ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Awareness for Teens, Inc. (“Awareness”) was incorporated on April 28, 2010 in the State of Nevada.
Business of Issuer
Our business is to provide a financial literacy and money management program for teenagers on a fee for service offered basis with specialized educational programs designed to maximize profit potential and customer loyalty. We believe that there is a need to train teenagers who we believe lack the basic skills in the management of personal financial affairs. Located in a fluent area, many are unable to balance a checkbook and most simply have no insight into the basic survival principals involved with earning, spending, saving and investing.
Should our business plan be successfully implemented, we may be expanding our operations in the south western portion of the United States. We are in the organizational stage and have not yet begun our educational operations and we currently have no revenues and no significant assets.
Principal Services
We are in the process of establishing ourselves as providing a financial literacy and money management educational program for teenagers on a fee for service offered basis. We intend to provide such topics which would include budgeting, the importance of saving, bank accounts and services, establishing and maintaining credit, planning for college, buying a car, basic investing, with related ancillary topics.
We will earn our revenues by charging a fee for individuals to complete our training course. We intend to charge each student $500 for our services. Our marketing is going to be the parents of teenagers who understand that many young people fail in the management of the first consumer credit experience, establish bad financial management habits, and fail to take direction from their parents, who realize that it makes no sense for their teenager to learn by trial and error. Our instruction will include practical information preparing them in planning and understanding their financial future.
Further, we anticipate that our instruction will also be useful in teaching the managing of the teenagers money, establish the basics of budgeting, savings and checking accounts, responsible borrowing and will extend to buying an automobile, renting an apartment and the responsible use of day to day credit. Further topics that will be addressed will include surrounding yourself with professionals in connection with starting and managing a small business, investing for the future, and basic knowledge on commencing a plan for retirement, although the retirement age is in the far distant future for the teenagers.
Our intensive two-week training will involve 18 hours of classroom instruction for groups of not to exceed 8 students. The instruction time will address the needs and requirements of each of the interested parties.
Probably the most important aspect of our training will be in developing positive financial responsibility and commitment. Effective inter-personal skills will reap personal satisfaction as well as financial gratification through increased tips.
Classroom instruction will be held at rented office space or in a hotel facility. Classroom space can be arranged on an “as needed” and “as available” basis at normal costs.
The Marketing
We will use a direct market approach. We intend to begin with a small number of students that will be drawn from the local high schools.
Awareness intends to use neighborhood and local newspaper print media to create interest in the company and to attract teenage students. These newspapers will usually provide a news story about the company if the company also places an advertisement in the paper. These genres of newspapers are usually free to the consumer and are distributed without cost in a targeted area. They are usually weekly or monthly or sporadic in distribution. Awareness will also place advertisements in school newspapers. In addition, notices on local bulletin boards in business establishments that provide for community notices will be posted. We intend to have a website - an internet presence to assist us in marketing our curriculum and to associate the name of the company to the service that we provide. We do not believe that the website will be an originating source to attract students to our business but may provide information to the consumer if aware of the website. We have not conducted any marketing research to obtain statistical data to develop a marketing plan; we intend to focus on this limited media promotion and our pricing to attract the parent and teenage student to the company and the selling ability of Maureen Cottrell if parents telephone Awareness for information.
We intend to design and build our website. The website will provide basic information and facts about the services we are offering. It will provide us with exposure to the general marketplace within our target market area. The website will have the facility for prospective students to contact us with questions and inquiries, and will eventually allow for on-line course registration.
Competition and Competitive Strategy
Secondary education (final stage of compulsory education) in California is mandatory to the age 18, with a limited number of specified statutory exceptions, and the schools that do provide secondary education do provide limited general training and instructions to its students in various classes relating to investments, financial planning and personal wealth management. We compete with traditional public and private two-year and four-year colleges, other for-profit schools and alternatives to higher education (vocational skill schools and government military schools). Public colleges may offer programs similar to those of Awareness at a lower tuition level as a result of government subsidies, government and foundation grants, tax-deductible contributions and other financial sources not available to proprietary institutions. These competitors may also provide general training and instructions to all social and economic demographics. In addition, we anticipate the possible integration of new or changed curricular by our competitors that will provide additional competition for us. Our competitors in both the public and private sectors have substantially greater financial and other resources than we do.
Further, the financial educational seminar industry is highly competitive. Awareness’s market in which it will operate is fragmented and decentralized with low barriers to entry. Our competitors include other companies and individuals who promote and conduct seminars and provide products on topics relating to investments, financial planning and personal wealth management.
Presently there is very little general training and instruction available or applicable for and specifically designed for the targeted teenagers living within the higher social economic or higher net worth demographics. We have been informed and believe that in addition to schools, banks and brokerage firms do provide personal financial training for free or at a very low cost. The providers of these services usually direct their efforts to only narrow areas that may be beneficial to them.
Competition from Other Educational Institutions
While Awareness’s course material presented to our students may be fully protected by intellectual property laws, our course concept will not. Consequently, other financial or educational institutions, based upon any success Awareness may enjoy in its educational material presentation, may decide to offer similar course material based on Awareness’s model. These financial or educational institutions have greater resources than Awareness, and as such will be able to compete successfully against Awareness. We may not be able to survive in the educational marketplace against such competition.
Dependence on One or a Few Major Customers
This business is not the type of business that is, or can be, dominated by one or a small number of customers.
Patent, Trademark, License & Franchise Restrictions and Contractual Obligations & Concessions
There are no inherent factors or circumstances associated with the educational trading services that we plan to provide that would give cause for any patent, trademark or license infringements or violations. Awareness has also not entered into any franchise agreements or other contracts that have given, or could give rise to obligations or concessions. Our course materials, where applicable, will be fully protected by copyright.
Existing or Probable Government Regulations
There are no other types of government regulations existing or being contemplated that would adversely affect Awareness’s ability to operate.
Research and Development Activities and Costs
Awareness has no plans to undertake any research and development activities.
Employees
Awareness’s only employee at the present time is Maureen Cottrell and we are dependent on her. We rely on her entrepreneurial skills and experience to implement our business plan. Maureen Cottrell is responsible for all planning, developing and operational duties, and will continue to do so throughout the early stages of our growth.
We have no intention of hiring further employees until the business has been successfully launched and we have sufficient, reliable tuition revenue flowing into Awareness from our educational operations. We believe that we will be able to secure guest lectures from financial instructions such as banks and brokerage firms and local accountants and attorneys at no cost. Subject to their business schedule, these guest lecturers are available as they provide the financial institutions, providers of services and themselves with the ability to market their business, create a firm brand to the parents and boost client referrals and uncover potentially new clients. Maureen Cottrell will also act as a classroom instructor, as needed, and do whatever work is necessary to bring our business to the point of being in positive cash flow. We do not expect to hire any other employees within the first year of operation.
The Curriculum
Awareness has developed an outline that will be the basis for the curriculum for use in its early sessions. Of particular importance to Awareness will be the student response and input to its curriculum material. We intend to conduct these early sessions on an interactive basis with our students, carefully noting student responses to the curriculum material such as comprehension, interest, clarity of presentation, order of curriculum format, and ability of students to absorb material presented. Subsequent curriculum development will be based to a great extent upon the student response and input received regarding our initial curriculum material and their suggestions for effective delivery modes.
A general outline of our initial curriculum is set out below. It will consist of 18 hours of classroom instruction. This outline presently consists of three parts:
Part One – The Fundamentals (approximately eight hours)
Money and Money Management
Basics of Budgeting
Savings and Checking Accounts
Using Credit Cards and the Cost of Borrowing
Responsible Borrowing and Maintaining Good Credit
Part Two – The Next Step (approximately eight hours)
Living Within your Means
Savings and Paying for College
Buying a Car-Auto Finance
Renting an Apartment
Responsible Use of Credit
Part Three – “Old Folks” (approximately two hours)
Banking and Credit Essentials
Buying a Home
The Small Business
Investing for the Future
Plans for Retirement
During the first year of operations, we will concentrate our efforts exclusively on obtaining our teenager students in the more affluent cities and communities within the County of San Diego, California. Initially, we intend to concentrate in northern San Diego which includes the La Jolla area (an affluent section of northern San Diego). As we gain experience, and develop sufficient revenues from sales, we may consider expanding our business within the region and possibly to other locations within the south western United States.
Plan of Operation
We are in the process of establishing ourselves as providing a financial literacy and money management educational program for teenagers on a fee for service offered basis. We intend to provide such topics which would include budgeting, the importance of saving, bank accounts and services, establishing and maintaining credit, planning for college, buying a car, basic investing, with related ancillary topics.
We will earn our revenues by charging a fee for individuals to complete our training course. We intend to charge each student $500 for our services.
Our intensive two-week training will involve 18 hours of classroom instruction for groups of not to exceed 8 students. The instruction time will address the needs and requirements of each of the interested parties.
Classroom instruction will be held at rented office space or in a hotel facility. Classroom space can be arranged on an “as needed” and “as available” basis at normal costs.
During the first stages of our growth, our sole officer and director will provide all the labor required to develop the curriculum and lead the educational sessions - at no charge. We believe that we will be able to secure guest lecturers from financial instructions such as real estate and stock brokerage firms and from local accountants and attorneys at no cost. Since we intend to operate with very limited administrative support, our sole officer and director will continue to be responsible for these duties for at least the first year of operations.
Our marketing strategy will be directed to the parents of the teenager who understand that the average student graduates from high school lacks basic skills in the management of personal financial affairs. These parents understand that many young people fail in the management of their first consumer credit experience, establish bad financial management habits, and stumble through their early financial lives learning by trial and error. We will inform the parents, in our marketing presentation, that each of the various subjects taught may also have visiting guest lecturers, with sufficient credentials and experience to give the program creditability. We believe that we will be able to secure these individual’s to act as guest lecturers predicated upon the possible additional business that may be obtained from the parent, after being informed of the presentation by the student and business obtained from the student.
Financial Condition.
Our auditor's going concern opinion and the notation in the financial statements for the fiscal year ended December 31, 2011 indicate that we do not have sufficient cash or other material assets and that we may be relying on advances from shareholders, officers and directors to meet limited operating expenses. We do not have sufficient cash or other material assets nor do we have sufficient operations or an established source of revenue to cover our operational costs that would allow us to continue as a going concern until we are profitable.
Since the Company has had no operating history nor any significant revenues or earnings from operations, with no significant assets or financial resources, we will in all likelihood sustain operating expense without corresponding revenues, at least until the profitable consummation of our planned operations.
Results of Operations
Three months ended September 30, 2012
We had no revenues for the periods ended September 30, 2012 or 2011. Operating expenses were $2,840 for the three month period ended September 30, 2012 compared to $500 in 2011, an increase of 468%. Expenses in 2011 were for the State filing fees of the Company, whereas the 2012 expenses are for the compliance costs of registration with the Security and Exchange Commission.
Nine months ended September 30, 2012
We had no revenues for the periods ended September 30, 2012 or 2011. Operating expenses were $10,278 for the nine month period ended September 30, 2012 compared to $950 in 2011, an increase of 981.9%. Expenses in 2011 were for the State filing fees of the Company, whereas the 2012 expenses are for the compliance costs of registration with the Security and Exchange Commission.
Liquidity
As of December 31, 2011, we had no cash and we had total liabilities of $8,535 and we had a net worth of $(8,535). As of September 30, 2012 we have cash of $25,000 and total liabilities of $18,813. Our net worth is $6,187.
We have had no revenues from inception to September 30, 2012. We have a loss from inception through December 31, 2011 of $13,535. Our loss from inception to September 30, 2012 is $23,813.
We have officer's advances of $8,535 from inception to December 31, 2011. Our officer’s advances as of September 30, 2012 are $15,973.
ITEM 4. EVALUATION OF DISCLOSURE ON CONTROLS AND PROCEDURES.
Based on an evaluation of our disclosure controls and procedures as of the end of the period covered by this Form 10Q (and the financial statements contained in the report), our president and treasurer have determined that our current disclosure controls and procedures are effective.
There have not been any changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) or any other factors during the quarter covered by this report, that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEDINGS.
We may be subject to legal proceedings from time to time in the ordinary course of our business. The Company is not currently a party to, nor is any of its property currently the subject of, any material legal proceeding. None of the Company’s directors, officers or affiliates is involved in a proceeding adverse to the Company’s business or has a material interest adverse to the Company’s business.
ITEM 1A. RISK FACTORS.
There have been no material changes in our risk factors since the March 14, 2012 filing of our Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2012.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
We did not sell unregistered securities during the period covered by this report.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. MINE SAFETY DISCLOSURES.
None.
ITEM 5. OTHER INFORMATION.
None.
ITEM 6. EXHIBITS.
There were no 8-K's filed during the reporting period.
The following exhibits are filed with this report:
| 31.1 | Certification pursuant to Section 302 of Sarbanes Oxley Act of 2002. |
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| 32.1 | Certification pursuant to Section 906 of Sarbanes Oxley Act of 2002. |
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| 101.INS ** | XBRL Instance Document |
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| 101.SCH ** | XBRL Taxonomy Extension Schema Document |
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| 101.CAL ** | XBRL Taxonomy Extension Calculation Linkbase Document |
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| 101.DEF ** | XBRL Taxonomy Extension Definition Linkbase Document |
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| 101.LAB ** | XBRL Taxonomy Extension Label Linkbase Document |
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| 101.PRE ** | XBRL Taxonomy Extension Presentation Linkbase Document |
** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
SIGNATURES
Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.
| | AWARENESS FOR TEENS, INC. | |
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| Date: November 14, 2012 | By: | /s/ Maureen Cottrell | |
| | | Maureen Cottrell | |
| | | President (Principal Executive Officer), | |
| | | Secretary/Treasurer (Principal Financial Officer) and Sole Director | |
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