On The Move Systems Corp.
maintained with a major financial institution in the United States. Deposits
with this bank may exceed the amount of insurance provided on such deposits.
are considered to be cash equivalents.
and engineering of products are expensed as incurred.
legal requirements for the issuance of such common stock have been satisfied.
recognition of revenue or cost.
advertising when incurred.
deferred taxes resulting from temporary differences. Such temporary
liabilities for tax and financial reporting purposes. The deferred tax assets
are recovered or settled. Valuation allowances are established when necessary
to reduce deferred tax assets to the amount expected to be realized.
Taxes" (ASC 740-10), on January 1, 2007. The Company has not recognized a
liability as a result of the implementation of ASC 740-10. A reconciliation
provided since there is no unrecognized benefit since the date of adoption.
the implementation of ASC 740-10. If there were an unrecognized tax benefit,
benefits in interest expense and penalties in operating expenses.
shares outstanding for the period. Diluted loss per share is computed giving
effect to all potentially dilutive common shares. Potentially dilutive common
options and warrants and the conversion of notes payable to common stock. In
calculation. At May 31, 2010, the Company did not have any potentially
dilutive common shares.
On The Move Systems Corp.
(A Development Stage Corporation)
Notes to Financial Statements
For the Period from March 25, 2010 (Date of Inception)
through May 31, 2010
FINANCIAL INSTRUMENTS - In September 2006, the Financial Accounting Standards
Board (FASB) introduced a framework for measuring fair value and expanded
required disclosure about fair value measurements of assets and liabilities.
The Company adopted the standard for those financial assets and liabilities
as of the beginning of the 2008 fiscal year and the impact of adoption was
not significant. FASB Accounting Standards Codification (ASC) 820 "Fair Value
Measurements and Disclosures" (ASC 820) defines fair value as the exchange
price that would be received for an asset or paid to transfer a liability (an
exit price) in the principal or most advantageous market for the asset or
liability in an orderly transaction between market participants on the
measurement date.. ASC 820 also establishes a fair value hierarchy that
distinguishes between (1) market participant assumptions developed based on
market data obtained from independent sources (observable inputs) and (2) an
entity's own assumptions about market participant assumptions developed based
on the best information available in the circumstances (unobservable inputs).
The fair value hierarchy consists of three broad levels, which gives the
highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (Level 1) and the lowest priority to unobservable
inputs (Level 3). The three levels of the fair value hierarchy are described
below:
o Level 1 - Unadjusted quoted prices in active markets that are
accessible at the measurement date for identical, unrestricted assets
or liabilities.
o Level 2 - Inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly or
indirectly, including quoted prices for similar assets or liabilities
in active markets; quoted prices for identical or similar assets or
liabilities in markets that are not active; inputs other than quoted
prices that are observable for the asset or liability (e.g., interest
rates); and inputs that are derived principally from or corroborated by
observable market data by correlation or other means.
o Level 3 - Inputs that are both significant to the fair value
measurement and unobservable.
Fair value estimates discussed herein are based upon certain market
assumptions and pertinent information available to management as of May 31,
2010. The respective carrying value of certain on-balance-sheet financial
instruments approximated their fair values due to the short-term nature of
these instruments. These financial instruments include accounts receivable,
other current assets, accounts payable, accrued compensation and accrued
expenses. The fair value of the Company's notes payable is estimated based on
current rates that would be available for debt of similar terms which is not
significantly different from its stated value.
On January 1, 2009, the Company applied ASC 820 for all non-financial assets
and liabilities measured at fair value on a non-recurring basis. The adoption
of ASC 820 for non-financial assets and liabilities did not have a
significant impact on the Company's financial statements.
F-8
On The Move Systems Corp.
(A Development Stage Corporation)
Notes to Financial Statements
For the Period from March 25, 2010 (Date of Inception)
through May 31, 2010
RECENT ACCOUNTING PRONOUNCEMENTS
In October 2009, the FASB issued Accounting Standard Update ("ASU") No. 2009-13,
Multiple-Deliverable Revenue Arrangements ("ASU 2009-13") and No. 2009-14,
Certain Revenue Arrangements that include Software Elements ("ASU 2009-14").
These standards update FASB ASC 605, Revenue Recognition ("ASC 605") and FASB
ASC 985, Software ("ASC 985"). The amendments to ASC 605 requires entities to
allocate revenue in an arrangement using estimated selling prices of the
delivered goods and services based on a selling price hierarchy. The amendments
to ASC 985 remove tangible products from the scope of software revenue guidance
and provide guidance on determining whether software deliverables in an
arrangement that includes a tangible product are covered by the scope of the
software revenue guidance. These amendments to ASC 605 and ASC 985 should be
applied on a prospective basis for revenue arrangements entered into or
materially modified in fiscal years beginning on or after June 15, 2010, with
early adoption permitted. The Company will adopt these amendments on March 1,
2011. Management does not believe that the adoption of this standard will
have a material impact on the Company's financial statements.
In January 2010, the FASB issued ASU No. 2010-06, Fair Value Measurements and
Disclosures ("ASU 2010-06"). This standard updates FASB ASC 820, Fair Value
Measurements ("ASC 820"). ASU 2010-06 requires additional disclosures about fair
value measurements including transfers in and out of Levels 1 and 2 and separate
disclosures about purchases, sales, issuances, and settlements relating to Level
3 measurements. It also clarifies existing fair value disclosures about the
level of disaggregation and about inputs and valuation techniques used to
measure fair value. The standard is effective for interim and annual reporting
periods beginning after December 15, 2009 except for the disclosures about
purchases, sales, issuances and settlements which is effective for fiscal years
beginning after December 15, 2010 and for interim periods within those fiscal
years. The Company will adopt ASU 2010-06 on March 1, 2011; management does
not expect the adoption to have a material impact on the financial statements.
Other recent accounting pronouncements issued by the FASB (including its EITF),
the AICPA, and the SEC did not or are not believed by management to have a
material impact on the Company's present or future financial statements.
4. RELATED PARTY TRANSACTIONS
During May 2010, the Company sold 9,000,000 shares of its $0.0001 common stock to
an officer of the Company for a $9,000 stock subscription receivable. Subsequent
to May 31, 2010, the Company received $9,000 in full settlement of the receivable.
The officers and directors of the Company are involved in other business
activities and may, in the future, become involved in other business
opportunities that become available. They may face a conflict in selecting
between the Company and other business interests. The Company has not formulated
a policy for the resolution of such conflicts.
F-9
On The Move Systems Corp.
(A Development Stage Corporation)
Notes to Financial Statements
For the Period from March 25, 2010 (Date of Inception)
through May 31, 2010
The Company does not own or lease property or lease office space. The office
space used by the Company was arranged by the founder of the Company to use at
no charge. The above amount is not necessarily indicative of the amount that
would have been incurred had a comparable transaction been entered into with
independent parties.
The above terms and amounts are not necessarily indicative of the terms and
amounts that would have been incurred had comparable transactions been entered
into with independent parties.
5. INCOME TAXES
There are no current or deferred income tax expense or benefit for the period
ended May 31, 2010.
The provision for income taxes is different from that which would be obtained by
applying the statutory federal income tax rate to income before income taxes.
The items causing this difference are as follows:
March 25, 2010
(Date of Inception) through
May 31, 2010
---------------------------
Tax benefit at U.S. statutory rate ................ $ -
State income tax benefit, net of federal benefit .. -
---------------------------
$ -
===========================
The Company did not have any temporary differences for the period from March
25, 2010 (Date of Inception) through May 31, 2010.
F-10
PART II. INFORMATION NOT REQUIRED IN THE PROSPECTUS
INDEMNIFICATION OF DIRECTORS AND OFFICERS
Under our Articles of Incorporation and Bylaws of the corporation, we may indemnify an officer or director who is made a party to any proceeding, including a lawsuit, because of his position, if he acted in good faith and in a manner he reasonably believed to be in our best interest. The Company may advance expenses incurred in defending a proceeding. To the extent that the officer or director is successful on the merits in a proceeding as to which he is to be indemnified, we must indemnify him against all expenses incurred, including attorney's fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably incurred in defending the proceeding, and if the officer or director is judged liable, only by a court order. The indemnification is intended to be to the fullest extent permitted by the laws of the State of Florida.
Regarding indemnification for liabilities arising under the Securities Act of 1933, which may be permitted to directors or officers under Florida law, we are informed that, in the opinion of the Securities and Exchange Commission, indemnification is against public policy, as expressed in the Act and is, therefore, unenforceable.
OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The registrant will pay for all expenses incurred by this offering. Whether or not all of the offered shares are sold, these expenses are estimated as follows:
| | |
Securities and Exchange Commission registration fee | $ | 4 |
Federal Taxes | $ | - |
State Taxes and Fees | $ | - |
Listing Fees | $ | - |
Printing Fees | $ | 500 |
Transfer Agent Fees | $ | 2,496 |
Accounting fees and expenses | $ | 3,000 |
Legal fees and expenses | $ | 4,000 |
TOTAL | $ | 10,000 |
RECENT SALES OF UNREGISTERED SECURITIES
During the last three fiscal years we have had the following issuances of unregistered securities:
In March of 2010, we issued 9,000,000 shares to John Crawford, the Company's founder, in exchange for cash of $9,000. We relied upon Section 4(2) of the Securities Act, which exempts from registration "transactions by an issuer not involving any public offering.
It is our belief Mr. Crawford had such knowledge and experience in financial and business matters that he was capable of evaluating the merits and risks of the investment and therefore did not need the protections offered by registering their shares under Securities and Act of 1933, as amended.
Mr. Crawford certified that he was purchasing the shares for their own accounts, with investment intent. This offering was not accompanied by general advertisement or general solicitation and the shares were issued with a Rule 144 restrictive legend.
II-1
EXHIBITS
The following exhibits are filed as part of this registration statement, pursuant to Item 601 of Regulation K. All exhibits have been previously filed unless otherwise noted.