Florida
|
20-3217152
|
(State
or other jurisdiction of incorporation or organization)
|
(IRS
Employer Identification No.)
|
PART I.
FINANCIAL
INFORMATION
|
|
ITEM 1.
FINANCIAL
STATEMENTS
|
|
Balance
Sheets as of September 30, 2007 (unaudited) and June 30, 2007
(audited)
|
3
|
Statements
of Operations for the three months ended September 30, 2007 and 2006,
and
cumulative from July 22, 2005 (inception) through September 30, 2007
(unaudited)
|
4
|
Statements
of Changes in Stockholders' Equity for the period from July 22, 2005
(inception) through September
30, 2007 (unaudited)
|
5
|
Statements
of Cash Flows for the three months ended September 30, 2007, and
2006 and
cumulative from July 22, 2005 (inception) through
September 30, 2007 (unaudited)
|
6
|
Notes
to Financial Statements
(unaudited)
|
7
|
ITEM
2. MANAGEMENT'S DISCUSSION
AND ANALYSIS OR PLAN OF OPERATION
|
|
Overview
|
13
|
Results
of
operations
|
14
|
Liquidity
and capital
resources
|
14
|
|
|
ITEM
3. CONTROLS AND
PROCEDURES
|
15
|
|
|
PART
II - OTHER
INFORMATION
|
|
Item
1. Legal
proceedings
|
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
|
16
|
Item
6.
Exhibits
|
16
|
September
30,
|
June
30,
|
|||||||
2007
|
2007
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
ASSETS
|
||||||||
Cash
|
$ |
5,994
|
$ |
10,918
|
||||
Accounts
receivable
|
5,837
|
6,904
|
||||||
Other
receivables
|
-
|
7,000
|
||||||
Inventories
|
104,227
|
63,642
|
||||||
Other
|
7,035
|
7,035
|
||||||
Total
current assets
|
123,093
|
95,499
|
||||||
Trademark
|
325
|
325
|
||||||
Security
deposit
|
200
|
200
|
||||||
Total
assets
|
$ |
123,618
|
$ |
96,024
|
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY (DEFICIENCY)
|
||||||||
CURRENT
LIABILITES
|
||||||||
Accounts
payable and accrued expenses
|
$ |
73,850
|
$ |
36,623
|
||||
Notes
payable
|
50,000
|
50,000
|
||||||
Due
to officers
|
60,963
|
13,373
|
||||||
Due
to stockholders
|
125,603
|
74,350
|
||||||
Total
current liabilities
|
310,416
|
174,346
|
||||||
Convertible
debt
|
50,000
|
50,000
|
||||||
STOCKHOLDERS'
EQUITY (DEFICIENCY)
|
||||||||
Common
stock, par value $.0001 per share; 40,000,000 authorized
|
2,193
|
2,127
|
||||||
Additional
paid in capital
|
1,166,764
|
1,047,143
|
||||||
Deficit
accumulated during the development stage
|
(1,405,755 | ) | (1,177,592 | ) | ||||
Total
stockholders' equity (deficiency)
|
(236,798 | ) | (128,322 | ) | ||||
Total
liabilities and stockholders' equity (deficiency)
|
$ |
123,618
|
$ |
96,024
|
||||
July
22, 2005
|
||||||||||||
Three
months
|
Three
months
|
(inception)
|
||||||||||
ended
|
ended
|
through
|
||||||||||
September
30,
|
September
30,
|
September
30,
|
||||||||||
2007
|
2006
|
2007
|
||||||||||
REVENUES
|
$ |
17,179
|
$ |
-
|
$ |
23,458
|
||||||
COST
OF GOODS SOLD
|
14,656
|
-
|
18,067
|
|||||||||
Gross
profit
|
$ |
2,523
|
$ |
-
|
$ |
5,391
|
||||||
EXPENSES
|
||||||||||||
General
and administrative expenses
|
227,686
|
21,526
|
1,388,081
|
|||||||||
LOSS
FROM OPERATIONS
|
(225,163 | ) | (21,526 | ) | (1,382,690 | ) | ||||||
Interest
expense
|
3,000
|
-
|
23,065
|
|||||||||
Loss
before provision for income taxes
|
(228,163 | ) | (21,526 | ) | (1,405,755 | ) | ||||||
Provision
for income taxes
|
-
|
-
|
-
|
|||||||||
Net
loss
|
$ | (228,163 | ) | $ | (21,526 | ) | $ | (1,405,755 | ) | |||
Net
loss per share, basic and diluted
|
$ | (0.01 | ) | $ | (0.00 | ) | $ | (0.07 | ) | |||
Weighted
average common shares outstanding
|
21,382,891
|
20,611,750
|
20,139,309
|
|||||||||
Common
stock to be issued
|
Common
stock issued and outstanding
|
Additonal
paid in capital
|
Deficit
Accumulated During the Development Stage
|
Total
Stockholders' Equity (Deficiency)
|
|||||||||
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||
Balance
July 22, 2005 (inception)
|
-
|
$ -
|
-
|
$ -
|
$ -
|
$ -
|
$ -
|
||||||
Common
stock to be issued in connection with Incorporation (July 22,
2005)
|
4,000,000
|
10,000
|
-
|
-
|
-
|
-
|
10,000
|
||||||
Common
stock to be issued as compensation - consulting services
|
16,150,000
|
40,375
|
-
|
-
|
-
|
-
|
40,375
|
||||||
Common
stock issued - private placement, net of issuance costs of
$58,255
|
461,750
|
126,445
|
-
|
-
|
-
|
-
|
126,445
|
||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
(64,361)
|
(64,361)
|
||||||
Balance
June 30, 2006
|
20,611,750
|
176,820
|
-
|
-
|
-
|
(64,361)
|
112,459
|
||||||
Issuance
of shares
|
(20,611,750)
|
(176,820)
|
20,611,750
|
2,061
|
174,759
|
-
|
-
|
||||||
Beneficial
conversion of loan discount
|
-
|
-
|
-
|
-
|
18,750
|
-
|
18,750
|
||||||
Common
stock issued as compensation - consulting services
|
-
|
-
|
660,000
|
66
|
622,334
|
-
|
622,400
|
||||||
Issuance
of options for services rendered
|
231,300
|
231,300
|
|||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
(1,113,231)
|
(1,113,231)
|
||||||
Balance
June 30, 2007
|
-
|
-
|
21,271,750
|
2,127
|
1,047,143
|
(1,177,592)
|
(128,322)
|
||||||
Issuance
of shares in connection with private placement (unaudited)
|
-
|
-
|
125,000
|
13
|
49,987
|
-
|
50,000
|
||||||
Common
stock issued as compensation - consulting services
(unaudited)
|
-
|
-
|
412,500
|
41
|
69,333
|
-
|
69,374
|
||||||
Exercise
of options (unaudited)
|
125,000
|
12
|
301
|
313
|
|||||||||
Net
loss (unaudited)
|
-
|
-
|
-
|
-
|
-
|
(228,163)
|
(228,163)
|
||||||
Balance
September 30, 2007 (unaudited)
|
-
|
-
|
21,934,250
|
$ 2,193
|
$
1,166,764
|
$ (1,405,755)
|
$ (236,798)
|
||||||
Three
months
|
Three
months
|
(inception)
|
||||||||||
ended
|
ended
|
through
|
||||||||||
September
30,
|
September
30,
|
September
30,
|
||||||||||
2007
|
2006
|
2007
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net
loss
|
$ | (228,163 | ) | $ | (21,526 | ) | $ | (1,405,755 | ) | |||
Adjustments
to reconcile net loss to net cash used in operating
|
||||||||||||
activities:
|
||||||||||||
Common
stock issued - consulting services
|
69,374
|
-
|
732,149
|
|||||||||
Issuance
of stock options - employee
|
-
|
-
|
231,300
|
|||||||||
Amortization
of beneficial conversion discount
|
-
|
-
|
18,750
|
|||||||||
Changes
in operating assets and liabilities
|
||||||||||||
(Increase)/Decrease
in:
|
||||||||||||
Accounts
receivable
|
1,067
|
-
|
(5,837 | ) | ||||||||
Other
receivables
|
7,000
|
-
|
-
|
|||||||||
Inventories
|
(40,585 | ) | (10,000 | ) | (104,227 | ) | ||||||
Other
|
-
|
-
|
(7,035 | ) | ||||||||
Security
deposits
|
-
|
-
|
(200 | ) | ||||||||
Increase/(Decrease)
in:
|
||||||||||||
Accounts
payable and accrued expenses
|
37,227
|
15,713
|
73,850
|
|||||||||
Net
cash used in operating activities
|
(154,080 | ) | (15,813 | ) | (467,005 | ) | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Trademark
|
-
|
(325 | ) | (325 | ) | |||||||
Net
cash used in investing activities
|
-
|
(325 | ) | (325 | ) | |||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Net
proceeds from private placement
|
50,000
|
-
|
176,445
|
|||||||||
Proceeds
from sale of founders shares
|
-
|
-
|
10,000
|
|||||||||
Proceeds
from exercise of options
|
313
|
-
|
313
|
|||||||||
Proceeds
from notes payable
|
-
|
-
|
50,000
|
|||||||||
Advances
from officers
|
47,590
|
-
|
60,963
|
|||||||||
Advances
from stockholders
|
51,253
|
-
|
125,603
|
|||||||||
Proceeds
from convertible debt
|
-
|
-
|
50,000
|
|||||||||
Net
cash provided by financing activities
|
149,156
|
-
|
473,324
|
|||||||||
NET
(DECREASE)/INCREASE IN CASH
|
(4,924 | ) | (16,138 | ) |
5,994
|
|||||||
CASH,
beginning of period
|
10,918
|
53,515
|
-
|
|||||||||
CASH,
end of period
|
$ |
5,994
|
$ |
37,377
|
$ |
5,994
|
||||||
2007
|
2006
|
|||||||
Convertible
debentures described above
|
$ |
50,000
|
-
|
|||||
Less:
unamortized discount
|
-
|
-
|
||||||
Convertible
debt
|
$ |
50,000
|
-
|
|
|
Options
|
|
|
Weighted
Average Exercise Price
|
|
||
|
|
|
|
|
|
|
||
Outstanding
as of July 22, 2005 (inception)
|
|
|
-
|
|
|
$
|
-
|
|
Granted
|
|
|
125,000
|
|
|
|
0.0025
|
|
Exercised
|
|
|
-
|
|
|
|
-
|
|
Forfeited
|
|
|
-
|
|
|
|
-
|
|
Expired
|
|
|
-
|
|
|
|
-
|
|
Outstanding
as of June 30, 2006
|
|
|
125,000
|
|
|
$
|
0.0025
|
|
Granted
|
|
|
500,000
|
|
|
|
0.55
|
|
Exercised
|
|
|
-
|
|
|
|
-
|
|
Forfeited
|
|
|
-
|
|
|
|
-
|
|
Expired
|
|
|
-
|
|
|
|
-
|
|
Outstanding
as of June 30, 2007
|
|
|
625,000
|
|
|
$
|
0.44
|
|
Granted
|
-
|
|
|
|
-
|
|||
Exercised
|
|
|
125,000
|
|
|
|
-
|
|
Forfeited
|
|
|
-
|
|
|
|
-
|
|
Expired
|
|
|
-
|
|
|
|
-
|
|
Outstanding
as of September 30, 2007
|
|
|
500,000
|
|
|
$
|
0.55
|
|
Exhibit
No.
|
Description
of Exhibit
|
3.1
|
Articles
of incorporation (1)
|
3.2
|
Bylaws
(1)
|
3.3
|
Articles
of Amendment to Articles of Incorporation (1)
|
4.1
|
Copy
of common stock certificate (1)
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|