UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 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~~September 3130, ~~2013~~ 2014

orOr

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

For the transition period from ______________ to ______________

Commission file number: 333-184682

AVANGARD CAPITAL GROUP INC.

(Exact name of registrant as specified in its charter)

Nevada		45-5507359
(State or other jurisdiction of incorporation)		(IRS Employer Identification No.)
(State or other jurisdiction		(IRS Employer
of incorporation)		Identification No.)
2708 Commerce Way Suite 300, Philadelphia PA		19154
(Address of principal executive offices)		(Zip Code)

2708 Commerce Way Suite 300, Philadelphia PA		19154
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (215) 464-7300

Not Applicable.

(Former name or former address, if changed since last report)

Registrant’s telephone number, including area code: (954) 363-7333 Not Applicable. (Former name or former address, if changed since last report)

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 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 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). Yes [X] No [ ]

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

Large accelerated filer	[ ]	Accelerated filer	[ ]

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

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

As of ~~February~~November 614, 2014 there were 10,~~134~~781,~~664~~466 shares issued and outstanding of Registrant’s Common Stock.

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION
Item 1	Financial Statements (unaudited)	F-1
	Condensed Balance Sheets as of December 31, 2013 and June 30, 2013 (Unaudited)	F-1
	Condensed Balance Sheets as of September 30, 2014 (unaudited) and June 30, 2014	F-1
	Condensed Statements of Operations for the Three and Six months Ended December 31, 2013 and 2012 (Unaudited)	F-2
	Condensed Statements of Operations for the Three months Ended September 30, 2014 and 2013 (unaudited)	F-2
	Condensed Statements of Comprehensive Loss for the Three and Six months Ended December 31, 2013 and 2012 (Unaudited)	F-3
	Condensed Statements of Comprehensive Loss for the Three months Ended September 30, 2014 and 2013 (unaudited)	F-3
	Condensed Statements of Cash Flows for the Six months Ended December 31, 2013 and 2012 (Unaudited)	F-4
	Condensed Statements of Cash Flows for the Three months Ended September 30, 2014 and 2013 (unaudited)	F-4
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3
Item 3	Quantitative and Qualitative Disclosures About Market Risk	5
Item 4	Controls and Procedures	5
PART II - OTHER INFORMATION
Item 1	Legal Proceedings	6
Item 1A	Risk Factors	6
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	6
Item 3	Defaults Upon Senior Securities	6
Item 4	Mine Safety Disclosures	6
Item 5	Other Information	6
Item 6	Exhibits	6
Signatures		7

PART 1 –- FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AVANGARD CAPITAL GROUP, INC.

CONDENSED BALANCE SHEETS

(unaudited)

	December 31, 2013			June 30, 2013
	September 30, 2014			June 30, 2014
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	545,564		$	164,049
Cash	$	385,478		$	424,272
Marketable securities		-			378,203
Floor plan financing receivable, net		196,963			196,259
Floor plan financing receivable		229,250			252,220
Allowance for uncollectible account		(115,000	)		(115,000	)
Used car auto finance receivables		10,447			48,868
Due from related party		-			7,000
Fees receivable		9,433			11,218
Total current assets		467,441			512,531
Interest receivable		7,912			9,807
Property and equipment, net		3,198			3,331
Related party receivable		27,272			-
Total assets	$	470,639		$	515,862
Other current assets		-			2,980
Total current assets		829,878			867,345
Property and equipment, net		3,597			3,863
Total assets	$	833,475		$	871,208
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	~~3,707~~-		$	23,~~994~~176
Total current liabilities		3,707			2,994
Other liabilities		21,000			21,000
Total current liabilities	$	21,000		$	24,176
Stockholders’ equity:
Convertible Preferred Stock Series A, $0.0001 par value, 300,000,000 authorized, 905,000 issued and outstanding		90			90
Convertible Preferred Stock Series A, $0.0001 par value, 300,000,000 authorized, 905,000 issued and outstanding;		90			90
Common stock, $0.0001 par value, 1,000,000,000 authorized; Class A, 10,134,664 shares issued and outstanding		1,013			1,013
Common stock, $0.0001 par value, 100,000,000 authorized; Class A, 10,781,466 and 1,013,466 shares issued and outstanding, respectively		1,078			101
Additional paid in capital		1,~~106~~107,~~893~~805			1,~~106~~107,~~893~~805
Stock subscription receivable		-(977	)		~~(135,996~~-	)
Accumulated other comprehensive income		-			24,225
Accumulated (deficit) earnings		(658,357	)		(616,310	)
Accumulated deficit		(278,228	)		(128,011	)
Total stockholders’ equity		449,639			491,686
Total stockholders’ equity		829,768			868,214
Total liabilities and stockholders’ equity	$	470,639		$	515,862
Total liabilities and stockholders’ equity	$	833,475		$	871,208

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

F-1

AVANGARD CAPITAL GROUP, INC.

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

	For the Three Months Ended December 31,						For the Six Months Ended December 31,
	For the Three Months Ended September 30,
	2013			2012			2013			2012
	2014			2013
REVENUE
Fee revenue	$	~~11,067~~-		$	714,~~901~~491		$	~~25,558~~		$	~~16,546~~
Interest revenue		~~11,576~~-			712,~~711~~358			~~23,934~~			~~15,267~~
Total revenue		~~22,643~~-			1526,~~612~~849			~~49,492~~			~~31,813~~
OPERATING EXPENSES
Selling, general and administrative		~~114~~42,~~858~~089			41148,~~328~~295			~~263,153~~			~~68,234~~
Total operating expenses		~~114~~42,~~858~~089			41148,~~328~~295			~~263,153~~			~~68,234~~
Loss from operations		(92,215	)		(25,716	)		(213,661	)		(36,421	)
(Loss) from operations		(42,089	)		(121,446	)
Other income
Gain on sale of marketable securities (includes $12,079 accumulated other comprehensive income reclassifications for unrealized net gains)		53,242			-			58,091			-
Realized gain on marketable securities		-			4,849
Interest and dividend income		~~2,743~~12			-2,610			~~5,353~~			-
Total other income		~~55,985~~12			-7,459			~~63,444~~			-
Net loss	$	(3642,~~230~~047	)	$	(25113,~~716~~987	)	$	~~(150,217~~	)	$	~~(36,421~~	)
Net loss per share attributable to common shareholders - basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)
Net (loss) income per share attributable to common shareholders - basic and diluted		(0.00	)		(0.12	)
Weighted average number of common shares used in computation - basic and diluted		109,~~134~~719,~~664~~727			101,~~000~~013,~~000~~466			~~10,134,664~~			~~10,000,000~~

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

F-2

AVANGARD CAPITAL GROUP, INC.

CONDENSED ~~STATEMENTS~~ STATEMENTS OF COMPREHENSIVE LOSS

(unaudited)

	For the Three Months Ended December 31,						For the Six Months Ended December 31,
	For the Three Months Ended September 30,
	2013			2012			2013			2012
	2014			2013
Net loss	$	(36,230	)	$	(25,716	)	$	(150,217	)	$	(36,421	)
Net (loss)	$	(42,047	)	$	(113,987	)
Other comprehensive income					-
Net change in unrealized gain on marketable securities		(36,304	)		-			(24,225	)		-
Unrealized gain on marketable securities		-			12,079
Total comprehensive loss	$	(72,534	)	$	(25,716	)	$	(174,442	)	$	(36,421	)
Total comprehensive (loss)	$	(42,047	)	$	(101,908	)

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

F-3

AVANGARD CAPITAL GROUP, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(unaudited)

	For the Six Months Ended December 31,
	For the Three Months Ended September 30,
	2013			2012
	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(150,217	)	$	(36,421	)
Net (loss)	$	(42,047	)	$	(113,987	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		~~266~~133			-133
Gain on sale of marketable securities		(58,091	)		-
Gain on sale of marketable receivables					(4,849	)
Changes in operating assets and liabilities:
Floor plan financing receivable		~~22,970~~(704	)		936,~~790~~020
Used car auto financing portfolio		38,421			-
Collections from the used car auto financing portfolio		-			25,980
Fees receivable		~~1,785~~-			(21,~~500~~653	)
Interest receivable		~~1,895~~-			(1,~~685~~738	)
Related party receivable		(27,272	)		-
Other assets		-			480
Other assets		2,980			-
Due from related party		7,000			(26,460	)
Accounts payable and accrued expenses		~~713~~(3,176	)		945,~~600~~101
Unearned revenue		-			1,020
NET CASH USED IN OPERATING ACTIVITIES		(38,794	)		(34,191	)
NET CASH USED IN OPERATING ACTIVITIES		(166,550	)		(20,196	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of marketable securities		~~(34,369~~-	)		-(1,136	)
Sales of marketable securities		446,438			-
NET CASH USED IN INVESTING ACTIVITIES		-			(1,136	)
NET CASH PROVIDED BY INVESTING ACTIVITIES		412,069			-
CASH FLOWS FROM FINANCING ACTIVITIES
Stock subscription received		135,996			744,451
Common stock subscription received		-			135,996
NET CASH PROVIDED BY FINANCING ACTIVITIES		~~135,996~~-			~~744~~135,~~451~~996
Net increase in cash		~~381~~(38,~~515~~794	)		~~724~~100,~~255~~669
Cash and cash equivalents beginning of the period		164,049			20,696
Cash, beginning of the period		424,272			164,049
Cash and cash equivalents at end of the period	$	545,564		$	744,951
Cash, at end of the period	$	385,478		$	264,718
Supplemental Schedule of non-cash activities
Unrealized gain on marketable securities		-		$	12,079

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

F-4

AVANGARD CAPITAL GROUP, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

~~December 31~~September 30, ~~2013~~2014

NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization ~~and~~ and Description of Business Avangard Capital Group, Inc., a Nevada corporation is referred to in this report as “we”, “us”, “our”, “ACG”, the “Company” or “Avangard Capital Group.”

~~Avangard~~We were incorporated ~~Capital~~June ~~Group~~13, ~~Inc.,~~2012 aunder ~~Nevada~~the ~~corporation~~laws isof ~~referred~~the toState inof ~~this~~Nevada. ~~report~~Our asexecutive ~~“we”,~~offices ~~“us”,~~are ~~“our”, “ACG”,~~located ~~the~~at ~~“Company”~~2708 orCommerce ~~“Avangard~~Way, ~~Capital~~Suite ~~Group~~300, Philadelphia, PA 19154.”

We are an independent ~~were~~auto ~~incorporated~~sales finance company that provides floor plan financing for independent used car dealers based on the value of collateral (the car) as determined by us using the automobile industry’s nationally-recognized valuation sources. We maintain licenses to operate in New Jersey. We commenced business June 1322, 2012 ~~under~~with the ~~laws~~purchase of ~~the~~all ~~State~~floor ofplan ~~Nevada~~receivables from Avangard Auto Finance, Inc. ~~Our~~(“AAF”), ~~executive~~an ~~offices~~affiliate. ~~are~~Pursuant ~~located~~to atan ~~2708~~Assignment ~~Commerce~~Agreement ~~Way~~with AAF dated June 13, ~~Suite~~ ~~300~~2012, ~~Philadelphia~~we acquired AAF’s floor plan financing portfolio for $151,979, PAthe ~~19154~~face value of the contracts plus accrued interest and fees at that time.

~~We are~~In anJanuary ~~independent~~2013 ~~auto~~we ~~sales~~received approval ~~finance~~and ~~company~~were ~~that~~licensed ~~provides~~by ~~floor plan financing for independent used car dealers based on~~ the ~~value~~ States of ~~collateral~~Florida ~~(the~~and ~~car)~~New Jersey as ~~determined~~a bySales usFinance ~~using~~Company. ~~the~~In ~~automobile~~February ~~industry’s~~2013, ~~nationally-recognized~~we ~~valuation~~were ~~sources.~~licensed ~~We operate~~ in the ~~states~~Commonwealth of ~~New~~Pennsylvania ~~Jersey,~~as ~~Pennsylvania~~a ~~and~~Sales ~~Florida~~Finance Company. WeThese ~~commenced~~licenses ~~business~~permit ~~June~~us ~~22,~~to ~~2012~~expand ~~with~~our ~~the~~operations ~~purchase~~to ~~of all~~providing ~~floor~~financing ~~plan~~for ~~receivables~~auto ~~from~~sales ~~Avangard~~by ~~Auto~~dealers. ~~Finance,~~We ~~Inc.~~have ~~(“AAF”),~~not ancommenced ~~affiliate.~~operations ~~Pursuant~~in toFlorida anor ~~Assignment~~New ~~Agreement with~~Jersey ~~AAF~~as ~~dated~~we ~~June~~are ~~13,~~evaluating ~~2012,~~the wefeasibility of ~~acquired~~expanding ~~AAF’s~~into ~~floor~~these ~~plan~~markets ~~financing~~and ~~portfolio~~our ~~for~~existing ~~$151~~market. In addition,~~979,~~ ~~the~~we ~~face~~have ~~value~~suspended offinancing ~~the~~new ~~contracts plus~~loans ~~accrued~~as ~~interest~~we ~~and~~explore ~~fees~~alternative opportunities atfor ~~that~~our ~~time~~future growth.

~~In January~~On March 26, 2013 we acquired ~~received~~certain ~~approval~~retail ~~and~~installment ~~were~~contract ~~licensed~~receivables byfrom ~~the~~AAF ~~States of Florida~~ and ~~New~~Avangard ~~Jersey~~Financial asGroup, Inc., a ~~Sales~~related ~~Finance~~party ~~Company. In February~~(“AFG”) ~~2013~~for $102,250. weThe ~~were~~receivables ~~licensed~~consisted ~~in the Commonwealth~~ of ~~Pennsylvania~~an asaggregate aprincipal ~~Sales~~balance ~~Finance~~of ~~Company.~~approximately ~~These~~$141,868 ~~licenses~~for ~~permit~~current usloans ~~to expand our~~receivables ~~operations~~and toapproximately ~~providing~~$323,449 ~~financing~~ for ~~auto~~non-current ~~sales~~loans ~~by dealers~~receivables.

~~On March~~Interim ~~26, 2013 we acquired certain retail installment contract receivables from AAF and Avangard~~ Financial Group, Inc., a related party (“AFG”) for $102,250. The receivables consisted of an aggregate principal balance of approximately $141,868 for current loans receivables and approximately $323,449 for non-current loans receivables.Statements

~~Interim~~The accompanying unaudited ~~Financial~~condensed ~~Statements~~financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conformity with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures included in these financial statements are adequate to make the information presented not misleading. The unaudited condensed financial statements included in this document have been prepared on the same basis as the annual financial statements, and in our opinion reflect all adjustments, which include normal recurring adjustments necessary for a fair presentation in accordance with GAAP and SEC regulations for interim financial statements. The results for the three months ended September 30, 2014 are not necessarily indicative of the results expected for the full year or for any subsequent interim periods. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and the notes to those statements included in our Annual Report on Form 10-K for the period ended June 30, 2014 filed with the SEC on September 30, 2014.

~~The accompanying~~Use ~~unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States~~ of America (“GAAP”) and in conformity with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures included in these financial statements are adequate to make the information presented not misleading. The unaudited condensed financial statements included in this document have been prepared on the same basis as the annual financial statements, and in our opinion reflect all adjustments, which include normal recurring adjustments necessary for a fair presentation in accordance with GAAP and SEC regulations for interim financial statements. The results for the three and six months ended December 31, 2013 are not necessarily indicative of the results expected for the full year or for any subsequent interim periods. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and the notes to those statements included in our Annual Report on Form 10-K for the period ended June 30, 2013 filed on September 30, 2013.Estimates

~~Use~~We use estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of ~~Estimates~~assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.

~~We use~~Cash ~~estimates~~ and ~~assumptions~~Cash in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.Equivalents

Cash and ~~Cash~~cash ~~Equivalents~~equivalents include highly liquid investments with an original maturity of three month or less when purchased.

~~Cash~~Revenue ~~and cash equivalents include highly liquid investments with an original maturity of three month or less when purchased.~~Recognition

~~Fair~~Interest income from ~~Value~~floor plan financing receivable is recognized using the interest method. Accrual of ~~Financial~~income ~~Instruments~~on finance receivables is suspended when a contract is contractually delinquent for ninety (90) days or more. The accrual is resumed when the contract becomes contractually current and past due interest is recognized at that time.

~~The fair~~Origination ~~value~~Fees ~~of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction~~are ~~between~~recognized ~~willing~~for ~~parties,~~services ~~other~~provided ~~than~~during ~~a forced sale or liquidation. Significant differences can arise between~~ the ~~fair~~loan ~~value~~origination ~~and carrying~~process ~~amount of financial instruments that are recognized~~ at ~~historical cost amounts. The carrying value of cash, floor plan financing receivable, and accounts payable approximate~~ the ~~fair~~point ~~value~~in ~~because~~time of the ~~short~~loan ~~maturity~~is ~~of those instruments~~funded.

The Company accounts ~~accounting~~for ~~standards~~its ~~regarding~~investment ~~fair~~in ~~value~~floor ofplan ~~financial~~financing ~~instruments~~receivables ~~and~~using ~~related~~the ~~fair~~interest ~~value~~method, ~~measurements~~under ~~define~~ASC ~~fair~~310 ~~value,~~pools ~~establish~~of accounts are established abased ~~three-level~~on ~~valuation~~certain ~~hierarchy~~common ~~for~~risk ~~disclosures~~criteria. ofEach ~~fair~~pool ~~value~~is ~~measurement,~~recorded at cost and ~~enhance~~is ~~disclosure~~accounted ~~requirements~~for as a single unit for ~~fair~~the ~~value~~recognition ~~measures~~of income, principal payments and loss provision.

F-5

~~AVANGARD~~The Company accounts ~~CAPITAL~~for ~~GROUP~~its investment in retail installment contract receivables it acquired on March 26, ~~INC~~2013 using the cost recovery method as the Company’s collections on this particular pool of accounts cannot be reasonably predicted. Under the cost recovery method, no income is recognized until the cost of the retail installment contract receivables portfolio has been fully recovered. This pool of accounts can become fully amortized (zero carrying balance on the balance sheet) while still generating cash collections. In this case, all cash collections are recognized as revenue when received.

~~NOTES TO~~Floor ~~CONDENSED~~Plan ~~FINANCIAL~~Financing ~~STATEMENTS~~Receivable

~~December~~Floor plan financing 31receivable consists of purchased automobiles, ~~2013~~which were assigned to us upon acquisition. The titles to the automobiles, which serve as security for the payment of the purchased contracts, are held by us.

~~The~~Floor plan financing ~~three~~receivable ~~levels~~that we intend and have the ability to hold for the foreseeable future, or until maturities of payoff are ~~defined~~reported at astheir ~~follows:~~outstanding gross contractual balances, net of allowance for losses and unearned finance revenue. Unearned finance revenue consists of unearned interest and discounts realized on contract purchases.

	Level 1:		inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
	Level 2:		inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
	Level 3:		inputs to the valuation methodology are unobservable and significant to the fair value measurement.

We perform periodic evaluations of the adequacy of the allowance for losses taking into consideration the past loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, as well as recovery potential of any underlying collateral, personal guarantees and current economic conditions. Any increases in the allowance for losses subsequent to the acquisition of the contract are charged to earnings.

~~Marketable~~Our primary floor plan ~~securities~~customer ~~were~~defaulted ~~measured~~on attheir ~~fair~~agreement ~~value~~in ~~using~~February ~~Level~~2014. 1The ~~inputs~~floor ~~derived~~plan ~~from~~agreement ~~quoted~~carried ~~prices~~personal guarantees and confessions of judgment, in ~~active~~addition ~~markets~~to first lien on all vehicles subject to the floor plan agreement. In ~~December~~March ~~2013~~2014, the customer filed for ~~company~~bankruptcy ~~converted~~protection ~~100%~~under Chapter 11 of ~~their~~the ~~Marketable~~Federal ~~Securities~~Bankruptcy Code. We repossessed 9 of the 21 vehicles subject to ~~cash~~the ~~and~~floor plan ~~cash~~agreement ~~equivalents~~from the debtor prior to its Chapter 11 filing. Additionally, there is a question of the legality of the debtor’s sale of four (4) vehicles which were subject to financing. Since we are unable to determine the exact amount of ultimate losses, on March 31, 2014 we provided a reserve for uncollectible receivables of $115,000. As of June 30, 2013 no provision for losses had been made.

~~Marketable Securities~~Stock-based Compensation

~~Our marketable~~We ~~equity~~account ~~securities are classified and accounted~~ for ~~as available~~stock-~~for-sale~~based compensation ~~and~~by ~~reported~~applying ata fair -value.-based ~~Unrealized~~measurement ~~gains and~~method ~~losses related~~ to ~~changes~~account infor ~~the~~share-based ~~fair~~payment ~~value~~transactions ofwith ~~securities are recognized in accumulated other comprehensive income, net of~~employees ~~tax~~and ~~in our balance sheets~~directors. ~~Changes in the fair value of available~~Stock-~~for~~based ~~sale~~compensation ~~securities~~is ~~impact~~a ~~our net income only when such securities are sold or other~~non-~~than-temporary~~cash ~~impairment~~expense isbecause ~~recognized.~~we ~~Realized~~settle ~~gains~~these ~~and~~obligations ~~losses on the sale of securities are determined~~ by ~~specific~~issuing ~~identification~~shares of ~~each~~our ~~security’s cost basis. Management determines the appropriate classification of its investments~~common atstock ~~the~~instead ~~time~~ of ~~purchase~~settling ~~and~~such ~~re-evaluates~~obligations ~~the~~with ~~available-for-sale~~cash ~~designations as of each balance sheet date~~payments.

~~Revenue Recognition~~Comprehensive Income

~~Interest~~ Comprehensive income consists ~~from~~of ~~floor~~two ~~plan~~components, ~~financing~~net ~~receivable~~income isand ~~recognized~~other ~~using~~comprehensive ~~the interest method~~income. ~~Accrual~~Other ofcomprehensive income onrefers ~~finance~~to ~~receivable~~revenue, isexpenses, ~~suspended~~gains, ~~when~~and alosses ~~contract~~that isunder ~~contractually~~GAAP ~~delinquent~~are ~~for~~recorded ~~ninety~~as ~~days~~an orelement ~~more.~~of ~~The~~shareholders’ ~~accrual~~equity isbut ~~resumed~~are ~~when~~excluded ~~the~~from ~~contract~~net ~~becomes~~income. Other ~~contractually~~comprehensive ~~current~~income ~~and~~consists ~~past~~of ~~due~~unrealized ~~interest~~gains ison ~~recognized~~marketable atsecurities ~~that~~categorized ~~time~~as available-for-sale.

~~Origination Fees~~Concentrations ~~are~~of ~~recognized~~Credit ~~for services provided during the loan origination process at the point in time the loan is funded.~~Risk

The Company’s ~~accounts for its investment in floor plan financing receivables using the interest method, under ASC 310 pools of accounts~~assets ~~are~~exposed ~~established~~to ~~based~~credit ~~on certain common~~ risk ~~criteria.~~are ~~Each~~cash ~~pool is recorded at cost~~ and isfinance ~~accounted for as a single unit for the recognition of income, principal payments~~ and ~~loss~~interest ~~provision~~receivables.

The ~~Company~~ ~~accounts for its investment in retail installment contract receivables it acquired on March 26, 2013 using the cost recovery method as the~~ Company’s ~~collections on this particular pool of accounts cannot be reasonably predicted. Under the cost recovery~~maintains ~~method,~~its nocash ~~income~~balances isin ~~recognized~~Federal ~~until~~Deposit ~~the~~Insurance ~~cost~~Corporation ~~of the retail installment contract receivables portfolio has been fully recovered. This pool of accounts can become fully amortized~~ (~~zero carrying balance on the balance sheet~~“FDIC”) ~~while~~insured ~~still~~financial ~~generating cash collections~~institutions. In ~~this~~At ~~case~~times, ~~all~~ cash balances ~~collections~~may ~~are~~exceed ~~recognized~~the asmaximum ~~revenue~~insurance ~~when~~offered ~~received~~by FDIC.

~~Floor Plan~~Property ~~Financing~~and ~~Receivable~~Equipment

~~Floor plan~~Fixed ~~financing~~assets ~~receivable~~are ~~consists~~recorded at oftheir ~~purchased~~historical ~~automobiles,~~cost ~~which~~upon ~~were~~acquisition ~~assigned~~or tocost usof ~~upon acquisition~~construction. The ~~titles~~assets toare depreciated using the ~~automobiles,~~straight line method over ~~which~~their ~~serve~~statutory aslives. ~~security~~The ~~for~~fixed ~~the~~asset ~~payment~~categories ofand ~~the~~their ~~purchased~~estimated ~~contracts,~~lives are ~~held~~as ~~by us.~~follows:

~~Floor plan~~Office ~~financing~~Equipment ~~receivable~~5 that we intend and have the ability to hold for the foreseeable future, or until maturities of payoff are reported at their outstanding gross contractual balances, net of allowance for losses and unearned finance revenue. Unearned finance revenue consists of unearned interest and discounts realized on contract purchases.years

~~We perform~~Income periodic evaluations of the adequacy of the allowance for losses taking into consideration the past loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, as well as recovery potential of any underlying collateral, personal guarantees and current economic conditions. Any increases in the allowance for losses subsequent to the acquisition of the contract are charged to earnings. As of December 31, 2013 and June 30, 2013 no provision has been made.Taxes

FWe account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company has incurred net operating loss for financial-6reporting and tax-reporting purposes. Accordingly, for Federal and state income tax purposes, the benefit for income taxes has been offset entirely by a valuation allowance against the related federal and state deferred tax asset for the three months ended September 30, 2014.

~~AVANGARD CAPITAL GROUP, INC.~~F-6

~~NOTES TO~~NOTE ~~CONDENSED~~2 ~~FINANCIAL~~- ~~STATEMENTS~~INCOME TAXES

~~December~~The provision for income ~~31,~~taxes ~~2013~~consists of the following:

Used Car Auto Financing

	September 30, 2014			September 30, 2013
Deferred Tax Asset	$	267,000		$	98,884
Less: Valuation Allowance		(267,000	)		(98,884	)
Net Deferred Tax Assets	$	-		$	-

~~On March~~As 26of September 30, ~~2013~~2014, the weCompany ~~acquired~~has anet ~~portfolio~~operating loss carry forwards of ~~consumer~~$658,357 ~~automobile~~that ~~loans~~can ~~from~~be ~~Avangard~~utilized ~~Auto~~to ~~Finance,~~offset ~~Inc.~~future taxable income for Federal and State income tax purposes through 2024, ~~(“AAF”)~~generating a maximum deferred tax benefit of $267,000 by applying Federal and State statutory tax rates. The Company applied a 100% valuation reserve against the deferred tax benefit, as the realization of the ~~related~~benefit ~~party~~is not certain.

The ~~Company~~ isfollowing antax ~~indirect lender from a legal perspective, meaning the loan is originated by the dealer and immediately assigned~~years toremain ~~the~~subject ~~Company. Typically, the loan is purchased from the dealer. The disbursement~~ to ~~the~~examination ~~dealer~~by ~~is calculated using our guidelines as to~~ the ~~value~~respective oftax ~~the automobile~~jurisdictions. The amount advanced against the collateral is 85% of the “Black Book” liquidation value of the car. From time to time we will have automobiles in inventory as a result of repossessions due to non-payment. Our policy is to issue a repossession order after 15 days delinquency of the loan.

As of December 31, 2013, the entire Used Car Auto Financing Portfolio’s collection cannot be reasonably predicted by the Company; therefore the modified cost recovery method has been utilized to account for the pool of loans.

		Fiscal Years ending June 30,
Internal Revenue Service		2012 - 2014
Commonwealth of Pennsylvania		2012 - 2014

~~Stock~~NOTE 3 -~~based Compensation~~ COMMON AND PREFERRED STOCK

WeOn June 20, 2014 the ~~account~~Company’s ~~for~~Board ~~stock-based~~of ~~compensation~~Directors byauthorized ~~applying~~the acompletion ~~fair-value-based~~of ~~measurement~~the ~~method~~Reverse toStock ~~account~~Split ~~for~~and ~~share-based~~that ~~payment~~such ~~transactions~~Reverse Stock Split of 1 ~~with~~share ~~employees~~of ~~and~~Common ~~directors.~~Stock for 10 shares of outstanding Common Stock~~-based~~. ~~compensation~~Throughout isthis aquarterly ~~non-cash~~report ~~expense~~on ~~because~~Form we10-Q, ~~settle~~each ~~these~~instance that ~~obligations~~refers byto ~~issuing~~a number of shares of our common stock, ~~instead~~refers to the number of ~~settling~~shares ~~such~~of ~~obligations~~common ~~with~~stock ~~cash~~after ~~payments~~giving effect to the Reverse Stock Split, unless otherwise indicated.

~~Comprehensive~~As of September 30, 2014 ~~Income~~we are authorized to issue 100,000,000 shares of $0.0001 par value common stock of which, after the stock split.

~~Comprehensive income~~On ~~consists~~July of10, ~~two components~~2014, ~~net~~the Company ~~income~~agreed ~~and~~to ~~other~~issue ~~comprehensive~~to ~~income.~~Friedman ~~Other~~Financial ~~comprehensive~~Group, ~~income~~LLC, ~~refers~~a torelated ~~revenue~~party, ~~expenses~~9, ~~gains~~250,000 ~~and~~shares ~~losses~~of ~~that~~the ~~under~~Company’s ~~GAAP~~Common ~~are~~Stock in ~~recorded~~exchange asfor an$925. ~~element~~Simon ofFriedman, ~~shareholders~~the Company’s ~~equity~~CEO ~~but~~and ~~are~~Chairman ~~excluded~~of ~~from~~the ~~net~~Board, ~~income.~~has ~~Other comprehensive~~voting ~~income~~and ~~consists~~dispositive ofcontrol ~~unrealized~~over securities ~~gains~~held onby ~~marketable~~Friedman ~~securities~~Financial ~~categorized~~Group, ~~as available-for-sale~~LLC.

~~Concentrations~~On July 10, 2014, the Company agreed to issue to Jerry Kindrachuk 500,000 shares of ~~Credit~~the ~~Risk~~Company’s Common Stock in exchange for $50.

~~The~~On July 10, 2014, the Company agreed to issue to Arkady “Eric” Rayz, a member of the Company’s ~~assets~~Board ~~exposed~~of toDirectors, ~~credit~~9,000 ~~risk~~shares ~~are~~of its ~~cash~~Common ~~and~~Stock ~~finance~~in ~~and~~exchange ~~interest~~for ~~receivables~~services which were valued at $1.

~~For the~~On ~~three~~July ~~and~~10, ~~six~~2014, ~~months~~the Company ~~ended~~agreed ~~December~~to ~~31,~~issue ~~2013~~to ~~and~~Robert ~~2012~~Cornaglia, ~~one~~a ~~significant~~member ~~customer~~of ~~accounted~~the ~~for~~Company’s ~~100%~~Board of ~~total~~Directors, ~~revenue~~9,000 ~~and~~shares ~~floor~~of its Common Stock ~~plan~~in ~~financing~~exchange ~~receivable~~for services which were valued at $1.

~~The Company~~As ~~maintains~~of ~~its~~September ~~cash~~30, ~~balances in Federal Deposit Insurance Corporation (“FDIC”) insured financial institutions.~~2014 ~~At times~~10,781,466 ~~cash~~shares ~~balances~~have ~~may~~been ~~exceed~~issued ~~the~~and ~~maximum~~are ~~insurance~~outstanding, ~~offered~~designated byClass ~~FDIC~~A.

~~Property~~We are authorized to issue 300,000,000 shares of $0.0001 par value Convertible Preferred Stock Series A of which 905,000 shares have been issued and outstanding ~~Equipment~~as of September 30, 2014 and June 30, 2014.

~~Fixed assets~~Common ~~are~~Stock ~~recorded~~Purchase at their historical cost upon acquisition or cost of construction. The assets are depreciated using the straight line method over their statutory lives. The fixed asset categories and their estimated lives are as follows:Warrants

~~Office~~A summary of the status ~~Equipment 5~~of ~~years~~our outstanding common stock purchase warrants granted as of September 30, 2014 and changes during the period is as follows:

Income Taxes

	Shares		Weighted
	Underlying		Average
	Warrants		exercise price
Outstanding and exercisable at September 30, 2013		2,867	$	2.00
Additions		-		-
Outstanding and exercisable at September, 2014		2,867	$	2.00

~~We account~~The ~~for~~following ~~income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities~~information ~~for~~applies the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to ~~reverse.~~all ~~Valuation~~warrants ~~allowances are~~outstanding ~~established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company has incurred net operating loss for financial-reporting~~ and ~~tax-reporting~~exercisable ~~purposes.~~at ~~Accordingly,~~September ~~for Federal and state income tax purposes~~30, ~~the benefit for income taxes has been offset entirely by a valuation allowance against the related federal and state deferred tax asset for the six months ended December 31, 2013.~~2014

F-7

Number of Warrants
outstanding and			Remaining contractual
exercisable	Exercise Price		life (Years)
2,867	$	2.00	1.13

~~AVANGARD CAPITAL GROUP, INC.~~F-7

~~NOTES TO~~NOTE ~~CONDENSED~~4 ~~FINANCIAL~~- ~~STATEMENTS~~LOSS PER SHARE

~~December~~Basic net loss per share 31is computed by dividing net loss by the weighted average number of common shares outstanding for the period. The Company’s potential dilutive shares, ~~2013~~which include convertible preferred shares and shares issuable upon exercise of the Warrants, have not been included in the computation of diluted net loss per share as the result would be antidilutive. Such potentially dilutive shares are excluded when the effect would be to reduce net loss per share. All potential common shares have been excluded from the computation of the dilutive net loss per share for the period presented because the effect would have been antidilutive. Such potential common shares consist of the following:

NOTE 2 - MARKETABLE SECURITIES AND CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME

	September 30, 2014		September 30, 2013
Convertible preferred stock		271,500		271,500
Warrants attached to units sold		2,867		2,867

~~Marketable Securities~~NOTE 5 - RELATED PARTY TRANSACTIONS

~~Marketable~~We entered into a lease ~~equity~~agreement ~~securities~~for ~~purchased~~office ~~during~~space ~~the~~with ~~current~~Commerce ~~fiscal~~Way, ~~year~~LLC ~~were~~(“CWL”). ~~classified~~CWL is owned by DJS Investments, LLC and ~~accounted~~SELF, ~~for~~LP. asSELF, LP ~~available-for-sale~~is a shareholder of Friedman Financial Group, who is a principal shareholder of our company. AsThe lease requires monthly payments, commencing August 1, 2012, of ~~December~~$2,500 on a month to month basis. No security deposit was required. The Company terminated the lease 31with Commerce Way, ~~2013~~LLC ~~all~~and ~~marketable~~the ~~equity~~rent ~~securities~~expense ~~were~~for ~~converted~~the toquarter ~~cash~~ended September 30, 2014 and ~~cash~~2013 ~~equivalents~~was $0 and $7,500 respectively.

WeOn March 26, 2013 we ~~recognized~~entered into an Retail Installment Contract Receivable Purchase Agreement (the “Purchase Agreement”) with Avangard Auto Finance, Inc. and Avangard Financial Group, Inc. (the “Sellers”), both of whom are our affiliates. Under the terms of the Purchase Agreement, we agreed to pay the Sellers $53102,~~242~~250 (the “Purchase Price”) to purchase certain of ~~net~~their ~~realized~~retail ~~gains~~installment ~~during~~contract receivables as of the ~~quarter~~date ~~ended~~of ~~December~~the 31agreement. These amounts included an aggregate principal balance of approximately $141,868 ~~2013~~for current loans receivables (the “Current Loans”) and an aggregate principal balance of approximately $58323,~~091~~449 for non-current loans receivables (the ~~six~~“Non-Current ~~months~~Loans”). ~~ended~~The ~~December~~Sellers guaranteed to us ~~31,~~that ~~2013~~we will recover no less than 70% of the aggregate amount of the Current Loans. ~~Realized~~If ~~gains~~we onrecover less than 70% of the ~~sale~~aggregate amount of the ~~securities~~Current ~~are~~Loans, the Sellers shall pay the difference to us upon demand. On February 19, 2014 we transferred all remaining loans receivable to AAF as we determined bythat ~~specific~~the ~~identification~~outstanding balances were either uncollectible or difficult to collect and the Company did not believe that pursuing further collection efforts was a good use of ~~each~~the ~~security~~Company’s ~~cost basis~~resources.

~~Changes~~On July 10, 2014, the inBoard ~~Accumulated~~of ~~Other~~Directors ~~Comprehensive~~accepted ~~Income:~~Subscription Agreements for the purchase of 9,768,000 shares of Common Stock at par value $0.0001 per share. Friedman Financial Group, LLC, a related party and the majority shareholder, subscribed for 9,250,000 shares of Common Stock. Corporate Board Members Eric Rayz and Robert Cornaglia subscribed to 9,000 shares of Common Stock each, and Jerry Kindrachuk, a financial consultant to the Company subscribed to purchase 500,000 shares of common Stock.

~~The following~~Officers ~~table~~and ~~shows~~related parties ~~the~~of ~~accumulated~~our ~~other~~company ~~comprehensive~~provide ~~income~~certain ~~balance~~administrative asexpenses ofat ~~December~~no ~~31, 2013:~~charge.

	Unrealized Gain on Marketable Securities
Balance at June 30, 2013	$	24,225
Other comprehensive income before reclassifications		(12,146	)
Net current-period other comprehensive income		12,079
Amounts reclassified from accumulated other comprehensive income		(12,079	)
Balance at December 31, 2013	$	-

F-8

NOTE 3 - INCOME TAXES

The provision for income taxes consists of the following:

	December 31,
	2013			2012
Deferred Tax Asset	$	113,736		$	-
Less: Valuation Allowance		(113,736	)		-
Net Deferred Tax Assets	$	-		$	-

As of December 31, 2013, the Company has net operating loss carry forwards of $302,846 that can be utilized to offset future taxable income for Federal and State income tax purposes through 2024, generating a deferred tax benefit of $113,736 by applying Federal and State statutory tax rates. The Company applied a 100% valuation reserve against the deferred tax benefit as the realization of the benefit is not certain.

The following tax years remain subject to examination by the respective tax jurisdictions.

			Fiscal Years ending June 30,
Internal Revenue Service			2012 - 2013
Commonwealth of Pennsylvania			2012 - 2013

NOTE 4 - USED CAR AUTO FINANCE RECEIVABLES

Changes in used car auto finance receivables are as follows:

	Cost Recovery
Acquisition of auto financing receivables	$	102,250
Net cash collections		(91,803	)
Ending balance	$	10,447

During the six months ended December 31, 2013 management has determined that the collections of the used car auto finance receivable cannot be reasonably predicted; therefore the modified cost recovery method has been utilized to account for the pool of loans. Accordingly, there is no allowance for doubtful accounts associated with the receivable.

F-8

AVANGARD CAPITAL GROUP, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

December 31, 2013

NOTE 5 - COMMON AND PREFERRED STOCK

We are authorized to issue 1,000,000,000 shares of $0.0001 par value common stock of which 10,134,664 shares have been issued and are outstanding, designated Class A at December 31, 2013 and June 30, 2013. A total of 114,664 shares of the Company’s common stock were issued during the year ended June 30, 2013 in connection with the sale of 28,666 Units in the Offering discussed below. The Company received proceeds of $171,985 in connection with the sale of the Units of which, $135,996 was a subscription receivable at June 30, 2013 and was subsequently collected on July 5, 2013.

We are authorized to issue 300,000,000 shares of $0.0001 par value Convertible Preferred Stock Series A of which 905,000 shares have been issued and outstanding at December 31, 2013 and June 30, 2013.

Offering of Securities

On February 13, 2013, our Registration Statement on Form S-1 was declared effective by the SEC whereby we offered 5,000,000 units (the “Offering”), each unit consisting of four shares of our common stock and one redeemable common stock warrant (a “Warrant”) at a public offering price of $6.00 per unit (a “Unit”). The Warrants became exercisable and separately transferable from the shares 30 calendar days after February 13, 2013. At any time thereafter until three years following February 13, 2013, subject to earlier redemption, each Warrant entitles the holder to purchase one share of our common stock at an exercise price of $2.00 (133% of the per share price of the common stock included in the Units), subject to adjustment. The Warrants are subject to redemption for $0.0001 per Warrant upon 30 days prior written notice, provided that the last sale price of our common stock equals or exceeds $3.00 (150% of the Warrant exercise price), subject to adjustment, for 10 consecutive trading days. As of December 31, 2013, 28,666 units have been sold and no warrants have been exercised. The Offering expired on August 14, 2013.

Common Stock Purchase Warrants

A summary of the status of our outstanding common stock purchase warrants granted as of December 31, 2013 and changes during the period is as follows:

	Shares		Weighted
	Underlying		Average
	Warrants		exercise price
Outstanding and exercisable at June 30, 2013		28,666	$	2.00
Additions		-		-
Outstanding and exercisable at December 31, 2013		28,666	$	2.00

The following information applies to all warrants outstanding and exercisable at December 31, 2013

Number of Warrants
outstanding and			Remaining contractual
exercisable	Exercise Price		life (Years)
28,666	$	2.00	2.08

F-9

AVANGARD CAPITAL GROUP, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

December 31, 2013

NOTE 6 - LOSS PER SHARE

Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. The Company’s potential dilutive shares, which include convertible preferred shares and shares issuable upon exercise of the Warrants, have not been included in the computation of diluted net loss per share as the result would be antidilutive. Such potentially dilutive shares are excluded when the effect would be to reduce net loss per share. All potential common shares have been excluded from the computation of the dilutive net loss per share for the period presented because the effect would have been antidilutive. Such potential common shares consist of the following:

	December 31, 2013		December 31, 2012
Convertible preferred stock		2,715,000		2,715,000
Warrants attached to units sold		28,666		-

NOTE 7 - RELATED PARTY TRANSACTIONS

We entered into a lease agreement for office space with Commerce Way, LLC (“CWL”). CWL is owned by DJS Investments, LLC and SELF, LP. SELF, LP is a shareholder of Friedman Financial Group, who is a principal shareholder of our company. The lease requires monthly payments, commencing August 1, 2012, of $2,500 on a month to month basis. No security deposit was required. Rent expense for the quarters ended December 31, 2013 and 2012 was $7,500 and $7,500 respectively.

On March 26, 2013 we entered into an Retail Installment Contract Receivable Purchase Agreement (the “Purchase Agreement”) with Avangard Auto Finance, Inc. and Avangard Financial Group, Inc. (the “Sellers”), both of whom are our affiliates. Under the terms of the Purchase Agreement, we agreed to pay the Sellers $102,250 (the “Purchase Price”) to purchase certain of their retail installment contract receivables as of the date of the agreement. These amounts included an aggregate principal balance of approximately $141,868 for current loans receivables (the “Current Loans”) and an aggregate principal balance of approximately $323,449 for non-current loans receivables (the “Non-Current Loans”). The Sellers guaranteed to us that we will recover no less than 70% of the aggregate amount of the Current Loans. If we recover less than 70% of the aggregate amount of the Current Loans, the Sellers shall pay the difference to us upon demand. As of December 31, 2013, we collected 90% of the aggregate amount of the Purchase Price of which $27,272 is due from Avangard Auto Finance, Inc. at December 31, 2013.

Robert Cornaglia, a member of the Board of Directors, provided certain consulting services to the Company during the quarter ended December 31, 2013 for which the Company incurred expenses of $9,800

Officers and related parties of our company provide certain administrative expenses at no charge.

F-10

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Cautionary Note Regarding Forward-Looking Information and Factors That May Affect Future Results

This report contains forward-looking statements ~~within~~regarding ~~the~~our ~~meaning~~business, offinancial ~~Section~~condition, ~~27A~~results of ~~the~~operations ~~Securities Act of 1933, as amended~~ and ~~Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)~~prospects. The Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand a company’s future prospects and make informed investment decisions. This Quarterly Report on Form 10-Q and other written and oral statements that we make from time to time contain such forward-looking statements that set out anticipated results based on management’s plans and assumptions regarding future events or performance. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance or results of current and anticipated sales efforts, expenses, the outcome of contingencies, such as legal proceedings, and financial results. A list of factors that could cause our actual results of operations and financial condition to differ materially is set forth below, and these factors are discussed in greater detail under the “Risk Factors” section of our Annual Report on Form 10-K as filed with the SEC on September 30, ~~2013~~2014:

●	Our limited operating history and ability to achieve profitability.

●	Our ability to assure that related party transactions are fair to our company.

●	Our ability to manage growth in our business.

●	Our dependence on one floor plan financing agreement.

●	The impact of the volatility in the worldwide credit and equity markets.

●	The departure of our CEO, director and principal financial officer has increased our dependence on the services provided by Simon Friedman, Chairman of the Board of Directors and interim CEO, who can exercise disproportionate voting control over corporate decisions.

●	The super voting power of our interim CEO and director who holds shares of the Series A Convertible Preferred Stock.

●	Write-Offs for losses and defaults on our floor plan receivables.

●	The impact of changes in interest rates.

●	Increased costs as a result of becoming a reporting company.

●	Our ability to maintain an effective system of internal controls over financial reporting.

●	The affects on our stock price as a result of sales of our common stock by existing shareholders pursuant to Rule 144.

On December 11, 2013 Alan Gulko, the President and CEO of the company, resigned from the company and the Board of Directors. Simon Friedman, Chairman of the Board and majority shareholder, has assumed the position of interim CEO.

We caution that the factors described herein and other factors could cause our actual results of operations and financial condition to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

OVERVIEW

We are an independent auto sales finance company that provides floor plan financing and auto financing for independent used car dealers. The loans made are based on the value of collateral (the car) as determined by us using the automobile industry’s nationally-recognized valuation sources. We ~~currently~~maintain our licenses to operate in Pennsylvania, New Jersey and Florida. ~~Our~~The ~~current~~Company ~~operations~~has ~~are~~suspended ~~focused on the management~~financing ofnew aloans ~~floor~~while ~~plan~~Management ~~financing portfolio we acquired in June 2012~~ and ~~retail~~the ~~installment~~Board ~~contract~~of ~~receivables~~Directors weexplore ~~acquired~~alternative inopportunities ~~March 2013~~for asour ~~discussed~~future ~~below~~growth.

InOn ~~furtherance~~March of26, ~~our expansion into automotive consumer loans~~2013, we acquired certain retail installment contract receivables from our affiliates, AAF and AFG ~~on March 26~~, ~~2013~~ for $102,250. The receivables consisted of an aggregate principal balance of approximately $141,868 for current ~~loans~~loan receivables and approximately $323,449 for non-current loan ~~loans~~ receivables. The sellers guaranteed to us that we will recover no less than 70% of the aggregate amount of the current loans. If we recover less than 70% of that amount, the sellers agreed to pay the difference to us upon demand. In 2014, we recovered our entire investment in the loan portfolio and collected 100% of the aggregate amount paid by the Company to acquire the loan portfolio. On February 19, 2014, we transferred all remaining loans receivable to AAF, as we determined that the outstanding balances were either uncollectible or difficult to collect and the Company did not believe that pursuing further collection efforts was a good use of the Company’s resources.

WeRecent are licensed as a Sales Finance Company by the States of Florida and New Jersey since January 2013 and by the Commonwealth of Pennsylvania since February 2013. These licenses permit us to expand our operations to providing financing for auto sales by dealers.Developments

AsEffective ~~discussed~~June in30, ~~our February 13~~2014, we ~~2013~~amended ~~prospectus~~and ~~filed~~restated ~~with~~our ~~the~~articles ~~SEC,~~of weincorporation ~~sought~~in order to ~~raise~~effectuate upa to1-for-10 ~~$30,000,000~~Reverse byStock ~~selling~~Split ~~5,000,000~~of ~~Units,~~our ~~each~~issued ~~Unit consisting~~and outstanding common stock. As a result of ~~four~~the Reverse Stock Split, every 10 shares of our pre-Reverse Stock Split common stock was combined and reclassified into one ~~redeemable~~share of our common stock. ~~warrant~~No atfractional ashares ~~public~~of ~~offering~~common ~~price~~stock ofwere ~~$6.00~~issued ~~per~~as ~~Unit~~a ~~(the “Offering”).~~result Weof ~~sold~~the ~~28,666~~Reverse ~~Units~~Stock inSplit. Throughout this ~~Offering~~quarterly ~~for~~report anon ~~aggregate~~Form ~~offering~~10-Q, ~~price~~each ofinstance ~~$171,985.~~which ~~The~~refers ~~Units~~to ~~are~~a ~~comprised~~number of ~~114,664~~ shares of our common stock ~~and 28~~,~~666~~ ~~common~~refers ~~stock~~to ~~purchase~~the ~~warrants~~number ~~exercisable~~of atshares aof ~~price~~common ofstock ~~$2.00~~after ~~per~~giving ~~share.~~effect ~~The~~to ~~Offering~~the ~~expired~~Reverse ~~on August~~Stock 14Split, ~~2013~~unless otherwise indicated.

OnWe ~~December~~define ~~11,~~our ~~2013 Alan~~accounting ~~Gulko,~~periods ~~the~~as President and CEO of the company, resigned from the company and the Board of Directors. Simon Friedman, Chairman of the Board and majority shareholder, has assumed the position of interim CEO while we evaluate new floor plan financing opportunities discussed below.follows:

We● ~~expect~~“fiscal ~~our~~2013” ~~floor~~- ~~plan financing~~July ~~receivable~~1, ~~that~~2012 ~~had~~through aJune ~~balance outstanding at December 31~~30, 2013 of● ~~$229,250~~“fiscal ~~will be paid in full during the quarter ending March 31,~~ 2014.” We- ~~are~~July seeking suitable borrowers for new floor plan financing plans and continue to evaluate strategies to expand this aspect of our business. Presently we do not have a timetable for when we will close on new floor plan financing business. We are continuing to collect amounts under our used car finance receivables which had a balance of $101,~~447~~ ~~as of December 31,~~ 2013. Wethrough ~~have~~June ~~reduced our floor plan financing staffing levels to better align them with our expected revenues while we explore new financing opportunities. Furthermore~~30, we2014 ~~anticipate~~● a“fiscal ~~significant~~2015” ~~reduction~~- inJuly ~~fee and interest revenues that are expected to result in a larger net loss in the quarter ending March 31~~1, 2014. Wethrough ~~have~~June ~~adequate~~30, ~~capital in addition to our cash flows from used car financing receivable collections to continue our operations over the next 12 months.~~2015

RESULTS OF OPERATIONS

Revenue

~~Total~~Since ~~revenue~~the ~~was~~Company ~~$22,643~~has ~~for~~suspended ~~the~~originating ~~quarter~~new ~~ended~~loans ~~December~~in ~~31,~~June ~~2013~~2014 ~~compared~~which toresulted ~~$15,612~~ in ~~the~~$0 ~~quarter ended December 31, 2012. Total~~ revenue ~~was $49,492 and $31,813~~ for the ~~six~~three months ended ~~December~~September 3130, ~~2013~~2014 ~~and 2012, respectively. This increase in total revenue is primarily due~~compared to ~~interest~~$26,849 ~~earned from loans outstanding~~ for ~~longer periods of time and an increase in renewal fees derived from~~ the ~~floor~~three ~~plan financing~~months ~~receivables~~ended weSeptember ~~acquired on June 13~~30, ~~2012~~2013.s

Operating Expenses

Total operating expenses ~~increased~~decreased $73106,~~530~~237 to $~~114~~42,~~858~~059 for the ~~quarter~~three months ended ~~December~~September 3130, ~~2013.~~2014 ~~Our~~compared ~~expenses were comprised primarily of $65,780 related~~ to ~~legal,~~the ~~accounting~~three ~~and~~months ~~SEC~~ended ~~compliance~~September ~~costs~~30, ~~$8,861~~2013. This indecrease ~~business~~is ~~development~~primarily ~~expenses,~~a ~~$6,198~~result ~~for~~of ~~computer~~temporary ~~related~~suspension ~~services~~of ~~and software,~~new ~~and~~business ~~$7,500 for rent~~activities.

~~Total operating expenses increased $194,919 to $263,153 for the six months ended December 31, 2013.~~ For the ~~six~~three months ended ~~December~~September 3130, ~~2013~~2014 our expenses were comprised primarily of $~~134~~17,~~134~~799 related to legal, accounting and SEC compliance costs, $3612,~~142~~766 in ~~business~~office ~~development~~ expenses, $203,~~291~~800 for ~~computer~~auto ~~related~~repossession services ~~and software~~, and $153,000 for ~~rent.~~temporary Inhelp ~~addition,~~and ~~operating expenses increased as a result of increased number of employees during the six months ended December 31~~$3,018 ~~2013~~for travel.

Other Income

Other income is comprised of interest, dividends and realized gains from the sale of marketable securities. Other income increased to $~~63,444~~12 for the ~~six~~three months ended ~~December~~September 3130, ~~2013~~2014 as compared to $07,459 for the ~~six~~three months ended ~~December~~September 3130, ~~2012~~2013 as a result of ~~dividends and gain from~~ the ~~sale~~ conversion of all of our ~~remaining~~ marketable securities to cash and cash equivalents. The company realized a gain of $~~53,242~~0 and $584,~~091~~849 from the sale of ~~the company’s~~ of marketable securities during the three ~~and six~~ months ended ~~December~~September 3130, 2014 and September 30, 2013, respectively.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity is the ability of an enterprise to generate adequate amounts of cash to meet its needs for cash requirements. As of ~~December~~September 3130, ~~2013~~2014 our working capital amounted to $~~826~~446,~~171~~441, a decrease of $3841,~~180~~914 as compared to $~~864~~488,~~351~~355 as of June 30, ~~2013~~2014. Working Capital included primarily cash and cash equivalents of $~~545~~385,~~564, floor plan financing receivables of $229,250, related party receivable of $27,272, and used car auto finance receivables of $10,447~~478.

We ~~have~~ financed operations through cash flows from financing activities transactions and to a lesser extent, cash generated from our operations. Net cash used in operating activities for the ~~six~~three months ended ~~December~~September 3130, ~~2013~~2014 was $~~166~~38,~~550, which primarily reflected an increase in operating expenses~~794. ~~Floor~~The ~~plan~~Company ~~financing~~recorded ~~receivables~~a ~~decreased~~liability ~~by $22,970 for the six months ended December 31, 2013 compared to an decrease~~ of $921,~~790 in floor plan financing receivables for the six months ended December 31, 2012. We collected $38,421~~000 indue ~~used car auto financing receivable during the six months ended December 31, 2013 compared~~ to ~~$0 for the six months ended December 31, 2012. Accounts payable and accrued expenses increased by $713 for the six months ended December 31, 2013 compared to~~ an ~~increase of~~unresolved ~~$9,600~~bank ~~for the six months ended December 31, 2012~~error. ~~Operating~~The ~~cash~~issue ~~flow~~ was ~~also~~resolved ~~decreased by an increase~~ in ~~related party receivables of $27~~October,~~272~~ 2014.

Net cash provided by ~~investing~~ financing activities for the ~~six~~three months ended ~~December~~September 3130, ~~2013~~2014 was $~~412,069,~~0. ~~from~~Net cash provided by financing activities for the ~~net~~quarter ended ~~proceeds~~September of30, 2013 was $135,996 stemming from the sale of ~~marketable~~Convertible ~~securities~~Preferred Stock Series A.

Net cash provided by financing activities for the six months ended December 31, 2013 was $135,996, primarily from subscription received in connection with the sale of common stock. Net cash provided by financing activities for the quarter ended December 31, 2012 was $744,451 stemming from the sale of Convertible Preferred Stock Series A.

Cash Requirements

Our future capital requirements will depend on ~~numerous~~management’s ~~factors,~~ability ~~including~~to ~~the~~develop ~~amount~~new oflines ~~auto dealer floor plan financing we provide and the rate at which we expand our operations, the profitability~~ of ~~operations and our ability to control costs~~business.

We do not currently have any contractual restrictions on our ability to incur debt and, accordingly we could incur significant amounts of indebtedness to finance operations. Any such indebtedness could contain covenants which would restrict our operations.

Although we ~~anticipate~~experienced a reduction in revenues as a result of the ~~payoff~~default and bankruptcy of our primary floor plan ~~financing receivable~~customer, we have adequate resources to operate at a minimal level while we ~~collect~~pursue ~~outstanding~~recovery ~~receivables~~of our floor plan receivable balance, and explore new opportunities.

Off-Balance Sheet Arrangements

Under SEC regulations, we are required to disclose our off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, such as changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. As of ~~December~~September 3130, ~~2013~~2014 we have no off-balance sheet arrangements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable to smaller reporting companies.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”) that are designed to ensure that information required to be disclosed by us in reports that we file under the Exchange Act is recorded, processed, summarized and reported as specified in the SEC’s rules and forms and that such information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer, or CEO, who is also our Principal Financial and Accounting Officer, to allow timely decisions regarding required disclosure. Management, with the participation of our CEO who is also our Principal Financial and Accounting Officer performed an evaluation of the effectiveness of our disclosure controls and procedures as of ~~December~~September 3130, ~~2013~~2014. Based on that evaluation, our management, including our CEO who is also our Principal Financial and Accounting Officer concluded that our disclosure controls and procedures were ineffective as of ~~December~~September 3130, ~~2013~~2014.

In addition, management identified the following material weakness and significant deficiencies in its assessment of the effectiveness of internal control over financial reporting as of September 30, 2014:

●	Material Weakness - The Company did not maintain effective controls over certain aspects of the financial reporting process because we lacked a sufficient complement of personnel with a level of accounting expertise and an adequate supervisory review structure that is commensurate with the Company’s financial reporting requirements.

●	Significant Deficiencies - Inadequate segregation of duties.

We expect to be materially dependent upon a third party to provide us with accounting consulting services for the foreseeable future. Until such time as we have a chief financial officer with the requisite expertise in U.S. GAAP, there are no assurances that the material weaknesses and significant deficiencies in our disclosure controls and procedures and internal control over financial reporting will not result in errors in our financial statements which could lead to a restatement of those financial statements.

Our management, including our Chief Executive Officer and our Principal Financial and Accounting Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud. A 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. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected.

Changes in Internal Control

There were no changes identified in connection with our internal control over financial reporting during the ~~six~~three months ended ~~December~~September 3130, ~~2013~~2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

~~None~~The Company is pursuing all available legal remedies to collect floor plan receivables and interest and penalties from its principal customer who is under the protection of the Federal Bankruptcy Court. We have instituted collection subject to personal guarantees issued by principal owners of the bankrupt party. We are awaiting the Bankruptcy Judge’s decision to lift the restriction on liquidating repossessed autos owned by our customer.

ITEM 1A. RISK FACTORS.

Not applicable to smaller reporting companies.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable

ITEM 5. OTHER INFORMATION.

None

ITEM 6. EXHIBITS.

Exhibit No.		Description

31.1		Section 302 Certificate of Chief Executive Officer.*

31.2		Section 302 Certificate of Principal Financial and Accounting Officer.*

32.1		Section 906 Certificate of Chief Executive Officer and Principal Financial and Accounting Officer.*

101.INS		XBRL INSTANCE DOCUMENT **

101.SCH		XBRL TAXONOMY EXTENSION SCHEMA **

101.CAL		XBRL TAXONOMY EXTENSION CALCULATION LINKBASE **

101.DEF		XBRL TAXONOMY EXTENSION DEFINITION LINKBASE **

101.LAB		XBRL TAXONOMY EXTENSION LABEL LINKBASE **

101.PRE		XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE **

*	Filed herewith.

**	In accordance with Regulation S-T, the XBRL-formatted interactive data files that comprise Exhibit 101 in this 1 in this Quarterly Report on Form 10-Q shall be deemed “furnished” and not “filed”.

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.

	AVANGARD CAPITAL GROUP, INC.
Date: February 7, 2014	By:	/s/ Simon Friedman
Date: November 19, 2014	By:	/s/ Simon Friedman
		Simon Friedman
		Chairman and Chief Executive Officer
		(Principal Executive Officer and Principal Financial and Accounting Officer)

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