ITEM 1. DESCRIPTION OF BUSINESS
GENERAL
Salty's Warehouse, Inc. (The Company) was incorporated in Florida on July 16, 1998 and was engaged in selling name brand consumer products over the Internet. The Company focused on selling consumer electronics.
On December 11, 2006, owners of an aggregate of 22,450,000 shares of common stock, of Salty's Warehouse, Inc. sold in a private transaction all of the shares held by them to a group of approximately 54 purchasers. As a result of this transaction, a change of control in the Company occurred resulting, subsequently, in a change in the name of the Company to Eworld Interactive, Inc. (Eworld).
eWorld Interactive formerly operated: eWorld China ( WWW.EWORLDCHINA.CN including WWW.17DIAN.CN ) and Mojo Mediaworks.
Eworld was the developer of eworldchina.cn, an online community focused on entertainment content provided by both professional content producers and amateur content produced by users of the website. The online platform allowed users to create and define their own personal space in the community, then interact with and within the community on multiple levels.
Effective May 11, 2007 Eworld Interactive, Inc. (Eworld) acquired 100% of the issued and outstanding equity of Mojo Media Works, Limited (Mojo), a British Virgin Islands company. The principal business of Mojo and its subsidiary companies was to establish a new business in the production and distribution of television programs in the Peoples Republic of China (PRC).
Although, Eworld Interactive was able to launch an online game as intended and Mojo Media Works was able to produce a television show in the PRC as intended, revenues did not develop rapidly enough to sustain operations and the Company was unable to obtain sufficient additional financing to maintain operations.
The Company has disposed of Shanghai Eworld China Information Technologies Co., Ltd ("Eworld China") and Mojo Media Works Limited and its subsidiaries in August 2008. The Company has ceased all business in online game and media production business and became a shell company with no functional operations.
In March of 2009, the Company entered into a stock purchase agreement with Blue Atelier, under which Inc. Blue Atelier acquired 25,000,000 newly authorized and issued common stock of Eworld Interactive Inc. ("EWRL") after EWRL executed a forty to one reverse split of the presently issued and outstanding EWRL common stock in exchange for $250,000 and Blue Atelier provided the Company a non- interest bearing loan up to $250,000 for costs and fees required to maintain the full reporting status of EWRL and quotation of its common stock on the OTCBB with advances made under this loan to go towards the cost of the newly issued stock.. The Company completed the forty to one reverse split in September 2009 and entered into a series of agreements with various holders of Convertible Notes to convert $2,226,185 of notes payable plus accumulated interest of $501,283 to E World Common Stock in the aggregate to 6,872,830 shares of common stock. Following this, Blue Atelier acquired 25,000,000 of newly authorized and issued common stock for $250,000 in accordance with the stock purchase agreement.
The Company is now seeking to acquire a new operating entity that may have a different business scope.
Eworld Interactive, Inc. has never declared bankruptcy, has never been in receivership.
The common stock of Eworld Interactive, Inc. is quoted on the OTC Bulletin Board under the symbol EWRL.OB.
The Company has a December 31st fiscal year end.
EMPLOYEES
At December 31, 2009 the Company had two employees, Mr. Guy Peckham, the Company President and Chief Executive Officer and Gerry Shirren as Chief Operations Officer and Chief Financial Officer. Mr. Peckham resigned as President and Chief Executive Officer on April 08, 2010.
ITEM 2.
ITEM 2. DESCRIPTION OF PROPERTY
Eworld Interactive, Inc. has no properties and at this time has no agreements to acquire any properties although it may do so in the future.
The Company's temporary offices are at 1147 Kang Ding Road, Room 208, Block D, Shanghai, China 200042; comprised of facilities for administrative offices. The facilities are provided as needed cost free by our President. We believe that the foregoing facilities are sufficient for our current operational needs.
ITEM 3.
ITEM 3. LEGAL PROCEEDINGS
No legal proceedings were initiated or served upon the Company in the fiscal year ending December 31, 2009. We are not currently involved in any material legal proceedings. We are not aware of any material legal proceedings pending against us.
ITEM 4.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the fourth quarter of fiscal year 2009.
The company executed a 40/1 reverse split following the approval of a majority of the shareholders with the holders of over 56% of the shares eligible to vote supporting the Board's decision for the reverse split.
PART II
ITEM 5.
ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
On December 31, 2009, there were approximately 72 shareholders of record and an undetermined number of holders in street name and the Company's common stock is traded on the Over the Counter Bulletin Board, trading symbol "EWRL".
ITEM 7.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Eworld Interactive, Inc. common stock is quoted on the Over-The-Counter Bulletin Board under the symbol "EWRL.OB". The first available quotations on the Over-The-Counter Bulletin Board appear at the end of January 2007. The quotations provided are for the over the counter market which reflect interdealer prices without retail mark-up, mark-down or commissions, and may not represent actual transactions. The prices included below have been obtained from sources believed to be reliable:
Period Ending Open High Low Close - -------------		-----	 ----- -----	 -----
December 31, 2009 0.045 0.045 0.045 0.045 September 30, 2009 0.02 0.02 0.02 0.02 June 30, 2009 0.004 0.004 0.004 0.004 $0.002 $0.002 $0.002 $0.002 March 31, 2009 December 31, 2008 0.001 0.001 0.001 0.001 September 30, 2008 0.01 0.01 0.01 0.01 June 30, 2008 0.05 0.05 0.05 0.05 March 31, 2008 0.13 0.13 0.13 0.13 December 31, 2007 0.40 0.42 0.25 0.33 September 28, 2007 0.42 0.46 0.31 0.41 June 29, 2007 0.96 0.98 0.38 0.49 March 30, 2007 0.66 0.71 0.66 0.66 January 31, 2007 1.15 1.17 1.01 1.10
Holders
Total shares outstanding as of December 31, 2009 were 33,252,480; and were held by approximately 72 shareholders of record and an undetermined number of holders in street name.
Dividend Policy
Eworld Interactive, Inc. has never paid a cash dividend on its common stock and does not anticipate paying any cash dividends on its common stock in the next 12 month period.
We intend to follow a policy of retaining earnings, if any, to finance the growth of the business and do not anticipate paying any cash dividends in the foreseeable future. The declaration and payment of future dividends on the Common Stock will be the sole discretion of the Board of Directors and will depend on our profitability and financial condition, capital requirements, statutory and contractual restrictions, future prospects and other factors deemed relevant.
Outstanding Options/Warrants
At December 31, 2009, we have no warrants
Eworld Interactive, Inc.
Equity Compensation Plan Information
The following table provides information as of March 31, 2009 regarding compensation plans under which our equity securities are authorized for issuance:
1.. Effective March 18, 2008, our Board of Directors approved the adoption of a Stock Option Plan allowing for the direct award of stock or granting of stock options to directors, officers, employees and consultants to acquire up to a total of 6,000,000 shares of common stock. The exercise price of the option shall not be less than 100 percent of the Fair Market Value of a Share on the date of grant and shall be determined by the Board of Directors of the Company at its sole discretion.
2. On March 18, 2008, we authorized the issuance of 4,090,000 shares to the Company officers and third party consultants for their services provided for the year ended December 31, 2007. We used the market value of our stock on the date the shares were authorized to determine the amount of shares to be issued for the charges. The shares were later issued in June 2008.
Recent Sales of Unregistered Securities
During the 12 month period ended December 31, 2009, the company sold
1. 25,000,000 shares of E World common stock for cash and
2. Issued 6,872,830 shares of E World common stock for the conversion of Convertible Notes and interest outstanding.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements
This statement may include projections of future results and "forward looking statements" as that term is defined in Section 27A of the Securities Act of 1933 as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 as amended (the "Exchange Act"). All statements that are included in this Annual Report, other than statements of historical fact, are forward looking statements. Although management believes that the expectations reflected in these forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.
Critical Accounting Policies
IMPAIRMENT OF LONG-LIVED ASSETS AND INTANGIBLE ASSETS
Long-lived assets and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company assesses the recoverability of the long-lived assets and intangible assets (other than goodwill) by comparing the carrying amount to the estimated future undiscounted cash flow associated with the related assets. The Company recognizes impairment of long-lived assets and intangible assets in the event that the net book value of such assets exceeds the estimated future undiscounted cash flow attributed to such assets. The Company uses estimates and judgments in its impairment tests and if different estimates or judgments had been utilized, the timing or the amount of the impairment charges could be different.
REVENUE RECOGNITION
Online game services
The Company formerly earned revenue from sales of its prepaid game cards and prepaid online points for its online game products sold to distributors who in turn ultimately sell them to end customers. All prepaid fees received from distributors are initially recognized as advances from customers. Prepaid fees are recognized as deferred revenue upon the customer's online registration and activation of their cards or online points. Players can access our games free of charges but may use game points for in-game premium features. The distribution of points to end users is typically made by sales of prepaid game cards and prepaid online points. Fees of prepaid game cards and prepaid online points are deferred when received. Revenue is recognized over the life of the premium features or as the premium features are consumed. Unused prepaid cards were returned to respective distributors upon the disposal of Eworld China in August 2008. The Company no longer has any online game revenue subsequent to the disposal.
Media Production Consulting Services
The Company recognizes revenue in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 104 ("SAB 104"), "Revenue Recognition in Financial Statements." The Company accounts for revenue as a principal using the guidance in EITF 99-19, "Reporting Revenue Gross as a Principal vs. Net as an Agent.
Revenue represents the invoiced values of service, net of business taxes. The media production revenue was mainly derived from the consulting services on the media production for the "American Next Top Model" in China. Accordingly, the related revenue was recognized when all four of the following criteria were met: (i) pervasive evidence that an arrangement exists; (ii) delivery of the service has occurred; (iii) the price of the services is both fixed and determinable; and (iv) collection of the resulting receivable is reasonably assured. The Company no longer has any media production revenue subsequent to the disposal of Mojo Media Limited and its subsidiary in August 2008.
EWORLD INTERACTIVE, INC.
Plan of Operations
eWorld Interactive formerly operated: eWorld China (WWW.EWORLDCHINA.CN including WWW.17DIAN.CN) and Mojo Mediaworks.
Although, Eworld Interactive was able to launch an online game as intended and Mojo Media Works was able to produce a television show in the PRC as intended, revenues did not develop rapidly enough to sustain operations and the Company was unable to obtain sufficient additional financing to maintain operations.
The Company has disposed of Shanghai Eworld China Information Technologies Co., Ltd ("Eworld China") and Mojo Media Works Limited and its subsidiaries in August 2008. The Company has ceased all business in online game and media production business and became a shell company with no functional operations.
In March of 2009, the Company entered into a stock purchase agreement with Blue Atelier, Inc. under which Blue Atelier acquired 25,000,000 newly authorized and issued common stock of Eworld Interactive Inc. ("EWRL") after EWRL executed a forty to one reverse split of the presently issued and outstanding EWRL common stock in exchange for $250,000. Blue Atelier provided the Company a non- interest bearing loan up to $250,000 for costs and fees required to maintain the full reporting status of EWRL and quotation of its common stock on the OTCBB with advances made under this loan to go towards the cost of the newly issued stock. The Company completed the forty to one reverse split in September 2009 and entered into a series of agreements with various holders of Convertible Notes to convert $2,226,185 of notes payable plus accumulated interest to E World Common Stock in the aggregate of $501,283 to 6,872,830 shares of common stock. Following this, Blue Atelier acquired 25,000,000 of newly authorized and issued common stock for $250,000 in accordance with the stock purchase agreement.
EWRL Company expects to seek to acquire a new operating entity that may have a different business scope.
It may be that any acquisition of a business venture that the Company makes would be by conducting a reorganization involving the issuance of the Company ' s restricted securities. Such a reorganization may involve a merger (or combination pursuant to state corporate statutes, where one of the entities dissolves or is absorbed by the other), or it may occur as a consolidation, where a new entity is formed and the Company and such other entity combine assets in the new entity.
There are currently no contracts or agreements between any operating companies that are searching for shell companies with which to merge.
Eworld Interactive, Inc.
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Comparison of Results of Operations for the Year Ending December 31, 2009 and December 31, 2008
The Company reported a net loss $2,570,629 for the year ending December 31, 2008 versus a net profit of $2,652,618 after Extraordinary Items for the year ending December 31, 2009.
For the year ending December 31, 2008; primary contributors to the net loss of $2,570,629 included professional fees of $592,723; general and administrative expenses of $740,224; salaries and benefits of $473,847; office expenses of $315,364; expenses related to the impairment of intangible assets and license fees of $1,108,903; and, loan fees totaling $53,820. Interest expense for 2008 was $419,099
For the year ending December 31, 2009; primary contributors to the net profit of $2,652,618 included professional fees of $134,185; general and administrative expenses of $-73,934; provision for bad debts of $101,337; and loan fees totaling $92,253. Interest expense for 2009 was $134,780 and extraordinary items resulted in gains of $3,041,239 resulting from the conversion of loans notes and accumulated interest.
Comparatively for the periods, net loss was significantly reduced in the year ended 2009 as compared to 2008 by recorded gains from extra ordinary items of $3,041,239 and the reduction in operating costs from discontinued operations.
Note: Prior period comparisons of results are impacted by developing operations and termination of operations during the periods covered and the migration of the Company to shell company status.
Results for the year ending December 31, 2009:
Liquidity and Capital Resources
During the fiscal year ending December 31, 2009 net cash used in operating activities totaled $-322,449. Cash used in investing activities totaled $0. Cash provided by financing activities totaled $318,185 and included $250,000 from the sales of common stock for cash.
During the fiscal year ending December 31, 2008 net cash used in operating activities totaled $1,701,559. Cash used in investing activities totaled $6,535 for the purchase of fixed assets. Cash provided by financing activities totaled $1,456,185 and included $1,056,185 from convertible notes issued and $400,000 from the sales of assets.
Reduction in cash for the period was $3798.
Convertible Notes
In July 2007, we sold $500,000 in convertible notes at an interest rate of 12% per annum with a maturity period on 25 January 2008 (later extended to July 25, 2009). The notes are convertible at a 20% discount to the ten day average trading price at the time the request for conversion. The convertible notes had a beneficial conversion of $145,800. This was accreted as additional interest in the year ended December 31, 2007.
In November 2007, we sold $450,000 in convertible notes at an interest rate of 12% per annum with a maturity period on 25 January 2008 (later extended to July 25, 2009). The notes are convertible at a 20% discount to the ten day average trading price at the time the request for conversion. Also, the convertible notes had a beneficial conversion of $199,043. This was accreted as additional interest of the loans.
We extended the above convertible notes that were originally due on January 25, 2008 to July 25, 2008, and subsequently to July 25, 2009 with the terms and conditions as laid out in the original agreement. On March 18, 2008 we authorized 1,985,874 shares to be issued to the convertible note holders and 440,000 shares to be issued to the short term note lender as compensation for the maturity date extensions.
On March 3, 2008, we sold $50,000 in a convertible note at an interest rate of 12% per annum that matures on March 3, 2009. The note is convertible at a 20% discount to the ten-day average trading price of our stock at the time the request for conversion is received. The convertible note had a beneficial conversion of $4,348. This was accreted as additional interest expense.
During the second quarter of 2008, we sold $372,254 of convertible notes in aggregate at an interest rate of 12% per annum with maturity dates from April 5 to July 15, 2009. These notes are convertible at a 20% discount to the ten-day average trading price of our stock at the time the request for conversion is received. These convertible notes had a beneficial conversion of $101,509. This was accreted as additional interest expense.
On July 15, 2008, we sold $100,000 in a convertible note at an interest rate of 12% per annum that matures on July 15, 2009. The note is convertible at a 20% discount to the ten-day average trading price of our stock at the time the request for conversion is received. The convertible note had a beneficial conversion of $68,269. This was accreted as additional interest expense.
In April 2009, the Company entered into a series of agreements with the various holders of all convertible notes outstanding amount to $2,226,185 to convert the full amount of $2,226,185 of notes payable plus accumulated interest of $501,283 to E World Common Stock in the aggregate to 6,872,830 shares of common stock.
Material Impact of Known Events on Liquidity
Other than the general economic, financial and credit problems being experienced throughout the world markets and economies resulting in a general reduction of available credit and investment funds; we have not identified any known trends or any known demands, commitments, events or uncertainties that will result in or are reasonably likely to result in a material increase or decrease in our liquidity. We have historically financed our operations through the sale of our common equity and continue to experience the same difficulties in the current financial environment as we had in the past. Our limited operational history and lack of current revenues are more of an impact on financing efforts to sustain and expand our operations than the global economic condition.
Cash Flow Requirements for Operations
As of December 31, 2009 we had available cash of $77. Based on our historical cash needs for operations averaging approximately $100,000 per year, we were unable to sustain current operations and were forced to cease operations as a result of our inability satisfying our cash requirements with loans and equity sales. We currently have legal and accounting expenses with no revenue generating operations.
Going Concern
Our continuation as a going concern is dependent upon obtaining the additional working capital necessary to sustain our current status. As shown in the accompanying financial statements, the Company has incurred an accumulated deficit of $4,332,436 to the year ended December 31, 2009. The future of the Company is dependent upon its ability to obtain additional financing. Management plans to seek additional financing through debt or the sale of its common stock through private placements. There is no assurance that the will raise sufficient funds to continue. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements or financing activities with special purpose entities.
ITEM 8.
ITEM 8. FINANCIAL STATEMENTS
Our financial statements, together with the report of auditors, are as follows:
EWORLD INTERACTIVE, INC.
FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2008 AND DECEMBER 31, 2009
Eworld Interactive, Inc. Financial Statements Table of Contents
Page
INDEPENDENT AUDITORS REPORT
BALANCE SHEETS
STATEMENTS OF OPERATIONS
STATEMENT OF STOCKHOLDER'S EQUITY
STATEMENT OF CASH FLOWS
FOOTNOTES TO THE FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders Eworld Interactive, Inc.
We have audited the accompanying consolidated balance sheets of Eworld Interactive, Inc. (the "Company" or "Eworld") and its subsidiary as of December 31, 2009 and 2008, and the related consolidated statements of operations, stockholders' equity and comprehensive income, and cash flows for each of the years in the two-year period ended December 31, 2009. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated 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. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 consolidated financial statements referred to above present fairly, in all material respects, the financial position of Eworld Interactive, Inc and subsidiaries as of December 31, 2009 and 2008, and the results of their operations and their cash flows for each of the years in the two-year period ended December 31, 2009, in conformity with U.S. generally accepted accounting principles.
The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, as discussed in the Note 3 to the consolidated financial statements, the Company has now became dormant with no revenue after the disposal of Eworld China and Mojo Media Group in 2008, and the ability to continue as a going concern is dependent upon acquiring new company with profitable operations. The Company has also adopted additional measures to improve the Group immediate liquidity to sustain the Group as a going concern. The details are disclosed in Note 13 to the consolidated financial statements
The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Shanghai Perfect C.P.A Partnership Certified Public Accountants PRC, China 10 April, 2009
The accompanying notes are an integral part of these financial statements
EWORLD INTERACTIVE, INC. (A DEVELOPMENT STAGE COMPANY) NOTES TO FINANCIAL STATEMENTS
NOTE 1 - NATURE OF OPERATIONS The Company was incorporated in Florida on July 16, 1998 under the name of Salty's Warehouse, Inc. and was engaged in selling name brand consumer products over the Internet. The Company focused on selling consumer electronics and audio-video equipment such as speakers, amplifiers, and tuners, although the Company also sold assorted other goods such as watches, sunglasses and sports games. On December 11, 2006, owners of an aggregate of 22,450,000 shares of common stock, of Salty's Warehouse, Inc. sold in a private transaction all of the shares held by them to a group of approximately 54 purchasers. As a result of this transaction, a change of control in the Company occurred resulting, subsequently, in a change in the name of the Company to Eworld Interactive, Inc. As a result of this transaction, Mr. Guy Peckham acquired 14,077,229 common shares representing 62.7% of the total issued and outstanding common shares and changed the name of the Company to Eworld Interactive, Inc. (Eworld). Eworld mainly engaged in selling of online game services and media production business in Mainland China. As disclosed in Note 13 to the consolidated financial statements, the Company disposed Shanghai Eworld China Information Technologies Co., Ltd ("Eworld China") and Mojo Media Works Limited and its subsidiary in August 2008. The Company has since ceased all business in online game and media production business and became a dormant shelf company. The Company is currently seeking to acquire new operating entity that may have a different business scope. In March of 2009, the Company entered into a stock purchase agreement with Blue Atelier, Inc. Blue Atelier will acquire 25,000,000 newly authorized and issued common stock of Eworld Interactive Inc. ("EWRL") after EWRL executes a forty to one reverse split of the presently issued and outstanding EWRL common stock in exchange for $250,000 and Blue Atelier provided the Company a non-interest bearing loan up to $250,000 for costs and fees required to maintain the full reporting status of EWRL and quotation of its common stock on the OTCBB with advances made under this loan to go towards the cost of the newly issued stock..
The Company completed the forty to one reverse split in September 2009 and entered into a series of agreements with various holders of Convertible Notes to convert $2,226,185 of notes payable plus accumulated interest of $501,283 to E World Common Stock in the aggregate to 6,872,830 shares of common stock. Following this, Blue Atelier acquired 25,000,000 of newly authorized and issued common stock for $250,000 in accordance with the stock purchase agreement.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a)Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below.
b)Basis of consolidation
The consolidated financial statements include the financial statements of the Company, its subsidiaries and Variable interest entities for which the Company is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs' have been eliminated upon consolidation. The Group applied FIN 46, "Consideration of Variable Interest Entities, an Interpretation of ARB No. 51" ("FIN 46") for all the years presented. FIN 46 requires certain variable interest entities to be consolidated by the primary beneficiary of the entity if the equity investors in the entity do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties.
c)Cash and Cash Equivalents
The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.
d)Use of Estimates
The preparation of the financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and footnotes thereto. Actual results could differ from those estimates. Significant estimates inherent in the preparation of the consolidated financial statements include accounting for asset impairments, reserves established for doubtful accounts, equity-based compensation, depreciation and amortization, business combinations, income taxes, litigation matters and contingencies.
e)Significant Risks and Uncertainties
The Company's management believes that changes in any of the following areas could have a material adverse effect on the Company's future financial position, results of operations or cash flows: the Company's limited operating history; The Company's ability to acquire new company with profitable operations; advances and trends in new technologies and industry standards; competition from other competitors; regulatory or other PRC related factors; risks associated with the Company's ability to attract and retain employees necessary to support its growth; and risks associated with the Company's growth strategies.
f)Allowance of doubtful accounts
The Company establishes an allowance for doubtful accounts based on management's assessment of the collectability of trade receivable. A considerable amount of judgment is required in assessing the amount of the allowance and the Company considers the historical level of credit losses and applies percentages to aged receivable categories. The Company makes judgments about the creditworthiness of each customer based on ongoing credit evaluations, and monitors current economic trends that might impact the level of credit losses in the future. If the financial condition of the customers were to deteriorate, resulting in their inability to make payments, a larger allowance may be required. Based on the above assessment, during the reporting years, provision is made against trade receivables to the extent which they are considered to be doubtful. Bad debts are written off when identified.
g)Property, equipment and software
The company has no fixed assets.
h)Deferred revenue and prepaid production costs
No deferred revenues or expenses were incurred as at December 31, 2008 or for December 31, 2009.
i)License fees
Upfront licensing fees paid to licensors are recognized as intangible assets if the game software has reached technological feasibility when such payments are made. Technological feasibility is established upon completion of a working model. License fees are amortized on a straight-line basis over the license period. The company now holds no licenses.
j)Impairment of long-lived assets and intangible assets
Long-lived assets and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company assesses the recoverability of the long-lived assets and intangible assets (other than goodwill) by comparing the carrying amount to the estimated future undiscounted cash flow associated with the related assets. The Company recognizes impairment of long-lived assets and intangible assets in the event that the net book value of such assets exceeds the estimated future undiscounted cash flow attributed to such assets. The Company uses estimates and judgments in its impairment tests and if different estimates or judgments had been utilized, the timing or the amount of the impairment charges could be different.
The company now holds no long lived assets or intangible assets.
k)Revenue Recognition
Online game services
The Company earns revenue from sales of its prepaid game cards and prepaid online points for its online game products sold to distributors who in turn ultimately sell them to end customers. All prepaid fees received from distributors are initially recognized as advances from customers. Prepaid fees are recognized as deferred revenue upon the customer's online registration and activation of their cards or online points. Players can access our games free of charges but may use game points for in-game premium features. The distribution of points to end users is typically made by sales of prepaid game cards and prepaid online points. Fees of prepaid game cards and prepaid online points are deferred when received. Revenue is recognized over the life of the premium features or as the premium features are consumed.
Unused prepaid cards were returned to respective distributors upon the disposal of Eworld China in August 2008. The details of the disposal are set in Note 13 to the consolidated financial statements. The Company no longer has any online game revenue subsequent to the disposal.
Media Production Consulting Services
The Company recognizes revenue in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 104 ("SAB 104"), "Revenue Recognition in Financial Statements." The Company accounts for revenue as a principal using the guidance in EITF 99-19, "Reporting Revenue Gross as a Principal vs. Net as an Agent. Revenue represents the invoiced values of service, net of business taxes. The media production revenue was mainly derived from the consulting services on the media production for the "American Next Top Model" in China. Accordingly, the related revenue was recognized when all four of the following criteria were met: (i) pervasive evidence that an arrangement exists; (ii) delivery of the service has occurred; (iii) the price of the services is both fixed and determinable; and (iv) collection of the resulting receivable is reasonably assured.
k)Revenue Recognition (continued)
Media Production Consulting Services (continued)
The Company no longer has any media production revenue subsequent to the disposal of Mojo Media Limited and its subsidiary in August 2008. The details of the disposal are set in Note 13 to the consolidated financial statements.
l)Sales and marketing costs
Sales and marketing costs consist primarily of costs of advertising and promotional expenses, payroll and other overhead expenses incurred by the Company's sales and marketing personnel. Advertising expenses in the amount of $0 for the year ended December 31, 2009 (2008: $226,079) were expensed as incurred.
m)Leases
Leases for which substantially all of the risks and rewards of ownership of assets remain with the leasing company are accounted for as operating leases. The company holds no leases.
n)Taxation
The Company accounts for income taxes under the provisions of SFAS No. 109, "Accounting for Income Taxes". Under SFAS No. 109, income taxes are accounted for under the asset and liability method. Deferred taxes are determined based upon differences between the financial reporting and tax bases of assets and liabilities at currently enacted statutory tax rates for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period of change.
A valuation allowance is provided on deferred tax assets to the extent that it is more likely than not that such deferred tax assets will not be realized. The total income tax provision includes current tax expenses under applicable tax regulations and the change in the balance of deferred tax assets and liabilities.
We adopted FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109 ("FIN 48") as of January 1, 2007. FIN 48 clarifies the accounting for uncertainty in income taxes recognized in companies' financial statements in accordance with FASB Statement No. 109, Accounting for Income Taxes. As a result, we apply a more- likely-than-not recognition threshold for all tax uncertainties. FIN 48 only allows the recognition of those tax benefits that have a greater than fifty percent likelihood of being sustained upon examination by the taxing authorities. As a result of implementing FIN 48, we have reviewed our tax positions and determined there were no outstanding, or retroactive tax positions with less than a 50% likelihood of being sustained upon examination by the taxing authorities, therefore the implementation of this standard has not had a material affect on the Company.
We file income tax returns in the United States, however our subsidiaries and VIE's operate under foreign jurisdictions.
We classify tax-related penalties and net interest as income tax expense. As of December 31, 2009 and 2008, no income tax expense has been incurred.
o)Basic and Diluted Net Earnings (Loss) Per Share
The Company computes net income (loss) per share in accordance with SFAS No. 128, "Earnings per Share" SFAS No. 128 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive. Diluted loss per share is equal to basic loss per share as the Company does not have any dilutive instruments. At December 31, 2009, there are no warrants and convertible notes outstanding.
p) Foreign Currency Translation
The functional and reporting currency of the Company is the United States dollar ("US dollar"). Monetary assets and liabilities denominated in currencies other than the US dollar are translated into the US dollar at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the US dollar during the year converted into US dollar at the applicable rates of exchange prevailing at the first day of the month transactions occurred. The financial records of the Company's PRC subsidiary are maintained in its local currency, the Renminbi ("RMB"), which is its functional currency. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, and gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of comprehensive income (loss) in the statement of stockholders' equity.
q)Comprehensive Income
The Company utilizes SFAS No. 130, "Reporting Comprehensive Income". This statement establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at December 31, 2009 and 2008, the Company's only item that represents comprehensive income is the foreign currency translation adjustments.
r)Fair value of Financial Instruments
The carrying value of the Company's financial instruments, including cash and cash equivalents, trade, bills and other receivables, amount due from/to related parties and trade and other payables approximate their fair values due to the immediate or short-term maturity of these instruments.
It is the management's opinion that the Company is not exposed to significant interest, price or credit risks arising from these financial instruments.
The Group did not have any hedging transactions during the reporting periods. As the functional currency of the subsidiaries operating in Mainland China is RMB, the exchange difference on translation to US dollar for reporting purpose is taken to other comprehensive income.
s)Business combination
The Company accounts for its business combinations using the purchase method of accounting in accordance with SFAS 141. This method requires that the acquisition cost to be allocated to the assets, including separate identifiable intangible assets, and liabilities the Company acquired based on their estimated fair values. The Company makes estimates and judgments in determining the fair value of the acquired assets and liabilities based on independent appraisal reports as well as its experience with similar assets and liabilities in similar industries. If different judgment or assumptions were used, the amounts assigned to the individual acquired assets or liabilities could be materially affected.
t)Concentration of Credit Risk
Financial instruments that potentially expose the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions with high-credit ratings and quality. Substantially 65% of our revenue came from one customer in 2008. The company had no revenue in 2009.
u)Recent Accounting Pronouncements
In June 2009, the FASB issued SFAS No. 167, "Amendments to FASB Interpretation No. 46(R)," ("SFAS 167"). The amendments include: (1) the elimination of the exemption for qualifying special purpose entities, (2) a new approach for determining who should consolidate a variable-interest entity, and (3) changes to when it is necessary to reassess who should consolidate a variable-interest entity. SFAS 167 is effective for the first annual reporting period beginning after November 15, 2009 and for interim periods within that first annual reporting period. The Company will adopt SFAS 167 in fiscal 2010. The Company does not expect that the adoption of SFAS 167 will have a material impact on the financial statements.
In June 2009, the FASB issued SFAS No. 166, "Accounting for Transfers of Financial Assets, an amendment to SFAS No. 140," ("SFAS 166"). SFAS 166 eliminates the concept of a "qualifying special-purpose entity," changes the requirements for derecognizing financial assets, and requires additional disclosures in order to enhance information reported to users of financial statements by providing greater transparency about transfers of financial assets, including securitization transactions, and an entity's continuing involvement in and exposure to the risks related to transferred financial assets. SFAS 166 is effective for fiscal years beginning after November 15, 2009. The Company will adopt SFAS 166 in fiscal 2010. The Company does not expect that the adoption of SFAS 166 will have a material impact on the financial statements.
In June 2009, the FASB issued SFAS No. 165, "Subsequent Events," ("SFAS No. 165"). SFAS 165 establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. SFAS 165 applies to both interim financial statements and annual financial statements. SFAS 165 is effective for interim or annual financial periods ending after September 15, 2009. SFAS 165 does not have a material impact on our financial statements.
In June 2008, the FASB issued FASB Staff Position EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities, ("FSP EITF 03-6-1"). FSP EITF 03-6-1 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting, and therefore need to be included in the computation of earnings per share under the two-class method as described in FASB Statement of Financial Accounting Standards No. 128, "Earnings per Share." FSP EITF 03-6-1 is effective for financial statements issued for fiscal years beginning on or after December 15, 2008 and earlier adoption is prohibited. The Company does believe that FSP EITF 03-6-1 would have material effect on its consolidated financial position.
u)Recent Accounting Pronouncements (continued)
In May 2008, the FASB issued SFAS No. 162 "The Hierarchy of Generally Accepted Accounting Principles". SFAS 162 identifies, within the accounting literature established by the FASB, the sources and hierarchy of the accounting principles to be used in the preparation of financial statements of nongovernmental entities that are presented in conformity with GAAP. SFAS 162 is effective 60 days following the Securities and Exchange Commission'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".
In May 2008, the Financial Accounting Standards Board ("FASB") issued SFAS No. 163, "Accounting for Financial Guarantee Insurance Contracts-and Interpretation of FASB Statement No. 60". SFAS No. 163 clarifies how Statement 60 applies to financial guarantee insurance contracts, including the recognition and measurement of premium revenue and claims liabilities. This statement also requires expanded disclosures about financial guarantee insurance contracts. SFAS No. 163 is effective for fiscal years beginning on or after December 15, 2008, and interim periods within those years. SFAS No. 163 has no effect on the Company's financial position, statements of operations, or cash flows at this time.
In March 2008, the FASB issued SFAS No. 161 "Disclosures About Derivative Instruments and Hedging Activities - an amendment to FASB Statement No.133". The new standard requires enhanced disclosures to help investors better understand the effect of an entity's derivative instruments and related hedging activities on its financial position, financial performance, and cash flows. Statement 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. We do not believe that the implementation of SFAS 161 will have a material impact on our results of operations and financial condition.
NOTE 3 - GOING CONCERN
The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern. As the Company has now became dormant with no revenue after the disposal of Eworld China and Mojo Media Group in 2008. Our ability to continue as a going concern is dependent upon acquiring new company with profitable operations. We also adopted additional measures to improve the Group immediate liquidity to sustain the Group as a going concern.
As disclosed in Note 16 to the consolidated financial statements, on 30 March 2009, the Company issued and allotted 25,000,000 newly authorized and issued shares to Blue Atelier Inc., for US$250,000. Blue Atelier Inc. has also provided US$250,000 of non interest bearing loan to the Company prior to the closing of the purchase agreement for meeting the cost and fee required to maintain the full reporting status of the Group and daily operating costs. The Company completed the forty to one reverse split in September 2009 and entered into a series of agreements with various holders of Convertible Notes to convert $2,226,185 of notes payable plus accumulated interest of $501,283 to E World Common Stock in the aggregate to 6,872,830 shares of common stock. Following this, Blue Atelier acquired 25,000,000 of newly authorized and issued common stock for $250,000 in accordance with the stock purchase agreement.
We also intend to use other borrowings and security sales to mitigate the affects of our cash position, however, no assurance can be given that debt or equity financing, if and when required, will be available. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets and classification of liabilities that might be necessary should we be unable to continue in existence.
NOTE 4 - LICENSE FEES
The company holds no licenses and incurred no license fees.
NOTE 5 - PROPERTY AND EQUIPMENT
The company has no Property and Equipment at December 31, 2008 or December 31, 2009.
Depreciation expense for the year ended December 31, 2009 and 2008 was Nil and $53,820 respectively.
All fixed assets were either sold or written off as both Eworld China and Mojo Group were disposed in August 2008. The detail of the disposal is described in Note 13 to the consolidated financial statements.
NOTE 6 - IMPAIRMENT OF LONG-LIVED ASSETS AND INTANGIBLE ASSETS
The company has written-off the balance of the unamortized license fees on our online game Battlezone, and terminated the game with our gaming provider, Sidus in July 2008 and held no Intangible Assets at December 31, 2009. The unamortized gaming development cost was also written-off as impaired subsequent to the termination of the online game with Sidus. The total amount of impairment for the year ended December 31, 2008 was $1,120,505.
NOTE 7 - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
December 31, 2009	December 31, 2008 			 -----------------	----------------- Accounts payable $ - $ 2,255 Professional fees payable 	 97,905 136,734 Accrued interests 		 - 276,556 Other accrued expenses - 1,500 			 -----------------	----------------- $ 119,495 $ 415,545 			 =================	=================
NOTE 8 - SHORT-TERM BORROWINGS
In March of 2009, the Company entered into a stock purchase agreement with Blue Atelier, Inc. Blue Atelier will acquire 25,000,000 newly authorized and issued common stock of Eworld Interactive Inc. ("EWRL") after EWRL executes a forty to one reverse split of the presently issued and outstanding EWRL common stock in exchange for $250,000 and Blue Atelier provided the Company a non-interest bearing loan up to $250,000 for costs and fees required to maintain the full reporting status of EWRL and quotation of its common stock on the OTCBB with advances made under this loan to go towards the cost of the newly issued stock. Following this, Blue Atelier acquired 25,000,000 of newly authorized and issued common stock for $250,000 in accordance with the stock purchase agreement.
On September 26, 2006, Eworld China entered into an agreement with Mr. Laurence Lee, the shareholder of Eworld China, to borrow a total amount of $220,000 ("borrowed amount") which is unsecured and non-interest bearing and is repayable on demand. The borrowed amount was in fact provided by Crown Ocean International Ltd. ("Crown Ocean" ) to Mr. Laurence Lee through a separate agreement. The terms of the agreement only allows Mr. Laurence Lee to lend the borrowed amount to Eworld China which is non-interest bearing and is repayable within 15 working days after the payments were received from Eworld China. In addition, Mr. Laurence Lee pledged his equity interest in Eworld China as a security in which his liability to Crown Ocean shall not exceed the net value of his equity interest in Eworld China. As at December 31, 2007, Mr. Laurence Lee holds 80% of the equity interest in Eworld China. The related short-term borrowings were repaid during 2008 and there was not further borrowings noted.
NOTE 9 - INCOME TAX
United States
We file a consolidated tax return in the United States for the income that would be subject to their tax.
Cayman Islands and British Virgin Islands
Under the current tax laws of the Cayman Islands and British Virgin Islands, the Company and its subsidiaries are not subject to tax on their income or capital gains.
Hong Kong
The Company's subsidiary operations are not subject to the taxation in Hong Kong.
PRC Income Tax
The Company's subsidiaries and VIE subsidiaries in the PRC are subject to Enterprise Income Tax ("EIT") on the taxable income as reported in their respective statutory financial statements adjusted in accordance with the Income Tax Law of the People's Republic of China concerning Foreign Investment Enterprise and Foreign Enterprises and the Enterprise Income Tax Law (collectively the "PRC Income Tax Laws"), respectively. Pursuant to the PRC Income Tax Laws, the Group's subsidiaries and VIE subsidiaries in the PRC are generally subject to EIT at a statutory rate of 25%. No PRC income tax has been provided as the Company's subsidiary in the PRC recorded and no cumulative net operating profits for the year ended December 31, 2009 (2008: $108,913). After the Company disposed Eworld China and Mojo Media Group in August 2008, the related accumulated losses in these disposed companies are no longer allow to utilize in offsetting against future taxable income.
We have tax loss carry forward for United States tax purposes of approximately $ (2008: $4,164,357). The loss carry-forwards expire in the years 2021-2022. There are no significant book-tax return differences in reporting of items for the years ended December 31, 2008 and 2009. There are no State income taxes for the years ended December 31, 2008 and 2009.
PRC Income Tax (continued)
The components of the net deferred tax asset at December 31, 2009 and 2008 and the effective tax rate and the estimated amount of the valuation allowance are scheduled below (excluding the accumulative losses for Eworld China and Mojo Media Group which no longer able to be utilized for offsetting future taxable income after disposal):
December 31, 2009	December 31, 2008 			 -----------------	----------------- $ - $ 4,596,791 Cumulative Combined Net 	Operating Losses Effective Tax Rate - 28.00% Deferred Tax Asset $ - $ 1,287,101 Valuation Allowance $ - $ (1,287,101) 			 -----------------	----------------- Net Deferred Tax Asset - -
NOTE 10 - CONVERTIBLE NOTES
We sold $1,000,000 in convertible notes with a detachable warrant in the quarter ending March 31, 2007 for net proceeds of $915,000 after loan fees of $85,000. The terms of the notes are to provide 6% interest accruing beginning 90 days from the effective date, payable thereafter and have a one-year maturity. The notes are convertible at $0.60 per share and include a warrant for the purchase of an additional share at $0.80 for a period ending 2 years after the notes are issued. We are under the obligation to register the underlying equity with penalty if not declared effective. We did not register our shares in accordance with the agreements and have recorded a loan fee equal to the penalty required by the agreements. The loan fee is $382,500 and was calculated based on our stock's trading price less an estimate of a discount for the thinly traded market as compared to the quantity of shares issued. The penalty shares were not issued at December 31, 2008.
When we sold the convertible notes we determined the fair market value of the warrants and of the convertible notes and allocated the proceeds based on the percentage of fair value of the warrants and convertible notes. The amount allocated to the warrants was $194,527 and to the notes was $805,473. The warrants fair value was determined by the Black-Scholes pricing model with the following assumptions - Stock Price at grant date $0.65; Strike price $0.80; Term 2 years; Volatility 75%; Dividend Yield 0%; Interest Yield 4.94% . The convertible notes market value was determined based on the maturity, conversion feature and interest rate. There was a beneficial conversion relating to the convertible notes based on the value of our stock when the notes were issued. The beneficial conversion was $277,860. The beneficial conversion was expensed as additional interest in the year ending December 31, 2007. The difference between the issue price of the notes and the maturity value of the notes is accreted as additional interest expense over the term of the notes. On June 11, 2007 the notes were converted into 1,666,667 shares of common stock. Accordingly the accretion of the additional interest of $194,527 was recognized in the year ended December 31, 2007.
In July 2007, we sold $500,000 in convertible notes at an interest rate of 12% per annum with a maturity period on 25 January 2008 (later extended to July 25, 2009). The notes are convertible at a 20% discount to the ten day average trading price at the time the request for conversion. The convertible notes had a beneficial conversion of $145,800. This was accreted as additional interest in the year ended December 31, 2007.
In November 2007, we sold $450,000 in convertible notes at an interest rate of 12% per annum with a maturity period on 25 January 2008 (later extended to July 25, 2009). The notes are convertible at a 20% discount to the ten day average trading price at the time the request for conversion. Also, the convertible notes had a beneficial conversion of $199,043. This was accreted as additional interest of the loans.
We extended the above convertible notes that were originally due on January 25, 2008 to July 25, 2008, and subsequently to July 25, 2009 with the terms and conditions as laid out in the original agreement. On March 18, 2008 we authorized 1,985,874 shares to be issued to the convertible note holders and 440,000 shares to be issued to the short term note lender as compensation for the maturity date extensions.
On March 3, 2008, we sold $50,000 in a convertible note at an interest rate of 12% per annum that matures on March 3, 2009. The note is convertible at a 20% discount to the ten-day average trading price of our stock at the time the request for conversion is received. The convertible note had a beneficial conversion of $4,348. This was accreted as additional interest expense.
During the second quarter of 2008, we sold $372,254 of convertible notes in aggregate at an interest rate of 12% per annum with maturity dates from April 5 to July 15, 2009. These notes are convertible at a 20% discount to the ten-day average trading price of our stock at the time the request for conversion is received. These convertible notes had a beneficial conversion of $101,509. This was accreted as additional interest expense.
On July 15, 2008, we sold $100,000 in a convertible note at an interest rate of 12% per annum that matures on July 15, 2009. The note is convertible at a 20% discount to the ten-day average trading price of our stock at the time the request for conversion is received. The convertible note had a beneficial conversion of $68,269. This was accreted as additional interest expense.
If all of the convertible notes were converted we would need to change the authorized amount of our shares because the conversion would exceed 150,000,000 shares. Based on the closing price of our stock on December 31, 2008 171,531,750 shares would be issued for the convertible notes.
The Company entered into a series of agreements with various holders of Convertible Notes to convert $2,226,185 of notes payable plus accumulated interest of $501,283 to E World Common Stock in the aggregate to 6,872,830 shares of common stock.
NOTE 11 - RELATED PARTY TRANSACTIONS
The Company records transactions of commercial substance with related parties at fair value as determined with management. The following is a list of related party transactions and balances as at December 31, 2009 and 2008:
2009 2008 						 ------- ------- Closing balances as at December 31, Prepaid assets with related parties $ - $ - Due to shareholders 15,000 15,000 Short term borrowings - - 						 ------- ------- Transaction for the year: Consulting fees $ - $60,100 Rental expenses for occupancy by management - 16,941 						 ------- -------
NOTE 12 - ACQUISITION AND DISPOSAL OF SUBSIDIARIES
Mojo Group
On May 11, 2007, we acquired Mojo, a company that is engaged in the production and distribution of television programs in the Peoples Republic of China (PRC). With the addition of Mojo, we have created a branded media for distribution and sales through traditional broadcast platforms as well as Internet, Mobile, IPTV and SMS. Mojo intends to develop media for our web portal and with active game and other media draws intends to develop advertising sales from the portal site. Our product portfolio now includes a broad spectrum of TV production, online gaming, virtual community and wireless advertising which allows us to offer a more comprehensive and better integrated set of interactive entertainment content for our users.
We acquired all of the outstanding shares of MOJO by issuing 7 million shares of our stock. In conjunction with this transaction, Mr. Peckham returned 7 million shares of his stock to the company to be used in the acquisition. The net result of the acquisition was the same number of outstanding shares before and after the transaction. We believe the people and infrastructure acquired will have a benefit to the company We recorded an intangible asset on the transaction of $490,551 as this related to the value of the existing license that we had acquired from Open TV
The acquisition has been accounted for under the purchase accounting method. Our consolidated financial statements for the year ended December 31, 2007 include the financial results of Mojo subsequent to the acquisition date of May 11, 2007.
The aggregate Mojo purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values at the date of the acquisition.
On July 31, 2008, we entered into a Term Sheet agreement with Blue Atelier, Inc., a Nevada company, to purchase all the assets and liabilities ("Equity Interest") of our subsidiary group, Mojo Media Works, Limited and its subsidiaries/Variable Interest Entity (together referred to as the "Mojo Group") for a total consideration of $411,967 and 4,030,000 common shares of EWRL currently held by the Mojo management. The cash consideration of $411,967 shall be paid by Blue Atelier, Inc. on an "earn out" basis, which means the payment will be paid out from the profits generated by the Mojo Group in the future before any pay out of shareholder dividends and management bonuses. The 4,030,000 common shares of EWRL which is directly or indirectly held by Mojo management have been surrendered to us.
We have assessed the receivable of $411,967 in December 2008 and considered it to be uncollectible and fully written-off as bad debts. The resulting gain in relation to sale of Mojo Group was $879,954.
Eworld China
On May 1, 2007 Eworld China became a variable interest entity and we have combined the operations of this entity with our operations after that date.
On August 11, 2008, we entered into a Letter of Intent ("LOI") with Big Leap International Limited ("Big Leap"), a subsidiary of CY Foundation Group Limited listed in the Hong Kong Stock Exchange, to enter an arrangement of contract of service with Laurence Li and a selected number of his team members in EW Shanghai; and to acquire the operating platform, 4 servers and a list of assets of Eworld China for a total consideration of $400,000. The resulting gain in relation to sale of Eworld China was $300,912.
NOTE 13 - COMMON STOCK AND WARRANTS
On March 18, 2008, we extended the convertible notes that were originally due on January 25, 2008 to July 25, 2008, and subsequently to July 25, 2009 with the terms and conditions as laid out in the original agreement. We authorized 1,985,874 shares to be issued to the convertible note holders and 440,000 shares to be issued to the short-term note lender as compensation for the maturity date extensions. We recorded $315,364 as a loan fee for the extension. The fee was determined based on the market value of our stock on the date of the extension.
On March 18, 2008 our Board of Directors approved the adoption of a Stock Option Plan allowing for the direct award of stock or granting of stock options to directors, officers, employees and consultants to acquire up to a total of 6,000,000 shares of common stock. The exercise price of the option shall not be less than 100 percent of the Fair Market Value of a Share on the date of grant and shall be determined by the Board of Directors of the Company at its sole discretion.
On March 18, 2008, we authorized the issuance of 4,090,000 shares to be issued to our officers and third party consultants for payment of liabilities for services provided. We recorded $531,700 as compensation and professional fee expense. We used the market value of our stock on the date the shares were authorized to determine the amount of shares to be issued for the charges. The shares were later issued in June 2008.
In 2009, Company entered into a series of agreements with various holders of Convertible Notes to convert $2,226,185 of notes payable plus accumulated interest of $501,283 to E World Common Stock in the aggregate to 6,872,830 shares of common stock.
In October 2009, the Company issued 25,000,000 of newly authorized and issued common stock for $250,000 in accordance with the stock purchase agreement to Blue Atelier, Inc.
At December 31, 2009, we have no warrants outstanding.
Grant Date Number of Warrants	Exercise Price	 Expiry Date
February 2, 2007 970,000 	$0.8 December 31, 2008 February 14, 2007 1,000,000 	$0.8 February 14, 2008 April 30, 2007 866,670 		$0.8 December 31, 2008 			--------- 2,836,670 Less: expired warrants (2,836,670) 			--------- 		-
NOTE 14 - OPERATING LEASE COMMITMENTS:
The Company has operating lease agreements at December 31, 2009.
NOTE 15 - CAPITAL COMMITMENTS: The Company had no capital commitments as of December 31, 2009.
NOTE 16 - SUBSEQUENT EVENTS
1. Blue Atelier acquired 25,000,000 newly authorized and issued common stock of Eworld Interactive Inc. ("EWRL") after EWRL executed a forty to one reverse split of the presently issued and outstanding EWRL common stock in exchange for $250,000.
2. The Company is a shell company with no functional operations, the Company is seeking to acquire a new operating entity with a different business scope. Any acquisition of a business venture involving reorganization and issuance of the Company's restricted securities. There are currently no contracts or agreements between any companies that are searching for shell companies with which to merge although a number of opportunities are being considered.
ITEM 9.
ITEM 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
There have been no disagreements between the Company and its independent accountants on any matter of accounting principles or practices or financial statement disclosure. As reported on our Current report on Form 8-K filed on April 3, 2009, effective as of March 30, 2009 Weaver & Martin, LLC was dismissed as the independent registered public accounting firm of Eworld Interactive, Inc. On that date, the Board of Directors approved the engagement of Shanghai Perfect C.P.A. Partnership as its independent registered public accounting firm.
ITEM 9A.
ITEM 9A. CONTROLS AND PROCEDURES
We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of December 31, 2009. This evaluation was carried out under the supervision and with the participation of our Principal Executive Officer, Guy Peckham and Chief Financial Officer, Gerry Shirren. Based upon that evaluation, our Principal Executive Officer and Principal Financial Officer concluded that, as of December 31, 2009, our disclosure controls and procedures were effective.
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Principal Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure.
A control system, no matter how well conceived or operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.
Management's Annual Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting for our company. Our control system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles.
Our internal control over financial reporting includes those policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and disposition of our assets; provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles; that receipts and expenditures are being made only with proper authorizations of management and directors; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of company assets that could have a material effect on the financial statements.
All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Because of the inherent limitations of internal control, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.
Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management, including our President acting as principal executive officer and our principal financial officer, assessed the effectiveness of our internal control over financial reporting as of December 31, 2009. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control Over Financial Reporting - Guidance for Smaller Public Companies published in June of 2006 and the PCAOB preliminary staff views published October 17, 2007. Based on our assessment and those criteria, management concluded that during the period covered by this report, our internal control and procedures over financial reporting was effective as of December 31, 2009.
Attestation Report of the Registered Public Accounting Firm
This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit us to provide only management's report in this annual report.
ITEM 9B.
ITEM 9B. CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART III
ITEM 10.
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS: COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The directors and officers are as follows:
Name Age Position Tenure
Guy Peckham 46 President, CEO, Secretary December 2006 to 			 and Director		 April 08, 2010
Gerry Shirren 	 51 CFO and Director October 2009 to present President April 12, 2010 to Present
Harold Rothstein 48 Director October 2009 to present.
MR. GUY PECKHAM has prior operational and financial experience from his development of the Canadian based Goodlife Brands. Goodlife Brands reached CAD$128,000,000 in annual sales employed over 550 employees across Canada before it was sold in 2001. His responsibilities at Goodlife included the day to day management of the organization, developing and implementing strategies, preparing and reporting budgets and monthly/ quarterly results to the board of directors, recruitment of the executive and senior management team, the purchase and disposal of major assets as well as negotiating purchase agreements with suppliers and sales programs with major customers.
After the sale of GoodLife Brands, Mr. Peckham was an executive director with the Calneva Financial Group an integrated financial advisory firm specialized in linking China based companies with foreign capital markets. Since joining Calneva he has split his time between Canada and China preparing candidate companies for public and private financing events. Mr. Peckham has worked with Shanghai-based online gaming company T2 and Shanghai-based digital signage network provider i-level Media Group.
Mr. Peckham resigned from the Board of Directors on April 08th, 2010.
MR. SHIRREN, age 51, has held senior positions in media and entertainment companies for over 20 years, including production and distribution companies based in Europe and the US specializing in family programming. He has been extensively involved in international co-production, financing including many multi-territory co-productions between Europe and Asia. From 1997 to 2005, Mr. Shirren was Joint-Managing Director of TerraGlyph Productions and TerraGlyph Rights Limited, an animation production and distribution studio based in Dublin, Ireland and from 2005 to May 2008, as Joint Managing Director of Digital Animation Media Limited, an animation production and animation software tools company servicing the animation industry. Most recently, since October 2007 until May 2009, he was Consultant CFO working with Valcom Inc, (OTCBB: VLCO) and during this time, the company successfully reorganized in Chapter 11 bankruptcy, emerged from bankruptcy in September 2008 and acquired the TV network subsidiary, My Fam.ily TV (formerly Faith TV). Mr. Shirren is a Fellow of the Association of Chartered Certified Accountants (FCCA) having qualified as a Certified Account (ACCA) in 1988.
MR. ROTHSTEIN, age 48, has many years of experience in the hospitality industry starting with the restaurants; Don Roth's Blackhawk and Anne Morton's Arnies in Chicago. Mr. Rothstein's career took him to Dallas with the Roma Corporation. He later opened JP Eating Place in Chicago with Jorge Perez and also JP's in the Tuscany Hotel in Chicago. His next project in June of 1991 was Hi Tops, the famous sports bar in Chicago and subsequently with Hi Tops opening in 2000 Phoenix Arizona and 2001 Pittsburgh, Pennsylvania. In July 2007, Mr. Rothstein partnered in the purchase of the Greek Isles Hotel and Casino in Las Vegas.
Other business ventures include Tequila Roadhouse, Chicago, Zella, Chicago, The Black Duck, Chicago, The W Hotel Lakeshore, Chicago, Satly's , Seattle, Mie Shannon's Steakhouse, St. Louis, Marriot at the Quorum, Addison, Yesterdays, Ft. Lauderdale and Caf{e'} Pacific in Dallas. Mr. Rothstein is also a consultant to the Office of Commissioner of Major League baseball, Bud Selig and on the Advisory Board of the Mayor's office in Pittsburgh, PA.
The directors shall be elected at an annual meeting of the stockholders and except as otherwise provided within the Bylaws of Eworld Interactive, Inc., as pertaining to vacancies, shall hold office until his successor is elected and qualified.
The directors of Eworld Interactive, Inc. are aware of no petitions or receivership actions having been filed or court appointed as to the business activities, officers, directors, or key personnel of Eworld Interactive, Inc.
There are no familial relationships among the officers and directors, nor are there any arrangements or understanding between any of our directors or officers or any other person pursuant to which any officer or director was or is to be selected as an officer or director.
No non-compete or non-disclosure agreements exist between the management of Eworld Interactive, Inc. and any prior or current employer.
There are no employees under contract with Eworld Interactive, Inc.
Eworld Interactive, Inc. has not, nor proposes to do so in the future, make loans to any of its officers, directors, key personnel, 10% stockholders, relatives thereof, or controllable entities.
Board of Director Meetings and Committees
The Board of Directors held no formal meetings during the year ended December 31, 2009. The board has conducted board activities through unanimous consent board resolutions in lieu of meetings. The directors received no compensation for their role as directors for the year ended December 31, 2009.
The board has not defined any committees and performs all functions that would be delegated.
CODE OF ETHICS
The board of directors of Eworld Interactive, Inc. has not adopted a written Code of Ethics. The board of directors believes our current business conduct and ethics promote honest and ethical conduct, handling of conflicts which may arise, timely and complete reporting and disclosure compliance with the Securities and Exchange Commission, compliance with all applicable governing laws, and accountability for our conduct.
The Company is currently managed by a sole officer and director. The company intends to adopt a written code of ethics as soon as the executive management and Board of Directors is expanded.
SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Securities Exchange Act of 1934 requires the company's directors and officers, and persons who own more than ten-percent (10%) of the company's common stock, to file with the Securities and Exchange Commission reports of ownership on Form 3 and reports of change in ownership on Forms 4 and 5. Such officers, directors and ten-percent stockholders are also required to furnish the company with copies of all Section 16(a) reports they file. Based solely on its review of the copies of such forms received by the company and on written representations from certain reporting persons, the company believes that all Section 16(a) reports applicable to its officers, directors and ten-percent stockholders with respect to the fiscal year ended December 31, 2008 were filed except for Form 4 information relating to a disclosed transaction with Mr. Peckham which occurred in March of 2008.
CERTAIN LEGAL PROCEEDINGS
No director, nominee for director, or executive officer has appeared as a party in any legal proceeding material to an evaluation of his ability or integrity during the past five years.
ITEM 11.
ITEM 11. EXECUTIVE COMPENSATION
SUMMARY COMPENSATION TABLE
Notes:
We had no pension plans or plans or agreements which provide compensation on the event of termination of employment or change in control of us and have therefore eliminated a column specified by Item 402 (c)(2) titled "Change in Pension Value and Nonqualified Deferred Compensation Earnings (h)" in the above Summary Compensation Table No family relationships exist among any directors, executive officers, or persons nominated or chosen to become directors or executive officers. As of December 31, 2009, Eworld Interactive, Inc. has no group life, health, hospitalization or medical plans available for its employees. Further, Eworld Interactive, Inc. had no pension plans or plans or agreements which provide compensation on the event of termination of employment or change in control of us.
OPTION GRANTS AND EXERCISES
Effective March 18, 2008, our Board of Directors approved the adoption of a Stock Option Plan allowing for the direct award of stock or granting of stock options to directors, officers, employees and consultants to acquire up to a total of 6,000,000 shares of common stock. The exercise price of the option shall not be less than 100 percent of the Fair Market Value of a Share on the date of grant and shall be determined by the Board of Directors of the Company at its sole discretion.
On March 18, 2008, we authorized the issuance of 4,090,000 shares to the Company's officers.
EMPLOYMENT AGREEMENTS
As of the year ended December 31, 2008, Eworld Interactive, Inc. has not entered into formal employment agreements with any of our executive officers or directors. Until a formal employment agreement is put in place, Mr. Peckham is accepting compensation at a rate of $60,000 per year, based on the Company's ability to pay.
COMPENSATION OF DIRECTORS
Eworld Interactive paid no compensation to any directors as director's fees, nor any fees for attendance or similar remuneration or reimbursement for any out-of-pocket business expenses incurred, for the year ended December 31, 2009.
ITEM 12.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth, as of December 31, 2009; the beneficial ownership of Eworld Interactive, Inc. common stock by each person known to the company to beneficially own more than five percent (5%) of the company's common stock, including options, outstanding as of such date and by the officers and directors of the company as a group. Except as otherwise indicated, all shares are owned directly:
There were no options or warrants outstanding at December 31, 2009.
Total shares outstanding as of December 31, 2009 were 33,252,480 held by approximately 72 shareholders of record and an undetermined number of holders in street name.
All ownership is beneficial and of record except as specifically indicated otherwise. Beneficial owners listed above have sole voting and investment power with respect to the shares shown unless otherwise indicated.
ITEM 13.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Director Independence/Audit Committee
The board of directors of Eworld Interactive, Inc. has determined that for the purpose of and pursuant to the instructions of item 401(e) of regulation S-B titled Audit Committee Financial Expert, Inc. Eworld Interactive, Inc. does not have a designated Audit Committee and relies on the board of directors to perform those functions. Guy Peckham or Gerry Shirren are not independent as defined by item 401(e)(ii) of regulation S-B.
Related Transactions
On July 31, 2008, we entered into a Term Sheet agreement with Blue Atelier, Inc., a Nevada company, to purchase all the assets and liabilities ("Equity Interest") of our subsidiary group, Mojo Media Works, Limited and its subsidiaries/Variable Interest Entity (together referred to as the "Mojo Group") for a total consideration of $411,967 and 4,030,000 common shares of EWRL currently held by the Mojo management. The cash consideration of $411,967 shall be paid by Blue Atelier, Inc. on an "earn out" basis, which means the payment will be paid out from the profits generated by the Mojo Group in the future before any pay out of shareholder dividends and management bonuses. The 4,030,000 common shares of EWRL which is directly or indirectly held by Mojo management has been surrendered to us.
We have assessed the receivable of $101,337 in December 2009 and considered it to be uncollectible and fully written-off as bad debts.
On March 30, 2009, the Company entered into a stock purchase agreement with Blue Atelier, Inc., to pledge 10,000,000 pre-reverse split common stocks of EWRL as collateral and to reduce outstanding debt with the creditor to a balance not exceeding $100,000 in order to secure the following financing and security sales:
1. Blue Atelier will acquire 25,000,000 newly authorized and issued common stock of Eworld Interactive Inc. ("EWRL") after EWRL executes a forty to one reverse split of the presently issued and outstanding EWRL common stock in exchange for $250,000.
2. The Company completed the forty to one reverse split in September 2009 and entered into a series of agreements with various holders of Convertible Notes to convert $2,226,185 of notes payable plus accumulated interest of $501,283 to E World Common Stock in the aggregate to 6,872,830 shares of common stock. Following this, Blue Atelier acquired 25,000,000 of newly authorized and issued common stock for $250,000 in accordance with the stock purchase agreement.
3. After the Company became a shell company with no functional operations, the Company is seeking to acquire a new operating entity with a different business scope. Any acquisition of a business venture involving reorganization and issuance of the Company's restricted securities. There are currently no contracts or agreements between any companies that are searching for shell companies with which to merge.
The Company records transactions of commercial substance with related parties at fair value as determined with management. The following is a list of related party transactions and balances as at December 31, 2008 and 2009:
2008 2009 Closing balances as at December 31, Prepaid assets with related parties $ - $ 0 Due to shareholders 15,000 21,590 Short term borrowings -
Transaction for the year: Consulting fees $60,100 $60,000 Rental expenses for occupancy by management 16,941 0
PART IV
ITEM 14.
ITEM 14. EXHIBITS AND REPORTS ON FORM 8-K
Eworld Interactive, Inc. includes by reference the following exhibits:
3.1 Articles of Incorporation, exhibit 3.1 filed with the registrant's 	 Registration Statement on Form SB-2, as amended; filed with the Securities and Exchange Commission on December 27, 2005.
3.2 Amendment to Articles of Incorporation, exhibit 3.2 filed with the 	 registrant's Registration Statement on Form SB-2, as amended; filed 	 with the Securities and Exchange Commission on December 27, 2005.
3.3 Amendment to Articles of Incorporation, exhibit 3.3 filed with the 	 registrant's Registration Statement on Form SB-2, as amended; filed 	 with the Securities and Exchange Commission on December 27, 2005.
3.4 Bylaws, filed as exhibit 3.4 with the registrant's Registration 	 Statement on Form SB-2, as amended; filed with the Securities and 	 Exchange Commission on December 27, 2005.
3.5 Amendment to Articles of Incorporation, filed as exhibit 3.5 with the 	 registrant's Registration Statement
3.6 on Form 8-A; filed with the Securities and Exchange Commission on 	 December 14, 2006.
Amendment to Articles of Incorporation , filed as Exhibit Bylaws, 	 filed as exhibit 3.1 filed on Form 8-K, filed with the Securities and 	 Exchange commission on August 24, 2009.
10.1 Stock Purchase Agreement - Between Eworld Interactive, Inc., and Blue 	 Atelier, Inc., March 30, 2009 filed as exhibit 10.1 with the 	 registrant's Current Report on Form 8-K; filed with the Securities and Exchange Commission on April 3, 2009.
Eworld Interactive, Inc. includes herewith the following exhibits:
31.1 Certification of Principal Executive Officer and Principal Financial 	 Officer (Rule 13a-14(a)/15d-14(a))
32.1 Certification of Principal Executive Officer and Principal Financial 	 Officer (18 U.S.C. 1350)
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(1) AUDIT FEES
The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements and review of financial statements included in the registrant's Form 10-K or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for the fiscal years ending December 31, 2008 and 2009 were: $4,500 and $11,850, respectively.
(2) AUDIT-RELATED FEES
The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit or review of the registrant's financial statements and are not reported under item (1) for the fiscal years ending December 31, 2008 and 2009 were: $ 0 and $ 0, respectively.
(3) TAX FEES
No aggregate fees were billed for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning for the fiscal years ending December 31, 2008 and 2009.
(4) ALL OTHER FEES
No aggregate fees were billed for professional services provided by the principal accountant, other than the services reported in items (1) through (3) for the fiscal years ending December 31, 2008 and 2009.
(5) AUDIT COMMITTEE
The registrant's Audit Committee, or officers performing such functions of the Audit Committee, have approved the principal accountant's performance of services for the audit of the registrant's annual financial statements and review of financial statements included in the registrant's Form 10-K or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for the fiscal year ending December 31, 2009. Audit-related fees, tax fees, and all other fees, if any, were approved by the Audit Committee or officers performing such functions of the Audit Committee.
(6) WORK PERFORMANCE BY OTHERS
The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was less than 50 percent.
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 hereunto duly authorized.
EWORLD INTERACTIVE, INC.
Date: April 13, 2010 By: /s/ Gerry Shirren 					----------------- Gerry Shirren President, Secretary
Pursuant to the requirements of the Securities and 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 dates indicated:
Signature Title(s) 		Date - ---------		 --------				----
/s/ Gerry Shirren President, Secretary and Director	April 13, 2010 - -----------------	 (Secretary) Gerry Shirren
/s/ Gerry Shirren Principal Financial and - -----------------	 Accounting Officer			April 13, 2010 Gerry Shirren (Principal Financial and 			 Accounting Officer)