x
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Quarterly
Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934
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FOR
THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2007
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or
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o
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Transition
Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934
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For
the transition period from __________ to
__________
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NEVADA
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36-4528166
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(State
of other jurisdiction of incorporation or organization)
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(IRS
Employer Identification Number)
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Index
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Balance
Sheets
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F-1
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Statements
of Operations
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F-2
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|
Statement of Stockholders' Equity (Deficit) |
F-3
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Statements
of Cash Flows
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F-4
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Condensed
Notes to the Financial Statements
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F-5
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DESIGN
SOURCE, INC.
|
(A
Development Stage Company)
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BALANCE
SHEETS
|
September
30,
|
|
March
31,
|
|
||||
|
|
2007
|
|
2007
|
|
||
|
|
(unaudited)
|
|
||||
ASSETS
|
|||||||
CURRENT
ASSETS
|
|||||||
Cash
|
$
|
389
|
$
|
5,259
|
|||
TOTAL
ASSETS
|
$
|
389
|
$
|
5,259
|
|||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
CURRENT
LIABILITIES
|
|||||||
Accounts
payable
|
$
|
-
|
$
|
2,248
|
|||
TOTAL
CURRENT LIABILITIES
|
-
|
2,248
|
|||||
TOTAL
LIABILITIES
|
-
|
2,248
|
|||||
COMMITMENTS
AND CONTINGENCIES
|
-
|
-
|
|||||
STOCKHOLDERS'
EQUITY
|
|||||||
Common
stock, $0.00001 par value, 100,000,000 shares
authorized,
|
|||||||
10,718,457
and 10,718,457 shares issued and outstanding, respectively
|
108
|
108
|
|||||
Additional
paid-in capital
|
535,815
|
535,815
|
|||||
Accumulated
deficit during development stage
|
(535,534
|
)
|
(532,912
|
)
|
|||
TOTAL
STOCKHOLDERS' EQUITY
|
389
|
3,011
|
|||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
389
|
$
|
5,259
|
DESIGN
SOURCE, INC.
|
(A
Development Stage Company)
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STATEMENTS
OF OPERATIONS
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From
Inception
|
||||||||||||||||
(April
2, 2003)
|
||||||||||||||||
Three
Months Ended
|
Six
Months Ended
|
through
|
||||||||||||||
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|||||||
|
|
2007
|
|
2006
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|
2007
|
|
2006
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|
2007
|
|
|||||
|
|
(unaudited)
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|
(unaudited)
|
|
(unaudited)
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|
(unaudited)
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|
(unaudited)
|
||||||
REVENUES
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$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
EXPENSES
|
||||||||||||||||
General
and administrative
|
(55
|
)
|
6,769
|
68
|
9,160
|
44,595
|
||||||||||
Meals
and entertainment
|
-
|
- |
-
|
520
|
1,050
|
|||||||||||
Advertising
and marketing
|
-
|
3,970
|
-
|
8,050
|
6,000
|
|||||||||||
Automobile
expense
|
-
|
821
|
-
|
1,169
|
1,713
|
|||||||||||
Professional
fees
|
-
|
29,910
|
2,467
|
35,452
|
101,827
|
|||||||||||
Rent
and utilities
|
-
|
7,614
|
-
|
14,356
|
26,814
|
|||||||||||
Stock
compensation
|
-
|
-
|
-
|
-
|
327,500
|
|||||||||||
Telephone
|
-
|
-
|
-
|
-
|
5,049
|
|||||||||||
Travel
|
48
|
-
|
93
|
-
|
4,234
|
|||||||||||
Taxes,
licenses, and permits
|
-
|
-
|
-
|
532
|
3,476
|
|||||||||||
Consulting
|
-
|
1,670
|
-
|
1,670
|
13,751
|
|||||||||||
Total
Expenses
|
(7
|
)
|
50,754
|
2,628
|
70,909
|
536,009
|
||||||||||
LOSS
FROM OPERATIONS
|
7
|
(50,754
|
)
|
(2,628
|
)
|
(70,909
|
)
|
(536,009
|
)
|
|||||||
OTHER
INCOME (EXPENSE)
|
||||||||||||||||
Interest
income
|
-
|
933
|
6
|
1,737
|
2,128
|
|||||||||||
Interest
expense
|
-
|
(270
|
)
|
-
|
(573
|
)
|
(1,653
|
)
|
||||||||
Total
Other Income (Expense)
|
-
|
663
|
6
|
1,164
|
475
|
|||||||||||
LOSS
BEFORE TAXES
|
7
|
(50,091
|
)
|
(2,622
|
)
|
(69,745
|
)
|
(535,534
|
)
|
|||||||
INCOME
TAX EXPENSE
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
NET
LOSS
|
$
|
7
|
$
|
(50,091
|
)
|
$
|
(2,622
|
)
|
$
|
(69,745
|
)
|
$
|
(535,534
|
)
|
||
NET
INCOME (LOSS) PER SHARE,
|
||||||||||||||||
BASIC
AND DILUTED
|
$
|
(0.00
|
)
|
$
|
(0.01
|
)
|
$
|
(0.00
|
)
|
$
|
(0.02
|
)
|
||||
WEIGHTED
AVERAGE NUMBER OF
|
||||||||||||||||
COMMON
SHARES OUTSTANDING,
|
||||||||||||||||
BASIC
AND DILUTED
|
10,718,457
|
4,168,457
|
10,718,457
|
4,168,457
|
DESIGN
SOURCE, INC.
|
||||||||||||||||||
(A
Development Stage Company)
|
||||||||||||||||||
STATEMENT
OF STOCKHOLDERS' EQUITY
(DEFICIT)
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|
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Deficit
|
|
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|
||||||||||
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|
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Accumulated
|
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Total
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|
||||||
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Additional
|
|
Stock
|
|
During
|
|
Stockholders'
|
|
||||||
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|
Common
Stock
|
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Paid-in
|
|
Subscription
|
|
Development
|
|
Equity
|
|
||||||||
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Receivable
|
|
Stage
|
|
(Deficit)
|
|
||||||
Balance,
April 2, 2003 (Inception)
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
Stock
issued upon incorporation at $0.05 per
|
|||||||||||||||||||
share
for payment of advances and
|
|||||||||||||||||||
expense
reimbursement
|
435,000
|
4
|
21,746
|
-
|
-
|
21,750
|
|||||||||||||
Stock
issued for cash at $0.05 per share
|
200,000
|
2
|
9,998
|
-
|
-
|
10,000
|
|||||||||||||
Stock
issued for expense reimbursement at
|
|||||||||||||||||||
$0.05
per share
|
83,457
|
1
|
4,172
|
-
|
-
|
4,173
|
|||||||||||||
Net
loss for the period ended March 31, 2004
|
-
|
-
|
-
|
-
|
(30,760
|
)
|
(30,760
|
)
|
|||||||||||
Balance,
March 31, 2004
|
718,457
|
7
|
35,916
|
-
|
(30,760
|
)
|
5,163
|
||||||||||||
Net
loss for the year ended March 31, 2005
|
-
|
-
|
-
|
-
|
(16,676
|
)
|
(16,676
|
)
|
|||||||||||
Balance,
March 31, 2005
|
718,457
|
7
|
35,916
|
-
|
(47,436
|
)
|
(11,513
|
)
|
|||||||||||
Stock
issued for cash at $0.05 per share
|
|||||||||||||||||||
for
cash and subscription receivable
|
3,320,000
|
33
|
165,967
|
(6,000
|
)
|
-
|
160,000
|
||||||||||||
Net
loss for the year ended March 31, 2006
|
-
|
-
|
-
|
-
|
(35,028
|
)
|
(35,028
|
)
|
|||||||||||
Balance,
March 31, 2006
|
4,038,457
|
40
|
201,883
|
(6,000
|
)
|
(82,464
|
)
|
113,459
|
|||||||||||
Payment
of stock subscription receivable
|
-
|
-
|
-
|
6,000
|
-
|
6,000
|
|||||||||||||
Stock
issued for cash at $0.05 per share
|
130,000
|
2
|
6,498
|
-
|
-
|
6,500
|
|||||||||||||
Stock
issued for compensation at $0.05 per share
|
6,550,000
|
66
|
327,434
|
-
|
-
|
327,500
|
|||||||||||||
Net
loss for the year ended March 31, 2007
|
-
|
-
|
-
|
-
|
(450,448
|
)
|
(450,448
|
)
|
|||||||||||
Balance,
March 31, 2007
|
10,718,457
|
108
|
535,815
|
-
|
(532,912
|
)
|
3,011
|
||||||||||||
Net
loss for the period ended September 30, 2007
|
-
|
-
|
-
|
-
|
(2,622
|
)
|
(2,622
|
)
|
|||||||||||
Balance,
September 30, 2007
|
10,718,457
|
$
|
108
|
$
|
535,815
|
$
|
-
|
$
|
(535,534
|
)
|
$
|
389
|
DESIGN
SOURCE, INC.
|
|
(A
Development Stage Company)
|
|
STATEMENTS
OF CASH FLOWS
|
From
Inception
|
||||||||||
For
the Six Months
|
(April
2, 2003)
|
|||||||||
Ended
|
Ended
|
through
|
||||||||
September
30,
|
September
30,
|
September
30,
|
||||||||
2007
|
2006
|
2007
|
||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||
Net
loss
|
$
|
(2,622
|
)
|
$
|
(69,745
|
)
|
$
|
(535,534
|
)
|
|
Adjustments
to reconcile net loss to net cash used by operating
activities:
|
||||||||||
Increase
(Decrease) in accounts payable
|
(2,248
|
)
|
(15,906
|
)
|
-
|
|||||
Increase
(Decrease) in accrued interest
|
-
|
(1,080
|
)
|
-
|
||||||
Stock
issued for compensation
|
-
|
-
|
327,500
|
|||||||
Expenses
paid by officer
|
-
|
-
|
24,923
|
|||||||
Net
cash used by operating activities
|
(4,870
|
)
|
(86,731
|
)
|
(183,111
|
)
|
||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||
Issuance
of common stock for cash advances
|
-
|
-
|
1,000
|
|||||||
Proceeds
from shareholder loans
|
-
|
-
|
21,560
|
|||||||
Repayment
of shareholder loans
|
-
|
(21,560
|
)
|
(21,560
|
)
|
|||||
Proceeds
from issuance of common stock
|
-
|
12,500
|
182,500
|
|||||||
Net
cash provided (used in) by financing activities
|
-
|
(9,060
|
)
|
183,500
|
||||||
NET
INCREASE (DECREASE) IN CASH
|
(4,870
|
)
|
(95,791
|
)
|
389
|
|||||
CASH,
BEGINNING OF PERIOD
|
5,259
|
160,447
|
-
|
|||||||
CASH,
END OF PERIOD
|
$
|
389
|
$
|
64,656
|
$
|
389
|
||||
SUPPLEMENTAL
CASH FLOW INFORMATION:
|
||||||||||
Interest
paid
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Income
taxes paid
|
$
|
-
|
$
|
-
|
$
|
-
|
Sept
30, 2007
|
|
March
31, 2007
|
|||||
Net
operating loss carryforward:
|
$
|
535,534
|
$
|
532,912
|
|||
Deferred
tax asset
|
$
|
216,891
|
$
|
215,829
|
|||
Deferred
tax asset valuation allowance
|
(216,891
|
)
|
(215,829
|
)
|
|||
Net
deferred tax asset
|
$
|
-
|
$
|
-
|
Exhibit
No.
|
Document
Description
|
|
|
|
|
31.1
|
Certification
of Principal Executive Officer and Principal Financial Officer pursuant
to
Rule 13a-15(a) and Rule 15d-15(a), promulgated under the Securities
Exchange Act of 1934, as amended.
|
|
|
||
32.1
|
Certification
of Chief Executive Officer and Chief Financial Officer Pursuant to
18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
DESIGN
SOURCE, INC.
(Registrant)
|
||
|
|
|
BY: |
/S/
PETER REICHARD
|
|
Peter
Reichard
|
||
President,
Principal Executive Officer, Treasurer, Principal Financial Officer,
Principal Accounting Officer and member of the Board of
Directors
|