                    
                                    
                                    2008CASH
      FLOWS FROM OPERATING ACTIVITIESNet
      Loss
                                    
                                    $
                                    (10,514
                                    )
                                    
                                    $
                                    (8,889
                                    )Decrease in current
      assets:Other
      receivables
                                    
                                    
                                    -
                                    
                                    
                                    
                                    26,250Increase/ (decrease) in
      current liabilities:Accounts payable
      and accrued expenses
                                    
                                    
                                    4,514
                                    
                                    
                                    
                                    (10,719
                                    )Net
      cash provided by (used in) operating activities of continued
      operations
                                    
                                    
                                    (6,000
                                    )
                                    
                                    
                                    6,642Net
      cash provided by operating activities of discontinued
      operations
                                    
                                    
                                    -
                                    
                                    
                                    
                                    10,849Net
      cash provided by (used in) operating activities
                                    
                                    
                                    (6,000
                                    )
                                    
                                    
                                    17,491CASH
      FLOWS FROM FINANCING ACTIVITIESLoan
      from related party
                                    
                                    
                                    7,000
                                    
                                    
                                    
                                    88,912Effect
      of exchange rate changes on cash and cash equivalents
                                    
                                    
                                    -
                                    
                                    
                                    
                                    355Net
      increase in cash and cash equivalents
                                    
                                    
                                    1,000
                                    
                                    
                                    
                                    106,759Cash
      and cash equivalents, beginning balance
                                    
                                    
                                    91
                                    
                                    
                                    
                                    18,070Cash
      and cash equivalents, ending balance
                                    
                                    $
                                    1,091
                                    
                                    
                                    $
                                    124,829SUPPLEMENTAL
      DISCLOSURES:Cash
      paid during the year for:Income
      tax payments
                                    
                                    $
                                    -
                                    
                                    
                                    $
                                    -Interest
      payments
                                    
                                    $
                                    -
                                    
                                    
                                    $
                                    -





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





F-4




ARTCRAFT
V, INC. AND SUBSIDIARIES
  NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS





Note
1 – ORGANIZATION





Artcraft
V, Inc. was incorporated under the laws of the State of Delaware on June 7,
2004.  On November 7, 2005, the Company entered into an Exchange
Agreement with Top Interest International Limited (“Top
Interest”).  Top Interest owns 70% equity interest of Shenzhen Xin Kai
Yuan Info Consult Co., Ltd. (“188info.com”) which operates 188info.com, a
professional information searching platform that is engaged in the business of
providing information search engine, online web application and image designing,
digital network service, online market research, online promotion and
advertising services, and query searches for both individuals and
businesses.  Top Interest was incorporated under the laws of the
British Virgin Islands.  188info.com was legally established under the
laws of the People’s Republic of China.





Pursuant
to the Stock Purchase and Share Exchange Agreement, the Company purchased all of
the issued and outstanding shares of Top Interest from the shareholder for
issuance of a total of 10,000,000 shares of the Company’s common stock, or
approximately 99% of the total issued and outstanding shares.  This
transaction closed on November 7, 2005 and has been accounted for as a reverse
acquisition.





On
September 22, 2008 the Company’s board of directors agreed to sell the Company’s
70% interest in 188info.com.  The Company entered into an agreement
with Shenzhen Dingyi Investment Consulting Company Co., Ltd on September
22, 2008 to sell our 70% interest in 188info.com for $0.15 (RMB1) and the
assumption of all assets and liabilities of 188info.com. The transaction was
completed and approved by the PRC on October 17, 2008.





When used
in these notes, the terms “Company”, “we”, “our” or “us” mean Artcraft V, Inc.
and its subsidiary.





Note
2 – SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES





Basis of
Presentation





The
accompanying consolidated financial statements have been prepared in conformity
with accounting principles generally accepted in the United States of
America.  The Company’s functional currency is the Chinese Renminbi
(CNY); however the accompanying consolidated financial statements have been
translated and presented in United States Dollars.





Principles of
Consolidation





The
consolidated financial statements include the accounts of Artcraft V, Inc. and
its wholly owned subsidiary, collectively referred to within as the Company. All
material intercompany accounts, transactions and profits have been eliminated in
consolidation.





Exchange Gain
(Loss)





During
the periods ended March 31, 2009 and 2008, the transactions of Shenzhen were
denominated in foreign currency and were recorded in CNY at the rates of
exchange in effect when the transactions occur. Exchange gains and losses are
recognized for the different foreign exchange rates applied when the foreign
currency assets and liabilities are settled.




Translation
Adjustment





As of
March 31, 2009 and 2008, the accounts of Shenzhen were maintained, and its
financial statements were expressed, in CNY. Such financial statements were
translated into U.S. Dollars (USD) in accordance with Statement of Financial
Accounts Standards (“SFAS”) No. 52, “Foreign Currency Translation,” with the CNY
as the functional currency. According to the Statement, all assets and
liabilities were translated at the current exchange rate, stockholder’s equity
are translated at the historical rates and income statement items are translated
at the average exchange rate for the period. The resulting translation
adjustments are reported under other comprehensive income in accordance with
SFAS No. 130, “Reporting Comprehensive Income” as a component of shareholders’
equity.






F-5




ARTCRAFT
V, INC. AND SUBSIDIARIES
  NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS




Use of
Estimates





The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and 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.





Cash and Cash
Equivalents





Cash and
cash equivalents include cash in hand and cash in time deposits, certificates of
deposit and all highly liquid debt instruments with original maturities of three
months or less.





Revenue
Recognition





The
Company’s revenue recognition policies are in compliance with Staff accounting
bulletin (SAB) 104. Revenue from marketing services through World Wide Web is
recognized when services are rendered. Payments received before all of the
relevant criteria for revenue recognition are satisfied are recorded as deferred
revenue. Revenue for the three month period ended March 31, 2009 and 2008 were
$0 and $7,389 respectively.





Income
Taxes





The
Company utilizes SFAS No. 109, “Accounting for Income Taxes,” which requires the
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 income taxes are recognized for the tax
consequences in future years of differences between the tax bases of assets and
liabilities and their financial reporting amounts at each period end based on
enacted tax laws and statutory tax rates applicable to the periods in which the
differences are expected to affect taxable income. Valuation allowances are
established, when necessary, to reduce deferred tax assets to the amount
expected to be realized.





Basic and Diluted Earnings
(Loss) Per Share





Earnings
(loss)  per share is calculated in accordance with the Statement of
financial accounting standards No. 128 (SFAS No. 128), “Earnings per share”.
SFAS No. 128 superseded Accounting Principles Board Opinion No.15 (APB 15). Net
income (loss) per share for all periods presented has been restated to reflect
the adoption of SFAS No. 128. Basic net loss per share is based upon the
weighted average number of common shares outstanding. Diluted net loss per share
is based on the assumption that all dilutive convertible shares and stock
options were converted or exercised. Dilution is computed by applying the
treasury stock method. Under this method, options and warrants are assumed to be
exercised at the beginning of the period (or at the time of issuance, if later),
and as if funds obtained thereby were used to purchase common stock at the
average market price during the period. Basic and diluted loss per share were
$(0.00) and $(0.00) for the three month periods ended March 31, 2009 and 2008
respectively.






F-6


ARTCRAFT
V, INC. AND SUBSIDIARIES
  NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS






Recent accounting
pronouncements





In
December 2007, the FASB issued SFAS No. 141(R), “Business Combinations”. This
Statement replaces SFAS No. 141, Business Combinations. This Statement retains
the fundamental requirements in Statement 141 that the acquisition method of
accounting (which Statement 141 called the purchase method) be used for all
business combinations and for an acquirer to be identified for each business
combination. This Statement also establishes principles and requirements for how
the acquirer: a) recognizes and measures in its financial statements the
identifiable assets acquired, the liabilities assumed, and any non-controlling
interest in the acquiree; b) recognizes and measures the goodwill acquired in
the business combination or a gain from a bargain purchase and c) determines
what information to disclose to enable users of the financial statements to
evaluate the nature and financial effects of the business combination. SFAS No.
141(R) will apply prospectively to business combinations for which the
acquisition date is on or after Company’s fiscal year beginning October 1, 2009.
While the Company has not yet evaluated this statement for the impact, if any,
that SFAS No. 141(R) will have on its consolidated financial statements, the
Company will be required to expense costs related to any acquisitions after
September 30, 2009.





On
December 30, 2008 FASB issued FIN 48-3, “Effective Date of FASB Interpretation
No. 48 for Certain Nonpublic Enterprises”. This FSP defers the effective date of
FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, for
certain non-public enterprises as defined in paragraph 289, as amended, of FASB
Statement No. 109, Accounting for Income Taxes, including non-public
not-for-profit organizations. However, non-public consolidated entities of
public enterprises that apply U. S. GAAP are not eligible for the deferral.
Nonpublic enterprises that have applied the recognition, measurement, and
disclosure provisions of Interpretation 48 in a full set of annual financial
statements issued prior to the issuance of this FSP also are not eligible for
the deferral. This FSP shall be effective upon issuance. The Company does not
believe this pronouncement will impact its financial statements.





Reclassification





Certain
items in the financial statements have been reclassified to confirm to the
current period presentation.




Note
3 – ACCOUNTS PAYABLE
AND ACCRUED EXPENSES





As of
March 31, 2009, account payable and accrued expenses were $45,514, including
accrued legal, audit, and accounting expenses.





As of
December 31, 2008, account payable and accrued expenses were $41,001, including
accrued legal, audit, and accounting expenses.





Note
4 – LOAN PAYBLE TO
RELATED PARTIES





As of
March 31, 2009, total loan payable to related parties were $377,128, including a
non interest-bearing, unsecured and due on demand note payable to an officer
of a subsidiary for $168,000 and a non interest-bearing, unsecured and due
on demand note payable to a shareholder of the Company in the amount of
$209,128.





As of
December 31, 2008, total loan payable to related parties were $370,128,,
including a non interest-bearing, unsecured and due on demand note payable to an
officer of a subsidiary amounting $168,000 and a non interest-bearing,
unsecured and due on demand note payable to a shareholder of the Company in the
amount of $202,128.





Note
5 – STOCKHOLDER’S
EQUITY





Subscription
receivable from the share holder of Top Interest International Limited amounted
to $50,000. The Company during the period ended March 31, 2009 recorded deemed
dividend of $50,000 to the major shareholder by utilizing the subscription
receivable.







F-7




ARTCRAFT
V, INC. AND SUBSIDIARIES
  NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS





No new
shares have been issued during the three month period ended March 31,
2009.





The
Company utilized office space arranged by an officer of the Company in
188info.com, free of charge. The fair market rent value amounting $0 and $6,287
have been taken as a contribution to the capital from the officer and credited
to the additional paid in capital as of March 31, 2009 and December 31, 2008
respectively.





Note
6 – GOING
CONCERN





The
accompanying consolidated financial statements have been prepared in conformity
with generally accepted accounting principles which contemplate continuation of
the company as a going concern.  However, the Company has an
accumulated deficit of $496,961 and $486,447 as of March 31, 2009 and December
31, 2008 including losses of $10,514 and $8,359 for the periods ended March 31,
2009 and 2008. The Company’s current liabilities exceed its current assets by
$421,551 and $411,038 as of March 31, 2009 and December 31, 2008. The Company
disposed its operating entity in China during the year ended December 31, 2008
and currently does not have any operations. In view of the matters described
above, recoverability of a major portion of the recorded asset amounts shown in
the accompanying consolidated balance sheet is dependent upon continued
operations of the company, which in turn is dependent upon the Company’s ability
to raise additional capital, obtain financing and succeed in its future
operations, The financial statements do not include any adjustments relating to
the recoverability and classification of recorded asset amounts or amounts and
classification of liabilities that might be necessary should the Company be
unable to continue as a going concern.





Management
has taken the following steps to revise its operating and financial
requirements, which it believes are sufficient to provide the Company with the
ability to continue as a going concern.  Management devoted
considerable effort from inception through March 31, 2009, towards obtaining
additional equity and management of accrued expenses and accounts
payable.





Management
believes that actions presently being taken to obtain additional funding to
implement its strategic plans provide the opportunity for the Company to
continue as a going concern.








F-8