SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
|X| QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended: November 30, 2006
| | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ________________ to __________________
Commission File Number 333-136301
CARLATERAL, INC.
______________________________________________________
(Exact name of registrant as specified in its charter)
Nevada 20-4158835
________________________ ____________________________________
(State of Incorporation) (I.R.S. Employer Identification No.)
112 North Currie Street
Carson City, Nevada, 89703-4934
___________________________________________________
(Address of Principal Executive Offices) (Zip Code)
(775) 321-8243
____________________________________________________
(Registrant's telephone number, including area code)
Check whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15 (d) of the Securities Exchange Act 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 | |
Indicate by check mark whether the registrant is a shell company (as defined in
rule 12b-2 of the Exchange Act.
Yes |X] No | |
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: As of November 30, 2006, the
registrant had 10,300,000 shares of common stock, $0.001 par value, issued and
outstanding.
Transitional Small Business Disclosure Format (check one).
Yes | | No |X|
Index
Page
Number
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements - Unaudited
Interim Balance Sheets as of November 30, 2006 and February 28, 2006
Interim Statements of Operations for the three month period ending
November 30, 2006, the nine month period ending November 30, 2006 and
the period from inception (December 9, 2005) to November 30, 2006
Interim Statement of Stockholders" Equity (Deficit) from Inception
(December 9, 2005) to November 30, 2006
Interim Statements of Cash Flows for the three month period ending
June 30, 2006, the nine month period ending November 30, 2006 and the
period from inception (December 9, 2005) to November 30, 2006
Notes to Interim Financial Statements November 30, 2006
ITEM 2. Management's Discussion and Analysis or Plan of Operation
ITEM 3. Controls and Procedures
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
ITEM 3. Defaults Upon Senior Securities
ITEM 4. Submission of Matters to a Vote of Security Holders
ITEM 5. Other Information
ITEM 6. Exhibits
CARLATERAL, INC.
(A Development Stage Company)
INTERIM BALANCE SHEET
November 30, February 28,
2006 2006
(Unaudited) (Audited)
____________________________________________________________________________________________
ASSET
CURRENT ASSET
Cash $ 10,804 $ 20,378
____________________________________________________________________________________________
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 1,200 $ 3,000
Due to related party (note 6) 4,475 -
____________________________________________________________________________________________
5,675 3,000
____________________________________________________________________________________________
STOCKHOLDERS' EQUITY (DEFICIT )
Capital stock (Note 4)
Authorized
75,000,000 shares of common stock, $0.001 par value,
Issued and outstanding
10,300,000 shares of common stock 10,300 10,300
Additional paid-in capital 13,200 13,200
Deficit accumulated during the development stage (18,371) ( 6,122)
____________________________________________________________________________________________
5,129 17,378
____________________________________________________________________________________________
$ 10,804 $ 20,378
============================================================================================
The accompanying notes are an integral part of these financial statements
CARLATERAL, INC.
(A Development Stage Company)
INTERIM STATEMENTS OF OPERATIONS
(Unaudited)
Cumulative results of
operations from
December 9, 2005
3 months ended 9 months ended (date of inception) to
November 30, 2006 November 30, 2006 November 30, 2006
(Unaudited) (Unaudited) (Unaudited)
___________________________________________________________________________________________________________
EXPENSES
Office and general $ 1,249 $ 3,271 $ 3,749
Professional fees 1,600 8,978 14,622
___________________________________________________________________________________________________________
NET LOSS $ (2,849) $ (12,249) $ (18,371)
===========================================================================================================
BASIC AND DILUTED NET LOSS PER SHARE $ (0.00) $ (0.00)
===========================================================================================================
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 10,300,000 10,300,000
===========================================================================================================
The accompanying notes are an integral part of these financial statements
CARLATERAL, INC.
(A Development Stage Company)
INTERIM STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
(Unaudited)
FROM INCEPTION (DECEMBER 9, 2005) TO NOVEMBER 30, 2006
Deficit
Common Stock Accumulated
_______________________ Additional Share During the
Number of Paid-in Subscription Development
shares Amount Capital Receivable Stage Total
_________________________________________________________________________________________________________________________
Balance, December 9, 2005 $ - $ - $ - $ - $ - $ -
Common stock issued for cash at
$0.001 per share
- December 15, 2005 7,000,000 7,000 - - - 7,000
Common stock issued for cash at
$0.005 per share
- December 23, 2005 3,300,000 3,300 13,200 - - 16,500
Net loss - - - - (6,122) (6,122)
_________________________________________________________________________________________________________________________
Balance February 28, 2006 10,300,000 10,300 13,200 - (6,122) 17,378
Net loss - - - - (12,249) (12,249)
=========================================================================================================================
Balance, November 30, 2006 10,300,000 $ 10,300 $ 13,200 $ - $ (18,371) $ 5,129
=========================================================================================================================
All share amounts have been restated to reflect the 10:1 forward split in February 2006. (Refer to Note 4)
The accompanying notes are an integral part of these financial statements
CARLATERAL, INC.
(A Development Stage Company)
INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
Cumulative results of
operations from inception
3 months ended 9 months ended (December 9, 2005)
November 30, 2006 November 30, 2006 to November 30, 2006
______________________________________________________________________________________________________________
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (2,849) $ (12,249) $ (18,371)
Adjustment to reconcile net loss to net
cash used in operating activities
-prepaid expense
263 - -
-accounts payable and accrued
liabilities (1,800) (1,800) 1,200
______________________________________________________________________________________________________________
NET CASH USED IN OPERATING ACTIVITIES (4,386) (14,049) (17,171)
______________________________________________________________________________________________________________
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock - 23,500
Advance from related party - 4,475 4,475
______________________________________________________________________________________________________________
NET CASH PROVIDED BY FINANCING ACTIVITIES 4,475 27,975
______________________________________________________________________________________________________________
NET INCREASE (DECREASE) IN CASH (4,386) (9,574) 10,804
______________________________________________________________________________________________________________
CASH, BEGINNING OF PERIOD 15,190 20,378 -
______________________________________________________________________________________________________________
CASH, END OF PERIOD $ 10,804 $ 10,804 $ 10,804
==============================================================================================================
Supplemental cash flow information and
noncash financing activities:
Cash paid for:
Interest $ - $ - $ -
==============================================================================================================
Income taxes $ - $ - $ -
==============================================================================================================
The accompanying notes are an integral part of these financial statements
CARLATERAL, INC.
(A Development Stage Company)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(Unaudited)
NOVEMBER 30, 2006
________________________________________________________________________________
NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION
________________________________________________________________________________
Carlateral, Inc. (the "Company") is in the initial development stage and has
incurred losses since inception totaling $18,371. The Company was incorporated
on December 9 2005 in the State of Nevada. The fiscal year end of the Company is
February 28. The Company was organized to establish itself as a finance company,
specializing in sub-prime title loans, primarily using automobiles as a form of
loan collateral, but will also include boats, recreational vehicles, machinery
and other equipment. Carlateral intends to open regional and branch offices in
metropolitan areas throughout the United States and Canada. The target market is
individuals needing short term loans.
On February 15, 2006 the Company completed a forward stock split of the
Company's common stock by the issuance of 10 new shares for each 1 outstanding
share of the Company's common stock.
The ability of the Company to continue as a going concern is dependent on
raising capital to fund its business plan and ultimately to attain profitable
operations. Accordingly, these factors raise substantial doubt as to the
Company's ability to continue as a going concern. The Company is funding its
initial operations by way of issuing Founders' shares and entering into a
private placement offering for 4,000,000 shares at $0.005 per share. As of
November 30, 2006, the Company had sold 10,300,000 shares and had received
$23,500 in proceeds from the sale of the Company's common stock of which
7,000,000 Founders shares were issued at $0.001 per share for net proceeds of
$7,000 and 3,300,000 shares were issued at $0.005 per share for net proceeds of
$16,500 pursuant to the Private Placement Offering.
UNAUDITED INTERIM FINANCIAL STATEMENTS
The accompanying unaudited interim financial statements have been prepared in
accordance with the generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB of the regulation
S-B. They do not include all information and footnotes required by United States
generally accepted accounting principles for complete financial statements.
However, except as disclosed herein, there has not been any material changes in
the information disclosed in the notes to the financial statements for the year
ended February 28, 2006 included in the Company's Report on Form SB-2 filed with
the Securities and Exchange Commission. The interim unaudited financial
statements should be read in conjunction with those financial statements
included in the Form SB-2. In the opinion of the management, all adjustments
considered necessary for a fair presentation, consisting solely of normal
recurring adjustments, have been made. Operating results for the nine months
ended November 30, 2006 are not necessarily indicative of the results that may
be expected for the year ended February 28, 2007.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
________________________________________________________________________________
BASIS OF PRESENTATION
These financial statements are presented in United States dollars and have been
prepared in accordance with accounting principles generally accepted in the
United States.
USE OF ESTIMATES AND ASSUMPTIONS
Preparation of the financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
INCOME TAXES
The Company follows the liability method of accounting for income taxes in
accordance with Statements of Financial Accounting Standards ("SFAS") No.109,
"Accounting for Income Taxes." Under this method, 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 balances. Deferred tax assets and
liabilities are measured using enacted or substantially enacted tax rates
expected to apply to the taxable income in the years in which those differences
are expected to be recovered or settled. The effect on deferred tax assets and
liabilities of a change in tax rates is recognized in income in the period that
includes the date of enactment or substantive enactment.
NET LOSS PER SHARE
Basic loss per share includes no dilution and is computed by dividing loss
available to common stockholders by the weighted average number of common shares
outstanding for the period. Dilutive loss per share reflects the potential
dilution of securities that could share in the losses of the Company. Because
the Company does not have any potentially dilutive securities, the accompanying
presentation is only of basic loss per share.
FOREIGN CURRENCY TRANSLATION
The financial statements are presented in United States dollars. In accordance
with SFAS No. 52, "Foreign Currency Translation", foreign denominated monetary
assets and liabilities are translated to their United States dollar equivalents
using foreign exchange rates which prevailed at the balance sheet date.
Non-monetary assets and liabilities are translated at exchange rates prevailing
at the transaction date. Revenue and expenses are translated at average rates of
exchange during the period. Related translation adjustments are reported as a
separate component of stockholders' equity (deficit), whereas gains or losses
resulting from foreign currency transactions are included in results of
operations.
STOCK-BASED COMPENSATION
The Company has not adopted a stock option plan and has not granted any stock
options. Accordingly no stock-based compensation has been recorded to date.
RECENT ACCOUNTING PRONOUNCEMENTS
In December 2004, the Financial Accounting Standards Board ("FASB") issued SFAS
No. 153, "Exchanges of Non-monetary Assets - An Amendment of APB Opinion No.
29". The guidance in APB Opinion No. 29, "Accounting for Non-monetary
Transactions", is based on the principle that exchanges of non-monetary assets
should be measured based on the fair value of the assets exchanged. The guidance
in that opinion, however, included certain exceptions to that principle. SFAS
No. 153 amends Opinion No. 29 to eliminate the exception for non-monetary
exchanges of similar productive assets and replaces it with a general exception
for exchanges of non-monetary assets that do not have commercial substance. A
non-monetary exchange has commercial substance if the future cash flows of the
entity are expected to change significantly as a result of the exchange. The
provisions of SFAS No. 153 are effective for non-monetary asset exchanges
occurring in fiscal periods beginning after June 15, 2005. Early application is
permitted and companies must apply the standard prospectively. The adoption of
this standard is not expected to have a material effect on the Company's results
of operations or financial position.
In December 2004, the Financial Accounting Standards Board ("FASB") issued SFAS
No. 123R, "Share-Based Payment." SFAS No. 123R establishes standards for the
accounting for transactions in which an entity exchanges its equity instruments
for goods or services. It also addresses transactions in which an entity incurs
liabilities in exchange for goods or services that are based on the fair value
of the entity's equity instruments or that may be settled by the issuance of
those equity instruments. SFAS No. 123R focuses primarily on accounting for
transactions in which an entity obtains employee services in share-based payment
transactions. SFAS No. 123R requires that the compensation cost relating to
share-based payment transactions be recognized in financial statements. That
cost will be measured based on the fair value of the equity or liability
instruments issued. Public entities that file as small business issuers will be
required to apply SFAS No. 123R in the first interim or annual reporting period
that begins after December 15, 2005. Management is currently evaluating the
impact of the adoption of this standard on our results of operations and
financial position.
In March 2005, the SEC staff issued Staff Accounting Bulletin ("SAB") No. 107,
"Share-Based Payment," to give guidance on the implementation of SFAS No. 123R.
Management will consider SAB No. 107 during the implementation of SFAS No. 123R.
In May 2005, the FASB issued SFAS 154, "Accounting Changes and Error
Corrections." This Statement replaces APB Opinion No. 20, "Accounting Changes,"
and SFAS No. 3, "Reporting Accounting Changes in Interim Financial Statements,"
and changes the requirements for the accounting for and reporting of a change in
accounting principle. This Statement applies to all voluntary changes in
accounting principle. Management believes this Statement will have no impact on
the financial statements of the Company.
In March 2005, the FASB issued FASB Interpretation ("FIN") No. 47, "Accounting
for Conditional Asset Retirement Obligations, an interpretation of FASB
Statement No. 143." Asset retirement obligations (AROs) are legal obligations
associated with the retirement of long-lived assets that result from the
acquisition, construction, development and/or normal operation of a long-lived
asset, except for certain obligations of lessees. FIN No.47 clarifies that
liabilities associated with asset retirement obligations whose timing or
settlement method are conditional on future events should be recorded at fair
value as soon as fair value is reasonably estimable. FIN No.47 also provides
guidance on the information required to reasonably estimate the fair value of
the liability. FIN No.47 is intended to result in more consistent recognition of
liabilities relating to AROs among companies, more information about expected
future cash outflows associated with those obligations stemming from the
retirement of the asset(s) and more information about investments in long-lived
assets because additional asset retirement costs will be recognized by
increasing the carrying amounts of the assets identified to be retired. FIN
No.47 is effective for fiscal years ending after December 15, 2005. Management
believes this Statement will have no impact on the financial statements of the
Company.
NOTE 3 - FAIR VALUE OF FINANCIAL INSTRUMENTS
________________________________________________________________________________
In accordance with the requirements of SFAS No. 107 and SFAS No. 157, the
Company has determined the estimated fair value of financial instruments using
available market information and appropriate valuation methodologies. The fair
value of financial instruments classified as current assets or liabilities
approximate their carrying value due to the short-term maturity of the
instruments.
NOTE 4 - CAPITAL STOCK
________________________________________________________________________________
The Company's capitalization is 75,000,000 common shares with a par value of
$0.001 per share. No preferred shares have been authorized or issued.
As of November 30, 2006, the Company has not granted any stock options and has
not recorded any stock-based compensation.
As of November 30, 2006, the sole Director had purchased 7,000,000 shares of the
common stock in the Company at $0.001 per share with the proceeds of the Company
totalling $7,000.
PRIVATE PLACEMENT
On December 23, 2005, the Company authorized a Private Placement Offering of up
to 4,000,000 shares of common stock at a price of $0.005 per share. The total
amount to be raised in this financing is $20,000. As of November 30, 2006 the
Company had issued 3,300,000 common shares and had received $16,500 in proceeds
from the sale of its stock.
On February 15, 2006, the majority shareholder and the director of the Company
approved a special resolution to undertake a forward split of the common stock
of the Company on a 10 new shares for 1 old share basis.
All references in these financial statements to number of shares, price per
share and weighted average number of common shares outstanding prior to the
forward split have been adjusted to record the effect of the forward split on a
retroactive basis.
NOTE 5 - INCOME TAXES
________________________________________________________________________________
As of November 30, 2006 the Company had net operating loss carry forwards of
approximately $18,371 that may be available to reduce future years' taxable
income and will expire commencing in 2015. Availability of loss usage is subject
to change of ownership limitations under Internal Revenue Code 382. Future tax
benefits which may arise as a result of these losses have not been recognized in
these financial statements, as their realization is determined not likely to
occur and accordingly, the Company has recorded a full valuation allowance for
the deferred tax asset relating to these tax loss carryforwards.
NOTE 6 - RELATED PARTY TRANSACTION
________________________________________________________________________________
As of November 30, 2006, the Company received advances from a director of the
Company in the amount of $4,475. The amount due to the related party is
unsecured and non-interest bearing with no set terms of repayment.
ITEM 2: MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Overview
Carlateral, Inc. ("Carlateral" the "Company," "we," "us" ) is a development
stage company, incorporated on December 9, 2005, in the State of Nevada, to
establish itself as a finance company specializing in sub prime title loans
secured primarily by automobiles (but also boats, recreational vehicles,
machinery and other equipment) as collateral.
The Company did not generate any revenue during the quarter ended November 30,
2006.
Total expenses for the three months ending November 30, 2006 were $2,849
resulting in an operating loss for the period of $2,849. Basic net loss per
share amounted to $0 for the three months ending November 30, 2006. The
operating loss for the period is a result of professional fees relating to the
preparation of Securities and Exchange Commission filings and office and general
expenses.
Office and general expenses for the three months ending November 30, 2006 were
$1,249. The office and general expenses relate to the costs of preparing SEC
filings and purchasing office supplies and maintaining office operations.
Professional Fees for the Quarter ending November 30, 2006 were $1,600. This
expense was for the engaged review of the company's financial statements.
Accounts payable for the period ending November 30, 2006 are $1,200.
As of November 30, 2006 the Director of the Company has advanced $4,475 to
maintain the company's operations. This amount is unsecured, non-interest
bearing and without specific terms of repayment.
Net cash provided through financing for the three months ending November 30,
2006 was $0.
On October 20, 2006 the Company filed a registration form SB-2 with the SEC. The
form SB-2 was deemed effective as of December 8, 2006.
Plan of Operation
The Company anticipates that its current cash and cash equivalents and cash
generated from operations, if any, will not be sufficient to satisfy its
liquidity requirements for at least the next 12 months. The Company will require
additional funds prior to such time and will seek to sell additional capital
through private equity placements or debt securities or seek alternative sources
of financing. If the Company is unable to obtain this additional financing, it
may be required to reduce the scope of its business plan, which could harm its
business, financial condition and operating results. In addition, the Company
may require additional funds in order to accomplish a more rapid expansion, to
develop new or enhanced services or products or to invest in complementary
businesses, technologies, services or products. Additional funding may not be
available on favourable terms, if at all.
During the next twelve months the Company will focus on applying a variety of
strategies to enable it to establish its business. These strategies included
identifying potential office locations in metropolitan areas throughout Canada
and the US, researching the legal and regulatory obligations in each
jurisdiction in which we may operate and determining the types and roles of
support staff that would be required to run the business.
From inception the company's business operations have primarily been focused
preparing it's registration statement and on developing our business model and
marketing strategy. The company has been conducting industry market research and
doing an analysis of our competitors business models and business methodologies.
Our initial research has focused on identifying the best locations for our
initial office, both in terms of client demographics and the regulatory
environment.
We will engage the services of an attorney to create a loan agreement that meets
the local jurisdiction laws and requirements. The company will require having a
valid loan agreement created prior to opening its business outlets and will
expend approximately $4,000 on this activity.
Concurrently with creating the loan agreement, the company will search for a
suitable office space in the preferred locale based on the results of its
demographic research. To offset expenses incurred during this period, the
company may look at securing a shared space in an office with another
non-competing business. Upon finding the appropriate location, the company will
enter into a lease or sub-lease agreement. We expect that we will have to expend
approximately $5,000 to secure our initial office lease.
The company will purchase a computer system and other office equipment and
supplies for our initial store location. The company estimates that these
equipment expenditures for the office will be $9,500. The company will also
design and have printed all of the necessary forms and agreements used in its
operations, at an estimated cost of $3,000.
The company will identify and hire a commission sales person to staff the
initial office.
The company will research local advertising possibilities, including community
newspapers, radio, yellow pages, and established local websites to determine the
most advantageous media for the company's advertising campaigns. The company
expects that that its initial advertising program will cost approximately $8,500
to develop and implement.
The company will research, purchase and implement a loan management system that
can be customized to suit its needs and is scalable so that we will be able to
manage multiple branches from a central location. The system will be installed
at the initial store location and will be capable of being expanded to any
additional locations as they come on line. The company expects to spend about
$27,500 to research and implement the loan management system.
The Company intends to be fully operational within twelve months.
The company does not expect to purchase or sell plant or significant equipment
in the next 12 months. It does plan to hire employees as necessary to manage its
offices as they are established.
Off Balance Sheet Arrangements.
As of the date of this Quarterly Report, the current funds available to the
Company will not be sufficient to continue operations. The cost to establish the
Company and begin operations has been estimated at $57,000 over the next twelve
months and the cost of maintaining its reporting status is estimated to be
$12,000 over the same period. The officer and director, Mr. Cameron has
undertaken to provide the Company with initial operating and loan capital to
sustain our business over the next twelve month period as the expenses are
incurred in the form of a non-secured loan. However, there is no contract in
place or written agreement securing this agreement. Management believes if the
Company cannot raise sufficient revenues or maintain its reporting status with
the SEC it will have to cease all efforts directed towards the Company. As such,
any investment previously made would be lost in its entirety.
Other than the above described situation the Company does not have any
off-balance sheet arrangements that have or are reasonably likely to have a
current or future effect on the Company's financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that are material to investors. The
term "off-balance sheet arrangement" generally means any transaction, agreement
or other contractual arrangement to which an entity unconsolidated with the
Company is a party, under which the Company has (i) any obligation arising under
a guarantee contract, derivative instrument or variable interest; or (ii) a
retained or contingent interest in assets transferred to such entity or similar
arrangement that serves as credit, liquidity or market risk support for such
assets.
ITEM 3. CONTROLS AND PROCEDURES
Based on their most recent evaluation, which was completed within 90 days of the
filing of this Form 10-QSB, the Company's Chief Executive Officer and Treasurer
believe the Company's disclosure controls and procedures (as defined in Exchange
Act Rules 13a-14 and 15d-14) are effective to ensure that information required
to be disclosed by the Company in this report is accumulated and communicated to
the Company's management, including its principal executive officer and
principal financial officer, as appropriate, to allow timely decisions regarding
required disclosure. There were no significant changes in the Company's internal
controls or other factors that could significantly affect these controls
subsequent to the date of their evaluation and there were no corrective actions
with regard to significant deficiencies and material weaknesses.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is not a party to any pending legal proceedings, and no such
proceedings are known to be contemplated.
No director, officer, or affiliate of the Company and no owner of record or
beneficial owner of more than 5.0% of the securities of the Company, or any
associate of any such director, officer or security holder is a party adverse to
the Company or has a material interest adverse to the Company in reference to
pending litigation.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
31.1 Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Executive Officer
31.2 Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Financial Officer *
32.1 Section 1350 Certification of Chief Executive Officer
32.2 Section 1350 Certification of Chief Financial Officer **
* Included in Exhibit 31.1
** Included in Exhibit 32.1
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
CARLATERAL, INC.
By: /s/ DON CAMERON
_________________________________________________
Don Cameron
President, Secretary Treasurer,
Principal Executive Officer,
Principal Financial Officer and sole Director
Dated: February 13, 2007