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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
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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 September 30, 2008
OR
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______
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Commission file number 000-53266
MONSTER OFFERS
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(Exact name of registrant as specified in its charter)
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Nevada 26-1548306
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
8937 Quintessa Cove Street, Las Vegas, NV 89148
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(Address of principal executive offices)(Zip Code)
Issuer's telephone number, including area code: (702) 575-4816
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 |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
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 November 13, 2008, the registrant's outstanding common stock consisted
of 19,560,000 shares, $0.001 par value. Authorized - 75,000,000 shares.
Table of Contents
Monster Offers
Index to Form 10-Q
For the Quarterly Period Ended September 30, 2008
Part I. Financial Information
Page
Item 1. Financial Statements
Balance Sheets as of September 30, 2008 and December 31, 2008 3
Statements of Income for the three months
ended September 30, 2008 and 2007 4
Statements of Cash Flows for the three months
ended September 30, 2008 and 2007 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 14
Item 4. Controls and Procedures 15
Part II Other Information
Item 1. Legal Proceedings 16
Item 1A. Risk Factors 16
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 16
Item 3 -- Defaults Upon Senior Securities 16
Item 4 -- Submission of Matters to a Vote of Security Holders 16
Item 5 -- Other Information 17
Item 6. Exhibits 17
Signatures 18
2
Part I. Financial Information
Item 1. Financial Statements
Monster Offers
(Formerly Tropical PC Acquisition Corporation)
(A Development Stage Company)
Balance Sheets
Balance Sheets
September 30,
2008 December 31,
(Unaudited) 2007
------------- -------------
ASSETS
Current assets:
Cash and equivalents $ 33,001 $ -
Funds in escrow - 45,000
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Total current assets 33,001 45,000
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TOTAL ASSETS $ 33,001 $ 45,000
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts Payable 7,110 5,610
------------- -------------
Total current liabilities 7,110 5,610
Stockholders' equity:
Common stock, $0.001 par value, 75,000,000
shares authorized, 19,560,000, 19,560,000
issued and outstanding as of 9/30/08 and
12/31/07, respectively 19,560 19,560
Additional paid-in capital 26,425 26,425
(Deficit) accumulated during development
stage (20,094) (6,595)
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Total stockholders' equity 25,891 39,390
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 33,001 $ 45,000
============= =============
The accompanying notes are an integral part of these financial statements.
3
Monster Offers
(Formerly Tropical PC Acquisition Corporation)
(A Development Stage Company)
Statements of Operations
(Unaudited)
Statements of Operations
February 23,
For the three months For the nine months 2007
ending ending (inception)
---------------------- ---------------------- to
Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2008 2007 2008 2007 2008
---------- ---------- ---------- ---------- ----------
Revenue $ 28,889 $ - $ 49,513 $ - $ 49,513
---------- ---------- ---------- ---------- ----------
Expenses:
Organizational Costs - - - 400 985
Expenses of Spin Off - - - - 5,610
General &
Administrative 12,679 - 63,012 - 63,012
---------- ---------- ---------- ---------- ----------
Total expenses 12,679 - 63,012 400 69,607
---------- ---------- ---------- ---------- ----------
Net income (loss)
before income taxes $ 16,210 $ - $ (13,499) $ (400) $ (20,094)
Income tax expense - - - - -
---------- ---------- ---------- ---------- ----------
Net income (loss) $ 16,210 $ - $ (13,499) $ (400) $ (20,094)
========== ========== ========== ========== ==========
Basic and Diluted
Weighted average
number of
common shares
outstanding 19,560,000 19,560,000 19,560,000 19,560,000
========== ========== ========== ==========
Net (loss) per
share $ 0.00 $ 0.00 $ (0.00) $ (0.00)
========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements.
4
Monster Offers
(Formerly Tropical PC Acquisition Corporation)
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
Statements of Cash Flows
For the nine months ended February 23, 2007
---------------------------------- (inception) to
September 30, September 30, September 30,
2008 2007 2008
---------------- ---------------- ----------------
Operating activities:
Net (loss) $ (13,499) $ (400) $ (20,094)
Changes in assets and
liabilities:
Increase in
Accounts payable 1,500 - 7,110
---------------- ---------------- ----------------
Net cash (used) by
operating activities (11,999) (400) (12,984)
Financing activities:
Issuance of common stock - - 45,000
Donated capital - 400 985
---------------- ---------------- ----------------
Net cash provided by
financing activities - 400 45,985
Net increase (decrease)
in cash (11,999) - 33,001
Cash - beginning 45,000 - -
---------------- ---------------- ----------------
Cash - ending $ 33,001 $ - $ 33,001
================ ================ ================
Supplemental disclosures:
Interest paid $ - $ - $ -
================ ================ ================
Income taxes paid $ - $ - $ -
================ ================ ================
Non-cash transactions $ - $ - $ -
================ ================ ================
The accompanying notes are an integral part of these financial statements.
5
Monster Offers
(Formerly Tropical PC Acquisition Corporation)
(A Development Stage Company)
Notes
Note 1 - Basis of Presentation
The interim financial statements included herein, presented in accordance
with United States generally accepted accounting principles and stated
in US dollars, have been prepared by the Company, without audit,
pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are adequate to
make the information presented not misleading.
These statements reflect all adjustments, consisting of normal recurring
adjustments, which, in the opinion of management, are necessary for fair
presentation of the information contained therein. It is suggested that these
interim financial statements be read in conjunction with the financial
statements of the Company for the year ended December 31, 2007 and notes
thereto included in the Company's S-1/A registration statement. The Company
follows the same accounting policies in the preparation of interim reports.
Results of operations for the interim periods are not indicative of annual
results.
Note 2 - Going concern
These consolidated 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 at September 30, 2008, the
Company has recognized revenues of $49,513 and has accumulated operating losses
of approximately $20,094 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 expending 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
Monster Offers
(Formerly Tropical PC Acquisition Corporation)
(A Development Stage Company)
Notes
Note 3 - 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.
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
Registration Statement for the fiscal year ended December 31, 2007.
8
Results of Operations
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Overview of Current Operations
- ------------------------------
Monster Offers ("the Company") was incorporated in the State of Nevada on
February 23, 2007, under the name Monster Offers Acquisition Company. On
December 11, 2007, the Company amended its Articles of Incorporation changing
its name to Monster Offers. The Company was originally incorporated as a
wholly owned subsidiary of Company Monster Offers, Inc., a Nevada corporation.
Monster Offers was incorporated September 22, 2004, and, at the time of spin
off was not listed on any exchange.
The Company specializes in utilizing technology based Internet media and
marketing to generate leads for businesses.
The Company's services include the development of advertising campaigns used
to market products and/or services online. The Company also designs and
hosts customized web pages.
The Company's website development is managed by its proprietary Lead Code
software platform. This technology platform allows the Company to acquire
marketing online leads in real-time. This platform generates detailed
reporting on website activity which allows management to analyze the
effectiveness of different marketing campaigns, advertisements and specific
promotions. This software tool helps management determine which campaigns
will perform at an acceptable level and which campaigns might achieve an
acceptable profit margin for Monster Offers.
Marketing Strategy
- ------------------
Monster Offers owns and operates a variety of Internet websites. The Company
generates traffic to its websites both internally and from third party Internet
advertising. The Company's Web properties and marketing activities are
designed to generate real-time response based marketing results.
The Company's Web websites generate a variety of transactional results
ranging from: (a) Web traffic; (b) inbound telemarketing calls;
(c) outbound telemarketing leads; (d) marketable profiled data lists of
consumers; (e) targeted response leads; and (f) completed applications for
products and services. Management utilizes a number of online marketing
channels to build its databases.
9
Email Marketing
- ---------------
The Company's websites are promoted through opt-in email marketing. In other
words, the emails ask people who search the internet to sign-up to receive
marketing messages. The Company currently markets to multiple consumer and
business databases.
Search Engine Marketing
- -----------------------
The Company utilizes search engine marketing to direct consumers to its
websites. Funds generated from the program will be placed in an open account
with each provider and are spent on a Cost-Per-Click auction basis. Google,
Yahoo, and Terra Lycos are the primary 3 search engine providers used.
Affiliate Marketing
- -------------------
The Company has just completed an affiliate destination where online publishers
can promote Monster Offers exclusive offers and promotions. The new system
allows publishers to choose, and manage a particular campaign. Publishers
are also provided with real-time commission tracking.
Sales Strategy
- --------------
The Company plans to sell its products and services to a network of
participating lead buyers and advertisers in various categories. Some of
these categories include the wireless industry, insurance industry, travel
industry, auto industry and mortgage industry.
Management also plans to deliver internet marketing leads to business buyers in
a lead auction format. This format allows clients to bid on qualified leads
as they are created. Monster Offers plans to deliver to the winning bidder
leads generated in real time. Management believes this is the best way to
derive the highest revenue per lead in the marketplace.
Software Development
- --------------------
Our sole officer is responsible for all Monster Offers' software development,
management, and upgrades. He creates all new client accounts and implements
lead delivery options based on customer needs. He is currently upgrading the
Lead Code platform to facilitate additional feature sets and scalability.
10
Competition
- -----------
The internet on-line marketing information industry is highly competitive.
Management believes that the ability to provide proprietary consumer and
business databases that provides real time data is a competitive advantage.
A number of competitors are active in specific aspects of our business. In
the area of business sales lead products, Monster Offer faces competition
primarily from Dun & Bradstreet, Acxiom, Experian, infoUSA , Equifax and
Harte-Hanks Data Technologies. These major competitors offer online leads
directly to the end customer and sell their online leads through reseller
networks.
The Company anticipates that the results of operations of a specific business
venture may not necessarily be indicative of the potential for future earnings,
which may be impacted by a change in marketing strategies, business expansion,
modifying product emphasis, changing or substantially augmenting management,
and other factors. Management will analyze all relevant factors and make a
determination based on a composite of available information, without reliance
on any single factor.
Results of Operations for the quarter ended September 30, 2008
- --------------------------------------------------------------
During the nine months ended September 30, 2008, the Company had a net loss of
$(13,499) versus a net loss of $(400) for the same period last year. During
the three months ended September 30, 2008, the Company had a net income of
$16,210 versus no net income for the same period last year, when the Company
was somewhat inactive. For the three months ending September 30, 2008, the
Company experienced general and administrative expenses of $12,679,
primarily accounting and legal fees. For the nine months ending
September 30, 2008, the Company's general and administrative expenses
were $63,012. Since the Company's inception, on February 23, 2007, the
Company experienced a net lost $(20,094).
11
Revenues
- --------
During the nine month period ended September 30, 2008, the Company generated
$49,513 in revenues and compared to no revenues for the same period last year,
when the Company was just beginning to develop its business plan. During the
three month period ended September 30, 2008, the Company generated $28,889 in
revenues. Since inception on February 23, 2007, the Company has generated
$49,513 in revenues.
Plan of Operation
- -----------------
Management does not believe that the Company will be able to generate
any significant profit during the coming year. Management believes
that general and administrative costs and well as building its infrastructure
will most likely curtail any significant profits.
Management believes the Company can sustain itself for the next twelve months.
Management has agreed to keep the Company funded at its own expense, without
seeking reimbursement for expenses paid. The Company's need for capital may
change dramatically if it can generate additional revenues from its operations.
In the event the Company requires additional funds, the Company will have to
seek loans or equity placements to cover such cash needs. There are no
assurances additional capital will be available to the Company on acceptable
terms.
Going Concern
- -------------
Going Concern - The Company experienced operating losses, of $(20,094) since
its inception on February 23, 2007 through the period ended September 30, 2008.
The financial statements have been prepared assuming the Company will continue
to operate as a going concern which contemplates the realization of assets and
the settlement of liabilities in the normal course of business. No adjustment
has been made to the recorded amount of assets or the recorded amount or
classification of liabilities which would be required if the Company were
unable to continue its operations. (See Financial Footnote 2)
Summary of any product research and development that we will perform for the
term of our plan of operation.
- -----------------------------------------------------------------------------
We do not anticipate performing any additional significant product research
and development under our current plan of operation.
12
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.
Significant changes in the number of employees.
- -----------------------------------------------
As of September 30, 2008, we did not have any employees. We are dependent upon
our sole officer and 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
- -------------------------------
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.
As a result of our the Company's current limited available cash, no officer
or director received compensation through the nine months ended September 30,
2008. No officer or director received stock options or other non-cash
compensation since the Company's inception through September 30, 2008. The
Company has no employment agreements in place with its officers. Nor does
the Company owe its officers any accrued compensation, as the Officers agreed
to work for company at no cost, until the company can become profitable on
a consistent Quarter-to-Quarter basis.
13
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
- ------------------------
In December 2007, the FASB issued SFAS No. 160, "Non-controlling Interests in
Consolidated Financial Statements". This statement amends ARB 51 to establish
accounting and reporting standards for the non-controlling (minority) interest
in a subsidiary and for the de-consolidation of a subsidiary. It clarifies
that a non-controlling interest in a subsidiary is equity in the consolidated
financial statements. SFAS No. 160 is effective for fiscal years and interim
periods beginning after December 15, 2008. The adoption of SFAS 160 is not
expected to have a material impact on the Company's financial position,
results of operation or cash flows.
As of January 1, 2008 we adopted SFAS No. 159, "The Fair Value Option for
Financial Assets and Financial Liabilities" ("SFAS No. 159"). SFAS No. 159
allows the company to choose to measure many financial assets and financial
liabilities at fair value. Unrealized gains and losses on items for which the
fair value option has been elected are reported in earnings. The adoption of
SFAS 159 has not had a material impact on our financial position, results of
operation or cash flows.
As of January 1, 2008 we adopted SFAS No. 157, "Fair Value Measurements"
("SFAS No. 157"). SFAS No. 157 defines fair value and provides guidance for
measuring and disclosing fair value. The adoption of SFAS 157 has not had a
material impact on our financial position, results of operation or cash flows.
Item 3. Quantitative and Qualitative Disclosures about Market Risk.
Not applicable.
14
Item 4T. Controls and Procedures
(a) Our management supervised and participated in an evaluation of the
effectiveness of the design and operation of our disclosure controls and
procedures as of September 30, 2008. Based on that evaluation, our
management, including our principal executive and financial officer,
concluded that our disclosure controls and procedures were effective to
ensure that information required to be disclosed in the reports filed or
submitted by the Company under the Securities Exchange Act of 1934, as
amended, is recorded, processed, summarized and communicated to our
management, including our principle executive and financial officer, as
appropriate, to allow timely decisions regarding required disclosure within
the time periods specified in the SEC's rules and forms.
Internal control systems, no matter how well designed, have inherent
limitations. Therefore, even those systems that are determined to be
effective by provide only reasonable assurance with respect to financial
statement preparation and presentation. Also, projections of any evaluation
of effectiveness to future periods are subject to risk that controls may
become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
(b) There were no changes in our internal control over financial reporting
during the period ended September 30, 2008, that materially affected, or are
reasonably likely to materially affect, our internal controls over financial
reporting.
15
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 Registration
Statement on Form SB-2 for the fiscal year ended December 31, 2007 and the
discussion in Item 1, above, under "Financial Condition - Liquidity and Capital
resources.
Item 2 -- Unregistered Sales of Equity Securities and Use of Proceeds
On December 11, 2007, the Company issued 11,250,000 shares of its common
stock to its founder for $11,250 in cash. Founder then transferred these
shares to an outside party for the same price on December 31, 2007.
The Company was a subsidiary of Tropical PC, Inc. On December 31, 2007,
the record shareholders of Tropical PC, Inc. received a spin off dividend of
one (1) common share, par value $0.001, of Monster Offers common stock for
every share of Tropical PC, Inc. common stock owned for a total 810,000
common shares issued.
In December, 2007, the Company purchased 600,000 spin-off shares from
Tropical PC's original founder at par value. These shares were returned to
the Corporate Treasury.
On December 31, 2007, the Company issued 7,500,000 shares of its common stock
pursuant to a Regulation D 506 offering for $33,750 in cash.
As of December 31, 2007, Monster Offers has 19,560,000 of its common
stock issued and outstanding.
Item 3 -- Defaults Upon Senior Securities
None.
Item 4 -- Submission of Matters to a Vote of Security Holders
None.
16
Item 5 -- Other Information
None.
Item 6 -- Exhibits
Filed Period Filing
Exhibit Exhibit Description herewith Form ending Exhibit date
- -------------------------------------------------------------------------------
3.1 Articles of Incorporation, SB-2 3.1 01/15/2008
as currently in effect
- -------------------------------------------------------------------------------
3.2 Bylaws SB-2 3.2 01/15/2008
as currently in effect
- -------------------------------------------------------------------------------
3.3 Amended Articles of SB-2 3.3 01/15/2008
Incorporation as currently
in effect.
- -------------------------------------------------------------------------------
31.1 Certification of President X
and Principal Financial
Officer, pursuant to Section
302 of the Sarbanes-Oxley
Act
- -------------------------------------------------------------------------------
31.2 Certification of President X
and Principal Financial
Officer, pursuant to Section
906 of the Sarbanes-Oxley
Act
- -------------------------------------------------------------------------------
17
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 hereunto duly authorized.
Monster Offers
------------------------
Registrant
By: /s/ Nate Kaup
------------------------------
Name: Nate Kaup
Title: President/CFO/Director
Dated: November 13, 2008
-----------------
18