U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report under Section 12(b) or 12(g) of
The Securities Act of 1934
For the Period ended February 29, 2008
Commission File Number 333-148098
XTREME LINK, INC.
(Name of small business issuer in its charter)
Nevada | 20-5240593 |
(State of incorporation) | (Employer ID Number) |
21-10405 Jasper Avenue,
Edmonton, Alberta,
T5J 3S2, Canada
(Address and telephone number of principal executive offices)
Check 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 [ ]
Check whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [X] No [ ]
There were 7,900,000 shares of Common Stock outstanding as of April 4, 2008.
ITEM 1. FINANCIAL STATEMENT
XTREME LINK INC.
(A Development Stage Company)
BALANCE SHEET
(UNAUDITED)
February 29,
2008 - $ - | |
ASSETS | |
Current | |
Cash | 19,046 |
Total current assets | 19,046 |
Patent | 5,000 |
Total assets | 24,046 |
LIABILITIES | |
Current | |
Accounts payable – related party | 577 |
Total current liabilities | 577 |
Total liabilities | 577 |
STOCKHOLDERS’ EQUITY | |
Common stock | |
Authorized: | |
75,000,000 common shares with a par value of $0.001 | |
Issued and outstanding: | |
7,900,000 common shares | 7,900 |
Additional paid in capital | 46,100 |
Deficit accumulated during the development stage | (30,531) |
Total stockholders’ equity | 23,469 |
Total liabilities and stockholders’ equity | 24,046 |
See accompanying summary of accounting policies and notes to financial statements
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XTREME LINK INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
Three months ended February 29, 2008 and February 28, 2007
Nine months ended February 29, 2008
Period from June 22, 2006 (Inception) to February 28, 2007
And period from June 22, 2006 (Inception) to February 29, 2008
(UNAUDITED)
Three months
ended February 29, 2008 - $ - | Three months
ended February 28, 2007 - $ - | Nine months ended
February 29, 2008 - $ - | Period from June
22, 2006 (Inception) to February 28, 2007 - $ - | Period from June
22, 2006 (Inception) to February 29, 2008 - $ - | |
Management fees | 1,500 | 1,500 | 4,500 | 4,000 | 10,000 |
Rent | 1,500 | 1,500 | 4,500 | 4,000 | 10,000 |
General and administrative | 6,557 | 9,555 | 664 | 10,531 | |
Net loss | 9,557 | 3,000 | 18,555 | 8,664 | 30,531 |
Basic and diluted loss per share | (0.00) | (0.00) | (0.00) | (0.00) | |
Weighted average number of shares outstanding | 7,900,000 | 7,900,000 | 7,900,000 | 6,665,339 |
See accompanying summary of accounting policies and notes to financial statements
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XTREME LINK INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
Nine months ended February 29, 2008
Period from June 22, 2006 (Inception) through February 28, 2007
and Period from June 22, 2006 (Inception) through February 29, 2008
(UNAUDITED)
Nine months
ended February 29, 2008 - $ - | Period from
June 22, 2006 (Inception) through February 28, 2007 - $ - | Period from
June 22, 2006 (Inception) through February 29, 2008 - $ - | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | (18,555) | (8,664) | (30,531) |
Add: Non cash contribution of services | 9,000 | 8,000 | 20,000 |
Adjustments to reconcile net loss to cash used by operating activities: | |||
Net change in: | |||
Accounts payable – Related Party | - | 577 | 577 |
CASH FLOWS USED IN OPERATING ACTIVITIES | (9,555) | (87) | (9,954) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Cash received from sale of common stock | - | 29,000 | 29,000 |
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | - | 29,000 | 29,000 |
NET INCREASE (DECREASE) IN CASH | (9,555) | 28,913 | 19,046 |
Cash, beginning of period | 28,601 | - | - |
Cash, end of period | 19,046 | 28,913 | 19,046 |
Supplemental cash flow information: | |||
Interest paid | - | - | - |
Taxes paid | - | - | - |
Non-cash transactions: | |||
Stock issued for acquisition of patent | - | 5,000 | 5,000 |
See accompanying summary of accounting policies and notes to financial statements
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XTREME LINK INC.
NOTES TO FINANCIAL STATEMENTS
(A Development Stage Company)
FEBRUARY 29, 2008
(UNAUDITED)
Note 1. BASIS OF PRESENTATION
The accompanying unaudited interim financial statements of Xtreme Link Inc. ("Xtreme" or the "Company") have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's Annual Report filed with the SEC on Form SB-2. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for our interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate the disclosure contained in the audited financial statements for fiscal 2007, as r eported in the Form SB-2, have been omitted.
These financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company anticipates future losses in the development of its business raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from directors and/or issuance of common shares.
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FORWARD-LOOKING STATEMENTS
This Form 10-QSB includes "forward-looking statements" within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.
All statements other than historical facts included in this Form, including without limitation, statements under "Plan of Operation", regarding our financial position, business strategy, and plans and objectives of management for the future operations, are forward-looking statements.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, market conditions, competition and the ability to successfully complete financing.
ITEM 2. PLAN OF OPERATION AND RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED FEBRUARY 29, 2008
Plan of Operation
Our plan of operation for the 12 months following the date of this prospectus is to enter into negotiations with bicycle manufacturers to license our product and to identify a third party manufacturer to commence production and marketing of our product.
Over the next 12 months, we anticipate spending approximately $30,000 on professional fees and administrative expenses, including fees payable in connection with complying with reporting obligations and $50,000 on marketing expenses. Total expenditures over the next 12 months are expected to be approximately $80,000.
While we have sufficient funds on hand to commence business operations, our cash reserves are not sufficient to meet our obligations for the next 12-month period. As a result, we will need to seek additional funding in the near future. We currently do not have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of equity financing from the sale of our common stock.
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We may also seek to obtain short-term loans from our President, although no such arrangement has been made. At this time, we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock or through a loan from our president to meet our obligations over the next 12 months. We do not have any arrangements in place for any future equity financing.
Results of Operations for the Three and Nine-Month Period Ended February 29, 2008 compared to the Three and Nine-Month Period Ended February 28, 2007
We did not earn any revenues during the three-month period ended February 29, 2008 (three months ended February 28, 2007: $Nil).
We incurred operating expenses in the amount of $9,557 for the three- month period ended February 29, 2008(three months ended February 28, 2007: 3,000). These operating expenses, comprised of general and administration expenses of $6,557(three months ended February 28, 2007: $0), donated management fees of $1,500 (three months ended February 28, 2007: $1,500) and donated rent of $1,500(three months ended February 28, 2007: $1,500).
We did not earn any revenues during the nine-month period ended February 29, 2008(period from June 22, 2006 (Inception) to February 28, 2007: $Nil).
We incurred operating expenses in the amount of $18,555 for the nine- month period ended February 29, 2008(period from June 22, 2006 (Inception) to February 28, 2007: $8,664). These operating expenses, comprised of general and administration expenses of $9,555(period from June 22, 2006 (Inception) to February 28, 2008: $664), donated management fees of $4,500 (period from June 22, 2006 (Inception) to February 28, 2007: $4,000) and donated rent of $4,500(period from June 22, 2006 (Inception) to February 28, 2007: $4,000).
At February 29, 2008, we had total assets of $24,046 consisting of cash of $19,046 and a patent of $5,000. At the same date, we had liabilities of $577 consisting entirely of accounts payable.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
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ITEM 3. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we have conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as of the end of the period covered by this report. Based on this evaluation, our principal executive officer and principal financial officer concluded as of the evaluation date that our disclosure controls and procedures were effective such that the material information required to be included in our Securities and Exchange Commission reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms relating to our company, particularly during the period when this report was being prepared.
Additionally, there were no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the evaluation date. We have not identified any significant deficiencies or material weaknesses in our internal controls, and therefore there were no corrective actions taken.
PART II – OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
The following exhibits are included with this registration statement filing.
Those marked with an asterisk and required to be filed hereunder, are incorporated by reference and can be found in their entirety in our original Form SB-2 Registration Statement, filed under SEC File Number 333-148098, at the SEC website at www.sec.gov:
Exhibit | |
Number | Description |
31.1 | Sec. 302 Certification of Principal Executive Officer |
31.2 | Sec. 302 Certification of Principal Financial Officer |
32.1 | Sec. 906 Certification of Principal Executive Officer |
32.2 | Sec. 906 Certification of Principal Financial Officer |
There were no reports filed on Form 8-K during the quarter ended February 29, 2008.
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SIGNATURES
Pursuant to the requirements of Section 13(a) 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.
April 14, 2008
Xtreme Link, Inc., Registrant
By: /s/ Terry Hahn
Terry Hahn, President, Chief Executive Officer, Principal Accounting
Officer, and Chief Financial Officer
In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
April 14, 2008
Xtreme Link, Inc., Registrant
By: /s/ Terry Hahn
Terry Hahn, President, Chief Executive Officer, Principal Accounting
Officer and Chief Financial Officer
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