Profit Planners Management (PPMT) 10-Q 13 Apr 15 2015 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Feb. 28, 2015	Apr. 10, 2015
Document And Entity Information
Entity Registrant Name	Profit Planners Management, Inc.
Entity Central Index Key	1468164
Amendment Flag	FALSE
Current Fiscal Year End Date	-26
Document Type	10-Q
Document Period End Date	28-Feb-15
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		54,302,788

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Feb. 28, 2015	31-May-14
Current assets:
Cash	$22,312	$39,982
Accounts receivable (net of allowance of $28,243 and $19,795, respectively)	79,041	99,940
Note receivable	72,000	72,000
Other current assets	32,276	39,590
Total current assets	205,629	251,512
Property and equipment:
Property and equipment	13,172	13,172
Less: accumulated depreciation	-10,075	-6,839
Net property and equipment	3,097	6,333
Total Assets	208,726	257,845
Current liabilities:
Accounts payable and accrued expenses	149,317	46,357
Accounts payable and accrued expenses - related parties	83,086	66,700
Accrued expenses - employee compensation	126,000	130,000
Accrued expenses - officer's compensation	509,774	373,925
Deferred revenue		20,000
Total Liabilities	868,177	636,982
Commitments and contingencies (Note 8)
Stockholders' Deficit
Preferred stock - $.001 par value; 50,000,000 shares authorized; none and none issued and outstanding in 2014 and 2013, respectively
Common stock - $.001 par value; 500,000,000 shares authorized; 54,302,788 and 54,052,788 shares issued and outstanding, respectively	54,302	54,052
Additional paid-in capital	252,893	248,144
Accumulated deficit	-966,646	-681,333
Net Stockholders' Deficit	-659,451	-379,137
Total Liabilities And Stockholders' Deficit	$208,726	$257,845

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Feb. 28, 2015	31-May-14
Statement of Financial Position [Abstract]
Net of allowance	$28,243	$19,795
Preferred stock; par value	$0.00	$0.00
Preferred stock; shares authorized	50,000,000	50,000,000
Preferred stock; shares issued
Preferred stock; shares outstanding
Common stock, par value	$0.00	$0.00
Common stock; shares authorized	500,000,000	500,000,000
Common stock, shares, issued	54,302,788	54,052,788
Common stock; shares outstanding	54,302,788	54,052,788

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Revenues:
Revenues - consulting and management services fees	$188,574	$142,576	$491,634	$507,982
Revenues - consulting and management services fees - related party		3,000		3,000
Cost of revenues - personnel and overhead costs	113,353	142,275	339,059	413,883
Gross Profit	75,221	3,301	152,575	97,099
Selling, general and administrative expenses:
Corporate management	58,996	71,337	190,071	158,843
Consulting and professional expenses	86,900	25,443	138,402	72,056
Other operating expenses	30,150	52,043	109,418	186,016
Total selling, general and administrative expenses	176,046	148,823	437,891	416,915
Net loss and comprehensive loss from continuing operations	-100,825	-145,522	-285,316	-319,816
Discontinued operations (Note 3)
Net loss and comprehensive loss from operations of Organics Innovations, Inc.		2,044		-29,714
Net loss and comprehensive loss	($100,825)	($143,478)	($285,316)	($349,530)
Net loss per weighted-average shares common stock - basic and diluted:
Continuing operations			($0.01)	($0.01)
Discontinued operations
Net loss			($0.01)	($0.01)
Weighted-average number of shares of common stock to be issued and outstanding - basic and diluted:	54,302,788	53,737,972	54,185,572	53,036,965

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flow (Unaudited) (USD $)	9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Statement of Cash Flows [Abstract]
Net cash used in operating activities	($22,670)	($166,275)
Net cash used in investing activities		-10,545
Net cash provided by financing activities	5,000	70,500
Net change in cash	-17,670	-106,320
Cash, beginning of period	39,982	127,984
Cash, end of period	$22,312	$21,664

Basic_of_Presentation

Basic of Presentation	9 Months Ended
	Feb. 28, 2015
Basis of Presentation [Abstract]
BASIS OF PRESENTATION	NOTE 1 - BASIS OF PRESENTATION
	The accompanying unaudited condensed consolidated financial information of Profit Planners Management, Inc. (the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation.
	The condensed consolidated financial information for the three months and nine months ended February 28, 2015 include the accounts of the Company and its wholly-owned subsidiaries and all intercompany balances and transactions have been eliminated in consolidation.
	The balance sheet at May 31, 2014 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (U.S. GAAP) for complete financial statements.
	The unaudited interim financial information should be read in conjunction with the Company’s Form 10-K, which contains the audited consolidated financial statements and notes thereto, together with Management’s Discussion and Analysis, for the year ended May 31, 2014. The interim results for the period ended February 28, 2015 are not necessarily indicative of the results for the full fiscal year.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	9 Months Ended
	Feb. 28, 2015
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Revenue recognition
	The Company’s revenues are derived from management, financial and accounting advisory service fees. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement that the services have been rendered to the customer, the sales price is fixed or determinable, and collectability is reasonably assured.
	Net loss per common share
	Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. Due to the loss for the periods presented, the shares are not included in the calculation as they would be anti-dilutive.
	Recently Issued Accounting Pronouncements
	In August 2014, the Financial Accounting Standards Board(FASB) issued Accounting Standards Update ASU 2014-15 on “Presentation of Financial Statements Going Concern (Subtopic 205-40) – Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. Currently, there is no guidance in U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments in this ASU provide that guidance. In doing so, the amendments are intended to reduce diversity in the timing and content of footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for public and nonpublic entities for annual periods ending after December 15, 2016. Early adoption is permitted. It is too early to assess the impact of the adoption of this new guidance on the Company’s financial position.
	In May 2014, the FASB issued ASU No. 2014-09: Revenue from Contracts with Customers. The standard outlines a five-step model for revenue recognition with the core principle being that a company should recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. Companies can choose to apply the standard using either the full retrospective approach or a modified retrospective approach. Under the modified approach, financial statements will be prepared for the year of adoption using the new standard but prior periods presented will not be adjusted. Instead, companies will recognize a cumulative catch-up adjustment to the opening balance of retained earnings. This new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company has not yet made a determination been made as to the method of application (full retrospective or modified retrospective). It is too early to assess whether the impact of the adoption of this new guidance will have a material impact on the Company's results of operations, financial position or cash flows.

Discontinued_Operations

Discontinued Operations	9 Months Ended
	Feb. 28, 2015
Discontinued Operations [Abstract]
DISCONTINUED OPERATIONS	NOTE 3 – DISCONTINUED OPERATIONS
	On May 9, 2014, the Company completed the sale of assets of its Organic Innovations subsidiary that consisted of three domain names, trademarks, websites and customer lists, to a third party pursuant to the terms of the Asset Purchase Agreement between the parties dated as of May 7, 2014 for an aggregate purchase price of $115,000. The purchase price was paid in cash of $18,000, the assumption of a Company obligation to the CEO for $25,000 and a promissory note for $72,000 carrying an interest rate of 8% per annum that matures on May 6, 2015. As of February 28, 2015, interest income of $4,387 accrued on the promissory note.
	As a result of the sale of its Organic Innovations business, management has reclassified the related activities to discontinued operations. For the nine months ended February 28, 2014, development costs totaling $29,714, have been reclassified under discontinued operations on the condensed consolidated statement of operations and comprehensive loss.

Going_Concern

Going Concern	9 Months Ended
	Feb. 28, 2015
Going Concern [Abstract]
GOING CONCERN	NOTE 4 – GOING CONCERN
	As reflected in the accompanying condensed consolidated financial statements, the Company had a net loss and comprehensive loss from continuing operations of $285,316 for the nine months ended February 28, 2015 and the Company has minimal historical evidence of positive earnings as evidenced by the accumulated deficit of $966,646 as of February 28, 2015. The historical trend of losses raises substantial doubt about the Company’s ability to continue as a going concern.
	Management believes that the actions presently being taken and the success of future operations will be sufficient to enable the Company to continue as a going concern. These actions include continuing to grow the Company’s revenues sufficient to support its cost structure through existing and new clients while actively seeking channels to develop business. Management may seek additional financing using equity or debt instruments in the future through additional private placement offerings.
	There can be no assurance that the actions taken and raising of equity will be successful or that the Company’s anticipated financing will be available in the future, at terms satisfactory to the Company. Failure to achieve the equity and financing at satisfactory terms and amounts could have a material adverse effect on the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Related_Party

Related Party	9 Months Ended
	Feb. 28, 2015
Related Party [Abstract]
RELATED PARTY	NOTE 5 – RELATED PARTY
	The Company has accrued officer’s salary expense payable to the CEO, who has a controlling ownership interest in the Company. The net compensation owed to the CEO totaled $509,774 and $373,925 as of February 28, 2015 and May 31, 2014, respectively.
	The Company has accrued compensation expense payable to a former Director of the Company for providing legal counsel services for $1,000 per month. The compensation obligations owed to the former Director totaled $25,000 and $16,000 as of February 28, 2015 and May 31, 2014, respectively. The Company also has net payable to affiliated companies totaling $58,086 and $50,700 as of February 28, 2015, and May 31, 2014, respectively for services performed in prior periods.

Equity

Equity	9 Months Ended
	Feb. 28, 2015
Equity [Abstract]
EQUITY	NOTE 6 – EQUITY
	In October 2014, the Company closed a private sale transaction with one investor who was subsequently appointed to the Board of Directors, through which the Company issued 250,000 shares of its common stock at a price of $.02 per share. The total proceeds to the Company from the October 2014 private sale was $5,000.

Income_Taxes

Income Taxes	9 Months Ended
	Feb. 28, 2015
Income Taxes [Abstract]
INCOME TAXES	NOTE 7 – INCOME TAXES
	The Company has not recorded any income tax expense or benefit for the three and nine months ended February 28, 2015 or 2014. Any taxable income generated will be offset by net operating losses (“NOL”) generated in previous years. At the present time, management cannot determine if the Company will be able to generate sufficient taxable income to realize the benefit of the NOL carryforwards; accordingly, a valuation allowance has been established to offset the asset.

Contingent_Employee_Bonus

Contingent Employee Bonus	9 Months Ended
	Feb. 28, 2015
Contingent Employee Bonus [Abstract]
CONTINGENT EMPLOYEE BONUS	NOTE 8 – CONTINGENT EMPLOYEE BONUS
	On January 1, 2014, the Company entered into a compensation agreement with an employee that provides for a bonus based upon certain performance requirements. Since inception of the compensation agreement, management has evaluated the results of the employee’s performance and determined that the likelihood of payment would be remote as the employee did not meet the minimum performance requirements.
	The Company agreed to bonus compensation of $130,000 as of May 31, 2014. The outstanding balance as of February 28, 2015 is $126,000.

Subsequent_Events

Subsequent Events	9 Months Ended
	Feb. 28, 2015
Subsequent Event [Abstract]
SUBSEQUENT EVENT	NOTE 9 – SUBSEQUENT EVENT
	Effective March 1, 2015, the Company entered into a lease agreement for its Corporate office in New York. The lease agreement expires on February 28, 2017. The monthly rent is $6,000 for the first twelve months and $6,195 for the last twelve months.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Feb. 28, 2015
Summary of Significant Accounting Policies [Abstract]
Revenue recognition	Revenue recognition
	The Company’s revenues are derived from management, financial and accounting advisory service fees. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement that the services have been rendered to the customer, the sales price is fixed or determinable, and collectability is reasonably assured.
Net loss per common share	Net loss per common share
	Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. Due to the loss for the periods presented, the shares are not included in the calculation as they would be anti-dilutive.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements
	In August 2014, the Financial Accounting Standards Board(FASB) issued Accounting Standards Update ASU 2014-15 on “Presentation of Financial Statements Going Concern (Subtopic 205-40) – Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. Currently, there is no guidance in U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments in this ASU provide that guidance. In doing so, the amendments are intended to reduce diversity in the timing and content of footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for public and nonpublic entities for annual periods ending after December 15, 2016. Early adoption is permitted. It is too early to assess the impact of the adoption of this new guidance on the Company’s financial position.
	In May 2014, the FASB issued ASU No. 2014-09: Revenue from Contracts with Customers. The standard outlines a five-step model for revenue recognition with the core principle being that a company should recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. Companies can choose to apply the standard using either the full retrospective approach or a modified retrospective approach. Under the modified approach, financial statements will be prepared for the year of adoption using the new standard but prior periods presented will not be adjusted. Instead, companies will recognize a cumulative catch-up adjustment to the opening balance of retained earnings. This new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company has not yet made a determination been made as to the method of application (full retrospective or modified retrospective). It is too early to assess whether the impact of the adoption of this new guidance will have a material impact on the Company's results of operations, financial position or cash flows.

Discontinued_Operations_Detail

Discontinued Operations (Details) (USD $)	0 Months Ended	9 Months Ended
	7-May-14	Feb. 28, 2014	Feb. 28, 2015	31-May-14
Discontinued Operations (Textual)
Sale of assets purchase price consideration	$115,000
Payment of purchase price was paid in cash	18,000
Obligation to CEO calculated under sale of assets	25,000
Promissory note receivable	72,000		72,000	72,000
Promissory note interest rate percentage	8.00%
Promissory note, Maturity date	6-May-15
Interest income accrued on promissory note			4,387
Development costs totaling		$29,714

Going_Concern_Details

Going Concern (Details) (USD $)	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014	31-May-14
Going Concern (Textual)
Net loss and comprehensive loss from continuing operations	($100,825)	($145,522)	($285,316)	($319,816)
Accumulated deficit	($966,646)		($966,646)		($681,333)

Related_Party_Details

Related Party (Details) (USD $)	Feb. 28, 2015	31-May-14
Related Party (Textual)
Net payable to affiliated companies	$58,086	$50,700
Compensation obligations owed to CEO	509,774	373,925
Director [Member]
Related Party (Textual)
Providing legal counsel services	1,000
Compensation obligations owed to CEO	$25,000	$16,000

Equity_Details

Equity (Details) (Board of Directors [Member], USD $)	1 Months Ended
	Oct. 31, 2014
	investor
Board of Directors [Member]
Equity (Textual)
Number of investor	1
Stock price	$0.02
Common stock shares issued	250,000
Proceed from private sale of common stock	$5,000

Contingent_Employee_Bonus_Deta

Contingent Employee Bonus (Details) (Deferred Bonus [Member], USD $)	Feb. 28, 2015	31-May-14
Deferred Bonus [Member]
Contingent Employee Bonus (Textual)
Accrued compensation		$130,000
Accrued bonus outstanding	$126,000

Subsequent_Events_Details

Subsequent Events (Details) (Subsequent Event [Member], Lease Agreements [Member], USD $)	0 Months Ended
	Mar. 01, 2015
Subsequent Event [Member] | Lease Agreements [Member]
Subsequent Event (Textual)
Lease agreement, Expiration date	28-Feb-17
Monthly rent first twelve months	$6,000
Monthly rent last twelve months	$6,195