UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, DC  20549





Form 10-Q





(Mark one)





x
Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934





For the quarterly period ended June 30, 2010





o
Transition Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934





For the transition period from ______________ to _____________





Commission File Number: 000-51185





Signet International Holdings, Inc.


(Exact name of registrant as specified in its charter)





Delaware

16-1732674(State of incorporation)

(IRS Employer ID Number)





205 Worth Avenue, Suite 316, Palm Beach, Florida 33480


(Address of principal executive offices)





(561) 832-2000


(Issuer's telephone number)





Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  YES x    NO o





Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES o NO o





Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):





Large accelerated filer
o
Accelerated filer
oNon-accelerated filer
o
Smaller reporting company
x





Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):  YES x   NO o





State the number of shares outstanding of each of the issuer's classes of common equity as of the latest practicable date:  August 10, 2010: 4,994,372




1


Signet International Holdings, Inc.





Form 10-Q for the Quarter ended June 30, 2010


Table of Contents




PagePart I - Financial InformationItem 1 -
Financial Statements
3Item 2 -
Management's Discussion and Analysis or Plan of Operation
19Item 3 -
Quantitative and Qualitative Disclosures About Market Risk
21Item 4 -
Controls and Procedures
22Part II - Other InformationItem 1 -
Legal Proceedings
22Item 2 -
Recent Sales of Unregistered Securities and Use of Proceeds
23Item 3 -
Defaults Upon Senior Securities
23Item 4 -
Submission of Matters to a Vote of Security Holders
23Item 5 -
Other Information
23Item 6 -
Exhibits
23Signatures
24




2




Item 1





Part 1 - Financial Statements





Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Consolidated Balance Sheets


June 30, 2010 and December 31, 2009





(Unaudited)


(Audited)June 30, 2010


December 31, 2009ASSETSCurrent AssetsCash in bank

$
13,380


$
32,396Other AssetsOption agreement


600,000



600,000Broadcast and intellectual properties,net of accumulated amortization of  $-0-


4,007,249



4,007,249Total Other Assets


4,607,249



4,607,249Total Assets

$
4,620,629


$
4,639,645LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)LiabilitiesCurrent LiabilitiesNote Payable

$
5,000


$
5,000Accounts payable - trade


156,544



153,529Other accrued liabilities


444,209



485,375Accrued officer compensation


469,683



424,683Total Current Liabilities


1,075,436



1,068,587Commitments and ContingenciesShareholders’ Equity (Deficit)Preferred stock - $0.001 par value50,000,000 shares authorized5,000,000 shares designated,issued and outstanding, respectively


5,000



5,000Common stock - $0.001 par value100,000,000 shares authorized5,369,272 and 4,922,222 shares issued and outstanding, respectively


5,369



4,922Additional paid-in capital


5,577,438



5,399,065Deficit accumulated during the development stage


(2,042,614
)


(1,837,929
)Total Shareholders’ Equity (Deficit)


3,545,193



3,571,058Total Liabilities and Shareholders’ Equity

$
4,620,629


$
4,639,645





The financial information presented herein has been prepared by management


without audit by independent certified public accountants.


The accompanying notes are an integral part of these financial statements.


3


Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Consolidated Statements of Operations and Comprehensive Loss


Six and Three months ended June 30, 2010 and 2009 and


Period from October 17, 2003 (date of inception) through June 30, 2010





(Unaudited)


Six months

ended

June 30, 2010


Six months

ended

June 30, 2009


Three months

ended

June 30, 2010


Three months

ended

June 30, 2009


Period from

October 17, 2003

(date of inception)

through

June 30, 2010Revenues

$
-


$
-


$
-


$
-


$
-ExpensesOrganizational and formation expenses


-



-



-



-



89,801Officer compensation


45,000



35,000



22,500



17,500



476,670Other salaries


101,500



65,000



47,250



32,500



538,625Other general and administrative expenses


57,935



52,101



30,693



19,964



928,268Total Expenses


204,435



152,101



100,443



87,771



2,033,364Loss from Operations


(204,453
)


(152,101
)


(100,443
)


(87,771
)


(2,033,364
)Other ExpenseInterest expense


(250
)


-



(125
)


-



(9,250
)Loss before Provision for Income Taxes


(204,685
)


(152,101
)


(100,568
)


(87,771
)

(2,042,614
)Provision for Income Taxes


-



-



-



-



-Net Loss


(204,685
)


(152,101
)


(100,568
)


(87,771
)


(2,042,614
)Other Comprehensive Income


-



-



-



-



-Comprehensive Loss

$
(204,685
)

$
(152,101
)

$
(100,568
)

$
(87,771
)
$
(2,042,614
)Loss per weighted-average share of common stockoutstanding, computed on Net Loss - basic and fully diluted

$
(0.04
)

$
(0.03
)

$
(0.02
)

$
(0.02
)

$
(0.49
)Weighted-average number of shares of common stock outstanding


5,117,660



4,714,835



5,310,950



4,722,621



4,173,056





The financial information presented herein has been prepared by management


without audit by independent certified public accountants.


The accompanying notes are an integral part of these financial statements.


4


Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Consolidated Statements of Cash Flows


Six months ended June 30, 2010 and 2009 and


Period from October 17, 2003 (date of inception) through June 30, 2010





(Unaudited)


Six months

ended

June 30, 2010


Six months

ended

June 30, 2009


Period from

October 17, 2003

(date of inception)

through

June 30, 2010Cash Flows from Operating ActivitiesNet Loss

$
(204,685
)

$
(152,101
)

$
(2,042,614
)Adjustments to reconcile net income to net cash provided by operating activitiesDepreciation


-



-



-Organizational expenses paid with issuance of common and preferred stock


-



-



50,810Expenses paid with common stock


149,960



-



457,390Increase (Decrease) inAccounts payable - trade


3,016



10,624



81,545Accrued liabilities


(41,167
)


71,000



444,208Accrued officers compensation


45,000



33,763



469,683Net cash used in operating activities


(47,876
)


(36,714
)


(538,978
)Cash Flows from Investing Activities


-



-



-Cash Flows from Financing ActivitiesCash proceeds from note payable


-



-



95,000Cash paid to retire note payable


-



-



(90,000
)Cash proceeds from sale of common stock


28,860



25,000



579,290Purchase of treasury stock


-



-



(50,000
)Cash paid to acquire capital


-



-



(15,747
)Capital contributed to support operations


-



-



33,815Net cash provided by financing activities


28,860



25,000



552,358Increase (Decrease) in Cash and Cash Equivalents


(19,016
)


(11,714
)


13,380Cash and cash equivalents at beginning of period


32,396



44,996



-Cash and cash equivalents at end of period

$
13,380


$
33,282


$
13,380Supplemental Disclosures of Interest and Income Taxes PaidInterest paid during the period

$
-


$
-


$
9,150Income taxes paid (refunded)

$
-


$
-


$
-Supplemental Disclosure of Non-cash Investing and Financing ActivitiesIssuance of common stock for downpayment on Asset Purchase Agreement

$



$
-


$
600,000Acquisition of broadcast properties with common stock and accounts payable

$
-


$
-


$
4,007,249





The financial information presented herein has been prepared by management


without audit by independent certified public accountants.


The accompanying notes are an integral part of these financial statements.


5


Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Notes to Consolidated Financial Statements


June 30, 2010 and 2009





Note A - Organization and Description of Business





Signet International Holdings, Inc. (Company) was incorporated on February 2, 2005 in accordance with the Laws of the State of Delaware as 51142, Inc.  The Company changed its corporate name to Signet International Holdings, Inc. in conjunction with the September 8, 2005 transaction discussed below.





On September 8, 2005, pursuant to a Stock Purchase Agreement and Share Exchange (Agreement) by and among Signet International Holdings, Inc. (Signet); Signet Entertainment Corporation (SIG) and the shareholders of SIG (Shareholders) (collectively SIG and the SIG shareholders shall be known as the “SIG Group”), Signet acquired 100.0% of the then issued and outstanding preferred and common stock of SIG for a total of 3,421,000 common shares and 5,000,000 preferred shares of Signet’s stock issued to the SIG Group.  Pursuant to the agreement, SIG became a wholly owned subsidiary of Signet.





Signet Entertainment Corporation was incorporated on October 17, 2003 in accordance with the Laws of the State of Florida.  SIG was formed to establish a television network “The Gaming and Entertainment Network”.  To date, this effort has been incomplete.





The Company is considered in the development stage and, as such, has generated no significant operating revenues and has incurred cumulative operating losses of approximately $2,043,000.





Note B - Preparation of Financial Statements





The acquisition of Signet Entertainment Corporation by Signet International Holdings, Inc. effected a change in control of Signet International Holdings, Inc. and is accounted for as a “reverse acquisition” whereby Signet Entertainment Corporation is the accounting acquirer for financial statement purposes.  Accordingly, for all periods subsequent to the “reverse merger” transaction, the financial statements of the Signet International Holdings, Inc. will reflect the historical financial statements of Signet Entertainment Corporation from its inception and the operations of Signet International Holdings, Inc. subsequent to the September 8, 2005 transaction date.





The Company follows the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America and has a year-end of December 31.





The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.





Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud.  The Company’s system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented.


6


Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Notes to Consolidated Financial Statements - Continued


June 30, 2010 and 2009





Note B - Preparation of Financial Statements - Continued





During interim periods, the Company follows the accounting policies set forth in its annual audited financial statements filed with the U. S. Securities and Exchange Commission on its Annual Report on Form 10-K for the year ended December 31, 2009.  The information presented within these interim financial statements may not include all disclosures required by generally accepted accounting principles and the users of financial information provided for interim periods should refer to the annual financial information and footnotes when reviewing the interim financial results presented herein.





In the opinion of management, the accompanying interim financial statements, prepared in accordance with the U. S. Securities and Exchange Commission’s instructions for Form 10-Q, are unaudited and contain all material adjustments, consisting only of normal recurring adjustments necessary to present fairly the financial condition, results of operations and cash flows of the Company for the respective interim periods presented.  The current period results of operations are not necessarily indicative of results which ultimately will be reported for the full fiscal year ending December 31, 2010.





The accompanying consolidated financial statements contain the accounts of Signet International Holdings, Inc. and its wholly-owned subsidiary, Signet Entertainment Corporation.  All significant intercompany transactions have been eliminated.  The consolidated entities are collectively referred to as “Company”.





Note C - Going Concern Uncertainty





The Company is still in the process of developing and implementing its business plan and raising additional capital.  As such, the Company is considered to be a development stage company.





The Company's continued existence is dependent upon its ability to generate sufficient cash flows from operations to support its daily operations as well as provide sufficient resources to retire existing liabilities and obligations on a timely basis.





The Company anticipates that future sales of equity securities to fully implement its business plan or to raise working capital to support and preserve the integrity of the corporate entity may be necessary.  There is no assurance that the Company will be able to obtain additional funding through the sales of additional equity securities or, that such funding, if available, will be obtained on terms favorable to or affordable by the Company.





If no additional capital is received to successfully implement the Company’s business plan, the Company will be forced to rely on existing cash in the bank and upon additional funds which may or may not be loaned by management and/or significant stockholders to preserve the integrity of the corporate entity at this time.  In the event, the Company is unable to acquire sufficient capital; the Company’s ongoing operations would be negatively impacted.





It is the intent of management and significant stockholders to provide sufficient working capital necessary to support and preserve the integrity of the corporate entity.  However, no formal commitments or arrangements to advance or loan funds to the Company or repay any such advances or loans exist.  There is no legal obligation for either management or significant stockholders to provide additional future funding.





While the Company is of the opinion that good faith estimates of the Company’s ability to secure additional capital in the future to reach our goals have been made, there is no guarantee that the Company will receive sufficient funding to sustain operations or implement any future business plan steps.




7


Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Notes to Consolidated Financial Statements - Continued


June 30, 2010 and 2009





Note D - Summary of Significant Accounting Policies





1.
Cash and cash equivalents





For Statement of Cash Flows purposes, the Company considers all cash on hand and in banks, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents.





2.
Organization costs





The Company has adopted the provisions of provisions required by the Start-Up Activities topic of the FASB Accounting Standards Codification whereby all organizational and initial costs incurred with the incorporation and initial capitalization of the Company were charged to operations as incurred.





3.
Research and development expenses





Research and development expenses are charged to operations as incurred.





4.
Advertising expenses





The Company does not utilize direct solicitation advertising.  All other advertising and marketing expenses are charged to operations as incurred.





5.
Income Taxes





The Company files income tax returns in the United States of America and may file, as applicable and appropriate, various state(s).  With few exceptions, the Company is no longer subject to U.S. federal, state and local, as applicable, income tax examinations by regulatory taxing authorities for years before 2006.  The Company does not anticipate any examinations of returns filed since 2006.





The Company uses the asset and liability method of accounting for income taxes.  At June 30, 2010 and December 31, 2009, respectively, the deferred tax asset and deferred tax liability accounts, as recorded when material to the financial statements, are entirely the result of temporary differences.  Temporary differences generally represent differences in the recognition of assets and liabilities for tax and financial reporting purposes, primarily accumulated depreciation and amortization, allowance for doubtful accounts and vacation accruals.





The Company has adopted the provisions required by the Income Taxes topic of the FASB Accounting Standards Codification.  The Codification Topic requires the recognition of potential liabilities as a result of management’s acceptance of potentially uncertain positions for income tax treatment on a “more-likely-than-not” probability of an assessment upon examination by a respective taxing authority.  As a result of the implementation of the Codification’s Income Tax Topic, the Company did not incur any liability for unrecognized tax benefits.


8


Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Notes to Consolidated Financial Statements - Continued


June 30, 2010 and 2009





Note D - Summary of Significant Accounting Policies - Continued





6.
Earnings (loss) per share





Basic earnings (loss) per share is computed by dividing the net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the respective period presented in our accompanying financial statements.





Fully diluted earnings (loss) per share is computed similar to basic income (loss) per share except that the denominator is increased to include the number of common stock equivalents (primarily outstanding options and warrants).





Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options and warrants, using the treasury stock method, at either the beginning of the respective period presented or the date of issuance, whichever is later, and only if the common stock equivalents are considered dilutive based upon the Company’s net income (loss) position at the calculation date.





At June 30, 2010 and 2009, and subsequent thereto, the Company’s issued and outstanding preferred stock is considered anti-dilutive due to the Company’s net operating loss position.





7.
Pending and/or New Accounting Pronouncements





The Company is of the opinion that any pending accounting pronouncements, either in the adoption phase or not yet required to be adopted, will not have a significant impact on the Company's financial position or results of operations.





Note E - Fair Value of Financial Instruments





The carrying amount of cash, accounts receivable, accounts payable and notes payable, as applicable, approximates fair value due to the short term nature of these items and/or the current interest rates payable in relation to current market conditions.





Interest rate risk is the risk that the Company’s earnings are subject to fluctuations in interest rates on either investments or on debt and is fully dependent upon the volatility of these rates.  The Company does not use derivative instruments to moderate its exposure to interest rate risk, if any.





Financial risk is the risk that the Company’s earnings are subject to fluctuations in interest rates or foreign exchange rates and are fully dependent upon the volatility of these rates.  The company does not use derivative instruments to moderate its exposure to financial risk, if any.


9


Note F - Option Agreement





On July 23, 2008, we executed an Option to Purchase Asset Agreement (Agreement) with Access Media Group, Inc. (a Florida Corporation) dba AMG TV, headquartered in Jensen Beach, FL, to acquire 100% of the assets, satellite delivery service contracts, customer service agreements in the USA and the Caribbean, including the business operations located in Pittsburgh and North New Jersey for an agreed purchase price of $3 million, payable as set forth in the Agreement, and the issuance of 100,000 shares of our restricted, unregistered common stock.  The term of our option is one (1) year and expires on July 22, 2009.  As consideration for the Agreement, the Company issued 20,000 shares of restricted, unregistered common stock to Access Media Group, Inc. with a mutually agreed-upon value of $100,000.





The Company has 180 days to complete the acquisition after serving notice to AMG TV that the Company intends to exercise the option and is actively pursuing capital resources in order to exercise the option and integrate these operations according to the Company’s Business Plan.





On September 18, 2009, the Company and the owners of Access Media Group, Inc. executed an Asset Purchase Agreement whereby the Company will acquire “... one hundred percent (100%) of the Pittsburgh, PA leased facility (and/or any other leased facility owned or leased by Seller), licenses, equipment and ancillaries of the assets listed and identified on Exhibit A which includes a list of Affiliates and Clearances and all other assets including but not limited to intellectual properties, leases, licenses, permits, clients lists, contracts, applications pending or otherwise owned by AMG-TV without lien or security interest.  The purchase price is approximately $3,000,000 composed of 100,000 shares of common stock valued at $5.00 per share and a note payable of $2,500,000.  The $2,500,000 note payable bears interest at prime plus 2%, [accruing from September 18, 2009] and is payable in increments of $100,000 starting on the 180th day after September 18, 2009 and $100,000 every 90 days thereafter.  In the event that the Company is successful in selling any part of a future stock offering, 33.3% of the net proceeds of said offering will be applied to reduction of this note payable up to $1,500,000 or a maximum of the total balance due at that time.





This Purchase Agreement was originally scheduled to close and become effective as of January 1, 2010; however, in March 2010, the Company and Access Media Group, Inc. mutually agreed to defer the closing on this Purchase Agreement with no other changes to the terms and conditions.





Note G - Broadcast and Intellectual Properties





On April 20, 2007, the Company entered into a new purchase agreement with Freehawk for 100% of the rights to 21 television series to be produced by Freehawk exclusively for Signet.  The total consideration paid by the Company for these rights was 270,000 shares of restricted, unregistered common stock and a $50,000 open account payable.  Based on an independent third-party appraisal, the Company valued this transaction at approximately $2,870,625.  The common stock was issued pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended, and no underwriter was used in this transaction.


10


Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Notes to Consolidated Financial Statements - Continued


June 30, 2010 and 2009





Note G - Broadcast and Intellectual Properties - Continued





On May 22, 2007, the Company acquired the exclusive television rights to “Tales From The moe.Republic”, by John E. Derhak.  This full-length novel is in the process of being published and is currently being sold in an abridged, autographed limited edition through the website www.moerepublic.org.  Total consideration paid by the Company for these rights was 113,662 shares of restricted, unregistered common stock and a $25,000 promissory note.  Based on an independent third-party appraisal, the Company valued this transaction at approximately $1,136,600.  The common stock was issued pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended, and no underwriter was used in this transaction.





Note H - Income Taxes





The components of income tax (benefit) expense each of the six and three month periods ended June 30, 2010 and 2009 and for the period from October 17, 2003 (date of inception) through June 30, 2010, are as follows:




Six months

ended

June 30,

2010


Six months

ended

June 30,

2009


Three months

ended

June 30,

2010


Three months

ended

June 30,

2009


Period from

October 17, 2003

(date of inception)

through

June 30,

2010Federal:Current

$
-


$
-


$
-


$
-


$
-Deferred


-



-



-



-



--



-



-



-



-State:Current


-



-



-



-



-Deferred


-



-



-



-



--



-



-



-



-Total

$
-


$
-


$
-


$
-


$
-





As of June 30, 2010, the Company has a net operating loss carryforward of approximately $800,000 for Federal income tax purposes and approximately $690,000 for State income tax purposes.  The amount and availability of any future net operating loss carryforwards may be subject to limitations set forth by the Internal Revenue Code. Factors such as the number of shares ultimately issued within a three year look-back period; whether there is a deemed more than 50 percent change in control; the applicable long-term tax exempt bond rate; continuity of historical business; and subsequent income of the Company all enter into the annual computation of allowable annual utilization of the carryforwards.





(Remainder of this page left blank intentionally)






11


Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Notes to Consolidated Financial Statements - Continued


June 30, 2010 and 2009





Note H - Income Taxes - Continued





The Company's income tax expense (benefit) for each of the six months ended June 30, 2010 and 2009 and for the period from October 17, 2003 (date of inception) through June 30, 2010, respectively, differed from the statutory federal rate of 34 percent as follows:





Six months

ended

June 30,

2010



Six months

ended

June 30,

2009



Period from October 17, 2003 (date of inception) through June30, 2010Statutory rate applied to income before income taxes

$
(69,600
)

$
(49,000
)

$
(694,600
)Increase (decrease) in income taxes resulting from:State income taxes


-



-



-Non-deductible accrued compensation


35,000



32,000



361,000Non-deductible consulting fees related to issuance of common stock at less than “fair value”


-



-



62,000Other, including reserve for deferred tax asset and application of net operating loss carryforward


34,600



17,000



271,600Income tax expense

$
-


$
-


$
-





Temporary differences, consisting primarily of the prospective usage of net operating loss carryforwards give rise to deferred tax assets and liabilities as of June 30, 2010 and December 31, 2009, respectively:





June 30, 2010


December 31, 2009Deferred tax assetsNet operating loss carryforwards

$
333,600


$
237,000Officer compensation deductible when paid


361,000



326,000Less valuation allowance


(694,600
)

(563,000
)Net Deferred Tax Asset

$
-


$
-





During the six months ended June 30, 2010 and the year ended December 31, 2009, respectively, the valuation allowance for the deferred tax asset increased by approximately $131,000 and $100,000.


12


Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Notes to Consolidated Financial Statements - Continued


June 30, 2010 and 2009


Note I - Preferred Stock





On March 14, 2007, the Company formally designated a series of Super Preferred Stock of the Company’s 50,000,000 authorized shares of the capital preferred stock of the Corporation.  The designated Series A Convertible Super Preferred Stock (the "Series A Super Preferred Stock"), to consist of 5,000,00 shares, par value $.001 per share, which shall have the following preferences, powers, designations and other special rights:





Voting:
Holders of the Series A Super Preferred Stock shall have ten votes per share held on all matters submitted to the shareholders of the Company for a vote thereon.  Each holder of these shares shall have the option to appoint two additional members to the Board of Directors.  Each share shall be convertible into ten (10) shares of common stock.





Dividends:
The holders of Series A Super Preferred Stock shall be entitled to receive dividends or distributions on a pro rata basis with the holders of common stock when and if declared by the Board of Directors of the Company.  Dividends shall not be cumulative.  No dividends or distributions shall be declared or paid or set apart for payment on the Common Stock in any calendar year unless dividends or distributions on the Series A Preferred Stock for such calendar year are likewise declared and paid or set apart for payment.  No declared and unpaid dividends shall bear or accrue interest.





Liquidation

Preference
Upon the liquidation, dissolution and winding up of the Company, whether voluntary or involuntary, the holders of the Series A Super Preferred Stock then outstanding shall be entitled to, on a pro-rata basis with the holders of common stock, distributions of the assets of the Corporation, whether from capital or from earnings available for distribution to its stockholders.





The Board of Directors has the authority, without further action by the shareholders, to issue, from time to time, preferred stock in one or more series for such consideration and with such relative rights, privileges, preferences and restrictions that the Board may determine. The preferences, powers, rights and restrictions of different series of preferred stock may differ with respect to dividend rates, amounts payable on liquidation, voting rights, conversion rights, redemption provisions, sinking fund provisions and purchase funds and other matters. The issuance of preferred stock could adversely affect the voting power or other rights of the holders of common stock.





On October 20, 2003, in conjunction with the formation and incorporation of Signet Entertainment Corporation, SIG issued 4,000,000 shares of preferred stock to the incorporating persons.   This transaction was valued at approximately $40,000, which approximates the value of the services provided.





On July 19, 2005, the Company issued 1,000,000 shares of preferred stock to an existing shareholder and Company officer for services related to the organization and structuring of the Company and its proposed business plan.  This transaction was valued at approximately $10,000, which approximates the value of the services provided.





Concurrent with the reverse merger transaction, these shareholders exchanged their Signet Entertainment Corporation preferred stock for equivalent shares of Signet International Holdings, Inc. Series A Super Preferred stock, as described above.


13


Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Notes to Consolidated Financial Statements - Continued


June 30, 2010 and 2009





Note J - Common Stock Transactions





On October 17, 2003 and November 1, 2003, in connection with the incorporation and formation of the Company, an aggregate of approximately 3,294,000 shares of restricted, unregistered shares of common stock and were issued to various founding individuals.  This combined preferred stock and common stock issuances were collectively valued at approximately $40,810, which approximated the fair value of the time provided by the individuals and the related out-of-pocket expenses.





On June 16, 2004 and December 3, 2004, the Company sold, in three separate transactions to three unrelated individuals, an aggregate 70,000 shares of restricted, unregistered common stock for $35,000 cash.  These shares were sold pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended, and no underwriter was used any of the three transactions.





Between July 20, 2005 and August 26, 2005, Signet Entertainment Corporation sold an aggregate 57,000 shares of common stock to existing and new shareholders at a price of $0.01 per share for gross proceeds of approximately $570.  As this selling price was substantially below the “fair value” of comparable transactions, the Company recognized a charge to operations for consulting expense equivalent to the difference between the established “fair value” of $1.00 per share (as determined by the pricing in the September 2005 Private Placement Memorandum) and the selling price of $0.01 per share.





On September 9, 2005, the Company commenced the sale of common stock pursuant to a Private Placement Memorandum in a self-underwritten offering.  This Memorandum is offering for sale to persons who qualify as accredited investors and to a limited number of sophisticated investors, on a best efforts basis, up to 2,000,000 of our common shares at $1.00 per share, for anticipated gross proceeds of $2,000,000.  The common shares will be offered through the Company’s officers and directors on a best-efforts basis.  The minimum investment is $1,000, however, the Company might, at its sole discretion, accept subscriptions for lesser amounts.  Funds received from all subscribers will be released to the Company upon acceptance of the subscriptions by the Company’s management.  Through December 31, 2006, the Company has sold an aggregate 381,000 shares for gross proceeds of $381,000 under this Memorandum.


14


Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Notes to Consolidated Financial Statements - Continued


June 30, 2010 and 2009





Note J - Common Stock Transactions - Continued





On March 31, 2006, the Company repurchased 50,000 shares of common stock from the estate of a deceased shareholder which purchased said shares for $50,000 cash pursuant to the aforementioned September 2005 Private Placement Memorandum for $50,000 cash.  In June 2006, the Company’s Board of Directors cancelled these shares and returned them to unissued status.





On June 22, 2006, the Company issued 250,000 shares of unregistered, restricted common stock, valued at $0.50 per share or $125,000, in payment of consulting fees.  As the  agreed-upon value of the services provided was less than the “fair value” of comparable transactions, the Company has recognized an additional charge to Consulting Fees equivalent to the difference between the established “fair value” of $1.00 per share (as determined by the pricing in the September 2005 Private Placement Memorandum) and the agreed-upon value of $0.50 per share in the corresponding line item in the Company’s Statement of Operations.





On April 16, 2007, the Company issued 270,000 shares of unregistered, restricted common stock for the acquisition of certain broadcast and other production rights.  These shares were sold pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended, and no underwriter was used in this transaction.





On May 2, 2007, the Company sold, in a private transaction, 6,800 shares of unregistered, restricted common stock at a price of $1.00 per share for cash.  These shares were sold pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended, and no underwriter was used in this transaction.





On May 22, 2007, the Company issued 113,662 shares of unregistered, restricted common stock for the acquisition of intellectual properties related to literary works.  These shares were sold pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended, and no underwriter was used in this transaction.





On August 30, 2007, the Company sold, in a private transaction, 12,500 shares of unregistered, restricted common stock at a price of $1.00 per share for cash.  These shares were sold pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended, and no underwriter was used in this transaction.





On June 5, 2008, the Company sold, in a private transaction, 3,000 shares of unregistered, restricted common stock for cash proceeds of $800, which approximated the fair value and closing quoted price of the Company’s common stock on the transaction date.  These shares were sold pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended, and no underwriter was used in this transaction.





On July 24, 2008 the Company issued 20,000 shares of unregistered, restricted common stock as a deposit on and in consideration for a Purchase Option Agreement executed on July 23, 2008 with a TV distribution and syndication company.  The deposit/option fee will be deducted from the total 100,000 shares of unregistered, restricted common stock to be issued upon closing of the transaction upon exercise of the option.   The total shares issued and to be issued are part of the terms of the Purchase Option Agreement that specifies a total purchase price of $3.0 million plus a management contract to be in place shortly after closing.  Terms of the management contract requires a payment of $20,000 per month to the present manager/owner.  The term of Purchase Option Agreement is one year from date of execution.


15


Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Notes to Consolidated Financial Statements - Continued


June 30, 2010 and 2009





Note J - Common Stock Transactions - Continued





On August 19, 2008, the Company sold, in a private transaction, 5,000 shares of unregistered, restricted common stock for cash proceeds of $3,000, which approximated the fair value and closing quoted price of the Company's common stock on the transaction date. These shares were sold pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended, and no underwriter was used in this transaction.





On August 22, 2008, the Company sold, in a private transaction, 174,000 shares of unregistered, restricted common stock for cash proceeds of $55,000, which approximated the fair value and closing quoted price of the Company's common stock on the transaction date. These shares were sold pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended, and no underwriter was used in this transaction.





On May 5, 2009, the Company sold, in a private transaction, 25,000 shares of unregistered, restricted common stock for cash proceeds of $25,000, which approximated the fair value and closing quoted price of the Company's common stock on the transaction date. These shares were sold pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended, and no underwriter was used in this transaction.





On September 18, 2009, in connection with an Asset Purchase Agreement, the Company issued 100,000 shares of common stock valued at $5.00 per share as a down payment against the Agreement.  These shares were issued pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended, and no underwriter was used in this transaction.





On October 26, 2009, the Company, pursuant to an Investment Agreement executed on October 23, 2007, sold 89,260 shares of the Company’s common stock for cash proceeds of approximately $31,241 or $0.35 per share, which approximated the “fair value” of the Company’s common stock on the date of the transaction. This transaction was in accordance with a Registration Rights Agreement executed on November 5, 2007 with a Private Equity Fund whereby the Company agreed to sell an indeterminate amount of its shares to the Fund and provided for the registration of said shares pursuant to a Registration Statement on Form SB-2 under the Securities Act of 1933 as amended. The Company incurred costs of raising capital of approximately $5,300 on this transaction.





On April 7 and 14, 2010 the Company issued in private transactions, 447,050 of unregistered, restricted common stock for and services proceeds of $28,860.00 cash  which includes 325,000 common shares issued to the company's new Chief Operating Officer and 50,000 shares issued to the company's Corporate Counsel in lieu salary and professional service fees. The issue of common stock reflects the company's par value of its common stock. These shares were issued in consideration for services performed for the company and issued pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended.





Note K - Commitments





Leased office space





The Company operates from leased office facilities at 205 Worth Avenue, Suite 316 Palm Beach, FL 33480 under an operating lease.  The lease agreement was originally expired to expire in July 2009 and has been subsequently amended to a month-to-month basis.  The lease currently requires monthly payments of approximately $1,000.  The Company is not responsible for any additional charges for common area maintenance.





The Company also reimburses two non-executive personnel for the use of their personal home offices, which are not exclusive to the Company’s business, at approximately $250 per month.  These agreements are on a month-to-month basis.





For the respective years ended December 31, 2009 and 2008, respectively, the Company paid or accrued an aggregate of approximately $21,068 and $19,325 for rent under all of these agreements.


16


Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Notes to Consolidated Financial Statements - Continued


June 30, 2010 and 2009





Note K - Commitments - Continued





Triple Play Management Agreement





On October 23, 2003, Signet Entertainment Corporation, the wholly-owned subsidiary of the Company, entered into a Management Agreement with Triple Play Media Management (Triple Play) of Peoria, Arizona.  Triple Play is engaged to be the management company to manage and operate any acquired Signet facility in the TV and other Media operations market on a permanent basis for Signet for a period often years (the initial period) with an automatic extension of an additional ten years unless the dissenting party gives proper notice.





Upon Signet's successfully raising the necessary required funding through a secondary offering, Signet will begin funding the working capital requirements of Triple Play for a share of Triple Play's profit.  The working capital commitment will be based on mutually agreed budgets and, at the present time, the company has no requirements for these services.





Big Vision Management Contract





On July 22, 2005, Signet Entertainment Corporation, the wholly-owned subsidiary of the Company, entered into a Management Agreement with Big Vision Studios, a Nevada Limited Liability Company (Big Vision) located in both Las Vegas, Nevada and Burbank, California whereby Big Vision will be the exclusive supplier of High Definition Equipment and Studio rental for Signet in future periods after the completion of a successful secondary public offering of the Company’s securities to provide sufficient operating capital for the establishment of the Company’s network.  At the present time, the Company has no requirements for these services.





Option Agreement





On July 23, 2008, we executed an Option to Purchase Asset Agreement (Agreement) with Access Media Group, Inc. (a Florida Corporation) dba AMG TV, headquartered in Jensen Beach, FL, to acquire 100% of the assets, satellite delivery service contracts, customer service agreements in the USA and the Caribbean, including the business operations located in Pittsburgh and North New Jersey for an agreed purchase price is $3 million, payable as set forth in the Agreement, and the issuance of 100,000 shares of our restricted, unregistered common stock.  The term of our option is one (1) year and expires on July 22, 2009.  As consideration for the Agreement, the Company issued 20,000 shares of restricted, unregistered common stock to Access Media Group, Inc. with a mutually agreed-upon value of $100,000.





The Company has 180 days to complete the acquisition after serving notice to AMG TV that the Company intends to exercise the option and is actively pursuing capital resources in order to exercise the option and integrate these operations according to the Company’s Business Plan.


17


Signet International Holdings, Inc. and Subsidiary


(a development stage enterprise)


Notes to Consolidated Financial Statements - Continued


June 30, 2010 and 2009





Note K - Commitments - Continued





On September 18, 2009, the Company and the owners of Access Media Group, Inc. executed an Asset Purchase Agreement whereby the Company will acquire “... one hundred percent (100%) of the Pittsburgh, PA leased facility (and/or any other leased facility owned or leased by Seller), licenses, equipment and ancillaries of the assets listed and identified on Exhibit A which includes a list of Affiliates and Clearances and all other assets including but not limited to intellectual properties, leases, licenses, permits, clients lists, contracts, applications pending or otherwise owned by AMG-TV without lien or security interest.  The purchase price is approximately $3,000,000 composed of 100,000 shares of common stock valued at $5.00 per share and a note payable of $2,500,000.  The $2,500,000 note payable bears interest at prime plus 2%, [accruing from September 18, 2009] and is payable in increments of $100,000 starting on the 180th day after September 18, 2009 and $100,000 every 90 days thereafter.  In the event that the Company is successful in selling any part of a future stock offering, 33.3% of the net proceeds of said offering will be applied to reduction of this note payable up to $1,500,000 or a maximum of the total balance due at that time.





This Purchase Agreement was originally scheduled to close and become effective as of January 1, 2010; however, in March 2010, the Company and Access Media Group, Inc. mutually agreed to defer the closing on this Purchase  Agreement with no other changes to the terms and conditions.





Licensing Agreement





On April 6, 2009, the Company entered into an Exclusive Licensing Agreement (Agreement) with Kerner Broadcasting Corporation, a Nevada Corporation (KBC) and Signet Entertainment Corporation, the Company’s wholly-owned subsidiary.  Pursuant to the Agreement, KBC grants to the Company, through it’s subsidiary, the exclusive, nontransferable right and license to use, market, sell, and otherwise to commercialize KBC’s  3-D television technology.





On April 9, 2010, one of the principals of KBC confirmed to the Company that at the time it entered into the Agreement with us, KBC did not own the rights to the above referenced 3D technology and that KBC has since ceased all operations and has been dissolved as a corporation. We, in consultation with our legal counsel, are considering all available legal remedies that may be available as a consequence of KBC's conduct relative to this matter. However, the possibility of any recovery from an action we initiate may be remote.





As our management believes that this technology will be the next breakthrough in television production and broadcasting, we have started preliminary confidential negotiations with two other 3D technology developers that we believe have a viable product in an effort to obtain the required technology for the continued development of a 3D TV Network.





On May 25, 2010 Signet 3-D Entertainment, Inc., a wholly owned subsidiary of Signet International Holdings, Inc. (“Signet”), executed a Binding Letter of Intent for the acquisition of 100% of the assets of  Pllx3, Inc. (“PllX3”), a Delaware corporation with operations in Santa Clarita, CA. The company is engaged in the business of designing, deploying and marketing state of the art 3-D technology, equipment, delivery and display systems. The company will exchange its common stock representing an equivalent Class A Common share purchase price of $5.00 per share for 100% of Pllx3 Capital stock. The total purchase price will be determined after receipt of the results of an independent audit of PllX3.





On May 25, 2010 Signet 3-D Entertainment, Inc. wholly owned subsidiary of Signet International Holdings, Inc. executed a Binding Letter of Intent for the acquisition of 100% of the assets of Visual 3-D Impressions, Inc a California corporation with on site stage operations located in Santa Clarita, CA. Visual 3-D Impressions, Inc.(“V3DI”), is a 3-D technology company holding numerous patents, copyrights, intellectual technology controlled by a group of globally recognized builders in the science of stereoscopic, auto stereoscopic displays, delivery and converters. The company will exchange its common stock representing an equivalent Class A Common share purchase price of $5.00 per share for 100% of Visual 3- D Impressions, Inc., shares of Capital Stock. The total purchase price will be determined after receipt of the results of an independent audit of V3DI.





Note L - Subsequent Events





Management has evaluated all activity of the Company through the filing date and concluded that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to financial statements.


18


Part I - Item 2





Management’s Discussion and Analysis of Financial Condition and Results of Operations





(1)
Caution Regarding Forward-Looking Information





Certain statements contained in this quarterly filing, including, without limitation, statements containing the words "believes", "anticipates", "expects" and words of similar import, constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.





Such factors include, among others, the following: international, national and local general economic and market conditions: demographic changes; the ability of the Company to sustain, manage or forecast its growth; the ability of the Company to successfully make and integrate acquisitions; raw material costs and availability; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; changes in business strategy or development plans; business  disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; and other factors referenced in this and previous filings.





Given these uncertainties, readers of this Form 10-Q and investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.





(2)       Results of Operations





We had no revenue for either of the respective month periods ended June 30, 2010 or 2009, respectively.





General and administrative expenses for the six months ended June 30, 2010 and 2009 were approximately $58,000 and $52,000, respectively. These costs relate principally to the maintenance of our corporate offices, compliance with the periodic reporting requirements of the Securities Exchange Act of 1934, as amended, and continued efforts to implement our business plan.





For the six months ended June 30, 2010 and 2009, we accrued compensation to our chief executive officer, Ernest W. Letiziano of $45,000 and $35,000 for each respective period. We further accrued compensation to non-executive personnel for their assistance in our efforts to implement our business plan of approximately $101,499 and $65,000 for each respective period. None of these persons has made a demand for payment and have agreed to defer payment until such time that the Company has a viable and functioning business plan with positive cash flows from operations.





Our net loss for the six months ended June 30, 2010 and 2009, respectively, was approximately $(205,000) and $(152,000).  Our earnings per share for the respective quarters ended June 30, 2010 and 2009 were approximately $(0.02) and $(0.02) based on the respective weighted-average shares issued and outstanding at the end of the respective period.





The Company does not expect to generate any meaningful revenue or incur operating expenses for purposes other than fulfilling the obligations of a reporting company under the Securities Exchange Act of 1934 unless and until such time that the Company’s operating subsidiary begins meaningful operations.





At June 30, 2010 and December 31, 2009, respectively, the Company had working capital of approximately $(210,000) and $(180,000), exclusive of accrued officer and other compensation.  As noted previously, none of these persons has made a demand for payment and have agreed to defer payment until such time that the Company has a viable and functioning business plan with positive cash flows from operations.




19





(3)     Plan of Business





During the preceding periods, the Company has endeavored to secure funding to implement our business plan relating to the acquisition of LPTV stations by initiating the negotiation of Sale & Share Exchange Contracts with the owners of various identified LPTV Stations. In connection with the current U. S. economy, we have experienced a significant reluctance of investors willing to enter into debt or equity financing. It has been determined that to spend additional time to pursue funding in the TV and Media industry other than the acquisition of AMG TV, Signet will seek only those investors interested in funding the AMG TV acquisition and operations. Based upon our ongoing review and understanding of the marketplace today, we believe that we will not be able to take the appropriate steps to effectuate the acquisition of LPTV station(s) in the foreseeable future. However, our current financial condition and the condition of the capital markets in today's environment may not allow us to complete any acquisition in a timely manner including the acquisition of AMG TV.





At the present time, management has no commitments for raising additional operating capital. Accordingly, our future cash requirements are anticipated to be met through the sale of additional equity securities, short-term loans from executive officers and/or the proceeds of additional equity offerings in conjunction with the acquisition of AMG TV. Although we have verbal assurances from Mr. Letiziano that he will provide such interim working capital, there is no legal obligation for either management or significant stockholders to provide additional future funding. We may raise additional funds through public offerings of equity, securities convertible into equity or debt, or private offerings of securities.





On July 23, 2008, we executed an Option to Purchase Asset Agreement (Agreement) with Access Media Group, Inc.


(a Florida Corporation) dba AMG TV, headquartered in Jensen Beach, FL, to acquire 100% of the assets, satellite delivery service contracts, customer service agreements in the USA and the Caribbean, including the business operations located in Pittsburgh and North New Jersey for an agreed purchase price is $3 million, payable as set forth in the Agreement, and the issuance of 100,000 shares of our restricted, unregistered common stock. The term of our option was for one (1) year and expired on July 22, 2009. As consideration for the Agreement, we issued 20,000 shares of restricted, unregistered common stock to Access Media Group, Inc. and we have up to 180 days to complete the acquisition after serving notice to AMG TV that we intend to exercise the option. Our management has been actively pursuing the necessary capital resources to exercise the option and integrate these operations according to our Business Plan.





(4)     Capital Resources and Liquidity





As of June 30, 2010, we had approximately $13,000 in cash.  Our monthly cash requirements have been reduced to approximately $8,000 per month.  Given our current circumstances, we will continue to have additional sources of cash to preserve our plan of operation or terminate all activities.





It is the belief of management and significant stockholders that they will provide sufficient working capital necessary to support and preserve the integrity of the corporate entity.   However, there is no legal obligation for either management or significant stockholders to provide additional future funding.  Further, the Company is at the mercy of future economic trends and business operations for the Company’s majority stockholder to have the resources available to support the Company.  Should this pledge fail to provide financing, the Company has not identified any alternative sources.  Consequently, there is substantial doubt about the Company's ability to continue as a going concern.




20





As reflected in the accompanying financial statements, we are in the development stage with no operations.  Our ability to continue as a going concern is dependent on our ability to raise additional capital and implement our business plan. The financial  statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.  We have no plans to pay no salaries per month to our sole officer and employee until we are properly funded. We intend to raise additional capital to continue our operations although there is no assurance we will be successful. Currently we have no material commitments to make capital expenditures.





Our need for capital may change dramatically as a result of any business acquisition or combination transaction.  There can be no assurance that we will identify any such business, product, technology or company suitable for acquisition in the future.  Further, there can be no assurance that we would be successful in consummating any acquisition on favorable terms or that it will be able  to profitably manage the business, product, technology or company it acquires.





Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for us to continue as a going concern.  The Company is still in the process of developing and implementing its business plan and raising additional capital.  As such, the Company is considered to be a development stage company.





(5)
Critical Accounting Policies





Our financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States (“GAAP”).  GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue and expense amounts reported.  These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition.  We believe our use if estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied.  We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances.  Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.





Our significant accounting policies are summarized in Note D of our financial statements.  While all these significant accounting policies impact our financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates.  Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our consolidated results of operations, financial position or liquidity for the periods presented in this report.





Item 3 - Quantitative and Qualitative Disclosures About Market Risk





The Company may be subject to certain market risks, including changes in interest rates and currency exchange rates.  At the present time, the Company does not undertake any specific actions to limit those exposures.




21





Item 4 - Controls and Procedures





(a)
Evaluation of Disclosure Controls and Procedures





The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the U. S. Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures, which, by their nature, can provide only reasonable assurance regarding management's control objectives.





The Company carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, on the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Exchange Act Rules 13a-15 and 15d-15 as of the end of the period covered by this report.  Based upon that evaluation, the Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures are effective in timely alerting them to information relating to the Company required to be included in the Company's Exchange Act reports.





While the Company believes that its existing disclosure controls and procedures have been effective to accomplish their objectives, the Company intends to continue to examine, refine and document its disclosure controls and procedures and to monitor ongoing developments in this area.





(b)
Changes in Internal Controls





During the quarter ended June 30, 2010, there were no changes (including corrective actions with regard to significant deficiencies or material weaknesses) in the Company's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.





Part II - Other Information





Item 1 - Legal Proceedings





From time to time, as we acquire operating properties, we may become subject to various legal proceedings that are incidental to the ordinary conduct of its business.  Although, to date, there have been no such proceedings, we do not anticipate that any future proceedings, either individually or in the aggregate, will become material to our business or be likely to result in a material adverse effect on our future operating results, financial condition, or cash flows.




22





Item 2 - Recent Sales of Unregistered Securities and Use of Proceeds





On September 18, 2009, the Company and the owners of Access Media Group, Inc. executed an Asset Purchase Agreement whereby the Company will acquire one hundred percent (100%) of the Pittsburgh, PA leased facility (and/or any other leased facility owned or leased by Seller), licenses, equipment and ancillaries of the assets listed and identified on Exhibit A which includes a list of Affiliates and Clearances and all other assets including but not limited to intellectual properties, leases, licenses, permits, clients lists, contracts, applications pending or otherwise owned by AMG-TV without lien or security interest.  The purchase price will be approximately $3,000,000 composed of 100,000 shares of common stock valued at $5.00 per share and a note payable of $2,500,000.  The $2,500,000 note payable will bear interest at prime plus 2%accruing from September 18, 2009 and is payable in increments of $100,000 starting on the 180th day after September 18, 2009 and $100,000 every 90 days thereafter.  In the event that the Company is successful in selling any part of a future stock offering, 33.3% of the net proceeds of said offering will be applied to reduction of this note payable up to $1,500,000 or a maximum of the total balance due at that time.





This Purchase Agreement was originally scheduled to close and become effective as of January 1, 2010; however, in March 2010, the Company and Access Media Group, Inc. mutually agreed to defer the closing on this Purchase Agreement with no other changes to the terms and conditions.





Item 3 - Defaults on Senior Securities





None





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





The Company has held no regularly scheduled, called or special meetings of shareholders during the reporting period.





Item 5 - Other Information





None





Item 6 - Exhibits and Reports on Form 8-K





(a)
Exhibits





31.1 Certifications pursuant to Section 302 of Sarbanes Oxley Act of 2002





32.1 Certifications pursuant to Section 906 of Sarbanes Oxley Act of 2002





(b)
Reports of Form 8-K





On April 9, 2010  the Company filed a Form 8-k with the SEC Changes in Registrant's Certifying Accountant





On April 4, 2010  the Company filed a Form 8-k with the SEC Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements ofCertain Officers





On May 11, 2010  the Company filed a Form 8-k with the SEC Changes in Registrant's Certifying Accountant





On May 25, 2010 the Company filed a Form 8-k with the SEC Entry into a Material Definitive Agreement





On May 25, 2010 the Company filed a Form 8-k with the SEC Entry into a Material Definitive Agreement


23


SIGNATURES





In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.





Signet International Holdings, Inc.Date: August 16, 2009

/s/ Ernest W. LetizianoErnest W. LetizianoPresident and Director














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