- Quarterly Report (10-Q)

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X]	QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES
	EXCHANGE ACT OF 1934
	FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2008
OR
[   ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
	EXCHANGE ACT OF 1934

Commission file number 000-50068

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.
(Exact name of registrant as specified in its charter)

UTAH
(State or other jurisdiction of incorporation or organization)

4233 E. Magnolia Avenue
Phoenix, AZ
85034
(Address of principal executive offices, including zip code.)

[phone]
(telephone number, including area code)

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

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

Large accelerated filer	[   ]	Accelerated filer	[   ]
Non-accelerated filer	[   ]	Smaller reporting company	[X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES [X]    NO [   ]

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 15,520,533 as of October 29, 2008.
 

---

PART I – FINANCIAL INFORMATION

ITEM 1.      FINANCIAL STATEMENTS

Balance Sheets	F -1
Statements of Operations	F -2
Statements of Cash Flows	F -3
Statements of Stockholders’ Equity (Deficiency)	F -4
Notes to Financial Statements	F -5

 

 

 

 

 

 

 

 

 

 

 

---

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.
BALANCE SHEETS
	September 30,		December 31,
As at	2008		2007
	(Unaudited)		(Audited)
	$		$
ASSETS
CURRENT
Cash and cash equivalents	11,381		20,109
TOTAL ASSETS	11,381		20,109
LIABILITIES
CURRENT
Accounts payable and accrued liabilities	19,030		23,275
Due to a related party (Note 5)	10,000		-
TOTAL LIABILITIES	29,030		23,275
STOCKHOLDERS’ EQUITY (DEFICIENCY)
COMMON STOCK
Authorized: 200,000,000 shares, $0.001 par value
Issued and outstanding: 15,520,533 shares
(December 31, 2007: 15,520,533 shares)	15,521		15,521
ADDITIONAL PAID-IN CAPITAL	4,833,164		4,833,164
DEFICIT	(4,866,334	)	(4,851,851	)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIENCY)	(17,649	)	(3,166	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
(DEFICIENCY)	11,381		20,109
NOTE 1 – NATURE AND CONTINUANCE OF OPERATIONS

 

 

See accompanying Notes to the Financial Statements

F-1

---

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
	Three Month				Nine Month
	Period Ended				Period Ended
	September 30,		September 30,
	2008		2007		2008		2007
	$		$		$		$
OTHER INCOME	1		1		2		3
GENERAL AND ADMINISTRATIVE EXPENSES	(7,325	)	(3,152	)	(14,485	)	(10,328	)
NET (LOSS) AND COMPREHENSIVE (LOSS)
FOR THE PERIOD	(7,324	)	(3,151	)	(14,483	)	(10,325	)
LOSS PER SHARE
Basic and diluted	(0.00	)	(0.00	)	(0.00	)	(0.00	)
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING
Basic and diluted	15,520,533		15,520,533		15,520,533		15,520,533

 

 

 

See accompanying Notes to the Financial Statements

F-2

---

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.
STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIENCY)
(Unaudited)
				Deficit		Total
			Additional	Accumulated		Stockholders’
	Common	Stock	Paid in	Since		Equity
	Shares	Amount	Capital	Inception		(Deficiency)
		$	$	$		$
Balance, December 31, 2004	11,520,533	11,521	4,797,164	(4,786,464	)	22,221
Issue of common stock at a
price of $0.01 per share
pursuant to the exercise of
warrants	4,000,000	4,000	36,000	-		40,000
Net loss and comprehensive
loss for the year ended
December 31, 2005	-	-	-	(22,325	)	(22,325	)
Balance, December 31, 2005	15,520,533	15,521	4,833,164	(4,808,789	)	39,896
Net loss and comprehensive
loss for the year ended
December 31, 2006	-	-	-	(22,122	)	(22,122	)
Balance, December 31, 2006	15,520,533	15,521	4,833,164	(4,830,911	)	17,774
Net loss and comprehensive
loss for the year ended
December 31, 2007	-	-	-	(20,940	)	(20,940	)
Balance, December 31, 2007	15,520,533	15,521	4,833,164	(4,851,851	)	(3,166	)
Net loss and comprehensive
loss for the period ended
September 30, 2008	-	-	-	(14,483	)	(14,483	)
Balance, September 30, 2008	15,520,533	15,521	4,833,164	(4,866,334	)	(17,649	)

 

See accompanying Notes to the Financial Statements

F-3

---

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
	Nine Month		Nine Month
	Period Ended		Period Ended
	September 30,		September 30,
	2008		2007
	$		$
OPERATING ACTIVITIES
Net Loss	(14,483	)	(10,325	)
Changes in operating assets and liabilities:
- (Decrease) increase in accounts payable and accrued liabilities	(4,245	)	(5,357	)
Net cash (used in) operating activities	(18,728	)	(15,682	)
FINANCING ACTIVITIES
Advance from a related party	10,000		-
Net cash provided by financing activities	10,000		-
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(8,728	)	(15,682	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	20,109		38,853
CASH AND CASH EQUIVALENTS AT END OF PERIOD	11,381		23,171
SUPPLEMENTAL CASH FLOWS INFORMATION
Interest expense	-		-
Taxes	-		-
NON-CASH FINANCING ACTIVITIES
Stock issued for services	-		-

 

 

See accompanying Notes to the Financial Statements

F-4

---

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
September 30, 2008

 
NOTE 1 – NATURE AND CONTINUANCE OF OPERATIONS

These unaudited financial statements have been prepared in accordance with the instructions to SEC Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted pursuant to such instructions. These unaudited interim financial statements should be read in conjunction with the audited financial statements and notes thereto as at December 31, 2007.

In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation of these unaudited financial statements have been included and all such adjustments are of a normal, recurring nature. Operating results for the nine-month period ended September 30, 2008 are not necessarily indicative of the results that can be expected for the year ended December 31, 2008.

The Company does not currently have an active business which it is developing. It has no revenue other than nominal interest income and has accumulated losses of $4,866,334. Until a business is acquired or developed and a self-sustaining level of operations is attained, any future financing will likely involve the further issuance of capital stock. The Company’s financial statements were prepared using generally accepted accounting principles applicable to a going concern, which contemplate the realization of assets and discharge of liabilities in the normal course of business. Management intends to secure additional financing through the issuance of stock. However, there can be no assurance that management will be successful in its efforts to secure additional financing through the issuance of common shares, or that it will ever develop a business, which is self-supporting. Such limitations could have a material adverse effect on the Company’s financial condition or operations, and these financial statements do not include any adjustments that could result therefrom. These factors together raise substantial doubt about its ability to continue as a going concern.
 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and cash equivalents

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. As at September 30, 2008 and December 31, 2007, the Company has $nil and $nil cash equivalents and $ nil and $nil are over the federally insured limit.

Advertising costs

All advertising costs are expensed as incurred. During the periods ended September 30, 2008 and 2007 the Company did not incur any advertising costs.

 

 

 

F-5

---

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
September 30, 2008

 
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Stock-based compensation

The Company has adopted SFAS No. 123R "Share Based Payments" in accounting for stock options and similar equity instruments. Accordingly, compensation costs attributable to stock options or similar equity instruments granted to employees are measured at the fair value at the grant date, and expensed over the expected vesting period with a corresponding increase to additional paid-in capital. Transactions in which goods or services are received from non-employees in exchange for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. As at September 30, 2008 and December 31, 2007 and for the periods then ended the Company has not issued any stock options or similar equity instruments.

Comprehensive income

In accordance with SFAS 130, “Reporting Comprehensive Income” (“SFAS 130"), comprehensive income consists of net income and other gains and losses affecting stockholders’ equity that are excluded from net income, such as unrealized gains and losses on investments available for sale, foreign currency translation gains and losses when the functional currency is not U.S. dollars, and minimum pension liability.

For the periods ended September 30, 2008 and 2007, the Company’s financial statements include none of the additional elements that affect comprehensive income. Accordingly, net income (loss) and comprehensive income (loss) are identical.

Loss per share

Basic loss per common share has been calculated based on Halo’s weighted average number of common shares outstanding during the period. Diluted net income (loss) per share on the potential exercise of the equity-based financial instruments is not presented where anti-dilutive.

Use of estimates

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

 

 

 

F-6

---

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
September 30, 2008

 
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Financial instruments and financial risk

The Company’s financial instruments consist of cash and cash equivalents, accounts payable and accrued liabilities and due from a related party. It is management’s opinion that the Company is not exposed to significant interest rate, foreign currency fluctuation risks or credit risks arising from these financial instruments and, unless otherwise noted, that the fair value of the current assets and liabilities approximate their carrying values due to their short-term nature.

Translation of foreign currencies

The Company’s functional currency is U.S. dollars and unless otherwise indicated all amounts in these financial statements are stated in U.S. dollars.

Revenues and expenses arising from foreign currency transactions are translated into United States dollars at the average rate of exchange for the period. Monetary assets and liabilities denominated in foreign currencies are translated into United States dollars at the rates prevailing on the balance sheet date. Other assets and liabilities are translated into United States dollars at the rates prevailing on the transaction dates. Exchange gains and losses are recorded as income or expense in the period in which they occur.

Income taxes

The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, all expected future events other than enactment of changes in the tax laws or rates are considered.

Due to the uncertainty regarding the Company’s profitability, the deferred tax benefits of its losses have been fully reserved for and no net tax benefit has been recorded in the financial statements.

Recent accounting pronouncements

In May 2008, the FASB issued SFAS No. 163, “Accounting for Financial Guarantee Insurance Contracts – An interpretation of FASB Statement No. 60”. SFAS No. 163 requires that an insurance enterprise recognize a claim liability prior to an event of default when there is evidence that credit deterioration has occurred in an insured financial obligation. It also clarifies how Statement 60 applies to financial guarantee insurance contracts, including the recognition and measurement to be used to account for premium revenue and claim liabilities, and requires expanded disclosures about financial guarantee insurance contracts. It is effective for financial statements issued for fiscal years beginning after December 15, 2008, except for some disclosures about the insurance enterprise’s risk-management activities. SFAS No. 163 requires that disclosures about the risk-management activities of the insurance enterprise be effective for the first period beginning after issuance. Except for those disclosures, earlier application is not permitted. The adoption of this statement is not expected to have a material effect on the Company’s financial statements.

 

F-7

---

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
September 30, 2008

 
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recent accounting pronouncements (continued)

In May 2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted Accounting Principles”. SFAS No. 162 identifies the sources of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles in the United States. It is effective 60 days following the SEC’s approval of the Public Company Accounting Oversight Board amendments to AU Section 411, “The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles”. The adoption of this statement is not expected to have a material effect on the Company’s financial statements.

In March 2008, the FASB issued FASB Statement No. 161 ("SFAS 161"), "Disclosures about Derivative Instruments and Hedging Activities". SFAS 161 requires companies with derivative instruments to disclose information that should enable financial-statement users to understand how and why a company uses derivative instruments, how derivative instruments and related hedged items are accounted for under FASB Statement No. 133 "Accounting for Derivative Instruments and Hedging Activities" and how derivative instruments and related hedged items affect a company's financial position, financial performance and cash flows. SFAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. The adoption of this statement is not expected to have a material effect on the Company's future financial position or results of operations.

In December 2007, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements - An amendment of ARB No. 51”.SFAS 160 requires companies with noncontrolling interests to disclose such interests clearly as a portion of equity but separate from the parent’s equity. The noncontrolling interest’s portion of net income must also be clearly presented on the Income Statement. SFAS 160 is effective for financial statements issued for fiscal years beginning after December 15, 2008. The adoption of this statement is not expected to have a material effect on the Company's future financial position or results of operations.

In December 2007, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 141,(revised 2007), “Business Combinations”. SFAS 141 (R) applies the acquisition method of accounting for business combinations established in SFAS 141 to all acquisitions where the acquirer gains a controlling interest, regardless of whether consideration was exchanged. Consistent with SFAS 141, SFAS 141 (R) requires the acquirer to fair value the assets and liabilities of the acquiree and record goodwill on bargain purchases, with main difference the application to all acquisitions where control is achieved. SFAS 141 (R) is effective for financial statements issued for fiscal years beginning after December 15, 2008. The adoption of this statement is not expected to have a material effect on the Company's future financial position or results of operations.

The FASB has additionally issued SFAS No. 155 to SFAS No. 159 and FIN No. 48 but they will not have any relationship to the current operations of the Company. Therefore, a description and its impact on the Company’s operations and financial position for each have not been disclosed.

 

 

F-8

---

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
September 30, 2008

 
NOTE 3– COMMON STOCK

As at September 30, 2008 and December 31, 2007, there are no shares subject to warrants, agreements or options.
 

NOTE 4 – INCOME TAXES

No provision for income taxes has been made for the periods presented as the Company incurred net losses.

The potential benefit of net operating loss carry forwards has not been recognized in the financial statements since the Company cannot be assured that it is more likely than not that such benefit will be utilized in future years.

The approximate tax effects of each type of temporary difference that gives rise to future tax assets are as follows:

	Period Ended		Year Ended
	September 30,		December 31,
	2008		2007
	$		$
Net operating loss carry forwards
(expiring in 2008 to 2028)	3,747,545		3,733,062
Statutory tax rate	20 % - 39%		20 % - 39%
Deferred tax assets
- net operating loss carry forwards	1,461,543		1,455,894
Less: Valuation allowance	(1,461,543 )		(1,455,894 )
Net deferred tax assets	-		-

 
NOTE 5 – RELATED PARTY TRANSACTIONS

As at September 30, 2008, the amount of $10,000 (December 31, 2007 – $nil) is due to the President of the Company for cash advanced to the Company. This advance is non-interest bearing, unsecured and due on demand.

 

F-9

---

ITEM 2.      MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

      This quarterly report contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

      Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

      Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars. All references to “common shares” refer to the common shares in our capital stock.

      As used in this quarterly report the terms “we”, “us”, “our”, the “Company” and “HALO” means Health Anti-Aging Lifestyle Options, Inc., unless otherwise indicated.

General

      The Company was incorporated under the laws of Utah as Daur & Shaver, Inc. on October 24, 1986. On August 31, 1987, the Company completed the acquisition of all of the outstanding common shares of Western Antenna Research, Inc. a Colorado corporation. The Company’s name was subsequently changed to Western Antenna Corporation. After two years of unsuccessful operations Western Antenna Research, Inc. was abandoned, the name of the Company was changed to Hortitech, Inc. and the Company was reclassified as a development stage enterprise on November 29, 1989. Subsequently, the name of the Company was changed to MicroAccel, Inc. on February 2, 2000.

      Effective February 28, 2002, the Company issued 11,614,133 common shares to acquire 99.65% of the outstanding common stock of Network Lifestyle Radio Corp. (“NLR”). The share exchange was on a one share for one share basis. The Company subsequently changed its name from MicroAccel to Health Anti-Aging Lifestyle Options, Inc.

      On March 31, 2003, the Company completed Compromise and Settlement Agreements to rescind certain Share Exchange Agreements entered into with former shareholders of NLR. The transactions resulted in the Company transferring and delivering directly and indirectly 5,452,500 common shares in NLR to former directors and executive officers of the Company, who were also prior shareholders of NLR; 4,981,500 common shares in NLR to prior shareholders of NLR and 1,180,133 common shares in NLR to NLR’s treasury on behalf of the 22 former NLR shareholders who did not participate in the rescission. The Company received from the former shareholders of NLR an aggregate of 10,205,500 shares of its own common stock, which the Company cancelled.

      We are a development stage company and have not yet generated or realized any revenues from our business operations. Operating capital has been raised through the Company's shareholders. We have no revenue other than interest income and have accumulated losses during the development stage of $4,866,334. We expect to generate operating losses during some or all of our planned development stages, which raises substantial doubt about our ability to continue as a going concern. In view of these matters, our ability to continue as a going concern is dependant upon our ability to meet our financial requirements, raise additional capital; which will likely involve the further issuance of capital stock, and the success of our future operations.

---

      Our plan of operation for the next twelve months will be to (i) consider guidelines of industries in which the Company may have an interest; (ii) adopt a business plan regarding engaging in business in any selected industry; (iii) to commence such operations through funding and/or the acquisition of a “going concern” engaged in any industry selected.

Plan of Operation

      The Company is in the development stage and continues to explore new business opportunities. We have not identified any new business opportunities and have no agreements related to such opportunities. Our plan of operation over the next twelve months is to: (i) consider guidelines of industries in which the Company may have an interest; (ii) adopt a business plan regarding engaging in business in any selected industry; (iii) commence such operations through funding and/or the acquisition of a “going concern” engaged in any industry selected.

      If we are unable to identify any new business opportunities and cannot generate sufficient revenues to fund all of our anticipated expenses, we will either have to suspend operations until we do raise the cash, or cease operations entirely.

      We anticipate that additional funding will be in the form of equity financing from the sale of our common stock or as loans from our director. However, we have no assurance that we will be able to raise sufficient funding from the sale of our common stock to fund all of our anticipated expenses. We do not have any arrangements in place for any future equity financing.

Results of Operations

      For the quarter just ended, much of our efforts were directed at locating new business opportunities and maintaining the Company’s regulatory filings. To date, we have not identified any new business opportunities and have no agreements related to such opportunities.

      We remain a company in the development stage. Our balance sheet as of September 30, 2008 reflects total assets of $11,381 comprising of cash. We had total liabilities of $29,030 for a working capital deficiency of $17,649. During the period just ended, our President advanced a total of $10,000 for general working capital. This advance will need to be repaid once funds become available. There can be no assurance that he will continue to advance funds as required or that other methods of financing will be available or accessible on reasonable terms. If additional capital is required we will raise the funds by issuing debt and/or equity securities although we have no current arrangements or agreements to such financings at this time.

      For the nine-month period ended September 30, 2008, we recorded a net loss of $14,483 and a total loss of $4,866,334 from inception. We spent $14,485 in general and administrative expenses as compared to $10,328 for the same nine-month period ended September 30, 2007.

     During the quarter ended September 30, 2008, we did not issue any common stock.

Liquidity

     As of the date of this report, the Company has yet to generate any revenues from its business operations.

      We had cash on hand of $11,381 as at September 30, 2008 and a working capital deficiency of $17,649 as compared to cash on hand of $20,109 and working capital deficiency of $3,166 as at December 31, 2007.

      We believe we cannot sustain our operations from existing working capital and operations over the next twelve months. As we have yet to commence operations, we have not generated any revenues and there can be no assurance that we can generate significant revenues from operations. During the next twelve months, we

---

expect to incur administrative and professional charges associated with preparing, reviewing, auditing and filing our financial statements and our periodic and other disclosure documents to maintain the Company in good standing or the payment of expenses associated with reviewing or investigating any potential business ventures. We intend to raise additional capital required to fund our financing needs by issuance of debt and/or equity, although the Company has no current arrangements or agreements related to such financings.

      To date our President has advanced a total of $10,000 for additional working capital but there can be no assurance that he will continue to advance funds as required or that other methods of financing will be available or accessible on reasonable terms.

      Our failure to generate revenue and conduct operations since inception raises substantial doubt about the Company’s ability to continue as a going concern. We will require substantial working capital, and currently have inadequate capital to fund all of our business strategies, which could severely limit our operations or cease operations entirely.

 
ITEM 4.      CONTROLS AND PROCEDURES.

     Evaluation of disclosure controls and procedures

      We maintain “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in reports 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 principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

      In designing and evaluating our disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable assurance of achieving the desired control objectives, and we necessarily are required to apply our judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures.

      Our management, including our principal executive officer and principal financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2008 and concluded that our disclosure controls and procedures are not effective, because certain deficiencies involving internal controls; if aggregated; may constitute a material weakness as discussed in our amendment to our Annual Report on Form 10-K for the year ended December 31, 2007, as filed with the Securities and Exchange Commission on August 12 ^th , 2008. Management believes that these deficiencies did not have an effect on the accuracy of the Company’s financial statements for the current reporting period.

      The Company’s deficiencies involving internal control over financial reporting that we identified in our Amendment to the Annual Report relates to the lack of segregation of duties for the preparation of our financial statements, lack of audit committee, lack of sufficient information technology controls and procedures and insufficient documentation of financial statements preparation and review procedures; as the majority of the preparation of financial statements is carried out by one person. The deficiencies identified did not result in the restatement of any previously reported financial statements or any other related financial disclosure, nor does management believe that it had any effect on the accuracy of the Company’s financial statements for the current reporting period.

      Once the Company is engaged in a business of merit and has sufficient personnel available, it intends to mitigate the aforementioned deficiencies to the fullest extent possible. The Company intends to appoint additional personnel to assist in the preparation of the Company’s financial statements; allowing for proper segregation of duties and documentation, have our Board of Directors nominate an audit committee and audit committee financial expert and engage in a thorough review and restatement of our information technology control procedures including the procurement of all hardware and software allowing for proper backups, access and control of financial data.

---

Changes in Internal Control over Financial Reporting

      During the most recently completed fiscal quarter, there has been no change in our internal control over financial reporting that has materially affected or is reasonably likely to materially affect, our internal control over financial reporting.

 
PART II. OTHER INFORMATION

ITEM 5.      OTHER INFORMATION.

      On September 3, 2008, Mr. David Alley was elected to the Board of Directors. This date also marked the resignation of Bruce Schmidt from his positions of Director, President, Chief Executive and Chief Financial Officer, Secretary-Treasurer and Principle Accounting Officer of the Company. Effective immediately, David Alley assumed the positions of President, Chief Executive and Chief Financial Officer, Secretary-Treasurer and Principle Accounting Officer to fill the vacancy created by Mr. Schmidt’s resignation. This event was reported on Form 8-K filed with the Securities and Exchange Commission via EDGAR on September 5, 2008.

 
ITEM 6.      EXHIBITS.

     The following documents are included herein:

Exhibit No.	Document Description
31.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-
	15(e) and 15d-15(e), promulgated under the Securities and Exchange Act of 1934, as
	amended.
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
	Sarbanes-Oxley Act of 2002 (Chief Executive Officer and Chief Financial Officer).

 

 

 

 

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on this 29 ^th day of October, 2008.

	HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.
	(Registrant)
	BY:	DAVID ALLEY
		David Alley
		President, Principal Executive Officer, Principal
		Accounting Officer, Principal Financial Officer,
		Secretary/Treasurer, and member of the Board of
		Directors.

 

 

 

 

 

 

 

 

 

---

EXHIBIT INDEX

Exhibit No.	Document Description
31.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-
	15(e) and 15d-15(e), promulgated under the Securities and Exchange Act of 1934, as
	amended.
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
	Sarbanes-Oxley Act of 2002 (Chief Executive Officer and Chief Financial Officer).

 

 

 

 

 

 

 

 

 

 

 

---