----

----

| x | ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------|

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

| Delaware                                                       | 26-1365024                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

| Issuer’s telephone number: | (310) 492-9898 |
|----------------------------------|----------------|
| Issuer’s facsimile number: | (310) 492-9926 |

----

|   | Large Accelerated Filer o | Accelerated Filer o         |   |
|--------|---------------------------|-----------------------------|--------|
|   | Non-accelerated filer o   | Smaller reporting company x |   |

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

----

| ITEM        |                                                                                                               | PAGE NO. |
|-------------|--------------------------------------------------------------------------------------------------------------------|----------|
|        |                                                                                                               |     |
| PART I      |                                                                                                               |     |
| Item 1.     | Business.                                                                                                          |     |
| Item 1A.    | Risk Factors.                                                                                                      |     |
| Item 1B.    | Unresolved Staff Comments.                                                                                         |     |
| Item 2.     | Properties.                                                                                                        |     |
| Item 3.     | Legal Proceedings.                                                                                                 |     |
| Item 4.     | Submission of Matters to a Vote of Security Holders.                                                               |     |
|        |                                                                                                               |     |
| PART II     |                                                                                                               |     |
| Item 5.     | Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchase of Equity Securities. |     |
| Item 6.     | Selected Financial Data.                                                                                           |     |
| Item 7.     | Management’s Discussion and Analysis of Financial Condition and Results of Operations.                       |     |
| Item 7A.    | Quantitative and Qualitative Disclosure About Market Risk.                                                         |     |
| Item 8.     | Financial Statements and Supplementary Data.                                                                       |     |
| Item 9.     | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.                              |     |
| Item 9A(T). | Controls and Procedures.                                                                                           |     |
| Item 9B.    | Other Information.                                                                                                 |     |
|        |                                                                                                               |     |
| PART III    |                                                                                                               |     |
| Item 10.    | Directors, Executive Officers and Corporate Governance.                                                            |     |
| Item 11.    | Executive Compensation.                                                                                            |     |
| Item 12.    | Security Ownership and Certain Beneficial Owners And Management’s and Related Stockholder Matters.           |     |
| Item 13.    | Certain Relationships and Related Transactions, and Director Independence.                                         |     |
| Item 14.    | Principal Accountant Fees and Services.                                                                            |     |
|        |                                                                                                               |     |
| PART IV     |                                                                                                               |     |
| Item 15.    | Exhibits and Financial Statement Schedules.                                                                        |     |
|        |                                                                                                               |     |
| SIGNATURES  |                                                                                                               |     |

----

| (a) | Business Development |
|-----|----------------------|

AFH Holding III, Inc. (the “Registrant”) was incorporated on April 16, 2007 in the State of Delaware for the purpose of conducting a public distribution of securities (the Proposed Distribution) and then effecting a merger, acquisition or other business combinationtransaction (Business Combination) with an unidentified privately-held company (a Target). We currently have no definitive agreements or understanding with any prospective business combination candidates and have not targeted any business for investigation and evaluation nor are there any assurances that we will find a suitable business with which to combine. The implementation of our business objectives is wholly contingent upon a business combination and/or the successful sale of securities in the Registrant.

|  (b) | Business of Issuer |
|-----------|--------------------|

----

|   | (a) | Potential for growth, indicated by new technology, anticipated market expansion or new products; |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (b) | Competitive position as compared to other firms of similar size and experience within the industry segment as well as within the industry as a whole; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Strength and diversity of management, either in place or scheduled for recruitment; |
|--------|-----|-------------------------------------------------------------------------------------|

|   | (d) | Capital requirements and anticipated availability of required funds, to be provided by the Registrant or from operations, through the sale of additional securities, through joint ventures or similar arrangements or from other sources; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e)    | The cost of participation by the Registrant as compared to the perceived tangible and intangible values and potentials; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                    |
|   | (f)    | The extent to which the business opportunity can be advanced;                                                           |

|   | (g)    | The accessibility of required management expertise, personnel, raw materials, services, professional assistance and other required items; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                          |
|   | (h)    | Other relevant factors.                                                                                                                       |

----

| (c) | Reports to security holders. |
|-----|------------------------------|

|   | 1) | The Registrant files reports with the SEC. The Registrant is a reporting company and complies with the requirements of the Exchange Act. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | The Registrant delivers annual and quarterly reports to it security holders. |
|--------|----|-----------------------------------------------------------------------------------|

|   | 3) | The public may read and copy any materials the Registrant files with the SEC at the SEC’s Public Reference Room at 450 Fifth Street, N.W., Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Additionally, the SEC maintainsan Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, which can be found at http://www.sec.gov. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | ● | Election of the board of directors; |
|--------|---------|-------------------------------------|

|   | ● | Removal of any directors; |
|--------|---------|---------------------------|

----

|   | ● | Amendment of our certificate of incorporation or bylaws; and |
|--------|---------|--------------------------------------------------------------|

|   | ● | Adoption of measures that could delay or prevent a change in control or impede a merger, takeover or other business combination. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------|

None. 

----

----

ITEM 6.  SELECTED FINANCIAL DATA 

----

----

----

| Operating activities |   | $       | (1,750) |   |
|----------------------|--------|---------|---------|--------|
| Investing activities |   |  $ |  0 |   |
| Financing activities |   | $       | 1,750   |   |
|                 |   |    |    |   |
| Net effect on cash   |   | $       | 0       |   |

ITEM 8.  FINANCIAL STATEMENTS 

----

| FINANCIAL REPORTS |
|-------------------|
| AT                |
| DECEMBER 31, 2009 |

----

| Report of Independent Registered Public Accounting Firm                                                                                                       | F-1                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|
|                                                                                                                                                          |                        |
| Balance Sheets at December 31, 2009 and 2008                                                                                                                  | F-2                         |
|                                                                                                                                                          |                        |
| Statements of Changes in Stockholders’ Deficit for the Period from Date of Inception (April 16, 2007) through December 31, 2009                         | F-3                         |
|                                                                                                                                                          |                        |
| Statements of Operations for the Years Ended December 31, 2009 and 2008, and for the Period from Date of Inception (April 16, 2007) through December 31, 2009 | F-4                         |
|                                                                                                                                                          |                        |
| Statements of Cash Flows for the Years Ended December 31, 2009 and 2008, and for the Period from Date of Inception (April 16, 2007) through December 31, 2009 | F-5                         |
|                                                                                                                                                          |                        |
| Notes to Financial Statements                                                                                                                                 | F-6 – F-8   |

----

----

| AFH HOLDING III, INC.                                                                                                                                                                                    |   |   |    |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| (A DEVELOPMENT STAGE COMPANY)                                                                                                                                                                            |   |   |    |   |   |   |
| (A DELAWARE CORPORATION)                                                                                                                                                                                 |   |   |    |   |   |   |
| Beverly Hills, CA                                                                                                                                                                                        |   |   |    |   |   |   |
|                                                                                                                                                                                                     |   |   |    |   |   |   |
|                                                                                                                                                                                                     |   |   |    |   |   |   |
| BALANCE SHEETS                                                                                                                                                                                           |   |   |    |   |   |   |
|                                                                                                                                                                                                     |   |   |    |   |   |   |
| December 31,                                                                                                                                                                                             |   | 2009   |    |   | 2008   |   |
|                                                                                                                                                                                                     |   |   |    |   |   |   |
| ASSETS                                                                                                                                                                                                   |   |   |    |   |   |   |
| Due from Parent                                                                                                                                                                                          |   | $      | 710,000 |   |   | $      | 710,000 |   |
|                                                                                                                                                                                                     |   |   |    |   |   |   |   |   |
|                                                                                                                                                                                                     |   |   |    |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                     |   |   |    |   |   |   |   |   |
|                                                                                                                                                                                                     |   |   |    |   |   |   |   |   |
| Liabilities                                                                                                                                                                                              |   |   |    |   |   |   |   |   |
| Accrued Expenses                                                                                                                                                                                         |   | $      | 10,953  |   |   | $      | 1,800 |   |
| Due to Parent                                                                                                                                                                                            |   |   | 1,750   |   |   |   | 1,750 |   |
|                                                                                                                                                                                                     |   |   |    |   |   |   |   |   |
| Total Liabilities                                                                                                                                                                                        |   |   | 12,703  |   |   |   | 3,550 |   |
|                                                                                                                                                                                                     |   |   |    |   |   |   |   |   |
| Stockholders' Equity                                                                                                                                                                                     |   |   |    |   |   |   |   |   |
| Preferred Stock:  $.001 Par; 20,000,000 Shares Authorized,                                                                                                                                     |   |   |    |   |   |   |   |   |
|                             -0- Issued and Outstanding       |   |   | — |   |   |   | — |   |
| Common Stock:  $.001 Par; 100,000,000 Shares Authorized;                                                                                                                                       |   |   |    |   |   |   |   |   |
|                             5,355,000 Issued and Outstanding |   |   | 5,355   |   |   |   | 5,355 |   |
| Additional Paid-In-Capital                                                                                                                                                                               |   |   | 711,666 |   |   |   | 711,666 |   |
| Deficit Accumulated During Development Stage                                                                                                                                                             |   |   | (19,724 | )      |   |   | (10,571 | ) |
|                                                                                                                                                                                                     |   |   |    |   |   |   |   |   |
| Total Stockholders' Equity                                                                                                                                                                               |   |   | 697,297 |   |   |   | 706,450 |   |
|                                                                                                                                                                                                     |   |   |    |   |   |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                                                                                                               |   | $      | 710,000 |   |   | $      | 710,000 |   |

----

| AFH HOLDING III, INC.                                             |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |
|-------------------------------------------------------------------|--------|--------------|-----------|--------|------------|--------|---------|---------|--------|--------|-------------|--------|--------|---------------|---------|
| (A DEVELOPMENT STAGE COMPANY)                                     |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |
| (A DELAWARE CORPORATION)                                          |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |
| Beverly Hills, CA                                                 |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |
|                                                              |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |
|                                                              |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE PERIOD FROM |   |         |      |   |       |   |    |
| DATE OF INCEPTION (APRIL 16, 2007) THROUGH DECEMBER 31, 2009      |   |         |      |   |       |   |    |    |   |   |
|                                                              |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |
|                                                              |   |         |      |   |       |   |    |    |   |   | Deficit     |   |   |          |    |
|                                                              |   |         |      |   |       |   |    |    |   |   | Accumulated |   |   |          |    |
|                                                              |   | Common Stock |      |   | Additional |   |    | During  |   |   | Total       |   |
|                                                              |   | Number       |      |   |       |   |    | Paid-In |   |   | Development |   |   | Stockholders' |    |
|                                                              |   | of Shares    |      |   | Value      |   |    | Capital |   |   | Stage       |   |   | Equity        |    |
|                                                              |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |
| Balance - April 16, 2007                                          |   |         | —   |   |       | $      | — |    |   | $      | —     |   |   | $             | — |   |   | $ | — |   |
|                                                              |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |   |   |   |   |   |
| Common Stock Issued in Lieu of Services                           |   |         | 5,000,000 |   |       |   | 5,000   |    |   |   | —     |   |   |          | — |   |   |   | 5,000 |   |
|                                                              |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |   |   |   |   |   |
| Contributed Capital for Services                                  |   |         | —   |   |       |   | — |    |   |   | 2,021       |   |   |          | — |   |   |   | 2,021 |   |
|                                                              |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |   |   |   |   |   |
| Net Loss                                                          |   |         | —   |   |       |   | — |    |   |   | —     |   |   |          | (7,021  | ) |   |   | (7,021 | ) |
|                                                              |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |   |   |   |   |   |
| Balance - December 31, 2007                                       |   |         | 5,000,000 |   |       |   | 5,000   |    |   |   | 2,021       |   |   |          | (7,021  | ) |   |   | — |   |
|                                                              |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |   |   |   |   |   |
| Common Stock Issued for Cash                                      |   |         | 355,000   |   |       |   | 355     |    |   |   | 709,645     |   |   |          | — |   |   |   | 710,000 |   |
|                                                              |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |   |   |   |   |   |
| Net Loss                                                          |   |         | —   |   |       |   | — |    |   |   | —     |   |   |          | (3,550  | ) |   |   | (3,550 | ) |
|                                                              |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |   |   |   |   |   |
| Balance - December 31, 2008                                       |   |         | 5,355,000 |   |       |   | 5,355   |    |   |   | 711,666     |   |   |          | (10,571 | ) |   |   | 706,450 |   |
|                                                              |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |   |   |   |   |   |
| Net Loss                                                          |   |         | —   |   |       |   | — |    |   |   | —     |   |   |          | (9,153  | ) |   |   | (9,153 | ) |
|                                                              |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |   |   |   |   |   |
| Balance - December 31, 2009                                       |   |         | 5,355,000 |   |       | $      | 5,355   |    |   | $      | 711,666     |   |   | $             | (19,724 | ) |   | $ | 697,297 |   |

----

| AFH HOLDING III, INC.                      |   |                |      |   |             |   |      |              |   |
|--------------------------------------------|--------|---------------------|-----------|--------|------------------|--------|-----------|-------------------|--------|
| (A DEVELOPMENT STAGE COMPANY)              |   |                |      |   |             |   |      |              |   |
| (A DELAWARE CORPORATION)                   |   |                |      |   |             |   |      |              |   |
| Beverly Hills, CA                          |   |                |      |   |             |   |      |              |   |
|                                       |   |                |      |   |             |   |      |              |   |
|                                       |   |                |      |   |             |   |      |              |   |
| STATEMENTS OF OPERATIONS                   |   |                |      |   |             |   |      |              |   |
|                                       |   |                |      |   |             |   |      |              |   |
|                                       |   |                |      |   |             |   |      | Period From       |   |
|                                       |   |                |      |   |             |   |      | Date of Inception |   |
|                                       |   | For the Years Ended |      |   | (April 16, 2007) |   |
|                                       |   | December 31,        |      |   | Through          |   |
|                                       |   | 2009                |      |   | 2008             |   |      | December 31, 2009 |   |
|                                       |   |                |      |   |             |   |      |              |   |
|                                       |   |                |      |   |             |   |      |              |   |
| Revenues                                   |   | $                   | —   |   |             | $      | —   |              |   | $ | — |   |
|                                       |   |                |      |   |             |   |      |              |   |   |   |   |
| Expenses                                   |   |                |      |   |             |   |      |              |   |   |   |   |
| General and Administrative                 |   |                | 5,138     |   |             |   | 3,550     |              |   |   | 15,709 |   |
| Interest                                   |   |                | 15        |   |             |   |      |              |   |   | 15 |   |
|                                       |   |                |      |   |             |   |      |              |   |   |   |   |
| Total Expenses                             |   |                | 5,153     |   |             |   | 3,550     |              |   |   | 15,724 |   |
|                                       |   |                |      |   |             |   |      |              |   |   |   |   |
| Net Loss for the Period Before Taxes       |   |                | (5,153    | )      |             |   | (3,550    | )                 |   |   | (15,724 | ) |
|                                       |   |                |      |   |             |   |      |              |   |   |   |   |
| Franchise Tax                              |   |                | 4,000     |   |             |   | —   |              |   |   | 4,000 |   |
|                                       |   |                |      |   |             |   |      |              |   |   |   |   |
| Net Loss for the Period After Taxes        |   | $                   | (9,153    | )      |             | $      | (3,550    | )                 |   | $ | (19,724 | ) |
|                                       |   |                |      |   |             |   |      |              |   |   |   |   |
|                                       |   |                |      |   |             |   |      |              |   |   |   |   |
| Loss per Share - Basic and Diluted         |   | $                   | (0.00     | )      |             | $      | (0.00     | )                 |   | $ | (0.00 | ) |
|                                       |   |                |      |   |             |   |      |              |   |   |   |   |
| Weighted Average Common Shares Outstanding |   |                | 5,355,000 |   |             |   | 5,302,141 |              |   |   | 5,242,340 |   |

----

| AFH HOLDING III, INC.                           |   |                |    |   |             |   |    |              |   |
|-------------------------------------------------|--------|---------------------|---------|--------|------------------|--------|---------|-------------------|--------|
| (A DEVELOPMENT STAGE COMPANY)                   |   |                |    |   |             |   |    |              |   |
| (A DELAWARE CORPORATION)                        |   |                |    |   |             |   |    |              |   |
| Beverly Hills, CA                               |   |                |    |   |             |   |    |              |   |
|                                            |   |                |    |   |             |   |    |              |   |
|                                            |   |                |    |   |             |   |    |              |   |
| STATEMENTS OF CASH FLOWS                        |   |                |    |   |             |   |    |              |   |
|                                            |   |                |    |   |             |   |    |              |   |
|                                            |   |                |    |   |             |   |    | Period From       |   |
|                                            |   |                |    |   |             |   |    | Date of Inception |   |
|                                            |   | For the Years Ended |    |   | (April 16, 2007) |   |
|                                            |   | December 31,        |    |   | Through          |   |
|                                            |   | 2009                |    |   | 2008             |   |    | December 31, 2009 |   |
|                                            |   |                |    |   |             |   |    |              |   |
| Cash Flows from Operating Activities            |   |                |    |   |             |   |    |              |   |
|                                            |   |                |    |   |             |   |    |              |   |
| Net Loss                                        |   | $                   | (9,153  | )      |             | $      | (3,550  | )                 |   | $ | (19,724 | ) |
|                                            |   |                |    |   |             |   |    |              |   |   |   |   |
| Non Cash Adjustments:                           |   |                |    |   |             |   |    |              |   |   |   |   |
| Common Stock Issued in Lieu of Services         |   |                | — |   |             |   | — |              |   |   | 5,000 |   |
| Contributed Capital for Services                |   |                | — |   |             |   | — |              |   |   | 2,021 |   |
|                                            |   |                |    |   |             |   |    |              |   |   |   |   |
| Changes in Assets and Liabilities:              |   |                |    |   |             |   |    |              |   |   |   |   |
| Accrued Expenses                                |   |                | 9,153   |   |             |   | 1,800   |              |   |   | 10,953 |   |
|                                            |   |                |    |   |             |   |    |              |   |   |   |   |
| Net Cash Flows from Operating Activities        |   |                | — |   |             |   | (1,750  | )                 |   |   | (1,750 | ) |
|                                            |   |                |    |   |             |   |    |              |   |   |   |   |
| Net Cash Flows from Investing Activities        |   |                | — |   |             |   | — |              |   |   | — |   |
|                                            |   |                |    |   |             |   |    |              |   |   |   |   |
| Cash Flows from Financing Activities            |   |                |    |   |             |   |    |              |   |   |   |   |
| Cash Advance by Parent                          |   |                | — |   |             |   | 1,750   |              |   |   | 1,750 |   |
|                                            |   |                |    |   |             |   |    |              |   |   |   |   |
| Net Change in Cash and Cash Equivalents         |   |                | — |   |             |   | — |              |   |   | — |   |
|                                            |   |                |    |   |             |   |    |              |   |   |   |   |
| Cash and Cash Equivalents - Beginning of Period |   |                | — |   |             |   | — |              |   |   | — |   |
|                                            |   |                |    |   |             |   |    |              |   |   |   |   |
| Cash and Cash Equivalents - End of Period       |   | $                   | — |   |             | $      | — |              |   | $ | — |   |
|                                            |   |                |    |   |             |   |    |              |   |   |   |   |
| SUPPLEMENTAL NON-CASH DISCLOSURES               |   |                |    |   |             |   |    |              |   |   |   |   |
| Common Stock Proceeds Held by Parent            |   | $                   | — |   |             | $      | 710,000 |              |   | $ | 710,000 |   |
|                                            |   |                |    |   |             |   |    |              |   |   |   |   |
|                                            |   |                |    |   |             |   |    |              |   |   |   |   |
| Cash Paid During the Period for:                |   |                |    |   |             |   |    |              |   |   |   |   |
| Interest                                        |   | $                   | — |   |             | $      | — |              |   | $ | — |   |
| Franchise Tax                                   |   | $                   | — |   |             | $      | — |              |   | $ | — |   |

----

| Note A -   | The Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 | AFH Holding III, Inc., a development stage company (the “Company”), was incorporated under the laws of the State of Delaware on April 16, 2007.  The Company is 100% owned by AFH Holding & Advisory, LLC (the “Parent”).  The financial statements presented represent only thosetransactions of AFH Holding III, Inc.  The Company is looking to acquire an existing company or acquire the technology to begin operations. |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                 | As a blank check company, the Company’s business is to pursue a business combination through acquisition, or merger with, an existing company. As of the date of the financial statements, the Company is not conducting negotiations with any target business. No assurances can be given that the Company will be successfulin locating or negotiating with any target company.                                                                                                 |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                 | Since inception, the Company has been engaged in organizational efforts.                                                                                                                                                                                                                                                                                                                                                                                                                |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Note B -             | Summary of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                 | Method of Accounting                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                 | The Company maintains its books and prepares its financial statements on the accrual basis of accounting.                                                                                                                                                                                                                                                                                                                                                                               |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                 | Development Stage                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                 | The Company has operated as a development stage enterprise since its inception by devoting substantially all of its efforts to financial planning, raising capital, research and development, and developing markets for its services.  The Company prepares its financial statements in accordance with the requirementsof FASB ASC 915 (prior authoritative literature, FAS No. 7 “Accounting and Reporting by Development Stage Enterprises”).                 |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                 | Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                 | Cash and cash equivalents include time deposits, certificates of deposit, and all highly liquid debt instruments with original maturities of three months or less.  The Company maintains cash and cash equivalents at financial institutions, which periodically may exceed federally insured amounts.                                                                                                                                                                       |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                 | - continued -                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

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| Note B -   | Summary of Significant Accounting Policies – continued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 | Loss Per Common Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                 | Loss per common share is computed in accordance with FASB ASC 260-10 (prior authoritative literature, FAS No. 128 “Earnings Per Share”) by dividing income (loss) available to common stockholders by weighted average number of common shares outstanding for each period.  The calculation of diluted netloss per share gives effect to common stock equivalents, however, potential common shares are excluded if their effect is anti-dilutive.                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                 | Use of Estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 | The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reportedamounts of revenues and expenses during the reporting period.  Actual results can differ from those estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                 | Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                 | The Company accounts for income taxes in accordance with FASB ASC 740 (prior authoritative literature, FAS No. 109, “Accounting for Income Taxes”), using the asset and liability approach, which requires recognition of deferred tax liabilities and assets for the expected future tax consequences of temporarydifferences between the carrying amounts and the tax basis of such assets and liabilities.  This method utilizes enacted statutory tax rates in effect for the year in which the temporary differences are expected to reverse and gives immediate effect to changes in income tax rates upon enactment.  Deferred tax assets are recognized, net of any valuation allowance, for temporary differences and net operating loss and tax credit carry forwards.  Deferred income tax expense representsthe change in net deferred assets and liability balances. |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                 | Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                 | The Company’s financial instruments consist of cash and due to parent. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.  The fair value of these financial instruments approximatestheir carrying value, unless otherwise noted.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                 | Recent Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                 | The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position, or cash flow.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                 | Reclassifications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                 | Certain amounts in the prior year financial statements have been reclassified to conform with the current year presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

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| Note C -        | Equity Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      | Holders of shares of common stock shall be entitled to cast one vote for each common share held at all stockholder’s meetings for all purposes, including the election of directors.  The common stock does not have cumulative voting rights.                                                                                                                                                                                                                                                                    |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                      | The preferred stock of the Company shall be issued by the Board of Directors of the Company in one or more classes or one or more series within any class and such classes or series shall have such voting powers, full or limited, or no voting powers, and such designations, preferences, limitations or restrictions as theBoard of Directors of the Company may determine, from time to time.                                                                                                                               |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                      | No holder of shares of stock of any class shall be entitled as a matter of right to subscribe for or purchase or receive any part of any new or additional issue of shares of stock of any class, or of securities convertible into shares of stock or any class, whether now hereafter authorized or whether issued for money,for consideration other than money, or by way of dividend.                                                                                                                                         |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Note D -        | Going Concern                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                      | The Company’s financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has reported recurring losses from operations.  As a result, there is an accumulateddeficit of $19,724 at December 31, 2009.                                                                                                                                                       |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                      | The Company’s continued existence is dependent upon its ability to raise capital or acquire a marketable company. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.                                                                                                                                                                                                                                                              |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Note E -        | Due to Parent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                      | Due to parent represents cash advances from AFH Holding & Advisory LLC.  AFH Holding & Advisory LLC is the majority shareholder of the company. There are no repayment terms.                                                                                                                                                                                                                                                                                                                                   |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Note F -        | Stock Transactions and Due from Parent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                      | In February 2008, the Company commenced a private placement (the “Offering”) of up to 350,0000 shares (the “Shares”) of Common Stock at a purchase price of $2.00 per share on a “best efforts” basis with expected gross proceeds of up to $700,000 to “accredited investors”(as defined in Rule 501 promulgated under Regulation D under the Securities Act of 1933, amended (the “Securities Act”)) pursuant to Rule 506 of Regulation D under the Securities Act. |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                      | From February 1, 2008 to March 12, 2008 the Company sold an aggregate of 230,500 Shares with gross proceeds of $461,000.  From April 8, 2008 to April 28, 2008 the Company sold an aggregate of 124,500 Shares with gross proceeds of $249,000.  The total amount of Shares sold in the Offering was 355,000with gross proceeds of $710,000.                                                                                                                                                                  |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Note G -   | Subsequent Events                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                      | Subsequent events were evaluated through March 31, 2010, the date the financial statements were issued.                                                                                                                                                                                                                                                                                                                                                                                                                           |

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| Name                |   | Age    |   | Position                                                                                                    |
|---------------------|--------|--------|--------|-------------------------------------------------------------------------------------------------------------|
|                |   |   |   |                                                                                                        |
| Amir F. Heshmatpour |   | 43     |   | President, Secretary and Sole Director(Principal Executive Officer)(Principal Financial/Accounting Officer) |

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| Name and Address                                                                                                 |   | Common StockAmount Beneficially Owned |      |   | Percentage of Class (1) |   |
|------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|--------|-------------------------|--------|
|                                                                                                             |   |                                  |      |   |                    |   |
| Amir F. Heshmatpour (2)9595 Wilshire Boulevard, Suite 700Beverly Hills, California 90212(President and Director) |   |                                  | 5,000,000 |   |                    |   | 93.4 | % |
|                                                                                                             |   |                                  |      |   |                    |   |   |   |
| All Officers and Directors as a Group(1 Person)                                                                  |   |                                  | 5,000,000 |   |                    |   | 93.4 | % |

| (1) | Based on 5,355,000 shares of Common Stock issued and outstanding as of the date of filing this Form 10-K. Under Rule 13d-3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement,understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares.  Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares).  In addition, shares are deemed to be beneficially owned by a person if the personhas the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided.  In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights.  As a result, the percentage of outstanding shares of any person as shown in this tabledoes not necessarily reflect the person's actual ownership or voting power with respect to the number of shares of common stock actually outstanding.  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Represents shares of the Registrant's common stock owned by AFH Holding and Advisory, LLC located at 9595 Wilshire Boulevard, Suite 700, Beverly Hills, California 90212.  As the sole member of AFH Advisory, Mr. Heshmatpour is deemed to be the beneficial owner of these shares of the Registrant's common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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| Year |   | Amount |   |
|------|--------|--------|--------|
| 2009 |   | $      | 3,550  |   |
| 2008 |   | $      | 3,550  |   |

| Year |   | Amount |   |
|------|--------|--------|--------|
| 2009 |   | $      | 0      |   |
| 2008 |   | $      | 0      |   |

| Year |   | Amount |   |
|------|--------|--------|--------|
| 2009 |   | $      | 0      |   |
| 2008 |   | $      | 0      |   |

| Year |   | Amount |   |
|------|--------|--------|--------|
| 2009 |   | $      | 0      |   |
| 2008 |   | $      | 0      |   |

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|                  | AFH Holding III, Inc. |
|-----------------------|-----------------------|
|                  |             |    |
| Dated: March 31, 2010 | By:         | /s/ Amir F. Heshmatpour |
|                  |                  | Amir F. HeshmatpourPresident, Secretary and Sole Director(Principal Executive Officer)(Principal Financial Officer) |

| Signature               |   | Title                                                                           |   | Date           |
|-------------------------|--------|---------------------------------------------------------------------------------|--------|----------------|
|                    |   |                                                                            |   |           |
| /s/ Amir F. Heshmatpour |   | President, Secretary and Sole Director                                          |   | March 31, 2010 |
| Amir F. Heshmatpour     |   | (Principal Executive Officer)(Principal Financial/Accounting Officer) |   |           |