U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2012

Commission file number: 000-31176

SHELRON GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware		04-2968425
(State of incorporation)		(I.R.S. Employer Identification No.)

39 Broadway, Suite 3010

New York, New York 10006

(Address of principal executive offices)

Tel: (516) 620-6794

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act:

None

Securities registered pursuant to Section 12(g) of the Exchange Act:

Common Stock, $0.001 par value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No x

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

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨

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 definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ¨		Accelerated filer ¨
Non-accelerated filer ¨		Smaller reporting company x
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No x

The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently computed second fiscal quarter was $177,813

The number of shares of the issuer’s common stock issued and outstanding as of July 8, 2014 was 349,937,492 shares.

Documents Incorporated By Reference:

None

TABLE OF CONTENTS

		Page
PART I
Item 1	Business	3
Item 1A	Risk Factors	5
Item 1B	Unresolved Staff Comments	5
Item 2	Properties	5
Item 3	Legal Proceedings	5
Item 4	Mine Safety Disclosures	5

PART II
Item 5	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	5
Item 6	Selected Financial Data	6
Item 7	Management’s Discussion and Analysis of Financial Condition and Results of Operation	6
Item 7A	Quantitative and Qualitative Disclosures About Market Risk.	10
Item 8	Financial Statements.	10
Item 9	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	10
Item 9A	Controls and Procedures	10
Item 9B	Other Information	11

PART III
Item 10	Directors, Executive Officers and Corporate Governance	12
Item 11	Executive Compensation	13
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	14
Item 13	Certain Relationships and Related Transactions, and Director Independence	15
Item 14	Principal Accountant Fees and Services	15

PART IV
Item 15	Exhibits, Financial Statement Schedules	16
SIGNATURES		18

PART 1

ITEM 1. BUSINESS

COMPANY OVERVIEW

Shelron Group, Inc. (the “Company”, “we”, “our”, or “us”) was originally incorporated in the State of Massachusetts in June 1987, under the name "Professional Brushes, Inc." In April 1999, the Company changed its state of incorporation to Delaware by means of a merger with and into a Delaware company and, in connection therewith, changed our name to "PB Acquisition Corp." In May 2000, the Company entered into a share exchange agreement with TTTTickets.com, Inc., a Delaware corporation ("Tickets") incorporated in April 2000 for the purposes of developing and maintaining an internet website for the sale and purchase of event tickets, pursuant to which Tickets became a wholly owned subsidiary of the Company. We also changed our name to "TTTTickets Holding Corp." Thereafter, in November 2001, we entered into a stock purchase and merger agreement with B-Park Communications, Inc., ("B-Park") a Delaware corporation formed in August 2001 for the sole purpose of entering into such agreement. In September 2002, we changed our name to Shelron Group, Inc.

On March 29, 2012, the Company created a new subsidiary called Serena Gold, LLC (“Serena Gold”) to acquire and hold gold exploration and production licenses in South America.

OUR STRATEGY

The Company is currently focused on two sectors, internet and mining as well as strategic acquisitions that management believes will enhance our market positioning.

The Company has entered into agreements related to these areas:

During April 2011, the Company signed a non-binding Memorandum of Understanding (“MOU”) to acquire gold mining rights in Ghana. This MOU has expired and has been canceled.

During May 2011, the Company entered into an exclusive perpetual worldwide software license. The Company will utilize the software to create an affiliate network for online websites. The Company agreed to pay $900,000 for such license in cash or in shares of the Company based the average share price on the preceding 30 days before payment. Such payment is scheduled to be made on or about August 2015 and only if the Company achieves $1,250,000 in aggregate revenues from the use of the software prior to the payment date. If the aggregate revenues are below $1,250,000, the Company has a right to terminate the license agreement with no penalty or payment required. The Company is waiting for the completion of certain features of the software and is currently evaluating the existing technical aspects of the software.

During September 2011, the Company signed a non-binding MOU with a local Tanzanian company for the acquisition of 51% of the mineral rights of a property in the Geita district of Tanzania. This MOU has expired and has been canceled.

During September 2011, the Company signed an additional non-binding MOU with a local Tanzanian company which has the rights to prospect for gold in the Kahama district. This MOU has expired and been canceled.

During November 2011, the Company entered into gold exploration in Chile based on Chile’s potential, and the Company's strategy is to explore gold in Africa and in the Americas. The Company is interested in more deals to increase its portfolio and opportunities. The focus of the Company is to adhere to its acquisition criteria and only acquire a prospecting license in Chile that can potentially be developed into proven reserves or productive metal resource mines. The Company continues to focus its efforts and search for gold opportunities in Chile.

During April 2012, the Company’s newly formed subsidiary, Serena Gold, signed a binding MOU to acquire six gold exploration licenses on approximately 1,800 acres in Northern Chile. The acquisition of the licenses is subject to the satisfactory completion of due diligence by Serena Gold. Payment for the licenses was deferred for two years. After completion of the due diligence Serena Gold determined not to acquire the licenses and canceled the MOU. The Company is currently looking to acquire licenses directly from the Chilean government and plans to raise additional capital to fund any potential acquisitions for these licenses.

PROPRIETARY RIGHTS

We seek to protect our proprietary rights through a combination of copyright, trade secret, patent and trademark law, and contractual restrictions, such as confidentiality agreements and proprietary rights agreements. We enter into confidentiality and proprietary rights agreements with our service providers, and generally control access to and distribution of our proprietary information. Despite our efforts to protect our proprietary rights, unauthorized parties may obtain and use our intellectual property, and we cannot be certain the steps we have taken will prevent misappropriation or confusion among consumers and merchants. If we are unable to procure, protect and enforce our intellectual property rights, then we may not realize the full value of these assets, and our business may suffer.

We do not currently have any additional registered trademarks. We do not currently have any patents on our technologies.

EMPLOYEES AND CONSULTANTS

We currently have one full-time employee, who is our President. Our President also currently serves as Chairman of the Board.

We presently retain professional service providers and consultants, who provide services including, management, financial accounting and administration and public relations services. These service providers and consultants may provide their services to us on a full-time, part-time, or on demand basis.

AVAILABLE INFORMATION

The public may read and copy any materials we file with the Securities and Exchange Commission ("SEC") at the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Rooms by calling the SEC at 1-800-SEC-0330 FREE. The SEC also maintains an Internet website that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. The SEC's Internet website is located at http://www.sec.gov

Item 1A. Risk Factors

Not required for Smaller Reporting Companies.

Item 1B. Unresolved Staff Comments

None.

ITEM 2. PROPERTIES.

We do not own any real property.

We maintain an office at 39 Broadway, Suite 3010, New York, New York. No rent is charged for this space. We believe that our office space in the United States is sufficient to meet our current and anticipated needs.

ITEM 3. LEGAL PROCEEDINGS.

We are not involved in any pending legal proceedings which we anticipate can result in a material adverse effect on our business or operations.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

PART II

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On October 9, 2012, the Company issued 3,000,000 shares of its common stock to a service provider under the terms of a three-month agreement entered into in July 2011 for marketing, business development and consulting services

On December 14, 2012, the Company entered into an agreement with an investor to purchase 1,000,000 common shares for $10,000. As of July 8, 2014, these shares have not been issued. The proceeds were used for working capital purposes.

The foregoing securities were issued in a private placement transaction pursuant to the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended, without general solicitation or advertising of any kind and without payment of brokerage commissions to any person.

MARKET INFORMATION

The Company's Common Stock is listed on the OTC Bulletin Board under the symbol "SRNG". The following table sets forth the high and low bid information for the Company's Common Stock for each quarterly period during the years ended December 31, 2011 and 2012 as reported by the OTC Bulletin Board. The OTC Bulletin Board quotations reflect inter-dealer prices, are without retail markup, markdown or commission, and may not represent actual transactions.

	High		Low

Calendar Year 2011
First Quarter	$	0.025	$	0.002
Second Quarter	$	0.025	$	0.003
Third Quarter	$	0.040	$	0.010
Fourth Quarter	$	0.092	$	0.030
Calendar Year 2012
First Quarter	$	0.046	$	0.009
Second Quarter	$	0.029	$	0.010
Third Quarter	$	0.030	$	0.022
Fourth Quarter	$	0.020	$	0.003

HOLDERS

At July 8, 2014, there are approximately 386 holders of record of the Company's Common Stock. This does not reflect those shares held beneficially or those shares held in "street" name.

DIVIDENDS

Holders of Common Stock and Series A Preferred Stock are entitled to dividends, when, as, and if declared by our Board of Directors, out of funds legally available therefore. We have not paid any dividends in any form on the Common Stock or Series A Preferred Stock during the last ten years and do not expect to pay cash dividends in the foreseeable future with respect to the Common Stock or Series A Preferred Stock.

It is the present policy of our Board of Directors to retain all earnings to provide funds for our growth. The declaration and payment of dividends in the future will be determined by our Board of Directors based upon our earnings, financial condition, capital requirements and such other factors as our Board of Directors may deem relevant. We are not under any contractual restriction as to our present or future ability to pay dividends.

EQUITY COMPENSATION PLAN INFORMATION

We do not have any existing option or equity compensation plans.

Purchases of Equity Securities by the Small Business Issuer and Affiliated Purchasers

We have not repurchased any shares of our common stock during the fiscal years ended December 31, 2012 and 2011.

ITEM 6. Selected Financial Data.

Not applicable.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS

FORWARD-LOOKING STATEMENTS

The Company or management may make or may have made certain forward-looking statements, orally or in writing, such as those within Management's Discussion and Analysis contained in its various SEC filings. The statements that express the “belief,” “anticipation,” “plans,” “expectations,” “will” and similar expressions are intended to identify forward-looking statements. The Company wishes to ensure that such statements are accompanied by meaningful cautionary statements, so as to ensure to the fullest extent possible the protections of the safe harbor established in the Private Securities Litigation Reform Act of 1995. Such statements are therefore qualified in their entirety by reference to and are accompanied by the following discussion of certain important factors that could cause actual results to differ materially from those described in such forward-looking statements.

The Company cautions the reader that this list of factors is not intended to be exhaustive. The Company operates in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such factors, nor can it assess the impact, if any, of such factors on the Company's business or the extent to which any factors may cause actual results to differ materially from those described in any forward-looking statement. None of the Company's forward-looking statements should be relied upon as a prediction of actual results.

The Company faces risks and uncertainties that could render actual events materially different than those described in our forward-looking statements. These risks and uncertainties are described elsewhere in this report.

OVERVIEW

Shelron Group, Inc. (the “Company”, “we”, “our”, or “us”) developed e-commerce advertising and comparative shopping software products and services. At the present time, we are currently focused on two sectors, internet and mining as well as strategic acquisitions that management believes will enhance our market positioning. We are also considering strategic acquisitions that management believes will enhance our market positioning.

On March 29, 2012, the Company created a new subsidiary called Serena Gold to acquire and hold gold exploration and production licenses in South America.

During April 2011, we signed a non-binding Memorandum of Understanding (“MOU”) to acquire gold mining rights in Ghana. This MOU has expired and has been canceled.

During September 2011, the Company signed a non-binding Memorandum of Understanding with a local Tanzanian company for the acquisition of 51% of the mineral rights of a property in the Geita district of Tanzania. This MOU has expired and has been canceled.

During September 2011, the Company signed a non-binding Memorandum of Understanding with a local Tanzanian company which has the rights to prospect for gold in the Kahama district. This MOU has expired and has been canceled.

During November 2011, the Company started looking into gold exploration opportunities in Chile based on Chile’s potential, and the Company's strategy to explore gold in Africa and in the Americas. The Company is interested in more deals to increase its portfolio and opportunities. The focus of the Company is to adhere to its acquisition criteria and only acquire a prospecting license in Chile that can potentially be developed into proven reserves or productive metal resource mines. The Company continues to focus its efforts and search for gold opportunities in Chile.

During April 2012, the Company’s newly formed subsidiary, Serena Gold, LLC, signed a binding MOU to acquire six gold exploration licenses on approximately 1,800 acres in Northern Chile. The acquisition of the licenses is subject to the satisfactory completion of due diligence by Serena Gold. Payment for the licenses was deferred for two years. After completion of the due diligence Serena Gold determined not to acquire the licenses and canceled the MOU. The Company is currently looking to acquire licenses directly from the Chilean government and plans to raise additional capital to fund any potential acquisitions for these licenses.

We do not participate in, nor have we created, any off-balance sheet special purpose entities or other off-balance sheet financing.

Our financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States (“GAAP”). GAAP requires the use of estimates, assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.

We have identified the accounting policies below as critical to our business operations and the understanding of our results of operations.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our significant accounting policies are summarized in Note 2 of Notes to Financial Statements. While all these significant accounting policies impact its financial condition and results of operations, the Company views certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our consolidated financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our results of operations, financial position or liquidity for the presented in this report.

RESULTS OF OPERATIONS

Comparison of the Year Ended December 31, 2012 (the "2012 Period") and the Year Ended December 31, 2011 (the "2011 Period"):

Revenues

The Company did not have any revenues during the 2012 Period and the 2011 Period. We are exploring new opportunities in the mining, media, internet, oil and gas and high-tech fields. We are also considering strategic acquisitions that management believes will enhance our market positioning.

Operating Expenses

Operating expenses consist of salaries, consulting expenses, professional fees and other expenses associated with the operations of our business. For the 2012 Period, operating expenses were $255,233, an increase of $14,254 or 5.9%, as compared to $240,979 for the 2011 Period. The increase is primarily attributable to increased costs related to the creation of our subsidiary Serena Gold and the expenses related to the MOU’s that were signed in the 2011 and 2012 Periods.

Employment Compensation

Our sole full-time employee is our President and Chairman of the Board, Eliron Yaron. Employment compensation totaled $156,000 for the 2012 and 2011 Periods.

Consulting Fees

Consulting fees consist primarily of outsourced consulting services. Consulting fees were $35,000 for the 2012 Period, an increase of $500 or 1.4% as compared to $34,500 for the 2011 Period.

Professional Fees

Professional fees consist primarily of legal, accounting and auditing. For the 2012 Period, professional fees were $22,300, an increase of $8,300 or 59.3% as compared to $14,000 for the 2011 Period.

Office and General Expenses

Office and general expenses consist primarily of computer maintenance, marketing materials, website design, travel, rent, corporate fees and telephone expenses. Office and general expenses totaled $39,827 for the 2012 Period and compared to $35,876 for the 2011 Period and increase of $3,951 or 11.0%. The increase is primarily attributable to increased costs related to the creation of our subsidiary Serena Gold and the expenses related to the MOU’s that were signed in the 2011 and 2012 Periods.

LIQUIDITY AND CAPITAL RESOURCES

To date, we have financed our operations primarily from cash generated through the sale of our Common Stock in private placements as well as from cash earned from our operations.

As of December 31, 2012, we had a cash balance of $3,878 and a working capital deficit of $619,340.

Cash used in operating activities was $93,306 for the 2012 Period compared to $24,869 for the 2011 Period. The use of cash from operating activities for the 2012 Period is primarily attributable to the cash needed to fund the loss for the 2012 Period.

Cash provided by financing activities in the 2012 Period was $96,999 compared to $25,000 for the 2011 Period. The 2012 Period consisted of the proceeds from the issuance of shares related to investments in the Company and from an unsecured non-interest bearing note issued by the Company for working capital purposes. The Note matured on May 17, 2012. As of July 8, 2014, the Company has not repaid the Note and is currently in default with respect to the remaining outstanding principal on the Note plus the accrued interest thereon.

The focus of the Company’s efforts is to acquire or develop an operating business. Despite limited active operations at this time, management intends to continue in business and has no intentions to liquidate the Company. The Company has considered various business alternatives including the possible acquisition of an existing business. During the year ended December 31, 2013 and the period January 1, 2014 to July 8, 2014, the Company raised additional capital and issued 7,775,000 and 4,485,000 common shares, respectively. The money raised will be used to assist the Company to achieve its strategy with respect to its search for potential acquisitions in the mining and energy sectors.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has incurred continuing losses, is dependent on debt and equity financing to fund its operations and has an accumulated deficit of approximately $6.8 million, all of which raises substantial doubt about the Company's ability to continue as a going concern.

The Company is currently dependent on its President, Mr. Yaron, to continue to fund the Company. If the Company is unable to grow its affiliate network business or to acquire or develop an operating business the Company will be unable to fund itself. There is no guarantee that Mr. Yaron will continue to fund the Company.

Management believes the Company will continue to incur losses and negative cash flows from operating activities for the foreseeable future and will need additional equity or debt financing to sustain its operations until it can achieve profitability and positive cash flows, if ever. The Company’s continuation as a going concern is dependent upon its ability to ultimately attain profitable operations, generate sufficient cash flow to meet its obligations, and obtain additional financing as may be required. The outcome of this uncertainty cannot be assured. Our independent registered public accounting firm, in their reports on our financial statements for the years ended December 31, 2012 and 2011, expressed substantial doubt about our ability to continue as a going concern. These circumstances could complicate our ability to raise additional capital. Our financial statements do not include any adjustments to the carrying amounts of our assets and liabilities that might result from the outcome of this uncertainty.

The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. There can be no assurance that management will be successful in implementing its business plan or that the successful implementation of such business plan will actually improve the Company's operating results.

OFF-BALANCE SHEET ARRANGEMENTS

None.

ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk.

Not required for Smaller Reporting Companies.

ITEM 8. FINANCIAL STATEMENTS

The financials statements of our Company for the years ended December 31, 2012 and 2011 are attached hereto following the signature page commencing on page F-1.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. Controls and Procedures.

Evaluation of Effectiveness of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer, who also acts as our Chief Financial Officer, the Company evaluated the effectiveness of its disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The evaluation considered the procedures designed to provide assurance to ensure that information required to be disclosed by us in the reports filed or submitted by the Company under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and communicated to our management as appropriate to allow timely decisions regarding required disclosure. Our disclosure controls and procedures have been designed to provide reasonable assurance of achieving their objectives. Based on that evaluation, our Chief Executive Officer concluded that our disclosure controls and procedures were effective at that reasonable assurance level, as of December 31, 2012.

Management’s Report on Internal Control Over Financial Reporting

Our Chief Executive Officer is responsible to design or supervise a process to be effected by our board of directors that provides reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. It is management’s responsibilities to establish and maintain adequate internal controls over the Company’s financial reporting.

The policies and procedures include:

- Maintenance of records in reasonable detail to accurately and fairly reflect the transactions and dispositions of assets,

- Review and authorization by management for all receipts and expenditures,

- Reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and directors, and

- Reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on our financial statements.

Management, with the participation of our Chief Executive Officer, evaluated the effectiveness of our internal controls over financial reporting based upon the framework provided by the Treadway Commission’s Committee of Sponsoring Organizations. The Company’s Chief Executive Officer, who also acts in the capacity of Chief Financial Officer, has concluded that the Company’s internal controls over financial reporting were effective as of the end of the period covered by the Report.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) during the year ended December 31, 2012 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

LIMITATIONS OF EFFECTIVENESS OF INTERNAL CONTROLS

Management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material errors. An internal control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations on all internal control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. The design of any system of internal control is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in circumstances, and/or the degree of compliance with the policies and procedures may deteriorate. Because of the inherent limitations in a cost effective internal control system, financial reporting misstatements due to error or fraud may occur and not be detected on a timely basis.

ITEM 9B. Other Information.

None.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The following table sets forth information concerning our Directors and Executive Officer:

Name	Age	Positions and Offices Held
Eliron Yaron	44	Chairman, Chief Executive Officer, Principal Financial And Accounting Officer, Director and Secretary

Issac Maizel	33	Director

Yossi Levi	33	Director

Eliron Yaron, age 44, has been the Chairman of our Board of Directors, Principal Executive Officer and Principal Financial and Accounting Officer since company's inception date in August 2001. Prior to joining us, from 1996 through 2001, he was the founder and Chief Executive Officer of Shelron Internet Ltd., a web project oriented company. Prior to that time, since 1993, he has engaged in either founding web related business or working in related technology areas. Eliron Yaron has served on the boards of Internet companies in the US and Israel, and has advised venture capital funds and investment companies on IT and Internet related investments and marketing.

Isaac Maizel, age 33, has worked since 2001 as a computer network consultant, with an expertise in large networks implementation.

Yossi Levi, age 33, worked since 2001 as an E-learning consultant, and as an internet advertising salesman.

THE COMMITTEES

The Board of Directors does not have a Compensation, Audit or Nominating Committee, and the usual functions of such committees are currently performed by the Board of Directors. The Directors have determined that at present we do not have an audit committee financial expert. The Directors believe that they are capable of analyzing and evaluating our financial statements and understanding internal controls and procedures for financial reporting. In addition, we have been seeking and continue to seek appropriate individuals to serve on the Board of Directors and the Audit Committee who will meet the requirements necessary to be an independent financial expert.

EXECUTIVE OFFICERS OF OUR COMPANY

Officers are appointed to serve at the discretion of the Board of Directors. Mr. Eliron Yaron currently serves as our Chairman of the Board and sole Executive Officer.

CODE OF ETHICS

We adopted a code of ethics that applies to our Principal Executive Officer and Principal Financial and Accounting Officer, and other persons who perform similar functions. A copy of our Code of Ethics is filed as an exhibit to the Annual Report on Form 10-KSB for the year ended December 31, 2003. Our Code of Ethics is intended to be a codification of the business and ethical principles which guide us, to deter wrongdoing, promote honest and ethical conduct, avoid conflicts of interest, and foster full, fair, accurate, timely and understandable disclosures, compliance with applicable governmental laws, rules and regulations, the prompt internal reporting of violations and accountability for adherence to this Code.

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Exchange Act requires the Company's Executive Officers, Directors and persons who beneficially own more than 10% of a registered class of the Company's equity securities to file with the Commission initial reports of ownership and reports of changes in ownership of Common Stock and other equity securities of the Company. Such persons are required by Commission regulations to furnish the Company with copies of all Section 16(a) forms they filed. Based solely upon a review of (i) Forms 3 and 4 and amendments thereto furnished to the Company pursuant to Rule 16a-3(e), promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), during the Company's fiscal year ended December 31, 2011, and (ii) Forms 5 and amendments thereto and/or written representations furnished to us by any Director, officer or 10% security holder of the Company (collectively "Reporting Persons") stating that he or she was not required to file a Form 5 during the Company's fiscal year ended December 31, 2012, it has been determined that all Officers, Directors and persons who beneficially own more than 10% of a registered class of the Company's equity securities have met their reporting obligations set forth in Section 16(a) of the Exchange Act.

Potential Conflicts of Interest

Since we do not have an audit or compensation committee comprised of independent directors, the functions that would have been performed by such committees are performed by our directors. The Board of Directors has not established an audit committee and does not have an audit committee financial expert, nor has the Board established a nominating committee. The Board is of the opinion that such committees are not necessary since the Company has only three directors, and to date, such directors have been performing the functions of such committees. Thus, there is a potential conflict of interest in that our directors and officers have the authority to determine issues concerning management compensation, nominations, and audit issues that may affect management decisions. We are not aware of any other conflicts of interest with any of our executive officers or directors.

Involvement in Certain Legal Proceedings

There are no legal proceedings that have occurred within the past five years concerning our directors, or control persons which involved a criminal conviction, a criminal proceeding, an administrative or civil proceeding limiting one's participation in the securities or banking industries, or a finding of securities or commodities law violations.

ITEM 11. EXECUTIVE COMPENSATION

The Summary Compensation Table below sets forth compensation paid by the Company for the fiscal years ended December 31, 2012 and 2011 for services to its Principal Executive Officer and other Executive Officers who received a total annual salary and bonus which exceeded $100,000.

SUMMARY COMPENSATION TABLE
NAME AND			ANNUAL AND TOTAL
POSITION	YEAR		COMPENSATION
Eliron Yaron,
Chairman, Principal Executive	2012	$	156,000
Officer and Principal Financial	2011	$	156,000
And Accounting Officer

Mr. Yaron did not receive a bonus or any type of other compensation, not mentioned above, for the two years presented.

OPTION GRANTS

None of the Named Executive Directors were granted any options during the years ended December 31, 2012 and 2011.

AGGREGATE OPTIONS EXERCISED IN 2012 AND 2011 YEAR END VALUES

Not applicable.

EQUITY COMPENSATION PLAN INFORMATION

Not applicable.

EXECUTIVE EMPLOYMENT

In March 2005, we entered into a Consulting Agreement ("Consulting Agreement") with Hull Services Inc. ("Hull"), a company wholly-owned and controlled by Eliron Yaron, the Chairman of the Board of Directors and the Principal Executive Officer of the Company. Pursuant to the terms of this Consulting Agreement, we pay to Hull $156,000 per annum in installments of $3,000 per week for Mr. Yaron’s services, in addition to reimbursing all reasonable expenses incurred in connection with services rendered on behalf of our Company. The compensation accrues and is paid when funds for such payments are available. As of December 31, 2012, accrued and outstanding fees to Hull are $492,040. The Consulting Agreement continued in effect through March 2013 and contains certain customary confidentiality and non-compete provisions. The Consulting Agreement is renewed automatically for successive one year periods until either party gives the other a 180-day prior written notice of its intent to terminate the Consulting Agreement. As of December 31, 2013 and 2012, no prior written notice with the intent to terminate the Consulting Agreement was provided. Therefore, the Consulting Agreement has been automatically extended until March 2015.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth information as of July 8, 2014, concerning all persons known by us to own beneficially more than 5% of our Common Stock and concerning shares beneficially owned by each Director and named Executive Officer and by all Directors and Executive Officers as a group. Unless expressly indicated otherwise, each stockholder exercises sole voting and investment power with respect to the shares beneficially owned.

In accordance with the rules of the SEC, the table gives effect to the shares of Common Stock that could be issued upon the exercise of outstanding options and common stock purchase warrants within the next 60 days. Unless otherwise noted in the footnotes to the table and subject to community property laws where applicable, the following individuals have sole voting and investment control with respect to the shares beneficially owned by them.

The address of each Executive Officer and Director is 39 Broadway, Suite 3010, New York, NY 10006. We have calculated the percentages of shares beneficially owned based on 349,937,492 shares of Common Stock outstanding at July 8, 2014.

Name and Address of Beneficial Owner	Shares of Common Stock Stock			Percentage Ownership of Shares of Common Stock (1)			Preferred Stock			Voting Power of Shares of Preferred Stock
Executive Officers and
Directors
Eliron Yaron		251,353,334	(2)		71.8	%		1,000,000	(3)		52	%


Issac Maizel		0						0
Yossi Levi		0						0
All Executive Officers		251,353,334	(2)		71.8	%		1,000,000	(3)		52	%
and Directors as a group
(3 persons)
5% Stockholders
None
All Executive Officers,
Directors and 5%
Stockholders as a group		251,353,334	(2)		71.8	%		1,000,000	(3)		52	%
(5 persons)
* less than one percent (1%).

(1) Percentage of beneficial ownership as to any person as of a particular date is calculated by dividing the number of shares of Common Stock issued and outstanding of such person as of such date and the number of unissued shares as to which such person has the right to acquire voting and/or investment power within 60 days, by the total issued and outstanding shares of Common Stock of the Company at such date.

(2) Comprised of (a) 250,233,334 shares of Common Stock owned by Mr. Yaron and (b) 1,120,000 shares of Common Stock owned by Hull Services, Inc. (“Hull”) a company wholly-owned and controlled by Mr. Yaron. As the sole Stockholder of Hull, Mr. Yaron may be deemed a beneficial owner of the shares of Common Stock.

(3) Comprised of 1,000,000 shares of Common Stock issuable upon the conversion of 1,000,000 shares of Series A Preferred Stock issued to Hull. As the sole Stockholder of Hull, Mr. Yaron may be deemed a beneficial owner of the shares of Common Stock issuable upon conversion of the Series A Preferred Stock. The holder of the Series A Preferred Stock is entitled to vote along with the holders of Common Stock as one class on all matters for which the Stockholders of the Company shall vote. The holder of Series A Preferred Stock is entitled to a vote representing 52% of the total shares entitled to vote by all holders of the then outstanding shares of Common Stock and Series A Preferred Stock combined.

In March 2005, we entered into a Consulting Agreement ("Consulting Agreement") with Hull Services Inc. ("Hull"), a company wholly-owned and controlled by Eliron Yaron, the Chairman of the Board of Directors and the Principal Executive Officer of the Company. Pursuant to the terms of this Consulting Agreement, we pay to Hull $156,000 per annum in installments of $3,000 per week for Mr. Yaron’s services, in addition to reimbursing all reasonable expenses incurred in connection with services rendered on behalf of our Company. The compensation accrues and is paid when funds for such payments are available. As of December 31, 2012, accrued and outstanding fees to Hull are $492,040. The Consulting Agreement continues in effect through March 2013 and contains certain customary confidentiality and non-compete provisions. The Consulting Agreement is renewed automatically for successive one year periods until either party gives the other a 180-day prior written notice of its intent to terminate the Consulting Agreement. As of December 31, 2013 and 2012, no prior written notice with the intent to terminate the Consulting Agreement was provided. Therefore, the Consulting Agreement has been automatically extended until March 2015.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

From July 17, 2006 and through the subsequent periods for fiscal year ended December 31, 2012, our principal independent auditor was Rotenberg Meril Solomon Bertiger & Guttilla, P.C. ("RMSBG"). The following are the services provided and the amount billed:

AUDIT FEES

The aggregate fees billed or to be billed by RMSBG for professional services rendered for the audit of the Company's annual financial statements for the fiscal year ended December 31, 2012 and 2011 and for the review of the financial statements included in the Company's Quarterly Reports on Form 10-Q were $20,000 and $20,000, respectively.

AUDIT RELATED FEES

Other than the fees described under the caption "Audit Fees" above, RMSBG did not bill any fees for services rendered to us during fiscal years 2012 and 2011 for assurance and related services in connection with the audit or review of our financial statements.

TAX FEES

Fees billed by RMSBG for tax services rendered during the fiscal years ended December 31, 2012 and 2011 were approximately $1,000 and $1,000, respectively.

ALL OTHER FEES

There were no fees billed by RMSBG for other professional services rendered during the periods for fiscal years ended December 31, 2012 and 2011, respectively.

PRE-APPROVAL OF SERVICES

We do not have an audit committee. Our Board of Directors pre-approves all services, including both audit and non-audit services, provided by our independent accountants. For audit services, each year the independent auditor provides our Board of Directors with an engagement letter outlining the scope of the audit services proposed to be performed during the year, which must be formally accepted by the Board of Directors before the audit commences. The independent auditor also submits an audit services fee proposal, which also must be approved by the Board of Directors before the audit commences.

PART IV

Item 15. Exhibits. Financial Statement Schedules.

Exhibit Number		Description

3.1		Certificate of Incorporation of the Company. (1)

3.2		Bylaws of the Company. (1)

3.3		Certificate of Amendment of Certificate of Incorporation. (1)

4.1		Certificate of Designation of the Company.(2)

10.1		Stock Purchase Agreement. (3)

10.2		Consulting Agreement dated as of March 1, 2005 between the Company and Hull Services, Inc. (5)

14		Code of Ethics. (4)

31		Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.

32		Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		XBRL Instance Document

101.SCH		XBRL Taxonomy Extension Schema Document

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		XBRL Taxonomy Extension Label Linkbase Document

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

(1) This exhibit was filed as an exhibit to the Registration statement on Form 10-SB12G filed on October 11, 2000 and is incorporated herein by reference.

(2) This exhibit was filed as an exhibit to the Annual Report on Form 10-KSB filed on April 16, 2002 and is incorporated herein by reference.

(3) This exhibit was filed as an exhibit to the Current Report on Form 8-K filed on November 16, 2001 and is incorporated herein by reference.

(4) This exhibit was filed as an exhibit to the Annual Report on Form 10-KSB filed on May 21, 2004 and is incorporated herein by reference.

(5) This exhibit was filed as an exhibit to the Annual Report on Form 10-KSB filed on April 8, 2005 and is incorporated herein by reference.

(6) This exhibit was filed as an exhibit to the Current Report on Form 8-K filed on May 8, 2006 and is incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SHELRON GROUP, INC.

Dated: July 28, 2014	By:	/s/ Eliron Yaron
		Eliron Yaron
		Chairman

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following person on behalf of the Company and in the capacities and on the date indicated.

Signature	Capacity	Date

/s/ Eliron Yaron	Chairman and Director	July 28, 2014
Eliron Yaron

Issac Maizel	Director	July 28, 2014

Yossi Levi	Director	July 28, 2014

SHELRON GROUP INC.

INDEX TO FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets as of December 31, 2012 and 2011	F-3
Consolidated Statements of Operations for the years ended December 31, 2012 and 2011	F-4
Consolidated Statements of Stockholders' Deficiency for the years ended December 31, 2012 and 2011	F-5
Consolidated Statements of Cash Flows for the years ended December 31, 2012 and 2011	F-6
Notes to Consolidated Financial Statements	F-7

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Directors and Stockholders of

Shelron Group, Inc.

We have audited the accompanying consolidated balance sheets of Shelron Group, Inc. and Subsidiary (the “Company”) as of December 31, 2012 and 2011, and the related consolidated statements of operations, changes in stockholders’ deficiency and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these 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 consolidated financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated 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 audit provides 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 the Company as of December 31, 2012 and 2011 and the results of its operations and cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has incurred recurring losses, is dependent on debt and equity financing to fund its operations and has a stockholders' deficiency, all of which raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans concerning these matters are also described in Note 1. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ Rotenberg Meril Solomon Bertiger & Guttilla, P.C.

Saddle Brook, New Jersey

July 8, 2014

F-2

SHELRON GROUP INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

	December 31,			December 31,
	2012			2011
ASSETS
Current Assets:
Cash	$	3,878		$	185

Total Current Assets		3,878			185

Software License		900,000			900,000

Total Assets	$	903,878		$	900,185

LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current Liabilities:
Accounts payable and accrued expenses	$	109,150		$	102,379
Due to stockholders		492,040			361,464
Note payable		15,000			-
Convertible note payable		7,028			7,028

Total Current Liabilities		623,218			470,871

Liability for common stock to be issued to officer		205,740			205,740
Software License Payable		900,000			900,000

Total Liabilities		1,728,958			1,576,611

Commitments

Stockholders' Deficiency:
Series A convertible preferred stock $0.001 par value
per share, Authorized 1,000,000 shares;
Issued and outstanding 1,000,000 shares		1,000			1,000
Common stock, par value $0.001 par value per share
Authorized 500,000,000 shares;
Issued and outstanding 337,677,492 shares and
328,877,492 shares, respectively		337,677			328,877
Common stock to be issued, 1,000,000 and
3,000,000 shares, respectively		10,000			12,000
Additional paid-in capital		5,637,505			5,529,306
Stock subscription receivable		(8,000	)		-
Accumulated deficit		(6,803,262	)		(6,547,609	)

Total Stockholders' Deficiency		(825,080	)		(676,426	)

Total Liabilities and Stockholders' Deficiency	$	903,878		$	900,185

The accompanying notes to these financial statements are an integral part of these statements.

F-3

SHELRON GROUP INC. AND SUBSIDIARY

CONSOLDIATED STATEMENTS OF OPERATIONS

	Years Ended
	December 31,			December 31,
	2012			2011

Revenues	$	-		$	-

Operating Expenses:
Consulting fees		35,000			34,500
Employment compensation		156,000			156,000
Professional fees		22,300			14,000
Office and general expenses		39,827			35,876
Bank charges		2,106			603

Total Operating Expenses		255,233			240,979

Loss from operations		(255,233	)		(240,979	)

Other Income (Expense):
Interest expense		(420	)		(2,025	)
Other income		-			13,944

Net Loss	$	(255,653	)	$	(229,060	)

Net loss per share:
Basic and diluted	$	(0.00	)	$	(0.00	)

Weighted average shares outstanding
Basic and Diluted		335,130,060			174,590,369

The accompanying notes to these financial statements are an integral part of these statements.

F-4

SHELRON GROUP INC. AND SUBSIDIARY

CONSOLDIATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY

	Preferred Stock				Common Stock
	Number				Number				Common			Additional		Stock						Total
	of				of				Stock to			Paid-in		Subscription			Accumulated			Stockholders'
	Shares		Amount		Shares		Amount		be Issued			Capital		Receivable			Deficit			Deficiency

Balance at December 31, 2010		1,000,000	$	1,000		18,477,492	$	18,477				$	5,497,806	$	-		$	(6,318,549	)	$	(801,266	)

Issuance of Common Stock for debt of Hull		-		-		250,000,000		250,000										-			250,000

Issuance of Common Stock for investment by UY						2,500,000		2,500					22,500								25,000

Issuance of Common Stock for consulting fees and services						3,000,000		3,000					9,000								12,000

Common Stock to be issued										12,000											12,000

Issuance of Common Stock for conversion on Note Payable						54,900,000		54,900													54,900

Net loss																		(229,060	)		(229,060	)

Balance at December 31, 2011		1,000,000		1,000		328,877,492		328,877		12,000			5,529,306		-			(6,547,609	)		(676,426	)

Common Stock to be issued										10,000											10,000

Issuance of Common Stock for cash						3,300,000		3,300					76,699		(8,000	)					71,999

Issuance of Common Stock for services						5,500,000		5,500		(12,000	)		31,500								25,000

Net loss																		(255,653	)		(255,653	)

Balance at December 31, 2012		1,000,000	$	1,000		337,677,492	$	337,677	$	10,000		$	5,637,505	$	(8,000	)	$	(6,803,262	)	$	(825,080	)

The accompanying notes to these financial statements are an integral part of these statements.

F-5

SHELRON GROUP INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Years Ended
	December 31,			December 31,
	2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(255,653	)	$	(229,060	)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for consulting fees and services		25,000			24,000
Gain on write-off of accrued expenses		-			(13,944	)
Changes in operating assets and liabilities:

Increase in accounts payable		6,771			23,265
Increase in due to stockholders		130,576			170,870
Net cash used in operating activities		(93,306	)		(24,869	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Note payable		15,000			-
Cash received from sale of common stock		81,999			25,000
Net cash provided by financing activities		96,999			25,000

Net increase in cash		3,693			131
Cash at the beginning of the year		185			54

Cash at the end of the year	$	3,878		$	185

Schedule of Non-Cash Activity:
Issuance of common stock under stock subscription	$	8,000		$	-
Payment of Due to Stockholder in the
Form of Shares of Common Stock	$	-		$	250,000
Conversion of Note Payable into Shares of Common Stock	$	-		$	54,900
Deposit on Software License	$	-		$	900,000

The accompanying notes to these financial statements are an integral part of these statements.

F-6

SHELRON GROUP INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2012 and 2011

NOTE 1 - THE COMPANY AND ITS OPERATIONS

Shelron Group, Inc. (“Shelron”, the “Company”, “we”, “our”, or “us”) was originally incorporated in the State of Massachusetts in June 1987, under the name "Professional Brushes, Inc." In April 1999, the Company changed its state of incorporation to Delaware by means of a merger with and into a Delaware company and, in connection therewith, changed our name to "PB Acquisition Corp." In May 2000, the Company entered into a share exchange agreement with TTTTickets.com, Inc., a Delaware corporation ("Tickets") incorporated in April 2000 for the purposes of developing and maintaining an internet website for the sale and purchase of event tickets, pursuant to which Tickets became a wholly owned subsidiary of the Company. We also changed our name to "TTTTickets Holding Corp." Thereafter, in November 2001, we entered into a stock purchase and merger agreement with B-Park Communications, Inc., ("B-Park") a Delaware corporation formed in August 2001 for the sole purpose of entering into such agreement. In September 2002, we changed our name to Shelron Group, Inc.

On March 29, 2012, the Company created a new subsidiary called Serena Gold, LLC (“Serena Gold”) to acquire and hold gold exploration and production licenses in South America.

The Company is currently focused on two sectors, internet and mining as well as strategic acquisitions that management believes will enhance our market positioning.

The Company has entered into agreements related to these areas.

During April 2011, the Company signed a non-binding Memorandum of Understanding (“MOU”) to acquire gold mining rights in Ghana. This MOU has expired and has been canceled.

F-7

During April 2012, the Company’s newly formed subsidiary, Serena Gold, signed a binding MOU to acquire six gold exploration licenses on approximately 1,800 acres in Northern Chile. The acquisition of the licenses is subject to the satisfactory completion of due diligence by Serena Gold Payment for the licenses was deferred for two years. After completion of the due diligence Serena Gold determined not to acquire the licenses and canceled the MOU. The Company is currently looking to acquire licenses directly from the Chilean government and plans to raise additional capital to fund any potential acquisitions for these licenses.

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As shown in the accompanying consolidated financial statements, the Company has incurred recurring losses, is dependent on debt and equity financing to fund its operations and has a stockholders’ deficiency, all of which raises substantial doubt about the Company's ability to continue as a going concern.

Management believes that the Company will continue to incur losses and negative cash flows from operating activities for the foreseeable future and will need additional equity or debt financing to sustain its operations until it can achieve profitability and positive cash flows, if ever. Management plans to seek additional debt and/or equity financing for the Company, but cannot assure that such financing will be available on acceptable terms. The Company's continuation as a going concern is dependent upon its ability to ultimately attain profitable operations, generate sufficient cash flow to meet its obligations, and obtain additional financing as may be required. The outcome of this uncertainty cannot be assured. The Company is currently dependent on its President to continue to fund the Company. If the Company is unable to acquire or develop an operating business the Company will be unable to fund itself. There is no guarantee that our President will continue to fund the Company.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

The following accounting policies have been identified as critical to the Company's business operations and the understanding of its results of operations.

Basis of Presentation

The Company’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP").

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Shelron and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated.

Use of Estimates

These consolidated financial statements and accompanying notes have been prepared in accordance with GAAP. The preparation of these consolidated financial statements requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities and expenses. The Company continually evaluates the accounting policies and estimates used to prepare the consolidated financial statements. The Company bases its estimates on historical experiences and assumptions believed to be reasonable under current facts and circumstances. Actual amounts and results could differ from these estimates made by management.

F-8

Concentration of Credit Risk

The Company maintains cash in one bank account which is fully insured by the Federal Deposit Insurance Corporation. The Company has not experienced any loss on this account.

Fair Value of Financial Instruments

The carrying amounts reported in the consolidated balance sheet for cash, accounts payable and accrued expenses, due to stockholders, note payable and convertible note payable approximate fair value based on the short-term maturity of these instruments.

Income Taxes

The Company accounts for income taxes under the provisions of FASB ASC 740, “Income Taxes.” This pronouncement requires recognition of deferred tax assets and liabilities for the estimated future tax consequences of events attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in the statement of operations in the period in which the enactment rate changes. Deferred tax assets and liabilities are reduced through the establishment of a valuation allowance at such time as, based on available evidence, it is more likely than not that the deferred tax assets will not be realized.

The Company accounts for uncertainties in income taxes under the provisions of FASB ASC 740-10-05, “Accounting for Uncertainties in Income Taxes” The ASC clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The ASC prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The ASC provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

Loss per share

Basic loss per share is computed by dividing net loss by the weighted-average number of shares of Common Stock outstanding during the period. Diluted loss per share give effect to dilutive convertible securities, options, warrants and other potential Common Stock outstanding during the period, only in periods in which such effect is dilutive. The following securities have been excluded from the calculation of net loss per share, as their effect would be antidilutive:

	2012		2011

Series A convertible preferred stock		1,000,000		1,000,000
Convertible note payable		20,212,223		19,859,687

Recently Issued Accounting Standards

Effective January 1, 2012, the Company adopted ASU 2011-04 (ASU 2011-04), “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (ASU 2011-04).” ASU 2011-04 clarifies application of fair value measurement and disclosure requirements and was effective for annual periods beginning after December 15, 2011. The adoption of ASU 2011-04 did not have a material effect on the Company’s financial position, results of operations or cash flows.

F-9

Recently Issued Accounting Standards (continued)

On July 18, 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”). ASU 2013-11 is expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The amendments in this update should be applied prospectively for annual and interim periods beginning after December 15, 2013. The Company is currently evaluating the impact of its pending adoption of ASU 2013-11 on its consolidated financial statements.

Management does not believe that any recently issued but not yet effective accounting standard, if currently adopted, would have a material effect on the accompanying financial statements

Subsequent Events

The Company has evaluated subsequent events through the date of the filing.

NOTE 3 – STOCK SUBSCRIPTION RECEIVABLE

During the year ended December 31, 2012, the Company issued 1,600,000 shares to an investor for a sum of $40,000 or $0.025 a share. To date, the investor paid $32,000 for these shares and owes the Company $8,000 as of December 31, 2012. The Company recorded the amount receivable from this investor as a stock subscription receivable in the consolidated balance sheet.

NOTE 4 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following at December 31, 2012 and 2011:

	2012		2011

Accrued expenses	$	106,790	$	100,439
Interest payable		2,360		1,940

Total	$	109,150	$	102,379

Accrued expenses consist primarily of expenses for legal and accounting services. Interest payable is interest on the convertible note payable (see Note 5).

F-10

NOTE 5 - DUE TO STOCKHOLDERS AND RELATED PARTIES

Hull Services, Inc. ("Hull")

The Company is controlled by Hull, a company wholly-owned by Eliron Yaron, the Company's Principal Executive Officer/Principal Financial and Accounting Officer. In March 2005, the Company entered into a consulting agreement with Hull. Pursuant to the terms of the agreement, Hull receives consulting fees totaling $156,000 per annum in installments of $3,000 per week. Due to stockholder represents accrued but unpaid consulting as well as other loans payable made by Hull.

For each of the years ended December 31, 2012 and 2011, consulting services totaled $156,000. Such amounts are reflected in the consolidated statements of operations as employment compensation. At December 31, 2012 and December 31, 2011, the Company owed Hull $492,040 and $361,464, respectively.

Liability for Common Stock to be issued to officer

The Company has received proceeds for shares of Common Stock to be issued to Mr. Yaron. As the shares were not issued as of December 31, 2012 and 2011, the proceeds were not included in stockholders’ deficiency but classified as a liability for common stock to be issued to officer. The liability totaled $205,740 as of December 31, 2012 and 2011.

NOTE 6 – CONVERTIBLE NOTE PAYABLE

On October 2, 2008, the Company received proceeds of $50,000 for an unsecured convertible note payable issued for working capital purposes. The note bears interest at 6% per annum and matured on April 18, 2009. The note holder had the option to convert the note and related accrued interest into share of the Company’s Common Stock at equal or lower of (a) 20% below the average of the closing price of the Common Stock for the five trading days prior to the date of the agreement and (b) the average closing price of the Common Stock for the five trading days prior to the date of the conversion notice.

As of the maturity date, the Company did not make any payments in respect of the amounts due. The non-payment of this amount constituted an Event of Default under the transaction document. On June 20, 2011, the Company and the note holder entered into an agreement whereby the maturity of the note was extended until December 31, 2011 and the total amount due to the note holder was $62,210 including $12,210 of accrued interest. In addition, in consideration for the waiver of the Event of Default, the Company agreed to reduce the price at which the note holder may convert the principal amount of the loan and interest accrued thereon (or any portion hereof) into shares of the Company’s common stock at $0.001 per share. During 2011, the note holder converted $42,972 of the convertible note payable and accrued interest into 54,900,000 shares of the Company’s stock. As of December 31, 2012, the Company is in default with respect to the remaining outstanding principal on the note of $7,028 plus the accrued interest thereon which is recorded as interest expense on the statement of operations.

The Company accounted for the modification of the convertible note payable as an extinguishment of debt in accordance with FASB ASC 470-50-40 “Accounting for Modifications and Extinguishments in Debt” The Company deemed the terms of the note modification to be substantially different due to the change in the conversion rate and treated the Convertible Promissory Note as extinguished and exchanged for a new note. The Company determined that there was no gain or loss on the extinguishment.

NOTE 7 – NOTE PAYABLE

The Company received proceeds of $15,000 for an unsecured note payable issued for working capital purposes. There is no interest on this note and the note matured on May 17, 2012. As of December 31, 2012, the Company is in default with respect to the outstanding principal on the note.

F-11

NOTE 8 – DEPOSIT ON SOFTWARE LICENSE

On May 25, 2011, the Company entered into an exclusive perpetual worldwide software license. The Company will utilize the software to create an affiliate network for online websites. The Company agreed to pay $900,000 for such license in cash or in shares of the Company based the average share price on the preceding 30 days before payment. Such payment is scheduled to be made on or about August 2015 and only if the Company achieves $1,250,000 in aggregate revenues from the use of the software prior to the payment date. If the aggregate revenues are below $1,250,000, the Company has a right to terminate the license agreement with no penalty or payment required. The Company is waiting for the completion of certain features of the software and is currently evaluating the existing technical aspects of the software.

NOTE 9 – STOCK COMPENSATION EXPENSE

The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with ASC Topic 505, “Equity.” Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of a performance commitment or completion of performance by the provider of goods or services as defined by ASC Topic 505.

On July 1, 2011, the Company entered into a three-month agreement with a service provider to provide marketing, business development and consulting services. In consideration of the services provided, the Company agreed to issue 6,000,000 shares of the Company’s Common Stock valued at $24,000 or $0.004 per share. On November 14, 2011, the Company issued 3,000,000 of the shares and on October 9, 2012, the Company issued the remaining 3,000,000 of the shares to the service provider. As of December 31, 2012 and 2011, there was $0 and $12,000, respectively, classified as common stock to be issued for the remaining shares to be issued.

On January 1, 2012, the Company entered into a four-month agreement with a service provider to provide marketing, business development and consulting services. In consideration of the services provided, the Company agreed to issue 1,000,000 shares of the Company’s Common Stock valued at $10,000 or $0.01 per share. On September 18, 2012, the Company issued these shares to the service provider.

On January 1, 2012, the Company entered into a one-year agreement with a service provider to provide marketing, business development and consulting services. In consideration of the services provided, the Company agreed to issue 1,500,000 shares of the Company’s Common Stock valued at $15,000 or $0.01 per share. On September 18, 2012, the Company issued these shares to the service provider.

Stock based compensation amounted to $25,000 and $24,000 for the years ended December 31, 2012 and 2011, respectively, and is included in consulting fees on the consolidated statements of operations.

NOTE 10 - STOCKHOLDERS' DEFICIENCY

Convertible Preferred Stock

On November 8, 2001, the Company filed a Certificate of Designation with the State of Delaware authorizing the issuance of one series of Preferred Stock (the "Series A Preferred Stock") consisting of 1,000,000 shares. All 1,000,000 shares of Series A Preferred Stock were issued to Hull. The holder of the Series A Preferred Stock is entitled to vote along with the holders of Common Stock as one class on all matters for which the Stockholders of the Company shall vote. The holder of Series A Preferred Stock is entitled to a vote representing 52% of the total shares entitled to vote by all holders of the then outstanding shares of Common Stock and Series A Preferred Stock combined. Each share of the Series A Preferred Stock is convertible at the option of the holder into one share of Common Stock upon not less than 15 days and not more than 30 days’ notice to the Company. In addition, if all or substantially all of the Company's assets or all of the outstanding shares of the Company are sold, the shares of Series A Preferred Stock automatically convert to Common Stock. The Series A Preferred Stock has a liquidation preference of $0.001 per share.

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Issuances of Common Stock

During the year ended December 31, 2012, the Company issued a total of 8,800,000 shares of common stock valued at $116,999 of which 3,300,000 common shares with a total value of $79,999 was issued for various cash investments in the Company and 5,500,000 common shares with a total value of $37,000 was issued for various services performed for the Company.

On December 14, 2012, the Company entered into an agreement with an investor to purchase 1,000,000 common shares for $10,000. As of July 8, 2014, these shares have not been issued and this is recorded as common stock to be issued on the consolidated balance sheet.

During the year ended December 31, 2011, the Company issued a total of 310,400,000 shares of common stock valued at $341,900 of which 250,000,000 common shares with a total value of $250,000 were issued as partial payment of the debt to Hull, 54,900,000 common shares with a total value of $54,900 were issued for the conversion of the Note Payable, 2,500,000 common shares with a total value of $25,000 was issued for various cash investments in the Company and 3,000,000 with a total value of $12,000 was issued for various services performed for the Company.

NOTE 11 - INCOME TAXES

There was no provision for federal income taxes for the years ended December 31, 2012 and 2011.

At December 31, 2012, the Company had available approximately $6.3 million of net operating loss carry forwards for federal income tax purposes which expire in the fiscal years 2021 through 2031. In addition, the Company has available approximately $511,000 of capital loss carry forwards that expire in fiscal year 2014.

Significant components of the Company’s deferred tax assets at December 31, 2012 and 2011 are as follows:

	2012			2011

Net operating loss carryforwards	$	2,192,970		$	2,137,293
Capital loss carryforwards		173,582			173,582
Stock based compensation		154,580			46,308
Intangible assets		6,120			4,760

Total deferred tax assets		2,527,252			2,361,943
Valuation allowance		(2,527,252	)		(2,361,943	)

Net deferred tax assets	$	—		$	—

A valuation allowance has been established equal to the full amount of the deferred tax assets as the Company is not assured at December 31, 2012 and 2011 that it is more than likely than not that these benefits will be realized.

The change in valuation allowance for the years ended December 31, 2012 was an increase of approximately $165,000. The increase in the valuation allowance was the result of increases in the above stated items.

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At December 31, 2012 and 2011, the Company had no material unrecognized tax benefits and no adjustments to liabilities or operations were required. The Company does not expect that its unrecognized tax benefits will materially increase within the next twelve months. We recognize interest and penalties related to uncertain tax positions in general and administrative expense. As of December 31, 2012 and 2011, we have not recorded any provisions for accrued interest and penalties related to uncertain tax positions.

The Company files federal income tax returns subject to statutes of limitations. The 2009 through 2012 tax years generally remain subject to examination by federal tax authorities

NOTE 12 - COMMITMENT

We maintain an office at 39 Broadway, New York, New York. No rent is charged for this space.

NOTE 13 – SUBSEQUENT EVENTS

During the year ended December 31, 2013 and the period from January 1, 2014 to July 8, 2014, the Company raised additional capital and issued 7,775,000 and 4,485,000 common shares, respectively. The money raised is being used to assist the Company to achieve its strategy with respect to its search for potential acquisitions in the mining and energy sectors.

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SHELRON GROUP INC 10-K