UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended SeptemberJune 30, 20172018
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
Commission File No. 000-53230
ETERNELLE SKINCARE PRODUCTSPEPTIDE TECHNOLOGIES, INC.
(NameExact name of small business issuerregistrant as specifiedspecifed in its charter)
Nevada | 98-0479983 | |
(State or other jurisdiction of | (IRS Employer | |
incorporation or organization) | Identification No.) |
5348 Vegas Drive #177
Las Vegas, NV 89108
(Address of principal executive offices)
(702) 948-8893
Registrant’s telephone number, including area code
Indicate by check mark whether the Registrant (1) has filed all reports required 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 [ ] No [X]
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, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer | [ ] | Accelerated filer | [ ] |
Non–Accelerated filer | [ ] | Smaller reporting company | [X] |
Emerging growth company | [ ] |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b–2 of the Exchange Act).
Yes [ ] No [X]
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class | Outstanding at | |
Common stock, $0.001 par value |
ETERNELLE SKINCARE PRODUCTSPEPTIDE TECHNOLOGIES, INC.
INDEX TO FORM 10-Q FILING
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBERJUNE 30, 20172018 AND 20162017
TABLE OF CONTENTS
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The accompanying interim financial statements have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders’ equity in conformity with accounting principles generally accepted in the United States of America. Except as disclosed herein, there has been no material change in the information disclosed in the notes to the financial statements included in the Company’s Registration StatementAnnual Report on Form 10-12G10-K for the year ended March 31, 2017.2018. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included, and all such adjustments are of a normal recurring nature. Operating results for the three and six months ended SeptemberJune 30, 20172018 are not necessarily indicative of the results that can be expected for the year ending March 31, 2018.2019.
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ETERNELLE SKINCARE PRODUCTSPEPTIDE TECHNOLOGIES, INC.
BALANCE SHEETS
(UNAUDITED)
September 30, 2017 | March 31, 2017 | June 30, 2018 | March 31, 2018 | |||||||||||
ASSETS | ||||||||||||||
Current Assets | ||||||||||||||
Cash and cash equivalents | $ | 3,306 | $ | — | ||||||||||
Cash and equivalents | $ | 1,130 | $ | 1,728 | ||||||||||
Total Current Assets | 3,306 | — | 1,130 | 1,728 | ||||||||||
Website | 16,000 | — | ||||||||||||
Website, net of accumulated amortization of $3,989 and $2,659 as of June 30, 2018 and March 31, 2018, respectively | 12,011 | 13,341 | ||||||||||||
Total Assets | $ | 19,306 | $ | — | $ | 13,141 | $ | 15,069 | ||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||||||
Current Liabilities | ||||||||||||||
Accounts payable | $ | 42,230 | $ | 37,230 | $ | 54,203 | $ | 37,870 | ||||||
Related-party advances | 52,799 | 13,263 | ||||||||||||
Related party advances | 67,425 | 67,113 | ||||||||||||
Accrued compensation | 221,192 | 221,192 | 221,192 | 221,192 | ||||||||||
Other accrued liabilities | 10,000 | 10,000 | 10,000 | 10,000 | ||||||||||
Total Current Liabilities | 326,221 | 281,685 | 352,820 | 336,175 | ||||||||||
Stockholders’ Deficit | ||||||||||||||
Common stock: $0.001 par value; 675,000,000 shares authorized; 156,062,660 shares issued and outstanding | 156,063 | 156,063 | ||||||||||||
Common stock: $0.001 par value; 675,000,000 shares authorized; 127,112,660 issued and outstanding as of June 30, 2018 and March 31, 2018, respectively | 127,113 | 127,113 | ||||||||||||
Additional paid-in capital | 692,763 | 692,763 | 731,963 | 731,963 | ||||||||||
Accumulated deficit | (1,155,741 | ) | (1,130,511 | ) | (1,198,755 | ) | (1,180,182 | ) | ||||||
Total Stockholders’ Deficit | (306,915 | ) | (281,685 | ) | (339,679 | ) | (321,106 | ) | ||||||
Total Liabilities and Stockholders’ Deficit | $ | 19,306 | $ | — | $ | 13,141 | $ | 15,069 |
The accompanying notes are an integral part of these unaudited financial statements.
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ETERNELLE SKINCARE PRODUCTSPEPTIDE TECHNOLOGIES, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended | Six Months Ended | For the Three Months Ended | ||||||||||||||||||||
September 30, | September 30, | June 30, | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2018 | 2017 | |||||||||||||||||
Operating Expenses | ||||||||||||||||||||||
General and administrative | $ | 8,144 | $ | 21 | $ | 25,247 | $ | 21 | $ | 18,569 | $ | 17,103 | ||||||||||
Total Operating Expenses | 8,144 | 21 | 25,247 | 21 | 18,569 | 17,103 | ||||||||||||||||
Operating Loss | (8,144 | ) | (21 | ) | (25,247 | ) | (21 | ) | (18,569 | ) | (17,103 | ) | ||||||||||
Other Income | ||||||||||||||||||||||
Foreign currency gain | 17 | — | 17 | — | ||||||||||||||||||
Other Expenses | ||||||||||||||||||||||
Foreign Currency loss | (4 | ) | — | |||||||||||||||||||
Net Loss | $ | (8,127 | ) | $ | (21 | ) | $ | (25,230 | ) | $ | (21 | ) | $ | (18,573 | ) | $ | (17,103 | ) | ||||
Basic and Diluted Loss per Common Share | $ | — | $ | — | $ | — | $ | — | $ | 0.00 | $ | 0.00 | ||||||||||
Weighted Average Number of Common Shares Outstanding | 156,062,660 | 156,062,660 | 156,062,660 | 156,062,660 | 127,112,660 | 156,062,660 |
The accompanying notes are an integral part of these unaudited financial statements.
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ETERNELLE SKINCARE PRODUCTSPEPTIDE TECHNOLOGIES, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Six Months Ended | For the Three Months Ended | |||||||||||||
September 30, | June 30, | |||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||
Cash Flows From Operating Activities: | ||||||||||||||
Net loss | $ | (25,230 | ) | $ | (21 | ) | $ | (18,573 | ) | $ | (17,103 | ) | ||
Adjustments to reconcile net loss to cash flows used in operating activities: | ||||||||||||||
Depreciation | 1,330 | — | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts payable | 5,000 | |||||||||||||
Accounts payable and accrued liabilities | 16,333 | — | ||||||||||||
Net cash used for operating activities | (20,230 | ) | (21 | ) | (910 | ) | (17,103 | ) | ||||||
Cash Flows From Investing Activities: | ||||||||||||||
Website development | (16,000 | ) | — | — | (16,000 | ) | ||||||||
Net cash used for investing activities | (16,000 | ) | — | — | (16,000 | ) | ||||||||
Cash Flows From Financing Activities: | ||||||||||||||
Related-party advances | 39,536 | 21 | ||||||||||||
Related party advances | 312 | 33,103 | ||||||||||||
Net cash provided by financing activities | 39,536 | 21 | 312 | 33,103 | ||||||||||
Increase in cash and equivalents | 3,306 | — | ||||||||||||
Change in cash and equivalents | (598 | ) | — | |||||||||||
Cash and cash equivalents, beginning of period | — | — | 1,728 | — | ||||||||||
Cash and cash equivalents, end of period | $ | 3,306 | $ | — | $ | 1,130 | $ | — |
The accompanying notes are an integral part of these unaudited financial statements.
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ETERNELLE SKINCARE PRODUCTS INC.NOTES TO FINANCIAL STATEMENTSFOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2017 AND 2016(Unaudited)
NOTE 1 – NATURE OF OPERATIONS
Eternelle Skincare ProductsPeptide Technologies, Inc. (the “Company” or “Eternelle”“Peptide”), was incorporated in the State of Nevada, United States of America, on November 18, 2005.
The Company’s business is to develop and market skincare products. Its plan is to build a state-of-the-art online store with a direct marketing and sales funnel aimed at targeted channels, using internet, social media, and content marketing. The Company’s marketing approach uses vetted channels that encompass several steps to gauge performance data from marketing tests against other campaigns in real-time with the ability to modify content delivery to targeted consumers immediately. The Company will engage a team with proprietary algorithmic software to assist in making these marketing decisions. Management believes this will provide the Company a distinct advantage over other companies that outsource marketing and advertising efforts to third parties.
The skincare space is well-suited for direct-to-consumer sales, and there are several channels that Eternellethe Company will leverage to introduce its unique branding and creative advertising assets. Creating brand visibility, along with the back-end support to process orders, is one of Eternelle’sthe Company’s key strengths over smaller competitors in the space. In addition, Eternellethe Company will create a brand that allows visibility and awareness to be molded organically, thereby increasing the brand’s value quickly.
The Company is currently negotiating with the intent to engagehas identified a cosmetic and skincare manufacturer and has agreed upon product formulations, the design and sourcing of packaging, and product costs. The Company does not intend to enter into a long-term master supply agreement with the manufacturer. Rather, orders will be placed through individual purchase orders as well as developing its marketing and sales strategy.needed. The Company’s activities are subject to significant risks and uncertainties, including the need for additional capital to carry out its plan of operation and competition from existing consumer product companies.
The majority of manufacturing, distribution, marketing, and sales operations will be outsourced. However, strategic planning and development will be performed internally by the Company. This includes, but is not limited to, developing our catalog of products, developing proprietary skincare formulations, pricing our products, deciding which markets to target, deciding which influencers to engage in marketing campaigns, developing sales channels such as our e-commerce sites, determining which marketing initiatives to pursue, and selecting strategic partners and suppliers to advance our business plan.
NOTE 2 – BASIS OF PRESENTATION OF INTERIM FINANCIAL STATEMENTS
The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. The accompanying interim unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.
Operating results for the three and six months ended SeptemberJune 30, 20172018 are not necessarily indicative of the results that may be expected for the year ending March 31, 2018.2019. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended March 31, 20172018 have been omitted. This report should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended March 31, 20172018 included within the Company’s Annual Report on Form 10-12G10-K as filed with the Securities and Exchange Commission.
NOTE 3 – GOING CONCERN
These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which contemplate the continuation of the Company as a going concern. The Company has incurred losses from operations and had an accumulated deficit of $1,155,741$1,198,755 as of SeptemberJune 30, 2017.2018. The Company also has excess liabilities over assets of $306,915.$339,679. These factors raise doubt about the Company’s ability to continue as a going concern.
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Management’s plans are to actively seek capital to enable the Company to add new products and/or services to ultimately achieve profitability. However, management cannot provide assurance that they can raise sufficient capital and whether the Company will ultimately achieve profitability, become cash flow positive, or raise additional debt and/or equity capital. If the Company is unable to raise additional capital in the near future or meet financing requirements, management expects that the Company will need to curtail operations, seek additional capital on less favorable terms, and/or pursue other remedial measures.
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These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company become unable to continue as a going concern.
NOTE 4 –SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited financial statements and related disclosures have been prepared in accordance with U.S. GAAP applicable to interim financial information and with the instructions to Form 10-Q. In the opinion of management, all adjustments, consisting of only those of a normal recurring nature, considered necessary for a fair presentation of the financial position and interim results of Eternelle as of and for the periods presented have been included. Results for interim periods are not necessarily indicative of those that may be expected for a full year.
The year-end balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the financial statements do not include all disclosures required by U.S. GAAP. The financial information included herein should be read in conjunction with Eternelle’s financial statements and related notes for the year ended March 31, 2017 as filed in the Company’s Registration Statement on Form 10-12G.
Revenue Recognition
Revenue iswill be recognized on a gross basis upon shipment or upon receipt of products by the customer, depending on the agreed-upon terms, provided that: there are no uncertainties regarding customer acceptance; persuasive evidence of an agreement exists documenting the specific terms of the transaction; the sales price is fixed or determinable; and collectibilitycollectability is reasonably assured. Management assesseswill assess the business environment, the customer’s financial condition, historical collection experience, accounts receivable aging, and customer disputes to determine whether collectibilitycollectability is reasonably assured. If collectibilitycollectability is not considered reasonably assured at the time of sale, the Company does not recognize revenue until collection occurs. The Company expectsplans to begin recognizing revenue inby the fourththird quarter of this fiscal year.
Website
Expenditures related to the planning and operation of the Company’s website are expensed as incurred. Expenditures related to the website application and infrastructure development are capitalized and amortizeddepreciated over the website’s estimated useful life of three (3) years. AsAmortization for the websitethree months ended June 30, 2018 and 2017 was recently completed, we will begin amortizing website costs in October 2017.$1,330 and $0, respectively.
Recent Accounting Pronouncements
The Financial Accounting Standards Board issues Accounting Standards Updates (“ASU”) to amend the authoritative literature in the Accounting Standards Codification (“ASC”). There have been a number of ASUs to date that amend the original text of the ASC. The Company believes those updates issued-to-date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company, or (iv) are not expected to have a significant impact on the Company.
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NOTE 5 – RELATED-PARTYRELATED PARTY TRANSACTIONS
The Company’s Chief ExecutiveFinancial Officer (“CEO”CFO”) advanced $39,536$312 and $33,103 to the Company during the sixthree months ended SeptemberJune 30, 2018 and 2017, respectively, to pay for operating expenses and website development costs and operating expenses.costs. The advances are due on demand and carry no interest. The related-partyrelated party advances totaled $52,799$67,425 and $13,263$67,113 as of SeptemberJune 30, 20172018 and March 31, 2017,2018, respectively.
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NOTE 6 – COMMITMENTS AND CONTINGENCIES
The Company is not currently involved with and does not have knowledge of any pending or threatened litigation against the Company or any of its officers.
NOTE 7 – SUBSEQUENT EVENTS
Subsequent to September 30, 2017, the Company’s CEO advanced additional funds totaling $8,376 to pay for operating costs.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
In this Quarterly Report, “Company,” “our company,” “us,” and “our” refer to Eternelle Skincare ProductsPeptide Technologies, Inc., unless the context requires otherwise.
Forward-Looking Statements
The following information contains certain forward-looking statements. Forward-looking statements are statements that estimate the happening of future events and are not based on historical fact. Forward-looking statements may be identified by the use of forward-looking terminology, such as “may,” “could,” “expect,” “estimate,” “anticipate,” “plan,” “predict,” “probable,” “possible,” “should,” “continue,” or similar terms, variations of those terms or the negative of those terms. The forward-looking statements specified in the following information have been compiled by our management on the basis of assumptions made by management and considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements.
Business of Issuer
The business of Eternelle Skincare ProductsPeptide Technologies, Inc. (the “Company” or “Eternelle”“Peptide”) is to develop and market skincare products. Peptides are the latest innovation in skincare as science has proven that peptidesPeptide can help manage wrinkles in skin and reverse the signs of aging. Using proprietary peptide blends, the Company is developinghas a number of skincare products that demonstrate strong efficacy in providing youthful, healthy skin and significant anti-aging benefits to both women and men.
Our skincare products address various skincare needs. These products include moisturizers and serums for the face and around the eyes.
1. | Skin Brightener – A unique pigment clarifying serum that addresses uneven production of melanin. It synergistically targets areas of hyper pigmentation. |
2. | Vitamin C Peptide – Plant-based collagen serum created to resist damage from aging, sun damage, and environmental exposure. |
3. | Skin Moisturizer – A super fruit, antioxidant rich crème that contains age defying peptides and vitamin C that significantly minimizes visible signs of aging. |
Our Company has developed its proprietary skincare formulations, and we will use internationally recognized experts in the manufacturing of specialized, professional quality products that meet the demands of day and resort spa, medical spa, and eco spa markets.
We’re currently negotiating with the intent to engageThe Company has identified a cosmetic and skincare manufacturer and has agreed upon product formulations, the design and sourcing of packaging, and product costs. The Company does not intend to enter into a long-term master supply agreement with the manufacturer. Rather, orders will be placed through individual purchase orders as needed. With profound knowledge and expertise in cosmetic chemistry and professional skincare, this manufacturer has established itself as a leader in cutting edge formulations and product innovation in the field of skincare.
This manufacturer offers custom product formulation and manufacturing, allowing our Company to develop proprietary blends in order to privately brand our collection.
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This supplier manufactures products in accordance with Good Manufacturing Procedures (GMP). It also follows the recommendations of the United States Food and Drug Administration and Health Canada and also adheres to the Quality Assurance Guidelines of the Cosmetic, Toiletry, and Fragrance Association. These guidelines enable us to guarantee the consistency and quality of our products from batch to batch. The manufacturer performs toxicity, microbiological, temperature, and stability tests on all formulations. They do not test on animals, and they select all botanicals for freshness, purity of source, quality, and potency. Every product will be researched and tested by the supplier’s manufacturing team before it is approved for sale.
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We expect to launch our products and begin recognizing revenue by March 2018.the third quarter of this fiscal year.
Financial Results and Trends
Results of Operations for the SixThree Months Ended SeptemberJune 30, 20172018 and 20162017
At present, the Company has no revenue. Net loss increased from $21$17,103 for the sixthree months ended SeptemberJune 30, 20162017 to $25,230$18,573 for the sixthree months ended SeptemberJune 30, 20172018 due to higher general and administrative expenses.
Liquidity and Capital Resources
The Company requires significant cash to launch its business and reduce its payables. The Company’s primary sources of liquidity and capital resources have been related-party advances, which are not sufficient prospectively. These factors raise substantial doubt about the Company’s ability to continue as a going concern. We are actively seeking to raise additional debt and/or equity capital to add new products and/or services to commence material operations. If the Company is unable to raise additional capital in the near future or meet financing requirements, the Company may need to curtail or alter its plan of operation.
Cash Flow
The following table summarizes, for the periods indicated, selected items in our condensed Statements of Cash Flows:
Six Months Ended | Three Months Ended | |||||||||||||
September 30, | June 30, | |||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||
Net cash (used in) provided by: | ||||||||||||||
Operating activities | $ | (20,230 | ) | $ | (21 | ) | $ | (910 | ) | $ | (17,103 | ) | ||
Investing activities | $ | (16,000 | ) | $ | — | $ | — | $ | (16,000 | ) | ||||
Financing activities | $ | 39,536 | $ | 21 | $ | 312 | $ | 33,103 |
Operating Activities
Cash used in operating activities was $20,230$910 and $21$17,103 for the sixthree months ended SeptemberJune 30, 20172018 and 2016,2017, respectively. The increasedecrease in cash used in operating activities was primarily due to a higher net loss.changes in working capital.
Investing Activities
Cash used in investing activities was $16,000$0 and $0$16,000 for the sixthree months ended SeptemberJune 30, 20172018 and 2016,2017, respectively. The increasedecrease in cash used in investing activities was primarily due to non-recurring website development costs.costs in 2017.
Financing Activities
Cash provided by financing activities was $39,536$312 and $21$33,103 for the sixthree months ended SeptemberJune 30, 20172018 and 2016,2017, respectively. The increasedecrease in cash provided by financing activities was primarily due to higher related-partylower related party advances.
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Off-Balance Sheet Arrangements
None.
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WHERE YOU CAN FIND MORE INFORMATION
You are advised to read this Quarterly Report on Form 10-Q in conjunction with other reports and documents that we file from time to time with the SEC. In particular, please read our Registration Statement on Form 10-12G, Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K, and Current Reports on Form 8-K that we file from time to time. You may obtain copies of these reports directly from us or from the SEC at the SEC’s Public Reference Room at 100 F. Street, N.E. Washington, D.C. 20549, and you may obtain information about obtaining access to the Reference Room by calling the SEC at 1-800-SEC-0330. In addition, the SEC maintains information for electronic filers at its websitehttp://www.sec.gov.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We had no material changes in market risk from those described in “Item 2—Quantitative and Qualitative Disclosures about Market Risk” of our Registration StatementAnnual Report on Form 10-12G.10-K.
ITEM 4. CONTROLS AND PROCEDURES
This report includes the certification of our Chief Executive Officer required by Rule 13a-14 of the Securities Exchange Act of 1934 (the “Exchange Act”). See Exhibits 31.1 and 31.2. This Item 4 includes information concerning the controls and control evaluations revered to in those certifications.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s (the “SEC”) rules and forms and that such information is accumulated and communicated to our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Our disclosure controls and procedures were designed to provide reasonable assurance that the controls and procedures would meet their objectives.
As required by SEC Rule 13a-15(b), our Chief Executive Officer and Chief Financial Officer need to carry out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on the foregoing, our Chief Executive Officer concluded that our disclosure controls and procedures were effective as of SeptemberJune 30, 2017.2018.
Management’s Report on Internal Control over Financial Reporting
Our Chief Executive Officer and the Chief Financial Officer are responsible for establishing and maintaining adequate internal control over financial reporting and for the assessment of the effectiveness of our internal control over financial reporting. Internal control over financial reporting (as defined in Rules 13a-15(f) and 15d(f) under the Exchange Act) is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with U.S. GAAP. Internal control over financial reporting includes those policies and procedures that (a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets, (b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, (c) provide reasonable assurance that receipts and expenditures are being made only in accordance with appropriate authorization of management and the Board of Directors, and (d) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the financial statements.
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In connection with the preparation of our Annual Report on Form 10-K for the year ended March 31, 2018,2019, our Chief Executive Officer and Chief Financial Officer will evaluate the effectiveness of our internal control over financial reporting as of March 31, 2018.2019.
Inherent Limitations on Internal Controls
It should be noted that any system of controls, however well designed and operated, can provide only reasonable and not absolute assurance that the objectives of the control system are met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of certain events. Limitations inherent in any control system include the following:
Because of 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, have been detected.
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PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
ITEM 1. | LEGAL PROCEEDINGS |
As of SeptemberJune 30, 2017,2018, the Company is not involved in any material litigation.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS SECURITIES
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS SECURITIES |
During the sixthree months ended SeptemberJune 30, 2017, Eternelle2018, Peptide did not sell any unregistered equity securities.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
Not applicable.
ITEM 4. MINING SAFETY DISCLOSURES
ITEM 4. | MINING SAFETY DISCLOSURES |
Not applicable.
ITEM 5. | OTHER INFORMATION |
ITEM 5. OTHER INFORMATION
Effective November 7, 2017, Dennis Cox, who served as President and a Director of Eternelle, has resigned as President. Mr. Cox will remain as a Director.
On November 7, 2017, Byron Striloff was appointedThere is no information with respect to serve as President of Eternelle. Mr. Byron Striloff spent 35 years as a senior investment advisor in the areas of personal and corporate investment management, tax planning, venture capital, insurance, and estate planning. He was a producing branch manager and has held senior management and directorship positionswhich information is not otherwise called for various national investment dealers. His most recent account executive position as a senior personal and corporate investment advisor from 2012 through January 2016 was with CIBC Wood Gundy. He is also presently a Director of Nationwide Self Storage and a Trustee for Valhalla Diamond Trust.by this form.
His primary area of specialization is the development of financial strategies that optimize investment performance from long-term trends, tax minimization, and wealth creation for individuals and businesses. He is also a master qualified member of the Dent Foundation and frequently speaks at public seminars on demographic economic forecasting.
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ITEM 6. EXHIBITS
ITEM 6. | EXHIBITS |
Exhibits
3.0 | Articles of Incorporation. Incorporated by reference to the Registrant’s Form 10-12G filed on July 28, 2017. | |
3.1 | Amended Articles of Incorporation. Incorporated by reference to the Registrant’s Form 10-12G filed on July 28, 2017. | |
3.2 | Amended Articles of Incorporation. Incorporated by reference to the Registrant’s Form 10-12G filed on July 28, 2017. | |
3.3 | Corporate Bylaws. Incorporated by reference to the Registrant’s Form 10-12G filed on July 28, 2017. | |
10.1 | Advance from Baxter Koehn to | |
31.1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act | |
31.2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act | |
32.1 | Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act | |
32.2 | Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act |
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
Registrant | ||
Date: | By: | /s/ |
Chief Executive Officer |