UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


___________________





FORM 10-K





x
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended June
30, 2009o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934





Commission file number  0-52493





VERACITY MANAGEMENT GLOBAL, INC.


(Exact Name Of Registrant As Specified In Its Charter)





Delaware
43-1889792(State of Incorporation)
(I.R.S. Employer Identification No.)7682 N Federal Highway #1Boca Raton, FL 33487
33134(Address of Principal Executive Offices)
(ZIP Code)





Registrant's Telephone Number, Including Area Code: (561) 998-8425




Securities registered under Section 12(b) of the Exchange Act: None




Securities registered under Section 12(g) of the Exchange Act:




COMMON STOCK, $.001 PAR VALUE


(Title of Class)





Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x Noo





Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant's knowledge, in the definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB.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 x No o




On October 6, 2009, the aggregate market value of the 8,075,966 common stock held by non-affiliates of the Registrant was approximately $12,922. On October 6, 2009, the Registrant had 16,643,057 shares of common stock outstanding.





Large Accelerated Filer o

Accelerated Filer o

Non-Accelerated Filer o (Do not check if a smaller reporting company)

Smaller Reporting Company x











VERACITY MANAGEMENT GLOBAL, INC.




Index


PART IITEM1.

Description of Business

3ITEM 1A.

Risk Factors

4ITEM 1B

Unresolved Staff Comments

11ITEM 2.

Description of Property

11ITEM 3.

Legal Proceedings

11ITEM 4.

Submission of Matters to a Vote of Security Holders

11PART IIITEM 5.

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

12ITEM 6.

Select Financial Data

13ITEM 7.

Management’s Discussion and Analysis or Plan of Operations

13ITEM 7-A.

Quantitative and Qualitative Disclosures About Market Risk

16ITEM 8.

Financial Statements

17ITEM 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

28ITEM 9-A.

Controls and Procedures

28ITEM 9-B

Other Information

28PART IIIITEM 10.

Directors, Executive Officers, Promoters and Control Persons; Compliance With Section 16(a) of the Exchange Act

29ITEM 11.

Executive Compensation

30ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

31ITEM 13.

Certain Relationships and Related Transactions, and Director Independence

32ITEM 14.

Principal Accountant Fees and Services

32PART IVITEM 15.

Exhibits and Financial Statement schedules

34











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Cautionary Note Regarding Forward-Looking Statements




This report contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, that are based on management’s exercise of business judgment as well as assumptions made by, and information currently
available to, management. When used in this document, the words “may”, “will”, “anticipate”, “believe”, “estimate”, “expect”, “intend”, and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect our current view of future events and are subject to certain risks and uncertainties as noted below. Should one
or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize.







ITEM 1. DESCRIPTION OF BUSINESS




As used in this registration statement, unless the context requires otherwise, the terms “Veracity Management Group, Inc.,” “we,” “our,” or “us,” refer to Veracity Management Group, Inc. and where the context requires, our subsidiaries.




Background of the Registrant




The Registrant was incorporated in the State of Delaware on April 7, 2000 under the name Intertech Corporation and is publicly traded on the NASDAQ OTCBB under the symbol VCMG. On July 28, 2001, the Registrant acquired Wholesale Merchandisers, Inc. through a share exchange agreement and Wholesale Merchandisers, Inc. became a wholly-owned
subsidiary of the Registrant. Wholesale Merchandisers' primary asset was a technology called "Load Toter Technology", which is a vehicle balancing bar that automatically balances as weight is applied to a vehicle. The Registrant's wholly-owned subsidiary ceased operations in May 2002. In connection with discontinuing its former business operations the Registrant changed its name from Intertech Corporation to Kirshner International Inc. During the period from May 2002 until the Registrant's acquisition of its
operating subsidiaries, Veracity Management Group, a Florida corporation ("VMG") and Secured Financial Data Inc., a Florida corporation ("SFD") effective on July 1, 2006, the Registrant had only limited business operations. In January 2005 the Registrant announced its intention to develop an Internet-based broadcast channel and in June 2005 the Registrant entered into a licensing and advertising agreement with Yadio, Inc., an Internet technology and marketing firm, to operate the Registrant's Internet broadcast
website. The Registrant's objective was  to generate revenues from its broadcast channel. However, the Registrant was not successful in raising funding necessary for this project and failed to generate any revenues. It ceased its Internet broadcast business activities in the third quarter of 2005. As a result, the financial statements of the Registrant for the years ended June 30, 2007 and 2006 are not comparable. The financial statements of the Registrant for the years ended June 30, 2008 and 2007 are comparable




Subsequent to June 30, 2008




On July 7, 2008 effective July 1, 2008 the former control persons on the parent company exercised its rights under the exchange agreement to affect the rescission on the mergers of VMG and SFD based on the non performance of the financial governance of the agreement within the two year period outlined by the agreement. There were 20,105,538
shares cancelled as part of the agreement and the operating companies, (VMG and SFD) were returned to the control persons, whom shares were cancelled, before the merger. As of July 1, 2008 the Registrant has no operating business. The business going forward is to acquire a target company or business seeking the perceived advantages of being a publicly held corporation. Our principal business objective for the next 12 months and beyond such time will be to achieve long-term growth potential through a combination
with a business rather than immediate, short-term earnings. The Company will not restrict our potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business.







- 3 -










Acquisition of Veracity Management Global, Inc and Secured Financial Data Inc.




On July 1, 2006, the Registrant entered into share exchange agreements with Secured Financial Data Inc. ("SFD"), a Florida corporation and Veracity Management Group ("VMG"), a Florida corporation, which resulted in SFD and VMG becoming wholly-owned subsidiaries of the Registrant. The Registrant issued 19,047,685 restricted shares of common
stock to the shareholders of SFD and 3,535,353 restricted shares of common stock to the shareholder of VMG in exchange of 100% of the issued and outstanding shares of SFD and VMG. In connection with these acquisitions in September 2006, the Registrant changed its name to Veracity Management Global, Inc and issued 11,985,413 shares for management and consulting services valued at their fair value of $1,345,904. On July 7,2008 effective July 1, 2008 the former control persons on the parent company exercised its
rights under the exchange agreement to affect the rescission on the merger based on the non performance of the financial governance of the agreement within the two year period outlined in the agreement. There were 20,105,538 shares cancelled as part of the agreement and the operating companies, (VMG and SFD) were returned to the original shareholders before the merger. As of July 1, 2008 the Registrant has no operating business.




As of July 7, 2008, we began being a development stage company.  Our business plan is to evaluate, structure and complete a merger with, or acquisition of, prospects consisting of private companies, partnerships or sole proprietorships.  Except as described above, our only activities have been organizational ones,
directed at developing its business plan and raising capital.  We have not commenced any commercial operations and have no full-time employees.  As of the end of its fiscal year ending June 30, 2009, we have not reached any definitive understanding with any business opportunity concerning an acquisition.  No assurance can be given that we will be successful in finding or acquiring a desirable business opportunity, given the limited funds that are expected to be available for acquisitions,
or that any acquisition that occurs will be on terms that are favorable to us or our stockholders.





General Business Plan





We propose to seek, investigate and, if warranted, acquire an interest in one or more business ventures. Our strategy is directed on ventures which are developing companies or established businesses that desire to have a public trading market for its common stock. After we have conducted a merger or acquisition, the surviving entity will
be us; however, management from the acquired entity will in all likelihood be retained to operate us. Due to an absence of capital available for investment by us, the types of business seeking to be acquired by us will likely be small and high risk. In all likelihood, a business opportunity will involve the acquisition of or merger with a corporation which desires to establish a public trading market for its common stock.





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





It is anticipated that business opportunities will be sought by us from various sources throughout the United States, including our officer and director, significant shareholders, professional advisors such as attorneys and accountants, securities broker dealers, venture capitalists, members of the financial community, other businesses
and others who may present solicited and unsolicited proposals. Our management believes that business opportunities and ventures will become available to it due to a number of factors, including, among others: (1) management's willingness to enter into unproven, speculative ventures; (2) management's contacts and acquaintances; and (3) our flexibility with respect to the manner in which it may structure a potential financing, merger or acquisition. However, there is no assurance that we will be able to structure,
finance, merge with or acquire any business opportunity or venture.





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Operation of Veracity Management Global, Inc.





We intend to search throughout the United States for a merger or acquisition candidate; however, because of our lack of capital, we believe that the merger or acquisition candidate will be conducting business within a limited geographical area. We intend to maintain our corporate headquarters and principal place of business at 7682 N
Federal Highway #1, Boca Raton, FL 33487. All corporate records will be maintained at said office, and it is anticipated that all shareholders' meetings will take place in Colorado. In the event that a merger or acquisition of us takes place, no assurance can be given that the corporate records or headquarters will continue to be maintained in Florida, or that shareholders' meetings will be held in Florida.





Our management and other related parties will seek acquisition/merger candidates or orally contact individuals or broker dealers and advise them of the availability of the Company as an acquisition candidate. Our management along with other related parties  will review material furnished to them by the proposed merger or acquisition
candidates and will ultimately decide if a merger or acquisition is in the best interests of the Company and it’s shareholders.





We may employ outside consultants until a merger or acquisition candidate has been targeted by us, however, management believes that it is impossible to consider the criteria that will be used to hire such consultants. While we may hire independent consultants, the Company has not considered any criteria regarding their experience, the
services to be provided, or the term of service. As of the date hereof, and as disclosed herein, there are no other plans for accomplishing our business plan.





Selection of Opportunities





The analysis of new business opportunities will be undertaken by or under the supervision of our executive officer and other related parties, who are not professional business analysts and have had little previous training in business analysis. Inasmuch as we have limited funds available to us in our search for business opportunities
and ventures, we will not be able to expend significant funds on a complete and exhaustive investigation of such business or opportunity. We will, however, investigate, to the extent believed reasonable by our management, such potential business opportunities or ventures.





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





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





It is anticipated that the investigation of specific business opportunities and the negotiation, drafting and execution of relevant agreements, disclosure documents and other instruments will require substantial management time and attention and costs for accountants, attorneys and others. In order to meet our liquidity needs during the
next fiscal year, we may receive additional financing from our officer, director and stockholders.








- 5 -





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





·
Potential for growth, indicated by new technology, anticipated market expansion or new products;


·
Competitive position as compared to other firms engaged in similar activities;


·
Strength of management;


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


·
Other relevant factors.





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





We are unable to predict when we may participate in a business opportunity. We expect, however, that the analysis of specific proposals and the selection of a business opportunity may take several months or more.





Form of Merger or Acquisition





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





As set forth above, we may acquire participation in a business opportunity through the issuance of our common stock or other securities in us. Although the terms of any such transaction cannot be predicted, it should be noted that in certain circumstances the criteria for determining whether or not an acquisition is a so-called "tax free"
reorganization under Section 368(a)(1) of the Internal Revenue Code of 1954, as amended, may depend upon the issuance to the shareholders of the acquired company of at least 80% of the common stock of the combined entities immediately following the reorganization. If a transaction were structured to take advantage of these provisions rather than other "tax free" provisions provided under the Internal Revenue Code, all prior shareholders may, in such circumstances, retain 20% or less of the total issued and outstanding
common stock. If such a transaction were available to us, it may be necessary to obtain shareholder approval to effectuate a reverse stock split or to authorize additional shares of common stock prior to completing such acquisition. This could result in substantial additional dilution to the equity of those who were our shareholders prior to such reorganization. Further, extreme caution should be exercised by any investor relying upon any tax benefits in light of the proposed new tax laws. It is possible that
no tax benefits will exist at all. Prospective investors should consult their own legal, financial and other business advisors.





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





We have an unwritten policy that it will not acquire or merge with a business or company in which our management or our affiliates or associates directly or indirectly have a controlling interest. Our management is not aware of any circumstances under which the foregoing policy will be changed and our management, through its own initiative,
will not change said policy.





- 6 -








Pursuant to regulations promulgated under the Securities Exchange Act of 1934, as amended, we will be required to obtain and file with the SEC audited financial statements of an acquired company within four days from the date the transaction is completed.





Competition





We will remain an insignificant participant among the firms which engage in the acquisition of business opportunities. There are many established venture capital and financial concerns that have significantly greater financial and personnel resources and technical expertise than us. In view of our combined extremely limited financial
resources and limited management availability, we will continue to be at a significant competitive disadvantage compared to our competitors.





Government Regulation





We are subject to the disclosure requirements of the SEC. In addition, certain provisions of the Sarbanes-Oxley Act of 2002 either are or, by June 30, 2010, may become, applicable to the Company, which could affect the willingness of companies to enter into a business combination with the Company. The SEC and other federal agencies and
state legislatures could adopt rules or laws that restrict “reverse mergers” of a nature we may consider. We also may be subject to increased governmental regulation following any business combination or other transaction we may consummate. It is impossible to predict the nature or magnitude of such regulation, if any.





Employees





We currently have no employees. Our officer has agreed to allocate a portion of his time to the activities of us, without compensation and we expect to continue to use, consultants, attorneys and accountants as necessary. It is not expected that we will have any full-time or other employees, except as may result as a result of consummating
a business combination or other transaction.





Item 1A. Risk Factors





Cautionary Statements Regarding Future Results of Operations





You should read the following cautionary statements in conjunction with the factors discussed elsewhere in this and other of our filings with the Securities and Exchange Commission (SEC) and in materials incorporated by reference in these filings.  These cautionary statements are intended to highlight certain factors that may
affect our financial condition and results of operations and are not meant to be an exhaustive discussion of risks that apply to companies like ours.  Like other companies, we are susceptible to macroeconomic downturns in the United States or abroad that may affect the general economic climate and our performance.





No operating history or revenue and minimal assets





We have very limited operating history and no revenues or earnings from operations. There are no significant assets or financial resources. We will, in all likelihood, sustain operating expenses without corresponding revenues, at least until the consummation of a business combination. This may result in our incurring a net operating loss
which will increase continuously until we can consummate a business combination with a target company. There is no assurance that we can identify such a target company and consummate such a business combination.





Adequate financing may not be available when needed





We have had loans from several of our shareholders, who are also an officer and director and the other is a director, to fund operating activities. The loans to date are a total of $57,055. While future operating activities are expected to be funded by the officers and directors, additional sources of funding would be required to continue
operations.  There is no assurance that we could raise working capital or if any capital would be available at all.  Failure to obtain financing when needed could result in curtailing operations, acquisitions or mergers and investors could lose some or all of their investment.





- 7 -





Speculative nature of our proposed operations





The success of our proposed plan of operation will depend to a great extent on the operations, financial condition and management of the identified target company. While our management would prefer business combinations with entities having established operating histories, there can be no assurance that we will be successful in locating
candidates meeting such criteria. In the event that we complete a business combination, of which there can be no assurance, the success of our operations will be dependent upon the management of the target company and numerous other factors beyond our control.





Scarcity of and competition for business opportunities and combinations





We are and will continue to be an insignificant participant in the business of seeking mergers with and acquisitions of business entities. A large number of established and well-financed entities, including venture capital firms, are active in mergers and acquisitions of companies which maybe merger or acquisition target candidates for
us. Nearly all such entities have significantly greater financial resources, technical expertise and managerial capabilities than us and, consequently, we will be at a competitive disadvantage in identifying possible business opportunities and successfully completing a business combination. Moreover, we will also compete with numerous other small public companies in seeking merger or acquisition candidates.





No agreement for business combination or other transaction that is not subject to contingencies - No standards for business combination





We have no current arrangement, agreement or understanding with respect to engaging in a merger with or acquisition of a specific business entity, there can be no assurance that we will be successful in identifying and evaluating any other suitable business opportunities or in concluding a business combination. In evaluating any businesses,
our management has not identified any particular industry or specific business within an industry for evaluation by us. There is no assurance that we will be able to negotiate a business combination on terms favorable to us. We have not established a specific length of operating history or a specified level of earnings, assets, net worth or other criteria which we would require a target company to have achieved, or without which we would not consider a business combination with such business entity. Accordingly,
we may enter into a business combination with a business entity having no significant operating history, losses, limited or no potential for immediate earnings, limited assets, negative net worth or other negative characteristics.





Continued management control, limited time availability





While seeking a business combination, management anticipates devoting only a limited amount of time per month to our business.  Our officer has not entered into a written employment agreement with us and is not expected to do so in the foreseeable future. We have not obtained key man life insurance on our officer or director.
Notwithstanding the combined limited experience and time commitment of our management, loss of the services of this individual would adversely affect development of our business and its likelihood of continuing operations.





Conflicts of interest - General





Our officers and directors participates in other business ventures which may compete directly with us. We have an unwritten policy that we will not acquire or merge with a business or company in which our management or their affiliates or associates directly or indirectly have a controlling interest.  Our management is not aware
of any circumstances under which the foregoing policy will be changed and our management, through their own initiative, will not change said policy. Refer to “ITEM 13. Certain Relationships and Related Transactions, and Director Independence.”








- 8 -





Reporting requirements may delay or preclude acquisitions





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





Lack of market research or marketing organization





We have neither conducted, nor have others made available to us, market research indicating that demand exists for the transactions contemplated by the Company. Even in the event demand exists for a merger or acquisition of the type contemplated by the Company, there is no assurance that we would be successful in completing any such business
combination.





Lack of diversification





Our proposed operations, even if successful, will in all likelihood result in us engaging in a business combination with only one business entity. Consequently, our activities will be limited to those engaged in by the business entity which we merge with or acquire. Our inability to diversify our activities into a number of areas may
subject us to economic fluctuations within a particular business or industry and therefore increase the risks associated with our operations.





Regulation under Investment Company Act





Although we will be subject to regulation under the Exchange Act, management believes we will not be subject to regulation under the Investment Company Act of 1940, as amended (the “Investment Company Act”), since we will not be engaged in the business of investing or trading in securities. If we engage in business combinations
which result in our holding passive investment interests in a number of entities, we could be subject to regulation under the Investment Company Act. If so, we would be required to register as an investment company and could be expected to incur significant registration and compliance costs. We have obtained no formal determination from the Securities and Exchange Commission as to our status under the Investment Company Act and, consequently, any violation of such Act could subject us to material adverse consequences.





Probable change in control and management





A business combination involving the issuance of our common stock will, in all likelihood, result in shareholders of a target company obtaining a controlling interest in us. Any such business combination may require our shareholders to sell or transfer all or a portion our common stock held by them. The resulting change in control of
the Company will likely result in removal of our present officer and director and a corresponding reduction in or elimination of their participation in our future affairs.





Reduction of percentage share ownership following business combination





Our primary plan of operation is based upon a business combination with a business entity which, in all likelihood, will result in us issuing securities to shareholders of such business entity. The issuance of previously authorized and unissued common stock of us would result in a reduction in percentage of shares owned by our present
shareholders and would most likely result in a change in control and management of the Company.








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No dividends





We have not paid dividends on our common stock to date and we do not presently intend to pay dividends prior to the consummation of a business combination.   The payment of dividends after a business combination, if any, will be contingent upon the Company’s revenues and earnings, if any, capital requirements and
general financial condition subsequent to consummation of a business combination.  The payment of any dividends subsequent to consummation of a business combination will be within the discretion of our then Board of Directors.  It is the present intention of the Board of Directors to retain all earnings, if any, for use in our business operations and, accordingly, the Board does not anticipate paying any cash dividends in the foreseeable future.





Taxation





Federal and state tax consequences will, in all likelihood, be major considerations in any business combination that we may undertake. Currently, such transactions may be structured so as to result in tax-free treatment to both companies, pursuant to various federal and state tax provisions. We intend to structure any business combination
so as to minimize the federal and state tax consequences to both us and the target company; however, there can be no assurance that such business combination will meet the statutory requirements of a tax-free reorganization or that the parties will obtain the intended tax-free treatment upon a transfer of stock or assets. A non-qualifying reorganization could result in the imposition of both federal and state taxes which may have an adverse effect on both parties to the transaction.





Requirement of audited financial statements may disqualify business opportunities





Our management will request that any potential business opportunity provide audited financial statements. One or more attractive business opportunities may choose to forego the possibility of a business combination with us rather than incur the expenses associated with preparing audited financial statements. In such case, we may choose
to obtain certain assurances as to the target company's assets, liabilities, revenues and expenses prior to consummating a business combination, with further assurances that an audited financial statement would be provided after closing of such a transaction.  Closing documents relative thereto may include representations that the audited financial statements will not materially differ from the representations included in such closing documents.





Restriction on Rule 144 sales for a “blank check “company may discourage potential business combinations





Effective February 15, 2008, the U. S. Securities and Exchange Commission (the “SEC”) approved amendments to Rule 144 of the Securities Act of 1933 (“Rule 144”).  The amended rules include new treatment for the sale of shares of a “shell company’ which includes a “blank check”
company and applies to us. Under the amended rules, Rule 144 cannot be relied upon for the resale of restricted or unrestricted securities originally issued by a shell company or an issuer that at any time has been a shell company unless (i) the issuer has ceased to be a shell company; (ii) the issuer is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act and has filed all required reports during the 12 months preceding the Rule 144 sale and (iii) at least one year has elapsed from
the time that the issuer filed current Form 10 type information with the SEC reflecting that the entity is no longer a shell company.





The foregoing restrictions on the use of Rule 144 for the sale of securities issued by a shell company may reduce the attractiveness of us as a business combination candidate and accordingly, there may be more limited potential business opportunities that are willing to enter into a business combination with any company that is currently
or in the last year has been a shell company, including us.




We have a history of operating losses, and we may not achieve or maintain profitability in the future
 
 We have experienced a net loss of $89,580 and $1,502,703for the fiscal years ended June 30, 2009 and 2008, respectively. We do not expect these losses to continue but it is uncertain when, if ever, we will become profitable. These losses have resulted primarily from non-cash, stock-based compensation costs incurred as stock issued for
compensation, and general and administrative costs associated with operations. Stock issued for compensation and for consulting fees has been valued at market price on the effective date of the agreement, per SEC requirement. Our Independent Auditor has included a paragraph as to their substantial doubt of our ability to continue as a going concern for the years ended June 30, 2009 and 2008, respectively.








- 10 -





Compliance with changing corporate governance regulations and public disclosures may result in additional risks and exposures





Changing laws, regulations and standards relating to corporate governance and public disclosure, including the Sarbanes-Oxley Act of 2002 and new regulations from the SEC, have created uncertainty for public companies such as ours.  These laws, regulations, and standards are subject to varying interpretations in many cases and
as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies.  This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices.  As a result, our efforts to comply with evolving laws, regulations, and standards have resulted in, and are likely to continue to result in, increased expenses and significant management time and attention.





The current crisis in global credit and financial markets could materially and adversely affect our business





As has been widely reported, global credit and financial markets have been experiencing extreme disruptions in recent months, including severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates, and uncertainty about economic stability.  There
can be no assurance that there will not be further deterioration in credit and financial markets and confidence in economic conditions.  These economic uncertainties affect businesses such as ours in a number of ways, making it difficult to accurately forecast and plan our future business activities.  The current tightening of credit in financial markets and the general economic downturn has led consumers and businesses to postpone spending, which has caused uncertainty in our possible merger
candidates.  We are unable to predict the likely duration and severity of the current disruptions in the credit and financial markets and adverse global economic conditions and if the current uncertain economic conditions continue or further deteriorate our business and results of operations could be materially and adversely affected.








Item 1B.   UNRESOLVED STAFF COMMENTS





None.





Item 2.  PROPERTIES





We currently have no properties and at this time have no agreements to acquire any properties.





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





Item 3  LEGAL PROCEEDINGS





We are not currently involved in any legal proceedings and no such proceedings are known by us to be threatened or contemplated against us.





Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS





No matters were submitted to security holders for a vote during the quarter ended June 30, 2009.








- 11 -





PART II







Item 5.  MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES




Our common stock is quoted on the OTC Bulletin Board under the Symbol VCMG.   There is only a limited trading market for our stock and our stockholders may find it difficult to sell their shares. As reported by the OTC BB, our stock has had a high of $.0012 and a low of $0.0002 for the fiscal year ended June 30, 2009.





Holders





As of October 6, 2009, we had approximately 175 holders of record of our common stock. The transfer agent of our Common Stock is Interwest Transfer Co., Inc., Salt Lake City, UT.




Dividends





We have not paid, nor declared, any dividends since our inception and do not intend to declare any such dividends in the foreseeable future. Our management anticipates that earnings, if any, will be retained to fund our working capital needs and the expansion of our business.  The paying of any dividends is in the discretion
of our Board of Directors.





Penny Stock Rules





The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a market price of less than $5.00, other than securities registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and
volume information with respect to transactions in such securities is provided by the exchange or system. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the SEC, that: (a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading; (b) contains a description of the broker's or dealer's duties to the customer and of the rights and remedies
available to the customer with respect to a violation of such duties or other requirements of the securities laws; (c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price; (d) contains a toll-free telephone number for inquiries on disciplinary actions; (e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and (f) contains such other information
and is in such form, including language, type size and format, as the SEC shall require by rule or regulation.





The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with (a) bid and offer quotations for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the transaction; (c) the number of shares to which such bid and ask prices apply, or other comparable information
relating to the depth and liquidity of the market for such stock; and (d) a monthly account statement showing the market value of each penny stock held in the customer's account.  In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk
disclosure statement, a written agreement as to transactions involving penny stocks, and a signed and dated copy of a written suitability statement





These disclosure requirements may have the effect of reducing the trading activity for our Common Stock. Therefore, stockholders may have difficulty selling our securities.





Equity Compensation Plans





We have no equity compensation plans.








- 12 -





Recent Sales of Unregistered Securities





None.





Repurchases of Equity Securities of the Issuer





None.





Item 6. SELECTED FINANCIAL DATA





As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide this information.





Item 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS




The following discussion contains forward-looking statements. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use of words such as "anticipate," "estimate," "expect," "project," "intend,"
"plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. From time to time, we also may provide forward-looking statements in other materials we release to the public.





The following discussion should be read in conjunction with our financial statements and the related notes appearing elsewhere in this report.  The following discussion contains forward-looking statements reflecting our plans, estimates and beliefs.  Our actual results could differ materially from those discussed in the forward-looking
statements. Factors that could cause or contribute to such differences include, but are not limited to those discussed below and elsewhere in this report, particularly in the section entitled"Risk Factors”.





General





The Registrant acquired its operating subsidiaries Veracity Management Group, a Florida corporation ("VMG") and Secured Financial Data Inc., a Florida corporation ("SFD") effective on July 1, 2006. Prior to the acquisition of its operating subsidiaries, during the period from May 2002 until the acquisition of its operating subsidiaries
on July 1, 2006, the Registrant had only limited business operations. The Registrant operated the above named subsidiaries until July 1, 2008 until the when the Registrant rescinded the merger and the Registrant has no business operations and is in the business of acquiring a target company or business seeking the perceived advantages of being a publicly held corporation. Our principal business objective for the next 12 months and beyond such time will be to achieve long-term growth potential through a combination
with a business rather than immediate, short-term earnings. The Registrant will not restrict our potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business.





The results of operations comparative information has no meaning as the operations were removed as part of the rescinding of the mergers of the operating businesses.





Results of Operations For the Fiscal Year ended June 30, 2009 Compared to the Fiscal Year ended June 30, 2008





The results of the rescission agreement made the Company a shell company as defined in Rule 12b-2 of the Exchange Act.





Revenues





No operating revenues were generated during the year ended June 30, 2009 and June 30, 2008.





- 13 -








Administrative Expenses





Our administrative expenses totaled $39,580 for the year ended June 30, 2009 as compared to no administrative expenses for the same period ended June 30, 2008.





General Expenses





General expenses were $50,000 during the year ended June 30, 2009 for outside professional fees. There were no General expenses for the year ended June 30, 2008.





Selling Expenses





There were no selling expenses during the year ended June 30, 2009 and for the year ended June 30, 2008.





Discontinued Operation





The Loss from discontinued operations for the year ended June 30, 2009 is $0 as compared to $1,505,435 for the year ended June 30, 2008. The loss for the year ended June 30, 2008 represents the reported loss from operations from the prior operating companies.





Net Loss





We incurred a net loss of $89,580 during the year ended June 30, 2009, compared to a net loss of $1,505,435 during the year ended June 30, 2008.





Liquidity and Capital Resources





At June 30, 2009, we had no current assets compared to no current assets at June 30, 2008. At June 30, 2009 and June 30, 2008, we had total assets of $0 and $196,066, respectively. We had total current liabilities of $60,579 at June 30, 2009 compared to $20,999 at June 30, 2008. We had long-term liabilities of $0 as of June 30, 2009 compared
to $1,121,277 at June 30, 2008. As of June 30, 2008, these liabilities were net liabilities related to discontinued operations.





We had a working capital deficit of $60,579 at June 30, 2009. Net cash used in operations during the year ended June 30, 2009 was $0. For the year ended June 30, 2008 the net cash provided from operations was $97,449.





During the year ended June 30, 2009, investing activates provided $0 compared to $0 used during the same period of the prior year.





During the year ended June 30, 2009, financing activates provided $0 compared to $457,877 provided during the same period of the prior year.





During the year ended June 30, 2009 we used $575,296 in the discontinued operations as compared $0 for the same period June 30, 2009.





Our independent auditors have raised substantial doubt about our ability to continue as a going concern due to our recurring losses and working capital and stockholders’ deficits. As of June 30, 2009, we had stockholders’ deficit of $(60,579) a decrease from the stockholders’ deficit of $(946,210) on June 30, 2008. Our
ability to continue in operation is subject to increasing revenue and obtaining capital from outside sources. There is no assurance that we will be successful in either endeavor. There are no limitations in the Company's articles of incorporation on the Company's ability to borrow funds or raise funds through the issuance of restricted common stock. The Company's believes that it has the ability to borrow funds and/or raise capital through the sale of restricted stock. To the extent that additional debt financing
is utilized, any borrowing will subject us to various risks traditionally associated with indebtedness, including the risks of interest rate fluctuations and insufficiency of cash flow to pay principal and interest.







- 14 -





Recent Accounting Pronouncements
 
 In September 2006, the SEC staff issued Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements(“SAB 108”). SAB 108 establishes an approach that requires
quantification of financial statement misstatements based on the effects of the misstatements on each of the Company’s consolidated financial statements and the related financial statement disclosures. SAB 108 is effective for the year ending June 30, 2009.
 
 In December 2007, the Financial Accounting Standards Board issued FASB Statement No. 141 (Revised 2007), Business Combinations (“SFAS 141R”). SFAS 141R provides additional guidance on improving the relevance, representational faithfulness, and comparability of the financial information that a reporting entity provides
in its financial reports about a business combination and its effects. This Statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.
 
 We adopted the Financial Accounting Standards Board’s (FASB) Statement of Financial Accounting Standard (SFAS) No. 157,Fair Value Measurement  at inception. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosure of fair value measurements. SFAS 157 applies under
other accounting pronouncements that require or permit fair value measurements and accordingly, does not require any new fair value measurements. SFAS No. 157 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability.
As a basis for considering such assumptions, SFAS No. 157 established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
 
 
 ·
Level 1. Observable inputs such as quoted prices in active markets;
 
 ·
Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
 
 ·
Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
 
 The FASB’s SFAS No. 159,The Fair Value Option for Financial Assets and Financial Liabilities, including an Amendment of SFAS 115  became effective for us at inception. SFAS 159 establishes a fair value option that permits entities to choose to measure eligible financial instruments and certain other items at fair value
at specified election dates. A business entity shall report unrealized gains and losses on items for which the fair value options have been elected in earnings at each subsequent reporting date. For the period ended June 30, 2009, there were no applicable items on which the fair value option was elected. SFAS 159 may impact our consolidated financial statements in the future.
 
 In December 2007, the Financial Accounting Standards Board issued FASB Statement No. 160,Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51 (“SFAS 160”). SFAS 160 amends ARB No. 51 to establish accounting and reporting
standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This Statement is effective for fiscal years and interim periods within those fiscal years, beginning on or after December 15, 2008. The Company is currently evaluating the impact of adopting SFAS 160 on our financial statements.
 
 In May 2008, the FASB issued FSP APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)("FSP APB 14-1"). FSP APB 14-1 requires issuers of convertible debt instruments that may be settled in cash upon conversion
to account separately for the liability and equity components in a manner that will reflect the entity's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. FSP APB 14-1 is effective for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. We do not anticipate that the adoption of FSP APB 14-1 will have a material effect on our results of operations or financial position.
 
 Management does not anticipate that the adoption of these standards will have a material impact on the financial statements.
 
 - 15 -












On July 7, 2008 effective July 1, 2008 the former control persons on the parent company exercised its rights under the exchange agreement to affect the rescission on the mergers of VMG and SFD based on the non performance of the financial governance of the agreement within the two year period outlined by the agreement. There were 20,105,538
shares cancelled as part of the agreement and the operating companies, (VMG and SFD) were returned to the control persons, whom shares were cancelled, before the merger. As of July 1, 2008 the Registrant has no operating business. The business going forward is to acquire a target company or business seeking the perceived advantages of being a publicly held corporation. Our principal business objective for the next 12 months and beyond such time will be to achieve long-term growth potential through a combination
with a business rather than immediate, short-term earnings. The Company will not restrict our potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business.





There are no limitations in the Company's articles of incorporation on the Company's ability to borrow funds or raise funds through the issuance of restricted common stock.





Plan of Current and Future for the year 2010





The Company has no business operations and is in the business of acquiring a target company or business seeking the perceived advantages of being a publicly held corporation. Our principal business objective for the next 12 months and beyond such time will be to achieve long-term growth potential through a combination with a business
rather than immediate, short-term earnings. The Company will not restrict our potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business.







Contractual Obligations and Commercial Commitments





Payments Due by PeriodContractual Obligations

Total


2009



2010-2011



2012-2013


ThereafterLong-term Debt

$
-


$
-


$
-


$
-


$
-Capital Leases

$
-


$
-


$
-


$
-


$
-Operating Leases

$
-


$
-


$
-


$
-


$
-








Off-Balance Sheet Arrangements





We have no off-balance sheet items as of June 30, 2009.




Inflation




To date, inflation has not had a material impact on our operations.





Item 7A.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK




As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide this information.








- 16 -








Item 8.  FINANCIAL STATEMENTS








Financial Statements:Report of Independent Registered Public Accountant Firm
17Balance Sheets - June 30, 2009 and June 30, 2008 (audited)
18Statement of Operations - Years Ended June 30, 2009 and 2008
19Statements of Shareholders’ Deficit -Inception to June 30, 2009
20Statements of Cash Flows - Years Ended June 30, 2009 and 2008
21Notes to Financial Statements
22


- 17 -











REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
 
 To the Board of Directors
 Veracity Management Global, Inc.
 (A Development Stage Company)
 
 
 We have audited the accompanying balance sheets of Veracity Management Global, Inc. (A Development Stage Company) as of June 30, 2009 and June 30, 2008 and the period the company re-entered development stage (July 1, 2008), and the related statements of operations, changes in stockholders' equity (deficit), and cash flows for the years then
ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
 
 We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
 
 In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Veracity Management Global, Inc. as of June 30, 2009 and June 30, 2008, and the results of its operations, changes in stockholders' equity (deficit) and cash flows for the periods then ended and the period the company
re-entered development stage (July 1, 2008) in conformity with accounting principles generally accepted in the United States of America.
 
 The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has insufficient working capital, which raises substantial doubt about its ability to continue as a going concern. Management's plans regarding those matters also
are described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
 
 
 
 
 /s/ M&K CPAS, PLLC
 www.mkacpas.com
 Houston, Texas
 October 13, 2009





- 18 -





VERACITY MANAGEMENT GLOBAL, INC.


Balance Sheets


(A Development Stage Company)




ASSETS

June 30, 2009


June 30, 2008Current Assets

$
--


$
--Total Current Assets


--



--Net Assets Related to Discontinued Operations


--



196,066Total Assets

$
--


$
196,066LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)Current LiabilitiesRelated Party Accounts Payable

$
57,055


$
20,999Accounts Payable


3,524



--Total Current Liabilities


60,579



20,999Net Liabilities Related to Discontinued Operations


--



1,121,277Total Liabilities


60,579



1,142,276Stockholders' Equity (Deficit)Preferred Stock, $.001 par value, 5,000,000 sharesauthorized, 0 shares issued and outstanding


--



--Common Stock, $.001 par value, 3,500,000,000 sharesauthorized, 16,643,057 and 33,742,446 shares issued andoutstanding, respectively


16,635



33,741Additional paid-in capital


4,052,836



3,060,519Accumulated deficit


(4,040,470
)


(4,040,470
)Accumulated deficit during development stage


(89,580
)


--Total Stockholders' Equity (Deficit)


(60,579
)


(946,210
)Total Liabilities and Stockholders' Equity (Deficit)

$
--


$
196,066


The accompanying notes to financial statements are integral part of these financial statements








- 19 -








VERACITY MANAGEMENT GLOBAL, INC.


Statements of Operations


For Year Ended June 30, 2009 and 2008


and the period re-entered Development Stage


2009


2008


Period
re-entered
Development
Stage
(July 1, 2008)
to presentRevenues

$
-


$
-


$
-Cost of Sales


-



-



-Gross Profit


-



-



-ExpensesAdministrative Expenses


39,580



-



39,580General Expenses


50,000



-



50,000Selling Expenses


-



-



-Depreciation and Amortization


-



-



-Total Expenses


89,580



-



89,580Net Loss From Continuing Operations


(89,580
)


-



(89,580
)Net Loss From Discontinued Operations


-



(1,505,435
)


-Net Income (Loss)

$
(89,580
)

$
(1,505,435
)

$
(89,580
)Basic and Diluted Net Loss per Share


(0.005
)


(0.04
)Weighted Average Shares


16,165,035



34,995,900
 The accompanying notes to financial statements are integral part of these financial statements







- 20 -





VERACITY MANAGEMENT GLOBAL, INC.


Statements of Shareholders’ Deficit


(A Development Stage Company)







Shares


Aount


Additional
Paid-in
Capital


Accumulated
Deficit


Accumulated
Deficit
Dring
Development
Stage


TotalShares issued at inception


18,642,685


$
18,643


$
48,346


$
--


$
--


$
66,989Shares issued for cash


200,000



200



99,800



--



--



100,000Effect of beneficial conversation feature


--



--



48,812



--



--



48,812Shares issued for services


205,000



205



79,745



--



--



79,950Net loss


--



--



--



(437,435
)


--



(437,435
)Balance at June 30, 2006


19,047,685



19,048



276,703



(437,435
)


--



(141,684
)Recap shares old Kirshner


899,860



900



(893
)


--



--



7New shares issued at merger


3,535,353



3,535



122,736



(100,461
)


--



25,810Shares issued for cash


930,735



930



473,070



--



--



474,000Shares issued for services


12,392,262



12,393



1,630,512



--



--



1,642,905Net loss


--



--



--



(1,997,139
)


--



(1,997,139
)Balance at June 30, 2007


36,805,895



38,806



2,502,128



(2,535,035
)


--



3,899Shares issued for cash


932,000



932



455,068



--



--



456,000Options exercised for expenses


1,000,000



1,000



34,000



--



--



35,000Shares issued for services


191,667



192



97,258



--



--



97,450Imputed interest


--



--



1,877



--



--



1,877Cancellation of shares


(5,187,116
)


(5,189
)


(29,812
)


--



--



(35,001
)Net loss


--



--



--



(1,505,435
)


--



(1,505,435
)Balance at June 30, 2008


33,742,446



33,741



3,060,519



(4,040,470
)


--



(946,210
)Cancellation of sock


(20,099,389
)


(20,106
)


945,317



--



--



925,211Shares issued for services


3,000,000



3,000



47,000



--



--



50,000Net loss


--



--



--



--



(89,580
)


(89,580
)Balance at June 30, 2009


16,643,057


$
16,635


$
4,052,836


$
(4,040,470
)

$
(89,580
)

$
(60,579
)




The accompanying notes to financial statements are integral part of these financial statements










- 21 -





VERACITY MANAGEMENT GLOBAL, INC.


Statements of Cash Flows


For the Years Ended June 30, 2009 and 2008,


and the period re-entered Development Stage


(A Development Stage Company)





Year
Ended,
June 30, 2009


Year
Ended,
June 30, 2008


Period
re-entered
Development
Stage
(July 1, 2008)
to presentCASH FLOWS FROM OPERATING ACTIVITIESNet loss from continuing operations

$
(89,580
)

$
--


$
(89,580
)Adjustments to reconcile net loss to net cashprovided by operating activities:Shares issued for services:


50,000



97,449



50,000Increase (decrease) in:Related party accounts payable


36,056



--



36,056Accounts payable


3,524



--



3,524Net cash provided by operating activities


--



97,449



--CASH FLOWS FROM FINANCING ACTIVITIESExercise of stock options


--



35,000



--Proceeds from sale of common stock


--



422,877



--Net cash provided by financing activities


--



457,877



--NET CASH USED IN DISCONTINUED OPERATIONS


--



(575,296
)


--NET INCREASE (DECREASE) IN CASH


--



(19,970
)


--CASH - BEGINNING OF PERIOD


--



19,970



--CASH - END OF PERIOD

$
--


$
--


$
--


The accompanying notes to financial statements are integral part of these financial statements







- 22 -





VERACITY MANAGEMENT GLOBAL, INC.




NOTES TO FINANCIAL STATEMENTS


FOR THE YEARS ENDED JUNE 30, 2009 & 2008


(A Development Stage Company)






NOTE 1 – BASIS OF PRESENTATION




The accompanying financial statements of Veracity Management Global, Inc (the "Company", "VCMG") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in conformity with generally accepted
accounting principles have been omitted or condensed pursuant to such rules and regulations.




Basis of Presentation




The Company follows accounting principles generally accepted in the United States of America.  Certain prior period amounts have been reclassified to conform to the June 30, 2009 presentation.  On August 2, 2007, the Company’s Board of Directors approved a 1 for 73 reverse split of the Company’s common
stock by Action of the Board and a majority of shareholders. All information related to common stock, warrants to purchase common stock and earnings per share have been retroactively adjusted to give effect to the stock split.




The statements of operations show the effect of a reclassification of the distribution of the subsidiary companies until July 1, 2008. The reclassification included all parts of the prior operations for both subsidiary companies as loss from discontinued operations for the prior reported period.




In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein.  The financial statements include the accounts of Veracity Management Global, Inc and the
operations of Secured Financial Data, Inc and Veracity Management Group, Inc. are being reported as loss from discontinued operations. Any inter-company transactions have been eliminated as part of the transaction.




As a development stage company, the Company continues to rely on infusions of debt and equity capital to fund operations. The Company relies principally on cash infusions from its directors and affiliates, and paid a significant amount of personal services and salaries in the form of common stock.





Use of Estimates




The preparation of the financial statements in conformity with 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 could differ from those estimates.




We believe our critical estimates are depreciation rates, calculation of impairments, reserves established for receivables, income taxes and contingencies.




Fair Value of Financial Instruments




Financial instruments, including cash, receivables, accounts payable, and notes payable are carried at amounts which reasonably approximate their fair value due to the short-term nature of these amounts or due to variable rates of interest which are consistent with market rates. No adjustments have been made in the current period.







- 23 -










Cash and Cash Equivalents




For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.




Income Taxes




The Company accounts for income taxes under the Financial Accounting Standards Board of Financial Accounting Standard No. 109, "Accounting for Income Taxes" ("Statement 109"). Under Statement 109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under Statement 109, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.




The Company has adopted the provisions of FASB Interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes, an interpretation of SFAS No. 109.  As a result of the implementation of FIN 48, the Company had no changes in the carrying value of its tax assets or liabilities for any recognized tax benefits.




Loss per Common Share




Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. The per share amounts include the dilutive effect of common stock equivalents in years with net income. Basic and diluted loss per share is the same due to the anti dilutive nature
of potential common stock equivalents.


Recent Accounting Pronouncements
 
 In September 2006, the SEC staff issued Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements(“SAB 108”). SAB 108 establishes an approach that requires
quantification of financial statement misstatements based on the effects of the misstatements on each of the Company’s consolidated financial statements and the related financial statement disclosures. SAB 108 is effective for the year ending June 30, 2009.
 
 In December 2007, the Financial Accounting Standards Board issued FASB Statement No. 141 (Revised 2007), Business Combinations (“SFAS 141R”). SFAS 141R provides additional guidance on improving the relevance, representational faithfulness, and comparability of the financial information that a reporting entity provides
in its financial reports about a business combination and its effects. This Statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.
 
 We adopted the Financial Accounting Standards Board’s (FASB) Statement of Financial Accounting Standard (SFAS) No. 157,Fair Value Measurement  at inception. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosure of fair value measurements. SFAS 157 applies under
other accounting pronouncements that require or permit fair value measurements and accordingly, does not require any new fair value measurements. SFAS No. 157 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability.
As a basis for considering such assumptions, SFAS No. 157 established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
 
 
 - 24 -
  ·
Level 1. Observable inputs such as quoted prices in active markets;
 
 ·
Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
 
 ·
Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
 
 The FASB’s SFAS No. 159,The Fair Value Option for Financial Assets and Financial Liabilities, including an Amendment of SFAS 115  became effective for us at inception. SFAS 159 establishes a fair value option that permits entities to choose to measure eligible financial instruments and certain other items at fair value
at specified election dates. A business entity shall report unrealized gains and losses on items for which the fair value options have been elected in earnings at each subsequent reporting date. For the period ended June 30, 2009, there were no applicable items on which the fair value option was elected. SFAS 159 may impact our consolidated financial statements in the future.
 
 In December 2007, the Financial Accounting Standards Board issued FASB Statement No. 160,Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51 (“SFAS 160”). SFAS 160 amends ARB No. 51 to establish accounting and reporting
standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This Statement is effective for fiscal years and interim periods within those fiscal years, beginning on or after December 15, 2008. The Company is currently evaluating the impact of adopting SFAS 160 on our financial statements.
 
 In May 2008, the FASB issued FSP APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)("FSP APB 14-1"). FSP APB 14-1 requires issuers of convertible debt instruments that may be settled in cash upon conversion
to account separately for the liability and equity components in a manner that will reflect the entity's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. FSP APB 14-1 is effective for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. We do not anticipate that the adoption of FSP APB 14-1 will have a material effect on our results of operations or financial position.
 
 Management does not anticipate that the adoption of these standards will have a material impact on the financial statements.




NOTE 2- GOING CONCERN




Veracity Management Global, Inc.’s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business for the foreseeable future. Since inception, the Company has accumulated losses aggregating to $ 4,130,050
and has insufficient working capital to meet operating needs for the next twelve months as of June 30, 2009, all of which raise substantial doubt about VCMG’s ability to continue as a going concern.






NOTE 3 – COMMON STOCK TRANSACTIONS




As part of a rescission right in the merger agreement as of July 25, 2008 all of the shares that were issued as part of the merger of SFD and VMG, a total of 20,099,389 shares of common stock were returned and cancelled except 750,000 issued in the SFD transaction.




In the first quarter of fiscal 2009 the Company issued shares to the CEO and one of its directors totally 3,000,000 shares. These shares were issued to compensate the CEO and a director for services and expenses they have provided during the last two quarters of fiscal 2008 and all of fiscal 2009. The value of these services and
expenses were determined to be $50,000, based on the closing price of the Company’s stock at the date of the issue.







- 25 -












NOTE 4- DISCONTINUED OPERATIONS




The information below does not include the reflection of the reverse split discussed in note 1 above:




On July 1, 2006, Veracity Management Global, Inc, (VCMG) merged with Veracity Management Group, Inc. (VMG) and Secured Financial Data, Inc. (SFD). Pursuant to a Share Exchange Agreement, VCMG issued 22,583,038 shares of common stock in exchange for all the outstanding common stock of VMG(3,535,353 shares) and SFD (19,047,685 shares).




For accounting purposes, the merger was treated as a recapitalization of VCMG by SFD and a purchase of VMG by VCMG. Accordingly, the financial results presented for all periods prior to the merger date are those of SFD. This evaluation was conducted pursuant to the guidance in SFAS statement No. 141 as the former SFD shareholders have
majority control of VCMG subsequent to the merger through majority voting interest, control the majority of the board of directors, and control the majority of all management decisions. VMG is a wholly owned subsidiary. SFD’s equity structure was restated to adopt the equity structure of VCMG (73 shares of VCMG for each share of VMG and SFD). As of the merger date, the financial statements include the combined operating results, assets and liabilities of VCMG, VMG and SFD. Since VCMG was inactive prior
to the merger, it is not expected to constitute a significant part of the ongoing business of the combined company.




VCMG issued a total of 22,583,038 shares of common stock as a result of the above transactions. 3,535,353 shares were issued to the shareholders of VMG resulting in total assets and liabilities of $130,804 and $49,169, respectively, at July 1, 2006. 19,047,685 shares were issued to the shareholders of SFD resulting in total assets and
liabilities of $62,418 and $204,102, respectively, at July 1, 2006. As a result of the recapitalization, SFD’s assets and liabilities are stated at historical cost. As a result of the business combination between VCMG and VMG, VMG’s assets and liabilities are stated at fair market value which approximates historical cost.




The purchase price paid for VMG was $25,810. This represented a discount to the book value of VMG of $55,827. Pursuant to the terms of the agreement the majority shareholders of VCMG immediately prior to the merger have the option to receive an additional 20% equity ownership in VCMG or rescind the merger if certain financial benchmarks
are not achieved by December 31, 2008. Consistent with the guidance in SFAS No. 141 we have recorded a liability of $55,837 for the discounted price paid for VMG due to this possible contingency.On July 25, 2008, the Company’s Board of Directors authorized the cancellation of 20,105,538 shares of common stock as part of the rescission of the exchange agreement for the acquisitions of SFD and VMG. The rescission was filed on July 7, 2008 and effective
for July 1, 2008. As of July 1, 2008 the Registrant has no operating business and all operating components of VMG and SFD are included in the loss from discontinued operations for the Company for the periods three months and six months ended December 31, 2007 and the asset, related liabilities, and equity are included in the balance sheet on June 30, 2008 as net assets related to discontinued operations of $196,066, net liabilities related to discontinued operations of $1,121,277 and the remaining deficit of
$925,211 included in the stockholders deficit balances.




As of June 30, 2009 the Company has no business operations and is in the business of acquiring a target company or business seeking the perceived advantages of being a publicly held corporation. Our principal business objective for the next 12 months and beyond such time will be to achieve long-term growth potential through a combination
with a business rather than immediate, short-term earnings. The Company will not restrict our potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business.







- 26 -





NOTE 5 – RELATED PARTY ACCOUNTS PAYABLE





The officers and directors of the Company have advanced funds to pay for the filing and other necessary costs of the Company. The following are the advances from the officers and directors:





June 30, 2009


June 30, 2008Donald W Prosser (Director)

$
51,055


$
20,999Gregory Paige (CEO & Director)


6,000



--Total

$
57,055


$
20,999








NOTE 6 – INCOME TAXES





There is no recorded income tax provision or benefit recoded since inception, nor were there any recorded deferred income tax assets, as such amounts were completely offset by valuation reserve.
 
 DeferredTax


ValuationAssets


Allowance


BalanceDeferred tax assets atJune 30, 2007

$
119,635


$
(119,635
)

$
--Additions for the year


187,755



(187,755
)


--Deferred tax assets atJune 30, 2008

$
307,390


$
(307,390
)

$
--Additions for the year


33,900



(33,900
)


--Deferred tax assets atJune 30, 2009

$
341,290


$
(341,290
)

$
--
 
 Deferred taxes relating to the tax benefit the Company’s net operating loss was offset by a valuation allowance due to the uncertainty of profitable operations in the future. Also, as a result of the Company’s change of control in early fiscal 2007, the net operating losses which can be utilized each year will be limited under
the provisions of Sections 382 and 383 of the Internal Revenue Code of 1986, as amended. The Company generated an NOL of approximately $89,000 during the year ended June 30, 2009 and has approximately $895,795 of NOL set to expire beginning in the year ended June 30, 2027.
 
 The Net Operating loss is as follows:
 
 June 30, 2007

$
314,000June 30, 2008


492,795June 30, 2009


89,000Total

$
895,795







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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE




None




ITEM 9A. CONTROLS AND PROCEDURES




Evaluation of Disclosure Controls and Procedures




Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”), we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of our disclosure
controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report.  Based upon that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were ineffective to ensure that information required to be disclosed by us in the reports that the we file or submit under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such
information is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.





Management's Report on Internal Control Over Financial Reporting.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act, as amended. Our management assessed the effectiveness of our internal control over financial reporting as of June 30, 2009. In making this assessment, our management
used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control-Integrated Framework. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. We have identified the following material weaknesses.

1. As of June 30, 2009, we did not maintain effective controls over the control environment. Specifically, we have not formally adopted a written code of business conduct and ethics that governs to the Company's employees, officers and directors. Additionally, we have not developed and effectively communicated to our employees its accounting
policies and procedures. This has resulted in inconsistent practices. Further, the Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-B. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.

2. As of June 30, 2009, we did not maintain effective controls over financial statement disclosure. Specifically, controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly, management has determined that this control deficiency constitutes a material weakness.

Because of these material weaknesses, management has concluded that the Company did not maintain effective internal control over financial reporting as of June 30, 2009, based on the criteria established in "Internal Control-Integrated Framework" issued by the COSO.

Changes in Internal Control Over Financial Reporting


The annual report does not include an attestation report of the company’s registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by the company’s registered public accounting firm pursuant to temporary rules of the Securities
and Exchange Commission that permit the company to provide only management’s report in this annual report.





There have been no changes in our internal control over financial reporting during the latest fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.





ITEM 9B. OTHER INFORMATION





None














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PART III









ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT, COMPLIANCE WITH SECTION 16(A)









At present, we have two officers and three directors. We may elect one or more additional directors and appoint additional officers in connection with our intent to pursue new business opportunities or entering into a business combination. Our directors are elected to serve until the next annual meeting of shareholders and until their
respective successors will have been elected and will have qualified. The following table sets forth the name, age and position held with respect to our present directors and executive officers:




Name
Age
PositionsGregory L. Paige
59
President, CEO, and ChairmanMarc L. Baker
49
Acting CFO, Secretary Treasurer and DirectorDonald W. Prosser
59
Director







Gregory L. Paige,Chairman and CEO, age 59 has been the Chairman, CEO, and President, since July 1, 2008. Mr. Paige is currently President of Broad Street Marketing Inc. Mr. Paige has over 25 years experience in the financial services industry. He has been associated with E. F. Hutton,
Merrill Lynch, Lehman Brothers, Kuhn Loeb and Drexel Burnham Lambert. Mr. Paige owned and managed three broker dealers including H.D. Vest a NASDAQ listed company. Mr. Paige has an AB degree from Diablo Valley College in 1971. Attended California State University at Hayward 1973 & 1974.




Marc L. Baker,Acting CFO, Secretary, Treasurer and director, age 49, has been with the Company since July 1, 2008. Mr. Baker is a CPA (inactive) in the state of Florida.




Donald W. Prosser,Director, age 58 has been a director since January 1 2008. He is currently the Chief Financial Officer of IPtimize, Inc. He served a directors and chief financial officer from 2001 until June 2007 of VCG Holding Corp. Mr. Prosser currently sits on the board of
directors of Arete Industries, Inc. Mr. Prosser also has served as chief financial officer and director of three other publicly traded companies: from 1997 to 1999, Chartwell International, Inc., a publisher of high school athletic information and recruiting services; from 1999 to 2000, Anything Internet Corporation, a computer equipment and internet services provider; and from 2001 to 2002, NetCommerce, Inc., an Internet services provider.  Mr. Prosser has a M.A. in taxation (1975) and a B.A. in accounting
and history from Western State College of Colorado (1973).  He is a certified public accountant licensed in Colorado (active).




Section 16(a) Beneficial Ownership Reporting Compliance





Section 16(a) of the Securities Exchange Act of 1934 requires our director, officer and holders of more than ten percent of our common stock to file with the Securities and Exchange Commission initial reports of ownership and reports of changes in ownership of our common stock and other equity securities. We believe that during and for
the fiscal year ended June 30, 2009, our one of our officers was in compliance and one had not filed any reports, two director were in compliance and one had not filed any required forms.








- 29 -





Code of Ethics





We have not adopted a Code of Business Conduct and Ethics that applies to our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.  Given the nature of our business, our limited stockholder base and current composition of management, the
board of directors does not believe that we require a code of ethics at this time.  The board of directors takes the position that management of a target business will adopt a code of ethics that will be suitable for its operations after we consummate a business combination.





Nominating Committee





We have not adopted any procedures by which security holders may recommend nominees to our board of directors.





Audit Committee





The board of directors has not established an audit committee nor adopted an audit committee charter, rather, the entire board of directors serves the functions of an audit committee.  Given the nature of our business, our limited stockholder base and current composition of management, the board of directors does not believe
that we require an audit committee at this time.  The board of directors takes the position that management of a target business will establish an audit committee and adopt an audit committee charter that will be suitable for its operations after we consummate a business combination.





ITEM 11. EXECUTIVE COMPENSATION




The following table contains the executive compensation to the Registrant's executive officer for the periods set forth below:




Summary Compensation TableLong TermAnnual Compensation

Compensation AwardsOther

Restricted
SecuritiesAnnual

Stock
Underlying
All OtherSalary
Bonus
Compensation

Award(s)
Options
CompensationName and Principal Position

Year
($)
($)
($)

($)
($)
($)Michael Rideman, CEO and Co-Chairman(1)

2009
-
-
-

-
-
-2008
-2007
-Dr. Ronald L. Rideman, Vice President and Co-Chairman (2)

2009
-
-
-

-
-
-2008
150,0002007
150,000Alex Trujillo, COO(3)

2009
-
-
-

-
-
-2008
200,0002007
200,000N. Richard Grassano, CFO(4)

2009
-
-
-

-
-
-2008
46,0002007
46,000Gregory Paige

2009
-Marc Baker

2009
-(1) Mr. Michael Rideman became the Registrant's CEO and Co-Chairman on July 1, 2006 and terminated March 1, 2008,(2) Mr. Ronald L.  Rideman became the Registrant's Vice President and Co-Chairman on July 1, 2006 and terminated July 1, 2008,(3) Mr. Alex Trujillo became the Registrant's COO in September 2006, and terminated July 1, 2008,(4) Mr. N. Richard Grassano became the Registrant's CFO on October 1, 2006. And resigned May 1, 2008








- 30 -





Compensation Discussion and Analysis





Our officer and director do not receive any compensation for services rendered, have not received such compensation in the past, and are not accruing any compensation pursuant to any agreement with our Company.  Our officer and director are reimbursed for expenses incurred on our behalf.  Our officer and director will
not receive any finder’s fee as a result of their efforts to implement the business plan outlined herein.  However, our officer and director anticipate receiving benefits as a beneficial shareholder of our common stock.





We have not adopted any retirement, pension, profit sharing, stock option or insurance programs or other similar programs for the benefit of our employees.





Employment Contracts





There are no employment contracts between us and our officer and director.





Post-Employment Compensation, Pension Benefits, Nonqualified Deferred Compensation





There were no post-employment compensation, pension or nonqualified deferred compensation benefits earned by our executive officer during the year ended June 30, 2009.





Director Compensation





Our director has received no compensation during the year ended June 30, 2009.





ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT




The table below discloses any person (including any "group") who is known to the Registrant to be the beneficial owner of more than five (5%) percent of the Registrant's voting securities. As of October 6, 2009, the Registrant had 16,643,057 shares of common stock issued and outstanding. Beneficial ownership has been determined in accordance
with the rules and regulations of the SEC and includes voting or investment power with respect to the shares. Unless otherwise indicated, the persons named in the table below have sole voting and investment power with respect to the number of shares indicated as beneficially owned by them.




Title of
Class
Name and Address of
Beneficial Owner
Amount and Nature of
Beneficial Owner
Percent
of ClassCommon Stock
Dr. Ronald L. Rideman, Former Vice President, Treasurer and Co-Chairman
2655 LeJeune Road, Suite 311
Coral Gables, FL 33134
750,000 shares
4.51%Common Stock
N. Richard Grassano,  Former Chief Financial Officer
2655 LeJeune Road, Suite 311
Coral Gables, FL 33134
111,368 shares
*Common Stock
Marc L. Baker(1)
12230 SW 2nd Street
Plantation, FL 33325
4,149,999 shares
24.94%Common Stock
Greg Paige
1450 South Dixie Highway
Boca Raton, FL 33432
3,643,966 shares
21.89%Common Stock
Donald W Prosser
260 Osceola Street
Westminster, CO 80030
2,590,000 shares
15.56%Common Stock
All officers and directors as a group (4 persons)
11,245,333 shares
67.57%*
Represents less then 1%





(1) Includes 1,149,999 shares owned by DM Capital that is beneficially owned by Marc Baker





- 31 -








ITEM 13. CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS AND DIRECTORS INDEPENDENCE





Related Party Transactions





The officers and directors of the Company have advanced funds to pay for the filing and other necessary costs of the Company. The following are the advances from the officers and directors:








June 30, 2009


June 30, 2008Donald W Prosser (Director)

$
51,055


$
20,999Gregory Paige (CEO & Director)


6,000



--Total

$
57,055


$
20,999





Conflicts of Interest





Our management has adopted certain policies involving possible conflicts of interest, including prohibiting any of the following transactions involving management, promoters, shareholders or their affiliates: (i) Any lending by us to such persons; (ii) The issuance of any additional securities to such persons prior to a business combination
except for fair and adequate payment; (iii) The entering into any business combination or acquisition of assets in which such persons have any interest, direct or indirect; or (iv) The payment of any finder's fees to such persons. These policies have been adopted by our Board of Directors, and any changes in these provisions require the approval of the Board of Directors. Our management does not intend to propose any such action and does not anticipate that any such action will occur. There are no binding guidelines
or procedures for resolving potential conflicts of interest. Failure by our management to resolve conflicts of interest in favor of us could result in liability of our management to us. However, any attempt by shareholders to enforce a liability of our management to us would most likely be prohibitively expensive and time consuming.





Director Independence





We have not established our own definition for determining whether our director and nominees for directors are “independent” nor have we adopted any other standard of independence employed by any national securities exchange or inter-dealer quotation system.





Our current management cannot predict whether incoming management of a target business upon the consummation of a business combination, if such transaction occurs, will adopt a definition of “independence” or establish any committees of the board, such as an audit committee, a compensation committee or nominating committee.





ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES




Independent Public Accountants





The Registrant's Board of Directors has appointed Mcelravy, Kinchen & Associates, PC as independent public accountant for the fiscal year ending June 30, 2009.and the fiscal year ended June 30, 2008.





Principal Accounting Fees





The following table presents the fees for professional audit services rendered by Mcelravy, Kinchen & Associates, PC, for the audit of the Registrant's annual financial statements for the years ended June 30, 2009 and the year ended June 30, 2008.





- 32 -











Year EndedJune 30,  2009


June 30, 2008Audit fees (1)

$
12,000


$
35,000Audit-related fees (2)


-



-Tax fees (3)


-



-All other fees


-



-$
12,000


$
35,000(1) Audit fees consist of audit and review services, consents and review of documents filed with the SEC.(2) Audit-related fees consist of assistance and discussion concerning financial accounting and reporting standards and other accounting issues.(3) Tax fees consist of preparation of federal and state tax returns, review of quarterly estimated tax payments, and consultation concerning tax compliance issues.





Audit Committee’s Pre-Approval Process





We have not established an audit committee nor adopted an audit committee charter.  Rather, it is the responsibility of the entire board of directors to serve the functions of an audit committee and to pre-approve all audit and permitted non-audit services to be performed by the independent auditors, such approval to take place
in advance of such services when required by law, regulation or rule, subject to the de minimis exceptions for non-audit services described in Section 10A(i)(1)(B) of the Securities Exchange Act of 1934 that are approved by the board prior to the completion of the audit.








- 33 -





PART IV





Item 15. Exhibits and Financial Statement Schedules





(a) The following documents are filed as part of this annual report on Form 10-K:





1)  Financial Statements:Reports of Independent Registered Public Accounting FirmsBalance Sheets at June 30, 2009 and 2008Statements of Operations for years ended June 30, 2009 and 2008 and from July 1, 2008 (date of commencement of development stage) through June 30, 2009Statements of Changes in Stockholders’ (Deficit) from July 1, 2008 (date of commencement of development stage) through June 30, 2009Statements of Cash Flows for the years ended June 30, 2009 and 2008 and from July 1, 2008 (date of commencement of development stage) through June 30, 2009Notes to Financial Statements





2)  Financial Statement Schedule:





We are not filing separately financial statement schedules because of the absence of conditions under which they are required or because the required information is included in the financial statements or the related notes.





3) The following documents are filed as exhibits to this report on Form 10-K or incorporated by reference herein. Any document incorporated by reference is identified by a parenthetical reference to the SEC filing that included such document.




Exhibit No.
Description3(i)
Articles of Incorporation, attached to the Company's Form 10-SB/12g filed with the SEC on March 8, 20073(ii)
Bylaws, attached to the Company's Form 10-SB/12g filed with the SEC on March 8, 200710(i)
Share Exchange Agreement between the Registrant and Veracity Management Group, Inc., attached to the Company's Form 10-SB/12g filed with the SEC on March 8, 200710(ii)
Share Exchange Agreement between the Registrant and Secure Financial Data, Inc., attached to the Company's Form 10-SB/12g filed with the SEC on March 8, 2007.31.1
Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.31.2
Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32.1
Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.1
Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.










- 34 -





SIGNATURES









Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.






Date: October 13, 2009




Veracity Management Global, Inc.By: Gregory L. Paige, CEO and Chairman/s/ Gregory L. PaigeVeracity Management Global, Inc.By: Marc L. Baker, Acting CFO and Director/s/ Marc L. Baker








- 35 -