UNITED
STATESSECURITIES AND EXCHANGE COMMISSIONWashington,
D.C. 20549

_________________



FORM
10-K



[X] 
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED ON September 30, 2006



OR



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



Commission
file number: 0-21279



ABSOLUTE
POTENTIAL, INC.

(Exact
Name of Registrant as Specified in Its Charter)





|FLORIDA                                                                                | 59-3223708                                                     
|-------------------------------------------------------------------------------------- | ---------------------------------------------------------------
|(State
        or Other Jurisdiction of
        Incorporation
        or Organization) | (I.R.S.
        Employer
        Identification
        Number)





|141
    West Jackson Blvd, Suite 2182, Chicago, Illinois |  | 60604         
|-------------------------------------------------------- |  | --------------
|(Address
    of Principal Executive Offices)             |  | (Zip
    Code)

Registrant's
telephone number, including area code: (312) 427-5457



Securities
registered pursuant to Section 12(b) of the Act: None

Securities
registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.0001 per share



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



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



Indicate
by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to 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 [  ]



Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K(§ 232.405)is not contained herein, and will not be contained, to the best of the Registrant’s knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K or any amendments to this
Form 10-K.  [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. See definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act.





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





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



The
aggregate market value of the common equity held by non-affiliates computed by reference to the price at which the common equity
was last sold as of September 30, 2006 was: negligible.



APPLICABLE
ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:



Indicate
by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.  Yes   [X]   No [   ]



As of December
16, 2011, 646,176 shares of the registrant’s common stock, par value of $0.0001, were outstanding.



2







Table
of Contents





|             |                                                                                                                  |     
|------------ | ---------------------------------------------------------------------------------------------------------------- | ----
|             |                                                                                                                  | Page
|PART I       |                                                                                                                  |     
|Item 1.      | Business                                                                                                         | 3   
|Item
    2.  | Properties                                                                                                       | 12  
|Item
    3.  | Legal
    Proceedings                                                                                            | 12  
|             |                                                                                                                  |     
|PART
    II  |                                                                                                                  |     
|Item
    5.  | Market
    for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 13  
|Item
    6.  | Selected
    Financial Data                                                                                      | 13  
|Item
    7.  | Management’s
    Discussion and Analysis of Financial Condition and Results of Operations                        | 14  
|Item
    7A. | Quantitative
    and Qualitative Disclosures about Market Risk                                                   | 19  
|Item
    8.  | Financial
    Statements and Supplementary Data                                                                  | 19  
|Item
    9.  | Changes
    in and Disagreements with accountants on Accounting and Financial Disclosure                         | 20  
|Item
    9A. | Controls
    and Procedures                                                                                      | 20  
|Item
    9B  | Other
    Information                                                                                            | 20  
|             |                                                                                                                  |     
|PART
    III |                                                                                                                  |     
|Item
    10. | Directors,
    Executive Officers and Corporate Governance                                                       | 21  
|Item
    11. | Executive
    Compensation                                                                                       | 21  
|Item
    12. | Security
    Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters               | 22  
|Item
    13. | Certain
    Relationships and Related Transactions, and Director Independence                                    | 22  
|Item
    14. | Principal
    Accountant Fees and Services                                                                       | 23  
|             |                                                                                                                  |     
|PART
    IV  |                                                                                                                  |     
|Item
    15. | Exhibits
    and Financial Statements Schedules                                                                  | 24  
|SIGNATURES   |                                                                                                                  | 25  

3









CAUTIONARY
STATEMENT RELATING TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This
Annual Report on Form 10-K and the information incorporated by reference includes ‘‘forward-looking statements’’
within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend
those forward looking-statements to be covered by the safe harbor provisions for forward-looking statements. All statements regarding
our expected financial position and operating results, our business strategy, our financing plans and the outcome of any contingencies
are forward-looking statements. Any such forward-looking statements are based on current expectations, estimates, and projections
about our industry and our business. Words such as ‘‘anticipates,’’ ‘‘expects,’’
‘‘intends,’’ ‘‘plans,’’ ‘‘believes,’’ ‘‘seeks,’’
‘‘estimates,’’ or variations of those words and similar expressions are intended to identify such forward-looking
statements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially
from those stated in or implied by any forward-looking statements.



Item
1. Description of Business



Overview



We
were incorporated in Florida in August 1993. In November 2001, we filed a voluntary petition for reorganization under Chapter
11 of the U. S. Bankruptcy Code with the U.S. Bankruptcy Court. On August 30, 2002, the United States Bankruptcy Court for the
Middle District of Florida, Tampa Division, Case No. 01-20854-8G1 issued an order confirming our Plan of Reorganization under
Chapter 11 of the Bankruptcy Code, dated as of February 25, 2002 (the "Plan"). Although the Plan became effective on
August 30, 2002 and we commenced implementation of the Plan on that date, distributions of common stock to our pre-bankruptcy
creditors did not occur until July 31, 2003.



In
July 2003, we changed our name to Absolute Waste Services, Inc. On August 23, 2003, we entered into an Agreement and Plan of Merger
(the "Merger Agreement") with Absolute Industries, LLC, a Texas limited liability company, pursuant to which Absolute
Industries, LLC merged into our newly formed wholly owned subsidiary (the "Merger Sub"), with the Merger Sub being the
surviving entity and succeeding to the business operations of Absolute Industries, LLC (the "Merger"). In June 2004,
we and the former members of Absolute Industries, LLC agreed to unwind the effects of the Merger, for each party to return to
the other party the consideration received in connection with the Merger, and to release each other from all claims relating to
the Merger Agreement and the Merger. In connection with this transaction, all of the issued and outstanding stock of the Merger
Sub was transferred to the former members of Absolute Industries, LLC.



Prior
to the Merger, we had no material assets, liabilities or business operations. In substance, we were a publicly held shell corporation
whose sole business activity was to search for a suitable business opportunity. Because the effects of the Merger have been unwound,
and because we no longer have any ownership interest in Merger Sub and therefore no longer engage in the type of business previously
engaged in by the Merger Sub, this Annual Report on Form 10-K will treat us as a publicly held shell.



On
October 24, 2005, we changed our name to Absolute Potential, Inc. On November 14, 2005, the Company effectuated a reverse stock
split whereby one share of common stock was issued for each 100 shares of common stock outstanding as of the record date.



4













We
are seeking business opportunities through a merger with, or acquisition of, one or more private companies. We have had no material
operations since 2004. We are not presently engaged in, and do not plan to engage in, any substantive commercial business for
an indefinite period of time.



We
believe that there is a demand by non-public corporations for shell corporations that have a public distribution of securities.
We believe that demand for shell corporations has increased dramatically since the Securities and Exchange Commission (the "Commission")
imposed additional requirements upon "blank check" companies pursuant to Rule 419 of the Act. According to the Commission,
Rule 419 was designed to strengthen regulation of securities offerings by blank check companies, which Congress has found to have
been a common vehicle for fraud and manipulation in the penny stock market. The foregoing regulation has substantially decreased
the number of "blank check" offerings filed with the Commission, and as a result has stimulated an increased demand
for shell corporations. While we have made the foregoing assumption, there is no assurance that the same is accurate or correct
and, accordingly, no assurance that we will merge with or acquire an existing private entity.



General



We
propose to seek, investigate and, if warranted, acquire an interest in one or more business opportunity ventures. As of the date
hereof, we have no business opportunities or ventures under contemplation for acquisition or merger, but we propose to investigate
potential opportunities with investors or entrepreneurs with a concept which has not yet been placed in operation, or with firms
which are developing companies. We may seek out established businesses which may be experiencing financial or operation difficulties.
We anticipate that we will seek to merge with or acquire an existing business. After the merger or acquisition has taken place,
we will be the surviving entity, however, management from the acquired entity will in all likelihood control our operations. There
is a remote possibility that we may seek to acquire and operate a business which is not currently operating, in which case our
existing management might be retained. Due to the absence of capital available for investment by us, the types of businesses seeking
to be acquired by us will invariably be smaller and higher risk types of businesses. In all likelihood, a business opportunity
will involve the acquisition of or merger with a corporation which does not need additional cash but which desires to establish
a public trading market for our common stock. Accordingly, our ability to acquire any business of substance will be extremely
limited.



We
do not propose to restrict our search for investment opportunities to any particular industry or geographical location and may,
therefore, engage in essentially any business, anywhere, to the extent of our limited resources.



It
is anticipated that business opportunities will be available to us and sought by us from various sources throughout the United
States, including our officer and director, professional advisors such as attorneys and accountants, securities broker/dealers,
venture capitalists, members of the financial community, other businesses and others who may present solicited and unsolicited
proposals. We believe that business opportunities and ventures may become available to us due to a number of factors, including,
among others: (a) our willingness to enter into unproven, speculative ventures; (b) our officer's and director's contacts and
acquaintances; and (c) our flexibility with respect to the manner in which we may structure potential financing, mergers and/or
acquisitions. However, there is no assurance that we will be able to structure, finance, merge with and/or acquire any business
opportunity or venture.



5













Our
Operations



Our
sole executive officer will seek acquisition/merger candidates and/or orally contact individuals or broker/dealers and advise
them of our availability as an acquisition candidate. Our sole executive officer will review material furnished to him by the
proposed merger/acquisition candidates and decide if a merger/acquisition is in our and our shareholders' best interests.



We
may employ outside consultants until a merger/acquisition candidate has been targeted by us; however, we believe that it is impossible
to precisely define the criteria that will be used to hire such consultants. While we may hire independent consultants, we have
not considered any criteria regarding their experience, the services to be provided, or the term of service. We have not had any
discussions with any consultants and there are no agreements or understandings with any consultants. Other than as disclosed herein,
there are no other plans for accomplishing our business purposes.





Our
Office



Our
office is located at 141 West Jackson Boulevard, Suite 2182, Chicago, Illinois 60604, and the telephone number is (312) 427-5457located
in the office of Augustine Fund, L.P.; Thomas Duszynski, our sole employee, director and officer, is a principal of Augustine
Fund, L.P. We anticipate that our office will remain at the offices of Augustine Fund, L.P. until an acquisition has been concluded.
All corporate records will be maintained at this office, and it is anticipated that all shareholders' meetings will take place
in Chicago, Illinois. In the event that a merger or acquisition takes place, no assurance can be given that the corporate records
or headquarters will continue to be maintained at 141 West Jackson Boulevard, Suite 2182, Chicago, Illinois 60604, or that shareholders'
meetings will be held in Chicago, Illinois. We are not responsible for reimbursement for out-of-pocket office expenses, such as
telephone, postage or supplies. There are no written documents memorializing the foregoing. We consider our current office space
adequate for our current operations.



There
are no agreements or understandings with respect to our offices subsequent to the completion of an acquisition. Upon a merger
or acquisition, we will likely relocate our office to that of the acquisition candidate.



Reports
to Security Holders



We
are subject to reporting obligations under the Exchange Act. These obligations include an annual report under cover of Form 10-K,
with audited financial statements, unaudited quarterly reports and the requisite proxy statements with regard to annual shareholder
meetings. The public may read and copy any materials we file with the Commission at the Commission's Public Reference Room at
100 F Street, NE, Washington, D.C. 20549. The public may obtain information of the operation of the Public Reference Room by calling
the Commission at 1-800-SEC-0030. The Commission maintains an Internet site (http://www.sec.gov) that contains reports, proxy
and information statements and other information regarding issuers that file electronically with the Commission.



We
will not acquire a target business if audited financial statements cannot be obtained for the target business. Additionally, our
management will provide shareholders with audited financial statements, prepared in accordance with generally accepted accounting
principles, of the prospective target business as part of the proxy solicitation materials sent to shareholders to assist them
in assessing the target business. Our management believes that the requirement of having available audited financial statements
for the target business will not materially limit the pool of potential target businesses available for acquisition.



6















New
Regulations



On
June 30, 2005, the SEC adopted rules regarding publicly reporting “shell companies”, and the Company will be considered
a shell company under the new definition. The rules are designed to ensure that investors in shell companies who acquire operations
have timely access to the same type of information as is available to investors in public companies generally. Most of these rules
became effective on August 22, 2005.



As
adopted, the rules will:



|• |  | require a public shell company
to report on Form 8-K an event that causes it to cease being a shell company and to include in that Form 8-K the same type of
detailed financial and other information about the company as is required to register a class of securities under the Exchange
Act;
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|• |  | prohibit a public shell company
from using Form S-8 (the abbreviated registration statement used to register securities issued under employee benefit plans) until
60 days after it ceases to be a shell company; and require every public company to check a box on the cover of all annual and
quarterly reports to identify whether or not it is a shell company.
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Selection
of Opportunities



The
analysis of new business opportunities will be undertaken by or under the supervision of our sole executive officer and director.
Inasmuch as we will have no funds currently available to us in our search for business opportunities and ventures, and that any
funds which subsequently become available to us will likely be provided in the form of loans from our majority shareholder, we
will not be able to expend significant funds on a complete and exhaustive investigation of such business or opportunity. We will
however, investigate, to the extent believed reasonable by our sole executive officer, such potential business opportunities or
ventures.



As
part of our investigation, we plan to meet personally with management and key personnel of the firm sponsoring the business opportunity,
and we may also visit and inspect plants and facilities, obtain independent analysis or verification of certain information provided,
check references of management and key personnel, and conduct other reasonable review, to the extent of our limited financial
resources and management and technical expertise.



Prior
to making a decision to participate in a business opportunity or venture, we will generally request that we be provided with written
materials regarding the business opportunity containing such items as a description of products, services and company history;
management resumes; financial information; available projections with related assumptions upon which they are based; evidence
of existing patents, trademarks or service marks or rights thereto; current and proposed forms of compensation to management;
a description of transactions between the prospective entity and our affiliates during relevant periods; a description of current
and required facilities; an analysis of risks and competitive conditions; and other information deemed by us to be relevant.



It
is anticipated that the investigation of specific business opportunities and the negotiation, drafting and execution of relevant
agreements, disclosure documents and other instruments will require substantial management time and attention and costs for accountants,
attorneys and others. Our majority shareholder anticipates funding our operations, including providing funds necessary to search
for acquisition candidates, until an acquisition candidate is found, without regard to the amount involved. Accordingly, no alternative
cash resources have been explored. Note, however, that our majority shareholder is under no obligation to provide such funding.



7

















We
will have unrestricted flexibility in seeking, analyzing and participating in business opportunities. In our efforts, we will
consider the following factors:



(i)
Potential for growth, as indicated by new technology, anticipated market expansion or new products;



(ii)
Competitive position as compared to other firms engaged in similar activities;



(iii)
Strength of management;



(iv)
Capital requirements and anticipated availability of required funds from future operations, through the sale of additional securities,
through joint ventures or similar arrangements or from other sources; and



(v)
Other relevant factors.



Potentially
available business opportunities may occur in many different industries and at various stages of development, all of which will
make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex. Due to
our limited capital and resources that may be available for investigation, we may not discover or adequately evaluate adverse
facts about the opportunity to be acquired.



We
are unable to predict when we may participate in a business opportunity. We expect, however, that the analysis of specific proposals
and the selection of a business opportunity may take several months or more. We do not plan to raise any capital at the present
time, by private placements, public offerings, pursuant to Regulation S promulgated under the Act, or by any other means whatsoever.
Further, there are no plans, proposals, arrangements or understandings with respect to the sale or issuance of additional securities
prior to the location of an acquisition or merger candidate.



Form
of Acquisition



The
manner in which we participate in an opportunity will depend upon the nature of the opportunity, our needs and desires and the
needs and desires of the promoters of the opportunity, and the relative negotiating strength of us and such promoters. The exact
form or structure of our participation in a business opportunity or venture will be dependent upon the needs of the particular
situation. Our participation may be structured as an asset purchase agreement, a lease, a license, a joint venture, a partnership,
a merger, or acquisition of securities.



As
set forth above, we may acquire our participation in a business opportunity through the issuance of common stock or other securities.
Although the terms of any such transaction cannot be predicted, it should be noted that in certain circumstances the criteria
for determining whether or not an acquisition is a so-called "tax free" reorganization under Section 368(a)(1) of the
Internal Revenue Code of 1986, as amended, may depend upon the issuance to the shareholders of the acquired company of at least
eighty percent (80%) of the common stock of the combined entities immediately following the reorganization. If a transaction were
structured to take advantage of these provisions rather than other "tax free" provisions provided under the Internal
Revenue Code, all prior shareholders may, in such circumstances, retain twenty percent (20%) or less of the total issued and outstanding
common stock. This could result in substantial additional dilution to the equity of those who were our shareholders prior to such
reorganization. Further, extreme caution should be exercised by any investor relying upon any tax benefits in light of changes
that may occur in the tax laws. It is possible that no tax benefits will exist at all.



8

















Our
present management and shareholders will in all likelihood not have control of a majority of our voting shares following a reorganization
transaction. In fact, it is most probable that the shareholders of the acquired entity will gain control of us. As part of any
transaction, our then director may resign and new directors may be appointed without any vote by shareholders.



Securities
Law Regulations

1934
Act

Sections
13 and 15(d) of the 1934 Act require companies subject thereto to provide certain information about significant acquisitions,
including certified financial statements for the company acquired, covering one, two, or three years, depending on the relative
size of the acquisition. The time and additional costs that may be incurred by some target entities to prepare such statements
may significantly delay or essentially preclude consummation of an otherwise desirable acquisition by the Company. Acquisition
prospects that do not have or are unable to obtain the required audited statements may not be appropriate for acquisition so long
as the reporting requirements of the 1934 Act are applicable.

Recent
SEC Shell Company Rules

On
June 29, 2005, the Securities and Exchange Commission adopted final rules amending the Form S-8 and the Form 8-K for shell companies.
These rules were published in the Federal Register on July 21, 2005 and were made effective as of August 22, 2005, except for
an amendment to Item 5.06 of the Form 8-K that became effective on November 5, 2005. The amendments expand the definition of a
shell company to be a company with no or nominal operations, assets consisting of cash and cash equivalents, or assets consisting
of any amount of cash and cash equivalents and nominal other assets. Shell companies, as a result of these rule changes:

|• |  | are now prohibited from using
Form S-8 (the abbreviated registration statement used to register securities issued under employee benefit plans) until 60 days
after it ceases to be a shell company;
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|• |  | must include current Form 10
information, including audited financial statements in the Form 8-K that the shell company files to report an event that causes
it to cease being a shell company;
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|• |  | must file financial statements
and pro forma information within four days of the transaction; and
|- |  | -------------------------------------------------------------------------------------------------



|• |  | where an operating company
acquires a shell company and the operating company survives the transaction; the operating company will have acquired control
of the shell for purposes of the definition of “succession” under the final rules and the operating company, as the
surviving entity, will be required to file a Form 8-K under Item 5.01.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



9











Prior
to the new rules, financial statements of the acquired private company were not required to be filed on Form 8-K until 75 days
after completion of the merger or acquisition. Also, detailed information about the business and management of the acquired private
company was not required until the reporting company filed its next annual report on Form 10-KSB or Form 10-K. As a result, securities
of the new entity could be traded for up to 75 days with investors having little or no access to vital information about the acquired
private company.

Sarbanes-Oxley
Act of 2002

On
July 30, 2002, President Bush signed into law the Sarbanes-Oxley Act of 2002, or SOX. SOX imposes a wide variety of requirements
on both U.S. and non-US. companies, that file or are required to file periodic reports with the SEC under the 1934 Act. Many of
these new requirements could affect us and our board of directors. For instance, under SOX we may be required to:

|• |  | form an audit committee in
compliance with SOX;
|- |  | -----------------------------------------------



|• |  | our chief executive officer
and chief financial officer are required to certify our financial statements;
|- |  | ---------------------------------------------------------------------------------------------------------



|• |  | ensure our directors and senior
officers are required to forfeit all bonuses or other incentive-based compensation and profits received from the sale of our securities
in the twelve month period following initial publication of any of our financial statements that later require restatement;
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|• |  | disclose any off-balance sheet
transactions as required by SOX;
|- |  | ---------------------------------------------------------------



|• |  | prohibit all personal loans
to directors and officers;
|- |  | ------------------------------------------------------



|• |  | ensure directors, officers
and 10% holders file their Forms 4s within two days of a transaction;
|- |  | ------------------------------------------------------------------------------------------------



|• |  | adopt a code of ethics and
file a Form 8-K whenever there is a change or waiver of this code; and
|- |  | -------------------------------------------------------------------------------------------------



|• |  | ensure our auditor is independent
as defined by SOX.
|- |  | ----------------------------------------------------



SOX
has required us to review our current procedures and policies to determine whether they comply with the SOX and the new regulations
promulgated thereunder. We will continue to monitor our compliance with all future regulations that are adopted under the SOX
and will take whatever actions are necessary to ensure that we are in compliance.

Reports
to Securities Holders

Reports
and other information filed by us with the Commission pursuant to the informational requirements of the Securities Exchange Act
of 1934 will be available for inspection and copying at the public reference facilities maintained by the Commission at 100 F
Street, NE, Room 2521, Washington, D. C. 20549. Copies of such material may be obtained from the public reference section of the
Commission at 100 F Street, NE, Room 2521, Washington, D. C. 20549, at prescribed rates. Please call the SEC at 1-800-SEC-0330
for further information on the public reference room. Our reports and other documents filed with the Commission may also be available
electronically on the World Wide Web at http://www.sec.gov.

10









Competition



We
will remain an insignificant participant among the firms that engage in the acquisition of business opportunities. Many established
venture capital and financial firms have significantly greater financial and personnel resources and technical expertise than
us. In view of our lack of financial resources and limited management availability, we will continue to be at a significant competitive
disadvantage compared to our competitors. We will also be competing with a large number of small, widely held companies located
throughout the United States, as well as other publicly held companies.



Employees



Thomas
F. Duszynski is our sole employee, director and officer. Mr. Duszynski is not obligated to contribute any specific number of hours
per week and intends to devote only as much time as he deems necessary to our affairs. The amount of time he will devote in any
time period will vary based on the availability of suitable target businesses to investigate. We do not intend to have any full
time employees prior to the consummation of a business combination. We have no salaried employees and we anticipate that none
of our officers, directors or principal shareholders will receive any compensation for any services they may provide us. Our management
expects to use consultants, attorneys and accountants as necessary, and does not anticipate a need to engage any full-time employees
so long as we are seeking and evaluating business opportunities. The need for employees and their availability will be addressed
in connection with the decision whether or not to acquire or participate in a specific business opportunity.



11















Item
2. Properties



Real
Property



We
are provided rent-free office space at 141 West Jackson Boulevard, Suite 2182, Chicago, Illinois 60604 by Augustine Fund, L.P.,
one of our shareholders. We are not responsible for reimbursement for out-of-pocket office expenses, such as telephone, postage
or supplies.



Other
Property



We
currently use office equipment provided by Augustine Fund, L.P., one of ours hareholders. We do not own or lease any
equipment or other material assets.



Item
3. Legal Proceedings



In
2005 the Commission notified us that it is considering initiating administrative proceedings to have our common stock deregistered.
We promptly submitted a written response to the Commission's notice and engaged in discussions with the Commission regarding this
notice. On 10/17/2011 the Commission sent a written communication requesting that the Company be deregistered. The company has
hired a third party legal counsel to respond to the Commission’s request for deregistration hoping to continue as a registered
filer. On November 18, 2011 a preliminary hearing was held and the company was granted a continuance until January 9, 2012 at
which time the judge will make a final ruling as to whether the Company’s stock will be deregistered or not.



In
the ordinary course of our business, we may at times be subject to various legal proceedings. However, except as set forth above,
we are not party to, and are not aware of, pending or threatened litigation that we currently anticipate would have a material
adverse effect on our business or operations.



12











PART
II



Item
5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities



Common
Stock Information



On
October 5, 2005, we received the written consent dated October 5, 2005, from the holders of 54,976,438 shares of our common stock,
representing approximately 90.9% of our outstanding voting stock, approving a reverse stock split whereby one share of common
stock would be issued for each 100 shares of common stock outstanding as of the record date, resulting in the number of outstanding
shares being reduced from 60,469,250 to approximately 604,693 (the "Reverse Split"). On October 24, 2005, we commenced
distribution of an information statement to our shareholders regarding this vote. The Reverse Split described therein was deemed
ratified and effective on November 14, 2005. As a result of the Reverse Split, as of December 30, 2005, we had approximately 275
record holders of our common stock and a total of approximately 604,693 shares of our common stock were outstanding.



On
September 30, 2006, we adjusted our common stock outstanding to account for the costs to convert debt to equity. This cost was
$4 and represents 41,483 shares. As of September 30, 2006, we had 275 record holders of our common stock and 646,176 shares of
common stock outstanding.



Our
common stock has previously been traded on the OTC Bulletin Board under the symbol "VCLL" and was delisted from the
OTC Bulletin Board on August 11, 2003, and there is currently no public trading market for our common stock. On December 30, 2006,
there was no bid price for our common stock.



Recent
Sales of Unregistered Securities



None.



Dividends



We
have not paid any dividends since our inception, and we do not foresee declaring any dividends in the foreseeable future.



Securities
Authorized for Issuance Under Equity Compensation Plans



None.



Item
6. Selected Financial Data.



Not Required.



13













Item
7. Management's Discussion and Analysis of Financial Condition and Results of Operations.



Plan
of Operation--Introduction



We
were incorporated in Florida in August 1993. In November 2001, we filed a voluntary petition for reorganization under Chapter
11 of the U. S. Bankruptcy Code with the U.S. Bankruptcy Court. On August 30, 2002, the United States Bankruptcy Court for the
Middle District of Florida, Tampa Division, Case No. 01-20854-8G1 issued an order confirming our Plan of Reorganization under
Chapter 11 of the Bankruptcy Code, dated as of February 25, 2002 (the "Plan"). Although the Plan became effective on
August 30, 2002 and we commenced implementation of the Plan on that date, distributions of common stock to our pre-bankruptcy
creditors did not occur until July 31, 2003.



In
July 2003, we changed our name to Absolute Waste Services, Inc. On August 23, 2003, we entered into an Agreement and Plan of Merger
(the "Merger Agreement") with Absolute Industries, LLC, a Texas limited liability company, pursuant to which Absolute
Industries, LLC merged into our newly formed wholly owned subsidiary (the "Merger Sub"), with the Merger Sub being the
surviving entity and succeeding to the business operations of Absolute Industries, LLC (the "Merger"). In June 2004,
we and the former members of Absolute Industries, LLC agreed to unwind the effects of the Merger, for each party to return to
the other party the consideration received in connection with the Merger, and to release each other from all claims relating to
the Merger Agreement and the Merger. In connection with this transaction, all of the issued and outstanding stock of the Merger
Sub was transferred to the former members of Absolute Industries, LLC.



Prior
to the Merger, we had no material assets, liabilities or business operations. In substance, we were a publicly held shell corporation
whose sole business activity was the search for a suitable business opportunity. Because the effects of the Merger have been unwound,
and because we no longer have any ownership interest in Merger Sub and therefore no longer engage in the type of business previously
engaged in by the Merger Sub, this Annual Report on Form 10-K will treat us as a publicly held shell.



We
are a company that is intended to serve as a vehicle for the acquisition of a target business which we believe has significant
growth potential. We are not presently engaged in, and we will not engage in, any substantive commercial business for an indefinite
period of time. While we may seek to effect business combinations with more than one target business, we will probably have the
ability, as a result of our limited resources, to effect only a single business combination.



Current
Trends



As
a result of the recent declines in the United States equity markets, many privately held companies have been shut off from the
public marketplace. Additionally, as the economy has slowed, many companies are attempting to divest non-core assets and divisions.
Due to these factors, we believe that there are substantial opportunities to effect attractive acquisitions and that, as a public
entity, we are well positioned to identify target acquisitions and to effect a business combination to take advantage of these
current trends.



14

















Effecting
a Business Combination



General



A
business combination may involve the acquisition of, or merger with, a company that does not need substantial additional capital
but that desires to establish a public trading market for its shares, while avoiding what it may deem to be adverse consequences
of undertaking a public offering itself. These include time delays, significant expense, loss of voting control and compliance
with various federal and state securities laws. In the alternative, a business combination may involve a company which may be
financially unstable or in its early stages of development or growth.



No
Target Business or Target Industry Identified



Our
efforts in identifying a prospective target business will not be limited to a particular industry and we may ultimately acquire
a business in any industry we deem appropriate. To date, we have not selected any target business on which to concentrate our
search for a business combination. While we intend to focus on target businesses in the United States, we are not limited to those
entities and may consummate a business combination with a target business outside of the United States. Accordingly, there is
no basis to evaluate the possible merits or risks of the target business or the particular industry in which we may ultimately
operate. To the extent we effect a business combination with a financially unstable company or an entity in its early stage of
development or growth, including entities without established records of sales or earnings, we may be affected by numerous risks
inherent in the business and operations of financially unstable and early stage or potential emerging growth companies. In addition,
to the extent that we effect a business combination with an entity in an industry characterized by a high level of risk, we may
be affected by the currently unascertainable risks of that industry. An extremely high level of risk frequently characterizes
many industries which experience rapid growth. In addition, although our management will endeavor to evaluate the risks inherent
in a particular industry or target business, there can be no assurance that we will properly ascertain or assess all significant
risk factors.



Sources
of Target Businesses



We
anticipate that target business candidates will be brought to our attention from various unaffiliated sources, including securities
broker-dealers, investment bankers, venture capitalists, bankers and other members of the financial community, who may present
solicited or unsolicited proposals. Our sole executive officer and his affiliates may also bring to our attention target business
candidates. While we do not presently anticipate engaging the services of professional firms that specialize in business acquisitions
on any formal basis, we may engage these firms in the future, in which event we may pay a finder's fee or other compensation.
We do not currently intend to pay our existing officer or our shareholders or any entity with which they are affiliated any finder's
fee or other compensation for services rendered to us prior to or in connection with the consummation of a business combination.



Selection
of a Target Business and Structuring of a Business Combination



Although
the fair market value of our target business must comply with statutory financial parameters, we will have virtually unrestricted
flexibility in identifying and selecting a prospective target business. In evaluating a prospective target business, we will consider,
among other factors, the following:



•	financial
condition and results of operation;

•	growth
potential;

•	experience
and skill of management and availability of additional

•	personnel;



15



















•	capital
requirements;

•	competitive
position;

•	stage
of development of the target business's products, processes or services;

•	degree
of current or potential market acceptance of the target business's products, processes or services;

•	proprietary
features and degree of intellectual property or other protection of the target business's products, processes or services;

•	regulatory
environment of the industry; and

•	costs associated with effecting the business combination.



These
criteria are not intended to be exhaustive. Any evaluation relating to the merits of a particular business combination will be
based, to the extent relevant, on the above factors as well as other considerations deemed relevant by our management in effecting
a business combination consistent with our business objective. In evaluating a prospective target business, we plan to conduct
an extensive due diligence review which will encompass, among other things, meetings with incumbent management and inspection
of facilities, as well as review of financial and other information which will be made available to us.



We
will endeavor to structure a business combination so as to achieve the most favorable tax treatment to us, the target business
and both companies' shareholders. There can be no assurances, however, that the Internal Revenue Service or appropriate state
tax authority will agree with our tax treatment of the business combination.



The
time and costs required to select and evaluate a target business and to structure and complete the business combination cannot
presently be ascertained with any degree of certainty. Any costs incurred with respect to the identification and evaluation of
a prospective target business with which a business combination is not ultimately completed will result in a loss to us and reduce
the amount of capital available to otherwise complete a business combination.



Fair
Market Value of Target Business



We
anticipate that the initial target business that we acquire will have a fair market value equal to at least 80% of our net assets
at the time of such acquisition. The fair market value of such business will be determined by our Board of Directors based upon
standards generally accepted by the financial community, such as actual and potential sales, earnings and cash flow and book value.
If our board is not able to independently determine that the target business has a sufficient fair market value, we may obtain
an opinion from an unaffiliated, independent investment banking firm which is a member of the National Association of Securities
Dealers, Inc. with respect to the satisfaction of such criteria. Since any opinion, if obtained, would merely state that fair
market value meets the 80% of net assets threshold, it is not anticipated that copies of such opinion would be distributed to
our shareholders, although copies will be provided to shareholders who request it.



Rights
of Dissenting Shareholders



A
business combination may require the approval of the holders of the outstanding shares of both participating companies. Shareholders
who vote against a business combination in certain instances may be entitled to dissent and to obtain payment for their shares.
The requirement of approval of our shareholders in any business combination may be limited to those transactions identified as
a merger or a consolidation. We may enter into a business combination that would not require the approval of our shareholders,
in which case our shareholders may not be entitled to dissent and obtain payment for their shares. Accordingly, unless the acquisition
requires shareholder approval, we will not provide shareholders with a disclosure document containing audited or unaudited financial
statements prior to such acquisition.



16

















Prior
to any business combination for which shareholder approval is required, we intend to provide our shareholders disclosure documentation
concerning the business opportunity or target company and its business. Such disclosure will in all likelihood be in the form
of a proxy statement which will be distributed to shareholders at least 20 days prior to any shareholder's meeting.



Competition



In
identifying, evaluating and selecting a target business, we expect to encounter intense competition from other entities having
a business objective similar to ours. Many of these entities are well established and have extensive experience identifying and
effecting business combinations directly or through affiliates. Many of these competitors possess greater technical, human and
other resources than us and our financial resources will be relatively limited when contrasted with those of many of these competitors.
While we believe there are numerous potential target businesses that we could acquire, our ability to compete in acquiring certain
sizable target businesses will be limited by our available financial resources. This inherent competitive limitation gives others
an advantage in pursuing the acquisition of a target business. Further, if we need to seek shareholder approval of a business
combination, it may delay the completion of a transaction.



Any
of these obligations may place us at a competitive disadvantage in successfully negotiating a business combination. Our management
believes, however, that our status as a public entity and potential access to the United States public equity markets may give
us a competitive advantage over privately-held entities having a similar business objective as us in acquiring a target business
with significant growth potential on favorable terms.



Liquidity
and Capital Resources



We
do not have sufficient funds to engage in significant operating activities. Our future operating activities are expected to be
funded by loans from a major shareholder. However, none of our shareholders has any obligation to provide such loans to us.



As
of September 30, 2006, we have accounts payable of $137,183, a payroll tax obligation of $287,215 and a shareholder advance of
$531,335. We do not have sufficient cash reserves to satisfy these amounts. We anticipate that we will need to borrow funds from
a major shareholder in order to satisfy these obligations. However, none of our shareholders has any obligation to provide such
loans to us.



17

















Critical
Accounting Policies



Our
audited financial statements have been prepared in accordance with accounting policies generally accepted in the United States.
The preparation of these financial statements requires us to make estimates and assumptions that affect the assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We believe
the following critical accounting policies require significant judgments, estimates and assumptions used in the preparation of
the audited consolidated financial statements.



We
issue stock in lieu of cash for certain transactions. The fair value of our common stock, which is based on comparable cash purchases
or the value of services, whichever is more readily determinable, is used to value the transaction.



Deferred
tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial
statements carrying amounts of existing assets and liabilities and their respective income tax bases. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized
as income in the period that included the enactment date. A valuation allowance is recorded for the portion of the deferred tax
asset that we do not believe is recoverable.



Material
Off-Balance Sheet Arrangements



We have
no material off-balance sheet arrangements.



Item
7A. Quantitative and Qualitative Disclosures About Market Risk



Not
applicable to smaller reporting companies.



18















Item
8. Financial Statements and Supplementary Data





ABSOLUTE
POTENTIAL, INC.

Financial
Statements

For
The Years Ended September 30, 2006 and 2005







Contents





|                                                                                           |     
|------------------------------------------------------------------------------------------ | ----
|                                                                                           | Page
|                                                                                           |     
|Report
    of Independent Registered Public Accounting Firm (Sassetti LLC)                 | F-1 
|                                                                                           |     
|Report
    of Independent Registered Public Accounting Firm (Pender Newkirk & Company LLP) | F-2 
|                                                                                           |     
|Financial
    Statements:                                                                  |     
|                                                                                           |     
|Balance
    Sheets as of September 30, 2006 and 2005                                       | F-3 
|                                                                                           |     
|Statements
    of Operations for the years ended September 30, 2006 and 2005               | F-4 
|                                                                                           |     
|Statement
    of Stockholders' Equity for the years ended September 30, 2006 and 2005      | F-5 
|                                                                                           |     
|Statements
    of Cash Flows for the years ended September 30, 2006 and 2005               | F-6 
|                                                                                           |     
|Notes
    to Financial Statements                                                          | F-7 
|                                                                                           |     







19

















Report
of Independent Registered Public Accounting Firm





Board of
Directors

Absolute
Potential, Inc.

Chicago,
Illinois





We have
audited the accompanying balance sheet of Absolute Potential, Inc. as of September 30, 2006, and the related statements of operations,
changes in stockholders' equity, and cash flows for the year ended September 30, 2006. These financial statements are the responsibility
of the management of Absolute Potential, Inc. Our responsibility is to express an opinion on these financial statements based
on our audit.



We conducted
our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. The company is not required at this time, to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.



In our opinion,
the financial statements referred to above present fairly, in all material respects, the financial position of Absolute Potential,
Inc. as of September 30, 2006 and the results of its operations and its cash flows for the year ended September 30, 2006 in conformity
with United States generally accepted accounting principles.



The accompanying
financial statements have been prepared assuming that the company will continue as a going concern. As discussed in Note 1, the
Company incurred a net loss of $323,243 during the year ended September 30, 2006 and has an accumulated deficit of $1,581,087
at September 30, 2006. These factors, among others, raise substantial doubt about the Company's ability to continue as a going
concern. Management's plans in regard to these matters are also described in Note 1. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.



/s/ Sassetti
LLC

Sassetti
LLC

Oak Park,
Illinois

December
16, 2011



F-1











Report
of Independent Registered Public Accounting Firm



Board of
Directors

Absolute
Potential, Inc.

Chicago,
Illinois





We have
audited the accompanying balance sheet of Absolute Potential, Inc. as of September 30, 2005 and the related statements of operations,
changes in stockholders' equity, and cash flows for the year ended September 30, 2005. These financial statements are the responsibility
of the management of Absolute Potential, Inc. Our responsibility is to express an opinion on these financial statements based
on our audit.



We conducted
our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. The company is not required at this time, to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.



In our opinion,
the financial statements referred to above present fairly, in all material respects, the financial position of Absolute Potential,
Inc. as of September 30, 2005 and the results of its operations and its cash flows for the year ended September 30, 2005 in conformity
with United States generally accepted accounting principles.



The accompanying
financial statements have been prepared assuming that the company will continue as a going concern. As discussed in Note 1, the
Company incurred a net loss of approximately $295,000 during the year ended September 30, 2005 and has an accumulated deficit
of $1,257,844 from inception to September 30, 2005. These factors, among others, raise substantial doubt about the Company's ability
to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The financial statements
do not include any adjustments that might result from the outcome of this uncertainty.



/s/

Pender Newkirk
& Company LLP

Certified
Public Accountants



Tampa, Florida

March 26,
2007





F-2















|Absolute Potential, Inc.                                                                               
|-------------------------------------------------------------------------------------------------------
|Balance Sheets                                                                                         
|                                                                                                       
|                                                                                                       
|                                                                                                       
|Assets                                                                                                 
|Current assets:                                                                                        
|Cash                                                                                                   
|                                                                                                       
|                                                                                                       
|Liabilities and Stockholders' Deficit                                                                  
|                                                                                                       
|Current liabilities                                                                                    
|Accounts payable                                                                                       
|Accrued payroll taxes                                                                                  
|Total Current Liabilities                                                                              
|                                                                                                       
|Convertible notes from shareholder                                                                     
|Total Liabilities                                                                                      
|                                                                                                       
|Commitments and Contingencies                                                                          
|                                                                                                       
|Stockholders' Deficit                                                                                  
|Preferred stock; $.001 par value, 50,000,000 shares authorized;                                        
|no shares issued or outsanding                                                                         
|Common stock; $.0001 par value, 150,000,000 shares authorized;                                         
|646,176 and 604,693 shares issued and outstanding as of   September 30 ,2006
    and 2005, respectively
|Additonal paid-in capital                                                                              
|Common stock payable                                                                                   
|Accumulated deficit                                                                                    
|Total stockholders' equity (deficit)                                                                   
|                                                                                                       
|TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                                            
|                                                                                                       
|The accompanying notes are an integral part of these financial statements                              
|                                                                                                       







F-3



















|Absolute Potential, Inc.                                                 
|-------------------------------------------------------------------------
|Statements of operations                                                 
|                                                                         
|                                                                         
|                                                                         
|                                                                         
|Operating revenues                                                       
|                                                                         
|Selling, general and administrative                                      
|                                                                         
|Net loss                                                                 
|                                                                         
|Net loss per share - basic and diluted                                   
|                                                                         
|Weighted average number of common shares                                 
|oustanding - basic and diluted                                           
|                                                                         
|The accompanying notes are an integral part of these financial statements
|                                                                         
|                                                                         





F-4













|Absolute Potential, Inc.                                                 
|-------------------------------------------------------------------------
|Statement of Changes in Stockholders' Equity (Deficit)                   
|Years Ended September 30, 2006 and 2005                                  
|                                                                         
|                                                                         
|                                                                         
|                                                                         
|                                                                         
|                                                                         
|                                                                         
|Balance, September 30, 2004                                              
|                                                                         
|Conversion of debt to equity                                             
|                                                                         
|Net loss                                                                 
|                                                                         
|Balance, September 30, 2005                                              
|                                                                         
|Conversion costs of debt to equity                                       
|                                                                         
|Net loss                                                                 
|                                                                         
|Balance, September 30, 2006                                              
|                                                                         
|The accompanying notes are an integral part of these financial statements
|                                                                         







F-5

















|Absolute Potential, Inc.                                                 
|-------------------------------------------------------------------------
|Statements of Cash Flows                                                 
|                                                                         
|                                                                         
|                                                                         
|                                                                         
|Cash Flows from Operating Activities:                                    
|Net loss                                                                 
|Adjustment to reconcile net loss to net cash                             
|used in operating activities                                             
|Conversion costs of debt to equity                                       
|Accounts payable                                                         
|Accrued expenses                                                         
|Net cash used in operating activities                                    
|                                                                         
|Cash Flows from Financing Activities:                                    
|Proceeds from Long-Term Advances from Related Party                      
|Net cash provided by financing activities                                
|                                                                         
|NET (DECREASE) INCREASE IN CASH & CASH EQUIVALENTS                       
|                                                                         
|CASH & CASH EQUIVALENTS, BEGINNING BALANCE                               
|                                                                         
|CASH & CASH EQUIVALENTS, ENDING BALANCE                                  
|                                                                         
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                        
|Interest paid                                                            
|Income taxes paid                                                        
|                                                                         
|The accompanying notes are an integral part of these financial statements
|                                                                         
|                                                                         





F-6















Absolute
Potential, Inc.

Notes
to Financial Statements

Years
Ended September 30, 2006 and 2005



Note
1. Organization and Basis of Presentation



Organization
and Line of Business



Absolute
Potential, Inc. (the "Company" or "Absolute") is a Florida corporation that was incorporated on August 12,
1993. On July 31, 2003 the Company changed its name to Absolute Waste Services, Inc.,. On June 15, 2005, the Company received
the written consent dated June 15, 2005, from the holders of approximately 90.9% of the outstanding voting stock approving an
amendment to its Certificate of Incorporation to change the Company's name to Absolute Potential, Inc. On October 24, 2005, the
Company amended its Certificate of Incorporation to reflect this name change. The Company has no current operations.



Merger
and Unwinding



On
July 2, 2003, through a wholly owned subsidiary ("Merger Sub"), the Company entered into an Agreement and Plan of Merger
with Absolute Industries LLC ("Industries"), which was approved by the Boards of Directors of each entity. On August
23, 2003, Industries merged with and into Merger Sub with Merger Sub being the surviving entity (the "Merger"). Prior
to the Merger, the Company had 10,000,000 common shares outstanding that were approved for issuance under the Plan of Reorganization,
which was confirmed by the United States Bankruptcy Court for the Middle District of Florida in August, 2002.



In
connection with the Merger, an additional 100,000 shares of new restricted stock were issued. In accordance with the Merger Agreement,
100 percent of the equity interests of Industries were exchanged for 27,000,000 of the Company's Class A Convertible Preferred
Stock. Each share of Class A Convertible Preferred Stock is convertible into one share of common stock and is entitled to three
votes.



In
June 2004, the Board of Directors of the Company and the majority of the Company's shareholders, by written consent, determined
that as a result of breaches of the Merger Agreement, it was equitable and appropriate to unwind the effects of the Mergers for
each party to return to the other party the consideration received in connection with the Merger, and to release each other from
all claims relating to the Merger Agreement and the Merger. In connection with this transaction, all of the issued and outstanding
stock of the Merger Sub was transferred to the former members of Industries.



In
August 2003, the board of directors amended the articles of incorporation to increase the authorized shares of voting common stock
to 150,000,000 at $0.0001 par value and to authorize 50,000,000 shares of preferred stock at $0.001 par value, with rights and
terms to be determined by the board from time to time.



Basis
of Presentation



The accompanying
financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America
(“US GAAP”).



Going
Concern



The
accompanying financial statements have been prepared on a going concern basis that contemplates the realization of assets and
liabilities. In the ordinary course of business, operating losses have been incurred each year since inception, resulting in an
accumulated deficit of $1,581,087 and negative working capital of $424,316 as of September 30, 2006, and total liabilities exceeding
total assets by $955,651 as of September 30, 2006. Currently, the Company has been provided working capital by a shareholder and
is seeking a merger with an operating company. However, these conditions raise substantial doubt about the Company's ability to
continue as a going concern. The financial statements of the Company do not include any adjustments relating to the recoverability
of liabilities that might be necessary should the Company be unable to continue as a going concern.



F-7

















Absolute
Potential, Inc.

Notes
to Financial Statements

Years
Ended September 30, 2006 and 2005







Recent
Accounting Pronouncements



Share Based
Payments



In
December 2004, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 123 (revised 2004),
Share-Based Payment. This Statement replaces FASB Statement No. 123 and supersedes APB Opinion No. 25. Statement No. 123(R) will
require the fair value of all stock option awards issued to employees to be recorded as an expense over the related vesting period.
The Statement also requires the recognition of compensation expense for the fair value of any unvested stock option awards outstanding
at the date of adoption. This review affects any reporting period beginning after December 15, 2005, and the adoption of this
statement did not have an effect on the Company's financial statements.



Accounting
Changes and Error Corrections

In
May 2005, the FASB issued Statement No. 154, “Accounting Changes and Error Corrections,” which provides guidance
on the accounting for and reporting of accounting changes and error corrections. It establishes, unless impracticable,
retrospective application as the required method for reporting a change in accounting principle in the absence of explicit
transition requirements specific to the newly adopted accounting principle. The reporting of a correction of an error by
restating previously issued financial statements is also addressed by this statement. This statement became effective, on a
prospective basis, for fiscal years beginning after December 15, 2005. The company is still evaluating the effects of
Statement No. 154 on the Company's financial statements.



Fair
Value Measurements

In
September 2006, FASB issued SFAS No. 157,“Fair Value Measurements,”whichestablishes a framework
for measuring fair value, and expands disclosures about fair value measurements required under the accounting pronouncements,
but does not change existing guidance as to whether or not an instrument is carried at fair value. Additionally, it establishes
a fair value hierarchy that prioritizes the information used to develop those assumptions. SFAS No. 157 is effective for financial
statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Earlier application
is encouraged, provided that the reporting entity has not yet issued financial statements for fiscal year, including financial
statements for an interim period within the fiscal year. The company is still evaluating the effects of SFAS No. 157 on the Company's
financial statements.



F-8

















Absolute
Potential, Inc.

Notes
to Financial Statements

Years
Ended September 30, 2006 and 2005





Business
Combinations - Revised



In
December 2007, the FASB issued SFAS No. 141 (Revised 2007), “Business Combinations.” SFAS No. 141 (Revised
2007) changes how a reporting enterprise accounts for the acquisition of a business. SFAS No. 141 (Revised 2007) requires
an acquiring entity to recognize all the assets acquired and liabilities assumed in a transaction at the acquisition-date fair
value, with limited exceptions, and applies to a wider range of transactions or events. SFAS No. 141 (Revised 2007) is effective
for fiscal years beginning on or after December 15, 2008 and early adoption and retrospective application is prohibited.
The company is still evaluating the effects of SFAS No. 141 (Revised 2007) on the Company's financial statements.



The Hierarchy
of GAAP



In
May 2008, FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted Accounting Principles.” SFAS 162 identifies
the sources of accounting principles and the framework for selecting the principles to be used in the preparation of financial
statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles (“GAAP”)
in the United States (the “GAAP hierarchy”). The company is still evaluating the effects of SFAS 162 on the Company's
financial statements.



Subsequent
Events



In
May 2009, the FASB issued SFAS No. 165, “Subsequent Events” (“ SFAS 165”) which was codified into ASC
855.  ASC 855 establishes principles and standards related to the accounting for and disclosure of events that occur after
the balance sheet date but before the financial statements are issued.  This position requires an entity to recognize, in
the financial statements, subsequent events that provide additional information regarding conditions that existed at the balance
sheet date.  In addition, ASC 855 requires companies to disclose the date through which the Company has evaluated subsequent
events to be the date the financial statements are issued. The company is still evaluating the effects of SFAS 165 on the Company's
financial statements.



FASB Accounting
Standards Codification, amends SFAS 162



On
July 1, 2009, the Company adopted Accounting Standards Update (“ASU”) No. 2009-01, “Topic 105 - Generally
Accepted Accounting Principles - amendments based on Statement of Financial Accounting Standards No. 168, “The FASB Accounting
Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles” (“ASU No. 2009-01”).  ASU
No. 2009-01 re-defines authoritative GAAP for nongovernmental entities to be only comprised of the FASB Accounting Standards CodificationTM
(“Codification”) and, for SEC registrants, guidance issued by the SEC.  The Codification is a reorganization
and compilation of all then-existing authoritative GAAP for nongovernmental entities, except for guidance issued by the SEC.  The
Codification is amended to effect non-SEC changes to authoritative GAAP.  Adoption of ASU No. 2009-01 will only change
the referencing convention of GAAP in Notes to the Financial Statements.



Revenue
Recognition – Multiple Deliverable Revenue Arrangements



In
October 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”)
No. 2009-13 on Topic 605, Revenue Recognition—Multiple Deliverable Revenue Arrangements—a consensus of the
FASB Emerging Issues Task Force (“ASU 2009-13”) . The objective of ASU 2009-13 is to address the accounting
for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than
as a combined unit. Vendors often provide multiple products or services to their customers. Those deliverables often are provided
at different points in time or over different time periods. ASU 2009-13 provides amendments to the criteria in Subtopic 605-25,
Multiple-Element Arrangements (“Subtopic 605-25”) for separating consideration in multiple-deliverable arrangements.
The amendments in ASU 2009-13 establish a selling price hierarchy for determining the selling price of a deliverable. The selling
price used for each deliverable will be based on vendor specific objective evidence if available, third-party evidence if vendor-specific
objective evidence is not available, or estimated selling price if neither vendor specific objective evidence nor third-party
evidence is available. The amendments in ASU 2009-13 also will replace the term fair value in the revenue allocation guidance
with selling price to clarify that the allocation of revenue is based on entity-specific assumptions rather than assumptions of
a marketplace participant. ASU 2009-13 is effective for fiscal years beginning on or after June 15, 2010. Early adoption
is permitted and can be applied prospectively or retrospectively. The company is still evaluating the effects of ASU 2009-13
on the Company's financial statements.



F-9



















Absolute
Potential, Inc.

Notes
to Financial Statements

Years
Ended September 30, 2006 and 2005





Fair Value
Measurements and Disclosure – Overall



On
December 15, 2009, the FASB issued ASU No. 2010-06 Fair Value Measurements and Disclosures Topic 820 “Improving Disclosures
about Fair Value Measurements”.  This ASU requires some new disclosures and clarifies some existing disclosure
requirements about fair value measurement as set forth in Codification Subtopic 820-10. The FASB’s objective is to improve
these disclosures and, thus, increase the transparency in financial reporting. The company is still evaluating the effects of
ASU No. 2010-06 on the Company's financial statements.



Compensation,
Stock Compensation



In
April 2010, the FASB issued ASU 2010-13, Compensation—Stock Compensation Topic 718, “Effect of Denominating the Exercise
Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades.” ASU
2010-13 provides amendments to Topic 718 to clarify that an employee share-based payment award with an exercise price denominated
in currency of a market in which a substantial porting of the entity’s equity securities trades should not be considered
to contain a condition that is not a market, performance, or service condition. Therefore, an entity would not classify such an
award as a liability if it otherwise qualifies as equity. The amendments in this Update are effective for fiscal years, and interim
periods within those fiscal years, beginning on or after December 15, 2010. The company is still evaluating the effects of ASU
2010-13 on the Company's financial statements.



Management
does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material
effect on the accompanying financial statements.



Note
2. Summary of Significant Accounting Policies



Use of
Estimates



The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements, and the reported amounts of expenses during the
reporting period. The significant estimates made in the preparation of the Company’s financial statements relate to the
determination of the valuation allowance for the deferred tax benefit and accrued payroll taxes. The Company’s actual results
could differ materially from these estimates upon which the carrying values were based.



F-10



















Absolute
Potential, Inc.

Notes
to Financial Statements

Years
Ended September 30, 2006 and 2005





Cash
and Cash Equivalents



Cash
and cash equivalents include cash on hand, cash in time deposits and all highly liquid investments with original maturities of
three months or less.



Fair
Value Measurements



For
certain of the Company’s financial instruments, including cash and cash equivalents, accounts payable and accrued liabilities,
the carrying amounts approximate their fair values due to their short maturities.



Income
Taxes



The
Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes.” ASC 740 requires a company to
use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary
differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences
between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance
when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not
be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of
enactment.



Under
ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would
be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step
process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination,
including the resolution of any related appeals or litigation based on the technical merits of that position. The second step
is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized
in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely
of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition
threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions
that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period
in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified
as income tax expense in the year incurred.  No significant penalties or interest relating to income taxes have been incurred
during the year ended September 30, 2006 and 2005. GAAP also provides guidance on de-recognition, classification, interest and
penalties, accounting in interim periods, disclosures and transition.



Basic
and Diluted Losses Per Share



Earnings
per share is calculated in accordance with the ASC Topic 260, “b Per Share.” Basic earnings per share is calculated
dividing income available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings
per share is based on the assumption that all dilutive convertible shares and stock options and warrants were converted or exercised.
Dilution is computed by applying the treasury stock method. Under this method, warrants and options are assumed to be exercised
at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase
common stock at the average market price during the period.Diluted EPS is not presented at September 30, 2006 and 2005
because it is anti-dilutive. As of September 30, 2006 and 2005, the number of potential dilutive shares related to the long term
advances from related party was 1,328,338 and 570,838, respectively.



F-11



















Absolute
Potential, Inc.

Notes
to Financial Statements

Years
Ended September 30, 2006 and 2005





Note
3. Related Party Transactions



During
the years ended September 30, 2006 and 2005, Augustine Fund, L.P., the major shareholder and funding source for the company, funded
the operations of the company in the amount of $303,000 and $270,952, respectively.



During
May 2005, Augustine Fund, L.P. converted its loan to the Company to common stock. At the time of the conversion, the loan amount
was $189,877. This loan was converted to 474,693 shares of common stock. This conversion was effected at a value of $0.4 per share.
The agreement allows for further conversion of any additional funds advanced at the same rate on a quarterly basis. The outstanding
balance of these advances are $531,335 and $228,335 at September 30, 2006 and 2005, respectively. These advances are unsecured,
non interest bearing and have no repayment terms. The advances are convertible into shares of common stock. As of September 30,
2006 and 2005, the number of potential shares related to the long term advances from related party was 1,328,338 and 570,838,
respectively.



Note
4. Income Taxes



Pursuant
to ASC Topic 740, “Income Taxes,” the Company is required to compute tax asset benefits
for net operating losses carried forward. The Company has net operating
loss carryforwards of approximately $17,218,000, at September 30, 2006. Annual utilization of the Company's net operating loss
carryforwards will be limited due to a change in ownership control of the company's common stock which took place in 2001. Under
federal tax law, this change in ownership (and any prospective changes) of the Company will significantly restrict future utilization
of the net operating loss carryforwards. The other net operating losses will expire in 2009 through 2026.



A
valuation allowance is required by ASC Topic 740, if, based on the weight of available evidence, it is more likely than not that
some or all of the deferred tax assets will not be realized. The need for the valuation allowance is evaluated periodically by
management. Based on available evidence, management concluded that valuation allowances of 100 percent for September 30, 2006
and 2005 were necessary. Significant components of the Company's net deferred tax assets are as follows:



The Company's
deferred income tax provisions include the following components:





|                                  |  |  | September 30,
|--------------------------------- |  |  | -------------
|                                  |  |  | 2006         
|                                  |  |  |              
|Tax benefit of net operating loss |  |  | 6,801,189    
|Less valuation allowance          |  |  | (6,801,189   
|                                  |  |  | -            





F-12



















Absolute
Potential, Inc.

Notes
to Financial Statements

Years
Ended September 30, 2006 and 2005









A
reconciliation of the income tax benefit computed at the federal statutory rate and the Company's effective rate are as
follows:





|                                          |  |  | September
                                            30, |   | 
|----------------------------------------- |  |  | --------------------------------------------------------- | - | 
|                                          |  |  | 2006                                                      |   | 
|                                          |  |  | $                                                         |   | 
|                                          |  |  |                                                           |   | 
|Federal statutory rate                    |  |  | (109,901                                                  | ) | 
|Adjustments, Primarily State income taxes |  |  | (17,778                                                   | ) | 
|Change in valation allowance for tax      |  |  |                                                           |   | 
|benefit of net operating loss             |  |  | 127,679                                                   |   | 
|                                          |  |  | —                                                         |   | 



The
Company's effective income tax rate is lower than what would be expected if the federal statutory rate were applied to income
from continuing operations primarily because of expenses deducted for financial reporting purposes that are not currently utilized
for tax purposes.



The
Company files tax returns in the U.S. federal jurisdiction and with the state of Illinois. Tax years from September 30, 2001 and
forward remain open as the Company has not filed those tax returns yet, although there are currently no ongoing tax examinations.



Note
5. Payroll Taxes



As
of September 30, 2006 and 2005, the Company is delinquent in prior period payroll taxes, penalties and interest in the amount
of $287,215 and $273,812, respectively. The $13,403 change from the 2005 accrued payroll taxes was due to interest expense. The
Company currently does not have an agreement with the Internal Revenue Service for payment of this liability.



Note
6. Shareholders’ Equity



On November
14, 2005, the Company effectuated a reverse stock split whereby one share of common stock will be issued for each 100 shares of
common stock outstanding as of the record date, resulting in the number of outstanding shares being reduced from 60,469,250 to
approximately 604,693. The 2005 financials have been restated to give effect to the reverse stock split.



On September
30, 2006, the company adjusted its common stock outstanding to account for the costs to convert debt to equity. This cost was
$4 and represents 41,483 shares. As of September 30, 2006, the Company had 275 record holders our common stock and 646,176 shares
of common stock outstanding.



Note
7. Subsequent Events



On October
17, 2011 the Commission sent a written communication requesting that the Company be deregistered. The Company has hired a third
party legal counsel to respond to the Commission’s request for deregistration hoping to continue as a registered filer.
On November 18, 2011 a preliminary hearing was held and the Company was granted a continuance until January 9, 2012 at which time
the judge will make a final ruling as to whether the Company’s stock will be deregistered or not.





F-13













Item
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure



As
previously reported on our Form 8-K filed on October 5, 2007, Pender Newkirk & Company LLP was terminated as our certifying
accountant on October 3, 2007. Pender Newkirk & Company LLP had served since April 2000 as the certifying accountant for our
financial statements. During the period Pender Newkirk & Company LLP was engaged by us, there were no disagreements with Pender
Newkirk & Company LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope
or procedure, which, if not resolved to the satisfaction of Pender Newkirk & Company LLP would have caused Pender Newkirk
& Company LLP to make reference to the subject matter of the disagreements in connection with any reports it would have issued.
Also, there were no “reportable events” as that term is defined in Item 304(a)(1)(v) of Regulation S-K.

On
or about October 3, 2007, we entered into an agreement with Sassetti LLC to assume the role of our new certifying accountant.
During the two most recent fiscal years and the subsequent interim periods prior to the engagement of Sassetti LLC, we did not
consult with Sassetti LLC with regard to:

(i)
the application of accounting principles to a specified transaction, either completed or proposed; or the type of audit opinion
that might be rendered on the Registrant’s financial statements; or

(ii)
any matter that was either the subject of a disagreement or a reportable event (as described in Item 304(a)(1)(v) of Regulation
S-K).

The
decision to change principal auditors and the engagement of the new principal auditor was recommended and approved by our sole
director.

Item
9A. Controls and Procedures



Evaluation
of Disclosure Controls and Procedures



We
maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that are designed to ensure
that information that would be required to be disclosed in Exchange Act reports is recorded, processed, summarized and reported
within the time period specified in the SEC’s rules and forms, and that such information is accumulated and communicated
to our management, including to our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions
regarding required disclosure.



The
Company’s Chief Executive Officer and Chief Financial Officer has evaluated the effectiveness of the Company’s
disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of September 30, 2006.
Based upon such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of September 30, 2006,
the Company’s disclosure controls and procedures were ineffective. This conclusion by the Company’s Chief Executive
Officer and Chief Financial Officer does not relate to reporting periods after September 30, 2006.



Management’s
Report on Internal Control Over Financial Reporting



Under
the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer,
we conducted an evaluation of the effectiveness of our internal control over financial reporting as of September 30, 2006, based
on the framework stated by the Committee of Sponsoring Organizations of the Treadway Commission. Furthermore, due to our financial
situation, we will be implementing further internal controls as we become operative so as to fully comply with the standards set
by the Committee of Sponsoring Organizations of the Treadway Commission.



21

















Our
management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is
defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control system was designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes,
in accordance with generally accepted accounting principles. Because of inherent limitations, a system of internal control over
financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods
are subject to the risk that controls may become inadequate due to change in conditions, or that the degree of compliance with
the policies or procedures may deteriorate.



Based
on its evaluation as of September 30, 2006, our management concluded that our internal controls over financial reporting were
ineffective as of September 30, 2006. A material weakness is a deficiency, or a combination of control deficiencies, in internal
control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s
annual or interim financial statements will not be prevented or detected on a timely basis.



The
material weakness relates to the following:



1.  Accounting
and Finance Personnel Weaknesses – Our current accounting staff is relatively small and we do not have the required
infrastructure of meeting the higher demands of being a U.S. public company.



In
order to mitigate these material weaknesses to the fullest extent possible, all financial reports are reviewed by an outside accounting
firm that is not our audit firm. All unexpected results are investigated. At any time, if it appears that any control can be implemented
to continue to mitigate such weaknesses, it will be immediately implemented.



This
annual report does not include an attestation report of the Company s registered public accounting firm regarding internal control
over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant
to temporary rules of the SEC that permit us to provide only management’s report in this Annual Report on Form 10-K.



Changes
in Internal Control Over Financial Reporting



No
change in the Company’s internal control over financial reporting occurred during the period covered by this report that
materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.



Item
9B. Other Information.



None.



22















PART
III



Item
10. Directors, Executive Officers and Corporate Governance



The
following table sets forth certain information regarding our sole director and executive officer as of September 30, 2006.





|Name                |  | Age |  | Position                             | 
|------------------- |  | --- |  | ------------------------------------ | 
|                    |  |     |  |                                      | 
|Thomas F. Duszynski |  | 51  |  | Chief Executive Officer,             | 
|                    |  |     |  | Chief Financial Officer and Director | 



Thomas
F. Duszynski has been a director of our company since August 2003, and our Chief Executive Officer and Chief Financial Officer
since June 2004. Mr. Duszynski was an officer and director of Absolute Potential, Inc. since the merger with Absolute Industries,
LLC. Mr. Duszynski has been a Principal of Augustine Fund, L.P., a private equity investment firm and a major shareholder, since
1997. Mr. Duszynski is not considered to be an "independent" director. Mr. Duszynski is also an executive officer and
director of Game Technologies, Inc., a public company.



Audit
Committee



We do not
have an Audit Committee because we have only one director. Our Board of Directors has determined that we do not have an "audit
committee financial expert", and we do not have sufficient resources to engage such a person to be a member of our Board
of Directors.



Section
16(a) Beneficial Ownership Reporting Compliance



Section
16(a) of the Exchange Act requires executive officers and directors, and persons who beneficially own more than 10% of any class
of our equity securities to file initial reports of ownership and reports of changes in ownership with the Commission. Executive
officers, directors and beneficial owners of more than 10% of any class of our equity securities are required by Commission regulations
to furnish us with copies of all Section 16(a) forms they file.



Based solely
upon a review of Forms 3 and 4 and amendments thereto furnished to us under Rule 16a-3(d), and certain written representations
from our sole executive officer and director, we are unaware of any required reports that were not timely filed, including compliance
with the requirements of the Sarbanes-Oxley Act.



Code
of Ethics



We
have adopted a code of ethics that applies to our Chief Executive Officer and our Chief Financial Officer/Principal Accounting
Officer.



Item
11. Executive Compensation



General



Our
sole executive officer did not receive any compensation during the years ended September 30, 2006 or 2005 and does not currently
receive any compensation.



23













Outstanding
Equity Awards at September 30, 2006



There
were no executive officers' unexercised options at September 30, 2006. No shares of common stock were acquired upon exercise of
options during the fiscal year ended September 30, 2006.



Employment
Contracts



Our
executive officer does not have an employment contract or similar arrangement with us.



Compensation
of Directors



Our
sole director did not receive any compensation during the years ended September 30, 2006, and he does not currently receive any
compensation.



Item
12. Security Ownership of Certain Beneficial Owners and Management



The
following table sets forth ownership information as of December 13, 2011 with respect to (i) our sole director and executive officer
and (ii) each person known by us to be a beneficial owner of more than 5% of our outstanding voting securities. Each share of
common stock is entitled to one vote. The address of each of the individuals or entities listed below is c/o us at 141 West Jackson
Boulevard, Suite 2182, Chicago, Illinois 60604.





|                                  |  | Amount and nature               |         | Percentage of outstanding
|--------------------------------- |  | ------------------------------- | ------- | -------------------------
|Name                              |  | of
    beneficial ownership (1) |         | voting
    securities (2)
|Thomas F. Duszynski               |  |                                 | 549,760 |                          
|Augustine Fund, L.P. (3)          |  |                                 | 499,760 |                          
|PAC Funding LLC (4)               |  |                                 | 50,000  |                          
|All executive officers and        |  |                                 |         |                          
|directors as a group (one person) |  |                                 | 549,760 |                          
|                                  |  |                                 |         |                          
|                                  |  |                                 | 646,176 |                          
|                                  |  |                                 |         |                          
|Public Float                      |  |                                 | 96,416  |                          
|                                  |  |                                 |         |                          





(1)
Beneficial ownership is determined in accordance with Rule 13d-3(a) of the Exchange Act, and generally includes voting or investment
power with respect to securities. Pursuant to the rules and regulations of the Commission, shares of common stock that an individual
or group has a right to acquire within 60 days pursuant to the exercise of options or warrants are deemed to be outstanding for
the purposes of computing the percentage ownership of such individual or group, but are not deemed to be outstanding for the purposes
of computing the percentage ownership of any other person shown in the table. Except as subject to community property laws, where
applicable, the person named above has sole voting and investment power with respect to all shares of our common stock shown as
beneficially owned by him.



(2) Applicable
percentage of ownership as of December 13, 2011 were calculated based on approximately 646,176 shares of common stock outstanding.



(3) Thomas
F. Duszynski is a principal of Augustine Fund, L.P. Mr. Duszynski’s indirect holdings consist of 549,760 shares of common
stock, of which 499,760 shares of common stock are held by Augustine fund, L.P. Thus for the purpose of this table the shares
beneficially owned by Mr. Duszynski include the 499,760 shares beneficially owned by Augustine Fund, L.P.



(4) Thomas
F. Duszynski is a principal of Augustine Fund, L.P., which is a manager of PAC Funding LLC.



24



















Securities
Authorized for Issuance Under Equity Compensation Plans



We
do not have any securities authorized for issuance under equity compensation plans.



Changes
in Control



We
do not have any arrangements that may result in a change in control.



Item
13. Certain Relationships and Related Transactions, and Director Independence



We
had no transactions with related persons during our fiscal year ended September 30, 2006. We do not have a parent company. We
have not had a promoter at any time during the past five fiscal years.



Because
Mr. Duszynski serves as our chief executive officer and chief financial officer, he is not considered to be an “independent”
director under applicable independence standards or independence standards for committees set forth in The NASDAQ Stock Market’s
corporate governance standards. Mr. Duszynski is a principal of Augustine Fund, L.P.



Item
14. Principal Accountant Fees and Services



Our
independent registered public accounting firm is Sassetti LLC , which provided audit services with respect to our financial statements
for the year ended September 30, 2006 and the prior three quarters. Pender Newkirk & Company LLP audited our financial statements
for the year ended September 30, 2005, which was completed on March 26, 2007, as well as the prior three fiscal years.



Audit
Fees



Fees
for audit services totaled $75,000 and $38,942 for the fiscal years ended September 30, 2006 and 2005, respectively, including
fees associated with the annual audit, the reviews of our quarterly reports on Form 10-Q, and services in connection with Commission
filings.



Audit-Related
Fees



Fees
for audit related services were $0 for fiscal 2006 and fiscal 2005.



Tax Fees



Fees
for tax services, including tax compliance and tax advice, totaled $0 in fiscal 2006 and fiscal 2005.



All Other
Fees



Fees
for all other services not included above were $0 for fiscal 2006 and fiscal 2005.



Effective
May 6, 2003, the Commission adopted rules that require that before our independent registered public accounting firm is engaged
by us or our subsidiaries to render any auditing or permitted non-audit related service, the engagement be:



|• |  | approved by our audit committee;
or
|- |  | -----------------------------------

|• |  | entered into pursuant to pre-approval
policies and procedures established by the audit committee, provided the policies and procedures are detailed as to the particular
service, the audit committee is informed of each service, and such policies and procedures do not include delegation of the audit
committee's responsibilities to management.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



26



















The
audit committee (or, in our case, the Board of Directors) requires advance approval of all audit, audit-related, tax, and other
services performed by the independent auditor. Unless the specific service has been previously pre-approved with respect to that
year, the audit committee (or, in lieu thereof, the Board of Directors) must approve the permitted service before the independent
auditor is engaged to perform it. Our sole director has approved the performance of services by the independent auditors. For
fiscal 2005, the sole director approved 100% of the fees incurred.



Our
sole director has considered the nature and amount of the fees billed by our independent registered public accounting firm, and
believes that the provision of the services for activities unrelated to the audit is compatible with maintaining the independence
of Sassetti LLC.



PART
IV



Item
15. Exhibits and Financial Statement Schedules



(a)(1)
Financial Statement Schedules



Schedules
not included herein are omitted because they are inapplicable or not required or because the required information is given in
the financial statements and notes thereto.



(a)(2)
Exhibits



The
exhibits required by this item and included in this report or incorporated herein by reference are as follows:



Exhibit
2 - Plan of Reorganization dated February 25, 2002 (incorporated by reference to Exhibit 2 to Form 8-K filed September 16, 2002)



Exhibit
10.1 - Mutual Settlement Agreement dated June 3, 2004 by and among Absolute Waste Services, Inc., Absolute Waste Acquisitions,
Inc., PAC Funding, LLC and the former holders of membership interests of Absolute Industries, LLC (incorporated by reference to
Exhibit A to Schedule 14C filed July 14, 2004)



Exhibit
10.2 - Conversion Agreement dated May 19, 2005 by and between Absolute Waste Services, Inc. and Augustine Fund, L.P. (incorporated
by reference to Exhibit 10.2 to Form 10-KSB filed May 20, 2005)



Exhibit
14 - Form of Code of Ethics (incorporated by reference to Exhibit 10.2 to Form 10-KSB filed May 20, 2005)

Exhibit
31.1 - Certification of CEO/CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002



Exhibit
32.1 - Certification of CEO/CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



27















SIGNATURES



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





|ABSOLUTE POTENTIAL, INC.                    |                        
|------------------------------------------- | -----------------------
|(Registrant)                                |                        
|                                            |                        
|By: /s/ Thomas F. Duszynski                 | Date: December 16, 2011
|Thomas F. Duszynski                         |                        
|Chief Executive Officer,                    |                        
|Chief Financial Officer and Director        |                        
|(Principal Executive Officer and            |                        
|Principal Financial and Accounting Officer) |                        









28











EXHIBIT
INDEX

|Exhibit | Description                                                                                                                                                                                                                                                                                                       
|------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                                                   
|2       | Plan
    of Reorganization dated February 25, 2002 (incorporated by reference to Exhibit 2 to Form 8-K filed September 16, 2002)                                                                                                                                                                                  
|        |                                                                                                                                                                                                                                                                                                                   
|10.1    | Mutual
    Settlement Agreement dated June 3, 2004 by and among Absolute Waste Services, Inc., Absolute Waste Acquisitions, Inc., PAC
    Funding, LLC and the former holders of membership interests of Absolute Industries, LLC (incorporated by reference to Exhibit
    A to Schedule 14C filed July 14, 2004)
|        |                                                                                                                                                                                                                                                                                                                   
|10.2    | Conversion
Agreement dated May 19, 2005 by and between Absolute Waste Services, Inc. and Augustine Fund, L.P. (incorporated by reference
to Exhibit 10.2 to Form 10-KSB filed May 20, 2005)                                                                                                                       
|        |                                                                                                                                                                                                                                                                                                                   
|14      | Form
    of Code of Ethics (incorporated by reference to Exhibit 10.2 to Form 10-KSB filed May 20, 2005)                                                                                                                                                                                                          
|        |                                                                                                                                                                                                                                                                                                                   
|31.1    | Certification
    of CEO/CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                            
|        |                                                                                                                                                                                                                                                                                                                   
|32.1    | Certification
    of CEO/CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                            
|        |                                                                                                                                                                                                                                                                                                                   
|       
|        |                                                                                                                                                                                                                                                                                                                   
|29