UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 10Q/A
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(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended July 31, 2010
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from __________ to ___________
Commission file number : 000-27211
MEDINA INTERNATIONAL HOLDINGS, INC.
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(Exact name of registrant as specified in its charter)
COLORADO 84-1469319
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(State of Incorporation) (IRS Employer ID Number)
1802 Pomona Rd., Corona, CA 92880
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(Address of principal executive offices)
909-522-4414
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(Registrant's Telephone number)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the past 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to the filing requirements for
the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant has submitted electronically and
posted on its corporate Web site, if any, every Interactive Data File required
to be submitted and posted pursuant to Rule 405 of Regulation S-T (ss.232.405 of
this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit and post such files). Yes [ ] No []
Indicate by check mark whether the registrant is a large accelerated file, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] (Do
not check if a smaller reporting company) Smaller reporting company [X]
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [ X]
Indicate the number of share outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
As of August 1, 2010, there were 51,006,747 shares of the registrant's common
stock issued and outstanding.
Explanatory Note
Medina International Holdings, Inc. (the Company) is filing this Amendment No. 1
to its Quarterly Report on Form 10-QA for the quarter ended July 31, 2010, filed
with the Securities and Exchange Commission on August 20, 2010, for the sole
purpose of amending Part I, Item 2 Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Page
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
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Report of Independent Registered Public Accounting Firm F-1
Consolidated Balance Sheets - July 31, 2010 and April 30, 2010 F-2
Consolidated Statements of Operations -
Three months ended July 31, 2010 and 2009 F-3
Statements of Cash Flows -
Three months ended July 31, 2010 and 2009 F-4
Statement of Changes in Stockholders' Equity (Deficit) F-5
Notes to Consolidated Financial Statements F-6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 1
Item 3. Quantitative and Qualitative Disclosures About Market Risk -
Not Applicable
Item 4. Controls and Procedures 3
Item 4T. Controls and Procedures 4
PART II - OTHER INFORMATION
Item 1. Legal Proceedings -Not Applicable 4
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 5
-Not Applicable
Item 3. Defaults Upon Senior Securities - Not Applicable 5
Item 4. Rescinded and Removed 5
Item 5. Other Information - Not Applicable 5
Item 6. Exhibits 5
SIGNATURES 6
PART I. - FINANCIAL INFORMATION
MEDINA INTERNATIONAL HOLDINGS, INC.
AND SUBSIDIARIES
Consolidated Balance Sheets
July 31, April 30,
2010 2010
(Unaudited) (Audited)
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ASSETS
Current Assets:
Cash $ 10,631 $ 107,223
Receivables 62,283 62,283
Inventory 136,081 164,652
Other receivables 465 465
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Total current assets 209,460 334,623
Fixed Assets: 1,065,055 1,065,055
Accumulated depreciation (400,469) (361,207)
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Total fixed assets 664,586 703,848
Other Assets:
Deposits 18,770 8,249
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Total other assets 18,770 8,249
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TOTAL ASSETS $ 892,816 $ 1,046,720
=============== ================
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 588,793 $ 640,056
Accrued liabilities 212,596 186,075
Bank Overdraft 94,932 94,932
Short term deposit 111,673 119,825
Customer Deposit 243,300 308,000
Stock subscription payable 1,250 -
Notes payable 75,000 104,000
Related party payable 863,339 870,941
Related Parties - short-term borrowings from shareholders 418,768 407,217
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Total current liabilities 2,609,651 2,731,046
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Stockholders' equity (deficit):
Preferred stock, $.01 par value, 10,000,000 shares authorized Series A
preferred stock, $0.01 par value, 50 shares authorized,
20 shares issued and outstanding 240,000 240,000
Common stock, $.0001 par value, 100,000,000 shares authorized,
51,006,747 and 51,006,747 shares issued and
outstanding on July 31, 2010 and April 30, 2010 5,100 5,100
Additional paid-in capital 3,513,928 3,513,928
Accumulated deficit (5,475,863) (5,443,354)
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Total stockholders' equity (deficit) (1,716,835) (1,684,326)
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) $ 892,816 $ 1,046,720
=============== ================
The accompanying notes are an integral part of these financial statements.
F-1
Medina International Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended
July 31,
2010 2009
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Sales, net $ 488,260 $ 870
Cost of Goods Sold 355,264 64,229
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Gross Profit 132,996 (63,359)
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General and administrative expenses 102,366 120,824
Selling and marketing expenses 53,131 287
Research and development expenses - 1,370
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Loss from operations (22,501) (185,840)
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Other income - (843)
Interest expense 10,008 26,055
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Net other income (10,008) (25,212)
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Loss before income tax (expense) benefit (32,509) (211,052)
Income tax (expense) benefit - -
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Net Loss from Operations $ (32,509) $ (211,052)
================= ===================
Net loss per share:
Basic $ (0.0006) $ (0.0041)
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Diluted $ (0.0006) $ (0.0041)
================= ===================
Weighted average number of shares outstanding:
Basic 51,006,747 51,006,747
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Diluted 51,006,747 51,006,747
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The accompanying notes are an integral part of these financial statements.
F-2
Medina International Holdings, Inc. and Subsidiaries
Consolidated Statements of Shareholders' Equity
As of July 31, 2010
(Unaudited)
Additional Common
Common Stock Preferred Stock Paid-In Stock Subscription Accumulated
Shares Amount Shares Amount Capital Subscribed Receivable Deficit Totals
----------- --------- ------ ---------- ------------ --------------------------------- ----------
Balance - April 30, 2009 35,560,091 $ 3,556 - $ - $ 2,419,032 $10,000 $ (3,000)$(4,698,284) $(2,268,696)
Stock issued for subscription
payable 20 240,000 240,000
Stock issued to Directors 50,000 5 3,157 3,162
Stock issued for subscription
payable 11,091,250 1,109 661,629 662,738
Stock issued for accrued
liabilities 4,135,000 413 413,087 413,500
Shares issued for rent 70,406 7 7,033 7,040
Stock subscription receivable 100,000 10 9,990 (10,000) 3,000 (3,000) -
Net loss (742,070) (742,070)
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Balance - April 30, 2010 51,006,747 5,100 20 240,000 3,513,928 - - (5,443,354) (1,684,326)
-------------------------------------------------------------------------------------------------
Net loss (32,509) (32,509)
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Balance - July 31, 2010 51,006,747 $ 5,100 20 $240,000 $ 3,513,928 $ - $ - $(5,475,863) $(1,716,835)
===================== ===========================================================================
The accompanying notes are an integral part of the financial statements
F-3
MEDINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARY
Consolidated Statement of Cash Flows
(Unaudited)
For the Three Months Ended
July 31,
2010 2009
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Cash flows from operating activities:
Net loss $ (32,509) $ (211,052)
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Adjustments to reconcile net loss to net cash
used in operating activities:
Common stock issued in exchange
for Consulting - -
Common stock issued in exchange services 1,250 375
Depreciation 39,262 42,986
Changes in operating assets and liabilities:
Impairment Loss on Investment - 1,927
Decrease in receivables - 3,166
Decrease (increase) in inventory 28,571 (39,132)
Increase in other receivables (10,521) -
(Decrease) increase in accounts payable (51,263) 28,970
Increase in accrued payables 26,521 100,053
(Decrease) in customer deposits (64,700) -
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Total adjustments (30,880) 138,345
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Net cash received from (used in) operating activities (63,389) (72,707)
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Cash flows from investing activities:
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Net cash used in investing activities - -
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Cash flows from financing activities:
Bank overdraft - -
Payments on notes payables, related party (7,602) (14,197)
Customer deposit - 2,680
(Payment) Proceeds on/from note payable (29,000) 25,000
Payment onshort term deposit (8,152) -
Proceeds from lines of Credit 11,551 24,531
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Net cash (used in) provided by financing activities (33,203) 38,014
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Net (decrease) in cash (96,592) (34,693)
Cash and cash equivalents - beginning of period 107,223 36,576
Cash and cash equivalents - end of period $ 10,631 $ 1,883
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Supplemental disclosure of cash flow information:
Interest Paid $ 10,008 $ 26,055
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Taxes paid $ - $ -
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Non-cash financing and investing activities:
Equipment Purchased from related party $ - $ -
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Stock issued for compensation $ 1,250 $ 375
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The accompanying notes are an integral part of these financial statements.
F-4
MEDINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Three Months Ended JULY 31, 2010
(Unaudited)
NOTE 1 - BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Medina International Holdings, Inc. ("the Company") was incorporated in 1998 as
Colorado Community Broadcasting, Inc. and the Company changed the name of the
business in 2005 to Medina International Holdings, Inc.
The Company, under its two wholly owned subsidiaries, Harbor Guard Boats, Inc.
and Medina Marine, Inc., plans to manufacture and sell recreational and
commercial boats. The Company formed Medina Marine, Inc., as a wholly owned
subsidiary of the Company. Medina Marine was incorporated in the State of
California on May 22, 2006 to manufacture and sell fire rescue, rescue and
recreational boats.
The Company signed an agreement to acquire Modena Sports Design, LLC, as a
wholly owned subsidiary of the Company on June 18, 2008. Modena Sports Design,
LLC was formed in the State of California in 2003 to produce fire rescue, rescue
and recreational boats. Modena Sports Design, LLC reorganized as a California
corporation on January 7, 2009 and changed its name to Harbor Guard Boats, Inc.
Presentation of Interim Information
In the opinion of the management of the Company, the accompanying unaudited
financial statements include all normal adjustments considered necessary to
present fairly the financial position and operating results of the Company for
the periods presented. The financial statements and notes are presented as
permitted by Form 10-Q, and do not contain certain information included in the
Company's Annual Report on Form 10-KSB for the fiscal year ended April 30, 2010.
It is management's opinion that when the interim financial statements are read
in conjunction with the April 30, 2010. Annual Report on Form 10-KSB, the
disclosures are adequate to make the information presented not misleading.
Interim results are not necessarily indicative of results for a full year or any
future period. The accompanying consolidated financial statements of Medina
International Holdings, Inc. and its subsidiaries were prepared in accordance
with generally accepted accounting principles in the United States of America
("GAAP") and include the assets, liabilities, revenues, and expenses of our two
wholly owned subsidiaries, Medina Marine, Inc. and Harbor Guard Boats, Inc. All
intercompany balances and transactions have been eliminated in consolidation.
Going Concern
Recoverability of a major portion of the recorded asset amounts shown in the
accompanying balance sheet is dependent upon continued operations of the
Company, which in turn is dependent upon the Company's ability to raise
additional capital, obtain financing and to succeed in its future operations.
The financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts or amounts and
classification of liabilities that might be necessary should the Company be
unable to continue as a going concern.
F-5
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles in the United States, which
contemplates continuation of the Company as a going concern. On July 31, 2010,
the Company's current liabilities exceeded its current assets by $2,400,191.
Also, the Company's operations generated 488,260 revenue during the current
period ended and the Company's accumulated deficit is $5,475,863.
Management has taken various steps to revise its operating and financial
requirements, which we believe are sufficient to provide the Company with the
ability to continue on in the subsequent year. Management devoted considerable
effort during the period ended July 31, 2010 towards management of liabilities
and improving our operations. Management believes that the above actions will
allow the Company to continue its operations through the next fiscal year.
The future success of the Company is likely dependent on its ability to attain
additional capital to develop its proposed products and ultimately, upon its
ability to attain future profitable operations. There can be no assurance that
the Company will be successful in obtaining such financing, or that it will
obtain positive cash flow.
Summary of Accounting Policies:
Basis of Presentation and Consolidation
The accompanying consolidated financial statements of Medina International
Holdings, Inc. and its subsidiaries were prepared in accordance with generally
accepted accounting principles in the United States of America ("GAAP") and
include the assets, liabilities, revenues, and expenses of our two wholly owned
subsidiaries, Medina Marine, Inc. and Harbor Guard Boats, Inc. All intercompany
balances and transactions have been eliminated in consolidation.
..
Use of Estimates
The preparation of our consolidated financial statements in conformity with GAAP
requires the use of estimates and assumptions that affect the reported amounts
of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the consolidated financial statements, and the reported amounts
of revenues and expenses during the reporting periods. Significant estimates and
assumptions are used for, but are not limited to;
1) Revenue recognition;
2) Allowance for doubtful accounts;
3) Inventory costs;
4) Asset impairments;
5) Depreciable lives of assets;
6) Income tax reserves and valuation allowances;
7) Fair value of stock options;
8) Allocation of direct and indirect cost of sales;
9) Contingent liabilities; and
10) Warranty liabilities.
F-6
Future events and their effects cannot be predicted with certainty; accordingly,
our accounting estimates require exercise of judgment. We base our estimates on
historical experience, available market information, appropriate valuation
methodologies, and on various other assumptions that we believe to be
reasonable. We evaluate and update our assumptions and estimates on an ongoing
basis and may employ outside experts to assist in our evaluation, when
necessary. Actual results could differ materially from these estimates.
Revenue Recognition
Revenue Recognition is recognized when earned. The Company's revenue recognition
policies are in compliance with Staff Accounting Bulletin (SAB) 104. Sales
revenue is recognized at the date of shipment to customers when a formal
arrangement exists, the price is fixed or determinable, the delivery is
completed, no other significant obligations of the Company exist and
collectability is reasonably assured. Payments received before all of the
relevant criteria for revenue recognition are satisfied, are recorded as
unearned revenue.
Cash and Cash Equivalents
The Company considers all liquid investments with a maturity of three months or
less from the date of purchase that are readily convertible into cash to be cash
equivalents. The Company maintains its cash in bank deposit accounts that may
exceed federally insured limits. The Company has not experienced any losses in
such accounts.
Accounts receivable
The Company reviews accounts receivable periodically for collectability and
establishes an allowance for doubtful accounts and records bad debt expense when
deemed necessary. At July 31, 2010 and April 30, 2010, the Company had no
balance in its allowance for doubtful accounts.
Inventory
We carry our inventories at the lower of their cost or market value. Cost is
determined using first-in, first-out ("FIFO") method. Market is determined based
on net realizable value. We also provide due consideration to obsolescence,
excess quantities, and other factors in evaluating net realizable value.
Fixed Assets
Capital assets are stated at cost. Equipment consisting of molds is stated at
cost. Depreciation of fixed assets is provided using the straight-line method
over the estimated useful lives (3-7 years) of the assets. Expenditures for
maintenance and repairs are charged to expense as incurred.
Long Lived Assets
The Company adopted codification ASC 350 "Accounting for the Impairment or
Disposal of Long-Lived Assets", The Company periodically evaluates the carrying
value of long-lived assets to be held and used in accordance with ASC 350. ASC
350 requires impairment losses to be recorded on long-lived assets used in
operations when indicators of impairment are present and the undiscounted cash
flows estimated to be generated by those assets are less than the assets'
carrying amounts. In that event, a loss is recognized based on the amount by
which the carrying amount exceeds the fair market value of the long-lived
assets. Loss on long-lived assets to be disposed of is determined in a similar
manner, except that fair market values are reduced.
F-7
Comprehensive Loss
Accounting principles generally require that recognized revenue, expenses, gains
and losses be included in net income. Certain statements, however, require
entities to report specific changes in assets and liabilities, such as
unrealized gains and losses on available-for-sale securities, as a separate
component of the equity section of the balance sheet. Such items, along with net
income, are components of comprehensive income.
Issuance of Shares for Service
The Company accounts for employee and non-employee stock awards, whereby equity
instruments issued to employees for services are recorded based on the fair
value of the instrument issued and those issued to non-employees are recorded
based on the fair value of the consideration received or the fair value of the
equity instrument, whichever is more reliably measurable.
Fair Value Of Financial Instruments
Disclosures about fair value of financial instruments, requires that the Company
disclose estimated fair values of financial instruments. The carrying amounts
reported in the statements of financial position for current assets and current
liabilities qualifying, as financial instruments are a reasonable estimate of
fair value.
Foreign Currency Translation And Hedging
The Company is exposed to foreign currency fluctuations due to international
trade. The management does not intend to enter into forward exchange contracts
or any derivative financial investments for trading purposes. The management
does not currently hedge foreign currency exposure.
Basic And Diluted Net Loss Per Share
Basic net loss per share is based upon the weighted average number of common
shares outstanding. Diluted net loss per share is based on the assumption that
all dilutive convertible shares and stock options were converted or exercised.
Dilution is computed by applying the treasury stock method. Under this method,
options and warrants are assumed to be exercised at the beginning of the period
(or at the time of issuance, if later), and as if funds obtained thereby were
used to purchase common stock at the average market price during the period.
Products and services, geographic areas and major customers
The Company earns revenue from the sale of recreational and commercial boats.
The Company's products were sold domestically and internationally. The Company
does not separate sales activities into different operating segments.
Recently issued accounting pronouncements
There were accounting standards and interpretations issued during the three
months ended July 31, 2010, none of which are expected to have a material impact
on the Company's financial position, operations or cash flows.
F-8
NOTE 2. INVENTORY
As of July 31, 2010, inventory consisted of the following:
Inventory Cost
--------- ----
Parts $31,698
Work-in-Progress 77,907
Finished Goods 26,476
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Total Inventory $ 136,081
==================
NOTE 3. FIXED ASSETS
As of July 31, 2010, fixed assets consisted of the following:
Property and Equipment Cost
- ---------------------- ----
Machinery and equipment; including molds & tools $1,045,740
Computers 13,535
Furniture & fixture 2,080
Office equipments 3,200
Fire Extinguisher 500
Total Property and Equipment 1,065,055
Less accumulated depreciation (400,469)
------------
Fixed Assets, Net $664,586
============
NOTE 4. SHORT-TERM DEBT
Quarter ended
Financial Institutions July 31, 2010
- ---------------------- -------------
Citi bank $ 95,932
Credit Cards 111,673
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Total Short Term debt $ 206,605
=============
At July 31, 2010 the Company has a credit card totaling $100,000, under which
the Company may borrow on an unsecured basis since the year 2008 at an interest
rate of 8.75.% with monthly payments due. The outstanding balance for this
credit card was $95,932.
F-9
The Company's remaining credit cards carry various interest rates and require
monthly payments, and are substantially held in the name of or guaranteed by
related parties.
NOTE 5. RELATED PARTY TRANSACTIONS
As of July 31, 2010 the Company owed $863,339 to a related party shareholder
incurred as part of the purchase transaction of Modena Sports Design, LLC.
NOTE 6. CUSTOMER DEPOSIT
Deposit from customers at the end of quarter ended July 31, 2010 consists of the
following:
Deposit for commercial boats $222,800
Deposit for recreational boats 20,500
------
Total $243,300
=========
NOTE 7. NOTE PAYABLE
Quarter ended
Items July 31, 2010
===== =============
Notes payable - related party $ 65,000
Notes payable - others 10,000
-------------------
Total $ 75,000
===================
At July 31, 2010, the Company had an unsecured note payable with an unrelated
party in the amount of $10,000, which bears at 8% interest, and is currently
due.
At July 31, 2010, the Company had an unsecured note payable with an unrelated
party in the amount of $15,000, which bears 8% interest and the payment is
currently due.
At July 31, 2010, the Company had an unsecured note payable to Mr. Srikrishna
Mankal, son of Madhava Rao Mankal, CFO of the Company, in the amount of $50,000,
which bears an 8% interest repayable. Interest accrued to date $8,000.
NOTE 8. SHAREHOLDERS' LOANS
At July 31, 2010, Shareholders' loans consisted of the following:
Daniel Medina, President & Director $165,314
Madhava Rao Mankal, Chief Financial Officer & Director 253,454
-------
Total $418,768
========
Shareholder's loan from shareholder of the Company, unsecured, 10% interest per
annum, due on demand.
F-10
NOTE 9. STOCKHOLDERS' EQUITY
During the three months ended, the Company did not issue any shares of its
common stock.
NOTE 10. COMMITMENTS
Rental Leases
The Company signed a 3 year lease for 11,900 square feet building in the city of
Corona, in the state of California, effective April , 2010. The address for this
location is 1802 Pomona Rd, Corona, CA 92880. This building is owned by
unrelated parties. The lease expires on March 31, 2013, and calls for monthly
payments initially of $2,600 per month plus costs, escalating over the term of
the lease to $6,000 per month plus costs.
The Company has various license agreements with a related party allowing its
technology to be utilized in the manufacture of its boats. The license
agreements typical provide for small periodic renewal payments, along with
royalty payments based on a percentage (generally 1.5% - 2%) of related gross
sales.
NOTE 11 - SUBSEQUENT EVENTS
The Company evaluated events through August 11, 2010 for subsequent events to be
included in its July 31, 2010 financial statements herein.
F-11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following discussion should be read in conjunction with our unaudited
financial statements and notes thereto included herein. In connection with, and
because we desire to take advantage of, the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, we caution readers regarding
certain forward looking statements in the following discussion and elsewhere in
this report and in any other statement made by, or on our behalf, whether or not
in future filings with the Securities and Exchange Commission. Forward-looking
statements are statements not based on historical information and which relate
to future operations, strategies, financial results or other developments.
Forward looking statements are necessarily based upon estimates and assumptions
that are inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond our control and many
of which, with respect to future business decisions, are subject to change.
These uncertainties and contingencies can affect actual results and could cause
actual results to differ materially from those expressed in any forward looking
statements made by, or on our behalf. We disclaim any obligation to update
forward-looking statements.
The Company engages nine full time employees. Our President and Chief Financial
Officer have been engaged on full time to work with Harbor Guard Boats, Inc.
Our securities are currently not liquid.
RESULTS OF OPERATION
Results Of Operations For The Three-Month Period Ended July 31, 2010 Compared To
The Same Period Ended July 31, 2009
The Company recognized $488,260 in revenues during the three months ended July
31, 2010 compared to $870 in 2009 resulting in increase of sales during this
quarter of $487,390. We sold three boats during the quarter ended July 31, 2010
compared to none during the quarter ended July 31, 2009.
During the three months ended July 31, 2010 general and administrative expenses
decreased by $18,458 or 15.27% to $102,366 for the quarter ended July 31, 2010
compared to $120,824 for the quarter ended July 31, 2009. Selling and marketing
expenses increased by $52,844 to $53,131 for the quarter ended July 31, 2010
compared to $287 for the quarter ended July 31, 2009. Increase is mainly due to
$34,938 in sales commission, $8,029 in freight and $7,135 in trade show expenses
for the quarter ended July 31, 2010.
During the three months ended July 31, 2010 interest expense decreased by
$16,047 or 61.58% to $10,008 for the period ended July 31, 2010 compared to
$26,055 for the period ended July 31, 2009.
1
During the three months ended July 31, 2010, the Company recognized a net loss
of $32,509 compared to a net loss of $211,052 for the quarter ended July 31,
2009. The decrease of $178,543 or 84.60% was mostly due to the gross profit on
sale of boats.
LIQUIDITY AND CAPITAL RESOURCES
At July 31, 2010, we had $10,631 in cash, $1,065,055 in gross fixed assets. The
Company will need to raise capital through loans or private placements in order
to carry out any operational plans.
During the three months ended July 31, 2010, the Company used $63,389 from its
operating activities. The Company used $33,203 through financing activities
during the three months ended July 31, 2010. At July 31, 2010, the Company had a
working capital deficit of $2,400,191.
During the three months ended July 31, 2009, the Company used $72,707 from its
operating activities. The Company had $1,883 in cash at July 31, 2009. The
Company provided $38,014 through financing activities during the three months
ended July 31, 2010.
During the three months ended July 31, 2010, the Company made a payment of
$29,000 on promissory notes and $7,602 owed to related party of the Company.
ITEM 3. QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not Applicable
ITEM 4. CONTROLS AND PROCEDURES
Disclosures Controls and Procedures
We have adopted and maintain disclosure controls and procedures (as such term is
defined in Rules 13a 15(e) and 15d-15(e) under the Securities Exchange Act of
1934, as amended (the "Exchange Act")) that are designed to ensure that
information required to be disclosed in our reports under the Exchange Act, is
recorded, processed, summarized and reported within the time periods required
under the SEC's rules and forms and that the information is gathered and
communicated to our management, including our Chief Executive Officer (Principal
Executive Officer) and Chief Financial Officer (Principal Financial Officer), as
appropriate, to allow for timely decisions regarding required disclosure.
As required by SEC Rule 15d-15(b), our Chief Executive Officer carried out an
evaluation under the supervision and with the participation of our management,
of the effectiveness of the design and operation of our disclosure controls and
procedures pursuant to Exchange Act Rule 15d-14 as of the end of the period
covered by this report. Based on the foregoing evaluation, our Chief Executive
Officer has concluded that our disclosure controls and procedures are effective
in timely alerting them to material information required to be included in our
periodic SEC filings and to ensure that information required to be disclosed in
our periodic SEC filings is accumulated and communicated to our management,
including our Chief Executive Officer, to allow timely decisions regarding
required disclosure as a result of the deficiency in our internal control over
financial reporting discussed below.
2
ITEM 4T. CONTROLS AND PROCEDURES
Management's Quarterly Report on Internal Control over Financial Reporting.
Our management is responsible for establishing and maintaining adequate internal
control over financial reporting for the company in accordance with as defined
in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our management
conducted an evaluation of the effectiveness of our internal control over
financial reporting based on the framework in Internal Control - Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Our internal control over financial reporting is designed to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. Our internal control over financial
reporting includes those policies and procedures that:
(i) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and
dispositions of our assets;
(ii) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and
that our receipts and expenditures are being made only in
accordance with authorizations of our management and
directors; and
(iii) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of
our assets that could have a material effect on our financial
statements.
Management's assessment of the effectiveness of the small business issuer's
internal control over financial reporting is as of the quarter ended July 31,
2010. We believe that internal control over financial reporting is not
effective. We have not identified any, current material weaknesses considering
the nature and extent of our current operations and any risks or errors in
financial reporting under current operations.
Because of its inherent limitations, internal control over financial reporting
may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
This quarterly report does not include an attestation report of the Company's
registered public accounting firm regarding internal control over financial
reporting. Management's report was not subject to attestation by the Company's
registered public accounting firm..
There was no change in our internal control over financial reporting that
occurred during the fiscal quarter ended July 31, 2010, that has materially
affected, or is reasonably likely to materially affect, our internal control
over financial reporting.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS -
NONE
ITEM 2. CHANGES IN SECURITIES -
NONE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES -
NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS -
NONE
ITEM 5. OTHER INFORMATION -
NONE.
ITEM 6. EXHIBITS -
Exhibits. The following is a complete list of exhibits filed as part of this
Form 10-Q. Exhibit numbers correspond to the numbers in the Exhibit Table of
Item 601 of Regulation S-K.
Exhibit 31.1 Certification of Chief Executive Officer pursuant to Section
302 of the Sarbanes-Oxley Act
Exhibit 31.2 Certification of Chief Financial Officer pursuant to Section
302 of the Sarbanes-Oxley Act
Exhibit 32.1 Certification of Principal Executive Officer pursuant to
Section 906 of the Sarbanes-Oxley Act
Exhibit 32.2 Certification of Principal Financial Officer pursuant to
Section 906 of the Sarbanes-Oxley Act
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SIGNATURES
Pursuant to the requirements of Section 12 of the Securities and Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
MEDINA INTERNATIONAL HOLDINGS, INC.
(Registrant)
Dated: October 15, 2010 By: /s/ Daniel Medina
--------------------------
Daniel Medina,
President
Dated: October 15, 2010 By: /s/ Madhava Rao Mankal
--------------------------
Madhava Rao Mankal,
Chief Financial Officer
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