UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Amendment No. 2 to
FORM 10-Q/A
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|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2010
OR
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission file number 0-53810
EZJR, INC.
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(Exact name of registrant as specified in its charter)
Nevada 20-0667864
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2235 E. Flamingo, Suite 114, Las Vegas, NV 89119
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(Address of principal executive offices)(Zip Code)
Issuer's telephone number, including area code: (702) 631-4251
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 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 |_| No |X|
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
definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of
the Exchange Act (Check one).
Large accelerated filer |_| Accelerated filer |_|
Non-accelerated filer |_| Smaller Reporting Company |X|
(Do not check if a smaller reporting company)
Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act). Yes |_| No |X|
As of September 17, 2010, the registrant had outstanding 10,873,750 shares of
its $0.001 par value Common Stock.
Explanatory Note
----------------
We are filing this Amendment No. 2 on Form 10-Q/A for the quarter ended
March 31, 2010 to amend our Form 10-Q originally filed with the U. S.
Securities and Exchange Commission on May 24, 2010. We are filing this
amendment for the purpose of providing corrected information concerning
our Controls and Procedures under Item 4.
Unless otherwise expressly stated, this Amendment No. 2 does not reflect events
occurring after the filing of the original Form 10-Q, or modify or update in
any way disclosures contained in the original Form 10-Q.
Table of Contents
EZJR, Inc.
Index to Form 10-Q
For the Quarterly Period Ended March 31, 2010
Part I. Financial Information
Page
Item 1. Financial Statements
Balance Sheets as of March 31, 2010 and June 30, 2009 3
Statements of Operations for the three months and nine months
ended March 31, 2010 and 2009 4
Statements of Cash Flows for the nine months
ended March 31, 2010 and 2009 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 8
Item 3. Quantitative and Qualitative Disclosures About Market Risk 13
Item 4. Controls and Procedures 13
Part II Other Information
Item 1. Legal Proceedings 17
Item 1A. Risk Factors 17
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 17
Item 3. Defaults Upon Senior Securities 17
Item 4. Submission of Matters to a Vote of Security Holders 17
Item 5. Other Information 17
Item 6. Exhibits 18
Signatures 19
2
Part I. Financial Information
Item 1. Financial Statements
EZJR, Inc.
(A Development Stage Company)
Condensed Consolidated Balance Sheets
March 31,
2010 June 30,
(Unaudited) 2009
----------- -------------
ASSETS
Current assets:
Prepaid expenses $ - $ 3,500
----------- -------------
Total current assets - 3,500
------------ -------------
TOTAL ASSETS $ - $ 3,500
=========== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 3,230 $ 1,480
Accrued expense 1,750 2,500
------------ -------------
Total liabilities 4,980 3,980
------------ -------------
Stockholders' equity:
Preferred stock, $0.001 par value,
5,000,000 shares authorized,
none issued - -
Common stock, $0.001 par value, 70,000,000
shares authorized, 10,873,750 shares and
10,873,750 issued and outstanding
as of 3/31/10 and 6/30/09 respectively 10,873 10,873
Additional paid-in capital 72,528 67,028
(Deficit) accumulated during development
stage (88,381) (78,381)
------------ -------------
Total stockholders' equity (4,980) (480)
------------ -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ - $ 3,500
============ =============
The accompanying notes are an integral part of these financial statements.
3
EZJR, Inc.
(A Development Stage Company)
Condensed Consolidated Statements of Operations
(Unaudited)
August 14,
For the For the 2006
Three Months Ended Nine Months Ended (Inception)
------------------------ ------------------------ to
March 31, March 31, March 31, March 31, March 31,
2010 2009 2010 2009 2010
----------- ----------- ----------- ----------- ------------
REVENUE $ - $ - $ - $ - $ -
----------- ----------- ----------- ----------- ------------
EXPENSES
Audit fees 2,500 1,000 5,000 2,000 12,000
Incorporating
fees - - - - 430
Legal fees 2,500 - 5,000 - 5,000
Option
contract - - - - 46,000
Professional
fees - 5,155 - 7,385 7,914
Research &
development - - - 280 17,037
----------- ----------- ----------- ----------- ------------
Total Expenses 5,000 6,155 10,000 9,665 88,381
----------- ----------- ----------- ----------- ------------
Net loss
before income
taxes (5,000) (6,155) (10,000) (9,665) (88,381)
Income tax
expense - - - - -
----------- ----------- ----------- ----------- ------------
NET (LOSS) $ (5,000) $ (6,155) $ (10,000) $ (9,665) $ (88,381)
=========== =========== =========== =========== ============
NET (LOSS)
PER COMMON
SHARE $ (0.00) $ (0.00) $ (0.00) $ (0.00)
=========== =========== =========== ===========
WEIGHTED AVERAGE
NUMBER OF
COMMON SHARES
OUTSTANDING 10,873,750 10,873,750 10,873,750 10,873,750
=========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements.
4
EZJR, Inc.
(A Development Stage Company)
Condensed Consolidated Statements of Cash Flows
(Unaudited)
August 14,
For the 2006
Nine Months Ended (Inception)
------------------------ to
March 31, March 31, March 31,
2010 2009 2010
----------- ----------- ------------
OPERATING ACTIVITIES
Net (loss) $ (10,000) $ (9,665) $ (88,381)
Adjustments to reconcile net loss to
net cash provided (used) by operating
activities:
Decrease (increase) in
prepaid expenses 3,500 (4,500) -
Increase (decrease) in
accounts payable 1,750 (14,302) 3,230
Increase (decrease) in
accrued expenses (750) - 1,750
----------- ----------- ------------
Net cash (used) by operating
activities (5,500) (28,467) (83,401)
FINANCING ACTIVITIES
Contributed capital 5,500 20,967 83,401
----------- ----------- ------------
Net cash provided by financing
activities 5,500 20,967 83,401
----------- ----------- ------------
NET INCREASE (DECREASE) IN CASH - (7,500) -
CASH AND EQUIVALENTS - BEGINNING - 7,500 -
----------- ----------- ------------
CASH AND EQUIVALENTS - ENDING $ - $ - $ -
=========== =========== ============
SUPPLEMENTAL DISCLOSURES:
Interest paid $ - $ - $ -
Income taxes paid $ - $ - $ -
Non-cash transactions $ - $ - $ -
The accompanying notes are an integral part of these financial statements.
5
EZJR, Inc.
(A Development Stage Company)
Notes to the Condensed Consolidated Financial Statements
March 31, 2010
(Unaudited)
NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The accompanying financial statements have been prepared by the Company
without audit. In the opinion of management, all adjustments (which include
only normal recurring adjustments) necessary to present fairly the financial
position, results of operations and cash flows at March 31, 2010 and for
all periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted. It
is suggested that these condensed financial statements be read in conjunction
with the financial statements and notes thereto included in the Company's
June 30, 2009 audited financial statements. The results of operations for
the period ended March 31, 2010 are not necessarily indicative of
the operating results for the full year.
Basis of Presentation
- ---------------------
In the opinion of management, the accompanying balance sheets and related
interim statements of income, cash flows, and stockholders' equity include
all adjustments, consisting only of normal recurring items, necessary for
their fair presentation in conformity with accounting principles generally
accepted in the United States of America ("U.S. GAAP"). Preparing financial
statements requires management to make estimates and assumptions the affect
the reported amounts of assets, liabilities, revenue and expenses. Actual
results and outcomes may differ from management's estimates and assumptions.
Interim results are not necessarily indicative of results for a full year.
The information included in this Form 10-Q should be read in conjunction
with information included in the Form 10-K.
NOTE 2 - GOING CONCERN
These condensed financial statements have been prepared in accordance with
generally accepted accounting principles applicable to a going concern which
contemplates the realization of assets and the satisfaction of liabilities
and commitments in the normal course of business. As of March 31, 2010,
the Company has not recognized any revenues and has accumulated operating
losses of approximately $88,381 since inception. The Company's ability
to continue as a going concern is contingent upon the successful completion of
additional financing arrangements and its ability to achieve and maintain
profitable operations. Management plans to raise equity capital to finance
the operating and capital requirements of the Company. Amounts raised will be
used to further development of the Company's products, to provide financing
for marketing and promotion, to secure additional property and equipment, and
for other working capital purposes. While the Company is putting forth its
best efforts to achieve the above plans, there is no assurance that any such
activity will generate funds that will be available for operations.
These conditions raise substantial doubt about the Company's ability to
continue as a going concern. These financial statements do not include any
adjustments that might arise from this uncertainty.
6
EZJR, Inc.
(A Development Stage Company)
Notes to the Condensed Consolidated Financial Statements
March 31, 2010
(Unaudited)
NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
- ----------------
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Recent Accounting Pronouncements
- --------------------------------
Management has evaluated recently issued accounting pronouncements through
May 24, 2010 and concluded that they will not have a material effect on the
financial statements as of March 31, 2010.
NOTE 4 - RELATED PARTY TRANSACTIONS
The Company does not lease or rent any property. Office services are
provided without charge by a director. Such costs are immaterial to the
financial statements and, accordingly, have not been reflected therein.
The officers and directors of the Company are involved in other business
activities and may, in the future, become involved in other business
opportunities. If a specific business opportunity becomes available, such
persons may face a conflict in selecting between the Company and their other
business interests. The Company has not formulated a policy for the
resolution of such conflicts.
NOTE 5 - CONTRIBUTED CAPITAL
During the quarter ending March 31, 2010, the Company's sole officer and
director contributed $500 for auditing fees.
During the quarter ending March 31, 2010, the Company's corporate counsel
agreed to prepare, write, EDGARize and provide legal opinion for the
Company's interim reports and Form 10 filing, which the law firm valued at
$2,500.
The law firm decided to contribute this capital based on its recommendation
that the Company engage the services of an auditor, who had his license
revoked and was not able to complete the Company's audit for the past fiscal
year. Based on this decision, the Company needed to engage a new auditor.
The Company's corporate counsel believes this action will help build goodwill
for its law firm.
NOTE 6 - SUBSEQUENT EVENTS
None. The Company has evaluated subsequent events through May 24, 2010,
the date which the financial statements were available to be issued.
7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Item 2. - Management's Discussion and Analysis of Financial Condition and
Results of Operations
Forward-Looking Information
The Company may from time to time make written or oral "forward-looking
statements" including statements contained in this report and in other
communications by the Company, which are made in good faith by the Company
pursuant to the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995.
These forward-looking statements include statements of the Company's plans,
objectives, expectations, estimates and intentions, which are subject to
change based on various important factors (some of which are beyond the
Company's control). The following factors, in addition to others not listed,
could cause the Company's actual results to differ materially from those
expressed in forward looking statements: the strength of the domestic and
local economies in which the Company conducts operations, the impact of
current uncertainties in global economic conditions and the ongoing financial
crisis affecting the domestic and foreign banking system and financial
markets, including the impact on the Company's suppliers and customers,
changes in client needs and consumer spending habits, the impact of
competition and technological change on the Company, the Company's ability to
manage its growth effectively, including its ability to successfully integrate
any business which it might acquire, and currency fluctuations. All forward-
looking statements in this report are based upon information available to the
Company on the date of this report. The Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as a result
of new information, future events, or otherwise, except as required by law.
Critical Accounting Policies
- ----------------------------
There have been no material changes to our critical accounting policies and
estimates from the information provided in Item 7, "Management's Discussion
and Analysis of Financial Condition and Results of Operations", included in
our Annual Report on Form 10-K for the fiscal year ended June 30, 2009.
8
Results of Operations
- ---------------------
Overview of Current Operations
- ------------------------------
EZJR, Inc., was organized by the filing of Articles of Incorporation
with the Secretary of State of the State of Nevada on August 14, 2006, under
the corporate name IVPSA Corporation. The Company subsequently changed its
corporate name to EZJR, Inc. on July 25, 2008.
EZJR, Inc. is a developmental medical device company which plans to
produce medical devices, utilizing the services contract manufacturing
facilities. EZJR does not have the resources to conduct any required
clinical trials to obtain FDA approval. Therefore, EZJR plans to outsource
this task to third parties who have the facilities to conduct any required
clinical trials. EZJR also plans to subcontract the manufacturing and
production process of any future medical device to a FDA approved contract
manufacturing facility which can produce sterile medical devices under Good
Manufacturing Practices. The company plans to distribute its product(s) into
the marketplace through medical supply wholesalers, hospitals and health
maintenance organizations.
Competition
- -----------
The medical device industry is highly competitive. Factors contributing to
the industry's increasingly competitive market include regulatory changes,
product substitution, technological advances, and the entrance of new
competitors.
Most all of EZJR 's competitors have significantly greater financial,
marketing, other resources, and larger customer bases than EZJR has and are
more financially leveraged. As a result, these competitors may be able to
adapt changes in customer requirements more quickly; introduce new and more
innovative products more quickly; better adapt to downturns in the economy or
other decreases in sales; better withstand pressure for cancelled services,
take advantage of acquisition and other opportunities more readily; devote
greater resources to the marketing and sale of their products; and adapt more
aggressive pricing policies. All of which may contribute to intensifying
competition and may affect EZJR 's future revenue growth.
EZJR Funding Requirements
- -------------------------
EZJR does not have the required capital or funding to complete this initial
project. Management anticipates EZJR will require at least $500,000 to
complete to perform the required FDA studies and produce inventory. The
Company has yet to source this funding.
9
Management continues to seek different funding sources in order to advance
its business plan. The downturn in the economy has limited our sources of
financing. Management continues to seek financing with no success. If the
Company is unable to obtain capital to finance its plan of operations or
identify alternative capital, EZJR may need to curtail, limit or cease its
existing operations.
Future funding could result in potentially dilutive issuances of equity
securities, the incurrence of debt, contingent liabilities and/or
amortization expenses related to goodwill and other intangible assets, which
could materially adversely affect the Company's business, results of
operations and financial condition. Any future acquisitions of other
businesses, technologies, services or product(s) might require the Company to
obtain additional equity or debt financing, which might not be available on
terms favorable to the Company, or at all, and such financing, if available,
might be dilutive.
Results of Operations for the three months ended March 31, 2010
- ---------------------------------------------------------------
We earned no revenues since our inception on August 14, 2006 through
March 31, 2010. We do not anticipate earning any significant revenues
until such time as we can bring to the market a medical device product. We
can provide no assurance that we will be successful in developing any
medical device products.
For the period inception through March 31, 2010, we generated no income.
Since our inception on August 14, 2006 we experienced a net loss of $(88,381).
Our loss was attributed to organizational expenses, entering into an exclusive
option agreement for a medical device and development costs to build a medical
device. We anticipate our operating expenses will increase as we enhance our
operations. The increase will be attributed to professional fees to be
incurred in connection with maintaining our fully reporting requirements with
the U. S. Securities and Exchange Commission, and with added medical device
development costs.
For the three months ending March 31, 2010, we experienced a net loss of
$(5,000) as compared to a net loss of $(6,155) for the same period last year.
The net loss for the three months ending March 31, 2010 was contributed
to audit expenses of $2,500 and legal fees of $2,500. For the nine months
ending March 31, 2010, we experienced a net loss of $(10,000) as compared to
a net loss of $(9,665) for the same period last year. The net loss for the
nine months ending March 31, 2010 was attributed to audit expenses of $5,000
and legal fees of $5,000. We have no cash at hand as of March 31, 2010. In
our June 30, 2009 year-end financials, our auditor issued an opinion that
our financial condition raises substantial doubt about the Company's ability
to continue as a going concern.
10
Revenues
- --------
We generated no revenues for the period from August 14, 2006 (inception)
through March 31, 2010. We do not anticipate generating any revenues
for at least 24 months or until we can bring to market a viable medical device.
Going Concern
- -------------
The condensed financial statements included with this quarterly report have
been prepared in accordance with generally accepted accounting principles
applicable to a going concern which contemplates the realization of assets
and the satisfaction of liabilities and commitments in the normal course of
business. As of March 31, 2010, the Company has not recognized any revenues
and has accumulated operating losses of approximately $88,381 since
inception. The Company's ability to continue as a going concern is
contingent upon the successful completion of additional financing
arrangements and its ability to achieve and maintain profitable operations.
Management plans to raise equity capital to finance the operating and
capital requirements of the Company. Amounts raised will be used to further
development of the Company's products, to provide financing for marketing
and promotion, to secure additional property and equipment, and for other
working capital purposes. While the Company is putting forth its best
efforts to achieve the above plans, there is no assurance that any such
activity will generate funds that will be available for operations.
These conditions raise substantial doubt about the Company's ability to
continue as a going concern. Our financial statements do not include any
adjustments that might arise from this uncertainty.
Summary of any product research and development that we will perform for the
term of our plan of operation.
- ----------------------------------------------------------------------------
Our progress in product research and development is contingent upon
developing a central line catheter prototype. This needs to be a working
prototype that can be readily duplicated by a contract manufacturer at a
reasonable price. EZJR has yet to find a contract manufacturer who can build
a working prototype of this catheter. In November, 2007, EZJR signed a
purchase order with Interplex Medical LLC of Midford, OH, to help the Company
develop this working prototype. The terms of the purchase order require that
EZJR pays up to $25,000 for the development of a prototype catheter. Their
engineers were unable to successfully build this prototype. If a working
prototype cannot be built, there would be no reason to proceed in attempting
to bring this medical device to the market.
The difficulty in building a double catheterization prototype of this catheter
rests in its design. It is a catheter within a catheter. The catheter inside
the larger catheter must make a 180 degree turn without crimping its opening
to server its purpose. In other words, blood must be able to pass within the
inner catheter without any blockage, after the inner catheter has made a 180
turn. We have been unable to produce a working catheter which successfully
meets these design specifications.
Expected purchase or sale of plant and significant equipment.
- -------------------------------------------------------------
We do not anticipate the purchase or sale of any plant or significant
equipment; as such items are not required by us at this time.
11
Significant changes in the number of employees.
- -----------------------------------------------
As of March 31, 2010, we did not have any employees. We are dependent
upon our sole officer and a director for our future business development.
As our operations expand we anticipate the need to hire additional employees,
consultants and professionals; however, the exact number is not quantifiable
at this time.
Liquidity and Capital Resources
- -------------------------------
Our balance sheet as of March 31, 2010 reflects no assets and current
liabilities of $4,980. Cash and cash equivalents from inception to date have
been sufficient to provide the operating capital necessary to operate to date.
A critical component of our operating plan impacting our continued existence
is the ability to obtain additional capital through additional equity and/or
debt financing. We do not anticipate generating sufficient positive internal
operating cash flow until such time as we can deliver our product to market,
complete additional financial service company acquisitions and generate
substantial revenues, which may take the next few years to fully realize.
We anticipate we will require additional capital up to approximately $500,000
and we would have to issue debt or equity or enter into a strategic
arrangement with a third party. We have been trying without success to raise
capital. In the event we cannot obtain the necessary capital to pursue our
strategic plan, we may have to cease or significantly curtail our operations.
This would materially impact our ability to continue operations.
The Company has limited financial resources available, which has had an
adverse impact on the Company's liquidity, activities and operations. These
limitations have adversely affected the Company's ability to obtain certain
projects and pursue additional business. Without realization of additional
capital, it would be unlikely for the Company to continue as a going concern.
In order for the Company to remain a Going Concern it will need to find
additional capital. Additional working capital may be sought through
additional debt or equity private placements, additional notes payable to
banks or related parties (officers, directors or stockholders), or from other
available funding sources at market rates of interest, or a combination of
these. The ability to raise necessary financing will depend on many factors,
including the nature and prospects of any business to be acquired and the
economic and market conditions prevailing at the time financing is sought.
No assurances can be given that any necessary financing can be obtained on
terms favorable to the Company, or at all.
Our sole officer/director has agreed to contribute funds to the operations
of the Company, in order to keep it fully reporting for the next twelve
(12) months, without seeking reimbursement for funds contributed.
As a result of the Company's current limited available cash, no officer or
director received compensation through the quarter ended March 31, 2010.
The Company has no employment agreements in place with its officers.
12
Off-Balance Sheet Arrangements
- ------------------------------
We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes
in financial condition, revenues or expenses, results or operations,
liquidity, capital expenditures or capital resources that is material
to investors.
Critical Accounting Policies and Estimates
- ------------------------------------------
Revenue Recognition: We recognize revenue from product sales once all of the
following criteria for revenue recognition have been met: pervasive evidence
that an agreement exists; the services have been rendered; the fee is fixed
and determinable and not subject to refund or adjustment; and collection of
the amount due is reasonable assured.
New Accounting Standards
- ------------------------
Management has evaluated recently issued accounting pronouncements through
May 24, 2010 and concluded that they will not have a material effect on the
financial statements as of March 31, 2010.
Item 3. Quantitative and Qualitative Disclosures about Market Risk.
Not applicable.
Item 4T. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
- ------------------------------------------------
Our disclosure controls and procedures, as defined in Rule 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), are designed to ensure that information required to be
disclosed in reports filed or submitted under the Exchange Act is recorded,
processed, summarized, and reported within the time periods specified in
rules and forms adopted by the SEC, and that such information is accumulated
and communicated to management, including the Chief Executive Officer and
the Chief Financial Officer, to allow timely decisions regarding required
disclosures.
13
Management, with the participation of the Chief Executive Officer and the
Chief Financial Officer, who is also the sole member of our Board of
Directors, has evaluated the effectiveness of our disclosure controls and
procedures as of the end of the period covered by this report. Based
on such evaluation, the Chief Executive Officer and the Chief Financial
Officer concluded that, our disclosure controls and procedures were not
effective. Our disclosure controls and procedures were not effective because
of the "material weaknesses" described below under "Management's report on
internal control over financial reporting," which are in the process of being
remediated as described below under "Management Plan to Remediate Material
Weaknesses."
Management's Report on Internal Control over Financial Reporting
- ----------------------------------------------------------------
Our management is responsible for establishing and maintaining adequate
internal control over financial reporting. Internal control over financial
reporting, as defined in rules promulgated under the Exchange Act, is a
process designed by, or under the supervision of, our Chief Executive Officer
and Chief Financial Officer and affected by our Board of Directors,
management and other personnel to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with GAAP. Internal control
over financial reporting includes those policies and procedures that:
o pertain to the maintenance of records that in reasonable detail accurately
and fairly reflect the transactions and dispositions of our assets;
o provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with GAAP, and that
our receipts and expenditures are being made only in accordance with
authorizations of our management and our Board of Directors; and
o 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
Because of its inherent limitations, a system of internal control over
financial reporting can provide only reasonable, not absolute, assurance
that the objectives of the control system are met and may not prevent or
detect misstatements. Internal control over financial reporting is a process
that involves human diligence and compliance and is subject to lapses in
judgment and breakdowns resulting from human failures. Internal control
over financial reporting also can be circumvented by collusion or improper
override. Because of such limitations, there is a risk that material
misstatements may not be prevented or detected on a timely basis by internal
control over financial reporting. However, these inherent limitations are
known features of the financial reporting process, and it is possible to
design into the process safeguards to reduce, though not eliminate, this
risk. Further, over time control may become inadequate because of changes in
conditions or the degree of compliance with the policies or procedures may
deteriorate.
14
Our management assessed the effectiveness of our internal control over
financial reporting as of June 30, 2009. In making its assessment,
management used the criteria established in Internal Control-Integrated
Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission ("COSO"). Based on its assessment, management has
concluded that we had certain control deficiencies described below that
constituted material weaknesses in our internal controls over financial
reporting. As a result, our internal control over financial reporting was
not effective as of June 30, 2009.
A "material weakness" is defined under SEC rules as a deficiency, or a
combination of deficiencies, in internal control over financial reporting
such that there is a reasonable possibility that a material misstatement of
a company's annual or interim financial statements will not be prevented or
detected on a timely basis by the company's internal controls. As a result
of management's review of the investigation issues and results, and other
internal reviews and evaluations that were completed after the end of
quarter related to the preparation of management's report on internal
controls over financial reporting required for this quarterly report on
Form 10-Q/A, management concluded that we had material weaknesses in our
control environment and financial reporting process consisting of the
following:
1) lack of a functioning audit committee due to a lack of a majority of
independent members and a lack of a majority of outside directors on our
board of directors, resulting in ineffective oversight in the establishment
and monitoring of required internal controls and procedures;
2) inadequate segregation of duties consistent with control objectives;
3) insufficient written policies and procedures for accounting and financial
reporting with respect to the requirements and application of US GAAP and
SEC disclosure requirements; and
4) ineffective controls over period end financial disclosure and reporting
processes.
We do not believe the material weaknesses described above caused any
meaningful or significant misreporting of our financial condition and results
of operations for the fiscal year ended June 30, 2009. However, management
believes that the lack of a functioning audit committee and the lack of a
majority of outside directors on our board of directors results in
ineffective oversight in the establishment and monitoring of required
internal controls and procedures, which could result in a material
misstatement in our financial statements in future periods.
Management Plan to Remediate Material Weaknesses
- ------------------------------------------------
Management is pursuing the implementation of corrective measures to address
the material weaknesses described below. In an effort to remediate the
identified material weaknesses and other deficiencies and enhance our
internal controls, we have initiated, or plan to initiate, the following
series of measures:
15
We will create a position to segregate duties consistent with control
objectives and will increase our personnel resources and technical accounting
expertise within the accounting function when funds are available to us.
We plan to appoint one or more outside directors to our board of directors who
shall be appointed to an audit committee resulting in a fully functioning audit
committee who will undertake the oversight in the establishment and monitoring
of required internal controls and procedures such as reviewing and approving
estimates and assumptions made by management when funds are available to us.
We believe the remediation measures described above will remediate the
material weaknesses we have identified and strengthen our internal control
over financial reporting. We are committed to continuing to improve our
internal control processes and will continue to diligently and vigorously
review our financial reporting controls and procedures. As we continue to
evaluate and work to improve our internal control over financial reporting,
we may determine to take additional measures to address control deficiencies
or determine to modify, or in appropriate circumstances not to complete,
certain of the remediation measures described above.
Changes in Internal Control over Financial Reporting
- ----------------------------------------------------
There were no changes in our internal control over financial reporting (as
such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act)
during the most recent fiscal quarter that have materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting.
This amended quarterly report does not include an attestation report of the
Corporation's registered public accounting firm regarding internal control
over financial reporting. Management's report was not subject to attestation
by the Corporation's registered public accounting firm pursuant to temporary
rules of the SEC that permit the Corporation to provide only the management's
report in this quarterly report.
(c) Changes in internal controls over financial reporting
- ----------------------------------------------------------
There was no change in our internal controls over financial reporting that
occurred during the period covered by this report, that has materially
affected, or is reasonably likely to materially affect, our internal controls
over financial reporting.
16
PART II. OTHER INFORMATION
Item 1 -- Legal Proceedings
From time to time, we may become involved in various lawsuits and legal
proceedings, which arise in the ordinary course of business. However,
litigation is subject to inherent uncertainties, and an adverse result in
these or other matters may arise from time to time that may harm our
business.
We are not presently a party to any material litigation, nor to the knowledge
of management is any litigation threatened against us, which may materially
affect us.
Item 1A - Risk Factors
See Risk Factors set forth in Part I, Item 1A of the Company's Annual
Report on Form 10-K for the fiscal year ended June 30, 2009 and the
discussion in Item 1, above, under " Liquidity and Capital Resources."
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.
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Item 6 -- Exhibits
Incorporated by reference
-------------------------
Filed Period Filing
Exhibit Exhibit Description herewith Form ending Exhibit date
- ------------------------------------------------------------------------------
2.1 Acquisition and Plan of 10 6/30/09 2.1 10/29/09
Merger between EZJR, Inc.
and IVPSA Corporation
dated July 25, 2008
- ------------------------------------------------------------------------------
3.1 Articles of Incorporation, 10 6/30/09 3.1 10/29/09
as currently in effect
- ------------------------------------------------------------------------------
3.2 Bylaws 10 6/30/09 3.2 10/29/09
Corrected Bylaws 10/A 9/30/09 3.2 12/21/09
- ------------------------------------------------------------------------------
3.3 Articles of Merger 10 6/30/09 3.3 10/29/09
between EZJR, Inc. and
IVPSA Corporation
- ------------------------------------------------------------------------------
10.1 Exclusive Option Agreement 10 6/30/09 10.1 10/29/09
between IVPSA Corporation
and the Cleveland Clinic,
dated March 15, 2007
- ------------------------------------------------------------------------------
10.2 Extension of Exclusive 10 6/30/09 10.2 10/29/09
Option Agreement between
IVPSA Corporation and
the Cleveland Clinic,
dated April 14, 2008.
- ------------------------------------------------------------------------------
31.1 Certification of President X
and Principal Financial
Officer, pursuant to Section
302 of the Sarbanes-Oxley
Act
- ------------------------------------------------------------------------------
32.1 Certification of President X
and Principal Financial
Officer, pursuant to Section
906 of the Sarbanes-Oxley
Act
- ------------------------------------------------------------------------------
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EZJR, Inc.
-----------
Registrant
Date: September 17, 2010 By: /s/ T J Jesky
------------------ -----------------
T J Jesky
President
19