----

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| Delaware                                                    |   | 26-1365024                              |
|-------------------------------------------------------------|--------|-----------------------------------------|
| (State or other jurisdiction of incorporation or formation) |   | (I.R.S. employer identification number) |

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

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

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|                             |                                                                                        | Page      |
|----------------------------------|---------------------------------------------------------------------------------------------|-----------|
| PART I - FINANCIAL INFORMATION   |   1                                                                                    |
|                             |                                                                                        |      |
| Item 1.                          | Financial Statements                                                                        | F-1 - F-8 |
|                             |                                                                                        |      |
| Item 2.                          | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 2         |
|                             |                                                                                        |      |
| Item 3.                          | Quantitative and Qualitative Disclosures About Market Risk                                  |   6  |
|                             |                                                                                        |      |
| Item 4T.                    | Controls and Procedures                                                                     | 6         |
|                             |                                                                                        |
| PART II - OTHER INFORMATION      |   6                                                                                    |
|                             |                                                                                        |      |
| Item 1.                          | Legal Proceedings                                                                           |   6  |
|                             |                                                                                        |      |
| Item 1A.     | Risk Factors                                                                                |   6  |
|                             |                                                                                        |      |
| Item 2.                          | Unregistered Sale of Equity Securities and Use of Proceeds                                  |   11 |
|                             |                                                                                        |      |
| Item 3.                          | Defaults Upon Senior Securities                                                             |   11 |
|                             |                                                                                        |      |
| Item 4.                          | Removed and Reserved                                                                        |   11 |
|                             |                                                                                        |      |
| Item 5.                          | Other Information                                                                           |   11 |
|                             |                                                                                        |      |
| Item 6.                          | Exhibits                                                                                    |   12 |
|                             |                                                                                        |
| SIGNATURES                       |   13                                                                                   |

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| FINANCIAL REPORTS |
|-------------------|
| AT                |
| MARCH 31, 2011    |

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AFH

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| Balance Sheets at March 31, 2011 (Unaudited) and December 31, 2010                     | F-1       |
|----------------------------------------------------------------------------------------|-----------|
|                                                                                   |      |
| Statements of Changes in Stockholders’ Equity for the Period                     |      |
|   from Date of Inception (April 16, 2007) through March 31, 2011 (Unaudited) | F-2       |
|                                                                                   |      |
| Statements of Operations for the Three Months Ended March 31, 2011                     |      |
|   and 2010 and for the Period from Date of Inception (April 16, 2007)        |      |
|   through March 31, 2011 (Unaudited)                                         | F-3       |
|                                                                                   |      |
| Statements of Cash Flows for the Three Months Ended March 31, 2011                     |      |
|   and 2010 and for the Period from Date of Inception (April 16, 2007)        |      |
|   through March 31, 2011 (Unaudited)                                         | F-4       |
|                                                                                   |      |
| Notes to Financial Statements                                                          | F-5 - F-8 |

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| AFH HOLDING III, INC.                                                                                                                                                                                    |   |        |    |   |         |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|--------------|--------|
| (A DEVELOPMENT STAGE COMPANY)                                                                                                                                                                            |   |        |    |   |         |   |
| (A DELAWARE CORPORATION)                                                                                                                                                                                 |   |        |    |   |         |   |
| Beverly Hills, CA                                                                                                                                                                                        |   |        |    |   |         |   |
|                                                                                                                                                                                                     |   |        |    |   |         |   |
|                                                                                                                                                                                                     |   |        |    |   |         |   |
| BALANCE SHEETS                                                                                                                                                                                           |   |        |    |   |         |   |
|                                                                                                                                                                                                     |   |        |    |   |         |   |
|                                                                                                                                                                                                     |   | (Unaudited) |    |   |         |   |
|                                                                                                                                                                                                     |   | March 31,   |    |   | December 31, |   |
|                                                                                                                                                                                                     |   | 2011        |    |   | 2010         |   |
|                                                                                                                                                                                                     |   |        |    |   |         |   |
| ASSETS                                                                                                                                                                                                   |   |        |    |   |         |   |
| Due from Parent                                                                                                                                                                                          |   | $           | 710,000 |   |         | $      | 710,000 |   |
|                                                                                                                                                                                                     |   |        |    |   |         |   |   |   |
|                                                                                                                                                                                                     |   |        |    |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                     |   |        |    |   |         |   |   |   |
|                                                                                                                                                                                                     |   |        |    |   |         |   |   |   |
| Liabilities                                                                                                                                                                                              |   |        |    |   |         |   |   |   |
| Accrued Expenses                                                                                                                                                                                         |   | $           | 5,346   |   |         | $      | 1,544 |   |
| Due to Parent                                                                                                                                                                                            |   |        | 22,170  |   |         |   | 20,626 |   |
|                                                                                                                                                                                                     |   |        |    |   |         |   |   |   |
| Total Liabilities                                                                                                                                                                                        |   |        | 27,516  |   |         |   | 22,170 |   |
|                                                                                                                                                                                                     |   |        |    |   |         |   |   |   |
| 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                                                                                                                                                             |   |        | (34,537 | )      |         |   | (29,191 | ) |
|                                                                                                                                                                                                     |   |        |    |   |         |   |   |   |
| Total Stockholders' Equity                                                                                                                                                                               |   |        | 682,484 |   |         |   | 687,830 |   |
|                                                                                                                                                                                                     |   |        |    |   |         |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                                                                                                               |   | $           | 710,000 |   |         | $      | 710,000 |   |

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| 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 MARCH 31, 2011 (UNAUDITED) |   |         |      |   |       |   |    |
|                                                                  |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |
|                                                                  |   |         |      |   |       |   |    |    |   |   | 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 |   |
|                                                                  |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |   |   |   |   |   |
| Net Loss                                                              |   |         | —   |   |       |   | — |    |   |   | —     |   |   |          | (9,467  | ) |   |   | (9,467 | ) |
|                                                                  |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |   |   |   |   |   |
| Balance - December 31, 2010                                           |   |         | 5,355,000 |   |       |   | 5,355   |    |   |   | 711,666     |   |   |          | (29,191 | ) |   |   | 687,830 |   |
|                                                                  |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |   |   |   |   |   |
| Net Loss                                                              |   |         | —   |   |       |   | — |    |   |   | —     |   |   |          | (5,346  | ) |   |   | (5,346 | ) |
|                                                                  |   |         |      |   |       |   |    |    |   |   |        |   |   |          |    |   |   |   |   |   |
| Balance - March 31, 2011                                              |   |         | 5,355,000 |   |       | $      | 5,355   |    |   | $      | 711,666     |   |   | $             | (34,537 | ) |   | $ | 682,484 |   |

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| AFH HOLDING III, INC.                      |   |                       |      |   |             |   |      |              |   |
|--------------------------------------------|--------|----------------------------|-----------|--------|------------------|--------|-----------|-------------------|--------|
| (A DEVELOPMENT STAGE COMPANY)              |   |                       |      |   |             |   |      |              |   |
| (A DELAWARE CORPORATION)                   |   |                       |      |   |             |   |      |              |   |
| Beverly Hills, CA                          |   |                       |      |   |             |   |      |              |   |
|                                       |   |                       |      |   |             |   |      |              |   |
|                                       |   |                       |      |   |             |   |      |              |   |
| STATEMENTS OF OPERATIONS (UNAUDITED)       |   |                       |      |   |             |   |      |              |   |
|                                       |   |                       |      |   |             |   |      |              |   |
|                                       |   |                       |      |   |             |   |      | Period From       |   |
|                                       |   |                       |      |   |             |   |      | Date of Inception |   |
|                                       |   | For the Three Months Ended |      |   | (April 16, 2007) |   |
|                                       |   | March 31,                  |      |   | Through          |   |
|                                       |   | 2011                       |      |   | 2010             |   |      | March 31, 2011    |   |
|                                       |   |                       |      |   |             |   |      |              |   |
|                                       |   |                       |      |   |             |   |      |              |   |
| Revenues                                   |   | $                          | —   |   |             | $      | —   |              |   | $ | — |   |
|                                       |   |                       |      |   |             |   |      |              |   |   |   |   |
| Expenses                                   |   |                       |      |   |             |   |      |              |   |   |   |   |
| General and Administrative                 |   |                       | 1,633     |   |             |   | 1,469     |              |   |   | 21,124 |   |
| Interest                                   |   |                       | —   |   |             |   | 85        |              |   |   | 100 |   |
|                                       |   |                       |      |   |             |   |      |              |   |   |   |   |
| Total Expenses                             |   |                       | 1,633     |   |             |   | 1,554     |              |   |   | 21,224 |   |
|                                       |   |                       |      |   |             |   |      |              |   |   |   |   |
| Net Loss for the Period Before Taxes       |   |                       | (1,633    | )      |             |   | (1,554    | )                 |   |   | (21,224 | ) |
|                                       |   |                       |      |   |             |   |      |              |   |   |   |   |
| Franchise Tax                              |   |                       | 3,713     |   |             |   | 5,600     |              |   |   | 13,313 |   |
|                                       |   |                       |      |   |             |   |      |              |   |   |   |   |
| Net Loss for the Period After Taxes        |   | $                          | (5,346    | )      |             | $      | (7,154    | )                 |   | $ | (34,537 | ) |
|                                       |   |                       |      |   |             |   |      |              |   |   |   |   |
|                                       |   |                       |      |   |             |   |      |              |   |   |   |   |
| Loss per Share - Basic and Diluted         |   | $                          | (0.00     | )      |             | $      | (0.00     | )                 |   | $ | (0.01 | ) |
|                                       |   |                       |      |   |             |   |      |              |   |   |   |   |
| Weighted Average Common Shares Outstanding |   |                       | 5,355,000 |   |             |   | 5,355,000 |              |   |   | 5,277,789 |   |

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| AFH HOLDING III, INC.                           |   |                       |    |   |             |   |    |              |   |
|-------------------------------------------------|--------|----------------------------|---------|--------|------------------|--------|---------|-------------------|--------|
| (A DEVELOPMENT STAGE COMPANY)                   |   |                       |    |   |             |   |    |              |   |
| (A DELAWARE CORPORATION)                        |   |                       |    |   |             |   |    |              |   |
| Beverly Hills, CA                               |   |                       |    |   |             |   |    |              |   |
|                                            |   |                       |    |   |             |   |    |              |   |
|                                            |   |                       |    |   |             |   |    |              |   |
| STATEMENTS OF CASH FLOWS (UNAUDITED)            |   |                       |    |   |             |   |    |              |   |
|                                            |   |                       |    |   |             |   |    |              |   |
|                                            |   |                       |    |   |             |   |    | Period From       |   |
|                                            |   |                       |    |   |             |   |    | Date of Inception |   |
|                                            |   | For the Three Months Ended |    |   | (April 16, 2007) |   |
|                                            |   | March 31,                  |    |   | Through          |   |
|                                            |   | 2011                       |    |   | 2010             |   |    | March 31, 2011    |   |
|                                            |   |                       |    |   |             |   |    |              |   |
| Cash Flows from Operating Activities            |   |                       |    |   |             |   |    |              |   |
|                                            |   |                       |    |   |             |   |    |              |   |
| Net Loss                                        |   | $                          | (5,346  | )      |             | $      | (7,154  | )                 |   | $ | (34,537 | ) |
|                                            |   |                       |    |   |             |   |    |              |   |   |   |   |
| 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                                |   |                       | 3,802   |   |             |   | (3,799  | )                 |   |   | 5,346 |   |
|                                            |   |                       |    |   |             |   |    |              |   |   |   |   |
| Net Cash Flows from Operating Activities        |   |                       | (1,544  | )      |             |   | (10,953 | )                 |   |   | (22,170 | ) |
|                                            |   |                       |    |   |             |   |    |              |   |   |   |   |
| Net Cash Flows from Investing Activities        |   |                       | — |   |             |   | — |              |   |   | — |   |
|                                            |   |                       |    |   |             |   |    |              |   |   |   |   |
| Cash Flows from Financing Activities            |   |                       |    |   |             |   |    |              |   |   |   |   |
| Cash Advance by Parent                          |   |                       | 1,544   |   |             |   | 10,953  |              |   |   | 22,170 |   |
|                                            |   |                       |    |   |             |   |    |              |   |   |   |   |
| 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 |   |
|                                            |   |                       |    |   |             |   |    |              |   |   |   |   |
|                                            |   |                       |    |   |             |   |    |              |   |   |   |   |
| Cash Paid During the Period for:                |   |                       |    |   |             |   |    |              |   |   |   |   |
| Interest                                        |   | $                          | — |   |             | $      | — |              |   | $ | — |   |
| Franchise Tax                                   |   | $                          | — |   |             | $      | — |              |   | $ | — |   |

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AFH

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| Note A -   | The CompanyAFH 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 93.4% owned by AFH Holding & Advisory, LLC (the “Parent”).  The financial statements presented represent only those transactions 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 successful in locating or negotiating with any target company. Since inception, the Company has been engaged in organizational efforts. The condensed financial statements of AFH Holding III, Inc., (the “Company”) included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in conjunction with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed financial statements should be read in conjunction with the annual audited financial statements and the notes thereto included in the Company’s registration statement on Form 10-K, and other reports filed with the SEC. The accompanying unaudited interim financial statements reflect all adjustments of a normal and recurring nature which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of the Company for the interim periods presented.  The results of operations for these periods are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year taken as a whole. Certain information that is not required for interim financial reporting purposes has been omitted. |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Note B -             | Summary of Significant Accounting PoliciesMethod of AccountingThe Company maintains its books and prepares its financial statements on the accrual basis of accounting. Development StageThe 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 requirements of FASB ASC 915.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

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|   | Cash and Cash EquivalentsCash 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. Loss Per Common ShareLoss per common share is computed in accordance with FASB ASC 260-10 by dividing income (loss) available to common stockholders by weighted average number of common shares outstanding for each period.  The calculation of diluted net loss per share gives effect to common stock equivalents, however, potential common shares are excluded if their effect is anti-dilutive. Use of EstimatesThe 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 reported amounts of revenues and expenses during the reporting period.  Actual results can differ from those estimates. Income TaxesThe Company accounts for income taxes in accordance with FASB ASC 740, using the asset and liability approach, which requires recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences 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 represents the change in net deferred assets and liability balances. Financial InstrumentsThe 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 approximates their carrying value, unless otherwise noted. Recent PronouncementsThe 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. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note C -   | Equity SecuritiesHolders 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 the Board 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. |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
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| Note D -             | Going ConcernThe 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 accumulated deficit of $34,537 at March 31, 2011. 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.                                                                                                                                                                                                                                                                                                                                                                                                                          |
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| Note E -             | Due to ParentDue to parent represents cash advances from AFH Holding & Advisory LLC.  AFH Holding & Advisory LLC is related to the Company through common ownership. There are no repayment terms.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| Note F -             | Stock Transactions and Due from ParentIn 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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|                 | - continued -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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| Note F -   | Stock Transactions and Due from Parent– continuedFrom 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 355,000 with gross proceeds of $710,000.  These funds are held by the Company’s parent. |
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|                                      |   | For the ThreeMonths Ended |    |   | For the PeriodApril 16, 2007(Inception) to |   |
|-------------------------------------------|--------|------------------------------------------|---------|--------|-----------------------------------------------------------|--------|
|                                      |   | March 31, 2011                      |    |   | March 31, 2010                                            |   |   | March 31, 2011 |   |
| Net Cash Used in Operating Activities     |   | $                                        | (1,544  | )      |                                                      | $      | (10,953) |   |   | $ | (22,170 | ) |
|                                      |   |                                     |    |   |                                                      |   |   |   |   |   |
| Net Cash Provided by Investing Activities |   |                                     | — |   |                                                      |   | — |   |   |   | — |   |
|                                      |   |                                     |    |   |                                                      |   |   |   |   |   |   |   |
| Net Cash Provided by Financing Activities |   | 1,544                                    |    |   | 10,953                                                    |   |   |   | 22,170 |   |
|                                      |   |                                     |    |   |                                                      |   |   |   |   |   |   |   |
| Net Effect on Cash                        |   | $                                        | 0       |   |                                                      | $      | 0 |   |   | $ | 0 |   |

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| ● | 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. |
|---------|----------------------------------------------------------------------------------------------------------------------------------|

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| Exhibit No.   |   | Description                                                                                                                                                                                                                                              |
|------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |   |                                                                                                                                                                                                                                                     |
| 31.1                         |   | Certification by Amir F. Heshmatpour, the Principal Executive Officer and Principal Financial and Accounting Officer of AFH Holding III, Inc., pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended.                  |
|                         |   |                                                                                                                                                                                                                                                     |
| 32.1                         |   | Certification by Amir F. Heshmatpour, the Principal Executive Officer and Principal Financial and Accounting Officer of AFH Holding III, Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

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|   |   |   | AFH HOLDING III, INC.                                                                                           |   |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------|--------|
|   |   |   | (Registrant)                                                                                                    |   |
|   |   |   |                                                                                                            |   |
|   |   |   | /s/ Amir F. Heshmatpour                                                                                         |   |
|   |   |   | Amir F. Heshmatpour                                                                                             |   |
|   |   |   | President, Secretary and Sole Director(Principal Executive Officer)(Principal Financial and Accounting Officer) |   |