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UNITED\ue000 STATES\ue000 OF\ue000 AMERICA
SECURITIES\ue000 AND\ue000 EXCHANGE\ue000 COMMISSION
\ue000WASHINGTON,\ue000 DC\ue000 20549
\ue000
FORM\ue000 10-Q
(Mark
\ue000 One)
x
QUARTERLY\ue000 REPORT\ue000 PURSUANT\ue000 TO\ue000 SECTION\ue000 13\ue000 OR\ue000 15(D)\ue000 OF\ue000 THE\ue000 SECURITIES\ue000 EXCHANGE\ue000 ACT\ue000 OF\ue000 1934
FOR\ue000 THE\ue000 QUARTERLY\ue000 PERIOD\ue000 ENDED:\ue000 December\ue000 31,\ue000 2008
\u00ae
TRANSITION\ue000 REPORT\ue000 PURSUANT\ue000 TO\ue000 SECTION\ue000 13\ue000 OR\ue000 15(D)\ue000 OF\ue000 THE\ue000 SECURITIES\ue000 EXCHANGE\ue000 ACT\ue000 OF\ue000 1934
For\ue000 the\ue000 transition\ue000 period\ue000 from\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000 to\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000
\ue000
Commission\ue000 File\ue000 Number:\ue000 000-28459
\ue000
GENIO\ue000 GROUP,\ue000 INC.
\ue000
\ue000 (Exact\ue000 name\ue000 of\ue000 Registrant\ue000 as\ue000 specified\ue000 in\ue000 its\ue000 charter)
Delaware
\ue000
22-3360133
(State\ue000 or\ue000 Other\ue000 Jurisdiction\ue000 of
\ue000
(I.R.S.\ue000 Employer
Incorporation\ue000 or\ue000 Organization)
\ue000
Identification\ue000 No.)
400\ue000 Garden\ue000 City\ue000 Plaza,\ue000 Garden\ue000 City,\ue000 NY\ue000 11530
\ue000 (Address\ue000 of\ue000 principal\ue000 executive\ue000 offices)\ue000 (Zip\ue000 Code)
516-873-2000
(Registrant's\ue000 telephone\ue000 number)
(Former\ue000 Name,\ue000 Former\ue000 Address\ue000 and\ue000 Former\ue000 Fiscal\ue000 Year,\ue000 if\ue000 changed\ue000 since\ue000 last\ue000 report)
\ue000

Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant:\ue000 (1)\ue000 has\ue000 filed\ue000 all\ue000 reports\ue000 required\ue000 to\ue000 be\ue000 filed\ue000 by\ue000 Section\ue000 13\ue000 or\ue000 15(d)\ue000 of\ue000 the\ue000 Securities\ue000 Exchange\ue000 Act
of\ue000 1934\ue000 during\ue000 the\ue000 preceding\ue000 12\ue000 months\ue000 (or\ue000 for\ue000 such\ue000 shorter\ue000 period\ue000 that\ue000 the\ue000 registrant\ue000 was\ue000 required\ue000 to\ue000 file\ue000 such\ue000 reports),\ue000 and\ue000 (2)\ue000 has\ue000 been
subject\ue000 to\ue000 such\ue000 filing\ue000 requirements\ue000 for\ue000 the\ue000 past\ue000 90\ue000 days.\ue000\ue000\ue000\ue000 Yes\ue000 \ue000x \ue000 No\ue000 \ue000\u00ae

\ue000

Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 large\ue000 accelerated\ue000 filer,\ue000 an\ue000 accelerated\ue000 filer,\ue000 a\ue000 non-accelerated\ue000 filer,\ue000 or\ue000 a\ue000 smaller\ue000 reporting
company.\ue000 See\ue000 definitions\ue000 of\ue000 "large\ue000 accelerated\ue000 filer,"\ue000 "accelerated\ue000 filer,"\ue000 and\ue000 "smaller\ue000 reporting\ue000 company"\ue000 in\ue000 Rule\ue000 12b-2\ue000 of\ue000 the\ue000 Exchange\ue000 Act.
(Check\ue000 one):

Large\ue000 accelerated\ue000 filer\ue000 \ue000\u00ae
Accelerated\ue000 filer\ue000 \ue000\u00ae
Non-accelerated\ue000 filer\ue000 \ue000\u00ae
Smaller\ue000 reporting\ue000 company\ue000 \ue000x
\ue000
\ue000
(Do\ue000 not\ue000 check\ue000 if\ue000 a\ue000 smaller\ue000 reporting
company)
\ue000
\ue000
Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 shell\ue000 company\ue000 (as\ue000 defined\ue000 in\ue000 Rule\ue000 12b-2\ue000 of\ue000 the\ue000 Exchange\ue000 Act).\ue000 Yes\ue000 \ue000x \ue000 No\ue000\u00ae
\ue000
The\ue000 number\ue000 of\ue000 the\ue000 registrant's\ue000 shares\ue000 of\ue000 common\ue000 stock\ue000 outstanding\ue000 was\ue000 55,681,787\ue000 as\ue000 of\ue000 February\ue000 9,\ue000 2009.
\ue000
\ue000
\ue000
Processed and formatted by SEC Watch - Visit SECWatch.com
\ue000

GENIO\ue000 GROUP,\ue000 INC.
FORM\ue000 10-Q
TABLE\ue000 OF\ue000 CONTENTS

\ue000
\ue000
PAGE
PART\ue000 I.\ue000
FINANCIAL\ue000 INFORMATION
\ue000
\ue000
\ue000
Item\ue000 1.
Consolidated\ue000 Financial\ue000 Statements
\ue000
\ue000
\ue000
\ue000
\ue000
Consolidated\ue000 Balance\ue000 Sheets\ue000 as\ue000 of\ue000 December\ue000 31,\ue000 2008\ue000 (unaudited)\ue000 And\ue000 September\ue000 30,\ue000 2008\ue000 (\ue000 audited)
3
\ue000
Consolidated\ue000 Statements\ue000 of\ue000 Operations\ue000 for\ue000 the\ue000 three\ue000 months\ue000 ended\ue000 December\ue000 31,\ue000 2008\ue000 and\ue000 2007\ue000 (unaudited)
4
\ue000
Consolidated\ue000 Statements\ue000 of\ue000 Cash\ue000 Flows\ue000 for\ue000 the\ue000 three\ue000 months\ue000 \ue000 ended\ue000 December\ue000 31,\ue000 2008\ue000 and\ue000 2007\ue000 (unaudited)
5
\ue000
\ue000
\ue000
\ue000
Notes\ue000 to\ue000 the\ue000 Unaudited\ue000 Consolidated\ue000 Financial\ue000 Statements
6
\ue000
\ue000
\ue000
Item\ue000 2.
Management's\ue000 Discussion\ue000 and\ue000 Analysis\ue000 or\ue000 Plan\ue000 of\ue000 Operation
11
\ue000
\ue000
\ue000
Item\ue000 3.
Management's\ue000 Quantitative\ue000 and\ue000 Qualitative\ue000 Disclosures\ue000 About\ue000 Market\ue000 Risk
\ue000
\ue000
\ue000
\ue000
Item\ue000 4.
Controls\ue000 and\ue000 Procedures
12
\ue000
\ue000
PART\ue000 II.\ue000
OTHER\ue000 INFORMATION
\ue000
\ue000
\ue000
\ue000
Item\ue000 1A.
Risk\ue000 Factors
13
\ue000
\ue000
\ue000
Item\ue000 6.
Exhibits
13
\ue000
\ue000
\ue000
Signatures
14
FORWARD-LOOKING\ue000 STATEMENTS

Certain\ue000 statements\ue000 made\ue000 in\ue000 this\ue000 Quarterly\ue000 Report\ue000 on\ue000 Form\ue000 10-Q\ue000 are\ue000 "forward-looking\ue000 statements"\ue000 regarding\ue000 the\ue000 plans\ue000 and\ue000 objectives\ue000 of
managementfor\ue000 future\ue000 operations\ue000 and\ue000 market\ue000 trends\ue000 and\ue000 expectations.\ue000 Such\ue000 statements\ue000 involve\ue000 known\ue000 and\ue000 unknown\ue000 risks,\ue000 uncertainties\ue000 and
other\ue000 factors\ue000 that\ue000 may\ue000 cause\ue000 our\ue000 actual\ue000 results,\ue000 performance\ue000 or\ue000 achievements\ue000 to\ue000 be\ue000 materially\ue000 different\ue000 from\ue000 any\ue000 future\ue000 results,\ue000 performance\ue000 or
achievements\ue000 expressed\ue000 or\ue000 implied\ue000 by\ue000 such\ue000 forward-looking\ue000 statements.\ue000 The\ue000 forward-looking\ue000 statements\ue000 included\ue000 herein\ue000 are\ue000 based\ue000 on\ue000 current
expectations\ue000 that\ue000 involve\ue000 numerous\ue000 risks\ue000 and\ue000 uncertainties.\ue000 Our\ue000 plans\ue000 and\ue000 objectives\ue000 are\ue000 based,\ue000 in\ue000 part,\ue000 on\ue000 assumptions\ue000 involving\ue000 the
continued\ue000 expansion\ue000 of\ue000 our\ue000 business.\ue000 Assumptions\ue000 relating\ue000 to\ue000 the\ue000 foregoing\ue000 involve\ue000 judgments\ue000 with\ue000 respect\ue000 to,\ue000 among\ue000 other\ue000 things,\ue000 future
economic,\ue000 competitive\ue000 and\ue000 market\ue000 conditions\ue000 and\ue000 future\ue000 business\ue000 decisions,\ue000 all\ue000 of\ue000 which\ue000 are\ue000 difficult\ue000 or\ue000 impossible\ue000 to\ue000 predict\ue000 accurately\ue000 and
many\ue000 of\ue000 which\ue000 are\ue000 beyond\ue000 our\ue000 control.\ue000 Although\ue000 we\ue000 believe\ue000 that\ue000 our\ue000 assumptions\ue000 underlying\ue000 the\ue000 forward-looking\ue000 statements\ue000 are\ue000 reasonable,
any\ue000 of\ue000 the\ue000 assumptions\ue000 could\ue000 prove\ue000 inaccurate\ue000 and,\ue000 therefore,\ue000 there\ue000 can\ue000 be\ue000 no\ue000 assurance\ue000 that\ue000 the\ue000 forward-looking\ue000 statements\ue000 included\ue000 in\ue000 this
report\ue000 will\ue000 prove\ue000 to\ue000 be\ue000 accurate.\ue000 In\ue000 light\ue000 of\ue000 the\ue000 significant\ue000 statements\ue000 included\ue000 herein,\ue000 the\ue000 inclusion\ue000 of\ue000 such\ue000 information\ue000 should\ue000 not\ue000 be\ue000 regarded
as\ue000 a\ue000 representation\ue000 by\ue000 us\ue000 or\ue000 any\ue000 other\ue000 person\ue000 that\ue000 our\ue000 objectives\ue000 and\ue000 plans\ue000 will\ue000 be\ue000 achieved.\ue000 We\ue000 undertake\ue000 no\ue000 obligation\ue000 to\ue000 revise\ue000 or\ue000 update
publicly\ue000 any\ue000 forward-looking\ue000 statements\ue000 for\ue000 any\ue000 reason.\ue000 The\ue000 terms\ue000 "we",\ue000 "our",\ue000 "us",\ue000 or\ue000 any\ue000 derivative\ue000 thereof,\ue000 as\ue000 used\ue000 herein\ue000 refer\ue000 to\ue000 Genio
Group,\ue000 Inc.,\ue000 a\ue000 Delaware\ue000 corporation,\ue000 and\ue000 its\ue000 predecessors.

\ue000
2
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\ue000
PART\ue000 I\ue000 -\ue000 FINANCIAL\ue000 INFORMATION
ITEM\ue000 1.\ue000 FINANCIAL\ue000 STATEMENTS
GENIO\ue000 GROUP,\ue000 INC.\ue000 and\ue000 Subsidiaries
CONSOLIDATED\ue000 BALANCE\ue000 SHEETS
\ue000
\ue000 December\ue000 31,\ue000 2008\ue000 \ue000 September\ue000 30,\ue000 2008\ue000
\ue000
\ue000
(unaudited) \ue000 \ue000
(audited)
\ue000
CURRENT\ue000 ASSETS
\ue000 \ue000
\ue000 \ue000 \ue000
\ue000
\ue000
\ue000 \ue000
\ue000 \ue000 \ue000
\ue000
TOTAL\ue000 ASSETS
\ue000 $
0\ue000 \ue000 $
0\ue000
\ue000
\ue000 \ue000
\ue000\ue000 \ue000 \ue000
\ue000\ue000
LIABILITIES\ue000 AND\ue000 STOCKHOLDERS'\ue000 DEFICIENCY\ue000 IN\ue000 ASSETS
\ue000 \ue000
\ue000\ue000 \ue000 \ue000
\ue000\ue000
CURRENT\ue000 LIABILITIES\ue000
\ue000 \ue000
\ue000\ue000 \ue000 \ue000
\ue000\ue000
Cash\ue000 Overdraft
\ue000 $
473\ue000 \ue000 $
413\ue000
Accounts\ue000 payable\ue000 and\ue000 accrued\ue000 expense
\ue000 \ue000
698,786\ue000 \ue000 \ue000
688,786\ue000
Interest\ue000 payable\ue000 on\ue000 convertible\ue000 debentures
\ue000 \ue000
1,105,146\ue000 \ue000 \ue000
1,034,360\ue000
8%\ue000 Convertible\ue000 debenture
\ue000 \ue000
2,400,000\ue000 \ue000 \ue000
2,400,000\ue000
Advances\ue000 from\ue000 shareholders
\ue000 \ue000
281,574\ue000 \ue000 \ue000
281,574\ue000
Line\ue000 of\ue000 credit\ue000 payable
\ue000 \ue000
150,000\ue000 \ue000 \ue000
150,000\ue000
Total\ue000 current\ue000 liabilities
\ue000 \ue000
4,635,979\ue000 \ue000 \ue000
4,555,133\ue000
\ue000
\ue000 \ue000
\ue000\ue000 \ue000 \ue000
\ue000\ue000
COMMITMENTS\ue000 and\ue000 CONTINGENCIES
\ue000 \ue000
\ue000\ue000 \ue000 \ue000
\ue000\ue000
\ue000
\ue000 \ue000
\ue000\ue000 \ue000 \ue000
\ue000\ue000
STOCKHOLDERS'\ue000 DEFICIENCY\ue000 IN\ue000 ASSETS
\ue000 \ue000
\ue000\ue000 \ue000 \ue000
\ue000\ue000
Preferred\ue000 stock,\ue000 no\ue000 par\ue000 value,\ue000 \ue000 2,000,000\ue000 shares\ue000 authorized,\ue000 0\ue000 shares\ue000 issued\ue000 \ue000 \ue000 Common\ue000 stock\ue000 -\ue000 par
value\ue000 $.0001,\ue000 per\ue000 share;\ue000 authorized,\ue000 \ue000 200,000,000\ue000 shares;\ue000 55,681,787\ue000 shares\ue000 issued\ue000 and\ue000 outstanding\ue000 \ue000
5,568\ue000 \ue000 \ue000
5,568\ue000
Additional\ue000 paid\ue000 in\ue000 capital
\ue000 \ue000
15,255,732\ue000 \ue000 \ue000
15,255,732\ue000
Accumulated\ue000 deficit
\ue000 \ue000
(19,897,279) \ue000 \ue000
(19,816,433)
\ue000
\ue000 \ue000
\ue000\ue000 \ue000 \ue000
\ue000\ue000
\ue000
\ue000 \ue000
(4,635,979) \ue000 \ue000
(4,555,133)
\ue000
\ue000 \ue000
\ue000\ue000 \ue000 \ue000
\ue000\ue000
TOTAL\ue000 LIABILITIES\ue000 AND\ue000 STOCKHOLDERS'\ue000 DEFICIENCY\ue000 IN\ue000 ASSETS
\ue000 $
0\ue000 \ue000 $
0\ue000
The\ue000 accompanying\ue000 notes\ue000 are\ue000 an\ue000 integral\ue000 part\ue000 of\ue000 this\ue000 statement.
\ue000
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