UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-QSB/A
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the first quarter ended September 30, 2006
( ) TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
Commission File Number: 000-51760
EASY GOLF CORPORATION
(Exact name of small business issuer as specified in its charter)
NEVADA 20-2815911
(State of incorporation) (I.R.S. EMPLOYER ID NO.)
3098 South Highland Drive, Suite 323
Salt Lake City, Utah 84106-6001
(Address of principal executive offices) (Zip Code)
(801) 467-2021
(Issuer's telephone number, including area code)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).
Yes [X] No [ ]
The number of shares outstanding of each of the Issuer's classes of common
equity, as of the latest practicable date:
Class Outstanding as of November 24, 2006
- ----------------- ----------------------------------------
Common Capital Voting Stock, 3,506,428 shares
$0.001 par value per share
EXPLANATORY STATEMENT
We are amending this Quarterly Report on Form 10-QSB for the sole purpose of
checking the "shell company" box on the first page, which the NASD recently
requested that we do.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this Quarterly Report on Form 10-QSB filed by
Easy Golf Corporation ("Easy Golf," "Company," "us," or "we") constitute
statements identified by words such as "will," "may," "expect," "believe,"
"anticipate," "intend," "could," "should," "estimate," "plan," and similar
words or expressions, relate to or involve the current views of management
with respect to future expectations, objectives and events and are subject to
substantial risks, uncertainties and other factors beyond our control, all of
which may cause actual results to be materially different from any such
forward-looking statements. Such risks and uncertainties include those set
forth in this document and others made by us in the future. Any forward-
looking statements in this document and any subsequent document must be
evaluated in light of these and other important risk factors. We do not intend
to update any forward-looking information to reflect actual results or changes
in the factors affecting such forward-looking information.
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements.
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
BALANCE SHEETS
September 30, June 30,
2006 2006
------------ ------------
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ - $ 56
Inventory 3,211 3,430
------------ ------------
Total Current Assets 3,211 3,486
Other Assets
Deposit 116 116
License rights, net 3,605 3,721
------------ ------------
Total Other Assets 3,721 3,837
------------ ------------
Total Assets $ 6,932 $ 7,323
============ ============
LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities
Bank Overdraft $ 7 $ -
Accounts payable 3,904 6,060
Advances from stockholders 31,349 23,017
------------ ------------
Total Current Liabilities 35,260 29,077
Stockholders' Equity
Common Stock - $0.001 par value, 50,000,000
shares authorized 3,506,428 issued and
outstanding in 2006 and 2005 3,506 3,506
Additional paid-in capital 426,314 426,314
Accumulated Deficit (425,170) (425,170)
Deficit accumulated from April 2, 2004,
date of inception and development stage (32,978) (26,404)
------------ ------------
Total Stockholder's Equity (28,328) (21,754)
------------ ------------
Total Liabilities and Stockholders' Equity $ 6,932 $ 7,323
============ ============
The accompanying notes are an integral part of these financial statements
F-2
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
For the Period
From
April 2, 2004
(Date of inception
of the Development
For the Three Months Ended Stage) through
September 30, September 30,
2006 2005 2006
------------ ------------ ------------
Sales $ 95 $ - $ 282
Cost of Goods Sold 34 - 104
------------ ------------ ------------
Gross Profit 61 - 178
Operating Expenses
General & Administrative 6,519 4,925 31,782
Research & Development - - 328
Amortization 116 3 1,046
------------ ------------ ------------
Total Operating Expenses 6,635 4,928 33,156
------------ ------------ ------------
Net Operating Loss (6,574) (4,928) (32,978)
Other Income (Expense)
Interest and dividend income - - -
------------ ------------ ------------
Loss Before Income Taxes (6,574) (4,928) (32,978)
Benefit (Provision) for
Income Taxes - - -
------------ ------------ ------------
Net Loss $ (6,574) $ (4,928) $ (32,978)
============ ============ ============
Basic Loss per Share $ (0.00) $ (0.00) $ (0.02)
============ ============ ============
Weighted Average Common Shares
Used In Per Share Calculations 3,506,428 3,517,678 2,066,421
============ ============ ============
The accompanying notes are an integral part of these financial statements.
F-3
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
For the Period
From
April 2, 2004
(Date of inception
of the Development
For the Three Months Ended Stage) through
September 30, September 30,
2006 2005 2006
------------ ------------ ------------
Cash flows used in operating
activities:
Net income (loss) $ (6,574) $ (4,928) $ (32,978)
Adjustments to reconcile net
loss to cash used in
operating activities
Amortization 116 3 1,045
Changes in operating assets and
liabilities:
(Increase) Decrease in Inventory 219 - (3,211)
(Increase) Decrease in Deposits - - (116)
Increase (Decrease) Accounts
payable (2,156) (313) 3,904
Increase (Decrease) Bank
overdraft 7 - 7
------------ ------------ ------------
Net cash used in operating
activities (8,388) (5,238) (31,349)
Cash flows from investing
activities:
- - -
------------ ------------ ------------
Net cash flows provided by
investing activities - - -
Cash flows from financing
activities:
Advances from stockholders 8,332 5,080 31,349
------------ ------------ ------------
8,332 5,080 31,349
------------ ------------ ------------
Net increase in cash (56) (158) -
Cash and cash equivalents at
beginning of period 56 186 -
------------ ------------ ------------
Cash and cash equivalents at
end of period $ - $ 28 $ -
============ ============ ============
The accompanying notes are an integral part of these financial statements.
F-4
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization. Easy Golf Corporation (fka Bio-Thrust Resources, Inc.)
("Company") was incorporated on July 16, 1981 under the laws of the State of
Utah. The Company was authorized to conduct any and all lawful business
activity or enterprise for which corporations may be organized under the state
of Utah. Due to inactivity and failure to file tax returns and annual reports
to the State of Utah, the Company was involuntarily dissolved. A new
corporation was organized on April 2, 2004 in the State of Utah with the name
Bio-Thrust, Inc. and effective on that date the new corporation was merged
with the old defunct predecessor Bio-Thrust, Inc. with the newly formed entity
in good standing with the State of Utah being the survivor. The new company
assumed all the assets, liabilities, rights, privileges, and obligations and
has the same shareholders as the predecessor corporation.
On February 17, 2005, Easy Golf Corporation was formed as a Nevada corporation
and as a wholly owned subsidiary of the Company. One hundred shares of common
stock were issued to the Company at inception. Fifty million (50,000,000)
shares of common stock were authorized at a par value of $.001 per share.
On April 11, 2005, the Company and Easy Golf Corporation entered into a Plan
and Agreement of Merger the purpose of which was to change the Company's
domicile to Nevada and to change the Company's name to Easy Golf Corporation.
In the agreement, the surviving corporation would be the newly formed Nevada
corporation (Easy Golf Corporation). One share of common stock in Easy Golf
Corporation was issued for twelve shares of common stock of Bio-Thrust, Inc.
The initial one hundred shares of common stock originally issued to Bio-
Thrust, Inc. were cancelled as part of the merger agreement
Business Condition. As shown in the financial statements, during the three
months ended September 30, 2006, the Company had a loss of $6,574 and used
cash from operations of $8,395. The general and administrative expenses for
the three months ended September 30, 2006 were a significant drain on the
Company's capital due to filing requirements promulgated by the Securities and
Exchange Commission and activities to market The "Swing-Channel " Golf Mat the
proprietary technology acquired in February 2005 (see Note 2). No additional
funds have been raised as of September 30, 2006. The Company's ability to
move from the development stage is dependent upon the ability to obtain
additional debt or equity financing, or to generate sufficient cash flow from
operations and to ultimately obtain profitable earnings.
Development Stage. The Company is considered to be a Development Stage
Company according the provisions of FAS 7. The Company is currently unable to
estimate the length of time necessary to initiate operations and produce
products from the technologies it has acquired in 2005 (see Note 2 and 4) and
has no assurance that its products will be commercially viable.
Accounting Estimates. The preparation of financial statements in conformity
with generally accepted accounting principles in the United States of America
requires management to make estimates and assumptions that effect the reported
amounts of assets and liabilities, the disclosures 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 estimated by management.
Cash and Cash Equivalents. For purposes of the financial statements, the
Company considers all highly liquid debt investments purchased with a maturity
of three months or less to be cash equivalents.
F-5
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
Stock Based Compensation. The Company accounts for its stock based
compensation in accordance with Statement of Financial Accounting Standard No.
123 R "Accounting for Stock-Based Compensation." This statement establishes
an accounting method based on the fair value of equity instruments awarded to
employees as compensation. However, companies are permitted to continue
applying previous accounting standards in the determination of net income with
disclosure in the notes to the financial statements of the differences between
previous accounting measurements and those formulated by the new accounting
standard. The Company had adopted the disclosure only provisions of SFAS No.
123 R, and accordingly, the Company has elected to determine net
income using previous accounting standards. Equity instruments issued to non-
employees are valued based on the fair value of the services received or the
fair value of the equity instruments given up which ever is more reliably
measurable.
Inventories. Inventories are valued at the lower of cost or market. Cost
is determined by the first-in, first-out (FIFO) method.
License Rights and Amortization. In accordance with Financial Accounting
Standards Board Statement 142, "Goodwill and Other Intangible Assets", license
rights are carried at cost and are amortized over their estimated useful lives
of 10 years. There are currently no intangible assets owned for which an
indefinite life would be expected. The carrying value of the license rights
are periodically reviewed and impairments, if any, are recognized when the
expected future benefit to be derived from individual intangible assets is
less than its carrying value. Amortization expense for the three months ended
September 30, 2006 and 2005 was $116 and $3, respectively.
Revenue Recognition. The Company applies the provisions of SEC Staff
Accounting Bulletin ("SAB") No. 104, REVENUE RECOGNITION IN FINANCIAL
STATEMENTS ("SAB104"), which provides guidance on the recognition,
presentation and disclosure of revenue in financial statements filed with the
SEC. The SAB 104 outlines the basic criteria that must be met to recognize
revenue and provides guidance for disclosure related to revenue recognition
policies. The Company earns revenues primarily from the sale of proprietary
golf improvement products. Revenue is generally recognized on when the sale
is made and delivered to the customer. Four basic criteria must be met before
revenue can be recognized: (1) persuasive evidence of an arrangement exists;
(2) delivery has occurred; (3) the fee is fixed and determinable; and (4)
collectibility is reasonably assured. The Company determines whether
criteria (3) and (4) are met based on judgments regarding the nature of the
fee charged for the products delivered and the collectibility of those fees.
Advance payments are recorded on the Consolidated Balance Sheet as deferred
revenue.
Income Taxes. The Company accounts for income taxes in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 109, "Accounting for
Income Taxes." This statement requires an asset and liability approach for
income taxes.
Earnings (Loss) Per Share. The computation of earnings (loss) per share is
based on the weighted average number of shares outstanding during the period
presented in accordance with Statement of Financial Accounting Standards
("SFAS") No. 128, "Earnings (Loss) Per Share" (See Note 7).
F-6
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Recently Enacted Accounting Standards. In May 2005, the FASB issued SFAS No.
154, ACCOUNTING CHANGES AND ERROR CORRECTIONS. This Statement replaces APB No.
20, ACCOUNTING CHANGES and FASB No. 3, REPORTING ACCOUNTING CHANGES IN INTERIM
FINANCIAL STATEMENTS, and changes the requirements for the accounting for and
reporting of a change in accounting principle. This Statement applies to all
voluntary changes in accounting principle. It also applies to changes required
by an accounting pronouncement in the unusual instance that the pronouncement
includes specific transition provisions. When a pronouncement includes
specific transition provisions, those provisions should be followed. This
Statement requires retrospective application to prior periods' financial
statements of changes in accounting principle, unless it is impracticable to
determine either the period-specific effects or the cumulative effect of the
change. The adoption of SFAS No. 154 did not have an impact on the Company's
financial statements.
In February 2006, the FASB issued SFAS No. 155, ACCOUNTING FOR CERTAIN HYBRID
FINANCIAL INSTRUMENTS AN AMENDMENT OF FASB STATEMENTS NO. 133 AND 140. This
Statement amends FASB Statements No. 133, accounting for Derivative
Instruments and Hedging Activities, and No. 140, Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities. This
statement resolves issues addressed in Statement 133 Implementation Issued No.
D1, "Application of Statement 133 to Beneficial Interests in Securitized
Financial Assets." The adoption of SFAS No. 155 did not have an impact on the
Company's financial statements.
In March 2006, the FASB issued SFAS No. 156, ACCOUNTING FOR SERVICING OF
FINANCIAL ASSETS AN AMENDMENT OF FASB STATEMENT No. 140. This Statement
amends FASB Statement No. 140, Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities, with respect to the
accounting for separately recognized servicing assets and servicing
liabilities. The adoption of SFAS No. 156 did not have an impact on the
Company's financial statements.
NOTE 2 INVENTORIES
Inventories consisted of the following:
September 30 June 30
2006 2006
Finished goods $ 3,211 $ 3,430
Raw materials - -
Work in process - -
---------- -----------
Total $ 3,211 $ 3,430
========== ===========
F-7
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
NOTE 3 INTANGIBLE ASSETS
Intangible assets at September 30, 2006 and June 30, 2006 are carried at cost
and consist of the following:
September 30 June 30
2006 2006
License rights $ 4,650 $ 4,650
Less: Accumulated amortization (1,045) (929)
--------- ---------
Total $ 3,605 $ 3,721
========= =========
NOTE 4 ACQUISITION OF TECHNOLOGY
On March 10, 2005, the Company entered into an Exclusive Patent, Trademark and
Tradename Licensing Agreement whereby the Company issued an officer and
shareholder of the Company 35,000,000 common shares in consideration for the
right to license and use a proprietary golf improvement product valued at
$4,650 or $.0001329 per share. In addition to the issuance of stock the
Company also agreed to pay the shareholder a five percent (5%) royalty on the
net sales price or net proceeds from sales of the product.
NOTE 5 COMMON STOCK
Common Stock. The Company has authorized 50,000,000 shares of common stock
with a par value of $.001.
As indicated in Note 1, on April 11, 2005, the Company entered into a Plan and
Agreement of Merger with Easy Golf Corporation. In the agreement, the
surviving corporation would be the newly formed Nevada corporation (Easy Golf
Corporation). One share of common stock in Easy Golf Corporation was issued
for twelve shares of common stock of Bio-Thrust, Inc. The initial one hundred
shares of common stock originally issued to Bio-Thrust, Inc. were cancelled as
part of the merger agreement. The equity section of the balance sheet for
June 30, 2005 is restated to show the effects of the reverse split.
NOTE 6 RELATED PARTY TRANSACTIONS
Related Party Advances. During the period from inception of the development
stage April 2, 2004 through September 30, 2006, an officer and shareholder of
the Company has advanced the Company $31,349 to pay operating costs of the
Company. The advances bear no interest and are due on demand.
Management Compensation. For the three months ended September 30, 2006 and
2005, the Company did not pay any compensation to any officer or director of
the Company.
Office Space. The Company has not had a need to rent office space. An
officer of the Company is allowing the Company to use his address, as needed,
at no expense to the Company.
F-8
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
NOTE 7 GOING CONCERN
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles in the United States of America,
which contemplate continuation of the Company as a going concern. However,
the Company does not have adequate working capital to pursue its planned
operations. These factors raise substantial doubt about the ability of the
Company to continue as a going concern. In this regard, management is
proposing to raise any necessary funds through loans, through additional sales
of its common stock or through the possible acquisition of other companies.
There is no assurance that the Company will be successful in raising this
additional capital.
NOTE 8 INCOME TAXES
The Company accounts for income taxes in accordance with Statement of
Financial Accounting Standards No. 109 "Accounting for Income Taxes" which
requires the Company to provide a net deferred tax asset/liability equal to
the expected future tax benefit/expense of the temporary reporting differences
between book and tax accounting methods and any available operating loss or
tax credit carryforwards. The Company has available at June 30, 2006 an unused
operating loss carryforward of approximately $32,978 which may be applied
against future taxable income and which expires in various years through 2027.
The amount of and ultimate realization of the benefits from the operating loss
carryforwards for income tax purposes is dependent, in part, upon the tax laws
in effect, the future earnings of the Company and other future events, the
effects of which cannot be determined. Because of the uncertainty surrounding
the realization of the net deferred tax assets, the Company has established a
valuation allowance equal to their tax effect and, therefore, no deferred tax
asset has been recognized. The net deferred tax assets are approximately
$4,947 and $4,000 as of September 30, 2006 and June 30, 2006, respectfully,
with an offsetting valuation allowance of the same amount, resulting in a
change in the valuation allowance of approximately $947 and $739 during the
three months ended September 30, 2006 and 2005.
NOTE 9 LOSS PER SHARE
The following data show the amounts used in computing loss per share:
Cumulative from
the Inception of the
Development Stage
on April 2,
For the Three Months Ended 2004 through
September 30, September 30,
2006 2005 2006
(Loss) from continuing
operations available to
common stockholders
(numerator) $ (6,574) $ (4,928) $ (32,978)
Weighted average number
of common shares
outstanding used in
earnings per share
during the period
(denominator) 3,506,428 3,517,678 2,066,421
F-9
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
NOTE 9 LOSS PER SHARE - CONTINUED
Dilutive loss per share were not presented, as the Company had no common
equivalent shares for all periods presented that would effect the computation
of diluted earnings (loss) per share.
F-10
Item 2. Management's Discussion and Analysis or Plan of Operation.
We are a start-up, internet-based eCommerce company that offers and sells a
newly designed and invented specialty golf training aid which teaches a person
to hit a golf ball straight. This product is called "The Swing-Channel (R)
Golf Mat." During August, we received a Certificate of Registration from the
U.S. Patent and Trademark Office informing us that our federal trademark and
trade name application to register the phrase "SWING-CHANNEL" had finally been
officially granted. We are now entitled to put the registered trademark
symbol next to the phrase SWING-CHANNEL on our website and on all of our
product and promotional literature.
In August of 2005, over a year ago, we applied for a utility patent with the
U.S. Patent and Trademark Office. This patent application remains pending.
Our website is www.easygolf.biz or www.swingchannelgolf.com and it is hosted
by Yahoo! Approximately one year ago, we were able to perfect our product so
that it is now available for sale in interstate commerce. Also, because we
were only able to offer our product for sale after the previous year's golf
season was over, we have only had the opportunity to offer our product for
sale during one actual or typical golf season, namely, the summer of 2006.
During our first quarter ended September 30, 2006, we reduced or minimized our
advertising campaigns on Google AdWords and Yahoo! Search Marketing because we
concluded that we were only attracting curious "internet surfers" and people
who were neither golfers nor interested in buying golf training aid products.
We were thus generating a lot of website hits but no sales. We believe this
is typical of Yahoo! and Google pay-per-click advertising. Accordingly,
starting on or about September 21, 2006, we began on-line ad campaigns with
AdSonar, a service that allows the advertiser to pick and choose specialty
websites with whom it wants to advertise directly. For example, one can
advertise on sports channel websites such as ESPN, specific golf-related
websites of your choosing, and PGA-sponsored websites. For information in
this regard, reference is made to www.adsonar.com or www.quigo.com. This is
explained in greater detail below. So far, these efforts have generated but
one sale during our first quarter and one sale, so far, during the second
quarter. During our first quarter, we also gave away several of our golf
training aid products for promotional purposes.
Selected Financial Data.
- ------------------------
Because we have not been operating long enough to generate significant sales,
selected financial data would not be particularly meaningful. Reference is
made to our financial statements included in Item 1 above.
Since our emergence from some-15 years of dormancy, we have incurred
accounting costs and other expenses and fees in connection with reactivating
ourselves, acquiring our golf properties, and the preparation and filing of a
Form 10-SB registration statement filed with the Commission nearly a year ago.
Since our re-emergence from dormancy over two years ago on April 2, 2004, and
excluding the $6,976.15 in patent attorney's fees incurred by our officer and
director in his individual capacity and which we ran through our books and
records for convenience, we have incurred total expenses or accumulated
deficits, as of September 30, 2006, of $32,978.. Funding of these and other
expenses was from working capital provided by our only officer and director,
namely, Mr. J. Michael Coombs, a person who, because of his 84% ownership
interest in us, has an obvious vested interest in seeing us successfully
market our product. As of the same date, namely, the end of our first quarter
ended September 30, 2006, we had $56 in our checking account. As of the date
of this quarterly report, we have $990 in our checking account. Since the end
of our first quarter ended September 30, 2006, and other than the accounting
fees necessary to prepare this Report, we have incurred no additional or
unusual fees or expenses that are not in the ordinary course of our business.
Liquidity and Capital Requirements.
- -----------------------------------
At September 30, 2006, we had $56 in our checking account. As of the date of
this Quarterly Report, we have $990 in our checking account. What we have in
our checking or bank account at any given time is insignificant inasmuch as
our working capital is, and has been, funded by personal advances from an
officer and director. These advances do not require interest payments at the
present time and, unless we become profitable, we do not believe that it is at
all likely that our agreement with our sole officer and director, Mr. Coombs,
would be modified to provide for such. Mr. Coombs's loans are considered or
designated as "advances," inasmuch as they do not bear interest. At present,
there are no plans to charge interest. In the event we modify our oral
agreement in the future with Mr. Coombs to allow for the charging of interest,
we do not believe it would have any material impact on us or our liquidity
because both we and Mr. Coombs would not agree to such a modification unless
we were profitable and could afford to pay interest. Though we have nothing
definitive in writing with Mr. Coombs, we consider Mr. Coombs's obligation to
advance us money to maintain our reporting obligations a legal obligation of
his upon which both we and investors can rely.
During the quarter, our only officer and director, Mr. Coombs, advanced us
$7,725 in cash in our bank account. During the quarter, Mr. Coombs also
advanced us an additional $383.63 in advertising expenses and $119.85 in
website hosting costs. These advances by our officer and director during the
quarter total $8,228.48. We recently applied for and obtained a corporate
credit card and therefore, Mr. Coombs will no longer have to account to us for
charges made on his personal credit card for our benefit.
On October 11, 2006, after our first quarter had ended, Mr. Coombs advanced us
another $4,000 in order to pay $3,277.45 owed for charges made during
September on our Easy Golf credit card and which were due to be paid on
October 12. The $3,277.45 constitutes $2,500 paid JV Associates, a golf
specialty advertising firm mentioned in further detail below, $325.45 paid
Google AdWords, $400 paid Yahoo! Search Marketing, and $51 paid for
promotional activity at Stonebridge and Glendale Golf Courses. All of this
debt was incurred on our corporate credit card during the quarter but paid in
the second quarter beginning October 1, 2006.
We will be able to satisfy our cash requirements for not only the next 12
months but at least for the next two (2) years in that our sole officer and
director has committed himself to advancing what funds are necessary to
satisfy our cash requirements and keep us current in our 1934 Exchange Act
reporting obligations. We believe that this time period is consistent with the
disclosure in our Plan of Operation described below in that we believe that
within at least two years, we should be able to successfully carry out our
business plan. See the section titled "Plan of Operation" below. Having said
this, we are unable to guarantee that upon the expiration of two years from
now, that individual members of management will continue to advance us
sufficient money to allow us to continue in our reporting obligations. We do
not mean to imply, however, that individual members of management will NOT
continue to advance us funds beyond the next two years, particularly if it
appears that we will indeed be able to successfully carry out our business
plan if we continue beyond the next two years. If management does not desire
to loan or advance us sufficient funds to continue beyond the next two years
for the simple reason that the prospects of our business plan look bleak, we
may be required to look at other business opportunities, the form of which we
cannot predict at this time, as to do so would be highly speculative on our
part.
The amount of money necessary to implement and carry out our business plan
over the next fiscal year is as follows: The cost of maintaining our website
hosted by Yahoo! is currently $39.95 per quarter or $120 per year. Over the
next year, and because we have the capability of generating our quarterly and
annual reports "in-house," we have budgeted no money to be spent in this
regard in legal fees. With respect to our annual "in-house" accounting and
outside, independent auditor fees and costs, we have budgeted as much as
$6,600. We are also budgeting Edgarization costs and fees of at least $200 per
quarter and $500 for our Annual Report on Form 10-KSB. In the normal course of
business, we anticipate spending at least $1,000 per year on Edgarization
costs and expenses. Finally, we have budgeted approximately $500 per year in
annual transfer agent fees and costs; $300 of this figure is our annual stock
transfer agent maintenance fee. Other transfer agent costs and fees will
ordinarily be the obligation of each shareholder submitting his or her shares
for transfer. Finally, in December 2005, we obtained a products liability
insurance policy at a cost of $914.38 per year. This policy comes up for
renewal next December 15. This means that we anticipate that approximately
$10,000 in cash per year shall be necessary to satisfy our minimal cash
requirements.
We currently have no sources of financing, including bank or private lending
sources, or equity capital sources. For the time being, we do not require such
sources. If we are able to generate the sale of an average of a mere 16.66
mats per month, we can pay for $1,000 of Internet or other advertising
expenses each month. Since no one knows who we are and we and our product are
both essentially unknown, we are hopeful that we may be able to accomplish
this short term goal by the end of this-coming golf season, that is, once our
name and our product get better known in the marketplace and some of our
Internet advertising takes hold, including the promotional efforts we have
hired JV Associates in Monte Vista, Colorado, to undertake over the next year
on our behalf.
Receipt of Certificate of Registration of Our Application for a Trademark and
Trade Name from the U.S. Patent and Trademark Office.
- -----------------------------------------------------
During late August, we received a Certificate of Registration from the U.S.
Patent and Trademark Office (USPTO) relative to our March 2005 application for
a federal trademark and trade name of the phrase "Swing-Channel." This federal
trademark and trade name was applied for by our licensor for use in the golf
industry, particularly for use in connection with golf training aids. The
serial number of this trademark is 78/577944. The mark itself is "SWING-
CHANNEL" (standard character mark). Now that we have a federally "registered"
trademark and trade name, we will be able to use the registered trademark
designation or insignia, namely, a capital "R" with a circle around it, next
to the phrase SWING-CHANNEL on our website and in all of our documentation,
labeling and promotional literature.
Submission of Application to the NASD for an OTCBB Symbol.
- ----------------------------------------------------------
Having filed our Annual Report on Form 10-KSB in September for our fiscal year
ended June 30, 2006, we soon thereafter applied for an Over the Counter
Bulletin Board (OTCBB) symbol through a local stock brokerage firm. This is
perhaps the most exciting development of the quarter. We could have applied
sooner; however, we wanted to wait until we had audited financial statements
for our fiscal year ended June 30, 2006. We do not know how long it will take
to get a symbol. The NASD responded on October 16, 2006, with 15 comments.
We have since responded to those comments. We do not know how long it will be
before they respond to our response letter. We believe they are obligated by
law to respond in approximately 21 days.
Sales During the Quarter.
- -------------------------
Though we did considerable "on-line" advertising during the quarter, we
unfortunately had but one sale to an individual in Ohio that resulted in gross
income of $94.95. We are very disappointed in this. We attribute this to the
fact that our product has not been on the market long, it does not yet have
significant market recognition or presence, and it is not currently carried in
retail golf and sporting goods stores or catalogues, including the fact that
it was not, during the quarter, carried on any other golf-related website or
retail store website with the exception of our own website and a distributor's
website, www.sportstrainingaids.com. This has caused us to conclude, as set
forth further below in the section titled "Plan of Operation," that
advertising on Yahoo! and Google on a pay-per-click basis is not what it is
cracked up to be and that, in large measure, it is a waste of money.
Expenses Incurred With Our Transfer Agent.
- ------------------------------------------
During the quarter, we incurred $150 as an audit response fee with our
transfer agent, Fidelity Transfer Company located here in Salt Lake City. We
also incurred another $125 with our transfer agent for providing a certified
shareholder list to a local securities broker-dealer who, during October,
submitted our Information Statement to the National Association of Securities
Dealers, Inc. (NASD) and applied for an OTCBB symbol for us. This shareholder
list is provided to the NASD.
PLAN OF OPERATION
Our principal business plan is to promote, market and sell our golf training
aid product known as "The Swing-Channel Golf Mat" initially on the Internet
through our custom-built website, and later, if we can arrange it, through
distributors and specialty websites that only offer and sell golf-related
products. Currently, we only have one on-line distributor,
www.sportstrainingaids.com. If we can generate enough sales to pay for
colored retail box artwork and packaging, we would eventually like to see our
product carried in sporting goods retail stores around the United States and
Canada, possibly Great Britain. Because this is a new product and we are a
start-up enterprise, the sporting goods and golf industry is totally
unfamiliar, at this stage, with our product. For this reason, we believe it
will take time for our product to "catch on" and for any significant or
meaningful sales to occur. We believe that we must be patient in this regard.
Our Website.
- ------------
We maintain a custom website hosted by Yahoo! Merchant Solutions. Our website
address is: www.easygolf.biz. Through our exclusive license agreement, and in
addition to the domain name, www.easygolf.biz, we have also licensed the
following 9 domain names: www.easyhittinggolf.com, www.easyswinggolf.com,
www.easyswinginggolf.com, www.straighthittingolf.com,
www.straightswinginggolf.com, www.swing-channel.biz, www.swing-channel.com,
www.swingchannel.biz, and www.singchannelgolf.com. If a person types in one of
these 9 domain names as a web address, he or she is taken directly to our
website. Our website hosting service is under Yahoo!'s Merchant Starter
Program. Yahoo! Merchant Solutions offers three alternative website hosting
services, each of which depends on the amount of gross sales in a month period
that the merchant generates.
Product On-Hand/Inventory.
- --------------------------
About a year ago we purchased one roll of green, Athletic Sports Turf
material. This roll is 101 ft. by 12 ft. or 1,212 sq. ft. This roll cost us
$2,420 and because our Mat is 24 inches by 52 inches, this is enough Athletic
Sports Turf material to make a total of 138 Mats. We have also inventoried
several hundred rubber tees or barricades, all of myriad sizes, 16 of which
are incorporated into, and shipped with, each Mat. The several hundred rubber
barricades we currently have in stock cost us $1,205. We purchased all of
these materials through our carpet wholesaler, Robison Distributing Co., Inc.,
who purchased them directly from the respective manufacturers. We are buying
these materials from Robison Distributing directly so that we can pay them
Utah sales taxes. This dispenses with the requirement on our part to
independently calculate "use taxes" to pay over directly to the Utah State Tax
Commission. A consumer or buyer of goods in Utah either pays "sales taxes" or
"use taxes," but not both. We thus have had nearly $4,000 of material in
inventory with which to make Swing-Channel Golf Mats upon receipt of future
orders. In the event we run out of material, we can order and then receive new
material within at least 3 days. We have other supply sources for these
materials but at present, we believe these are our best and most inexpensive
sources.
During the quarter, we sold 1 Mat on-line and we gave away a total of seven
(7) Mats for promotional purposes. We thus have sufficient material remaining
on hand, according to our calculations, to make between 120 and 122 Mats.
Our Plan Over the Next 12 to 18 Months.
- ---------------------------------------
Our current suggested retail price on our mat is $79.95, plus $15 for shipping
and handling anywhere in the U.S. or Canada. To enhance or increase sales
volume, we are considering offering reduced price specials on our website,
though we haven't done so to date. Over the last several months, we have
sought to determine the best price to charge for our product. At present, we
believe that $79.95 is a fair price for what we offer. We believe that people
will pay a lot more than $79.95 to learn to hit a golf ball straight and we
believe and submit that our product works. Conversely, we believe that for
most people, $79.95 is a lot of money. We can make no assurance that this
opinion as to the fair price or value of our product will not change. If,
after another golf season, namely, the 2007 season, we are unable to generate
sales at $79.95, we will have no choice but to consider offering our product
for less. We may also consider special offers of two or three for a
substantially reduced price.
The foregoing paragraph is not to ignore that if we sell our product in bulk
to a national golf or sporting goods chain, or even a specialty golf website,
or even high schools or colleges, a market that we only recently discovered,
we will probably be required to sell our product, on a wholesale basis, that
is, for less than $79.95. At present, we do not yet know what a national golf
or sporting goods chain, or even a specialty golf website, let alone schools,
would be willing to buy our product for.
There is little doubt that future Internet sales of our product will be driven
by the amount of money we are able and willing to spend on advertising and
promotion. During the next 12 to 18 months, we will actively pursue enhancing
sales of our specialty golf training aid on-line. Our second phase plan of
operation will be to obtain retail colored boxes for the purpose of putting
our product in retail stores around the country and in large national retail
store catalogues, many of which have told us that they will not list our
product in their catalogue if it isn't suitable for their retail store or they
aren't already carrying it in one of their retail stores. Our third phase
plan of operation, assuming that the first two phases are successful, will be
to (1) develop and market additional golf training aids that we invent, (2) to
offer and sell other golf training aids made by others on our website through
licensing arrangements, and/or (3) to acquire other properties, products or
companies that offer and sell such products on-line. This third consideration
is highly speculative at this stage and is otherwise in the far distant
future. For the time-being, and because at a price of $79.95 our profit is
approximately $50 to $55 per Mat (depending on volume), we want to focus our
efforts on selling our own product on-line and through on-line distributors
and drop-shippers. If advertising in limited fashion on AdSonar, Google
AdWords, Yahoo! Search Marketing, Website Pros, Ebay or any other website
services we discover and use prove successful, we will do what we can to
increase such sales by advertising in those particular venues more
aggressively. At the same time, if our initial on-line advertising strategy
proves sufficiently successful, and recently, advertising on Google and Yahoo!
in particular has proved unsuccessful, we will then use the capital generated
thereby to also place ads in recognized golf magazines. Golf Digest, for
example, has a circulation of 1.6 million golfers. Golf Range Magazine, a
wholesale magazine distributed to driving range and golf course owners around
the country, has a circulation of between 12,000 and 16,000. Other national
golf-related magazines are Golf Magazine and Links. There are at least 2
British golf magazines available in the magazine racks at Barnes & Noble.
Further, there are golf magazines that only advertise golf products such at
Golfsmith (www.golfsmith.com) and Edwin Watt's Golf (www.edwinwattsgolf.com).
If this supplemental strategy proves successful, and we generate even more
earnings from these particular efforts, we will consider spending the money
for the development of a suitable retail colored box for use in retail stores.
If this proves successful, we will ultimately consider shooting a 15 or 30
second television commercial and running it on the Golf Channel available on
Cable TV, Dish Network and DirectTV. In this latter regard, and though we lack
the capital at the present time to expend for this purpose, we have actually
contacted an advertising agency in London, England, that we found on-line and
which specializes in inexpensive, short, humorous commercials and which thinks
we could make a short, funny ad for approximately $5,000, taking advantage of
the notion of people who hit a golf ball everywhere but straight. This latter
marketing concept is in the far distant future and at the present time, we
believe it highly unlikely that we would shoot a television commercial, let
alone pay to run it on the Golf Channel.
OUR CURRENT MARKETING AND ADVERTISING STRATEGIES.
As stated above, our basic marketing plan through the end of the 2007 golf
season, is to aggressively seek out drop-shippers, on-line distributors and
specialty golf or sports websites willing to carry our product. Then if money
becomes available for such purpose, to devise and obtain the artwork and bar
code for the design and completion of a colored retail box.
To accomplish our on-line mat sales marketing ideas, we plan to continue our
limited advertising campaigns on (1) Google AdWords, (2)Yahoo! Search
Marketing, (3) Website Pros, an affiliate of Discover Card, (4) Ebay, (5)
AdSonar, a new service described below, and (6) others we come across that we
determine are worthwhile and productive advertising venues for us and our
product. We also plan to continue using the services of our new marketing
consultant or advisor, JV Associates, located in Monte Vista, Colorado. We
will also entertain the idea or prospect of using additional golf consultant
marketing experts to promote us and our product.
Hiring JV Associates in Monte Vista, Colorado, a New Golf Products Specialty
Promotion Firm.
- ---------------
During September, we hired a golf specialty advertising and marketing firm
known as JV Associates located in Monte Vista, Colorado, for an annual fee of
$2,500 to promote our product. JV Associates represents approximately 30% of
all new golf products brought to market. They also do regular press releases
and other direct mail and email to various vendors. We are hoping that this
will be money well spent but we will only know by next September. We are
informed by JV Associates that it takes some time to get one's product known
and that we have to be patient in this regard.
JV Associates has given us an extensive list of high schools and colleges
around the country with golf programs who may be interested in buying our
product; however, soliciting them will require direct mail. As of the date of
this document, we have not engaged in any direct mail efforts to such schools
or anyone else.
Commencement of Pay-Per-Click Advertising on or AdSonar.
- --------------------------------------------------------
During the quarter, we were contacted by Quigo Technologies. See
www.quigo.com. Quigo owns AdSonar, www.adsonar.com, a service that enables
one to do pay-per-click advertising on specialty golf websites, that is,
websites solely devoted to sports in general and golf in particular. Since
Google and Yahoo! pay-per-click advertising was not working out for want of
legitimate buyers of our product, we have decided to give this a try.
Accordingly, we authorized AdSonar to charge $500 on our corporate card on
9/20/06. We commenced this service on September 21, 2006, with a $25 per day
minimum; however, when the $25 was used up quickly by advertising on certain
PGA Tour websites, we discontinued advertising on that particular PGA website,
as it was quickly consuming our daily minimums. AdSonar allows you to pick
and choose which websites you are willing to advertise on. This has cut down
our "clicks" to between $5 and $10 in advertising per day. As of September
30, we had spent $138 for 324 clicks and 358,896 impressions on AdSonar with
an average cost of $0.48 per click. This $500 charge will appear on our next
corporate credit card statement.
The Retail Packaging Issue.
- ---------------------------
In our Annual Report on Form 10-KSB for our fiscal year ended June 30, 2006, a
report filed in September on Edgar, we discussed the advisability of not
spending the money necessary to obtain retail packaging. We have since come
to learn through JV Associates, our new promotional consultant, that retail
packaging may be the only way to substantially sell product inasmuch as people
still buy the large majority of golf products through retail golf stores.
What JV Associates advises is to wait until we get a large order, if we do,
and then we can arrange the necessary packaging. The key is to do a lot of
checking beforehand and find out exactly what such will cost and who will be
able to do it if and when the time comes.
The "Drop Ship" Business.
- -------------------------
As a result of our understanding that it would be too expensive at this time
to spend between $15,000 and $20,000 for a colored retail box prototype, we
have come to believe that our best and most efficient marketing approach for
the time being will be to sign up other on-line golf distributors, that is,
other golf and sports-related websites willing to offer and sell our product.
As stated in previous reports we have filed, this is called the "drop ship"
business. To summarize, what this means is that another person would offer our
product for sale on their website at our retail price; once they get an order,
they communicate the order to us, we ship the product directly to their buyer
without having to process or obtain the individual buyer's credit card
information, and then we send the distributor a bill at our wholesale price.
This can be done on a 30-day net basis.
Providing of Promotional Mats/Efforts to Secure On-Line and Other
Distributors.
- -------------
As a result of our hiring JV Associates, we were put in contact Twin Cities
Golf at info@twincitiesgolf.com and info@golfconnect.com. We have exchanged
emails with them. We are hopeful that we be able to do business with them in
a way that will promote our product. JV Associates also advised that we can
become linked to two large golf websites for free. These are www.golfhelp.com
and www.linksaway.com. We have filled out the on-line form to become linked
on these websites but currently have heard nothing further. Www.golfhelp.com
is supposedly the most visited golf site on the Internet.
Through JV Associates, and as a result of a press release they did on our
behalf, we were contacted by a golf promotional firm known as SGP Operations
located in Ellsinore, California. One of its principals was formerly a vice
president with the large golf company. We sent them two sample or promotional
Mats. They have since communicated back to us that they believe we have a
viable product and they have given us an advertising and promotional proposal.
At present, and since we just spent $2,500 with JV Associates, we are not
interested in spending several thousands of dollars with SPG Operations,
though they may well have substantial important contacts in the industry.
Nonetheless, we are still interested in understanding all that they have to
offer. This remains to be seen and will involve future discussions with them.
At the end of the quarter and as a result of a JV Associates' press release,
we were contacted by email and we later sent a promotional Mat to a writer for
Golf Magazine. We also sent a promotional Mat to an individual who writes for
North Shore Golf Magazine. We have yet to hear from these individuals but are
hopeful that they may end up writing favorable articles about our product in
their magazines.
During the quarter, we were contacted by a British teaching golf pro and also,
a large golf distribution company in Barcelona, Spain. Both wanted samples of
our Mat to determine if they would be interested in promoting or distributing
them in some fashion in Europe. We obliged and sent them 2 Mats during the
quarter.
During the quarter, we also gave a promotional Mat to the trader at a local
stock brokerage firm that has agreed to submit a Form 211 to the NASD on our
behalf for the purpose of getting an Over the Counter Bulletin Board stock
symbol. See heading above titled "Submission of Application to the NASD for
an OTCBB Symbol."
Based on the foregoing, we sent out a total of 7 promotional mats during the
quarter, a figure which reduces our inventory accordingly.
We also received repeated emails from an individual in Nigeria, Africa, who
claimed to be interested in buying 5 or 6 of our mats. Once we quoted him a
price and the cost of shipment, we did not hear back from this individual.
This individual was insistent on paying us with a credit card and we emailed
back that we wanted the money wired into our bank account directly. After
communicating this, we heard nothing further.
Following-up with Previous On-Line Distributor Prospects.
- ---------------------------------------------------------
During the quarter, we heard nothing from a potential distributor located in
Jackson, WY, even though we had sent him a sample Mat two quarters ago and
have followed up with several emails.
During the quarter, we also heard nothing from another large on-line
distributor whom we shipped a sample or promotional Mat last May and with whom
we have conversed once and thereafter exchanged several emails. Since this
distributor's owner has not furnished us with a telephone number and we can
only contact him through email, we are more or less at his disposal. He has
not emailed us back in nearly 2 months. Since he first communicated to us that
he was interested in our product, we do not understand why he has not
responded to our emails.
During the quarter, our only on-line distributor, Patrick McCabe, the owner of
www.sportstrainingaids.com, furnished us with the contact information for a
forthcoming golf trade show in Orlando, FL. Mr. McCabe communicated that he
has generated a lot of business at these shows and has never attended one that
didn't pay for itself. We have not decided whether we will spend the money in
January to purchase and set up a booth at the Orlando Golf Show in January.
We are informed that the recent Las Vegas golf exposition cost exhibitors
$10,000 per exhibit and that there were NOT a lot of members of the public in
attendance as everyone who attended had hoped.
Promotional Activities at Golf Courses to Promote Our Product.
- --------------------------------------------------------------
During the quarter, our principal, Mr. Coombs, treated a few people to rounds
of golf in an effort to promote our Mat and potentially raise money for us.
The total cost of these promotional efforts was $208.
Advertising and Website Hosting Costs and Expenses Incurred During the
Quarter.
- --------
Throughout the quarter, we advertised on Yahoo! Search Marketing and Google
AdWords. Though a total of seven Swing-Channel Golf Mats were shipped to
potential retailers and distributors (and one was given to a securities
broker-dealer) during the quarter for promotional purposes, there was actually
only the one sale. We thus reduced our inventory by a total of 8 Mats. In
spite of such negligible sale(s) during the quarter, we incurred Yahoo! Search
Marketing expenses of $1,473.61. This total figure involved 4,279 clicks or
website hits on Yahoo! at an average cost, during the quarter, of about 34
cents per click. There were also 1,286, 401 "impressions," meaning times or
occurrences that people pulled up a page with our ad but whom didn't click on
our ad.
During the quarter, we incurred $752.41 in Google AdWords pay-per-click
advertising expenses. This total figure involved 1,581 clicks on or through
Google at an average cost, during the quarter, of $0.48 per click or website
hit. There were also 426,731 "impressions."
Based on the preceding two paragraphs, Mr. Coombs advanced us, through his own
credit card, a total of $383.63 for on-line advertising, money not run through
our bank account.
As stated above, we have come to the realization that advertising on Google
AdWords and Yahoo! Search Marketing is a waste of money. What it does is
attract curious "on-line surfers" but not people interested in actually
purchasing our golf product. To be sure, we rarely if ever get an email
asking a question about our product and the only times we do, it has been from
Ebay auction ads.
What we have decided to do, however, is to continue advertising on Google and
Yahoo! in very limited fashion by reducing our bids per click down to between
15 cents and 30 cents. This has resulted in daily charges of less than $10
and sometimes less than $5 per day and thus keeps us on both Google and Yahoo!
search engines. For this reason and this reason alone, we believe that Google
and Yahoo! are worth it but we do NOT intend to again advertise on Google or
Yahoo at $1 or 50 cents per click for some-$25 per day in pay-per-click
advertising.
Website Hosting Costs and Charges During the Quarter.
- -----------------------------------------------------
During the quarter, we were charged $39.95 each month by Yahoo! Merchant
Solutions to maintain and host our website.
Discover Card/Website Pros.
- ---------------------------
Other advertising expenses we incurred during the quarter were internet Yellow
Pages-type listings with Website Pros, a service owned by Discover Card.
These expenses totaled $101.68 for August and September and were directly
debited out of our checking account. (We had complained earlier about certain
service and been allowed a zero charge for July.) Because we had not been
seeing the benefit of this service, we called Website Pros an about August 31
and reduced our monthly subscription to national Yellow Pages ads only, thus
eliminating local Yellow Pages advertising on the Internet. This reduces our
monthly fee from $49.95 to approximately $19 from now on. After talking to
Website Pros, we have decided to maintain our listing at the reduced rate in
order to rank higher on "generic" searches. Website Pros informed us that if
we eliminate our listing with them altogether, we will no longer be found on a
lot of search engines. Whether or not this is true, it is probably worth $19
per month to make certain that we don't lose what "generic" Internet listings
we have.
Ebay Internet Auctions.
- -----------------------
We undertook $26.80 worth of on-line auctions with Ebay during the quarter.
This amount was debited directly out of our checking account.
Website Enhancements.
- ---------------------
During the last quarter ended June 30, 2006, we disclosed that we undertook
certain website enhancements to make our website more accessible in a so-
called "generic search." These enhancements were completed during our first
quarter ended September 30. We believe that these fairly minor website
adjustments or enhancements have increased "hits" on our website though we
can't be certain because, during this first quarter, we changed our marketing
strategy and began pay-per-click advertising on AdSonar, at the same time
substantially reducing our ad campaigns on both Yahoo! Search Marketing and
Google AdWords.
In addition, because we have received a Certificate of Registration of our
trademark and trade name SWING-CHANNEL, it is incumbent upon us to change the
little "TM" symbol or insignia next to SWING-CHANNEL on our literature and on
our website to a capital "R" with a circle around it. This identifies our
trademark and trade name as being registered and thus, federally protected.
After we received such Certificate from the U.S. Patent and Trademark Office
in late August, we contacted our website designer, Mr. Michael Woodward, a
graphic artist in North Carolina. While he is very busy, he indicated that he
would go into our website and make those changes for us. In addition, for
some time, we have wondered whether our product has had slow sales because the
young man demonstrating the product on our home page is wearing short pants
and does not really appear as a professional golfer. We don't know for
certain. We can only guess. However, we re-took pictures of this individual
and sent the pictures, via email, to Mr. Woodward. Mr. Woodward has agreed to
put long pants on the demonstrator of our product on our website home page,
assuming the prototype home page looks good and we ultimately want to make
this change. As of the date of this Report, these small website enhancements
or changes have not been done.
Additional Marketing Strategies We Seek to Explore and Pursue if Funds Become
Available for Such Purposes.
- ----------------------------
Marketing ideas that have not as yet been implemented by us include a desire
to additionally promote our website
(1) through links to other websites,
(2) through distributorship relationships with other sports and golf-related
websites,
(3) through ads placed in various retail and wholesale golf magazines such as
Golf Digest, Golf Magazine, Links, Golf Range Magazine, and others,
(4) attend golf tradeshows and expos across the country,
(5) through contacting and then supplying retail sporting goods stores and
retail specialty golf stores across the country with our product, either on
consignment basis or, on a high volume discounted basis for which they will
pay us in advance, and
(6) through television commercials on the Golf Channel at such time as
earnings or funding becomes available to shoot such a commercial and pay for
the cost of airing it on television.
As a courtesy to us, a company that manufactures and sells point of sale
accounting systems for golf course pro shops is now featuring a link to our
website for free. See www.cgmsgolf.com. There are also regular golf
tradeshows/expositions throughout the country from time to time. We will
actively look into attending these expositions and showcasing our product
there in a booth.
In order for our Internet/eCommerce business to succeed, we additionally plan,
among those things mentioned above, and on an on-going basis, to:
- -- make significant investments in our Internet/eCommerce business, including
upgrading our website as it becomes necessary
- -- get other golf or sports-related websites to link ours
- -- significantly increase online traffic and sales volume in every way we can
- -- attract and retain a loyal base of frequent visitors to our website who
will give us feedback about our product
- -- expand the products and services offered on our website
- -- respond to competitive developments and maintain our distinct brand
identity
- -- form and maintain relationships with strategic partners, particularly
retail sporting goods stores and outlets
- -- provide quality customer service
- -- continue to develop and upgrade our product, services and technologies
No Endorsements From PGA Professionals.
- ---------------------------------------
Currently on our website we have one professional golf instructor and teacher
who has endorsed our product. See the heading titled "Testimonials" on our
website. We have not as yet approached anyone else to "endorse" our product,
as we have lacked the time or other opportunity at this stage and have instead
concentrated on getting our website operational and our product able to sell
and ship. Our current absence of a PGA professional's endorsement of our
product, assuming that we could obtain one, has therefore currently been a
business decision. As time goes on, we hope to be able to approach well-known
PGA touring professional golfers and see what it would take, or will take, to
get such a person's endorsement of our product. At present, we lack the
ability to offer any such person anything in exchange for his or her
endorsement. At such time as we can, we hope to be able to do so. We note that
one competitor with a product called "The Inside Approach," has been able to
obtain the endorsement of legendary golf pro Jack Nicklaus. We currently lack
the money or other resources to attract the endorsement of a golf professional
like Jack Nicklaus and can make no assurance that we will ever be able to do
so. While it is conceivable that we could issue such a person "restricted"
stock in us in exchange for an endorsement, we have no plans at the present
time to do so. We would also be leery of doing so unless we could quantify, in
some fashion, the amount of sales that such an endorsement would generate or
cause to occur. To issue someone stock, without knowing to what extent it
would increase sales and thus generate income, would likely be irresponsible
on our part and we have no intention of doing so without knowing what the
direct result or effect of that corporate action would likely be.
This-Coming Golf Season Sales Targets.
- --------------------------------------
Basis: Sales of our Mat at a suggested retail price of $79.95, plus
$15 for shipping and handling anywhere in the continental U.S.
and Canada
Inventory: Currently we have enough material in stock and on hand to
make between 120 and 122 Mats
Intention: To sell all 120 or 122 Mats we can now make by June
30, 2007 (basically by the middle of next year's golf season)
Future: Our initial, short term goal is to sell at least 20 to 25
Mats per month during the upcoming regular golf season. We
currently have no way of predicting or knowing how many Mats
the market for our product will absorb or take considering how
unknown our product is at the present time
Management intends to strive, over the next 12 months, to market and sell 120
or 122 Mats, all the material for which we currently have in inventory and on
hand. In such event, we will then pour those profits into beefed-up or
enhanced advertising and promotional campaigns. Our profit on the sale of 120
to 122 Mats would be nearly $7,000, depending upon how many we would be
required to sell on a discounted or even wholesale basis. This figure is
arrived at on the basis of a $79.95 sales price. This profit figure does not
take into consideration Mats that we would ultimately give away for
promotional purposes.
Employees, Experts, Consultants and Advisors.
- ---------------------------------------------
Currently, we have no employees. Employees will NOT be necessary at this stage
of our development. Our sole officer and director will perform daily duties as
needed. We only intend to hire employees if and when the need develops. In
fact, there is nothing really that could occur that would require us to hire
employees. Unless processing orders becomes so time consuming for our sole
officer and director that he lacks the time to look up the orders and
communicate them to our warehouse facility to put a shipping package together,
we cannot envision what would occur that would require such. If sales start
growing over the next nine months or year and if we are selling 100 mats a
month through our website and otherwise, we will likely be required to hire at
least one employee to take orders and assist in shipment of product. Since
this has not occurred and there is no assurance or current likelihood that it
will, we are not in a position to make further projections or estimates in
this regard.
At the same time, our sole director and officer, who is NOT a paid employee,
intends to defer any compensation that might be due or owed him until such
time as capital can be raised from sales.
In implementing our business plan, we are holding expenses to a minimum and we
plan to obtain expert and other services on a contingency basis if and when
needed. Right now, we have no need for any outside experts, advisors or
consultants. If we engage outside advisors or consultants for any particular
purpose in addition to JV Associates, a new golf product marketer whom we
hired during the quarter, we will have to make a determination as to how such
persons will be compensated. We have NOT made any arrangements or definitive
agreements as yet to use any additional outside experts, advisors or
consultants for any reason. This is because, so far, we do not believe we need
to and also, we do not currently have any funds available for such purpose.
We do NOT intend to use or hire any employees, with the possible exception of
part-time clerical assistance on an as-needed basis. Outside advisors or
consultants will be used only if they are needed and can be obtained for
minimal cost or on a deferred payment basis. Other than our website
maintenance technician that we shall continue to use to update or revise our
website as it becomes necessary, we are not aware of any situation in which we
would need an outside advisor or consultant.
Item 3. Controls and Procedures
We maintain controls and procedures designed to ensure that the information
required to be disclosed in the reports that we file or submit under the
Securities Exchange Act of 1934 is recorded, processed, summarized and
reported within the time periods specified in the rules and forms of the
Securities and Exchange Commission. Based upon our evaluation of those
controls and procedures performed as of the end of the period covered by this
report, our chief executive officer and the principal financial officer (or
persons performing similar functions) concluded that our disclosure controls
and procedures were effective. As a result of its evaluation, we have made no
significant changes in our internal controls or other factors that could
significantly affect the controls and other procedures already in place.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
None.
Item 3. Defaults upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other information.
We are not aware of any other information that should be reported on this form
that has not been disclosed above.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
None. All Sarbanes-Oxley certifications are after the signature line at the
end of this document.
(b) Reports on Form 8-K
None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Issuer has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EASY GOLF CORPORATION
(Issuer)
Dated: November 24, 2006
/s/ John Michael Coombs
---------------------------------
By: John Michael Coombs
Its: Chairman of the Board
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, this Report has also been signed below by the following person on
behalf of the Registrant and in the capacities and on the dates indicated.
Dated: November 24, 2006
/s/ John Michael Coombs
---------------------------------
By: John Michael Coombs
Its: President, Chief Executive Officer
and CFO (Principal Accounting and
Financial Officer)