The accompanying interim financial statements have
been prepared in accordance with the instructions to Form 10-Q. Therefore, they
do not include all information and footnotes necessary for a complete
presentation of financial position, results of operations, cash flows, and
stockholders’ equity in conformity with accounting principles generally
accepted in the United States of America. Except as disclosed herein, there has
been no material change in the information disclosed in the notes to the
financial statements included in the Company’s Registration Statement on
Form 10-12G for the year ended March 31, 2017. In the opinion of management,
all adjustments considered necessary for a fair presentation of the results of
operations and financial position have been included, and all such adjustments
are of a normal recurring nature. Operating results for the three months ended June
30, 2017 are not necessarily indicative of the results that can be expected for
the year ending March 31, 2018.
ETERNELLE SKINCARE PRODUCTS INC.
BALANCE SHEETS
(UNAUDITED)
|
|
June 30,
2017
|
|
|
March 31,
2017
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Website
|
|
$
|
16,000
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
16,000
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
37,230
|
|
|
$
|
37,230
|
|
Related party advances
|
|
|
46,366
|
|
|
|
13,263
|
|
Accrued compensation
|
|
|
221,192
|
|
|
|
221,192
|
|
Other accrued liabilities
|
|
|
10,000
|
|
|
|
10,000
|
|
Total Current Liabilities
|
|
|
314,788
|
|
|
|
281,685
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Deficit
|
|
|
|
|
|
|
|
|
Common stock: $0.001 par value; 675,000,000 shares authorized; 156,062,660 shares issued and outstanding
|
|
|
156,413
|
|
|
|
156,413
|
|
Additional paid-in capital
|
|
|
692,413
|
|
|
|
692,413
|
|
Accumulated deficit
|
|
|
(1,147,614
|
)
|
|
|
(1,130,511
|
)
|
Total Stockholders’ Deficit
|
|
|
(298,788
|
)
|
|
|
(281,685
|
)
|
Total Liabilities and Stockholders’ Deficit
|
|
$
|
16,000
|
|
|
$
|
—
|
|
The accompanying notes are an integral part of these
unaudited financial statements.
2
ETERNELLE SKINCARE PRODUCTS INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
For the Three Months Ended
|
|
|
|
June 30,
|
|
|
|
2017
|
|
|
2016
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
General and administrative
|
|
$
|
17,103
|
|
|
$
|
—
|
|
Total Operating Expenses
|
|
|
17,103
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Operating
Loss
|
|
|
(17,103
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(17,103
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted Loss per Common Share
|
|
$
|
—
|
|
|
$
|
—
|
|
Weighted
Average Number of Common Shares Outstanding
|
|
|
156,062,660
|
|
|
|
156,062,660
|
|
The accompanying notes are an integral part of these unaudited
financial statements.
3
ETERNELLE SKINCARE PRODUCTS INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
For the Three
Months Ended
|
|
|
|
June 30,
|
|
|
|
2017
|
|
|
2016
|
|
Cash Flows
From Operating Activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(17,103
|
)
|
|
$
|
—
|
|
Net cash used for operating activities
|
|
|
(17,103
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Cash Flows
From Investing Activities:
|
|
|
|
|
|
|
|
|
Website development
|
|
|
(16,000
|
)
|
|
|
—
|
|
Net cash used for investing activities
|
|
|
(16,000
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Cash Flows
From Financing Activities:
|
|
|
|
|
|
|
|
|
Related party advances
|
|
|
33,103
|
|
|
|
—
|
|
Net cash provided by financing activities
|
|
|
33,103
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Change in cash and equivalents
|
|
|
—
|
|
|
|
—
|
|
Cash and cash equivalents, beginning of period
|
|
|
—
|
|
|
|
—
|
|
Cash and cash equivalents, end of period
|
|
$
|
—
|
|
|
$
|
—
|
|
The accompanying notes are an integral part of these
unaudited financial statements.
4
ETERNELLE SKINCARE PRODUCTS INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 2017 AND 2016
(Unaudited)
NOTE 1 – NATURE OF OPERATIONS
Eternelle Skincare Products Inc. (the
“Company” or “Eternelle”) was incorporated in the State
of Nevada, United States of America, on November 18, 2005.
The Company’s plan is to build a
state-of-the-art online store with a direct marketing and sales funnel aimed at
targeted channels, using internet, social media, and content marketing. The
skincare space is well-suited for direct-to-consumer sales, and there are
several channels that Eternelle will leverage to introduce its unique branding
and creative advertising assets. In addition to basic social media strategies,
management intends to engage top influencers in the skincare space.
The Company is currently negotiating with the intent
to engage a cosmetic and skincare manufacturer to produce peptide-based
proprietary products. Given the complexity of global shipping, the Company
plans to partner with a name brand distributor to deliver its products.
NOTE 2
– BASIS OF PRESENTATION OF INTERIM FINANCIAL STATEMENTS
The Company prepares its financial statements in
accordance with accounting principles generally accepted in the United States
of America. The accompanying interim unaudited financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information in accordance with the instructions to Form 10-Q
and Article 8 of Regulation S-X. In our opinion, all adjustments (consisting of
normal recurring adjustments) considered necessary for a fair presentation have
been included.
Operating results for the three months ended June 30,
2017 are not necessarily indicative of the results that may be expected for the
year ending March 31, 2018. Notes to the unaudited interim financial statements
that would substantially duplicate the disclosures contained in the audited
financial statements for the year ended March 31, 2017 have been omitted. This
report should be read in conjunction with the audited financial statements and
the footnotes thereto for the fiscal year ended March 31, 2017 included within
the Company’s Form 10-12G as filed with the Securities and Exchange
Commission.
NOTE 3 – GOING CONCERN
These financial statements have been prepared in
conformity with accounting principles generally accepted in the United States
of America (“U.S. GAAP”), which contemplate the continuation of the
Company as a going concern. The Company has incurred losses from operations and
had an accumulated deficit of $1,147,614 as of June 30, 2017. The Company also
has excess liabilities over assets of $298,788. These factors raise doubt about
the Company’s ability to continue as a going concern.
Management’s plans are to actively seek capital
to enable the Company to add new products and/or services to ultimately achieve
profitability. However, management cannot provide assurance that they can raise
sufficient capital and whether the Company will ultimately achieve
profitability, become cash flow positive, or raise additional debt and/or
equity capital. If the Company is unable to raise additional capital in the
near future or meet financing requirements, management expects that the Company
will need to curtail operations, seek additional capital on less favorable
terms, and/or pursue other remedial measures.
These financial statements do not include any
adjustments related to the recoverability and classification of assets or the
amounts and classification of liabilities that might be necessary should the Company
become unable to continue as a going concern.
5
NOTE 4 –SIGNIFICANT ACCOUNTING
POLICIES
Basis of Presentation
The accompanying unaudited financial statements and related disclosures
have been prepared in accordance with U.S. GAAP applicable to interim financial
information and with the instructions to Form 10-Q. In the opinion of
management, all adjustments, consisting of only those of a normal recurring
nature, considered necessary for a fair presentation of the financial position
and interim results of Eternelle as of and for the periods presented have been
included. Results for interim periods are not necessarily indicative of those
that may be expected for a full year.
The year-end balance sheet data was derived from audited financial
statements; however, the accompanying interim notes to the financial statements
do not include all disclosures required by U.S. GAAP. The financial information
included herein should be read in conjunction with Eternelle’s financial
statements and related notes for the year ended March 31, 2017 as filed in the
Company’s Registration Statement on Form 10-12G.
Revenue
Recognition
Revenue is recognized on a gross basis
upon shipment or upon receipt of products by the customer, depending on the agreed-upon
terms, provided that: there are no uncertainties regarding customer acceptance;
persuasive evidence of an agreement exists documenting the specific terms of
the transaction; the sales price is fixed or determinable; and collectibility
is reasonably assured. Management assesses the business environment, the
customer’s financial condition, historical collection experience,
accounts receivable aging, and customer disputes to determine whether
collectibility is reasonably assured. If collectibility is not considered
reasonably assured at the time of sale, the Company does not recognize revenue
until collection occurs. The Company expects to begin recognizing revenue in
the fourth quarter of this fiscal year.
Website
Expenditures
related to the planning and operation of the Company’s website are
expensed as incurred. Expenditures related to the website application and
infrastructure development are capitalized and depreciated over the
website’s estimated useful life of three (3) years.
Recent Accounting Pronouncements
The Financial Accounting Standards Board issues
Accounting Standards Updates (“ASU”) to amend the authoritative
literature in the Accounting Standards Codification (“ASC”). There
have been a number of ASUs to date that amend the original text of the ASC. The
Company believes those updates issued-to-date either (i) provide supplemental
guidance, (ii) are technical corrections, (iii) are not applicable to the
Company, or (iv) are not expected to have a significant impact on the Company.
NOTE 5 – RELATED PARTY
TRANSACTIONS
The Company’s Chief Executive
Officer (“CEO”) advanced $33,103 to the Company during the three
months ended June 30, 2017 to pay for website development costs and operating
expenses. The advances are due on demand and carry no interest. The
related-party advances totaled $46,366 and $13,263 as of June 30, 2017 and
March 31, 2017, respectively.
NOTE 6 – COMMITMENTS AND CONTINGENCIES
The Company is not currently involved with and does
not have knowledge of any pending or threatened litigation against the Company
or any of its officers.
6