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| Delaware                        |   | 26-1364883             |
|---------------------------------|--------|------------------------|
| (State or other jurisdiction of |   | (I.R.S. employer       |
| incorporation or formation)     |   | identification number) |

| Issuer’s telephone number: | (310) 300-3431  |
|----------------------------------|---------------------------|

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PART I – FINANCIAL INFORMATION 

| Item 1. | Financial Statements |
|---------|----------------------|

| FINANCIAL REPORTS |
|-------------------|
| AT                |
| JUNE 30, 2009     |

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| Balance Sheets at June 30, 2009 (Unaudited) and December 31, 2008                                                                                                               | F-1       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                                                                                            |      |
| Statement of Changes in Stockholders’ Deficit for the Period from Date of Inception (April 16, 2007) through June 30, 2009 (Unaudited)                               | F-2       |
|                                                                                                                                                                            |      |
| Statements of Operations for the Three and Six Months Ended June 30, 2009 and 2008 and for the Period from Date of Inception (April 16, 2007) through June 30, 2009 (Unaudited) | F-3       |
|                                                                                                                                                                            |      |
| Statements of Cash Flows for the Six Months Ended June 30, 2009 and 2008 and for the Period from Date of Inception (April 16, 2007) through June 30, 2009 (Unaudited)           | F-4       |
|                                                                                                                                                                            |      |
| Notes to Financial Statements                                                                                                                                                   | F-5 - F-7 |

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AFH HOLDING II, INC. 

| BALANCE SHEETS                                                                                                                                                                                                    |   |        |          |    |         |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|---------------|---------|--------------|--------|
|                                                                                                                                                                                                              |   |        |          |    |         |   |
|                                                                                                                                                                                                              |   | (Unaudited) |          |    |         |   |
|                                                                                                                                                                                                              |   | June 30,    |          |    | December 31, |   |
|                                                                                                                                                                                                              |   | 2009        |          |    | 2008         |   |
|                                                                                                                                                                                                              |   |        |          |    |         |   |
| ASSETS                                                                                                                                                                                                            |   | $           | —       |    |         | $      | — |   |
|                                                                                                                                                                                                              |   |        |          |    |         |   |   |   |
|                                                                                                                                                                                                              |   |        |          |    |         |   |   |   |
| LIABILITIES AND STOCKHOLDER'S DEFICIT                                                                                                                                                                             |   |        |          |    |         |   |   |   |
|                                                                                                                                                                                                              |   |        |          |    |         |   |   |   |
| Liabilities                                                                                                                                                                                                       |   |        |          |    |         |   |   |   |
| Accrued Expenses                                                                                                                                                                                                  |   | $           | 2,750         |    |         | $      | 1,000 |   |
| Due to Parent                                                                                                                                                                                                     |   |        | 1,750         |    |         |   | 1,750 |   |
|                                                                                                                                                                                                              |   |        |          |    |         |   |   |   |
| Total Liabilities                                                                                                                                                                                                 |   |        | 4,500         |    |         |   | 2,750 |   |
|                                                                                                                                                                                                              |   |        |          |    |         |   |   |   |
| Stockholder's Deficit                                                                                                                                                                                             |   |        |          |    |         |   |   |   |
| Preferred Stock:  $.001 Par; 20,000,000 Shares Authorized,                                                                                                                                              |   |        |          |    |         |   |   |   |
|                             -0- Issued and Outstanding                |   |        | —       |    |         |   | — |   |
| Common Stock:  $.001 Par; 100,000,000 Shares Authorized;                                                                                                                                                |   |        |          |    |         |   |   |   |
|                             5,000,000 Issued and 1,500,00 Outstanding |   |        | 5,000         |    |         |   | 5,000 |   |
| Additional Paid-In-Capital                                                                                                                                                                                        |   |        | 11,021        |    |         |   | 11,021 |   |
| Deficit Accumulated During Development Stage                                                                                                                                                                      |   |        |  (11,771 | )  |         |   |  (10,021 | )  |
| Treasury Stock - 3,500,000 Shares at Cost, $.0025                                                                                                                                                                 |   |        | (8,750        | )       |         |   | (8,750 | ) |
|                                                                                                                                                                                                              |   |        |          |    |         |   |   |   |
| Total Stockholder's Deficit                                                                                                                                                                                       |   |        | (4,500        | )       |         |   | (2,750 | ) |
|                                                                                                                                                                                                              |   |        |          |    |         |   |   |   |
| Total Liabilities and Stockholder's Deficit                                                                                                                                                                       |   | $           | —       |    |         | $      | — |   |

----

   

| STATEMENTS OF CHANGES IN STOCKHOLDER'S DEFICIT FOR THE PERIOD FROM   |   |         |      |   |       |   |    |    |
|----------------------------------------------------------------------|--------|--------------|-----------|--------|------------|--------|---------|---------|
| DATE OF INCEPTION (APRIL 16, 2007) THROUGH JUNE 30, 2009 - UNAUDITED |   |         |      |   |       |   |    |    |
|                                                                 |   |         |      |   |       |   |    |    |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   |         |      |   |       |   |    |    |   |   | Deficit |   |   |   |   |   |   |   |
|                                                                 |   |         |      |   |       |   |    |    |   |   | Accumulated |   |   |   |   |   |   |   |
|                                                                 |   | Common Stock |      |   | Additional |   |    | During  |   |   |   |   |   | Total |   |
|                                                                 |   | Number       |      |   |       |   |    | Paid-In |   |   | Development |   |   | Treasury |   |   | Stockholder's |   |
|                                                                 |   | of Shares    |      |   | Value      |   |    | Capital |   |   | Stage |   |   | Stock |   |   | Deficit |   |
|                                                                 |   |         |      |   |       |   |    |    |   |   |   |   |   |   |   |   |   |   |
| Balance - April 16, 2007                                             |   |         | —   |   |       | $      | — |    |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
|                                                                 |   |         |      |   |       |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common Stock Issued in Lieu of Services                              |   |         | 5,000,000 |   |       |   | 5,000   |    |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 5,000 |   |
|                                                                 |   |         |      |   |       |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contributed Capital for Services                                     |   |         | —   |   |       |   | — |    |   |   | 2,271 |   |   |   | — |   |   |   | — |   |   |   | 2,271 |   |
|                                                                 |   |         |      |   |       |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase of Treasury Stock                                           |   |         | —   |   |       |   | — |    |   |   | — |   |   |   | — |   |   |   | (12,500 | ) |   |   | (12,500 | ) |
|                                                                 |   |         |      |   |       |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale of Treasury Stock                                               |   |         | —   |   |       |   | — |    |   |   | 8,750 |   |   |   | — |   |   |   | 3,750 |   |   |   | 12,500 |   |
|                                                                 |   |         |      |   |       |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                             |   |         | —   |   |       |   | — |    |   |   | — |   |   |   | (10,021 | ) |   |   | — |   |   |   | (10,021 | ) |
|                                                                 |   |         |      |   |       |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance - December 31, 2008                                          |   |         | 5,000,000 |   |       |   | 5,000   |    |   |   | 11,021 |   |   |   | (10,021 | ) |   |   | (8,750 | ) |   |   | (2,750 | ) |
|                                                                 |   |         |      |   |       |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                             |   |         | —   |   |       |   | — |    |   |   | — |   |   |   | (1,750 | ) |   |   | — |   |   |   | (1,750 | ) |
|                                                                 |   |         |      |   |       |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance - June 30, 2009                                              |   |         | 5,000,000 |   |       | $      | 5,000   |    |   | $ | 11,021 |   |   | $ | (11,771 | ) |   | $ | (8,750 | )  |   | $ | (4,500 | ) |

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AFH HOLDING II, INC. 

   

| STATEMENTS OF OPERATIONS - UNAUDITED       |   |                     |      |   |                       |   |      |             |   |   |      |   |   |              |      |
|--------------------------------------------|--------|--------------------------|-----------|--------|----------------------------|--------|-----------|------------------|--------|--------|-----------|--------|--------|-------------------|-----------|
|                                       |   |                     |      |   |                       |   |      |             |   |   |      |   |   |              |      |
|                                       |   |                     |      |   |                       |   |      |             |   |   |      |   |   | Period From       |      |
|                                       |   |                     |      |   |                       |   |      |             |   |   |      |   |   | Date of Inception |      |
|                                       |   | For the Six Months Ended |      |   | For the Three Months Ended |   |      | (April 16, 2007) |   |
|                                       |   | June 30,                 |      |   | June 30,                   |   |      | Through          |   |
|                                       |   | 2009                     |      |   | 2008                       |   |      | 2009             |   |   | 2008      |   |   | June 30, 2009     |      |
|                                       |   |                     |      |   |                       |   |      |             |   |   |      |   |   |              |      |
|                                       |   |                     |      |   |                       |   |      |             |   |   |      |   |   |              |      |
| Revenues                                   |   | $                        | —   |   |                       | $      | —   |             |   | $      | —   |   |   | $                 | —   |   |   | $ | — |   |
|                                       |   |                     |      |   |                       |   |      |             |   |   |      |   |   |              |      |   |   |   |   |   |
| Expenses                                   |   |                     |      |   |                       |   |      |             |   |   |      |   |   |              |      |   |   |   |   |   |
| General and Administrative                 |   |                     | 1,750     |   |                       |   | —   |             |   |   | 500       |   |   |              | —   |   |   |   | 11,771 |   |
|                                       |   |                     |      |   |                       |   |      |             |   |   |      |   |   |              |      |   |   |   |   |   |
| Total Expenses                             |   | $                        | 1,750     |   |                       | $      | —   |             |   | $      | 500       |   |   | $                 | —   |   |   | $ | 11,771 |   |
|                                       |   |                     |      |   |                       |   |      |             |   |   |      |   |   |              |      |   |   |   |   |   |
| Net Loss                                   |   | $                        | (1,750    | )      |                       | $      | —   |             |   | $      | (500      | )      |   | $                 | —   |   |   | $ | (11,771 | ) |
|                                       |   |                     |      |   |                       |   |      |             |   |   |      |   |   |              |      |   |   |   |   |   |
| Loss per Share - Basic and Diluted         |   | $                        | (0.00     | )      |                       | $      | (0.00     | )                |   | $      | (0.00     | )      |   | $                 | (0.00     | ) |   | $ | (0.00 | ) |
|                                       |   |                     |      |   |                       |   |      |             |   |   |      |   |   |              |      |   |   |   |   |   |
| Weighted Average Common Shares Outstanding |   |                     | 1,500,000 |   |                       |   | 1,500,000 |             |   |   | 1,500,000 |   |   |              | 1,500,000 |   |   |   | 2,413,043 |   |

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AFH HOLDING II, INC. 

| STATEMENTS OF CASH FLOWS - UNAUDITED            |   |                     |    |   |             |   |    |              |   |
|-------------------------------------------------|--------|--------------------------|---------|--------|------------------|--------|---------|-------------------|--------|
|                                            |   |                     |    |   |             |   |    |              |   |
|                                            |   |                     |    |   |             |   |    | Period From       |   |
|                                            |   |                     |    |   |             |   |    | Date of Inception |   |
|                                            |   | For the Six Months Ended |    |   | (April 16, 2007) |   |
|                                            |   | June 30,                 |    |   | Through          |   |
|                                            |   | 2009                     |    |   | 2008             |   |    | June 30, 2009     |   |
|                                            |   |                     |    |   |             |   |    |              |   |
| Cash Flows from Operating Activities            |   |                     |    |   |             |   |    |              |   |
|                                            |   |                     |    |   |             |   |    |              |   |
| Net Loss                                        |   | $                        | (1,750  | )      |             | $      | — |              |   | $ | (11,771 | ) |
|                                            |   |                     |    |   |             |   |    |              |   |   |   |   |
| Non Cash Adjustments:                           |   |                     |    |   |             |   |    |              |   |   |   |   |
| Common Stock Issued in Lieu of Services         |   |                     | — |   |             |   | — |              |   |   | 5,000 |   |
| Contributed Capital for Services                |   |                     | — |   |             |   | — |              |   |   | 2,271 |   |
|                                            |   |                     |    |   |             |   |    |              |   |   |   |   |
| Changes in Assets and Liabilities:              |   |                     |    |   |             |   |    |              |   |   |   |   |
| Accrued Expenses                                |   |                     | 1,750   |   |             |   | — |              |   |   | 2,750 |   |
|                                            |   |                     |    |   |             |   |    |              |   |   |   |   |
| Net Cash Flows from Operating Activities        |   |                     | — |   |             |   | — |              |   |   | (1,750 | ) |
|                                            |   |                     |    |   |             |   |    |              |   |   |   |   |
| Net Cash Flows from Investing Activities        |   |                     | — |   |             |   | — |              |   |   | — |   |
|                                            |   |                     |    |   |             |   |    |              |   |   |   |   |
| Cash Flows from Financing Activities            |   |                     |    |   |             |   |    |              |   |   |   |   |
| Cash Advance by Parent                          |   |                     | — |   |             |   | — |              |   |   | 1,750 |   |
|                                            |   |                     |    |   |             |   |    |              |   |   |   |   |
| Net Change in Cash and Cash Equivalents         |   |                     | — |   |             |   | — |              |   |   | — |   |
|                                            |   |                     |    |   |             |   |    |              |   |   |   |   |
| Cash and Cash Equivalents - Beginning of Period |   |                     | — |   |             |   | — |              |   |   | — |   |
|                                            |   |                     |    |   |             |   |    |              |   |   |   |   |
| Cash and Cash Equivalents - End of Period       |   | $                        | — |   |             | $      | — |              |   | $ | — |   |
|                                            |   |                     |    |   |             |   |    |              |   |   |   |   |
| Cash Paid During the Period for:                |   |                     |    |   |             |   |    |              |   |   |   |   |
| Interest                                        |   | $                        | — |   |             | $      | — |              |   | $ | — |   |
| Income Taxes                                    |   | $                        | — |   |             | $      | — |              |   | $ | — |   |

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AFH HOLDING II, INC.(A DEVELOPMENT STAGE COMPANY)(A DELAWARE CORPORATION)Beverly Hills, CA  NOTES TO FINANCIAL STATEMENTS  Note AThe CompanyAFH Holding II, Inc., a development stage company (the “Company”), was incorporated under the laws of the State of Delaware on April 16, 2007.  The Company is 100% owned by AFH Holding & Advisory, LLC.  The financial statements presented represent only those transactions of AFH HoldingII, Inc.  The Company is looking to acquire an existing company or acquire the technology to begin operations. As a blank check company, the Company’s business is to pursue a business combination through acquisition, or merger with, an existing company. As of the date of the financial statements, the Company is not conducting negotiations with any target business. No assurances can be given that the Company will be successfulin locating or negotiating with any target company. Since inception, the Company has been engaged in organizational efforts. The condensed financial statements of AFH Holding II, Inc., (the “Company”) included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).  Certain information and footnote disclosures normallyincluded in financial statements prepared in conjunction with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed financial statements should be read in conjunction with the annual audited financial statements and the notes thereto included in the Company’s registration statement on Form 10-KSB, and other reports filedwith the SEC. The accompanying unaudited interim financial statements reflect all adjustments of a normal and recurring nature which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of the Company for the interim periods presented.  The results ofoperations for these periods are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year taken as a whole.  Certain information that is not required for interim financial reporting purposes has been omitted.  Note BSummary of Significant Accounting PoliciesMethod of AccountingThe Company maintains its books and prepares its financial statements on the accrual basis of accounting.   - continued -  F-5 
| Note B | Summary of Significant Accounting Policies – continued |
|--------|--------------------------------------------------------------|

|   | - continued - |
|--------|---------------|

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| Note B | Summary of Significant Accounting Policies – continued |
|--------|--------------------------------------------------------------|

| Note C | Equity Securities |
|--------|-------------------|

| Note D | Going Concern |
|--------|---------------|

| Note E | Due to Parent |
|--------|---------------|

| Note F | Subsequent Events |
|--------|-------------------|

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| Item 2. | Management’s Discussion and Analysis or Plan of Operation. |
|---------|------------------------------------------------------------------|

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| Item 3. | Quantitative and qualitative Disclosures About Market Risk |
|---------|------------------------------------------------------------|

   

| Item 4T. | Controls and Procedures |
|----------|-------------------------|

|   | ● | We were unable to maintain any segregation of duties within our business operations due to our reliance on a single individual fulfilling the role of both our Principal Executive Officer and Principal Financial Officer. While this control deficiency did not result in any audit adjustments to ourinterim or annual financial statements, it could have resulted in a material misstatement that might have been prevented or detected by a segregation of duties. Accordingly we have determined that this control deficiency constitutes a material weakness. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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PART II – OTHER INFORMATION 

   

| Item 1. | Legal Proceedings. |
|---------|--------------------|

   

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

   

| Item 3. | Defaults Upon Senior Securities. |
|---------|----------------------------------|

   

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

   

| Item 5. | Other Information. |
|---------|--------------------|

   

| Item 6. | Exhibits. |
|---------|-----------|

| 3.1    |   | Certificate of Incorporation, as filed with the Delaware Secretary of State on April 16, 2007 (1)                                                                                       |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                    |
| 3.2    |   | By-Laws (1)                                                                                                                                                                             |
|   |   |                                                                                                                                                                                    |
| 10.1   |   | Stock Redemption Agreement dated November 13, 2007 by and between AFH Holding II, Inc., a Delaware Corporation, and Lauren Scott (2)                                                    |
|   |   |                                                                                                                                                                                    |
| 10.2   |   | Stock Purchase Agreement dated November 13, 2007 by and between AFH Holding II, Inc., a Delaware corporation, and AFH Holding and Advisory, LLC, a Nevada limited liability company (2) |
|   |   |                                                                                                                                                                                    |
| 31.1   |   | Certification by Chief Executive Officer pursuant to Sarbanes-Oxley Section 302*                                                                                                        |
|   |   |                                                                                                                                                                                    |
| 31.2   |   | Certification by Chief Financial Officer pursuant to Sarbanes-Oxley Section 302*                                                                                                        |
|   |   |                                                                                                                                                                                    |
| 32.1   |   | Certification pursuant to Section 906 of Sarbanes Oxley Act of 2002*                                                                                                                    |

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SIGNATURES 

|   |   |   | AFH HOLDING II, INC.           |
|--------|--------|--------|--------------------------------|
|   |   |   | (Registrant)                   |
|   |   |   |                           |
|   |   |   | /s/ Amir F. Heshmatpour        |
|   |   |   | Amir F. Heshmatpour, President |
|   |   |   |                           |

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