UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-Q  X.QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended: March 31, 2010  .TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE EXCHANGE ACT OF 1934  For the transition period from ___________ to _____________  Commission file number 333-143602  AI DOCUMENT SERVICES, INC.(Exact Name of Registrant as Specified in its Charter)  DELAWARE20-8675798(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer
Identification No.)25 Robert Pitt Drive
Monsey, New York10952(Address of Principal Executive Offices)(Zip Code)  845-622-1400(Issuer's telephone number, including area code)  Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes . No X.  Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes . No X.  Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company 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 filer. (Do not check if a smaller reporting company)Smaller reporting companyX.  Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934) (check one): Yes . No X.  The number of shares of the Registrants Common Stock outstanding as of May 17, 2011 was 10,000,000.  1   AI DOCUMENT SERVICES, INC.  Table of Contents  PART I-- FINANCIAL INFORMATIONPageItem 1.Financial Statements:Condensed Balance Sheets as of March 31, 2010 (Unaudited) and December 31, 20093Condensed Statements of Operations for the three months ended March 31, 2010 and 2009 (Unaudited)4Condensed Statements of Cash Flows for the three months ended March 31, 2010 and 2009 (Unaudited)5Notes to Condensed Financial Statements (Unaudited)6Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations9Item 3Quantitative and Qualitative Disclosures About Market Risk12Item 4.Control and Procedures13PART II-- OTHER INFORMATIONItem 1Legal Proceedings13Item 1ARisk Factors13Item 2.Unregistered Sales of Equity Securities and Use of Proceeds20Item 3.Defaults Upon Senior Securities20Item 4.(Removed and Reserved)20Item 5.Other Information20Item 6.Exhibits20  2   ITEM 1. Financial Information  AI DOCUMENT SERVICES, INC.  Condensed Balance Sheets  March 31,December 31,20102009(unaudited)ASSETSCURRENT ASSETSAccounts receivable, from Actuarial Ideas, Inc. a related party,net of allowance for doubtful accounts of $400 for 2010 and 2009$3,150$37,350Deferred tax asset4,6274,627Due from Actuarial Ideas, Inc., a related party40,13417,965TOTAL ASSETS$47,911$59,942LIABILITIES AND STOCKHOLDERS  DEFICITCURRENT LIABILITIESAccounts payable and accrued expenses$58,177$58,176Convertible note payable42,00042,000Income taxes payable4,6274,627Total current liabilities104,804104,803COMMITMENTS AND CONTINGENCIESSTOCKHOLDERS DEFICITPreferred stock - $0.001 par value; 1,000,000 shares authorized;no shares issued or outstandingCommon stock - $0.001 par value; 99,000,000 sharesauthorized; 10,000,000 shares issued and outstanding10,00010,000Accumulated deficit(67,103)(54,861)Total stockholders  deficit(56,893)(44,861)TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT$47,911$59,942  The accompanying notes are an integral part of these financial statements.  3   AI DOCUMENT SERVICES, INC.  Condensed Statements of Operations For the Three Months Ended March 31, 2010 and 2009 (Unaudited)  20102009Sales$4,550$15,840Cost of sales9,0009,000Gross (loss) profit(4,450)6,840General and administrative expenses7,5826,871Loss from operations(12,032)(31)Provision for income tax--Net loss$(12,032)$(31)Loss per common share
Basic and diluted$(0.00)$(0.00)Weighted average common shares outstanding
Basic and diluted10,000,00010,000,000  The accompanying notes are an integral part of these financial statements.   4   AI DOCUMENT SERVICES, INC.  Condensed Statements of Cash Flows For the Three Months Ended March 31, 2010 and 2009 (Unaudited)  20102009Cash flows from operating activities:Net loss$(12,032)$(31)Adjustments to reconcile net loss to net cash provided by operating activities:Changes in operating assets and liabilites:Decrease in accounts receivable from ActuarialIdeas, Inc. a related party34,20017,800Increase in due from Actuarial Ideas, Inc.(22,169)(7,426)Increase (decrease) in accounts payable and accrued expenses1(10,343)Net cash provided by operating activities--Cash - beginning of period--Cash - end of period$-$-Supplemental disclosures of cash flow informationCash paid for:Interest$-$-Income tax$-$-  The accompanying notes are an integral part of these financial statements.  5   AI DOCUMENT SERVICES, INC.  Notes to Condensed Financial Statements(Unaudited)  NOTE 1  NATURE OF OPERATIONS, BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS  Nature of Operations  AI Document Services, Inc. (the Company) was formed as a line of business by Actuarial Ideas, Inc. in 1982 and became a separate legal entity, incorporated in the State of Delaware, on March 19, 2007. The Company writes all of the pension plans for the clients of Actuarial Ideas, Inc., an actuarial and consulting firm controlled by the Companys president. At the time that it became a separate legal entity, the Company entered into an agreement with Actuarial Ideas, Inc. under which it continued to write and edit all pension and retirement plans for Actuarial Ideas, Inc.s clients.  On July 1, 2007, the allocation of expenses from Actuarial Ideas, Inc. ceased, and the Company began paying a management fee to Actuarial Ideas, Inc. equivalent to $1,500 per month plus 5% of revenues collected for us from customers by Actuarial Ideas, Inc. The Company also pays its president an annual salary of $30,000 for which he devotes approximately 15% of his time to the Company. Richard Cohen, the Companys treasurer, devotes approximately 10% of his time to the Company and receives an annual salary of $6,000 for the Company.  Basis of Presentation  The condensed financial statements have been prepared in accordance with both accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. Certain information and note disclosures normally included in audited financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.  In the opinion of management, all adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the period presented have been included in the interim period. The operating results for the three month period ended March 31, 2010 are not necessarily indicative of the results to be expected for the entire year ending December 31, 2010 or for any future period.  These unaudited condensed financial statements and notes should be read in conjunction with the financial statements and related notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2009.  Recently Issued Accounting Pronouncements  In April 2010, the FASB issued ASU No. 2010-17, Revenue Recognition  Milestone Method (Topic 605): Milestone Method of Revenue Recognition (A consensus of the FASB Emerging Issues Task Force). ASU No. 2010-17 provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research or development transactions. The amendments provide guidance on the criteria that should be met for determining whether the milestone method of revenue recognition is appropriate. An entity can recognize consideration that is contingent upon achievement of a milestone in its entirety as revenue in the period in which the milestone was achieved only if the milestone meets all criteria to be considered substantive. The provisions of ASU No. 2010-17 are effective on a prospective basis for milestones achieved in fiscal years, and interim periods within those years, beginning on or after June 15, 2010. Early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its financial statements.  In February 2010, the FASB issued Accounting Standards Update (ASU) No. 2010-09, Amendments to Certain Recognition and Disclosure Requirements (ASU 2010-09), which is included in the FASB Accounting Standards Codification (ASC) Topic 855 Subsequent Events.  ASU 2010-09 clarifies that an SEC filer is required to evaluate subsequent events through the date that the financial statements are issued.  ASU 2010-09 is effective upon the issuance of the final update and did not have a significant impact on the Companys financial statements.  In June 2009, the FASB issued guidance now codified as ASC 105, Generally Accepted Accounting Principles as the single 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, aside from those issued by the SEC.  ASC 105 does not change current U.S. GAAP, but is intended to simplify user access to all authoritative U.S. GAAP by providing all authoritative literature related to a particular topic in one place.  The adoption of ASC 105 did not have a material impact on the Companys financial statements, but did eliminate all references to pre-codification standards.  6   The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.  NOTE 2 - GOING CONCERN  The accompanying financial statements have been prepared on a going concern basis which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. At March 31, 2010, the Company has an accumulated deficit and a working capital deficiency. These factors raise substantial doubt about the Companys ability to continue as a going concern which is dependent upon the Companys ability to achieve profitable operations or obtain adequate financing. The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.  While the Company is attempting to expand operations and produce additional revenues, the Companys working capital position may not be significant enough to support the Companys daily operations. There are no assurances that it will complete its revenue-producing engagements successfully, or that these revenue-producing engagements will be extended or that new engagements will be obtained.  NOTE 3  LOSS PER COMMON SHARE  Loss per share is based upon the weighted average number of shares of common stock and common stock equivalents outstanding. Basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.  Diluted loss per share is computed by using the treasury stock method. Shares issuable under an outstanding convertible note (see Note 4) were not included in the calculation of earnings per share because they would not have been dilutive.  NOTE 4  CONVERTIBLE NOTE PAYABLE  The Company incurred $42,000 of legal costs in connection with its decision to become publicly reporting. In December 2009, the Company entered into a convertible note payable with its outside counsel, Gary B. Wolff, to satisfy the obligation. The convertible note is payable on demand, non-interest bearing, and is convertible into 42,000,000 shares of the Companys common stock at a price per share equal to the par value of $0.001. Conversion can be in whole or in any portion of the outstanding principal balance at the option of the holder.  NOTE 5  RELATED PARTY TRANSACTIONS  Substantially all of the Companys revenues are and will continue to be derived from Actuarial Ideas, Inc., an actuarial and consulting firm controlled by the Companys president.  At March 31, 2010 and December 31, 2009, all accounts receivable were due from Actuarial Ideas, Inc.  In addition, Actuarial Ideas, Inc. owed $40,134 to the Company at March 31, 2010.  NOTE 6  COMMITMENTS AND CONTINGENCIES  The Company follows subtopic FASB ASC 450, Contingencies, of the FASB ASC to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.  The Company recorded a liability of $36,092 for professional services at December 31, 2009 which was included in the caption Accounts payable and accrued expenses. The amount remained unchanged at March 31, 2010. However, the Company believes that the amount billed was excessive and is exploring its options with respect to this item.  NOTE 7  ACCOUNTS PAYABLE AND ACCRUED EXPENSES  Accounts payable and accrued expenses were consited of the following:  March 31,December 31,20102009Accrued professional fees$54,069$54,069Amount due to transfer agent4,1084,107$58,177$58,176  7   NOTE 8 SUBSEQUENT EVENTS  The Company has evaluated all events that occurred after the balance sheet date of March 31, 2010 through May 17, 2011, the date these financial statements were issued.  The Management of the Company determined that there were no reportable subsequent events to be disclosed other than items included in the footnotes of these financial statements.  8   ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS   Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995  Except for the historical information contained herein, the matters addressed in this Item 2 constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are subject to a variety of risks and uncertainties, including those discussed below under the heading "Risk Factors" and elsewhere in this Quarterly Report on Form 10-Q, that could cause actual results to differ materially from those anticipated by the Company's management. The Private Securities Litigation Reform Act of 1995 (the "Act") provides certain "safe harbor" provisions for forward-looking statements. All forward-looking statements made in this Quarterly Report on Form 10-Q are made pursuant to the Act. The Company undertakes no obligation to publicly release the results of any revisions to its forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected events.  The Company cautions readers that important factors may affect the Companys actual results and could cause such results to differ materially from forward-looking statements made by or on behalf of the Company.  These factors include the Companys lack of historically profitable operations, dependence on key personnel, the success of the Companys business, ability to manage anticipated growth and other factors identified in the Company's filings with the Securities and Exchange Commission, press releases and/or other public communications. Unless the context otherwise requires, the words "AI," the "Company," "we," "us" and "our" refer to AI Document Service Inc.  This management's discussion and analysis should be read in conjunction with the managements discussion included in the Companys Annual report on Form 10-K for the fiscal year ended December 31. 2009, previously filed with Securities and Exchanges Commission.  Operations  We were formed as a line of business by Actuarial Ideas, Inc. (Actuarial) in January 2005 and became a separate legal entity on March 19, 2007. We write all of the pension plans for the clients of Actuarial, an actuarial and consulting firm controlled by our president, Mark Cohen. At the time that we became a separate legal entity, we entered into an agreement with Actuarial, under which we continue to write and edit all the pension and retirement plans for its clients and bill Actuarial under a subcontracting relationship. Prior to being a separate legal entity, we were structured as a line of business of Actuarial which allocated a portion of all of its combined costs to us based on the relationship of our revenues to Actuarials total revenues. The revenues represented specifically identified revenue for our business line and were not allocations. Actuarial maintained all of its records based on the nature of each type of revenue producing activity. All of the revenue associated with writing pension plans was segregated and specifically identified. Costs of sales consist primarily of salaries, rent, communications and travel costs. Actuarial believes that the allocation was consistent with the percentage of time and resources devoted to us during each period and conforms to guidelines described in SAB Topic 1B1.  Commencing July 1, 2007, cost allocations from Actuarial ceased, and we began paying a management fee to Actuarial equivalent to $1,500 per month plus 5% of revenues collected from customers of Actuarial. The management fee covers the costs of rent, administrative and computerized recordkeeping costs, communications and other office costs.  It does not include the salaries that we agreed to pay, professional fees and any separate marketing costs that we elect to incur.  We also pay (i) Mr. Cohen an annual salary of $30,000 for which he devotes 15% of his time to us (ii) Richard Cohen, our treasurer, devotes 10% of his time to us and receives an annual salary of $6,000.  For the immediate future, Actuarial will refer business to us by advising its clients that the project will be completed more efficiently by engaging us than by engaging any entity other than us to complete a portion of the required tasks. Actuarialwill provide us the basic information and background. We will use this information to draft or amend pension plans. We will be completely dependent on these referrals from Actuarial for our revenue for at least the next 18 to 24 months. When resources permit in the future, we will seek business from other sources in addition to Actuarial.  This work will be performed or supervised by Mr. Cohen. More than 60% of our revenues are generally earned in November and December. While operating in this manner, we will have fixed costs limited to the salary due to Mr. Cohen and the fixed portion of the management fee ($1,500 per month). We are not aware of any material changes to our operations for the next 12 months compared to the level of operations during the past 12 months.  The third paragraph in Liquidity below summarizes what our overall expenses will be if this level of operations takes place.  9   The accompanying financial statements have been prepared on a going concern basis which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. At March 31, 2010, we have an accumulated deficit and a working capital deficiency of $56,893. These factors raise substantial doubt about our ability to continue as a going concern which is dependent upon our ability to achieve profitable operations or obtain adequate financing. The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue in existence.  While we are attempting to expand operations and produce additional revenues, our working capital position may not be significant enough to support our daily operations. There are no assurances that we will complete our revenue-producing engagements successfully, or that these revenue-producing engagements will be extended or that new engagements will be obtained.  We believe that being a public entity may provide us (and our president, Mark Cohen) benefits in visibility and the way that we are perceived by potential business referral sources and prospective customers. These sources may refer new business to us directly or to Actuarial Ideas, Inc. which also will result in additional revenue for us. Ultimately, the goal of this process will be to develop sources of business beyond Actuarial Ideas, Inc. However, we have not done any studies or performed any surveys to determine the likelihood that these shareholders will actually make referrals to us and there can be no assurances that we will be successful in any of this regard.  Operations  March 31 2010 and 2009   A summary of operations is:   20102009Net sales$4,550$15,840Cost of sales9,0009,000Gross (loss) profit(4,450)6,840General and administrative expenses7,5826,871Loss from operations(12,032)(31)Income tax provision--Net loss$(12,032)$(31)  We currently perform work for approximately 150 plans that relate to Actuarials clients whose work has been subcontracted to us. More than half of these plans are defined benefit plans. The remainder is split among defined contribution plans such as profit sharing plans, money purchase plans, and 401(k) plans.  Our revenue and operations were negatively impacted by the ongoing downturn in the economy. This downturn resulted in very few companies establishing new pension plans. Companies with existing pension plans made as few changes or reviews as possible because of the economic uncertainties. Our financial situation was severely impacted in 2010 because of these uncertainties and conditions.  Commencing July 1, 2007, we began paying a management fee to Actuarial Ideas, Inc. equivalent to $1,500 per month plus 5% of revenues collected for us from customers by Actuarial Ideas, Inc.  The management fee covers the costs of rent, administrative and computerized recordkeeping costs, communications and other office costs.  It does not include the salaries that we agreed to pay, professional fees and any separate marketing costs that we elect to incur.  We also pay Mr. Mark Cohen an annual salary of $30,000 for which he devotes approximately 15% of his time to us and Mr. Richard Cohen an annual salary of $6,000 for which he devotes approximately 10% of his time to us. The salary expenses are included in cost of sales. The management fee and the 5% fee are included in general and administrative fees.  Of the amounts reported in 2010 and 2009:  Cost of sales  consists entirely of the salaries to Mark and Richard Cohen.  10   General and administrative expenses consist of:  2010  Management fee ($4,500); payroll taxes ($689), customer service fee ($1,938), and other ($455).  2009   Management fee ($4,500); payroll taxes ($689), and customer service fee ($1,682).  Liquidity  As a corporate policy,we will not incur any obligations that we cannot satisfy with known resources, as are described below and/or elsewhere herein.  We believe that the perception that many people have of a public company make it more likely that they will accept securities from a public company as consideration for indebtedness to them than they would from a private company.  We have not performed any studies of this matter.  Our conclusion is based on our own observations.  However, there can be no assurances that we will be successful in any of those efforts.  Additionally, issuance of shares would necessarily dilute the percentage of ownership interest of our existing shareholders.  Issuing restricted shares of our common stock to independent subcontractors or others who may be in a position to refer business or customers to us would enable us to operate and expand our business more effectively.  Having shares of our common stock may also give such entities a greater feeling of identity with us which may result in more referred business.  Conversely, such issuances of our shares would necessarily dilute the percentage of ownership interest of our existing shareholders.  Despite the fact our president is willing to consider providing us with a loan or advance to us on a case by case basis his resources are not unlimited. We do not believe that we can rely on the likelihood of any significant advance if we are unable to pay standard operating costs.  AI does not have any credit facilities or other commitments for debt or equity financing. No assurances can be given that advances when needed will be available. We do not believe that we need funding to undertake our operations at our current level because we do not have a capital intensive business or a significant amount of fixed costs. We do no advertising.  We currently are unaware of any required material cash requirements over the next 12 months other than for professional fees.  We believe that we can meet these requirements given the loan commitment from our president provided that revenues over the next 12 months do not decrease over those from the prior 12 months.  In 2009, we incurred $42,000 of legal costs in connection with our decision to become publicly reporting. In December 2009, we entered into a convertible note payable with our outside counsel, Gary B. Wolff, to satisfy the obligation. The convertible note is payable on demand, is non-interest bearing, and is convertible into shares of our common stock at a price equal to $.001 per share. Conversion can be in whole or in any portion of the outstanding principal balance at the option of the holder.  Private capital, if sought, will be sought from former business associates of our president or private investors referred to us by those business associates. To date, we have not sought any funding source and have not authorized any person or entity to seek out funding on our behalf. If a market for our shares ever develops, of which there can be no assurances, we may use shares of our common stock to compensate employees/consultants and independent contractors.  By having become a public company we have incurred and will continue to incur additional significant expenses for legal, accounting and related services. By being subject to the reporting requirements of the Securities Exchange Act of 1934, we will incur ongoing expenses associated with professional fees for accounting, legal and a host of other expenses. We estimate that these costs will range up to $50,000 per year for the next few years and will be higher if our business volume and activity increases but lower during the immediate future because our overall business volume may be lower. These obligations will reduce our ability and resources to fund other aspects of our business. We hope to be able to use our status as a public company to increase our ability to use noncash means of settling day-to-day business obligations and compensate any independent contractors who provide professional services to us, although there can be no assurances that we will be successful in any of those efforts. We will reduce the cash compensation levels paid to our president if there is insufficient cash generated from operations to satisfy these costs. If we reduce the cash paid to our president, the unpaid balance, without interest, will be accrued as a liability until paid. We may also seek outside investments or credit facilities to meet levels of obligations that exceed our cash flow.  However, we can provide no assurances that we will be successful in obtaining financing or satisfying all required costs.  11   There are no current plans to seek private investment.  We do not have any current plans to raise funds through the sale of securities.  We hope to be able to use our status as a public company to enable us to use noncash means of settling obligations and compensate persons and/or firms providing services or products to us  We believe that issuing shares of our common stock to such persons instead of paying cash to them may enable us to obtain and perform more and larger engagements because performance of those engagements will not require larger amounts of cash expenditures to the extent that shares are used to satisfy obligations. Our belief is based on personal observations and is not supported by any formal studies or polls. Having shares of our common stock may give persons a greater feeling of identity with us and our president, Mark Cohen, which may result in referrals to us directly by other actuarial firms or to Actuarial Ideas, Inc. which also will result in additional revenue for us.  However, we have not done any studies or performed any surveys to determine the likelihood that these shareholders will actually make referrals to us, and, there can be no assurances that we will do so or will be successful in any of these efforts.  In March 2007, we sold 770,000 shares of our common stock at $0.001 per share to 28 individuals (exclusive of 12 minors whose shares are being held by their respective parents on their behalf for $770.  The sale of such shares was not specifically or solely intended to raise financing since the funds raised were de minimis.  It was principally intended to get relatives and/or business associates of management involved in our business. Although these shareholders have no obligation to provide any services to us, management hopes that these new shareholders, their families and/or business associates may provide us with valuable services such as recommending us to potential clientele and providing us with business advice in any areas of expertise or knowledge that they may have that can be of value and assistance to us.   Off Balance Sheet Arrangements    We do not have any transactions, arrangements and other relationships with unconsolidated entities that will affect our liquidity or capital resources. We have no special purpose entities that provide off-balance sheet financing, liquidity or market or credit risk support, nor do we engage in swap agreements, or outsourcing of research and development services, that could expose us to liability that is not reflected on the face of our financial statements.   Recently Issued Accounting Pronouncements  See Note 1 of the Notes to Condensed Financial Statements for detailed information regarding the status of recently issued accounting pronouncements.         Critical Accounting Policies  The preparation of financial statements and related notes requires us to make judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.  An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the financial statements.  Financial Reporting Release No. 60 requires all companies to include a discussion of critical accounting policies or methods used in the preparation of financial statements.  There are no critical policies or decisions that rely on judgments that are based on assumptions about matters that are highly uncertain at the time the estimate is made.  Note 2to the financial statements included in the Companys Annual Report on Form 10K includes a summary of the significant accounting policies and methods used in the preparation of our financial statements.  Seasonality  More than 60% of our revenues are generally earned in November and December. During these two months, many companies are considering tax planning strategies including adopting or modifying retirement plans.  ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a smaller reporting company, as defined by Rule 229.10(f)(1).  12   ITEM 4  CONTROLS AND PROCEDURES  An evaluation was carried out under the supervision and with the participation of the Company's management, including the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") (in this case the same person), of the effectiveness of the Company's disclosure controls and procedures as of March 31, 2010. Based on that evaluation, the CEO/CFO has concluded that the Company's disclosure controls and procedures are effective to provide reasonable assurance that: (i) information required to be disclosed by the Company in reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the Company's management, including the CEO/CFO, as appropriate to allow timely decisions regarding required disclosure by the Company; and (ii) information required to be disclosed by the Company in reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.  Managements Report on Internal Controls over Financial Reporting  Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of consolidated financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. There has been no change in the Companys internal control  over financial reporting during the quarter ended March 31, 2010 that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting.  The Companys management, including the Companys CEO/CFO, does not expect that the Companys disclosure controls and procedures or the Companys internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of the controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.   PART II: OTHER INFORMATION  ITEM 1 - LEGAL PROCEEDINGS  No legal proceedings were initiated by or served upon the Company in the three month period ended March 31, 2010.  From time to time the Company may be named in claims arising in the ordinary course of business.  Currently, no legal proceedings or claims, other than those disclosed above, are pending against or involve the Company that, in the opinion of management, could reasonably be expected to have a material adverse effect on its business and financial condition.  ITEM 1A  RISK FACTORS   Risks Related to the Business  1. AI has virtually no financial resources. Our independent registered auditors report includes an explanatory paragraph stating that there is substantial doubt about our ability to continue as a going concern.  At March 31, 2010, we have an accumulated deficit and a working capital deficiency. These factors raise substantial doubt about our ability to continue as a going concern which is dependent upon our ability to achieve profitable operations or obtain adequate financing. Our independent registered auditors included an explanatory paragraph in their opinion on our financial statements as of and for the year ended December 31, 2009 that states that our lack of resources causes substantial doubt about our ability to continue as a going concern. No assurances can be given that we will generate sufficient revenue or obtain necessary financing to continue as a going concern.  13    2. AI is and will continue to be completely dependent on the services of our founder and president, Mark Cohen, the loss of whose services may cause our business operations to cease. We will need to engage and retain qualified employees and consultants to further implement our strategy.  AIs operations and business strategy are significantly dependent upon the knowledge and business contacts of Mark Cohen, our president.  All of our business is performed for Actuarial Ideas, Inc., an actuarial firm controlled by Mr. Cohen.  His personal relationships with clients and referral sources are a critical element of obtaining and maintaining engagements. He is under no contractual obligation to remain employed by us. If he should choose to leave us for any reason before we have hired additional personnel, our operations may fail.  Even if we are able to find additional personnel, it is uncertain whether we could find someone who could develop our business along the lines described herein.   We will fail without Mr. Cohen or an appropriate replacement(s).  We intend to acquire key-man life insurance on the life of Mr. Cohen naming us as the beneficiary when and if we obtain the resources to do so, and Mr. Cohen remains insurable. We have not yet procured such insurance, and there is no guarantee that we will be able to obtain such insurance in the future.  Accordingly, it is important that we are able to attract, motivate and retain highly qualified and talented personnel and independent contractors.  3. Competition from firms with greater resources could result in loss of our market share that could reduce our profitability.  The markets for our services are highly competitive. Our competitors currently include other human resources consulting and actuarial firms, as well as the human resources consulting divisions of diversified professional services, insurance firms and accounting firms. Many of our competitors have greater financial, technical and marketing resources than we have, which could enhance their ability to respond more quickly to technological changes, and fund internal growth. New competitors or alliances among competitors could emerge and gain significant market share.  In order to respond to increased competition and pricing pressure, we might have to lower our prices, which would have an adverse effect on our revenues and profit margin.  4. We are impacted by new laws, income tax rulings and accounting and financial reporting requirements. Changes in some or all of these rules and regulations can reduce the demand for pension plans significantly.  Pensions are impacted significantly by federal laws, income tax rulings and accounting and financial reporting requirements. These rules and regulations impact the timing of pension plan funding, the timing and amount of pension costs that are deductible for income tax purposes and the amount of pension costs and liabilities that must be reported in a pension sponsors financial statements. Changes in laws and regulations may make sponsoring or continuing to sponsor pension plans less attractive or affordable to plan sponsors. Reductions in plan sponsorship also reduce our potential client base. Significant reductions in client base would have a material adverse effect on our business and our operating results.  5. Demand for our services may decrease for various reasons other than changes in laws and regulations, including a general economic downturn, a decline in a clients or an industrys financial condition that could adversely affect our operating results.  We can give no assurance that the demand for our services will continue to grow or that we will compete successfully with our existing competitors, new competitors or our clients internal capabilities.  Our clients demand for our services also may change based on their own needs and financial conditions.  When economic downturns affect particular clients or industry groups, companies frequently reduce their budgets for outside consultants, which could reduce the demand for our services and increase price competition. A simplification of regulations or tax policy also could reduce the need for our services.  6. Actuarials clients generally may terminate Actuarials services at any time, which could decrease our utilization of available hours.  Actuarials clients generally may terminate our engagements at any time. If a client terminates the use of our services with little or no notice, our revenue will decline.  7. We are subject to malpractice claims arising from our work, which could adversely affect our reputation and business, and we are subject to government inquiries and investigations.  Professional services providers are increasingly subject to claims from their clients. Clients and third parties who are dissatisfied with Actuarials services and our services or who claim to suffer damages caused by our services may bring lawsuits against us. We draft and edit pension plan documents. The terms and structures set forth in these documents must comply with all laws and regulations as well as the terms described and agreed to by Actuarials clients. If there are errors or items that are unclear in the pension documents, Actuarials clients may seek to hold us responsible for the financial consequences of these errors or variances.  The risks from such variances could be aggravated in an environment of declining pension fund asset values. In most cases, our exposure to liability on a particular engagement is substantially greater than the profit opportunity that the engagement generates for us.  14   Defending lawsuits arising out of our services could require substantial amounts of management attention, which could affect managements focus on operations, adversely affect our financial performance and result in increased costs. In addition to defense costs and liability exposure, malpractice claims may produce negative publicity that could hurt our reputation and business.    8. All of our revenue was derived from performing work for clients referred to us by Actuarial, a related party.  Currently all of our revenue relates to preparing and editing all of the pension plans for the clients of Actuarial, a company controlled by our president. This trend is likely to continue for the immediate future. If Actuarials business were to decline or experience problems, our business would be affected in a similar manner. We believe that being a public entity may provide us (and our president, Mark Cohen) benefits in visibility and the way that we are perceived by potential business referral sources and prospective customers. These sources may refer new business to us directly or to Actuarial which may result in additional revenue for us. Ultimately, the goal of this process will be to develop sources of business beyond Actuarial. However, we have not conducted any studies or performed any surveys to determine the likelihood that any such referrals will develop, and there can be no assurances that we will be successful in this regard.    9. We are subject to the periodic reporting requirements of the Securities Exchange Act of 1934, which requires us to incur accounting and legal fees in connection with the preparation of such reports.  These additional costs could reduce or eliminate our abilityto fund our operations and may prevent us from meeting our normal business obligations.    We are subject to periodic reporting requirements of the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder. In order to comply with these regulations, our independent registered public accounting firm has to review our financial statements on a quarterly basis and audit our financial statements on an annual basis. Moreover, our legal counsel has to review and assist in the preparation of such reports. The future costs charged by these professionals for such services cannot be accurately predicted at this time because factors such as the number and type of transactions that we engage in and the complexity of our reports cannot be determined at this time and will have a major effect on the amount of time to be spent by our auditors and attorneys.   We do not have a sufficient number of employees to segregate responsibilities and may be unable to afford increasing our staff or engaging outside consultants or professionals to overcome our lack of employees. Moreover, effective internal controls, particularly those related to revenue recognition, are necessary for us to produce reliable financial reports and are important to help prevent financial fraud. If we cannot provide reliable financial reports or prevent fraud, our business and operating results could be harmed, investors could lose confidence in our reported financial information, and the trading price of our common stock, if a market ever develops, could drop significantly.   10. We have only three directors, all of whom are related to each other, which limit our ability to establish effective independent corporate governance procedures and increase the control of our president.   We have only three directors, one of which is our president and chairman and the other two the wife and the son of our president. Accordingly, we cannot establish board committees comprised of independent members to oversee functions like compensation or audit issues.   Until we have a larger board of directors which would include some independent members, if ever, there will be limited oversight of our presidents decisions and activities and little ability for minority shareholders to challenge or reverse those activities and decisions, even if they are not in the best interests of minority shareholders.   11. There are significant potential conflicts of interest   Neither of our key personnel (two persons) is required to commit a specified amount of time to our affairs and, accordingly, these individuals, particularly our president, may have conflicts of interest in allocating management time among various business activities. In the course of other business activities, certain key personnel (particularly our president) may become aware of business opportunities which may be appropriate for presentation to us, as well as the other entities with which they are affiliated.  As such, there may be conflicts of interest in determining to which entity a particular business opportunity should be presented.   As of May 17, 2011, our President, Mark Cohen, owns 92.3% of our issued and outstanding common shares. Additionally, Mr. Cohen deals with numerous other businessmen and professionals from whom he becomes aware of other business opportunities.   15   In an effort to resolve such potential conflicts of interest, we have entered into a written agreement with Mr. Cohen containing the following provisions:   · any business opportunities that he may become aware of independently or directly through his association with us would be presented by him solely to us;  · any business opportunities disclosed to him by the management of  other entities would not be presented by him to us if so requested by them;  · any business opportunities disclosed to him by us would not be presented by him to any other entity, unless and until we passed upon same; and · in the event that the same business opportunity is presented to him by both us and any other business entity, he shall only render his services to the business entity that first disclosed such business opportunity to him.   Risks Related to Our Common Stock   12. Shareholders may be diluted significantly through our efforts to obtain financing and satisfy obligations through issuance of additional shares of our common stock.   We have no committed source of financing. Wherever possible, our board of directors will attempt to use non-cash consideration to satisfy obligations. In many instances, we believe that the non-cash consideration will consist of restricted shares of our common stock. Our board of directors has authority, without action or vote of the shareholders, to issue all or part of the authorized (99,000,000) but unissued (89,000,000) common shares. In addition, if a trading market develops for our common stock, we may attempt to raise capital by selling shares of our common stock, possibly at a discount to market. These actions will result in dilution of the ownership interests of existing shareholders, may further dilute common stock book value, and that dilution may be material. Such issuances may also serve to enhance existing managements ability to maintain control of AI because the shares may be issued to parties or entities committed to supporting existing management.  13. The Companys outside counsel holds a $42,000 Convertible Note which can be converted, at his option, into up to 42,000,000 shares of our common stock.  The Companys outside counsel holds a $42,000 Convertible Note (Convertible Note) which can be converted, at his option, into up to 42,000,000 shares of our common stock. If he elects to convert all or a significant portion of the Convertible Note, he will become our majority stockholder. The conversion would result in significant dilution to existing shareholders and give him control of the Company. His outlook and approach may not be consistent with the interests of other shareholders. We cannot predict the likelihood or timing of such a conversion.   14. Our articles of incorporation provide for indemnification of officers and directors at our expense and limit their liability which may result in a major cost to us and hurt the interests of our shareholders because corporate resources may be expended for the benefit of officers and/or directors.   Our articles of incorporation and applicable Delaware law provide for the indemnification of our directors, officers, employees, and agents, under certain circumstances, against attorney's fees and other expenses incurred by them in any litigation to which they become a party arising from their association with or activities on our behalf. We will also bear the expenses of such litigation for any of our directors, officers, employees, or agents, upon such person's written promise to repay us therefore if it is ultimately determined that any such person shall not have been entitled to indemnification. This indemnification policy could result in substantial expenditures by us which we may never be unable to recoup.   We have been advised that, in the opinion of the SEC, indemnification for liabilities arising under federal securities laws is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable.  In the event that a claim for indemnification for liabilities arising under federal securities laws, other than the payment by us of expenses incurred or paid by a director, officer or controlling person in the successful defense of any action, suit or proceeding, is asserted by a director, officer or controlling person in connection with the securities being registered, we will (unless in the opinion of our counsel, the matter has been settled by controlling precedent) submit to a court of appropriate jurisdiction, the question whether indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. The legal process relating to this matter if it were to occur is likely to be very costly and may result in us receiving negative publicity, eitherof which factors are likely to materially reduce the market and price for our shares, if such a market ever develops.   16    15. Currently, there is no public market for our securities, and there can be no assurances that any public market will ever develop or that our common stock will be quoted for trading and, even if quoted, it is likely to be subject to significant price fluctuations.    There has not been any trading market for our common stock, and there is currently (and never has been) any public market whatsoever for our securities. Notwithstanding the fact that a trading symbol (AIDC) had been assigned to our common stock by FINRA there can be no assurance that:  · the OTCBB quoting and trading privilege will be recovered;  · any market for our shares will develop;  · the prices at which our common stock will trade; or  · the extent to which investor interest in us will lead to the development of any active, liquid trading market.  Active trading markets generally result in lower price volatility and more efficient execution of buy and sell orders for investors.  Subsequent to the assignment of a trading symbol, the OTCBB quoting and trading privilege were lost for failure to file timely Form 10-K and other required periodic filings. Failure to remain current in our future periodic reports with the SEC would lead to loss of OTCBB quoting privileges if they are recovered following the filing of all currently delinquent filings.  In addition, our common stock is unlikely to be followed by any market analysts, and there may be few institutions acting as market makers for our common stock. Either of these factors could adversely affect the liquidity and trading price of our common stock. Until our common stock is fully distributed and an orderly market develops in our common stock, if ever, the price at which it trades is likely to fluctuate significantly. Prices for our common stock will be determined in the marketplace and may be influenced by many factors, including the depth and liquidity of the market for shares of our common stock, developments affecting our business, including the impact of the factors referred to elsewhere in these Risk Factors, investor perception of AI and general economic and market conditions.  No assurances can be given that an orderly or liquid market will ever develop for the shares of our common stock.   Because of the anticipated low price of the securities, many brokerage firms may not be willing to effect transactions in our securities.  16. Without a public market there is no liquidity for our shares of common stock, and our shareholders may never be able to sell their shares, which may result in a total loss of their investment.  Our common shares are not listed on any exchange or quotation system. There currently is no market for our shares. Consequently, our shareholders will not be able to sell their shares in an organized market place and may have to sell their shares privately. If this happens, our shareholders might not receive a price per share which they might otherwise have received had there been a public market for our shares.   17. Legislation, including the Sarbanes-Oxley Act of 2002, may make it more difficult for us to retain or attract officers and directors.  The Sarbanes-Oxley Act of 2002 was enacted in response to public concerns regarding corporate accountability in connection with recent accounting scandals. The stated goals of the Sarbanes-Oxley Act are to increase corporate responsibility, to provide for enhanced penalties for accounting and auditing improprieties at publicly traded companies, and to protect investors by improving the accuracy and reliability of corporate disclosures pursuant to the securities laws. The Sarbanes-Oxley Act generally applies to all companies that file or are required to file periodic reports with the SEC, under the Securities Exchange Act of 1934. We are required to comply with the Sarbanes-Oxley Act. The enactment of the Sarbanes-Oxley Act of 2002 has resulted in a series of rules and regulations by the SEC that increase responsibilities and liabilities of directors and executive officers. The perceived increased personal risk associated with these recent changes may deter qualified individuals from accepting these roles. As a result, it may be more difficult for us to attract and retain qualified persons to serve on our board of directors or as executive officers. We continue to evaluate and monitor developments with respect to these rules, and we cannot predict or estimate the amount of additional costs we may incur or the timing of such costs.    18. Any market that develops in shares of our common stock will be subject to the penny stock regulations and restrictions which will create a lack of liquidity and make trading difficult or impossible.   The trading of our securities, if any, will be in the over-the-counter market which is commonly referred to as the OTCBB as maintained by FINRA. As a result, an investor may find it difficult to dispose of, or to obtain accurate quotations as to the price of our securities.   17   Rule 3a51-1 of the Securities Exchange Act of 1934 establishes the definition of a "penny stock," for purposes relevant to us, as any equity security that has a market price of less than $4.00 per share or with an exercise price of less than $4.00 per share, subject to a limited number of exceptions. It is likely that our shares will be considered to be penny stocks for the immediately foreseeable future. This classification severely and adversely affects the market liquidity for our common stock.   For any transaction involving a penny stock, unless exempt, the penny stock rules require that a broker or dealer approve a person's account for transactions in penny stocks and the broker or dealer receive from the investor a written agreement to the transaction setting forth the identity and quantity of the penny stock to be purchased.  In order to approve a person's account for transactions in penny stocks, the broker or dealer must obtain financial information and investment experience and objectives of the person and make a reasonable determination that the transactions in penny stocks are suitable for that person and that that person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks.   The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prepared by the SEC relating to the penny stock market, which, in highlight form, sets forth:   · the basis on which the broker or dealer made the suitability determination, and   · that the broker or dealer received a signed, written agreement from the investor prior to the transaction.   Disclosure also has to be made about the risks of investing in penny stock in both public offerings and in secondary trading and commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and the rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements have to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks.   Because of these regulations, broker-dealers may not wish to engage in the above-referenced necessary paperwork and disclosures and/or may encounter difficulties in their attempt to sell shares of our common stock, which may affect the ability of selling shareholders or other holders to sell their shares in any secondary market and have the effect of reducing the level of trading activity in any secondary market. These additional sales practice and disclosure requirements could impede the sale of our securities, if and when our securities become publicly traded. In addition, the liquidity for our securities may decrease, with a corresponding decrease in the price of our securities. Our shares, in all probability, will be subject to such penny stock rules for the foreseeable future and our shareholders will, in all likelihood, find it difficult to sell their securities.   19. The market for penny stocks has experienced numerous frauds and abuses which could adversely impact investors in our stock.   We believe that the market for penny stocks has suffered from patterns of fraud and abuse. Such patterns include:   · Control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer;  · Manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases;  · "Boiler room" practices involving high pressure sales tactics and unrealistic price projections by sales persons;  · Excessive and undisclosed bid-ask differentials and markups by selling broker-dealers; and  · wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the inevitable collapse of those prices with consequent investor losses.   20. If our common stock is quoted on the OTCBB and a public market for our common stock develops, short selling could increase the volatility of our stock price.  Short selling occurs when a person sells shares of stock which the person does not yet own and promises to buy stock in the future to cover the sale. The general objective of the person selling the shares short is to make a profit by buying the shares later, at a lower price, to cover the sale. Significant amounts of short selling, or the perception that a significant amount of short sales could occur, could depress the market price of our common stock. In contrast, purchases to cover a short position may have the effect of preventing or retarding a decline in the market price of our common stock, and together with the imposition of the penalty bid, may stabilize, maintain or otherwise affect the market price of our common stock. As a result, the price of our common stock may be higher than the price that otherwise might exist in the open market. If these activities are commenced, they may be discontinued at any time. These transactions may be effected on over-the-counter bulletin board or any other available markets or exchanges. Such short selling if it were to occur could impact the value of our stock in an extreme and volatile manner to the detriment of our shareholders.  18    21. Our shares may not become eligible to be traded electronically which would result in brokerage firms being unwilling to trade them.  If we become able to have our shares of common stock quoted on the OTCBB, we will then try, through a broker-dealer and its clearing firm, to become eligible with the Depository Trust Company ("DTC") to permit our shares to trade electronically. If an issuer is not DTC-eligible, then its shares cannot be electronically transferred between brokerage accounts, which, based on the realities of the marketplace as it exists today (especially the OTCBB), means that shares of a company will not be traded (technically the shares can be traded manually between accounts, but this takes days and is not a realistic option for companies relying on broker dealers for stock transactions - like all companies on the OTCBB. What this boils down to is that while DTC-eligibility is not a requirement to trade on the OTCBB, it is a necessity to process trades on the OTCBB if a companys stock is going to trade with any volume. There are no assurances that our shares will ever become DTC-eligible or, if they do, how long it will take.   22. Any trading market that may develop may be restricted by virtue of state securities Blue Sky laws which prohibit trading absent compliance with individual state laws. These restrictions may make it difficult or impossible to sell shares in those states.   There is no established public market for our common stock, and there can be no assurance that any established public market will develop in the foreseeable future.  Transfer of our common stock may also be restricted under the securities or securities regulations laws promulgated by various states and foreign jurisdictions, commonly referred to as Blue Sky laws.  Absent compliance with such individual state laws, our common stock may not be traded in such jurisdictions.  Because our securities have not been registered for resale under the blue sky laws of any state, the holders of such shares and persons who desire to purchase them in any trading market that might develop in the future, should be aware that there may be significant state blue sky law restrictions upon the ability of investors to sell the securities and of purchasers to purchase the securities. These restrictions prohibit the secondary trading of our common stock. Accordingly, investors should consider the secondary market for our securities to be a limited one.   23. Our board of directors has the authority, without stockholder approval, to issue preferred stock with terms that may not be beneficial to common shareholders and with the ability to affect adversely stockholder voting power and perpetuate their control over AI.   Our articles of incorporation allow us to issue shares of preferred stock without any vote or further action by our shareholders. Our board of directors has the authority to fix and determine the relative rights and preferences of preferred stock. Our board of directors also has the authority to issue preferred stock without further stockholder approval, including large blocks of preferred stock. As a result, our board of directors could authorize the issuance of a series of preferred stock that would grant to holders the preferred right to our assets upon liquidation, the right to receive dividend payments before dividends are distributed to the holders of common stock and the right to the redemption of the shares, together with a premium, prior to the redemption of our common stock.     24. The ability of our president to control our business may limit or eliminate minority shareholders ability to influence corporate affairs.   Our President owns 92.3% of our outstanding common stock. Because of his stock ownership, our president will be in a position to continue to elect our board of directors, decide all matters requiring stockholder approval and determine our policies. The interests of our president may differ from the interests of other shareholders with respect to the issuance of shares, business transactions with or sales to other companies, selection of officers and directors and other business decisions. The minority shareholders would have no way of overriding decisions made by our president. This level of control may also have an adverse impact on the market value of our shares because our president may institute or undertake transactions, policies or programs that result in losses, may not take any steps to increase our visibility in the financial community and/or may sell sufficient numbers of shares to significantly decrease our price per share.   25. We do not expect to pay dividends in the foreseeable future.   We have never paid cash dividends on our common stock. We do not expect to pay cash dividends on our common stock at any time in the foreseeable future. The future payment of dividends directly depends upon our future earnings, capital requirements, financial requirements and other factors that our board of directors will consider. Since we do not anticipate paying cash dividends on our common stock, return on your investment, if any, will depend solely on an increase, if any, in the market value of our common stock.   19    26. Because we are not subject to compliance with rules requiring the adoption of certain corporate governance measures, our shareholders have limited protections against interested director transactions, conflicts of interest and similar matters.   The Sarbanes-Oxley Act of 2002, as well as rule changes proposed and enacted by the SEC, the New York and American Stock Exchanges and NASDAQ Stock Market, as a result of Sarbanes-Oxley, require the implementation of various measures relating to corporate governance. These measures are designed to enhance the integrity of corporate management and the securities markets and apply to securities which are listed on those exchanges or NASDAQ Stock Market. Because we are not presently required to comply with many of the corporate governance provisions and because we chose to avoid incurring the substantial additional costs associated with such compliance any sooner than necessary, we have not yet adopted these measures.   Because none of our directors are independent directors, we do not currently have independent audit or compensation committees. As a result, these directors have the ability, among other things, to determine their own level of compensation. Until we comply with such corporate governance measures, regardless of whether such compliance is required, the absence of such standards of corporate governance may leave our shareholders without protections against interested director transactions, conflicts of interest and similar matters and investors may be reluctant to provide us with funds necessary to expand our operations. We intend to comply with all corporate governance measures relating to director independence as, if and when required.  27. You may have limited access to information regarding our business because our obligations to file periodic reports with the SEC could be automatically suspended under certain circumstances.  We currently are trying to file all delinquent filings. However, our reporting obligations are automatically suspended by operation of statute under Section 15(d) of the Securities Exchange Act of 1934 if we have less than 300 shareholders or have not filed a registration statement on Form 8A. If this occurs after the year in which our Registration Statement became effective, we may file periodic reports voluntarily with the SEC, but will no longer be obligated to file those periodic reports with the SEC and your access to our business information would then be even more restricted. We are not required to furnish proxy statements to security holders and our directors, officers and principal beneficial owners are not be required to report their beneficial ownership of securities to the SEC pursuant to Section 16 of the Securities Exchange Act of 1934 until we have both 500 or more security holders and greater than $10 million in assets and are required to register our shares under Section 12 of the Exchange Act. This means that your access to information regarding our business will be limited.  ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS  None for the period ended March 31, 2010.  ITEM 3 - DEFAULTS UPON SENIOR SECURITIES  None.  ITEM 4  (REMOVED AND RESERVED)   ITEM 5 - OTHER INFORMATION  None.  ITEM 6  EXHIBITS


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|Exhibit
Number |  | Description                                                                                                                                                         
|31.1           |  | Section 302 Certification Of Chief Executive And Chief Financial Officer                                                                                            
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|32.1           |  | Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act Of 2002  Chief Executive And Chief Financial Officer

20   Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.  A1 Document Services, Inc. (Registrant)      /s/ Mark Cohen Mark Cohen Title: President and Chief Financial Officer    May 17, 2011   21