UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------
FORM 10-Q
[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange
Act of 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30,2008
[] Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from to
----------- -----------
Commission file number: 333-139129
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BORDER MANAGEMENT, INC.
(Exact name of small business issuer as specified
in its charter)
Nevada 20-5088293
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
968 - 240 th Street V2Z 2Y3
Langley, British Columbia, Canada
(Address of principal (Zip Code)
executive offices)
------------------
Issuer's telephone number, including area code: (604) 539-9680
(Former name or former address, if changed since last report)Not Applicable
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
[X] Yes [ ] 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" and smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer [ ] Accelerated filer [ ]
Non-accelerated filer [ ] (Do not Smaller reporting company [X]
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). [x] Yes [ ] No
As of June 30, 2008 the Issuer had 14,050,000 shares of common stock
issued and outstanding.
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BORDER MANAGEMENT, INC.
FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2008
TABLE OF CONTENTS
PART I
Item 1. Financial Statements
Balance Sheets as of June 30, 2008 and December 31, 2007 . . . . . . . F-1
Statements of Operations for the Six Months Ended June 30,2008 and
June 30, 2007 And from Inception (June 7,2006) to June 30, 2008. . . . F-2
Statement of Stockholders' Equity . . . . . . . . . . . . . . . . . . .F-3
Statements of Cash Flows for the Six Months Ended June 30 2007 and
June 30, 2008 And from Inception(June 7, 2006) to June 30, 2008 . . . .F-4
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . .F-5
Item 2. Management's Discussion and Analysis or Plan of Operation . . .6
Item 3. Quantitative and Qualitative Disclosures about Market Risk. . .10
Item 4. Controls and Procedures . . . . . . . . . . . . . . . . . . . .10
PART II. OTHER INFORMATION
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . .11
Item 2. Unregistered Sale of Equity Securities and Use of Proceeds. . .11
Item 3. Defaults Upon Senior Securities . . . . . . . . . . . . . . . .11
Item 4. Submission of Matters to a Vote of Security Holders . . . . . .11
Item 5. Other Information . . . . . . . . . . . . . . . . . . . . . . .11
Item 6. Exhibits. . . . . . . . . . . . . . . . . . . . . . . . . . . .11
BORDER MANAGEMENT, INC.
(A Development Stage Company)
FINANCIAL STATEMENTS
JUNE 30, 2008
Border Management, Inc.
(a development stage company)
Balance Sheets
As At As At
June 30 December 31
2008 2007
(UNAUDITED) (AUDITED)
- ---------------------------------------------------------------------
ASSETS
- ---------------------------------------------------------------------
Current Assets:
Cash $ 2,903 $ 330
Interest receivable 533 667
Promissory note receivable
-related party (Note 3) 40,000 90,000
Refundable Taxes 1,927 2,266
------------ -------------
Total Assets $ 45,363 $ 93,263
============ =============
- ---------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------
Current
Accounts payable and $ 11,369 $ 10,707
accrued liabilities ------------ -------------
- ---------------------------------------------------------------------
STOCKHOLDERS' EQUITY
- ---------------------------------------------------------------------
Common stock, $.001 par value
Authorized: 50,000,000 shares
Issued: 14,050,000 shares 14,050 14,050
Preferred stock,$.001 par value
Authorized: 20,000,000 shares
Issued: Nil
Additional paid-in capital 128,626 128,626
Deficit accumulated during the
development stage (108,682) (60,120)
------------ -------------
Total stockholders' equity 33,994 82,556
------------ -------------
Total liabilities and stockholders'
Equity $ 45,363 $ 93,263
============ =============
GOING CONCERN (Note 1)
The accompanying notes are an integral part of these financial statements.
APPROVED BY THE DIRECTORS:
/s/Evan Williams
- ----------------
Evan William
Director
/s/ Solomon Nordine
- -------------------
Solomon Nordine
Director
.F-1.
Border Management, Inc.
(a development stage company)
Statements of Operations
(Unaudited)
For the Three For the Three For the Six For the Six Period From
Months Ended Months Ended Months Ended Months Ended June 7, 2006
June 30, 2008 June 30, 2007 June 30,2008 June 30,2007 (inception) to
June 30, 2008
- --------------------------------------------------------------------------------------------------
REVENUE
Interest Revenue $ 1,600 $ 2,641 $ 3,400 $ 5,441 $ 15,896
Operating Revenue - - - - -
============= ============= =============== ============= ============
Total Revenue $ 1,600 $ 2,641 $ 3,400 $ 5,441 $ 15,896
EXPENSES
Advertising - - 62 - 809
Bank Charges 113 - 145 22 196
Management fees 18,000 5,981 24,000 5,981 41,441
Professional fees 8,530 8,570 17,780 14,665 61,482
Listing and Share
Transfer fees 4,800 5,220 5,100 5,390 11,370
Rent 3,000 1,495 4,875 1,495 9,280
============= ============= ============== ============= =============
Total Expenses 34,443 21,266 51,962 27,553 124,578
NET LOSS $ (32,843) $ (18,625) $ (48,562) $(22,113) $(108,682)
============= ============= ============== ============= =============
Loss per share $ (0.00) $ (0.00) $ (0.00) $ (0.00) $ (0.01)
(Note 2(e)) ============= ============= ============== ============= =============
Weighted average
number of shares
outstanding 14,050,000 14,050,000 14,050,000 14,050,000 13,066,247
============= ============= ============== ============= =============
- ---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
.F-2.
Border Management, Inc.
(a development stage company)
Statement of Stockholders' Equity
(Unaudited)
For the Period from June 7, 2006 (inception) to June 30, 2008
- -----------------------------------------------------------------------------
Common stock
-------------- Deficit Acc. Total
Number Amount Additional During Devel- Stockholders
Of Shares Paid-in opment Stage Equity
Capital
--------- -------- ----------- --------------- -------------
Issue of Common 7,600,000 $ 7,600 $ 68,400 $ - $ 76,000
Stock for cash
On organization
Of the Company
Issue of Common 6,450,000 $ 6,450 $ 60,226 $ - $ 66,676
Stock for cash
Net loss for
Period - - - $ (24,467) $ (24,467)
--------- -------- ----------- --------------- -------------
Balance 14,050,000 $14,050 $ 128,626 $ (24,467) $ 118,209
December 31,
2006
Net loss for
the period - - - (35,653) (35,653)
--------- -------- ----------- --------------- -------------
Balance 14,050,000 $14,050 $ 128,626 $ (60,120) $ 82,556
December 31,
2007
Net loss for
Period - - - (48,562) (48,562)
--------- --------- ---------- --------------- -------------
Balance
June 30,
2008 14,050,000 $14,050 $ 128,626 $(108,682) $ 33,994
========== ======== =========== =============== =============
The accompanying notes are an integral part of these financial statements.
.F-3.
Border Management, Inc.
(a development stage company)
Statement of Cash Flows
(Unaudited)
For the Three For the Three For the Six For the Six Period from
Months Ended Months Ended Months Ended Months Ended June 7,2006
June 30,2008 June 30, 2007 June 30,2008 June 30,2007 (inception) to
June 30, 2008
- ----------------------------------------------------------------------------------------------
CASH FLOWS (USED IN)
PROVIDED BY:
OPERATING ACTIVITIES
Net loss $ (32,843) $ (18,625) $ (48,562) $ (22,113) $(108,682)
Adjustments to
reconcile net
loss to net cash
used in operating
activities:
Decrease (Increase)
in accounts receivable
and accrued assets 950 - 473 - (2,460)
Increase (Decrease) in
accounts payable
and accrued
liabilities (5,420) 3,625 662 7,091 11,369
----------- ---------- ----------- ---------- -----------
(37,295) (15,000) (47,427) (15,022) (99,773)
=========== ========== =========== ========== ===========
INVESTING ACTIVITIES
Promissory note
receivable 40,000 15,000 50,000 15,000 (40,000)
----------- ---------- ----------- ----------- -----------
FINANCING ACTIVITIES
Common stock
issued for cash: - - - - 142,676
----------- ---------- ----------- ----------- -----------
INCREASE IN CASH 2,705 (0) 2,573 (22) 2,903
----------- ---------- ----------- ----------- -----------
CASH, beginning 198 330 330 351 -
----------- ---------- ----------- ----------- -----------
CASH, ending $ 2,903 $ 330 $ 2,903 $ 330 $ 2,903
----------- ---------- ----------- ----------- -----------
SUPPLEMENTAL
INFORMATION
Cash paid during
the year to:
Interest $ - $ - $ - $ - $ -
Income taxes $ - $ - $ - $ - $ -
- -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
.F-4.
BORDER MANAGEMENT, INC.
(a development stage company)
June 30, 2008
1. 0RGANIZATION AND DEVELOPMENT STAGE ACTIVITIES
The Company was incorporated under the laws of the State of Nevada on June 7,
2006. The company purpose in the Articles of Incorporation is to engage in
any lawful activity or activities in the State of Nevada and throughout the
world. The Company will specialize in offering management and consulting
services to non-Canadian businesses, organizations and individuals wishing to
conduct business in Canada. As of June 30, 2008, the Company is
considered to be in the development stage as the Company is devoting
substantially all of its effort to establishing its new business and the
Company has not generated revenues from its business activities. The Company
has no cash flows from operations. The Company is currently seeking
additional funds through future debt or equity financing to offset future
cash flow deficiencies. Such financing may not be available or may not be
available on reasonable terms. The resolution of this going concern issue is
dependent on the realization of management's plans. If management is
unsuccessful in raising future debt or equity financing, the Company will be
required to liquidate assets and curtail or possibly cease operations.
2 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Company have been prepared in accordance with
accounting principles generally accepted in the United States. Because a
precise determination of many assets and liabilities is dependent on future
events, the preparation of financial statements for a period necessarily
involves the use of estimates which have been made using careful judgment.
The financial statements have, in management's opinion, been properly
prepared within reasonable limits of materiality and within the framework of
the accounting policies summarized below:
a .Cash and cash equivalents
The Company considers all short-term investments, including investments in
certificates of deposit, with a maturity date at purchase of three months
or less to be cash equivalents.
b. Revenue recognition
Revenue is recognized on the sale and transfer of goods and services.
c .Foreign currencies
The functional currency of the Company is the United States dollar.
Transactions in foreign currencies are translated into United States dollars
at the rates in effect on the transaction date. Exchange gains or losses
arising on translation or settlement of foreign currency denomination
monetary items are included in the statement of operations.
d .Financial instruments
The Company's financial instruments consist of cash, promissory note
receivable, and accounts payable and accrued liabilities.
Management is of the opinion that the Company is not subject to significant
interest, currency or credit risks on the financial instruments included in
these financial statements. The fair market values of these financial
instruments approximate their carrying values.
e .Income taxes
The Company follows the asset and liability method of accounting for income
taxes. Under this method, current taxes are recognized for the estimated
income taxes payable for the current period.
Deferred income taxes are provided based on the estimated future tax effects
of temporary differences between financial statement carrying amounts of
assets and liabilities and their respective tax bases as well as the benefit
of losses available to be carried forward to future years for tax purposes.
Deferred tax assets and liabilities are measured using enacted tax rates that
are expected to apply to taxable income in the years in which those temporary
differences are expected to be covered or settled. The effect of deferred tax
assets and liabilities of a change in tax rates is recognized in operations
in the period that includes the enactment date. A valuation allowance is
recorded for deferred tax assets when it is more likely than not that such
deferred tax assets will not be realized.
f .Loss per share
Basic loss per share is computed by dividing loss for the period available to
common stockholders by the weighted average number of common stock
outstanding during the period.
g .Recent accounting pronouncements
In September 2006, the FASB issued FASB Statement No. 157. This statement
defines fair value, establishes a framework for measuring fair value in
generally accepted accounting principles, and expands disclosures about fair
value measurements. This statement applies under other accounting
pronouncements that require or permit fair value measurements, the Board
having previously concluded in those accounting pronouncements that fair
value is a relevant measurement attribute. Accordingly, this statement does
not require any new fair value measurements. However, for some entities, the
application of the statement will change current practice. This statement is
effective for financial statements for fiscal years beginning after November
15, 2007.
In February 2008, the FASB issued FASB Staff Position (FSP FIN) No. 157-2
which extended the effective date for certain nonfinancial assets and
nonfinancial liabilities to fiscal years beginning after November 15, 2008.
The adoption of the portions of SFAS No. 157 that were not postponed by
(FSP FIN) No. 157-2 did not have a material impact on the financial
statements. The Company does not expect the adoption of the postponed
portions of SFAS No. 157 to have a material impact on the Company's
financial statements.
In February 2007, the Financial Accounting Standards Board (FASB)issued
SFASNo. 159, "The Fair Value Option for Financial Assets and
FinancialLiabilities - Including an Amendment of FASB Statement No. 115".This
statement permits entities to choose to measure many financial instruments
and certain other items at fair value. Most of the provisions of SFAS No. 159
apply only to entities that elect the fair value option. However, the
amendment to SFAS No. 115 "Accounting for Certain Investments in Debt and
Equity Securities" applies to all entities with available-for-sale and
trading securities. SFAS No. 159 is effective as of the beginning of an
entity's first fiscal year that begins after November 15, 2007. Early
adoption is permitted as of the beginning of a fiscal year that begins on or
before November 15, 2007, provided the entity also elects to apply the
provision of SFAS No. 157, "Fair Value Measurements". The adoption of this
statement is not expected to have a material effect on the Company's
financial statements.
In December 2007, the FASB issued Statement No. 14 (revised 2007), Business
Combinations ("Statement 141 (R)". Statement 141 (R) changes the accounting
for and reporting of business combination trasnactions. Statement 141 (R) is
effective for fiscal years beginning after December 15, 2008. The adoption
of this statement is not expected to have a material effect on the Company's
finacial statements.
In December 2007, the FASB issued Statement No. 160, Accounting and Reporting
for Noncontrolling Interests in Consolidated Financial Statement, an
amendment of ARB No. 51 ("Statement 160"). Statement 160 clarifies the
classification of noncontrolling interests in consolidated statements of
financial position and the accounting for and the reporting of transaction
between the reporting entity and holders of such noncontrolling interest.
Statement 160 is effective for the first annual reporting period beginning
after December 15, 2008. The adoption of this statement is not expected to
have a material effect on the Company's financial statements.
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities", an amendment of SFAS No. 133. SFAS 161
applies to all derivative instruments and non-derivative instruments that are
designated and qualify as hedging instruments pursuant to paragraphs 37 and
42 of SFAS 133 and related hedged items accounted for under SFAS 133. SFAS
161 requires entities to provide greater transparency through additional
disclosures about how and why an entity uses derivative instruments, how
derivative instruments and related hedged items are accounted for under SFAS
133 and its related interpretations, and how derivative instruments and
related hedged items affect an entity's financial position, results of
operations, and cash flows. SFAS 161 is effective as of the beginning of an
entity's first fiscal year that begins after November 15, 2008. The Company
does not expect SFAS 161 to have a material impact on its results of
operations or financial position.
In May 2008, the FASB issued SFAS No. 162, "The Hierarchy of Generally
Accepted Accounting Principles." SFAS 162 will provide framework for
selecting accounting principles to be used in preparing financial statements
that are presented in conformity with U.S. generally accepted accounting
principles (GAAP) for nongovernmental entities. SFAS 162 will be effective 60
days following the Securities and Exchange Commission's approval of the
Public Company Accounting Oversight Board (PCAOB) amendments to AU Section
411. The Company does not expect the adoption of SFAS 162 will have a
material impact on its financial condition or results of operation.
3 .PROMISSORY NOTE RECEIVABLE - RELATED PARTY
The promissory note receivable pays monthly interest only of 2/3% per month
and carries an effective annual interest rate of 8.30%. The capital of
$80,000 is payable upon demand and is due from JPI Project Management Inc.,
a related company. JPI is owned solely by the President's spouse. Payment is
due on the 15th of the following month and the first payment was due November
15, 2006. The first three monthly payments from JPI were made in advance on
November 8, 2006. The subsequent three monthly payments were made on January
24, 2007 through a payment on behalf of BMI by JPI.
On May 15, 2007 a demand of $15,000 was made on the original $140,000 note,
reducing it to its ending June 30, 2007 balance of $125,000. The $15,000
payment was made on behalf of BMI by JPI to reduce the shareholder's loan
account. Interest payments for April, May, and June were also made through a
payment on behalf of BMI by JPI to reduce the outstanding shareholder's loan.
On July 31 a demand of $15,000 was made on the remaining $125,000 note,
reducing it to its ending September 30, 2007 balance of $110,000. The $15,000
payment was made on behalf of BMI by JPI to reduce the shareholder's loan
account. Interest payments for July, August, and September were also made
through a payment on behalf of BMI by JPI to reduce the outstanding
shareholder's loan.
On October 1, 2007 a demand of $10,000 was made on the remaining $110,000.
The $10,000 payment was made on behalf of BMI by JPI to reduce the
shareholder's loan account. Interest payments for October and November
were also made through a payment on behalf of BM by JPI to reduce
the outstanding shareholder's loan.
On December 31, 2007 a demand of $10,000 was made on the remaining $100,000.
The $10,000 payment was made on behalf of BMI by JPI to reduce the
shareholder's loan account.
On March 31, 2008 a demand of $10,000 was made on the remaining $90,000. The
$10,000 payment was made on behalf of BMI by JPI to reduce the shareholder's
loan account.
On June 30, 2008 a demand of $40,000 was made on the remaining $80,000. The
$40,000 payment was made on behalf of BMI by JPI to reduce the shareholder's
loan account. Interest payments for April to June 2008 were also made on
behalf of BMI by JPI to reduce the shareholder's loan account.
4.Stockholders' Equity:
Common Stock Offerings:
On June 7, 2006, the Company completed a private placement
offering of 7,600,000 common shares to its officers and directors
for $76,000.
On September 30, 2006, the Company completed a private placement
offering of 6,450,000 to its remaining founders for $66,676.
All subscribers and current shareholders as of March 31, 2008 are
founders of Border Management, Inc.
5. RELATED PARTY TRANSACTIONS
(a)On September 29, 2006, the Company advanced $140,000 to a company
controlled by the wife of the Company president as detailed in Note
3 above.
(b)Included in accounts payable and accrued liabilities is $326 owing
to the president of the Company.
(c)On April 1, 2007, a management agreement was entered into with JPI and
all management fees (2008 - $24,000; 2007 -$17,441; 2006 - Nil)
relate to this agreement.
(d)Rental charges are paid on a month-to-month basis to JPI (2008 -$4,875;
2007 - $4,405; 2006 - Nil).
(e) Professional fees include amounts attributed to S N Ventures Inc.(2008
- -$9,500; 2007 - $13,518.46; 2006 - Nil), a company controlled by the
Treasurer.
6.INCOME TAXES
- ----------------------------------------------------------------------------
Deferred tax assets and liabilities:
- ----------------------------------------------------------------------------
Deferred tax assets: June 30,2008
Operating loss carry-forwards $ 36,949
Valuation allowance (36,949)
- ----------------------------------------------------------------------------
Net Deferred tax asset $ -
============================================================================
Management believes that it is not more likely than not that it will create
sufficient taxable income sufficient to realize its deferred tax assets. It
is reasonably possible these estimates could change due to future income and
the timing and manner of the reversal of deferred tax liabilities. Due to its
losses, the Company has no income tax expense.
The Company has computed its 2007 operating loss carry-forwards for
income tax purposes to be $60,120.
.F-5.
Item 2 MANAGEMENT'S DISCUSSION AND ANALYSIS / PLAN OF OPERATION
The following discussion should be read in conjunction with our financial
statements and attached notes. This discussion may contain forward-looking
statements that could involve risks and uncertainties.
Forward-looking Statements:
The statements contained in this 10-QSB that are not historical fact are
"forward-looking statements," which can be identified by the use of
forward-looking terminology such as "believes," "expects," "may," "should,"
or "anticipates," the negatives thereof or other variations thereon or
comparable terminology, and include statements as to the intent, belief or
our current expectations with respect to the future operations, performance
or position. These forward-looking statements are estimates and predictions.
We cannot assure you that the future results indicated, whether expressed or
implied, will be achieved. While sometimes presented with numerical
specificity, these forward-looking statements are based upon a variety of
assumptions relating to our business, which, although currently considered
reasonable by us, may not be realized. Because of the number and range of the
assumptions underlying our forward-looking statements, many of which are
subject to significant uncertainties and contingencies beyond our reasonable
control, some of the assumptions inevitably will not materialize and
unanticipated events and circumstances may occur subsequent to the date of
this 10-QSB. These forward-looking statements are based on current
information and expectation and we assume no obligation to update them at any
stage.
Therefore, our actual experience and results achieved during the period
covered by any particular forward-looking statement may differ substantially
from those anticipated. Consequently, the inclusion of forward-looking
statements should not be regarded as a representation by us or any other
person that these estimates will be realized, and actual results may vary
materially. We cannot assure that any of these expectations will be realized
or that any of the forward-looking statements contained herein will prove to
be accurate.
Description of Business:
Border Management was formed to offer a "one stop" management and consulting
service to corporations and individuals wanting to commence business
operations in Canada. We have a mature base of consultants that we can draw
on to assist our Directors in providing services to our clients. We are
therefore able to provide advice directly or through a sound base of
business, engineering, legal, and other professionals relating to a wide
variety of issues.
.6.
Border Management was incorporated on June 7, 2006 and has commenced
operations. We have invested $80,000 of the proceeds from our original
share issue in an interest-bearing demand note issued by JPI Project
ManagementInc. JPI Project Management Inc. is a privately held British
Columbia non reporting company owned by Mrs. Jillian Williams, the wife of
our company's Director Evan Williams.
Critical Accounting Policies:
Our financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America, which require
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial statements, the
disclosure of contingent assets and liabilities, and the reported amounts of
revenues and expenses during the reporting period. Actual results could
differ from those estimates. The critical accounting policies that affect our
more significant estimates and assumptions used in the preparation of our
financial statements are reviewed and any required adjustments are recorded
on a monthly basis.
Results of Operations:
Substantial positive and negative fluctuations can occur in our business due
to a variety of factors, including variations in the economy, and the
abilities to raise capital. As a result, net income and revenues in a
particular period may not be representative of full year results and may vary
significantly in this early stage of our operations. In addition results of
operations, may vary in the future, and will be materially affected by many
factors of a national and international nature, including economic and market
conditions, currency values, inflation, the availability of capital, the
level of volatility of interest rates, the valuation of security positions
and investments and legislative and regulatory developments. Our results of
operations also may be materially affected by competitive factors and our
ability to attract and retain highly skilled individuals.
Period Ended June 30, 2008:
Our continued operations have not generated service revenues to date. Much of
our preliminary organization has been completed including establishing our
office premises and accounting system. During the last three months our
focus has been on continued discussions with our business contscts.
Should we be able to develop a client base, we anticipate our services will
be rendered to our clients on both an ongoing basis as well as a one time
and project consulting basis. If engaged on a project or one time basis, we
will recognize revenues at the time that all services have been substantially
completed. At the discretion of our management, we may accept restricted
equity securities in certain entities as payments for services provided to
these entities. Some of these entities may be newly formed, have no operating
history, and the market for such securities would be very limited. In the
event that there is a public market for the securities, we will record the
securities at a discount from the market price, since (i) the securities are
restricted and (ii) there is no assurance that the value of these securities
will be realized. The amount of shares we will accept in lieu of a portion of
a client's cash payment is situation specific.
Comparison of Three Month Periods Ended June 30, 2008, and June 30, 2007
The major changes in specific accounts in our operating statement for the
three month period ended June 30, 2008 as compared to the previous three
month period ended June 30, 2007 are as follows:
Revenue
Revenue for the three month period ended June 30, 2008 was $1,600 and was
derived from interest income only. Previous year's revenue for the three
months ended June 30, 2007 was also from interest only and was $2,641.
Expenses
Management fees of $18,000 were incurred during the three months ended June
30, 2008 pursuant to an April 1, 2007 agreement with JPI Project Management
Inc. $5,981 was paid for the three months ended June 30, 2007. Rent of $3,000
was to paid to JPI during the three month period ended June 30, 2008. $1,495
was paid during the three months ended June 30, 2007.
The net loss for the three month period ended June 30, 2008 was $32,843 or
$0.00233 per share compared to a loss of $18,625 for the three months ended
June 30, 2008 an increase of $14,218.
Comparison of Six Month Periods Ended June 30, 2008, and June 30, 2007
The major changes in specific accounts in our operating statement for the
six-month period ended June 30, 2008 as compared to the previous six
month period ended June 30, 2007 are as follows:
Revenue
Revenue for the six month period ended June 30, 2008 was $3,400 and was
derived from interest income only. Previous year's revenue for the six
months ended June 30, 2007 was also from interest only and was $5,441.
Expenses
Management fees of $24,000 were incurred during the six months ended June 30,
2008 pursuant to an April 1, 2007 agreement with JPI Project Management
Inc. $5,981 was paid for the six months ended June 30, 2007. Professional
fees of $17,780 were incurred for six month period ended June 30, 2008
as compared to $14,665 for the six months ended June 30, 2007.
Included in professional fees to June 30, 2008 were fees of $9,500 paid to
S N Ventures Inc., a company owned by the Treasurer. Rent of $4,875 was to
paid to JPI during the six-month period ended June 30, 2008. $1,495 was paid
during the six months ended June 30, 2007.
The net loss for the six month period ended June 30, 2008 was $48,562 or
$0.00345 per share compared to a loss of $22,113 for the six months ended
June 30, 2007 an increase of $26,449.
.7.
Off-Balance Sheet Arrangements:
We do not have any off balance sheet arrangements that are reasonably likely
to have a current or future effect on our financial condition, revenues,
results of operations, liquidity or capital expenditures.
Contractual Obligations
We have no Contractual obligations.
Liquidity Management:
Liquidity is the ability to meet current and future financial obligations
of a short-term nature. Our primary sources of funds will consist of
management and consulting revenues. During the next twelve months, we will
continue our research into our specific industry, management systems, and
marketing. We have also commenced operations with the creation of our
website and the marketing of our services. Our current short-term investment
is not intended to be the only source of our income. Should there be a delay
beyond one year in producing revenues for our services, we could be required
to issue additional share capital or secure debt financing. Depending on
market conditions, we may be required to pay high rates of interest on such
loans. We believe, however, we have enough cash available to satisfy our
requirements during the next twelve months.
As of June 30, 2008, the Company's balance sheet reflects total current
assets of $45,363 and total current liabilities of $11,369. The Company has
a deficit accumulated in the development stage of $108,682. As stated, we
believe we will have sufficient assets or capital resources to pay the
Company's on-going expenses while it is seeking out business opportunities.
If not, however, the Company has no agreement in place with its shareholders
or other persons to pay expenses on its behalf. Individual shareholders are
under no obligation to pay such expenses.
Operational Matters:
Over the next twelve months, we have enough cash to proceed with limited
research, recruitment, and marketing plans.
Our industry research will be ongoing. We will monitor what services our
competitors offer along with their strengths, weaknesses, and fees. We will
also monitor changes in Federal and Provincial legislation, which is likely
to affect our clients and our ability to deliver professional service.
Our recruiting efforts will be to attract and contract with professionals
such as engineers, lawyers, and accountants outside of our company. We will
also recruit prospective employees and professionals to work within our
company. Employees, however, will only be hired as workload demands. As
such we cannot say at this time how many, if any, will be hired during the
next twelve months.
Our marketing objective will be to solicit clients outside and to a lesser
extent inside of Canada. Our marketing will include the use of newspapers
and internet. We will consider trade journals, various print mediums such as
brochures, and some travel to meet prospective clients. We will change our
website as is necessary.
Capital Resources and Primary Investing Activities: We do not anticipate any
major investing activities in the next twelve months. Neither do we expect
any major purchases or sales of plant and equipment.
.8.
In addition to the other information set forth in this report, you should
carefully consider the factors discussed in Part II, "Item 6. Risk Factors"
in our Annual Report on Form 10-KSB for the period ended December 31, 2007,
which could materially affect our business, financial condition or future
results. The risks described in our Annual Report on Form 10-KSB are not
the only risks that we face. Additional risks and uncertainties not
currently known to us or that we currently deem to be immaterial also may
materially affect our business, financial condition and/or operating results.
.9.
ITEM 3.QUANTITATIVE AND QUALITIVE DISCLOSURE ABOUT MARKET RISKS
Our Company's financial instruments are not materially impacted by changes in
interest rates.
ITEM 4. CONTROLS AND PROCEDURES
Management's Report on Internal Control over Financial Reporting. Our
Internal control over financial reporting is a process that, under the
supervision of and with the participation of our management, including
our Chief Executive Officer and Chief Financial Officer, was designed to
provide reasonable assurances regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles.
Our internal control over financial reporting includes those policies
and procedures that (i) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect our transactions and
dispositions of our assets; (ii) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting
principles, and that our receipts and expenditures are being made only
in accordance with authorizations of our management and our trustees;
and (iii) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of our
assets that could have a material effect on our financial statements.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the
risk that our controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
As management, it is our responsibility to establish and maintain
adequate internal control over financial reporting. As of June 30,
2008, under the supervision and with the participation of our
management, including our Chief Executive Officer, we evaluated the
effectiveness of our internal control over financial reporting using
criteria established in Internal Control - Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway Commission
("COSO"). Based on our evaluation, we concluded that the Company
maintained effective internal control over financial reporting as of
June 30, 2008, based on criteria established in the Internal Control -
Integrated Framework issued by the COSO.
This quarterly report does not include an attestation report of the
company's registered public accounting firm regarding internal control
over financial reporting. Management's report was not subject to
attestation by the company's registered public accounting firm pursuant
to temporary rules of the Securities and Exchange Commission that
permit the company to provide only management's report in this
quarterly report.
Evaluation of disclosure controls and procedures. As of June 30, 2008,
the Company's chief executive officer and chief financial officer
conducted an evaluation regarding the effectiveness of the Company's
disclosure controls and procedures (as defined in Rules 13a-15(e) or
15d-15(e) under the Exchange Act. Based upon the evaluation of these
controls and procedures, our chief executive officer and chief
financial officer concluded that our disclosure controls and procedures
were effective as of the date of filing this annual report applicable
for the period covered by this report.
Changes in internal controls. During the period covered by this report,
no changes occurred in our internal control over financial reporting
that materially affected, or is reasonably likely to materially affect,
our internal control over financial reporting.
.10.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. UNREGISTERED SALES OF SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULT UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit
31.1 Certification of the Chief Executive Officer pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002.
31.2 Certification of the Chief Financial Officer pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002.
32.1 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(b) Reports of Form 8-K
No reports were filed on Form 8-K during the second quarter of 2008.
SIGNATURES
In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated:
SIGNATURE TITLE DATE
/s/ Evan Williams Chief Executive Officer, August 14, 2008
- ----------------- President, Director
Evan Williams
/s/ Solomon Nordine Chief Financial Officer, August 14, 2008
- ------------------- Treasurer, Director
Solomon Nordine
.11.