ITEM 2 - MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Safe Harbor Statement
This report on Form 10-Q contains certain forward-looking statements. All statements other than statements of historical fact are forward-looking statements for purposes of these provisions, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statement of assumptions underlying any of the foregoing. Such forward-looking statements are subject to inherent risks and uncertainties, and actual results could differ materially from those anticipated by the forward-looking statements.
These forward-looking statements involve significant risks and uncertainties, including, but not limited to, the following: competition, promotional costs, and risk of declining revenues. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of a number of factors. These forward-looking statements are made as of the date of this filing, and we assume no obligation to update such forward-looking statements. The following discusses our financial condition and results of operations based upon our financial statements which have been prepared in conformity with accounting principles generally accepted in the United States. It should be read in conjunction with our financial statements and the notes thereto included elsewhere herein.
The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this Form 10-Q. The discussions of results, causes and trends should not be construed to imply any conclusion that these results or trends will necessarily continue into the future.
Overview
We were incorporated pursuant to the laws of the State of Nevada on August 26, 2011. We are a startup company and have not yet realized any revenues. Our efforts, to date, have focused primarily on the development and implementation of our business plan.
Liquidity and Capital Resources
As of May 31, 2013, we had cash and cash equivalents of $477 and a working capital deficit of $80,565. As of May 31, 2013 our accumulated deficit was $129,965. As of May 31, 2013, we have not yet earned any revenues.
We used net cash of $33,549 from operating activities for the six months ended May 31, 2013 compared to using net cash of $11,608 in operating activities for the same period in 2012. We did not use any money in investing activities for the six months ended May 31, 2013. We received net cash of $29,900 from financing activities for the six months ended May 31, 2013 compared to receiving net cash of $1,544 in financing activities for the same period in 2012.
These financial statements have been prepared on the assumption that we are a going concern, meaning we will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. Different bases of measurement may be appropriate when a company is not expected to continue operations for the foreseeable future. Our continuation as a going concern is dependent upon our ability to attain profitable operations and generate funds therefrom, and/or raise equity capital or borrowings sufficient to meet current and future obligations. Management plans to raise equity financings over the next twelve months to finance operations. There is no guarantee that we will be able to complete any of these objectives. We have incurred losses from operations since inception and at May 31, 2013, have a working capital deficiency and an accumulated deficit that creates substantial doubt about our ability to continue as a going concern.
Results of Operations for the three months ended May 31, 2013 compared to the three months ended May 31, 2012 and from inception to May 31, 2013.
No Revenues
Since our inception on August 26, 2011 to May 31, 2013, we have not yet earned any revenues. As of May 31, 2013, we have an accumulated deficit of $129,965. At this time, our ability to generate any significant revenues continues to be uncertain. Our financial statements contain an additional explanatory paragraph in Note 6, which identifies issues that raise substantial doubt about our ability to continue as a going concern. Our financial statements do not include any adjustment that might result from the outcome of this uncertainty.
Net Income/Loss
We incurred a net loss of $8,769 for the three months ended May 31, 2013, compared to a net loss of $8,791 for the same period in 2012. From inception on August 26, 2011 to May 31, 2013, we have incurred a net loss of $129,965. Our basic and diluted loss per share was $0.00 for the three months ended May 31, 2013, and $0.00 for the same period in 2012.
Expenses
Our total operating expenses decreased slightly from $8,791 to $8,769 for the three months ended May 31, 2013 compared to the same period in 2012. Our expenses were comprised of general and administrative of $3,869 ($1,605 in 2012), professional fees of $4,500 ($2,186 in 2012) and transfer agent fees of $400 ($5,000 in 2012). Since our inception on August 26, 2011 to May 31, 2013, we have incurred total operating expenses of $129,965.
Results of Operations for the six months ended May 31, 2013 compared to the six months ended May 31, 2012
No Revenues
We did not earn any revenues during the six months ending on May 31, 2013, nor did we earn any revenues during the same period in 2012. At this time, our ability to generate any significant revenues continues to be uncertain.
Net Loss
We incurred a net loss of $32,305 for the six months ended May 31, 2013, compared with a loss of $21,294 in the prior year. Our basic and diluted loss per share was $0.01 for the six months ended May 31, 2013 and $0.00 for the six months ended May 31, 2012.
Expenses
Our total operating expenses were $32,305 for the six months ended May 31, 2013 compared to $21,294 for the same period in 2012. Our expenses were comprised of general and administrative of $6,408 ($1,608 in 2012), professional fees of $12,824 ($9,686 in 2012) and transfer agent fees of $13,073 ($10,000 in 2012).
Inflation
The amounts presented in the financial statements do not provide for the effect of inflation on our operations or financial position. The net operating losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments.
Off-Balance Sheet Arrangements
As of May 31, 2013, we had no off-balance sheet transactions that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.