Alliance Creative Group Inc (ACGX)

[RDG013]

401,

1) The space for their main office is being rented at $6,500/month which is reasonable for the area where they are located. They also say they have other distribution sites across the country, but have not seen the clear costs for those sites. Most likely, they are some sort of partnership deals.


2) The company is not actually giving $1,000,000 to charity and definitely not giving $1M to Dwayne Wade's Foundation as stated in some of the sticky notes DD. Print4ACause is donating 10% of all sales through that website to the charity of the customer's choosing. ACGX hopes to generate $10M is sales by 2015, which would end up passing $1M to various charities.

This has been in place since late Summer, but no update was given on the 3rd Q Filing. The company has not given the details, but it can easily be assumed they are inflating prices for products ordered on that site to offset the donation costs from the sale. Would not be a bad idea to use "charitable donations" to help attract sales at a higher price, which is the best guess for print4acause. So, the development of this site IMHO was not done to promote the stock, rather it was to attract business. The company COO stated last week that he would like the shareholders to help advertise that site.

3) This year's change in profit margin is hard to nail down due to the unaudited financials. No clear reasoning for these changes, but net profits last year were 8X higher.

4) In the past under a different ticker, the company did participate in promotions. There have been no real promotions done by the company as of late. This could be due to the fact that they are not using shares for cash flow. That being said, they do have debt that is being actively converted and appear intent to allow the debt to fully convert into shares, rather than pay down the debt with any profits. The COO stated again this week that the company would prefer to use any profits to invest in the company's operation activities.

As a side note, it would be nice if they would start a new website called printforshareholders and donate 10% of all of those sales to paying down the convertible debt!

5) To my knowledge, no one has done any DD with the recorder of deeds, but once again, I live in Chicago and grew up near to where their office is located and they clearly are not over paying for office space. $6,500/month for 13K Sq Feet is a good price for that area.

Hope this helps.