UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~December~~March 31, ~~2009~~2010

[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ______________

Commission File Number: 000-53521

DYNASTY CAPITAL, INC

(Exact name of registrant as specified in its charter)


Colorado		26-2708838
(State or other jurisdiction of incorporation)		(IRS Employer Identification Number)

4807 S. Zang Way Morrison, Co 80465
(Address of principal executive offices)
303-979-2404
(Registrant’s telephone number, including area code)

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Not Applicable

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


Large accelerated filer [ ]	Accelerated filer [ ]
Non-accelerated filer [ ] (Do not check if a smaller reporting company)	Smaller reporting company [ X ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[ X ] Yes [ ] No

As of ~~December~~March 31, ~~2009~~2010 the Issuer had 3,000,000 shares of common stock issued and outstanding.

PART I-FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

The consolidated financial statements of Dynasty Capital, Inc., (the "Company"), a Colorado corporation, included herein were prepared, without audit, pursuant to rules and regulations of the Securities and Exchange Commission. Because certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America were condensed or omitted pursuant to such rules and regulations, these financial statements should be read in conjunction with the financial statements and notes thereto included in the audited financial statements of the Company for the fiscal year ended September 30, 2009, as included in the Company's ~~registration~~annual ~~statement~~report on Form 10-K ~~previously~~ filed with the SEC on December 22, 2009.

DYNASTY CAPITAL, INC

FINANCIAL STATEMENTS

PERIOD ENDED ~~DECEMBER~~MARCH 31, ~~2009~~2010


INDEX TO FINANCIAL STATEMENTS:	Page

Balance Sheet (Unaudited)	3

Statements of Operations (Unaudited)	4

Statements of Cash Flows (Unaudited)	5

Notes to Unaudited Financial Statements	6-7

DYNASTY CAPITAL, INC.

(A Development Stage Company)

BALANCE SHEETS

Dec. 31, 2009

Mar. 31, 2010

Sept. 30, 2009

(Unaudited)

ASSETS

Current assets

Cash

$ 3,099

$ ~~695~~660

Total current assets

3,099

~~695~~660

Total Assets

$ 3,099

$ ~~695~~660

LIABILITIES &

STOCKHOLDERS' EQUITY

Current liabilities

Total Liabilities

$ -

Related party payable

$ -

$ 1,000

Total current liabilities

1,000

Total Liabilities

1,000

Stockholders' Equity

Preferred stock, no par value;

10,000,000 shares authorized;

no shares issued and outstanding

Common stock, no par value;

150,000,000 shares authorized;

3,000,000 shares issued and outstanding

45,000

Additional paid in capital

-4,000

Deficit accumulated during the dev. stage

(41,901)

(4548,~~305~~340)

Total Stockholders' Equity

3,099

~~(305)~~660

Total Liabilities and Stockholders' Equity

$ 3,099

$ ~~695~~660

The accompanying notes are an integral part of the financial statements.

DYNASTY CAPITAL, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
						~~Period From~~	Period From
						~~May 29, 2008~~	May 29, 2008
	Three Months	Three Months	Six Months	~~Three Months~~	Six Months	~~(Inception)~~	(Inception)
	Ended	Ended	Ended	~~Ended~~	Ended	~~Through~~	Through
				Dec. 31, 2009		Dec. 31, 2009
	Mar. 31, 2009	Mar. 31, 2010	Mar. 31, 2009		Mar. 31, 2010		Mar. 31, 2010
Revenue	~~Revenue~~$ -	$ -	$ -	~~$ -~~	$ -	~~$ -~~	$ -
Operating expenses:	~~Operating expenses:~~
General and administrative	~~General and administrative~~1,683	3,036	25,173	~~3,404~~	6,440	~~45,380~~	48,416
				3,404		45,380
	1,683	3,036	25,173		6,440		48,416
Gain (loss) from operations	~~Gain~~ (~~loss~~1,683) ~~from operations~~	(3,036)	(25,173)	~~(3,404)~~	(6,440)	~~(45,380)~~	(48,416)
Other income (expense):	~~Other income (expense):~~
Interest income	~~Interest income~~3	1	58	-	1	75	76
Income (loss) before	~~Income (loss) before~~
provision for income taxes	~~provision for income taxes~~(1,680)	(3,035)	(25,115)	~~(3,404)~~	(6,439)	~~(45,305)~~	(48,340)
Provision for income tax	~~Provision for income tax~~-	-	-	-	-	-	-
Net income (loss)	~~Net~~$ ~~income~~ (~~loss~~1,680)	$ (3,035)	$ (25,115)	~~$ (3,404)~~	$ (6,439)	~~$ (45,305)~~	$ (48,340)
Net income (loss) per share	~~Net income (loss) per share~~
(Basic and fully diluted)	~~(Basic~~$ ~~and fully diluted~~(0.00)	$ (0.00)	$ (0.01)	~~$ (0.00)~~	$ (0.00)
Weighted average number of	~~Weighted average number of~~
common shares outstanding	~~common shares outstanding~~3,000,000	3,000,000	3,000,000	~~3,000,000~~	3,000,000
The accompanying notes are an integral part of the financial statements.

DYNASTY CAPITAL, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
		Three Months Ended Dec. 31, 2009	Period From May 29, 2008 (Inception) Through Dec. 31, 2009
				Period From
	Cash Flows From Operating Activities:
				May 29, 2008
	Net income (loss)	$ (3,404)	$ (45,305)
		Six Months	Six Months	(Inception)
	Adjustments to reconcile net loss to
		Ended	Ended	Through
	net cash provided by (used for)
		Mar. 31, 2009	Mar. 31, 2010	Mar. 31, 2010
	operating activities:
	Cash Flows From Operating Activities:
	Related party payable	1,000	1,000
	Net income (loss)	$ (25,115)	$ (6,439)	$ (48,340)
	Net cash provided by (used for)
	Adjustments to reconcile net loss to
	operating activities	(2,404)	(44,305)
	net cash provided by (used for)
	Cash Flows From Investing Activities:
	operating activities:
		-	-
	Net cash provided by (used for)
	investing activities	-	-
	operating activities	(25,115)	(6,439)	(48,340)
	Cash Flows From Financing Activities:
	Cash Flows From Investing Activities:
	Sales of common stock	-	45,000
		-	-	-
	Net cash provided by (used for)
	financing activities	-	45,000
	investing activities	-	-	-
	Net Increase (Decrease) In Cash	(2,404)	695
(Continued On Following Page)
	Cash At The Beginning Of The Period	3,099	-
The accompanying notes are an integral part of the financial statements.
	Cash At The End Of The Period	$ 695	$ 695
	Schedule Of Non-Cash Investing And Financing Activities
	None
	Supplemental Disclosure
	Cash paid for interest	$ -	$ -
	Cash paid for income taxes	$ -	$ -
The accompanying notes are an integral part of the financial statements.


DYNASTY CAPITAL, INC.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
(Unaudited)


(Continued From Previous Page)


				Period From
				May 29, 2008
		Six Months	Six Months	(Inception)
		Ended	Ended	Through
		Mar. 31, 2009	Mar. 31, 2010	Mar. 31, 2010

	Cash Flows From Financing Activities:
	Paid in capital	-	4,000	4,000
	Sales of common stock			45,000
	Net cash provided by (used for)
	financing activities	-	4,000	49,000

	Net Increase (Decrease) In Cash	(25,115)	(2,439)	660

	Cash At The Beginning Of The Period	37,489	3,099	-

	Cash At The End Of The Period	$ 12,374	$ 660	$ 660


	Schedule Of Non-Cash Investing And Financing Activities

	None

	Supplemental Disclosure

	Cash paid for interest	$ -	$ -	$ -
	Cash paid for income taxes	$ -	$ -	$ -

The accompanying notes are an integral part of the financial statements.

DYNASTY CAPITAL, INC.

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Dynasty Capital, Inc. (the “Company”), was incorporated in the State of Colorado on May 29, 2008. The Company was formed to explore merger and acquisitions opportunities with other companies. The Company is currently considered to be in the development stage, having generated no revenues and conducted only limited activities.

Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of operations for a full year.

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents.

Net income (loss) per share

The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share.

Revenue recognition

Revenue is recognized on an accrual basis after services have been performed under contract terms, the price to the client is fixed or determinable, and collectability is reasonably assured.

Use of Estimates

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

DYNASTY CAPITAL, INC.

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):

Accounts receivable

The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary.

Income tax

The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Property and equipment

Property and equipment are recorded at cost and depreciated under the straight line method over each item's estimated useful life.

Financial Instruments

The carrying value of the Company’s financial instruments, as reported in the accompanying balance sheet, approximates fair value.

Stock based compensation

The Company accounts for employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable.

ITEM 2.

MANAGEMENT’S DISCUSSIONS AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS

CERTAIN STATEMENTS IN THIS REPORT, INCLUDING STATEMENTS IN THE FOLLOWING DISCUSSION, ARE WHAT ARE KNOWN AS "FORWARD LOOKING STATEMENTS", WHICH ARE BASICALLY STATEMENTS ABOUT THE FUTURE. FOR THAT REASON, THESE STATEMENTS INVOLVE RISK AND UNCERTAINTY SINCE NO ONE CAN ACCURATELY PREDICT THE FUTURE. WORDS SUCH AS "PLANS," "INTENDS," "WILL," "HOPES," "SEEKS," "ANTICIPATES," "EXPECTS "AND THE LIKE OFTEN IDENTIFY SUCH FORWARD LOOKING STATEMENTS, BUT ARE NOT THE ONLY INDICATION THAT A STATEMENT IS A FORWARD LOOKING STATEMENT. SUCH FORWARD LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING OUR PLANS AND OBJECTIVES WITH RESPECT TO THE PRESENT AND FUTURE OPERATIONS OF THE COMPANY, AND STATEMENTS WHICH EXPRESS OR IMPLY THAT SUCH PRESENT AND FUTURE OPERATIONS WILL OR MAY PRODUCE REVENUES, INCOME OR PROFITS. NUMEROUS FACTORS AND FUTURE EVENTS COULD CAUSE THE COMPANY TO CHANGE SUCH PLANS AND OBJECTIVES OR FAIL TO SUCCESSFULLY IMPLEMENT SUCH PLANS OR ACHIEVE SUCH OBJECTIVES, OR CAUSE SUCH PRESENT AND FUTURE OPERATIONS TO FAIL TO PRODUCE REVENUES, INCOME OR PROFITS. THEREFORE, THE READER IS ADVISED THAT THE FOLLOWING DISCUSSION SHOULD BE CONSIDERED IN LIGHT OF THE DISCUSSION OF RISKS AND OTHER FACTORS CONTAINED IN THIS REPORT ON FORM 10-Q AND IN THE COMPANY'S OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. NO STATEMENTS CONTAINED IN THE FOLLOWING DISCUSSION SHOULD BE CONSTRUED AS A GUARANTEE OR ASSURANCE OF FUTURE PERFORMANCE OR FUTURE RESULTS.

Liquidity and Capital Resources

As of ~~December~~March 31, ~~2009~~2010, the Company remains in the development stage. For the period ended ~~December~~March 31, ~~2009~~2010, the Company’s balance sheet reflects total assets of $~~695~~660, all in the form of cash, and current liabilities of $~~1,000~~nil.

Results of Operations

During the period from May 29, 2008 (inception) through ~~December~~March 31, ~~2009,~~2010 the Company has engaged in no significant operations other than organizational activities and preparation and filing of its registration statement on Form 10 under the Securities Exchange Act of 1934, as amended. The Company had no activities during the quarter ended ~~December~~March 31, ~~2009~~2010. The Company does not expect to generate any revenue until it completes a business combination, but will continue to incur legal and accounting fees and other costs associated with compliance with its reporting obligations. As a result, the Company expects that it will continue to incur losses each quarter at least until it has completed a business combination. Depending upon the performance of any acquired business, the Company may continue to operate at a loss even following completion of a business combination.

Plan of Operations

For the remainder of the fiscal year ending September 30, 2010, the Company expects to continue its efforts to locate a suitable business acquisition candidate and thereafter to complete a business acquisition

transaction. The Company anticipates incurring a loss for the fiscal year as a result of expenses associated with compliance with the reporting requirements of the Securities Exchange Act of 1934, and expenses associated with locating and evaluating acquisition candidates. The Company does not expect to generate revenues until it completes a business acquisition, and, depending upon the performance of the acquired business, it may also continue to operate at a loss after completion of a business combination.

Need for Additional Financing

The Company anticipates that it will require additional capital in order to pay the costs associated with carrying out its plan of operations and the costs of compliance with its continuing reporting obligations under the Securities Exchange Act of 1934, as amended, for the fiscal year ending September 30, 2010 and thereafter. This additional capital will be required whether or not the Company is able to complete a business combination transaction during the current fiscal year. Furthermore, once a business combination is completed, the Company’s needs for additional financing are likely to increase substantially.

No specific commitments to provide additional funds have been made by management or other stockholders, and the Company has no current plans, proposals, arrangements or understandings to raise additional capital through the sale or issuance of additional securities prior to the location of a merger or acquisition candidate. Accordingly, there can be no assurance that any additional funds will be available to the Company to allow it to cover its expenses. Notwithstanding the foregoing, however, to the extent that additional funds are required, the Company anticipates that it will either rely on its major shareholders to pay expenses on its behalf, or it will seek to raise capital through the private placement of restricted securities.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not Applicable

ITEM 4T.

CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

The Securities and Exchange Commission defines the term “disclosure controls and procedures” to mean a company's controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified under the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosure.

910

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to be included in our periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported with the time periods specified. Our chief executive officer and chief financial officer also concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance of the achievement of these objectives.

Changes in Internal Control over Financial Reporting

There was no change in the Company's internal control over financial reporting during the period ended ~~December~~March 31, ~~2009~~2010, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II-OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS.

The Company is not a party to any pending legal proceedings, and no such proceedings are known to be contemplated. No director, officer or affiliate of the Company, and no owner of record or beneficial owner of more than 5.0% of the securities of the Company, or any associate of any such director, officer or security holder is a party adverse to the Company or has a material interest adverse to the Company in reference to pending litigation.

ITEM 1A. RISK FACTORS.

Not Applicable.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.

~~SUBMISSION~~(REMOVED OFAND ~~MATTERS TO A VOTE OF SECURITY HOLDERS.~~RESERVED)

None

ITEM 5.

OTHER INFORMATION.

None.

ITEM 6.

EXHIBITS.

(a)

The following exhibits are filed herewith:

31.1

Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

31.2

Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

32.1

Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

32.2

Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

* filed herewith

SIGNATURES

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

DYNASTY CAPITAL, INC.

By: /S/ Jay Lutsky

Jay Lutsky, Chief Executive Officer, Chief Financial Officer

Date: ~~April~~June 114, 2010

1112

Filing Compare · DYNASTY CAPITAL, INC.