SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended: July 31, 2007
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ________________ to __________________
Commission File Number 000-52638
PHOTOMATICA, INC.
______________________________________________________
(Exact name of registrant as specified in its charter)
Nevada 20-4412118
________________________ ____________________________________
(State of Incorporation) (I.R.S. Employer Identification No.)
112 North Currie Street
Carson City, Nevada, 89703-4934
___________________________________________________
(Address of Principal Executive Offices) (Zip Code)
(775) 321-8220
____________________________________________________
(Registrant's telephone number, including area code)
Check whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15 (d) of the Securities Exchange Act 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 [ ]
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: As of July 31, 2007, the registrant
had 10,300,000 shares of common stock, $0.001 par value, issued and outstanding.
Transitional Small Business Disclosure Format (Check one). Yes [ ] No [X]
Index
Page
Number
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements - Unaudited ................................... 3
Balance Sheets as of July 31, 2007 and April 30, 2007....................... 4
Statements of Operations for three months ended July 31, 2007; three months
period ended July 31, 2006 and cumulative from inception (February 22, 2006)
to July 31, 2007............................................................ 5
Statements of Cash Flows for three months ended July 31, 2007; three months
ended and cumulative results from inception (February 22, 2006)
to July 31, 2007............................................................ 6
Notes to Interim Financial Statements to July 31, 2007...................... 7
Item 2. Management's Discussion and Analysis
or Plan of Operation........................................................ 7
Item 3. Controls and Procedures ............................................ 9
PART II - OTHER INFORMATION
Item 1. Legal Proceedings................................................... 9
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds ........10
Item 3. Defaults Upon Senior Securities ....................................10
Item 4. Submission of Matters to a Vote of Security Holders ................10
Item 5. Other Information ..................................................10
Item 6. Exhibits ...........................................................10
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PHOTOMATICA, INC.
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
JULY 31, 2007
(UNAUDITED)
BALANCE SHEETS
STATEMENTS OF OPERATIONS
STATEMENTS OF CASH FLOWS
NOTES TO FINANCIAL STATEMENTS
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PHOTOMATICA, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
July 31, 2007 April 30, 2007
(Unaudited)
==============================================================================================================
ASSETS
CURRENT ASSETS
Cash $ 657 $ 3,345
Prepaid expense - -
______________________________________________________________________________________________________________
657 3,345
==============================================================================================================
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Due to related party $ - $ -
Accounts payable and accrued liabilities 13,578 12,610
______________________________________________________________________________________________________________
13,578 12,610
==============================================================================================================
STOCKHOLDERS' EQUITY (DEFICIT)
Capital stock
Authorized
75,000,000 shares of common stock, $0.001 par value,
Issued and outstanding
10,200,000 shares of common stock (April 30, 2006 - 7,000,000) 10,200 10,200
Additional paid-in capital 12,800 12,800
Share subscriptions receivable - -
Deficit accumulated during the development stage (35,921) (32,265)
______________________________________________________________________________________________________________
Total Shareholders' deficit (12,921) (9,265)
______________________________________________________________________________________________________________
Total Liabilities and Shareholders' equity $ 657 $ 3,345
==============================================================================================================
The accompanying notes are an integral part of these financial statements.
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PHOTOMATICA, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
(UNAUDITED)
Cumulative from
inception February
Three months Three months 22, 2006
ended Ended (inception) to
July 31, 2007 July 31, 2006 July 31, 2007
===============================================================================================
EXPENSES
Office and general $ 668 $ - $ 6,636
Professional fees 2,988 - 29,285
_______________________________________________________________________________________________
NET LOSS $ (3,656) $ - $ (35,921)
===============================================================================================
BASIC AND DILUTED LOSS PER SHARE $ 0.00 $ 0.00
=========================================================================
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING - BASIC AND DILUTED 10,200,00 7,575,000
=========================================================================
The accompanying notes are an integral part of these financial statements.
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PHOTOMATICA, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
Cumulative
results from
Three months Three months February 22, 2006
ended Ended (inception) to
July 31, 2007 July 31, 2006 July 31, 2007
===========================================================================================================
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (3,656) $ - $ (35,921)
Changes in operating assets and liabilities
Amounts due to related party - -
Pre-paid Expenses - - -
Accounts payable and accrued liabilities 968 - 13,578
___________________________________________________________________________________________________________
NET CASH USED IN OPERATING ACTIVITIES (2,688) - (22,343)
___________________________________________________________________________________________________________
CASH FLOWS FROM FINANCING ACTIVITIES
Share Subscription Receivable - 5,500 -
Proceeds from issuance of common stock - 9,000 23,000
___________________________________________________________________________________________________________
NET CASH PROVIDED BY FINANCING ACTIVITIES - 14,500 -
___________________________________________________________________________________________________________
NET INCREASE IN CASH (2,688) 14,500 657
CASH, BEGINNING 3,345 - -
___________________________________________________________________________________________________________
CASH, ENDING $ 657 $ 14,500 $ 657
===========================================================================================================
Supplemental cash flow information:
Cash paid for:
Interest $ - $ - $ -
===========================================================================================================
Income taxes $ - $ - $ -
===========================================================================================================
The accompanying notes are an integral part of these financial statements.
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PHOTOMATICA, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
JULY 31, 2007 (UNAUDITED)
================================================================================
NOTE 1 - BASIS OF PRESENTATION
________________________________________________________________________________
UNAUDITED INTERIM FINANCIAL STATEMENTS
The accompanying unaudited interim financial statements have been prepared in
accordance with generally accepted accounting principles in the United States
for interim financial information and with the instructions to Form 10-QSB of
Regulation S-B. They do not include all information and footnotes required by
generally accepted accounting principles for complete financial statements.
However, except as disclosed herein, there have been no material changes in the
information disclosed in the notes to the financial statements for the year
ended April 30, 2007 included in the Company's Form 10K-SB filed with the
Securities and Exchange Commission. The interim unaudited financial statements
should be read in conjunction with those financial statements included in the
Form 10K-SB In the opinion of management, all adjustments considered necessary
for a fair presentation, consisting solely of normal recurring adjustments, have
been made. Operating results for the three months ended July 31, 2007 are not
necessarily indicative of the results that may be expected for the year ending
April 30, 2008.
ITEM 2: MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Overview
Photomatica, Inc. ("Photomatica," "the company," or "we,") is a development
stage company incorporated on February 22, 2006 to enter into the stock
photographic image sales industry with proprietary online digital image
transaction software. The company has established a website branded
"Photomatica" (www.photomatica.com) where digital image transaction software
will be available for use by photographers and potential customers. The company
intends to provide low cost, original photographic content to both low end and
high end users of stock photographic images, such as newsletter and magazine
publishers and website designers.
The Company did not generate any revenue during the quarter ended July 31, 2007.
Plan of Operation
We anticipate that our current cash and cash equivalents and cash generated from
operations, if any, will insufficient to satisfy our liquidity requirements for
at least the next 12 months. We will require additional funds prior to such time
and the Company will seek to sell additional capital through private equity
placements, debt securities or seek alternative sources of financing. If the we
are unable to obtain this additional financing, we may be required to reduce the
scope of our business plan, which could harm our business, financial condition
and operating results. In addition, we may also require additional funds to
accomplish a more rapid expansion, to develop new or enhanced services or
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products or to invest in complementary businesses, technologies, services or
products. Additional funding to meet our requirements may not be available on
favourable terms, if at all.
During the next twelve months we plan to continue to define our business plan,
develop our website store and acquire and make available a portfolio of images
for distribution. We will also determine what staffing and technology resources
we will require to maintain and grow our business.
The Company is focused on developing our business model and marketing strategy.
We now plan to begin preparing plans for identifying and soliciting
photographers that may be interested in posting their images with Photomatica,
refining our marketing strategy and determining when to implement that strategy.
Our plan is to start the staged procurement of online image processing and
e-commerce transaction software within the next twelve months and enhance our
services as feasible. During the first stage of software procurement, we expect
to contract with programmer's to develop free shareware applications that will
enable our photographers to catalogue their own work and upload it to their own
websites. Concurrently with this activity we will be sourcing and procuring an
image upload and cataloguing system. We expect that we will spend approximately
$8,000 on this activity.
When the upload and cataloguing systems are functional we plan to begin
marketing our service to professional photographers and invite them to join the
new system. We will also encourage amateur photographers to join the system and
add their cataloged images to the network as well. In order to market our
services to both the professional and amateur photographer community we plan to
place advertisements in photo magazines and attend various photographic trade
shows to make direct contact with potential customers. We also intend to
undertake direct marketing efforts aimed toward the users of digital images. We
plan to advertise in magazines, journals and business publications and other
media that cater to the public relations and advertising industries. We
anticipate that the total cost of marketing and advertising will be $35,000.
As the number of users expands we will continue to enhance the Client,
Transaction and Administration modules of our program and add other
functionality as we are able to do so. We expect that we will have the complete
system operable within 12 months.
We do not expect to purchase or sell plant or significant equipment in the next
twelve months.
Management does expect significant changes in the number of employees. Our sole
officer and director will be responsible for the initial product sourcing and we
will hire an independent consultant to build our website site. We also intend to
hire sales representatives initially on a commission only basis so as to keep
administrative overhead to a minimum.
Off Balance Sheet Arrangements.
The term "off-balance sheet arrangement" generally means any transaction,
agreement or other contractual arrangement to which an entity unconsolidated
with the Company is a party, under which the Company has (i) any obligation
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arising under a guarantee contract, derivative instrument or variable interest;
or (ii) a retained or contingent interest in assets transferred to such entity
or similar arrangement that serves as credit, liquidity or market risk support
for such assets.
As of the date of this Quarterly Report, the current funds available to the
Company will not be sufficient to continue operations. The cost to establish the
Company and begin operations is estimated to be approximately $38,000 over the
next twelve months and the cost of maintaining our reporting status is estimated
to be $12,000 over this same period. The officer and director, Mr. Kardos has
undertaken to provide the Company with initial operating capital to sustain our
business over the next twelve month period as the expenses are incurred in the
form of a non-secured loan. However, there is no contract in place or written
agreement securing this agreement. Management believes that if the Company
cannot raise sufficient revenues or maintain its reporting status with the SEC
it will have to cease all efforts directed towards the Company. As such, any
investment previously made would be lost in its entirety.
Other than the above described situation the Company does not have any
off-balance sheet arrangements that have or are reasonably likely to have a
current or future effect on the Company's financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that are material to investors.
ITEM 3. CONTROLS AND PROCEDURES
Based on their most recent evaluation, which was completed within 90 days of the
filing of this Form 10-QSB, the Company's Chief Executive Officer and Principal
Financial Officer believe the Company's disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) are effective to ensure that
information required to be disclosed by the Company in this report is
accumulated and communicated to the Company's management, including its
principal executive officer and principal financial officer, as appropriate, to
allow timely decisions regarding required disclosure. There were no significant
changes in the Company's internal controls or other factors that could
significantly affect these controls subsequent to the date of their evaluation
and there were no corrective actions with regard to significant deficiencies and
material weaknesses.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is not a party to any pending legal proceedings, and no such
proceedings are known to be contemplated.
No director, officer, or affiliate of the Company and no owner of record or
beneficial owner of more than 5.0% of the securities of the Company, or any
associate of any such director, officer or security holder is a party adverse to
the Company or has a material interest adverse to the Company in reference to
pending litigation.
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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
None.
ITEM 6. EXHIBITS
31.1 Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Executive Officer
31.2 Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Financial Officer *
32.1 Section 1350 Certification of Chief Executive Officer
32.2 Section 1350 Certification of Chief Financial Officer **
* Included in Exhibit 31.1
** Included in Exhibit 32.1
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SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
PHOTOMATICA, INC.
By: /s/ ALAIN KARDOS
____________________________________________________________
Alain Kardos
President, Secretary Treasurer, Principal Executive Officer,
Principal Financial Officer and sole Director
Dated: September 11, 2007
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