**U.S. Securities and Exchange Commission**

**Washington, D.C. 20549**

 

**FORM 10-Q**

 

[ X ]*           *QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF  THE SECURITIESAND EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2008

or

[   ]             TRANSITION REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ANDEXCHANGE ACT OF 1934

For the transition period from _____________________

Commission File No. 333-146163

 

**Osler Inc.**

---------------------------------------------

(Name of small business issuer in its charter)

 

| **Nevada**               | **N/A**                              |
|--------------------------|--------------------------------------|
| (State of Incorporation) | (I.R.S. Employer Identification No.) |

 

**1400 Paces Lane, Suite 202, Woodstock, GA, 30189**

(Address of principal executive offices)

 

**678-481-1600**

(Registrant's telephone number, including area code)

 

**1864, Portage Ave., Winnipeg, Manitoba, Canada, R3J 0H2**

**204.951.1544**

_____________________________________

(Former name, address and fiscal year, if changed since lastreport)

| Large accelerated filer o     Accelerated filer o     Non-accelerated filer o    (Do not check if a smaller reporting company)Smaller    reporting company X     Indicate by check mark whether the  Registrant is a shell company (as defined in Rule 12b-2 of Exchange Act)  Yes X No o The number of shares outstanding of the  Registrant's common stock, par value $.001 per share, at November 6, 2008 was  54,800,000 shares.    
 

1

 

Part I - FINANCIAL INFORMATION

**Osler Inc.**

**(An Exploration Stage Company)**

**Balance Sheets**

**As of September 30, 2008 and June 30, 2008**

 
 **September 30,****June 30** **2008****2008** **(Unaudited)**       
**ASSETS****Current Assets:**        Cash$                       -$                       -**Total Current Assets**      -      -         Property and equipment, net      -      -                     **Total Assets**** $                       -****$                       - **   
**LIABILITIES AND STOCKHOLDERS' DEFICIT**   **Current Liabilities:**        Accounts payable and accrued liabilities      $                  2,475      $            500      Notes payable      23,616      23,616**Total Current Liabilities**                 **26,091**            **24,116**   **Total Liabilities****26,091****24,116**   
**STOCKHOLDERS' DEFICIT****Stockholders' Deficit**  Common stock, $0.001 par value, 75,000,000      shares authorized  54,800,000 shares issued and outstanding54,80054,800   Additional paid in capital(27,000)(27,000)      Deficit, accumulated during the exploration stage      (53,891)      (51,916)**Total Stockholders'  Deficit**      (26,091)      (24,116)   **Total Liabilities and Stockholders' Deficit****$                       -****$                   -**   
**The accompanying notes are an integral part of thesefinancial statements**

 

 

**Osler Inc.**

**(An Exploration Stage Company)**

**Statements of Operations**

**For the three months ended September 30, 2008 and 2007**

**and Period from July 30, 2004 (Inception) through September30, 2008**

**(Unaudited)**

    

 
              
       
 
              
       
 **Three Months****Three Months****Inception**
 **Ended****Ended****through**
 **September 30, 2008****September 30, 2007****September 30, 2008**                            
**Costs and Expenses:**
              
             Mineral exploration      $                      -       $                        -      $                  4,250      General and administrative      1,975      16,176      49,641**Net loss from operations**      (1,975)      (16,176)      (53,891)                            
**Net (loss) for the period**      $      (1,975)      $       (16,176)      $        (53,891)
                      
**Net loss per share**                     
Basic and Diluted       $        (0.00)      $           (0.00)                                   
**Weighted average number of shares**                           Basic and diluted
      54,800,000      54,800,000       
**The accompanying notes are an integral part of thesefinancial statements**

 

 

**Osler Inc.**

**(An Exploration Stage Company)**

**Statements of Cash Flows**

**For the three months ended September 30, 2008 and 2007**

**and Period from July 30, 2004 (Inception) through September30, 2008**

**(Unaudited)**

 

 
          
     
                      
                      
 **Three Months****Three Months****Inception**
 **Ended****Ended****through**
 **September 30, 2008****September 30, 2007****September 30, 2008**
**Cash flows from operating activities:**
          
     
    Net loss    $       (1,975)    $        (16,176)    $       (53,891)*Adjustments to reconcile net loss to cash used in operating activities:*                   Depreciation    -    -    170    Impairment    -    -    3,565*Net change in:*               
    Accounts payable and accrued liabilities    1,975    (1,555)
2,475
**Cash flows used in operating activities**    -    (17,731)    (47,681)
                                        **Cash flows used in investing activities:**                   Purchase of property and equipment    -    -    (3,735)    Cash flows used in investing activities    -    -    (3,735)                    
**Cash flows from financing activities:**               
    Cash received from shareholder advances    -    -    23,616
    Cash received from common stock    -    -    27,800
**Cash flows provided by financing activities**    -    -    51,416
                    
**Net increase (decrease) in cash**                       -             (17,731)                        -
                    
**Cash, beginning of period**    -    24,169    -
**Cash, end of period**    $                   -    $                6,438    $                    -                                        **Supplementary Cash Flow Information**                   Interest Paid    -    -    -    Income Taxes Paid    -    -    -
**The accompanying notes are an integral part of thesefinancial statements**

 

 
**Osler Inc.

(An Exploration Stage Company)

Notes to Financial Statements

September 30, 2008

(Unaudited)
**Note 1****Nature and    Continuance of Operations****
The Company was incorporated in the State of Nevada on July 30, 2004  topursue mineral exploration. 

These financial statements have been prepared in accordance with generallyaccepted accounting principles applicable to a going concern, which assumes thatthe Company will be able to meet its obligations and continue its operations forits next fiscal year.  Realization values may be substantially different fromcarrying values as shown and these financial statements do not give effect toadjustments that would be necessary to the carrying values and classification ofassets and liabilities should the Company be unable to continue as a goingconcern.  At September 30, 2008, the Company had not yet achieved profitableoperations, has accumulated losses of $53,891 since its inception, has workingcapital deficit of $26,091, and expects to incur further losses in the development of itsbusiness, all of which casts substantial doubt about the Company's ability tocontinue as a going concern. The Company's ability to continue as a goingconcern is dependent upon its ability to generate future profitable operationsand/or to obtain the necessary financing to meet its obligations and repay itsliabilities arising from normal business operations when they come due.Management has no formal plan in place to address this concern but considersthat the Company will be able to obtain additional funds by equity financingand/or related party advances, however there is no assurance of additionalfunding being available.  

 
****Note 2****Basis of Presentation****
Theaccompanying financial statements, which should be read in conjunction with thefinancial statements and footnotes included in the Company's Form 10-K for theyear ended June 30, 2008 filed with the Securities and Exchange Commission, areunaudited, but have been prepared in accordance with accounting principlesgenerally accepted in the United States for interim financial information.Accordingly, they do not include all of the information and footnotes requiredby accounting principles generally accepted in the United States for completefinancial statements. In the opinion of management, all adjustments (consistingonly of normal recurring adjustments) considered necessary for a fairpresentation have been included.

Operating results for the three months ended September 30, 2008 are notnecessarily indicative of the results that may be expected for the full yearending June 30, 2009.

 

 

**Item 2: Management's Discussion and Analysis of FinancialCondition and Results of Operations**

*Caution aboutForward-Looking Statements*

This quarterly report contains forward-looking statements. These statementsrelate to future events or our future financial performance. In some cases, youcan identify forward-looking statements by terminology such as "may", "should","expects", "plans", "anticipates", "believes", "estimates", "predicts","potential" or "continue" or the negative of these terms or other comparableterminology. These statements are only predictions and involve known and unknownrisks, uncertainties and other factors, that may cause our or our industry'sactual results, levels of activity, performance or achievements to be materiallydifferent from any future results, levels of activity, performance orachievements expressed or implied by these forward-looking statements. Althoughwe believe that the expectations reflected in the forward-looking statements arereasonable, we cannot guarantee future results, levels of activity, performanceor achievements. Except as required by applicable law, including the securitieslaws of the United States, we do not intend to update any of the forward-lookingstatements to conform these statements to actual results.

Our unaudited financial statements are stated in United States Dollars (US$)and are prepared in accordance with United States Generally Accepted AccountingPrinciples. The following discussion should be read in conjunction with ourfinancial statements and the related notes that appear elsewhere in thisquarterly report. The following discussion contains forward-looking statementsthat reflect our plans, estimates and beliefs. Our actual results could differmaterially from those discussed in the forward looking statements. Factors thatcould cause or contribute to such differences include, but are not limited to,those discussed below and elsewhere in this quarterly report.

In this quarterly report, unless otherwise specified, all dollar amounts areexpressed in United States dollars. All references to "US$" refer to UnitedStates dollars and all references to "common shares" refer to the common sharesin our capital stock.

As used in this quarterly report, the terms "we", "us", "our", "our company"and "Osler" mean Osler Inc., unless otherwise indicated. 

*Overview*

The address of our principal executive office is 1400 Paces Lane, Suite 202,Woodstock, GA, 30189. Our telephone number is 678-481-1600.

Our common stock is quoted on the OTC Bulletin Board under the symbol "OSLE".

We do not have any subsidiaries.

We were incorporated on July 30, 2004 under the laws of the state of Nevada

On April 5, 2007 we acquired the Far 1 - 4 mineral claims comprising 82.64 acres(approximately 33.44 hectares) in Esmeralda County, in the State of Nevada fromJames McLeod (the "*Far*" property). Due to lack of funding, the Companywas unable to pay the maintenance fees on the anniversary date of September 1,2008 to maintain the Far 1 - 4 mineral claims. As such, title to the Far 1 - 4mineral claims have been forfeited. Management will continue to seek outadditional mineral claims in the state of Nevada for economic mineral deposits.

 

*Competitive Conditions*

The mineral exploration business is a competitive industry.  We are competingwith many other exploration companies looking for minerals.  We compete withnumerous other companies which have resources far in excess of ours.  Being ajunior mineral exploration company, we compete with such other companies forfinancing and joint venture partners and exploration resources includingprofessional geologists, camp staff, and mineral exploration supplies.

 

*Results of Operations *

For the three months ended September 30, 2008, the Company experienced a net loss of $1,975compared to a net loss of $16,176 for the comparative period in 2007. 

General and administrative expenses for the threemonth period ended September 30, 2008 were $1,975 versus $16,176 for the sameperiod in 2007. This decrease in 2008 can be attributed to a decrease inprofessional fees incurred for maintaining the Company's publicly reportingstatus.

*Revenues*

We have not earned any revenues since our inception and we donot anticipate earning revenues in the upcoming quarter. 

*Expenses*

Our operating expenses for the three month periods ended September 30, 2008and 2007 are outlined in the table below:
 
Three Months Ended       September 30       2008      2007General      and Administrative      1,975      16,176Mineral      Exploration      -      -
The decrease in general and administrative expenses in 2008 can be attributed toa decrease inprofessional fees incurred for maintaining the Company's publicly reportingstatus.
Liquidity and Capital Resources 
During the three month periodended September 30, 2008, the Company satisfied its working capital needs byusing cash generated from operations and equity from shareholder's initial seedfinancing and shareholder loans. As of September 30, 2008, the Company has cash on hand in the amountof $0. Management does not expect that the current level of cash on hand willbe sufficient to fund our operations for the next twelve month period. In theevent that additional funds are required to maintain operations, we may be able to obtain loans from our shareholders,but there are no agreements or understandings in place currently.
We believe we will require additional funding to expand our business and ensure its future profitability. We anticipate that any additional funding will be in the form of equity financing from the sale of our common stock. However, we do not have any arrangements in place for any future equity financing. In the event we are not successful in selling our common stock, we may also seek to obtain short-term loans from our director.
**Item 3. Quantitative Disclosures About Market Risks**

As a "smaller reporting company", we are not required to providethe information required by this Item.

**Item 4. Controls and Procedures**

We maintain disclosure controls and procedures that aredesigned to ensure that information required to be disclosed in our reportsfiled under the Securities Exchange Act of 1934, as amended, is recorded,processed, summarized and reported within the time periods specified in theSecurities and Exchange Commission's rules and forms, and that such informationis accumulated and communicated to our management, including our president (ourprincipal executive officer, principal accounting officer and principalfinancial officer) to allow for timely decisions regarding required disclosure.In designing and evaluating our disclosure controls and procedures, ourmanagement recognizes that any controls and procedures, no matter how welldesigned and operated, can provide only reasonable assurance of achieving thedesired control objectives, and our management is required to apply its judgmentin evaluating the cost-benefit relationship of possible controls and procedures.

As of September 30, 2008, the end of the three month periodyear covered by this report, our president (our principal executive officer,principal accounting officer and principal financial officer) carried out anevaluation of the effectiveness of the design and operation of our disclosurecontrols and procedures. Based on the foregoing, our president (our principalexecutive officer, principal accounting officer and principal financial officer)concluded that our disclosure controls and procedures were effective as of theend of the period covered by this annual report. 

There have been no changes in our internal controls overfinancial reporting that occurred during the year ended September 30, 2008 thathave materially affected, or are reasonably likely to materially affect, ourinternal controls over financial reporting. 

 

 

PART II: OTHER INFORMATION

**Items 1. Legal Proceedings**

We know of no material, existing or pending legal proceedingsagainst our company, nor are we involved as a plaintiff in any materialproceeding or pending litigation. There are no proceedings in which any of ourdirectors, officers or affiliates, or any registered or beneficial shareholder,is an adverse party or has a material interest adverse to our interest. 

**Item 1A. Risk Factors**

Much of the information included in this quarterly report includes or isbased upon estimates, projections or other "forward looking statements". Suchforward looking statements include any projections or estimates made by us andour management in connection with our business operations. While theseforward-looking statements, and any assumptions upon which they are based, aremade in good faith and reflect our current judgment regarding the direction ofour business, actual results will almost always vary, sometimes materially, fromany estimates, predictions, projections, assumptions or other future performancesuggested herein.

Such estimates, projections or other "forward looking statements" involvevarious risks and uncertainties as outlined below. We caution the reader thatimportant factors in some cases have affected and, in the future, couldmaterially affect actual results and cause actual results to differ materiallyfrom the results expressed in any such estimates, projections or other "forwardlooking statements".

Our common shares are considered speculative during the development of ournew business operations. Prospective investors should consider carefully therisk factors set out below.

RISKS RELATED TO OUR BUSINESS
**If we do not obtain additional financing, our business may fail.**  Our business plan calls for significant expenses in connection with the  exploration of our mineral claim and we do not currently have any commitments  from our management, shareholders or any third parties to provide us with  funding nor have we made any arrangements to secure any additional financing  to date.  If we are unable to raise additional funds, we will not be able to  continue to explore and develop our mineral property and our business may  fail.**We rely upon key personnel and if he leaves us, our business plan and  results of operations could be adversely affected.**     We rely heavily on our Chief Executive Officer, Chief Financial Officer,  Secretary, Treasurer and Director, Lance Friedman for our success. His  experience and input create the foundation for our business and he is  responsible for the directorship and control over our business activities.  We do not currently have an employment agreement or "key man" insurance policy  on Mr. Friedman. Moving forward, should we lose the services of Mr. Friedman,  for any reason, we will incur costs associated with recruiting a replacement  and delays in our operations. If we are unable to replace him with another  suitably trained individual or individuals, we may be forced to scale back or  curtail our business plan and exploration activities. As a result of this,  your investment in us could become devalued or worthless.   **We will be subject to numerous risks if we commence mining operations,  of which there can be no assurance.**     The mineral exploration and mining business is competitive in all of its  phases. We currently have no mining operations of any kind; however, if we do  commence mining activities in the future, we will be subject to numerous  risks, including:     o  competitors with greater financial, technical and other resources, in the  search for and the acquisition of attractive mineral properties;        o  our ability to select and acquire suitable producing properties or        prospects for mineral exploration;  o  the accuracy of our reserve estimates, if any, which may be affected by the  following factors beyond our control:
                      -        declines in the market price of the various metals we mine;                                   -        increased production or capital costs;                                   -        reduction in the grade or tonnage of the deposit;                                   -        increase in the dilution of the ore; or                                   -        reduced recovery rates;  o  risks and hazards associated with environmental hazards, political and  country risks, civil unrest or terrorism, industrial accidents, labor  disputes, unusual or unexpected geologic formations, cave-ins, explosive rock  failures; and flooding and periodic interruptions due to inclement or  hazardous weather conditions; and  o  our failure to maintain insurance on certain risks associated with any  exploration activities we may undertake in the future.  If we do begin exploration activities in the future, of which there can be no  assurance, we will be subject to the above risks. If any of the above risks  occur, we may be forced to curtail or abandon our operations and/or  exploration and development activities, if any. As a result, any investment in  us could decrease in value and/or become worthless.   **Our determinations of whether our planned activities and estimates of  potential reserves, if any, may be inaccurate.**  We are currently in the exploration stage. Before we can begin a development  project, if ever, we must first determine whether it is economically feasible  to do so. This determination is based on estimates of several factors,  including:           o        expected recovery rates of metals from the ore;        o        facility and equipment costs;        o        capital and operating costs of a development project;        o        future metals prices;        o        currency exchange and repatriation risks;        o        tax rates;        o         inflation rates;        o        availability of credit.   
  Any development projects we may undertake in the future will likely not have  an operating history upon which to base these estimates and as a result,  actual cash operating costs and returns from a development project, if any,  may differ substantially from our estimates. Consequently, it may not be  economically feasible to continue with a development project, if one is  started.   **Our planned mineral exploration efforts are highly speculative.**     Mineral exploration is highly speculative. It involves many risks and is often  nonproductive. Even if we believe we have found a valuable mineral deposit, it  may be several years before production is possible. During that time, it may  become no longer feasible to produce those minerals for economic, regulatory,  political, or other reasons. Additionally, we may be required to make  substantial capital expenditures and to construct mining and processing  facilities. As a result of these costs and uncertainties, we may be unable to  start, or if started, to finish our exploration activities.   **Mining operations in general involve a high degree of risk, which we  may be unable, or may not choose to insure against, making exploration and/or  development activities we may pursue subject to potential legal liability for  certain claims.**     Our operations are subject to all of the hazards and risks normally  encountered in the exploration, development and production of minerals. These  include unusual and unexpected geological formations, rock falls, flooding and  other conditions involved in the drilling and removal of material, any of  which could result in damage to, or destruction of, mines and other producing  facilities, damage to life or property, environmental damage and possible  legal liability. Although we plan to take adequate precautions to minimize  these risks, and risks associated with equipment failure or failure of  retaining dams which may result in environmental pollution, there can be no  assurance that even with our precautions, damage or loss will not occur and  that we will not be subject to liability which will have a material adverse  effect on our business, results of operation and financial condition. If this  were to happen, we could be forced to curtail or abandon our business  activities.   **Because we have only recently commenced business operations, we face a  high risk of business failure and this could result in a total loss of your  investment.**     We have not begun the initial stages of exploration activities, and thus have  no way to evaluate the likelihood whether we will be able to operate our  business successfully.  We were incorporated on July 30, 2004 and to date have  been involved primarily in organizational activities, obtaining financing and  acquiring our mineral claims.  We have not earned any revenues and we have  never achieved profitability as of the date of this prospectus.  Potential  investors should be aware of the difficulties normally encountered by new  mineral exploration companies and the high rate of failure of such  enterprises.  The likelihood of success must be considered in the light of  problems, expenses, difficulties, complications and delays encountered in  connection with the exploration of the mineral property that we plan to  undertake.  These potential problems include, but are not limited to,  unanticipated problems relating to exploration and additional costs and  expenses that may exceed current estimates.  We have no history upon which to  base any assumption as to the likelihood that our business will prove  successful, and we can provide no assurance to investors that we will generate  any operating revenues or ever achieve profitable operations.  If we are  unsuccessful in addressing these risks our business will likely fail and you  will lose your entire investment in this offering.   **Because of the speculative nature of mineral exploration, there is  substantial risk that no commercially viable gold or silver deposits will be  found and our business will fail.**     Exploration for gold and silver is a speculative venture involving substantial  risk.  We can provide investors with no assurance that any mineral claims we  become part of contain commercially viable gold or silver deposits.  The  exploration program that we will conduct on our claims may not result in the  discovery of commercially viable gold or silver deposits.  Problems such as  unusual and unexpected rock formations and other conditions are involved in  gold and silver exploration, which often result in unsuccessful exploration  efforts.  In such a case, we may be unable to complete our business plan and  you could lose your entire investment in this offering.**Because of the inherent dangers involved in gold and silver  exploration, there is a risk that we may incur liability or damages as we  conduct our business.**  The search for gold and silver involves numerous hazards.  As a result, we may  become subject to liability for such hazards, including pollution, cave-ins  and other hazards against which we cannot insure or against which we may elect  not to insure.  We currently have no such insurance nor do we expect to get  such insurance for the foreseeable future.  If a hazard were to occur, the  costs of rectifying the hazard may exceed our asset value and cause us to  liquidate all our assets causing our business to fail.**As we undertake exploration of our mining claims, we will be subject  to compliance of government regulation that may increase the anticipated time  and cost of our exploration program.**     There are several governmental regulations that materially restrict the  exploration of minerals.  We will be subject to the mining laws and  regulations as contained in the Chapter 519A of the Nevada Revised Statutes as  we carry out our exploration program.  We may be required to obtain work  permits and perform remediation work for any physical disturbance to the land  in order to comply with these regulations.  While our planned exploration  program budgets for regulatory compliance, there is a risk that new  regulations could increase our time and costs of doing business and prevent us  from carrying out our exploration program.**Because our management has no experience in the mineral exploration  business we may make mistakes and this could cause our business to fail.**  Our President has no previous experience operating an exploration or a mining  company and because of this lack of experience he may make mistakes.  Our  management lacks the technical training and experience with exploring for,  starting, or operating a mine.  With no direct training or experience in these  areas our management may not be fully aware of the many specific requirements  related to working in this industry.  Our management's decisions and choices  may not take into account standard engineering or managerial approaches  mineral exploration companies commonly use.  Consequently, our operations,  earnings, and ultimate financial success could suffer irreparable harm due to  our management's lack of experience in this industry.**Our auditors have raised substantial doubt about our ability to  continue as a going concern.**  The accompanying financial statements have been prepared assuming that we will  continue as a going concern.  As discussed in Note 1 to the financial  statements, we were incorporated on July 30, 2004, and we do not have a  history of earnings, and as a result, our auditors have expressed substantial  doubt about our ability to continue as a going concern.  Continued operations  are dependent on our ability to complete equity or debt financings or generate  profitable operations.  Such financings may not be available or may not be  available on reasonable terms.  Our financial statements do not include any  adjustments that may result from the outcome of this uncertainty. 
RISKS RELATED TO OUR COMMON STOCK

**Trading in our common shares on the OTC Bulletin Board is limited andsporadic making it difficult for our shareholders to sell their shares orliquidate their investments.**

Our common shares are currently listed for public trading on the OTC BulletinBoard. The trading price of our common shares has been subject to widefluctuations. Trading prices of our common shares may fluctuate in response to anumber of factors, many of which will be beyond our control. The stock markethas generally experienced extreme price and volume fluctuations that have oftenbeen unrelated or disproportionate to the operating performance of companieswith no current business operation. There can be no assurance that tradingprices and price earnings ratios previously experienced by our common shareswill be matched or maintained. These broad market and industry factors mayadversely affect the market price of our common shares, regardless of ouroperating performance.

In the past, following periods of volatility in the market price of acompany's securities, securities class-action litigation has often beeninstituted. Such litigation, if instituted, could result in substantial costsfor us and a diversion of management's attention and resources.

**Our stock is a penny stock. Trading of our stock may be restricted by theSEC's penny stock regulations which may limit a stockholder's ability to buy andsell our stock.**

Our stock is a penny stock. The Securities and Exchange Commission hasadopted Rule 15g-9 which generally defines "penny stock" to be any equitysecurity that has a market price (as defined) less than $5.00 per share or anexercise price of less than $5.00 per share, subject to certain exceptions. Oursecurities are covered by the penny stock rules, which impose additional salespractice requirements on broker-dealers who sell to persons other thanestablished customers and "accredited investors". The term "accredited investor"refers generally to institutions with assets in excess of $5,000,000 orindividuals with a net worth in excess of $1,000,000 or annual income exceeding$200,000 or $300,000 jointly with their spouse. The penny stock rules require abroker-dealer, prior to a transaction in a penny stock not otherwise exempt fromthe rules, to deliver a standardized risk disclosure document in a form preparedby the SEC which provides information about penny stocks and the nature andlevel of risks in the penny stock market. The broker-dealer also must providethe customer with current bid and offer quotations for the penny stock, thecompensation of the broker-dealer and its salesperson in the transaction andmonthly account statements showing the market value of each penny stock held inthe customer's account. The bid and offer quotations, and the broker-dealer andsalesperson compensation information, must be given to the customer orally or inwriting prior to effecting the transaction and must be given to the customer inwriting before or with the customer's confirmation. In addition, the penny stockrules require that prior to a transaction in a penny stock not otherwise exemptfrom these rules; the broker-dealer must make a special written determinationthat the penny stock is a suitable investment for the purchaser and receive thepurchaser's written agreement to the transaction. These disclosure requirementsmay have the effect of reducing the level of trading activity in the secondarymarket for the stock that is subject to these penny stock rules. Consequently,these penny stock rules may affect the ability of broker-dealers to trade oursecurities. We believe that the penny stock rules discourage investor interestin and limit the marketability of our common stock.

**The Financial Industry Regulatory Authority, or FINRA, has adopted salespractice requirements which may also limit a stockholder's ability to buy andsell our stock.**

In addition to the "penny stock" rules described above, FINRA has adoptedrules that require that in recommending an investment to a customer, abroker-dealer must have reasonable grounds for believing that the investment issuitable for that customer. Prior to recommending speculative low pricedsecurities to their non-institutional customers, broker-dealers must makereasonable efforts to obtain information about the customer's financial status,tax status, investment objectives and other information. Under interpretationsof these rules, FINRA believes that there is a high probability that speculativelow priced securities will not be suitable for at least some customers. FINRArequirements make it more difficult for broker-dealers to recommend that theircustomers buy our common stock, which may limit your ability to buy and sell ourstock and have an adverse effect on the market for our shares.

 

**Item 2 Unregistered Sales of Equity Securities and Use ofProceeds**

None

**Item 3 Defaults Upon Senior Securities**

None

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

None

**Item 5 Other Information**

None

**Item 6: Exhibits**

(a)   The following exhibit is filed as part of this report:

        31.1 Certification of Principal Executive Officer and Principal Financial Officerfiled pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 

        32.1 Certification of Principal Executive Officer and Principal Financial Officerpursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of theSarbanes-Oxley Act of    2002

 

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, theregistrant has duly caused this report to be signed on its behalf by theundersigned thereunto duly authorized November 19, 2008
 
November 19, 2008/s/ Lance Friedman Mr. Lance Friedman, President    |
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