U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 2013
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from ____________ to ____________
Commission File No. 001-35615
CYNK TECHNOLOGY CORP.
(Exact name of small business issuer as specified in its charter)
Nevada 26-2568892
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
The Matalon, Coney Drive, Suite 400
Belize City, Belize
(Address of Principal Executive Offices)
(800) 972-6017
(Issuer's telephone number)
INTROBUZZ
(Former name, address and fiscal year, if changed since last report)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for
such shorter period that the issuer 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 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 [X] NO [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer,"
"non-accelerated filer," and "smaller reporting company" in Rule 12b-2 of the
Exchange Act.
Large accelerated filer [ ] Accelerated filer [ ]
Non-accelerated filer [ ] Smaller reporting company [X]
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's classes of common
equity, as of November 7, 2013: 291,450,000 shares of common stock.
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act): Yes [ ] No [X]
Transitional Small Business Disclosure Format (Check One) Yes [ ] No [X]
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements 3
Item 2. Management's Discussion and Analysis of Financial Condition 15
Item 4. Control and Procedures 18
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 19
Item 1A. Risk Factors 19
Item 2. Unregistered Sales of Equity Securities and Use of Procedes 19
Item 3. Defaults Upon Senior Securities 19
Item 4. Mine Safety Disclosures 19
Item 5. Other Information 19
Item 6. Exhibits and Reports on Form 8-K 19
SIGNATURE 20
2
ITEM 1. FINANCIAL INFORMATION
FINANCIAL STATEMENTS
CYNK TECHNOLOGY CORP.
FINANCIAL STATEMENTS
Page
----
FINANCIAL STATEMENTS:
Balance Sheets, September 30, 2013 (unaudited) and December 31, 2012
(audited) 4
Statements of Operations (unaudited), for the three and nine month
periods ended September 30, 2013 and 2012 and for the period May 1,
2008 (date of inception) through September 30, 2013 5
Statement of Changes in Stockholders' Equity (Deficit) for the period
May 1, 2008 (date of inception) through September 30, 2013 6
Statements of Cash Flows (unaudited), for the nine month periods ended
September 30, 2013 and for the period May 1, 2008 (date of inception)
through September 30, 2013 7
Notes to Financial Statements (unaudited) 8
3
Cynk Technology Corp.
(A Development Stage Company)
(formerly Introbuzz)
Balance Sheets
September 30, December 31,
2013 2012
------------ ------------
(unaudited) (audited)
ASSETS
Current Assets
Cash and cash equivalents $ -- $ 45,033
------------ ------------
Total Current Assets -- 45,033
Intangible assets, net of accumulated
amortization of $43,000 and $39,467, respectively -- 3,533
------------ ------------
TOTAL ASSETS $ -- $ 48,566
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable $ 6,631 $ 12,133
Accrued expenses 11,424 --
Due to related parties 15,633 --
------------ ------------
Total Current Liabilities 33,688 12,133
------------ ------------
TOTAL LIABILITIES 33,688 12,133
------------ ------------
Stockholders' Deficit
Common stock: 500,000,000 authorized; $0.001 par value
291,450,000 and 531,450,000 shares issued and outstanding 291,450 531,450
Additional paid in capital 1,258,689 (409,311)
Accumulated deficit during development stage (1,583,827) (85,706)
------------ ------------
Total Stockholders' Deficit (33,688) 36,433
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ -- $ 48,566
============ ============
On June 21, 2013, the Company effectuated a 1:75 forward stock split. Shares
have been retroactively restated.
See notes to unaudited financial statements
4
Cynk Technology Corp.
(A Development Stage Company)
(formerly Introbuzz)
Statements of Operations
(unaudited)
For the Three Months Ended For the Nine Ended May 1, 2008
September 30, September 30, (inception) to
----------------------------- ----------------------------- September 30,
2013 2012 2013 2012 2013
------------ ------------ ------------ ------------ ------------
Revenues $ -- $ -- $ -- $ -- $ --
------------ ------------ ------------ ------------ ------------
Operating Expenses
General and administrative 9,523 4,740 26,339 6,066 38,270
Stock based compensation -- -- 1,428,000 -- 1,428,000
Professional 1,500 -- 7,340 3,250 25,840
Research and development 252 -- 32,909 -- 43,194
Depreciation and amortization -- 2,150 3,533 6,450 43,000
------------ ------------ ------------ ------------ ------------
Total operating expenses 11,275 6,890 1,498,121 15,766 1,578,304
------------ ------------ ------------ ------------ ------------
NET LOSS FROM OPERATIONS (11,275) (6,890) (1,498,121) (15,766) (1,578,304)
OTHER INCOME (EXPENSE)
Interest expense -- (353) -- (353) (5,523)
Income taxes -- -- -- -- --
------------ ------------ ------------ ------------ ------------
NET LOSS $ (11,275) $ (7,243) $ (1,498,121) $ (16,119) $ (1,583,827)
============ ============ ============ ============ ============
BASIC AND DILUTIVE LOSS PER SHARE $ (0.00) $ (0.00) $ (0.00) $ (0.00)
============ ============ ============ ============
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 291,450,000 531,450,000 385,172,628 531,450,000
============ ============ ============ ============
On June 21, 2013, the Company effectuated a 1:75 forward stock split. Shares
have been retroactively restated.
See notes to unaudited financial statements
5
Cynk Technology Corp.
(A Development Stage Company)
(formerly Introbuzz)
Statement of Stockholders' Deficit
Additional
Common Stock Paid in Subscription Accumulated
Amount Capital Receivable Deficit Total
------ ------- ---------- ------- -----
BALANCE, DECEMBER 31, 2011 $ 450,000 $ (444,000) $ -- $ (49,522) $ (43,522)
Stock issued for cash 81,450 (27,150) -- 54,300
Forgiveness of debt of shareholder 61,839 -- 61,839
Net loss -- (36,184) (36,184)
--------- ----------- -------- ----------- -----------
BALANCE, DECEMBER 31, 2012 531,450 (409,311) -- (85,706) 36,433
Stock issued for services 210,000 1,218,000 -- 1,428,000
Stock cancellation (450,000) 450,000 -- --
Net loss (unaudited) -- (1,498,121) (1,498,121)
--------- ----------- -------- ----------- -----------
BALANCE, SEPTEMBER 30, 2013 $ 291,450 $ 1,258,689 $ -- $(1,583,827) $ (33,688)
========= =========== ======== =========== ===========
On June 21, 2013, the Company effectuated a 1:75 forward stock split. Shares
have been retroactively restated.
See notes to unaudited financial statements
6
Cynk Technology Corp.
(A Development Stage Company)
(formerly Introbuzz)
Statements of Cash Flows
(unaudited)
May 1, 2008
(inception)
September 30, through
------------------------------- September 30,
2013 2012 2013
------------ ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (1,493,877) $ (16,119) $ (1,579,583)
Adjustment to reconcile Net Income to net
cash provided by operations:
Depreciation and amortization 3,533 6,450 43,000
Stock-based compensation 1,428,000 -- 1,428,000
Changes in operating assets and liabilities:
Accounts payable (5,502) 2,046 6,631
Accrued expenses 7,180 7,723 22,019
Deferred revenue and customer deposits -- -- --
------------ ------------ ------------
Total adjustments 1,433,211 16,219 1,499,650
------------ ------------ ------------
Net Cash (Used in) Provided By Operating Activities (60,666) 100 (79,933)
------------ ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Development of intangible property -- -- (43,000)
------------ ------------ ------------
Net Cash (Used in) Investing Activities -- -- (43,000)
------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Shareholder loans, net 15,633 -- 62,633
Proceeds from issuance of stock -- -- 60,300
------------ ------------ ------------
Net Cash (Used in) Provided by Financing Activities 15,633 -- 122,933
------------ ------------ ------------
Net increase (decrease) in cash and cash equivalents (45,033) 100 --
Cash and cash equivalents, beginning of period 45,033 15 --
------------ ------------ ------------
Cash and cash equivalents, end of period $ -- $ 115 $ --
============ ============ ============
Supplemental cash flow information
Cash paid for interest $ -- $ -- $ --
============ ============ ============
Cash paid for taxes $ -- $ -- $ --
============ ============ ============
Non-cash transactions:
Forgiveness of debt and accrued interest, shareholder $ -- $ -- $ 61,839
============ ============ ============
See notes to unaudited financial statements
7
Cynk Technology Corp.
(A Development Stage Entity)
(formerly Introbuzz)
Notes to the Financial Statements
As of September 30, 2013 (unaudited) and December 31, 2012 (audited)
and for the three and nine month periods ended September 30, 2013 and 2012
(unaudited) and for the period May 1, 2008 (date of inception)
through September 30, 2013 (unaudited)
1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES
NATURE OF OPERATIONS
Cynk Technology Corp., formerly known as Introbuzz ("CYNK" or the "Company") was
incorporated in the State of Nevada on May 1, 2008. CYNK was founded on the
premise that personal networks and contacts are valuable. Social networks are
web based services that allow individuals to post a profile and link their
profile to other friends and organizations. Social networks have largely been a
"personal branding" exercise or for pure entertainment, CYNK is a referral
service for introductions.
DEVELOPMENT STAGE ENTITY
The Company is a development stage company, with no revenues, in accordance with
FASB ASC 915 FINANCIAL REPORTING FOR DEVELOPMENT STAGE ENTITIES. The Company
intends to develop a social network business and is currently seeking funding
through the sale of its common stock to fund the preliminary stages of
developing its website. It is the company's intent to develop a database of
professional and other business persons as well as other interested persons in
providing and utilizing contacts.
Activities during the development stage primarily include related party
equity-based and or equity financing transactions. Our efforts to date have been
concentrated on financing, administrative efforts towards public compliance and
our product's development.
Management's plan in regard to the development of operations, upon adequate
funding, is to hire a web designer(s) to assess, critique and fine-tune our
current network site. Work is also planned for mapping-out the site structure
for anticipated increases in site traffic. Upon design and mapping we anticipate
that additional programmer(s) will be hired on a part-time or contract basis to
support the anticipated site launch. Our overall goal is continued site
improvement for launch on the World Wide Web, anticipated within three months
after securing our minimal funding targets.
UNAUDITED INTERIM FINANCIAL STATEMENTS
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles in the United States of America
for interim financial information and with the instructions to Form 10-Q and
Regulation S-X. Accordingly, the financial statements do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements.
8
In the opinion of management, all adjustments consisting of normal recurring
entries necessary for a fair statement of the periods presented for: (a) the
financial position; (b) the result of operations; and (c) cash flows, have been
made in order to make the financial statements presented not misleading. The
results of operations for such interim periods are not necessarily indicative of
operations for a full year.
BASIS OF PRESENTATION
The Financial Statements and related disclosures have been prepared pursuant to
the rules and regulations of the Securities and Exchange Commission ("SEC"). The
Financial Statements have been prepared using the accrual basis of accounting in
accordance with Generally Accepted Accounting Principles ("GAAP") of the United
States.
USE OF ESTIMATES
The Financial Statements have been prepared in conformity with U.S. GAAP, which
requires using management's best estimates and judgments where appropriate.
These estimates and judgments affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements. The estimates and judgments will also affect the
reported amounts for certain revenues and expenses during the reporting period.
Actual results could differ materially from these good faith estimates and
judgments.
FINANCIAL INSTRUMENTS
The Company's balance sheet includes certain financial instruments. The carrying
amounts of current assets and current liabilities approximate their fair value
because of the relatively short period of time between the origination of these
instruments and their expected realization.
Financial Accounting Standards Board (FASB) Accounting Standards Codification
(ASC) 820 "Fair Value Measurements and Disclosures" (ASC 820) defines fair value
as the exchange price that would be received for an asset or paid to transfer a
liability (an exit price) in the principal or most advantageous market for the
asset or liability in an orderly transaction between market participants on the
measurement date.. ASC 820 also establishes a fair value hierarchy that
distinguishes between (1) market participant assumptions developed based on
market data obtained from independent sources (observable inputs) and (2) an
entity's own assumptions about market participant assumptions developed based on
the best information available in the circumstances (unobservable inputs). The
fair value hierarchy consists of three broad levels, which gives the highest
priority to unadjusted quoted prices in active markets for identical assets or
liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).
The three levels of the fair value hierarchy are described below:
* Level 1 - Unadjusted quoted prices in active markets that are
accessible at the measurement date for identical, unrestricted assets
or liabilities
* Level 2 - Inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly or
indirectly, including quoted prices for similar assets or liabilities
in active markets; quoted prices for identical or similar assets or
liabilities in markets that are not active; inputs other than quoted
prices that are observable for the asset or liability (e.g., interest
rates); and inputs that are derived principally from or corroborated
by observable market data by correlation or other means.
* Level 3 - Inputs that are both significant to the fair value
measurement and unobservable.
9
Fair value estimates discussed herein are based upon certain market assumptions
and pertinent information available to management as of December 31, 2012. The
respective carrying value of certain on-balance-sheet financial instruments
approximated their fair values due to the short-term nature of these
instruments.
The Company applied ASC 820 for all non-financial assets and liabilities
measured at fair value on a non-recurring basis. The adoption of ASC 820 for
non-financial assets and liabilities did not have a significant impact on the
Company's financial statements.
As of September 30, 2013 and December 31, 2012 the fair values of the Company's
financial instruments approximate their historical carrying amount.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents includes all cash deposits and highly liquid financial
instruments with a maturity of three months or less.
ACCOUNTS RECEIVABLE, CREDIT
The Company currently has not generated any revenue from operations. The Company
will be charging for referral fees at the time a referral is placed. Fee for
referral will be based on a negotiation between third parties. There is no
subscription base for belonging to the group. Billings will occur at the point
of referral transmission and collection on customer accounts through credit
cards or direct payments. The Company does not issue credit on services
provided, therefore there will be no accounts receivable. No allowance for
doubtful accounts is considered necessary to be established for amounts that may
not be recoverable, since there has been no credit issued.
SOFTWARE DEVELOPMENT COSTS AND CAPITAL TECHNOLOGY
The Company accounts for software development costs in accordance with several
accounting pronouncements, including FASB ASC 730, Research and Development,
FASB ASC 350-40, Internal-Use Software, FASB 985-20, Costs of Computer Software
to be Sold, Leased, or Marketed and FASB ASC 350-50, Website Development Costs.
The Company has capitalized the cost of the proprietary website technology,
purchased from unrelated third party developers. Additional costs to customize,
modify and betterment to the existing product was charged to expense as it was
incurred
Capitalized software costs are stated at cost. The estimated useful life of
costs capitalized is currently being amortized over five years. Amortization is
computed on a straight line basis. The carrying amount of all long-lived assets
is evaluated periodically to determine if adjustment to the amortization period
or the unamortized balance is warranted. Based upon its most recent analysis,
the Company believes that no impairment of the proprietary software existed at
September 30, 2013 and December 31, 2012. The intangible assets were fully
amortized as of September 30, 2013.
LONG-LIVED ASSETS AND INTANGIBLE PROPERTY
Long-lived assets such as property, equipment and identifiable intangibles are
reviewed for impairment whenever facts and circumstances indicate that the
carrying value may not be recoverable. When required impairment losses on assets
10
to be held and used are recognized based on the fair value of the asset. The
fair value is determined based on estimates of future cash flows, market value
of similar assets, if available, or independent appraisals, if required. If the
carrying amount of the long-lived asset is not recoverable from its undiscounted
cash flows, an impairment loss is recognized for the difference between the
carrying amount and fair value of the asset. When fair values are not available,
the Company estimates fair value using the expected future cash flows discounted
at a rate commensurate with the risk associated with the recovery of the assets.
The Company did not recognize any impairment losses for any periods presented.
SHARE-BASED PAYMENTS
Share-based payments to employees, including grants of employee stock options
are recognized as compensation expense in the financial statements based on
their fair values, in accordance with FASB ASC Topic 718. That expense is
recognized over the period during which an employee is required to provide
services in exchange for the award, known as the requisite service period
(usually the vesting period). The Company had no common stock options or common
stock equivalents granted or outstanding for all periods presented. The company
may issue shares as compensation in the future periods for employee services.
The Company may issue restricted stock to consultants for various services. Cost
for these transactions will be measured at the fair value of the consideration
received or the fair value of the equity instruments issued, whichever is more
reliably measurable. The value of the common stock is to be measured at the
earlier of (i) the date at which a firm commitment for performance by the
counterparty to earn the equity instruments is reached or (ii) the date at which
the counterparty's performance is complete.
REVENUE RECOGNITION
The Company recognizes revenue on arrangements in accordance with FASB ASC No.
605, Revenue Recognition. In all cases, revenue is recognized only when the
price is fixed or determinable, persuasive evidence of an arrangement exists,
the service is performed and collectability is reasonably assured.
The Company has not issued guarantees or other warrantees on the success or
results of references paid. The Company has no history and has not experienced
any refund requests or committed to any adjustments for failed references. The
Company does not believe that there is any required liability.
ADVERTISING
The costs of advertising are expensed as incurred. Advertising expense was $0
for the nine month periods ended September 30, 2013 and 2012 and for the period
May 1, 2008 (date of inception) through September 30, 2013. Advertising
expenses, when incurred are to be included in the Company's operating expenses.
RESEARCH AND DEVELOPMENT
The Company expenses research and development costs when incurred. Research and
development costs include engineering and testing of product and outputs.
Indirect costs related to research and developments are allocated based on
percentage usage to the research and development. Research and development costs
were $252, $0, $32,909 and $43,194 for the three and nine month periods ending
11
September 30, 2013 and 2012 and for the period from May 1, 2008 (date of
inception) through September 30, 2013, respectively.
INCOME TAXES
The Company accounts for income taxes under the Financial Accounting Standards
Board ("FASB") Accounting Standards Codification ("ASC") No. 740, Income Taxes
("ASC 740"). Under ASC 740, deferred tax assets and liabilities are recognized
for the future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and liabilities and
their respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or settled. Under
ASC 740, the effect on deferred tax assets and liabilities of a change in tax
rates is recognized in income in the period that includes the enactment date.
EARNINGS (LOSS) PER SHARE
Basic earnings (loss) per share calculations are determined by dividing net
income (loss) by the weighted average number of shares outstanding during the
year. Diluted earnings (loss) per share calculations are determined by dividing
net income (loss) by the weighted average number of shares. The Company does not
have any potentially dilutive instruments and, thus, anti-dilution issues are
not applicable.
RECENT ACCOUNTING PRONOUNCEMENTS
Except for rules and interpretive releases of the SEC under authority of federal
securities laws and a limited number of grandfathered standards, the FASB
Accounting Standards Codification ("ASC") is the sole source of authoritative
GAAP literature recognized by the FASB and applicable to the Company. Management
has reviewed the aforementioned rules and releases and believes any effect will
not have a material impact on the Company's present or future financial
statements.
2. GOING CONCERN
The Company's financial statements are prepared using accounting principles
generally accepted in the United States of America applicable to a going concern
which contemplates the realization of assets and liquidation of liabilities in
the normal course of business. The Company has not yet emerged from its
development stage, has not established an ongoing source of revenues sufficient
to cover its operating cost, and requires additional capital to commence its
operating plan. The ability of the Company to continue as a going concern is
dependent on the Company obtaining adequate capital to fund operating losses
until it becomes profitable. If the Company is unable to obtain adequate
capital, it could be forced to cease operations. These factors raise substantial
doubt about its ability to continue as a going concern.
In order to continue as a going concern, the Company will need, among other
things, additional capital resources. Management's plan to obtain such resources
for the Company include: sales of equity instruments; traditional financing,
such as loans; and obtaining capital from management and significant
12
stockholders sufficient to meet its minimal operating expenses. However,
management cannot provide any assurance that the Company will be successful in
accomplishing any of its plans.
There is no assurance that the Company will be able to obtain sufficient
additional funds when needed or that such funds, if available, will be
obtainable on terms satisfactory to the Company. In addition, profitability will
ultimately depend upon the level of revenues received from business operations.
However, there is no assurance that the Company will attain profitability. The
accompanying financial statements do not include any adjustments that might be
necessary if the Company is unable to continue as a going concern.
3. INTANGIBLE ASSETS
INTANGIBLE ASSETS
The Company has capitalized the cost of acquiring their technology for internal
and external use. The purchase price was valued at the agreed upon price with
the unrelated party. Acquired software costs consist of the following, as:
September 30, December 31,
2013 2012
-------- --------
Website $ 43,000 $ 43,000
Accumulated Amortization (43,000) (39,467)
-------- --------
$ 0 $ 3,533
======== ========
Future amortization:
2013 $ --
--------
$ --
========
Amortization expense was $0, $2,150, $3,533, $6,450 and $43,000 for the three
and nine month periods ended September 30, 2013 and 2012 and for the period May
1, 2008 (date of inception) through September 30, 2013, respectively.
4. INCOME TAXES
The Company utilizes the liability method of accounting for income taxes. Under
the liability method deferred tax assets and liabilities are determined based on
the differences between financial reporting basis and the tax basis of the
assets and liabilities and are measured using enacted tax rates and laws that
will be in effect, when the differences are expected to reverse. An allowance
against deferred tax assets is recognized, when it is more likely than not, that
such tax benefits will not be realized.
The Company has not recognized an income tax benefit for its operating losses
generated from operations, based on uncertainties concerning its ability to
generate taxable income in future periods. The tax benefit for the periods
presented is offset by a valuation allowance established against deferred tax
assets arising from operating losses and other temporary differences, the
realization of which could not be considered more likely than not. In future
periods, tax benefits and related deferred tax assets will be recognized when
management considers realization of such amounts to be more likely than not.
13
The Company is currently open to audit under the statute of limitations by the
Internal Revenue Service for the short year ending December 31, 2008 (year of
inception) through 2012.
The Company recognizes interest and penalties related to income taxes in income
tax expense. The Company had incurred no penalties and interest for the nine
month periods ended September 30, 2012 and 2011 and for the period May 1, 2008
(date of inception) through September 30, 2013.
5. RELATED PARTY TRANSACTIONS
LOANS AND ADVANCES FROM SHAREHOLDER
In support of the Company's efforts and cash requirements, it is relying on
advances from related parties until such time that the Company can support its
operations or attains adequate financing through sales of its equity or
traditional debt financing. Amounts represent advances or amounts paid in
satisfaction of certain liabilities as they come due. The advances are
considered temporary in nature and may not be formalized by a promissory note.
Any loans and advances are considered payable on demand and accrue interest at a
legally nominal rate. The Company owed $15,633 and $0 to its sole shareholder as
of September 30, 2013 and December 31, 2012.
The majority shareholder has pledged his support to fund continuing operations;
however there is no written commitment to this effect. The Company is dependent
upon the continued support of this member.
The Company utilizes space provided by the majority shareholder without charge.
Rent was $0 for all periods presented.
The Company does not have an employment contract with its key employee, the sole
shareholder who is the Chief Executive and Chief Technical Officer.
The amounts and terms of the above transactions may not necessarily be
indicative of the amounts and terms that would have been incurred had comparable
transactions been entered into with independent third parties.
6. EQUITY
The total number of shares of capital stock which the Company shall have
authority to issue is five hundred million (500,000,000) common shares (as
amended on May 6, 2013, previously 10 million) with a par value of $.001. Common
shareholders will have one vote for each share held.
No holder of shares of stock of any class is entitled as a matter of right to
subscribe for or purchase or receive any part of any new or additional issue of
shares of stock of any class, or of securities convertible into shares of stock
of any class, whether now hereafter authorized or whether issued for money, for
consideration other than money, or by way of dividend.
14
There are no preferred shares authorized or outstanding. There have been no
warrants or options issued or outstanding.
On June 21, 2013, Introbuzz filed with the Nevada Secretary of State a
Certificate of Amendment to its Articles of Incorporation to amend the name of
the Company listed therein from "Introbuzz" to "Cynk Technology Corp". The
Certificate also effectuated a 75-for-1 forward split of the Company's common
stock, par value $0.001 per share. The Financial Industry Regulatory Authority
("FINRA") announced and deemed the Company's 1-for-75 forward split to be
effective on July 15, 2013 and the name change to "Cynk Technology Corp."
effective as of July 23, 2013. Shares have been retroactively restated for all
prior periods presented.
EQUITY ISSUANCE:
On May 1, 2008 (date of inception), 450 million (6 million pre-split) shares of
common stock were issued to the founder in exchange for $6,000. On April 17,
2013, these shares were cancelled upon resignation of duties.
The Company engaged in the registration of its equity, for the purpose of
raising cash through the issuance of common shares. The Company through its
proposed equity raise issued 81,450,000 (1,086,000 at the time of raise, pre
1:75 forward split) common shares on September 6, 2012 for cash proceeds of
$54,300 or $.000667 ($.05 pre-split) per share.
On April 17, 2013, the company, as approved by its Board of Directors, presented
210 million (2.8 million pre-split) shares to the newly appointed sole officer
of the corporation for acceptance of position and responsibilities. These shares
were valued at the fair market trading value of the stock on an independent
exchange ($.0068 per share or $1,428,000) and expensed in the period of the
grant.
7. CONTINGENCIES
Some of the officers and directors of the Company are involved in other business
activities and may, in the future, become involved in other business
opportunities that become available. They may face a conflict in selecting
between the Company and other business interests. The Company has not formulated
a policy for the resolution of such conflicts.
From time to time the Company may become a party to litigation matters involving
claims against the Company. Management believes that there are no current
matters that would have a material effect on the Company's financial position or
results of operations.
8. SUBSEQUENT EVENTS
Management has evaluated subsequent events and is not aware of any significant
events that occurred subsequent to the balance sheet date but prior to the
issuance of this report, as filed with the Securities and Exchange Commission
(date available), that should be disclosed.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS
OF OPERATIONS
PLAN OF OPERATION
On June 1, 2012 we received approval from the Securities and Exchange Commission
of our Registration Statement on Form S-1. Wherein, we registered 2,000,000
shares of our common stock at an offering price of $.05 in order to raise
$100,000.00 as our initial capital.
On August 15, 2012 Cynk Technology Corp. closed its offering of common stock
registered on Form S-1. Subscriptions have been received from 30 investors,
raising $54,300 in proceeds.
We are a development stage company formed in the state of Nevada on May 1, 2008
as a web based social network service founded on the premise that personal
networks and contacts are valuable. Social networks are web based services that
allow individuals to post a profile and link their profile to other friends and
organizations. To date, social networks such as Linkedin.com and Facebook.com
have generated enormous popularity. Social networks have largely been a
"personal branding" exercise or for pure entertainment to see what friends or
associates are doing.
Cynk Technology Corp. plans to be a social network that is also based on showing
the types of people you are connected with and are associated. However, it's
also based on the idea that people should, and will pay to get in touch with
people you know. Furthermore, money or donations act as a convenient reason to
get in touch with people who can benefit your career or enhance one's life.
We believe that people will pay for introductions that are meaningful since it
can save or create significant value to someone's life such as to find the right
executive, nanny, software developer - or even the right squash player. Instead
of paying for a lunch that neither party wants to eat, parties can get down to
business knowing that their time has been valued.
Cynk Technology Corp. is a development stage company that has not commenced its
planned principal operations to date. Cynk Technology Corp. plans to launch its
web based social network at the end of the next quarter following the placement
of the offering. Operations to date have been devoted primarily to start-up and
development activities, which include the following:
1. Development of the business plan;
2. Website development;
3. Programming including: user interface, search mechanism,
registration, listings, membership profile, search functions,
invitation screens, secured payment options;
4. Adopted marketing strategy and target market segmentation;
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5. Conducted due diligence on market acceptance, membership trends
and social network habits;
6. We plan to launch our website www.introbizz.com during the fourth
quarter of 2013. We have identified a company in Texas to provide
us with server space at a cost of $99 per server. If additional
server space is needed (based on traffic to our site) this
company can provide ample servers immediately on demand.
Cynk Technology Corp. has identified the following challenges to its success:
1. MAKING ADOPTION EASY AND "STIGMA-LESS"
Cynk Technology Corp. plans to introduce a new model for social networks that we
believe will require some acceptance. Selling a stranger your record collection
via online auction was a stretch for some people to adopt, and Cynk Technology
Corp. is likely to face similar challenges from late adopters. Cynk Technology
Corp. believes its planned social network may disrupt an inefficient model of
meeting people that is currently based on vague notions of social capital by
making it clear "I want to meet this person, and I will make it worth your
while".
We believe that an important component to removing the stigma would be the
involvement of non-profits. If people are uncomfortable receiving payment,
almost everyone is comfortable generating a donation to a cause that helps
disadvantaged children, fighting disease, or helping physically or mentally
handicapped people.
2. SOCIAL NETWORK USER FATIGUE
Linked, Facebook, Doostang, Myspace, and several other social networks already
have established themselves and many users are tired of receiving invitations
from people to join another network. Cynk Technology Corp. does not believe
another traditional social network such as a direct competitor to Linkedin.com
could compete. However, Cynk Technology Corp. believes a social network that
GENERATES REVENUE is a compelling reason to get people to join.
3. MANAGING CORPORATE POLICIES
Cynk Technology Corp. expects that a number of enterprises will have limitations
on what people can accept for gifts. Cynk Technology Corp. is likely to "fly
under radar" for some time, but it may be possible that certain organizations
ultimately restrict employees from using their professional titles to generate
revenue. For example, someone who is "Director of IT Purchasing, Starbucks"
could wield enormous power for someone seeking an appointment and generate
significant revenue.
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The following policies could be embraced:
All revenue could be donated to the corporation or organization itself.
This could allow companies to have more efficient uses of their time by
using a "pay for meeting" policy to keep over-eager salespeople at bay.
All revenue could be donated to a designated non-profit (i.e. MICROSOFT
EMPLOYEES WILL DESIGNATE ALL REVENUE TO THE MICROSOFT COMPUTERS FOR KIDS
FOUNDATION. )
RESULTS OF OPERATION
The Company did not have any operating income from inception (May 1, 2008)
through September 30, 2013. For the period from inception, May 1, 2008 through
the period ended September 30, 2013, the registrant recognized a net loss of
$1,583,827.
Expenses for the all periods presented were comprised of costs mainly associated
with web site development, legal, accounting and office. Some general and
administrative expenses during the year were accrued. Our operating expenses
were $11,275, $6,890, $1,498,121, $15,766, and $1,578,304 for the three and nine
month periods ended September 30, 2013 and 2012 and for the period May 1, 2008
(date of inception) through September 30, 2013. Current expenses increased over
prior period, primarily for non-cash stock based compensation, in the amount of
$1,428,000.
LIQUIDITY AND CAPITAL RESOURCE
On August 15, 2012 Cynk Technology Corp. closed its offering of common stock
registered on Form S-1. Subscriptions have been received from 30 investors,
raising $54,300 in proceeds.
The Company has minimal cash insufficient to satisfy our current obligations or
to meet our anticipated minimal expenses of continued reporting compliance. The
Company is dependent on the majority shareholder for temporary funding and
advances to meet minimum cash flow requirements. There is no written guarantees
that future funding will be made by these individuals, or that future attempts
to raise funds through equity or traditional debt arrangements will be
successful or at reasonable terms.
As of September 30, 2013 we have negative working capital ($33,688) and
accumulated deficits ($1,583,827), which adversely impact our financial
position.
CRITICAL ACCOUNTING POLICIES
Cynk Technology Corp. financial statements and related public financial
information are based on the application of accounting principles generally
accepted in the United States ("GAAP"). GAAP requires the use of estimates;
assumptions, judgments and subjective interpretations of accounting principles
that have an impact on the assets, liabilities, revenue and expense amounts
reported. These estimates can also affect supplemental information contained in
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our external disclosures including information regarding contingencies, risk and
financial condition. We believe our use if estimates and underlying accounting
assumptions adhere to GAAP and are consistently and conservatively applied. We
base our estimates on historical experience and on various other assumptions
that we believe to be reasonable under the circumstances. Actual results may
differ materially from these estimates under different assumptions or
conditions. We continue to monitor significant estimates made during the
preparation of our financial statements.
ITEM 4. CONTROLS AND PROCEDURES
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
We maintain disclosure controls and procedures (as defined in Rules 13a-15(f)
and 15d-15(f) under the Exchange Act) that are designed to ensure that
information required to be disclosed in the reports we file or submit under the
Exchange Act is recorded, processed, summarized and reported within the time
periods specified in the SEC's rules and forms, and that such information is
accumulated and communicated to our management, including our chief executive
officer and chief financial officer, as appropriate to allow timely decisions
regarding disclosure. In designing and evaluating the disclosure controls and
procedures, management recognized that any controls and procedures, no matter
how well designed and operated, can provide only reasonable assurance of
achieving the desired control objectives, and management necessarily was
required to apply its judgment in evaluating the cost-benefit relationship of
possible controls and procedures.
Our management, with the participation of our chief executive officer and chief
financial officer, has evaluated the effectiveness of our disclosure controls
and procedures as of September 30, 2013. Based on their evaluation, our chief
executive officer and chief financial officer have concluded that, as of
November 4, 2013, our disclosure controls and procedures were not effective.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 1A. RISK FACTORS
The Company is a smaller reporting company and is not required to provide this
information.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
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ITEM 4. MINE SAFETY DISCLOSURES
None.
ITEM 5. OTHER INFORMATION
On August 15, 2012 Cynk Technology Corp. closed its offering of common stock
registered on Form S-1. Subscriptions have been received from 30 investors,
raising $54,300 in proceeds.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
31.1 Certification pursuant to Section 302 of Sarbanes Oxley Act of 2002
32.1 Certification pursuant to Section 906 of Sarbanes Oxley Act of 2002
101 Interactive Data files pursuant to Regulation S-T
(b) Reports on Form 8-K
On July 26, 2013 an 8-K was filed regarding Amendments to Articles of
Incorporation or By-Laws
On August 15, 2013 an 8-K was filed regarding a Change of Address of
Corporate Offices.
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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.
CYNK TECHNOLOGY CORP.
Date: November 7, 2013
/s/ Marlon Luis Sanchez
--------------------------------------------------
Marlon Luis Sanchez
President, Chief Executive Officer,
Chief Financial Officer, Chief Accounting Officer,
Secretary, Treasurer, Director
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