RESUME IN MINUTES, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of Resume in Minutes, Inc.
(A development stage company)
Falls Church, Virginia
We have audited the accompanying balance sheets of Resume in Minutes, Inc. (a development stage company) as of December 31, 2009 and 2008, and the related statements of operations, stockholders’ equity (deficit) and cash flows for the year ended December 31, 2009, for the period from May 22, 2008 (inception) through December 31, 2008, and for the period from May 22, 2008 (inception) through December 31, 2009. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Resume in Minutes, Inc. as of December 31, 2009 and 2008 and the results of its operations and its cash flows for the year ended December 31, 2009, for the period from May 22, 2008 (inception) through December 31, 2008, and for the period from May 22, 2008 (inception) through December 31, 2009 in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming that Resume in Minutes, Inc. will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has limited financial resources, has minimal revenue and a deficit accumulated during the development stage, all of which raise substantial doubt about the Company’s ability to continue as a going concern. Management's plans in regards to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Li & Company, PC
Li & Company, PC
Skillman, New Jersey
May 10, 2010
RESUME IN MINUTES, INC.
(A Development Stage Company)
BALANCE SHEETS
| | December 31, 2009 | | | December 31, 2008 | |
| | | | | | |
ASSETS | | | | | | |
| | | | | | |
Current assets | | | | | | |
Cash | | $ | 2,318 | | | $ | 3,461 | |
| | | | | | | | |
| | | | | | | | |
Total assets | | $ | 2,318 | | | $ | 3,461 | |
| | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | | | | | | | | |
Current liabilities | | | | | | | | |
Accrued expenses | | $ | 6,725 | | | $ | - | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Total liabilities | | | 6,725 | | | | - | |
| | | | | | | | |
Stockholders’ equity (deficit) | | | | | | | | |
Preferred stock: $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding | | | - | | | | - | |
Common stock: $0.001 par value; 500,000,000 shares authorized; 2,108,000 shares issued and outstanding, respectively | | | 2,108 | | | | 2,108 | |
Additional paid-in capital | | | 5,588 | | | | 5,588 | |
Deficit accumulated during the development stage | | | (12,103 | ) | | | (4,235 | ) |
| | | | | | | | |
Total stockholders’ equity (deficit) | | | (4,407 | ) | | | 3,461 | |
| | | | | | | | |
Total liabilities and stockholders' equity (deficit) | | $ | 2,318 | | | $ | 3,461 | |
See accompanying notes to financial statements.
RESUME IN MINUTES, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
| | | | | | | | | |
| | For the Year Ended December 31, 2009 | | | For the period from May 22, 2008 (Inception) through December 31, 2008 | | | For the period from May 22, 2008 (Inception) through December 31, 2009 | |
| | | | | | | | | |
Revenue Earned During the Development Stage | | $ | - | | | $ | 636 | | | $ | 636 | |
| | | | | | | | | | | | |
Operating Expenses | | | | | | | | | | | | |
Professional fees | | | 6,250 | | | | - | | | | 6,250 | |
General and administrative | | | 1,618 | | | | 4,871 | | | | 6,489 | |
| | | | | | | | | | | | |
Total Operating Expenses | | | 7,868 | | | | 4,871 | | | | 12,739 | |
| | | | | | | | | | | | |
Loss before income taxes | | | (7,868 | ) | | | (4,235 | ) | | | (12,103 | ) |
| | | | | | | | | | | | |
Provision for income taxes | | | - | | | | - | | | | - | |
| | | | | | | | | | | | |
Net loss | | $ | (7,868 | ) | | $ | (4,235 | ) | | $ | (12,103 | ) |
| | | | | | | | | | | | |
Net loss per common share - basic and diluted | | $ | (0.00 | ) | | $ | 0.00 | | | $ | (0.01 | ) ) |
| | | | | | | | | | | | |
Weighted average number of common shares outstanding – basic and diluted | | | 2,108,000 | | | | 1,484,136 | | | | 1,821,136 | |
See accompanying notes to financial statements.
RESUME IN MINUTES, INC.
(A Development Stage Company)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
For the period from May 22, 2008 (inception) through December 31, 2009
| | Common Stock | | | Additional | | | Deficit Accumulated During the | | | Total Stockholders' | |
| | Shares | | | Amount | | | Paid in Capital | | | Development Stage | | | Equity (Deficit) | |
May 22, 2008 (Inception) | | | 2,000,000 | | | $ | 2,000 | | | $ | - | | | $ | - | | | $ | 2,000 | |
| | | | | | | | | | | | | | | | | | | | |
Capital contribution | | | | | | | | | | | 296 | | | | | | | | 296 | |
| | | | | | | | | | | | | | | | | | | | |
Shares issued at $0.05 from August 12, 2008 through September 18, 2008 | | | 108,000 | | | | 108 | | | | 5,292 | | | | | | | | 5,400 | |
| | | | | | | | | | | | | | | | | | | | |
Net loss | | | | | | | | | | | | | | | (4,235 | ) | | | (4,235 | ) |
| | | | | | | | | | | | | | | | | | | | |
Balance, December 31, 2008 | | | 2,108,000 | | | | 2,108 | | | | 5,588 | | | | (4,235 | ) | | | 3,461 | |
| | | | | | | | | | | | | | | | | | | | |
Net loss | | | | | | | | | | | - | | | | (7,868 | ) | | | (7,868 | ) |
| | | | | | | | | | | | | | | | | | | | |
Balance, December 31, 2009 | | | 2,108,000 | | | $ | 2,108 | | | $ | 5,588 | | | $ | (12,103 | ) | | $ | (4,407 | ) |
See accompanying notes to financial statements.
RESUME IN MINUTES, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
| | For the Fiscal Year Ended December 31, 2009 | | | For the period from May 22, 2008 (Inception) through December 31, 2008 | | | For the period from May 22, 2008 (Inception) through December 31, 2009 | |
| | | | | | | | | |
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | |
Net loss | | $ | (7,868 | ) | | $ | (4,235 | ) | | $ | (12,103 | ) |
Common stock compensation | | | - | | | | 2,000 | | | | 2,000 | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | |
Increase in accrued expenses | | | 6,725 | | | | - | | | | 6,725 | |
| | | | | | | | | | | | |
Net cash used in operating activities | | | (1,143 | ) | | | (2,235 | ) | | | (3,378 | ) |
| | | | | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | |
Capital contribution | | | - | | | | 296 | | | | 296 | |
Proceeds from sale of common stock | | | - | | | | 5,400 | | | | 5,4,00 | |
| | | | | | | | | | | | |
Cash provided by financing activities | | | - | | | | 5,696 | | | | 5,696 | |
| | | | | | | | | | | | |
Net change in cash | | | (1,143 | ) | | | 3,461 | | | | 2,318 | |
Cash at beginning of the period | | | 3,461 | | | | - | | | | - | |
| | | | | | | | | | | | |
Cash at end of the period | | $ | 2,318 | | | $ | 3,461 | | | $ | 2,318 | |
| | | | | | | | | | | | |
See accompanying notes to financial statements.
RESUME IN MINUTES, INC.
(A Development Stage Company)
December 31, 2009 and 2008
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - ORGANIZATION AND OPERATIONS
Resume in Minutes, Inc. (“Resume” or the “Company”), a development stage company, was incorporated on May 22, 2008 under the laws of the State of Nevada. Initial operations have included organization and incorporation, target market identification, marketing plans, and capital formation. A substantial portion of the Company’s activities has involved developing a business plan and establishing contacts and visibility in the marketplace. The Company has generated minimal revenues since inception. The Company plans to offer target customers who need a complete all-in-one resume building service a special and unique opportunity to obtain a complete suite of online resume building services.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Development stage company
The Company is a development stage company as defined by section 810-10-20 of the FASB Accounting Standards Codification. Although the Company has recognized some nominal amount of revenues since inception, the Company is still devoting substantially all of its efforts on establishing the business and its planned principal operations have not commenced. All losses accumulated since inception have been considered as part of the Company’s development stage activities.
Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.
Cash equivalents
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.
Fair value of financial instruments
The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarch y gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:
Level 1 | Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. |
Level 2 | Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. |
Level 3 | Pricing inputs that are generally observable inputs and not corroborated by market data. |
The carrying amounts of the Company’s financial assets and liabilities, such as cash and accrued expenses approximate its fair values because of the short maturity of this instrument.
The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value at December 31, 2009, nor gains or losses are reported in the statement of operations that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date for the year ended December 31, 2009 and for the period from May 22, 2008 (inception) through December 31, 2008.
Revenue recognition
The Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company will recognize revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured.
Income taxes
The Company follows Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in whi ch those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Operations in the period that includes the enactment date.
The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25.addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25,
the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of Section 740-10-25.
Net loss per common share
Net loss per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. There were no potentially dilutive shares outstanding as of December 31, 2009 or 2008.
Recently Issued Accounting Pronouncements
In June 2003, the SEC adopted final rules under Section 404 of the Sarbanes-Oxley Act of 2002 (“Section 404”), as amended by SEC Release No. 33-9072 on October 13, 2009. Commencing with the Company’s Annual Report for the fiscal year ended December 31, 2010, the Company is required to include a report of management on the Company’s internal control over financial reporting. The internal control report must include a statement of management’s responsibility for establishing and maintaining adequate internal control over financial reporting for the Company; of management’s assessment of the effectiveness of the Company’s internal control over financial reporting as of year end; of the framework used by management to evaluate the effectiveness of the Company’s internal control over fin ancial reporting; and that the Company’s independent accounting firm has issued an attestation report on management’s assessment of the Company’s internal control over financial reporting, which report is also required to be filed as part of the Annual Report on Form 10-K.
In August 2009, the FASB issued the FASB Accounting Standards Update No. 2009-04 “Accounting for Redeemable Equity Instruments - Amendment to Section 480-10-S99” which represents an update to section 480-10-S99, distinguishing liabilities from equity, per EITF Topic D-98, Classification and Measurement of Redeemable Securities. The Company does not expect the adoption of this update to have a material impact on its financial position, results of operations or cash flows.
In August 2009, the FASB issued the FASB Accounting Standards Update No. 2009-05 “Fair Value Measurement and Disclosures Topic 820 – Measuring Liabilities at Fair Value”, which provides amendments to subtopic 820-10, Fair Value Measurements and Disclosures – Overall, for the fair value measurement of liabilities. This update provides clarification that in circumstances in which a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using one or more of the following techniques: 1. A valuation technique that uses: a. The quoted price of the identical liability when traded as an asset, and b. Quoted prices for similar liabilities or similar liabilities when t raded as assets. 2. Another valuation technique that is consistent with the principles of topic 820; two examples would be an income approach, such as a present value technique, or a market approach, such as a technique that is based on the amount at the measurement date that the reporting entity would pay to transfer the identical liability or would receive to enter into the identical liability. The amendments in this update also clarify that when estimating the fair value of a liability, a reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of the liability. The amendments in this update also clarify that both a quoted price in an active market for the identical liability when traded as an asset in an active market when no adjustments to the quoted price of the asset are required are Level 1 fair value measurements. The Company does not expect the adoption of this update to have a materia l impact on its financial position, results of operations or cash flows.
In September 2009, the FASB issued the FASB Accounting Standards Update No. 2009-08 “Earnings Per Share – Amendments to Section 260-10-S99”,which represents technical corrections to topic 260-10-S99, Earnings per share, based on EITF Topic D-53, Computation of Earnings Per Share for a Period that includes a Redemption or an Induced Conversion of a Portion of a Class of Preferred Stock and EITF Topic D-42, The Effect of the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock. The Company does not expect the adoption of this update to have a material impact on its financial position, results of opera tions or cash flows.
In September 2009, the FASB issued the FASB Accounting Standards Update No. 2009-09 “Accounting for Investments-Equity Method and Joint Ventures and Accounting for Equity-Based Payments to Non-Employees”. This update represents a correction to Section 323-10-S99-4, Accounting by an Investor for Stock-Based Compensation Granted to Employees of an Equity Method Investee. Additionally, it adds observer comment Accounting Recognition for Certain Transactions Involving Equity Instruments Granted to Other Than Employees to the Codification. The Company does not expect the adoption to have a material impact on its financial position, results of operations or cash flows.
In September 2009, the FASB issued the FASB Accounting Standards Update No. 2009-12 “Fair Value Measurements and Disclosures Topic 820 – Investment in Certain Entities That Calculate Net Assets Value Per Share (or Its Equivalent)”, which provides amendments to Subtopic 820-10, Fair Value Measurements and Disclosures-Overall, for the fair value measurement of investments in certain entities that calculate net asset value per share (or its equivalent). The amendments in this update permit, as a practical expedient, a reporting entity to measure the fair value of an investment that is within the scope of the amendments in this update on the basis of the net asset value per share of the investment (or its equivalent) if the net asset value of the investme nt (or its equivalent) is calculated in a manner consistent with the measurement principles of Topic 946 as of the reporting entity’s measurement date, including measurement of all or substantially all of the underlying investments of the investee in accordance with Topic 820. The amendments in this update also require disclosures by major category of investment about the attributes of investments within the scope of the amendments in this update, such as the nature of any restrictions on the investor’s ability to redeem its investments a the measurement date, any unfunded commitments (for example, a contractual commitment by the investor to invest a specified amount of additional capital at a future date to fund investments that will be make by the investee), and the investment strategies of the investees. The major category of investment is required to be determined on the basis of the nature and risks of the investment in a manner consistent with the guidance for major security types in U.S. G AAP on investments in debt and equity securities in paragraph 320-10-50-1B. The disclosures are required for all investments within the scope of the amendments in this update regardless of whether the fair value of the investment is measured using the practical expedient. The Company does not expect the adoption to have a material impact on its financial position, results of operations or cash flows.
In January 2010, the FASB issued the FASB Accounting Standards Update No. 2010-01 “Equity Topic 505 – Accounting for Distributions to Shareholders with Components of Stock and Cash”, which clarify that the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a potential limitation on the total amount of cash that all shareholders can elect to receive in the aggregate is considered a share issuance that is reflected in EPS prospectively and is not a stock dividend for purposes of applying Topics 505 and 260 (Equity and Earnings Per Share (“EPS”)). Those distributions should be accounted for and included in EPS calculations in accordance with paragraphs 480-10-25- 14 and 260-10-45 - -45 through 45-47 of the FASB Accounting Standards codification. The amendments in this Update also provide a technical correction to the Accounting Standards Codification. The correction moves guidance that was previously included in the Overview and Background Section to the definition of a stock dividend in the Master Glossary. That guidance indicates that a stock dividend takes nothing from the property of the corporation and adds nothing to the interests of the stockholders. It also indicates that the proportional interest of each shareholder remains the same, and is a key factor to consider in determining whether a distribution is a stock dividend.
In January 2010, the FASB issued the FASB Accounting Standards Update No. 2010-02 “Consolidation Topic 810 – Accounting and Reporting for Decreases in Ownership of a Subsidiary – a Scope Clarification”, which provides amendments to Subtopic 810-10 and related guidance within U.S. GAAP to clarify that the scope of the decrease in ownership provisions of the Subtopic and related guidance applies to the following:
1. A subsidiary or group of assets that is a business or nonprofit activity
2. A subsidiary that is a business or nonprofit activity that is transferred to an equity method investee or joint venture
3. An exchange of a group of assets that constitutes a business or nonprofit activity for a noncontrolling interest in an entity (including an equity method investee or joint venture).
The amendments in this Update also clarify that the decrease in ownership guidance in Subtopic 810-10 does not apply to the following transactions even if they involve businesses:
1. Sales of in substance real estate. Entities should apply the sale of real estate guidance in Subtopics 360-20 (Property, Plant, and Equipment) and 976-605 (Retail/Land) to such transactions.
2. Conveyances of oil and gas mineral rights. Entities should apply the mineral property conveyance and related transactions guidance in Subtopic 932-360 (Oil and Gas-Property, Plant, and Equipment) to such transactions.
If a decrease in ownership occurs in a subsidiary that is not a business or nonprofit activity, an entity first needs to consider whether the substance of the transaction causing the decrease in ownership is addressed in other U.S. GAAP, such as transfers of financial assets, revenue recognition, exchanges of nonmonetary assets, sales of in substance real estate, or conveyances of oil and gas mineral rights, and apply that guidance as applicable. If no other guidance exists, an entity should apply the guidance in Subtopic 810-10.
Management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.
NOTE 3 – GOING CONCERN
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As reflected in the accompanying financial statements, the Company had a deficit accumulated during the development stage of $12,103 at December 31, 2009, a net loss from operations of $7,868 and net cash used in operations of $1,143 for the year ended December 31, 2009, respectively, with minimal revenues since inception.
While the Company is attempting to commence operations and produce revenues, the Company’s cash position may not be significant enough to support the Company’s daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to increase revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate revenues.
The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
NOTE 4 – STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock
Preferred stock includes 10,000,000 shares authorized at a par value of $0.001, of which none are issued and outstanding.
Common stock
Common stock includes 500,000,000 shares authorized at a par value of $0.001, of which 2,000,000 have been issued to its Chief Executive Officer at their par value of $0.001 per share or $2,000 for compensation.
From August 12, 2008 through September 18, 2008, the Company sold 108,000 shares of its common stock at $0.05 per share to 6 individuals for a total of $5,400.
NOTE 5 – INCOME TAXES
At December 31, 2009, the Company had net operating loss (“NOL”) carry–forwards for Federal income tax purposes of $12,103 that may be offset against future taxable income through 2029. No tax benefit has been reported with respect to these net operating loss carry-forwards in the accompanying financial statements because the Company believes that the realization of the Company’s net deferred tax assets of approximately $4,115 was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are fully offset by a full valuation allowance of $4,115.
Deferred tax assets consist primarily of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realizability. The valuation allowance increased approximately $2,675 and $1,440 for the year ended December 31, 2009 and for the period from May 22, 2008 (inception) through December 31, 2008.
Components of deferred tax assets as of December 31, 2009 and 2008 are as follows:
| | December 31, 2009 | | | December 31, 2008 | |
Net deferred tax assets – Non-current: | | | | | | | | |
| | | | | | | | |
Expected income tax benefit from NOL carry-forwards | | $ | 4,115 | | | $ | 1,440 | |
Less valuation allowance | | | (4,115 | ) | | | (1,440 | ) |
| | | | | | |
Deferred tax assets, net of valuation allowance | | $ | - | | | $ | - | |
Income taxes in the statements of operations
A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows:
| | For the Year Ended December 31, 2009 | | | For the from May 22, 2008 (inception) through December 31, 2008 | |
| | | | | | | | |
Federal statutory income tax rate | | | 34.0 | % | | | 34.0 | % |
Change in valuation allowance on net operating loss carry-forwards | | | (34.0 | )% | | | (34.0 | )% |
Effective income tax rate | | | 0.0 | % | | | 0.0 | % |
NOTE 6 – RELATED PARTY TRANSACTION
Free office space
The Company has been provided office space by its Chief Executive Officer at no cost. The management determined that such cost is nominal and did not recognize the rent expense in its financial statement.
Capital contribution
In May 2008 the Company’s Chief Executive Officer contributed $296 for the general working capital.
NOTE 7 – SUBSEQUENT EVENTS
The Company has evaluated all events that occur after the balance sheet date of December 31, 2009 through May 10, 2010, the date when the financial statements were issued to determine if they must be reported. The Management of the Company determined that the following are reportable subsequent events to be disclosed.
(i) Sale of common stock
From January 5, 2010 through February 22, 2010, the Company sold 695,000 shares of its common stock in a private placement at $0.05 per share to 34 individuals for a total of $34,750.
(ii) Entry into an employment agreement
On March 1, 2010, the Company entered into an employment agreement (“Employment Agreement) with its president and chief executive officer (“Employee”), which requires that the Employee to be paid a minimum of $500 per month for three (3) years from date of signing. Employee or the Company has the right to terminate the Employment Agreement upon thirty (30) days’ notice to the other party.
RESUME IN MINUTES, INC.
(A Development Stage Company)
BALANCE SHEETS
| | March 31, 2010 | | | December 31, 2009 | |
| | (Unaudited) | | | | |
ASSETS | | | | | | |
| | | | | | |
Current assets | | | | | | |
Cash | | $ | 35,993 | | | $ | 2,318 | |
| | | | | | | | |
| | | | | | | | |
Total assets | | $ | 35,993 | | | $ | 2,318 | |
| | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | | | | | | | | |
Current liabilities | | | | | | | | |
Accrued expenses | | $ | 7,500 | | | $ | 6,725 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Total liabilities | | | 7,500 | | | | 6,725 | |
| | | | | | | | |
Stockholders’ equity (deficit) | | | | | | | | |
Preferred stock: $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding | | | - | | | | - | |
Common stock: $0.001 par value; 500,000,000 shares authorized; 2,803,000 and 2,108,000 shares issued and outstanding, respectively | | | 2,803 | | | | 2,108 | |
Additional paid-in capital | | | 39,643 | | | | 5,588 | |
Deficit accumulated during the development stage | | | (13,953 | ) | | | (12,103 | ) |
| | | | | | | | |
Total stockholders’ equity (deficit) | | | 28,493 | | | | (4,407 | ) |
| | | | | | | | |
Total liabilities and stockholders' equity (deficit) | | $ | 35,993 | | | $ | 2,318 | |
See accompanying notes to financial statements.
RESUME IN MINUTES, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
| | | | | | | | | |
| | For the three Months ended March 31, 2010 | | | For the three Months ended March 31, 2009 | | | For the period from May 22, 2008 (Inception) through March 31, 2010 | |
| | | | | | | | | |
Revenues Earned During the Development Stage | | $ | - | | | $ | - | | | $ | 636 | |
| | | | | | | | | | | | |
Operating Expenses | | | | | | | | | | | | |
Professional fees | | | - | | | | - | | | | 6,250 | |
General and administrative | | | 1,850 | | | | 1,013 | | | | 8,339 | |
| | | | | | | | | | | | |
Total Operating Expenses | | | 1,850 | | | | 1,013 | | | | 14,589 | |
| | | | | | | | | | | | |
Loss before income taxes | | | (1,850 | ) | | | (1,013 | ) | | | (13,953 | ) |
| | | | | | | | | | | | |
Provision for income taxes | | | - | | | | - | | | | - | |
| | | | | | | | | | | | |
Net loss | | $ | (1,850 | ) | | $ | (1,013 | ) | | $ | (13,953 | ) |
| | | | | | | | | | | | |
Net loss per common share - basic and diluted | | $ | (0.00 | ) | | $ | 0.00 | | | $ | (0.01 | ) |
| | | | | | | | | | | | |
Weighted average number of common shares outstanding – basic and diluted | | | 2,333,278 | | | | 2,108,000 | | | | 1,878,416 | |
See accompanying notes to financial statements.
RESUME IN MINUTES, INC.
(A Development Stage Company)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
For the period from May 22, 2008 (inception) through March 31, 2010
(Unaudited)
| | Common Stock | | | Additional | | | Deficit Accumulated During the | | | Total Stockholders' | |
| | Shares | | | Amount | | | Paid in Capital | | | Development Stage | | | Equity (Deficit) | |
May 22, 2008 (Inception) | | | 2,000,000 | | | $ | 2,000 | | | $ | - | | | $ | - | | | $ | 2,000 | |
| | | | | | | | | | | | | | | | | | | | |
Capital contribution | | | | | | | | | | | 296 | | | | | | | | 296 | |
| | | | | | | | | | | | | | | | | | | | |
Shares issued at $0.05 from August 12, 2008 through September 18, 2008 | | | 108,000 | | | | 108 | | | | 5,292 | | | | | | | | 5,400 | |
| | | | | | | | | | | | | | | | | | | | |
Net loss | | | | | | | | | | | | | | | (4,235 | ) | | | (4,235 | ) |
| | | | | | | | | | | | | | | | | | | | |
Balance, December 31, 2008 | | | 2,108,000 | | | | 2,108 | | | | 5,588 | | | | (4,235 | ) | | | 3,461 | |
| | | | | | | | | | | | | | | | | | | | |
Net loss | | | | | | | | | | | - | | | | (7,868 | ) | | | (7,868 | ) |
| | | | | | | | | | | | | | | | | | | | |
Balance, December 31, 2009 | | | 2,108,000 | | | | 2,108 | | | | 5,588 | | | | (12,103 | ) | | | (4,407 | ) |
| | | | | | | | | | | | | | | | | | | | |
Shares issued at $0.05 per share from January 5,2010 through March 17, 2010 | | | 695,000 | | | | 695 | | | | 34,055 | | | | | | | | 34,750 | |
| | | | | | | | | | | | | | | | | | | | |
Net loss | | | | | | | | | | | - | | | | (1,850 | ) | | | (1,850 | ) |
| | | | | | | | | | | | | | | | | | | | |
Balance, March 31, 2010 | | | 2,803,000 | | | $ | 2,803 | | | $ | 39,643 | | | $ | (13,953 | ) | | $ | 28,493 | |
| | | | | | | | | | | | | | | | | | | | |
See accompanying notes to financial statements.
RESUME IN MINUTES, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
| | For the three Months ended March 31, 2010 | | | For the three Months ended March 31, 2009 | | | For the period from May 22, 2008 (Inception) through March 31, 2010 | |
| | | | | | | | | |
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | |
Net loss | | $ | (1,850 | ) | | $ | (1,013 | ) | | $ | (13,953 | ) |
Common stock compensation | | | - | | | | - | | | | 2,000 | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | |
Increase in accrued expenses | | | 775 | | | | - | | | | 7,500 | |
| | | | | | | | | | | | |
Net cash used in operating activities | | | (1,075 | ) | | | (1,013 | ) | | | (4,453 | ) |
| | | | | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | |
Capital contribution | | | - | | | | - | | | | 296 | |
Proceeds from sale of common stock | | | 34,750 | | | | - | | | | 40,150 | |
| | | | | | | | | | | | |
Cash provided by financing activities | | | 34,750 | | | | - | | | | 40,446 | |
| | | | | | | | | | | | |
Net change in cash | | | 33,675 | | | | (1,013 | ) | | | 35,993 | |
Cash at beginning of the period | | | 2,318 | | | | 3,461 | | | | - | |
| | | | | | | | | | | | |
Cash at end of the period | | $ | 35,993 | | | $ | 2,448 | | | $ | 35,993 | |
| | | | | | | | | | | | |
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES | | | | | | | | | | | | |
Cash Paid For: | | | | | | | | | | | | |
Interest | | $ | - | | | $ | - | | | $ | - | |
Income Taxes | | $ | - | | | $ | - | | | $ | - | |
| | | | | | | | | | | | |
See accompanying notes to financial statements.
(A Development Stage Company)
March 31, 2010 and 2009
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - ORGANIZATION AND OPERATIONS
Resume in Minutes, Inc. (“Resume” or the “Company”), a development stage company, was incorporated on May 22, 2008 under the laws of the State of Nevada. Initial operations have included organization and incorporation, target market identification, marketing plans, and capital formation. A substantial portion of the Company’s activities has involved developing a business plan and establishing contacts and visibility in the marketplace. The Company has generated minimal revenues since inception. The Company plans to offer target customers who need a complete all-in-one resume building service a special and unique opportunity to obtain a complete suite of online resume building services.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not nece ssarily indicative of the results for the full fiscal year. These financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2009 and notes thereto contained in the information filed as part of the Company’s Registration Statement on Form S-1, of which this Prospectus is a part.
Development stage company
The Company is a development stage company as defined by section 810-10-20 of the FASB Accounting Standards Codification. Although the Company has recognized some nominal amount of revenues since inception, the Company is still devoting substantially all of its efforts on establishing the business and its planned principal operations have not commenced. All losses accumulated since inception have been considered as part of the Company’s development stage activities.
Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.
Cash equivalents
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.
Fair value of financial instruments
The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:
Level 1 | Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. |
Level 2 | Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. |
Level 3 | Pricing inputs that are generally observable inputs and not corroborated by market data. |
The carrying amounts of the Company’s financial assets and liabilities, such as cash and accrued expenses approximate its fair values because of the short maturity of this instrument.
The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value at March 31, 2010 or 2009, nor gains or losses are reported in the statement of operations that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date for the interim period ended March 31, 2010 and 2009 and for the period from May 22, 2008 (inception) through March 31, 2010.
Revenue recognition
The Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company will recognize revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured.
Income taxes
The Company follows Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are meas ured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Operations in the period that includes the enactment date.
The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25.addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides gui dance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of Section 740-10-25.
Net loss per common share
Net loss per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. There were no potentially dilutive shares outstanding as of March 31, 2010 or 2009.
Recently Issued Accounting Pronouncements
In June 2003, the Securities and Exchange Commission (“SEC”) adopted final rules under Section 404 of the Sarbanes-Oxley Act of 2002 (“Section 404”), as amended by SEC Release No. 33-9072 on October 13, 2009. Under the provisions of Section 404 of the Sarbanes-Oxley Act, public companies and their independent auditors are each required to report to the public on the effectiveness of a company’s internal controls. The smallest public companies with a public float below $75 million have been given extra time to design, implement and document these internal controls before their auditors are required to attest to the effectiveness of these controls. This extension of time will expire beginning with the annual reports of companies with fiscal years ending on or after June 15, 2010. Commencing with its annual report for the year ending December 31, 2010, the Company will be required to include a report of management on its internal control over financial reporting. The internal control report must include a statement
of management’s responsibility for establishing and maintaining adequate internal control over its financial reporting; |
of management’s assessment of the effectiveness of its internal control over financial reporting as of year end; and |
of the framework used by management to evaluate the effectiveness of the Company’s internal control over financial reporting. |
Furthermore, it is required to file the auditor’s attestation report separately on the Company’s internal control over financial reporting on whether it believes that the Company has maintained, in all material respects, effective internal control over financial reporting.
In January 2010, the FASB issued the FASB Accounting Standards Update No. 2010-01 “Equity Topic 505 – Accounting for Distributions to Shareholders with Components of Stock and Cash”, which clarify that the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a potential limitation on the total amount of cash that all shareholders can elect to receive in the aggregate is considered a share issuance that is reflected in EPS prospectively and is not a stock dividend for purposes of applying Topics 505 and 260 (Equity and Earnings Per Share (“EPS”)). Those distributions should be accounted for and included in EPS calculations in accordance with paragraphs 480-10-25-14 and 260-10-45- 45 through 45-47 of the
FASB Accounting Standards codification. The amendments in this Update also provide a technical correction to the Accounting Standards Codification. The correction moves guidance that was previously included in the Overview and Background Section to the definition of a stock dividend in the Master Glossary. That guidance indicates that a stock dividend takes nothing from the property of the corporation and adds nothing to the interests of the stockholders. It also indicates that the proportional interest of each shareholder remains the same, and is a key factor to consider in determining whether a distribution is a stock dividend. The amendments in this Update are effective for interim and annual periods ending on or after December 15, 2009, and should be applied on a retrospective basis .
In January 2010, the FASB issued the FASB Accounting Standards Update No. 2010-02 “Consolidation Topic 810 – Accounting and Reporting for Decreases in Ownership of a Subsidiary – a Scope Clarification”, which provides amendments to Subtopic 810-10 and related guidance within U.S. GAAP to clarify that the scope of the decrease in ownership provisions of the Subtopic and related guidance applies to the following:
| 1. | A subsidiary or group of assets that is a business or nonprofit activity |
| 2. | A subsidiary that is a business or nonprofit activity that is transferred to an equity method investee or joint venture |
| 3. | An exchange of a group of assets that constitutes a business or nonprofit activity for a noncontrolling interest in an entity (including an equity method investee or joint venture). |
The amendments in this Update also clarify that the decrease in ownership guidance in Subtopic 810-10 does not apply to the following transactions even if they involve businesses:
| 1. | Sales of in substance real estate. Entities should apply the sale of real estate guidance in Subtopics 360-20 (Property, Plant, and Equipment) and 976-605 (Retail/Land) to such transactions. |
| 2. | Conveyances of oil and gas mineral rights. Entities should apply the mineral property conveyance and related transactions guidance in Subtopic 932-360 (Oil and Gas-Property, Plant, and Equipment) to such transactions. |
If a decrease in ownership occurs in a subsidiary that is not a business or nonprofit activity, an entity first needs to consider whether the substance of the transaction causing the decrease in ownership is addressed in other U.S. GAAP, such as transfers of financial assets, revenue recognition, exchanges of nonmonetary assets, sales of in substance real estate, or conveyances of oil and gas mineral rights, and apply that guidance as applicable. If no other guidance exists, an entity should apply the guidance in Subtopic 810-10. The amendments in this Update are effective beginning in the first interim or annual reporting period ending on or after December 15, 2009.
In January 2010, the FASB issued the FASB Accounting Standards Update No. 2010-06 “Fair Value Measurements and Disclosures (Topic 820) Improving Disclosures about Fair Value Measurements”, which provides amendments to Subtopic 820-10 that require new disclosures as follows:
1. | Transfers in and out of Levels 1 and 2. A reporting entity should disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers. |
2. | Activity in Level 3 fair value measurements. In the reconciliation for fair value measurements using significant unobservable inputs (Level 3), a reporting entity should present separately information about purchases, sales, issuances, and settlements (that is, on a gross basis rather than as one net number). |
This Update provides amendments to Subtopic 820-10 that clarify existing disclosures as follows:
1. | Level of disaggregation. A reporting entity should provide fair value measurement disclosures for each class of assets and liabilities. A class is often a subset of assets or liabilities within a line item in the statement of financial position. A reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities. |
2. | Disclosures about inputs and valuation techniques. A reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements. Those disclosures are required for fair value measurements that fall in either Level 2 or Level 3. |
This Update also includes conforming amendments to the guidance on employers' disclosures about postretirement benefit plan assets (Subtopic 715-20). The conforming amendments to Subtopic 715-20 change the terminology from major categories of assets to classes of assets and provide a cross reference to the guidance in Subtopic 820-10 on how to determine appropriate classes to present
fair value disclosures. The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years.
In February 2010, the FASB issued the FASB Accounting Standards Update No. 2010-09 “Subsequent Events (Topic 855) Amendments to Certain Recognition and Disclosure Requirements”, which provides amendments to Subtopic 855-10 as follows:
| 1. | An entity that either (a) is an SEC filer or(b) is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets) is required to evaluate subsequent events through the date that the financial statements are issued. If an entity meets neither of those criteria, then it should evaluate subsequent events through the date the financial statements are available to be issued. |
| 2. | An entity that is an SEC filer is not required to disclose the date through which subsequent events have been evaluated. This change alleviates potential conflicts between Subtopic 855-10 and the SEC's requirements. |
| 3. | The scope of the reissuance disclosure requirements is refined to include revised financial statements only. The term revised financial statements is added to the glossary of Topic 855. Revised financial statements include financial statements revised either as a result of correction of an error or retrospective application of U.S. generally accepted accounting principles. |
All of the amendments in this Update are effective upon issuance of the final Update, except for the use of the issued date for conduit debt obligors. That amendment is effective for interim or annual periods ending after June 15, 2010.
In April 2010, the FASB issued the FASB Accounting Standards Update No. 2010-17 “Revenue Recognition — Milestone Method (Topic 605) Milestone Method of Revenue Recognition”, which provides guidance on the criteria that should be met for determining whether the milestone method of revenue recognition is appropriate. A vendor can recognize consideration that is contingent upon achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone meets all criteria to be considered substantive.
Determining whether a milestone is substantive is a matter of judgment made at the inception of the arrangement. The following criteria must be met for a milestone to be considered substantive. The consideration earned by achieving the milestone should:
| 1. | Be commensurate with either of the following: |
| a. | The vendor's performance to achieve the milestone |
| b. | The enhancement of the value of the item delivered as a result of a specific outcome resulting from the vendor's performance to achieve the milestone |
| 2. | Relate solely to past performance |
| 3. | Be reasonable relative to all deliverables and payment terms in the arrangement. |
A milestone should be considered substantive in its entirety. An individual milestone may not be bifurcated. An arrangement may include more than one milestone, and each milestone should be evaluated separately to determine whether the milestone is substantive. Accordingly, an arrangement may contain both substantive and nonsubstantive milestones.
A vendor's decision to use the milestone method of revenue recognition for transactions within the scope of the amendments in this Update is a policy election. Other proportional revenue recognition methods also may be applied as long as the application of those other methods does not result in the recognition of consideration in its entirety in the period the milestone is achieved.
A vendor that is affected by the amendments in this Update is required to provide all of the following disclosures:
1. | A description of the overall arrangement |
2. | A description of each milestone and related contingent consideration |
3. | A determination of whether each milestone is considered substantive |
4. | The factors that the entity considered in determining whether the milestone or milestones are substantive |
5. | The amount of consideration recognized during the period for the milestone or milestones. |
The amendments in this Update are effective on a prospective basis for milestones achieved in fiscal years, and interim periods within those years, beginning on or after June 15, 2010. Early adoption is permitted. If a vendor elects early adoption and the period of adoption is not the beginning of the entity's fiscal year, the entity should apply the amendments retrospectively from the beginning of the year of adoption. Additionally, a vendor electing early adoption should disclose the following information at a minimum for all previously reported interim periods in the fiscal year of adoption:
2. | Income before income taxes |
5. | The effect of the change for the captions presented. |
A vendor may elect, but is not required, to adopt the amendments in this Update retrospectively for all prior periods.
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements.
NOTE 3 – GOING CONCERN
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As reflected in the accompanying financial statements, the Company had a deficit accumulated during the development stage of $13,953 at March 31, 2010, a net loss from operations of $1,850 and net cash used in operations of $1,075 for the interim period ended March 31, 2010, respectively, with nominal revenues earned since inception.
While the Company is attempting to commence operations and produce revenues, the Company’s cash position may not be significant enough to support the Company’s daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to increase revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate revenues.
The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
NOTE 4 – STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock
Preferred stock includes 10,000,000 shares authorized at a par value of $0.001, of which none are issued or outstanding.
Common stock
Common stock includes 500,000,000 shares authorized at a par value of $0.001, of which 2,000,000 have been issued to its Chief Executive Officer at their par value of $0.001 per share or $2,000 for compensation.
From August 12, 2008 through September 18, 2008, the Company sold 108,000 shares of its common stock at $0.05 per share to 6 individuals for a total of $5,400.
From January 5, 2010 through February 22, 2010, the Company sold 695,000 shares of its common stock in a private placement at $0.05 per share to 34 individuals for a total of $34,750.
NOTE 5 – RELATED PARTY TRANSACTION
Free office space
The Company has been provided office space by its Chief Executive Officer at no cost. The management determined that such cost is nominal and did not recognize the rent expense in its financial statement.
Capital contribution
In May 2008 the Company’s Chief Executive Officer contributed $296 for the general working capital.
NOTE 6 – COMMITMENTS
Entry into an employment agreement
On March 1, 2010, the Company entered into an employment agreement (“Employment Agreement) with its president and chief executive officer (“Employee”), which requires that the Employee to be paid a minimum of $500 per month for three (3) years from date of signing. Employee or the Company has the right to terminate the Employment Agreement upon thirty (30) days’ notice to the other party.
NOTE 7 – SUBSEQUENT EVENTS
The Company has evaluated all events that occur after the balance sheet date of March 31, 2010 through July 23 , 2010, the date when the financial statements were issued to determine if they must be reported. The Management of the Company determined that there were no reportable subsequent events to be disclosed.