UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-QSB
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the second quarter ended December 31, 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 February 12, 2007
- ----------------- ----------------------------------------
Common Capital Voting Stock, 3,506,428 shares
$0.001 par value per share
FORWARD-LOOKING STATEMENTS
Certain statements contained in this Report 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 SHEET
December 31, June 30,
2006 2006
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 105 $ 56
Inventory 3,101 3,430
Prepaid insurance 881 -
------------ ---------
Total Current Assets 4,087 3,486
Other Assets
Deposits 116 116
License rights 3,489 3,721
------------ ---------
Total Other Assets 3,605 3,837
------------ ---------
Total Assets $ 7,692 $ 7,323
============ =========
LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities
Accounts payable $ 5,880 $ 6,060
Advances from stockholders 38,411 23,017
------------ ---------
Total Current Liabilities 44,291 29,077
Stockholders' Equity
Common Stock - $0.001 par value, 50,000,000 shares
authorized 3,506,428 issued and outstanding 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 (41,249) (26,404)
------------ ---------
Total Stockholder's Equity (36,599) (21,754)
------------ ---------
Total Liabilities and Stockholders' Equity $ 7,692 $ 7,323
============ =========
The accompanying notes are an integral part of these financial statements.
F-1
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
For the Period
From
April 2, 2004
For the Three For the Six (Date of inception
Months Ended Months Ended of the Development
December 31, December 31, Stage) Through
2006 2005 2006 2005 December 31, 2006
Sales $ 277 $ 187 $ 372 $ 187 $ 559
------- --------- --------- --------- ---------
Total Sales 277 187 372 187 559
Cost of Goods Sold 135 70 169 70 239
------- --------- --------- --------- ---------
Total Cost of Goods Sold 135 70 169 70 239
------- --------- --------- --------- ---------
Gross Profit 142 117 203 117 320
Operating Expenses
General & Administrative 8,297 5,043 14,817 9,968 40,079
Research & Development - - - - 328
Amortization 116 116 232 232 1,162
------- --------- --------- --------- ---------
8,413 5,159 15,049 10,200 41,569
------- --------- --------- --------- ---------
Loss From Operations (8,271) 5,042) (14,846) (10,083) (41,249)
Other Income
Interest and dividend
income - - - - -
------- --------- --------- --------- ---------
Loss Before Income Taxes (8,271) (5,042) (14,846) (10,083) (41,249)
Benefit for Income Taxes - - - - -
------- --------- --------- --------- ---------
Net Loss $(8,271) $ (5,042)$ (14,846)$ (10,083) $ (41,249)
======= ========= ========= ========= =========
Basic Loss per Share $ (0.00) $ (0.00)$ (0.00)$ (0.00) $ (0.02)
======= ========= ========= ========= =========
Weighted Average Common
Shares Used In Per Share
Calculations 3,506,428 3,506,428 3,506,428 3,506,428 2,511,862
========= ========= ========= ========= =========
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 CASH FLOWS
(Unaudited)
For the Period
From April 2,
2004 (Date of
Inception of the
Development
For the Six Months Ended Stage) Through
December 31, December 31, December 31,
2006 2005 2006
Cash flows used in operating activities:
Net income (loss) $ (14,846) $ (10,083) $ (41,249)
Adjustments to reconcile net loss
to cash used in operating
activities
Amortization 232 232 1,161
Change in operating assets and
liabilities:
(Increase) Decrease in Inventory 329 (3,568) (3,101)
(Increase) Decrease in Prepaid
Insurance (880) - (881)
(Increase) Decrease in Deposits - - (116)
Increase (Decrease) Accounts Payable (180) (80) 5,880
-------- ------- --------
Net cash used in operating
activities (15,345) (13,499) (38,306)
Cash flows from investing activities: - - -
-------- ------- --------
Net cash flows provided by
investing activities - - -
Cash flows from financing activities:
Advances from stockholders 15,394 13,580 38,411
-------- ------- --------
15,394 13,580 38,411
-------- ------- --------
Net increase in cash 49 81 105
Cash and cash equivalents at beginning
of period 56 186 -
-------- ------- --------
Cash and cash equivalents at end of
period $ 105 $ 267 $ 105
======== ======= ========
The accompanying notes are an integral part of these financial statements.
F-3
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, 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 and into
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 six
months ended December 31, 2006, the Company had a loss of $14,846 and used
cash from operations of $15,345. The general and administrative expenses for
the three months ended December 31, 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 December 31, 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 affect 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-4
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
is 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 six months ended
December 31, 2006 and 2005 was $116 and $116, 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 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)
collectability 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 collectability 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-5
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.
In September 2006, the FASB issued SFAS No. 157, FAIR VALUE MEASUREMENTS.
This statement defines fair value, establishes a framework for measuring fair
value in generally accepted accounting principles (GAAP), and expands
disclosures about fair value measurements. This Statement is effective for
financial statements issued for fiscal years beginning after November 15,
2007, and interim periods within those fiscal years. The adoption of SFAS 157
did not have an impact on the Company's consolidated financial statements. The
Company presently comments on significant accounting policies (including fair
value of financial instruments) in Note 2 to the financial statements.
In September 2006, the FASB issued SFAS No. 158, EMPLOYERS' ACCOUNTING FOR
DEFINED BENEFIT PENSION AND OTHER POSTRETIREMENT PLANS -AN AMENDMENT OF FASB
STATEMENTS NO. 87, 88, 106 AND 132(R). This statement improves financial
reporting by requiring an employer to recognize the overfunded or underfunded
status of a defined benefit postretirement plan (other that a multiemployer
plan) as an asset or liability in its statement of financial position and to
recognize changes in that funded status in the year in which the changes occur
through comprehensive income of a business entity or changes in unrestricted
net assets of a not-for-profit organization. The
adoption of SFAS No. 158 did not have an impact on the Company's consolidated
financial statements.
F-6
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
NOTE 2 INVENTORIES
Inventories consisted of the following:
December 31 June 30
2006 2006
Finished goods $ 3,101 $ 3,430
Raw materials - -
Work in process - -
-------- -------
Total $ 3,101 $ 3,430
======== =======
NOTE 3 INTANGIBLE ASSETS
Intangible assets at December 31, 2006 and June 30, 2006 are carried at cost
and consist of the following:
December 31 June 30
2006 2006
License rights $ 4,650 $ 4,650
Less: Accumulated amortization (1,161) (929)
-------- -------
Total $ 3,489 $ 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 pre-split 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.
F-7
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
NOTE 6 RELATED PARTY TRANSACTIONS
Related Party Advances. During the period from inception of the development
stage April 2, 2004 through December 31, 2006, an officer and shareholder of
the Company has advanced the Company $38,411 to pay operating costs of the
Company. The advances bear no interest and are due on demand.
Management Compensation. For the six months ended December 31, 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.
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 $41,249 which may be
applied against future taxable income and which expires in various years
through 2028. 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 $6,187 and $4,000 as of December 31, 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
$2,187 and $1,714 during the six months ended December 31, 2006 and 2005.
F-8
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
NOTE 9 LOSS PER SHARE
The following data show the amounts used in computing loss per share:
For the Period
From
April 2, 2004
For the Three For the Six (Date of inception
Months Ended Months Ended of the Development
December 31, December 31, Stage) Through
2006 2005 2006 2005 December 31, 2006
(Loss) from continuing
operations available to
common stockholders
(numerator) $ (8,271) $ (5,042) $ (14,846) $ (10,083) $ (41,249)
--------- --------- --------- --------- ---------
Weighted average number
of common shares
outstanding used in
earnings per share
during the period
(denominator) 3,506,428 3,506,428 3,506,428 3,506,428 2,511,862
--------- --------- --------- --------- ---------
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.
NOTE 10 SUBSEQUENT EVENT
During January, 2007 an officer and shareholder advanced the company $6,000 to
pay the liabilities outstanding as of December 31, 2006. The advance bears no
interest and is due on demand.
F-9
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 our first quarter ended September 30, 2006, 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 second quarter ended December 31, 2006, we continued to reduce or
minimize 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. These advertising
efforts generated but three sales during our second quarter and one sale, so
far, during our third quarter which shall end March 31, 2007. During our
second quarter, we also gave away some 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 over a year ago.
Since our re-emergence from dormancy nearly three 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 December 31, 2006, of $41,249.. 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 second quarter
ended December 31, 2006, we had $105 in our checking account. As of the date
of this quarterly report, we have $267 in our checking account. Since the end
of our second quarter ended December 31, 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 December 31, 2006, we had $105 in our checking account. As of the date of
this Quarterly Report, we have $267 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 a
total of $7,050 in cash in our bank account.
In January 2007, after our second quarter had ended, Mr. Coombs advanced us
another $6,000 in order to pay a total of $5,880.05 in payables or debts left
unpaid as of December 31, 2006. These payables included $4,166 owed our
auditors, $34 owed Federal Express, $913 owed for renewal of our products
liability policy, and $767 to pay outstanding charges on our corporate Visa
card. These accounts have all been brought current.
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, or at least we will know by then or sooner that it cannot be
carried out in the current form that it is in. 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, or a modified plan. 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 have also budgeted approximately $2,500 per year in "in-house"
accounting fees. 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 2006, we renewed our annual
products liability insurance policy at a cost of $914 per year. This policy
comes up for renewal every December 15. This means that we anticipate that
approximately $12,500 in cash per year shall be necessary to satisfy our
minimal cash requirements.
Though we have not been actively looking for any financing, 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 or
otherwise eventually generate the funding necessary to produce a colored
retail box with a bar code for retail stores. 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, including the promotional efforts we have hired JV Associates in
Monte Vista, Colorado, to undertake over the next year on our behalf.
During the quarter, we came across an article in the combined issue of
Business Week and Golf Digest called "No Gimmes," an article authored by Dean
Foust. The article discusses the difficulty people have had over the last few
years breaking into the overall golf market and, in particular, mentions a man
in Silicon Valley, California, who spent $3 million of his own money trying to
market a putter he invented to no avail. This makes us realize that getting
our Swing-Channel Golf Mat to take off will be a long term endeavor and that
there are tremendous hurdles, risks and expenses involved if one wants to
ultimately become profitable. We can make no assurance whatsoever that, if
sales continue to improve, as they did this quarter, that we will be able to
break even, let alone make a profit. We do still have enough material on hand
to manufacture between 116 and 118 Mats.
Obtaining an OTCBB Symbol During the Quarter.
- ---------------------------------------------
During the middle of December, we obtained an Over the Counter Bulletin Board
(OTCBB) symbol from the National Association of Securities Dealers, Inc.
(NASD). That symbol is EGOF.OB. On December 27, 2006, we sent out a letter
to our shareholders announcing that we had obtained a symbol. A copy of this
letter to our shareholders is attached as an exhibit to this quarterly report.
Sales During the Quarter.
- -------------------------
Though we toned down our "on-line" advertising during the quarter, we had a
total three sales, the best quarter we have ever had. One was to an
individual in Illinois, one to a resident of Washington state and a third to a
Colorado resident. This resulted in gross income of $277. Though we actually
tripled our sales this quarter, we remain somewhat disappointed. We continue
to 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.
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" both on the Internet
through our custom-built website, and also 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 or even all of
Europe. 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 some 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.
- --------------------------
During the quarter, we sold 3 Mats on-line through our website and we gave
away but one Mat for promotional purposes to a golf products television
program located in Alabama and which broadcasts golf programs throughout the
Southern United States. Unfortunately, this program will not be aired to any
significant degree until the Spring. The golf season, to some degree, is in
hiatus during these winter months and therefore, we really haven't had
important prospects to whom we could ship any promotional Mats during the
quarter. We have sufficient mat-making material remaining on hand, according
to our calculations, to make between 116 and 118 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 that have golf education programs, 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 modestly 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
The 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 contacted an advertising agency in London, England, that we
found on-line and which specializes in inexpensive, short, humorous
commercials. This agency 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.
Assuming that we can afford them, 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, that is, our first quarter, 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. JV
Associates also does 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. We believe there is some truth to this in that right after we reduced
our advertising on Yahoo! and Google, we noticed our daily website hits
substantially decrease. Yet over the last 3 months and, as an additional
result of some website enhancements we did in the first quarter, our website
hits have been back up to over 100 per day, nearly as many hits as when we
were budgeting $25 per day for ads on Yahoo! and Google. We have had a few
days in the last while of nearly 200 website hits per day.
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 previous quarter, we began advertising on 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 decided to give this a
try. As stated in our previous Form 10-QSB, AdSonar allows you to pick and
choose which websites you are willing to advertise on. During our second
quarter, we incurred AdSonar pay-per-click advertising expenses of $497.10,
which involved 1,508 clicks or hits at an average cost of about 33 cents each
and 1,705,379 "impressions."
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 our 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. We have been in the process of
doing just that.
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 $25,000 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.
- -------------
During our first quarter, JV Associates advised us 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 and according to our understanding, we are now linked to their
websites. Www.golfhelp.com is supposedly the most visited golf site on the
Internet.
During the quarter, we provided one promotional Mat to a gentleman in Alabama
with whom we had exchanged numerous emails and who was involved in a local
golf show that purportedly aired in the Southern U.S. on a regular basis. The
program is called The Golfer's Edge and, among other things, features new golf
products. Because the golf season is in its hiatus during these winter
months, this is the only promotional Mat we sent out during the quarter, a
figure which reduces our inventory accordingly.
At the very end of the quarter, we contacted The Sharper Image Catalogue with
the idea of getting our Mat featured in their catalogue. We have yet to hear
back from them, probably because we contacted them during the Christmas
holidays. We thus need to follow up again.
Following-Up with Previous Distributor Prospects.
- -------------------------------------------------
At the end of our first quarter and as a result of a JV Associates' press
release, we sent a promotional Mat to a writer for Golf Magazine and another
to another individual who writes for North Shore Golf Magazine. We have heard
from both these gentlemen, one of whom has advised us that he will contact us
in the Spring when the golf season starts up again and the other of whom said
that he is still "testing" the product.
During our first 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. As we reported in our last Form
10-QSB, we obliged and sent them each a Mat during our first quarter. Since
that time, we have been told by the golf pro that he has been out of the
country and he has unfortunately not had time to look at, and test, our
product. We were also contacted by the golf distribution company in Spain who
asked to meet with us at the annual golf show in Orlando, Florida. We do not
yet know, at this time, if we will attend that show or not. If we do, we will
certainly follow up on this potential European distributor.
Advertising and Website Hosting Costs and Expenses Incurred During the
Quarter.
- --------
Throughout the quarter but in more limited fashion than in the past, we
advertised on Yahoo! Search Marketing and Google AdWords. Since we sold 3 Mats
during the quarter and gave one away for promotional purposes, we reduced our
inventory by a total of 4 Mats. In spite of such slightly improved sale(s)
during the quarter, we incurred Yahoo! Search Marketing expenses of $411. This
total figure involved 1,280 clicks or website hits on Yahoo! at an average
cost, during the quarter, of about 32 cents per click. There were also 377,039
"impressions," meaning times or occurrences that people pulled up a page with
our ad but who didn't actually click on our ad and thus end up visiting our
website.
During the quarter, we incurred only approximately $75 in Google AdWords pay-
per-click advertising expenses. This total figure involved 212 clicks on or
through Google at an average cost, during the quarter, of 36 cents per click
or website hit. There were also 55,755 "impressions."
As stated above, we have come to the realization that advertising on Google
AdWords and Yahoo! Search Marketing is basically 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. Nonetheless, we continue to advertise on Yahoo!
and Google for the essential purpose of maintaining a level of recognition on
their search engines. This, we believe, explains why we are now getting an
average of about 100 hits per day on our website. A week or so ago, we
actually had a couple of days in which we got nearly 200 hits per day. We
attribute this to our coming up higher in a "generic search" on Yahoo! and/or
Google.
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 total $19 per month and are directly debited out of our checking
account. We maintain this listing 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 search listings we currently have.
Ebay Internet Auctions.
- -----------------------
We undertook no on-line auctions with Ebay during the quarter. Frankly,
because of the Christmas and holiday season, we believe this was a mistake.
When we do undertake an Ebay auction, the cost is debited directly out of our
checking account. We intend to do more Ebay auctions during our third quarter
and as golfers become more excited about the upcoming golf season.
Website Enhancements.
- ---------------------
During our fourth 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 our first and second quarters, 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. Having said this, we attribute our average of about 100
hits per day on our website to these enhancements and also to the fact that we
are getting better known in the industry.
In addition, because we have received a Certificate of Registration of our
trademark and trade name SWING-CHANNEL last August, 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 make those changes for us. However, unfortunately,
he remains very busy and has not as yet been able to do so. 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 some time ago. 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 home page change. As of the date of this report, however, 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 116 and 118 Mats
Intention: To sell all 116 or 118 Mats we currently have the inventory on
hand to make by September 30, 2007 (basically by the end of
this year's golf season)
Future: Our initial, short term goal is to sell at least 12 to 15
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 9 months, to market and sell
between 116 and 118 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 116 to 118 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 our first 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.
On December 27, 2006, we mailed out a letter to our shareholders advising that
the NASD had assigned us an OTCBB symbol. See Item 6(a) below.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
We have attached our December 27, 2006, letter to our shareholders as an
exhibit to this report. This letter advises of our having been assigned an
OTCBB symbol during December. In addition, all Sarbanes-Oxley certifications
are set forth 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: February 12, 2007
/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: February 12, 2007
/s/ John Michael Coombs
---------------------------------
By: John Michael Coombs
Its: President, Chief Executive Officer
and CFO (Principal Accounting and
Financial Officer)