U.S. Securities and Exchange Commission

Washington, D.C. 20549

 

FORM - 10-Q

 

[ X ]            QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF  THE SECURITIES AND EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2010

 

or

 

[   ]              TRANSITION REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

 

For the transition period from _____________________

Commission File No.

 

Breezer Ventures Inc.

---------------------------------------------

(Name of small business issuer in its charter)

 

Room 1707, 17^th Floor, CTS Center, 219 Zhong Shan Wu Road, Guangzhou, China, 510030 

---------------------------------------------------------------------------------------------------------

(Address of principal executive offices)

949-419-6588 

----------------------------------

(Registrant's telephone number, including area code)

 

-------------------------

(Former name, address and fiscal year, if changed since last report)

Indicate by check mark 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. Yes  x   No  o 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.
Large accelerated filer	o			Accelerated filer		o
Non-accelerated filer	o			Smaller reporting company		x

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act)? Yes x  No  "

The number of shares outstanding of the registrant's common stock, par value $.001 per share, as of May 21, 2010 was 30,600,000 shares .

1

 

  Breezer Ventures Inc.

Table of Contents

 

Part I - FINANCIAL INFORMATION

Item 1.    Financial Statements (Unaudited)

Balance Sheets as of March 31, 2010 and September 30, 2009 (Unaudited)...................................................................................................................3          

Statements of Operations for the three months ended March 31, 2010 and 2009; the six months ended March 31, 2010 and 2009; and the period from May 18, 2005 (inception) through March 31, 2010. (Unaudited)............................................................................................................................................................................................4

Statements of Cash Flows for the six months ended March 31, 2010 and 2009 and the period from May 18, 2005 (inception) through March 31, 2010 (Unaudited).......................................................................................................................................................................................................................5              

Notes to Financial Statements (Unaudited)......................................................................................................................................................................7

Item 2.    Management's Discussion and Analysis or Plan of Operations.........................................................................................................................13

Item 3.    Controls and Procedures....................................................................................................................................................................................15

Part II - OTHER INFORMATION..................................................................................................................................................................................17

2

Part I - FINANCIAL INFORMATION

Breezer Ventures Inc.

(A Development Stage Company)

Balance Sheets

(Unaudited)

 

The accompanying notes are an integral part of these financial statements

 

 

 

 

Breezer Ventures Inc.

(A Development Stage Company)

Statements of Operations

Three Months and Six Months Ended March 31 2010 and 2009 and for the Period From May 18, 2005 (Inception) through March 31 2010

(Unaudited)

 

 

The accompanying notes are an integral part of these financial statements

 

Breezer Ventures Inc.

(A Development Stage Company)

Statements of Cash Flows

Six Months Ended March 31, 2010 and

the Period From May 18, 2005 (Inception) through March 31, 2010

(Unaudited)

 

The accompanying notes are an integral part of these financial statements

 

Breezer Ventures Inc.

 

(A Development Stage Company)

 

NOTES TO FINANCIAL STATEMENTS

 

Note 1

Incorporation and Operating Activities

 

Breezer Ventures Inc. was incorporated on May 18, 2005, under the laws of the State of Nevada, U.S.A. Operations, as a development stage company started on that date.

 

We intend to commence operations as a casual, fine-dining restaurant serving modern, fusion-style Indian cuisine in Beijing, China. On September 30, 2005, we signed an asset purchase agreement with Big-On-Burgers Restaurants to purchase the supplies and capital equipment of their restaurant.

 

Note 2

Summary of Significant Accounting Policies

 

Basis of Presentation

 

The Company follows accounting principles generally accepted in the United States of America.  In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented have been reflected herein.

 

Revenue Recognition

 

Revenue is recognized when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when persuasive evidence of an arrangement exists, services have been provided, and collectability is reasonably assured. Revenue that is billed in advance such as recurring weekly or monthly services are initially deferred and recognized as revenue over the period the services are provided.

 

Use of Estimates

 

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could materially differ from these estimates.

 

Development Stage Company

 

The Company complies with the FASB Accounting Standards Codification (ASC) Topic 915 Development Stage Entities and the Securities and Exchange Commission Exchange Act 7 for its characterization of the Company as development stage.

 

Impairment of Long Lived Assets

 

Long-lived assets are reviewed for impairment in accordance with ASC Topic 360, "Accounting for the Impairment or Disposal of Long-lived Assets". Under ASC Topic 360, long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. An impairment charge is recognized or the amount, if any, which the carrying value of the asset exceeds the fair value.

 

Foreign Currency Translation

 

Our functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated in accordance with ASC Topic 830, "Foreign Currency Translation" using the exchange rate prevailing at the balance sheet date. Gains and losses arising on settlement of foreign currency denominated transactions or balances are included in the determination of income. We have not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

 

 

F-8

 

 

Fair Value of Financial Instruments

 

The respective carrying value of certain on-balance sheet financial instruments approximate their fair values.  These financial statements include cash, receivables, advances receivable, cheques issued in excess of cash, accounts payable and property obligations payable.  Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.  Unless otherwise noted, fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair values or they are receivable or payable on demand.

 

Income Taxes

 

The company recognizes income taxes using an asset and liability approach.  Future income tax assets and liabilities are computed annually for differences between the financial statements and bases using enacted tax laws and rates applicable to the periods in which the differences are expressed to affect taxable income.

 

Basic and Diluted Net Loss Per Common Share

 

Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. The per share amounts include the dilutive effect of common stock equivalents in years with net income. Basic and diluted loss per share is the same due to the anti dilutive nature of potential common stock equivalents.

 

Stock Based Compensation

 

The Company accounts for stock-based employee compensation arrangements using the fair value method in accordance with the provisions of ASC Topic 718 Compensation Stock Compensation.  The company accounts for the stock options issued to non-employees in accordance with the provisions of Statement of Financial Accounting Standards No. 123, or SFAS No. 123, Accounting for Stock-Based Compensation, and Emerging Issues Task Force No. 96-18, Accounting for Equity Instruments with Variable Terms That Are Issued for Consideration other Than Employee Services under FASB Statement no. 123.

 

On September 2, 2009, the Board of Directors of Breezer Ventures Inc. declared the payment of a stock dividend consisting of three (3) additional shares of the Companys common stock for each one (1) share of the Companys common stock held as of the record date. The record date will be September 14, 2009. Such stock dividend will be paid on September 15, 2009. Holders of fractions of shares of the Companys common stock will receive a proportional number of shares rounded to the nearest whole share. In connection with this stock dividend, the ownership of stockholders possessing 7,650,000 shares of the Companys Common Stock will be thereby be increased to 30,600,000 shares of common stock.

 

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of March 31, 2010 and 2009, there were no cash equivalents.

 

Property, Plant and Equipment

 

Property, plant and equipment consist of furniture and equipment recorded at cost, with amortization provided over the estimated useful life of the asset, 5 years, straight-line.

 

Recent Accounting Pronouncements

 

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.

 

 

F-9

 

 

Note 3

Going Concern

 

The company's financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business for the foreseeable future. Since inception, the Company has accumulated losses aggregating to $143,570 and has insufficient working capital to meet operating needs for the next twelve months as of March 31, 2010, all of which raise substantial doubt about the company's ability to continue as a going concern.

 

The Company does not have the necessary funds to cover the anticipated operating expenses over the next twelve months. It will be necessary for the company to raise additional funds through the issuance of equity securities, through loans or debt financings. There can be no assurance that the Company will be successful in raising the required capital or that actual cash requirements will not exceed our estimates. We do not have any agreements in place for equity financing and or loan and debt financing. In the event that the Company is unsuccessful in its financing efforts, the Company may seek to obtain short term loans.

 

Note 4

Due from Shareholder

 

The receivable shown as due from the shareholder was not an extension of credit from the Company. The Company elected to transfer funds from a US bank account to a foreign bank account and as a result, closed its US bank account. In order to facilitate this process, a shareholder, Angeni Singh, held these funds as a custodian for the Company until such time as the necessary requirements could be met and such funds could be transferred to the foreign account. Subsequently, however, the Company elected to transfer these funds to another US bank account. The cash balance of $4,392 is shown as a receivable from a shareholder as of September 31, 2008. Subsequent to that date, the shareholder deposited these funds into the Companys bank account. This amount was not, however, a loan to or from the Company.  The Company did not make a personal loan to any officer, director or shareholder.

 

Note 5

Property, Plant and Equipment

 

Property, Plant and Equipment consists of furniture and equipment, which is being depreciated over 5 years.

 

		March 31, 2010				March 31, 2009
		$				$
Cost			17,500				17,500
Accumulated Depreciation			(14,304	)			(12,552	)
Net, Property, Plant and Equipment			3,196				4,948

 

Note 6

Income Taxes

 

The Company has tax losses, which may be applied against future taxable income.  The potential tax benefits arising from these loss carry forwards expire between 2025 and 2028 and are offset by a valuation allowance due to the uncertainty of profitable operations in the future. The net operating loss carry forward was $143,570 and $128,058 at March 31, 2010 and 2009, respectively.

 

F-10

 

 

Note 7

Related Party Transaction

 

A director loaned $9,800 to the Company during the period ended March 31, 2010, which is unsecured, non interest bearing, with no specific terms of repayment. The amount due the director is $38,750 and $38,450 at March 31, 2010 and March 31, 2009, respectively.

 

Imputed interest at 8% in the amount of $1,568 and $1,438 has been included as an increase to additional paid in capital for the six months ended March 31, 2010 and 2009, respectively.

 

Note 8

Subsequent Events

 

The Company has abandoned its previous business model, and has no plans to open a restaurant.   As of the date of the filing of this Report, the Company is exploring and considering various potential business opportunities.

 

 

Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our unaudited financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars. All references to "US$" refer to United States dollars and all references to "common shares" refer to the common shares in our capital stock.

As used in this quarterly report, the terms "we", "us", "our", "our company" and Breezer mean Breezer Ventures Inc., unless otherwise indicated.

 

 Plan of Operations

 Breezer Ventures Inc. was incorporated in the state of Nevada on May 18, 2005. To date, the Company has not commenced operations or earned revenue. The Companys previous business models related to the restaurant business. However, we were not successful in implementing this business plan. Management then investigated several other business opportunities, and focused on opening a restaurant in Beijing, China. The Company has abandoned this business plan as well, and now has no plans to open a restaurant.  As of the date of the filing of this Report, the Company is exploring and considering various potential business opportunities.

Our principal executive offices are located at Room 1707, 17^th Floor, CTS Center, 219 Zhong Shan Wu Road, Guangzhou, China, 510030.

We are in the process of developing a new business plan for the Company. At the present time, the Company does not have the necessary funds to cover its anticipated operating expenses over the next twelve months or to commence operations. It will be necessary for the Company to raise additional funds through the issuance of equity securities, through loans or debt financings.  There can be no assurance that the Company will be successful in raising the required capital or that actual cash requirements will not exceed our estimates.  We do not have any agreements in place for equity financing and or loan and debt financing.  In the event that the Company is unsuccessful in its financing efforts, the Company may seek to obtain short term loans.  There can be no assurance that we will be successful in finding financing, or even if financing is found, that we will be successful in achieving profitable operations.

Because we have not yet determined what the Companys business operations will be, we can not estimate what competitive conditions we will face, what products we will sell and how we will distribute them, the raw materials we may require, the number or nature of our customers or the impact of future government regulation on our business.

Mr. Sim resigned on December 22, 2009 as the President, Chief Executive Officer, Treasurer, Secretary and sole director of the Company.  Prior to Mr. Sims resignation, Mr. Tang Xu was appointed to the Companys Board of Directors.  Mr. Tang Xu was appointed to serve as the Companys President, Chief Executive Officer, Treasurer and Secretary upon Mr. Sims resignation.

 

Revenues and Expenses

 

The Company has not generated any revenues since its inception.

The Company incurred general and administration expenses of $13,252 for the three months ended March 31, 2010.  For the three months ended March 31, 2009, the Company experienced general and administration expenses of $4,621.  Since the Company's inception, the Company has incurred total general and administration expenses of $143,570. The majority of the expenses incurred by the Company have been related to the Company's offices and expenses related to maintaining the Company's status as a publicly reporting company, including legal, accounting and filing fees.

For the three months ended March 31, 2010, the Company experienced a net loss of $13,252.

Should the Company commence operations in the near future, its expenses are anticipated to increase considerably

 

Liquidity and capital resources

The Company has earned no revenues since its inception.  From inception until the date of this filing, we have had no material operating activities.  Our current cash balance as of the date of this Report is $189 deficit.  We anticipate that our current cash balance will not satisfy our cash needs for the following twelve-month period.  There can be no assurance that we will be successful in finding financing, or even if financing is found, that we will be successful in commencing operations.

During the three months period ended March 31 2010, the Company satisfied its working capital needs from loans from its Director.  As of March 31, 2010, the Company has cash on hand in the amount of negative $189.  Management does not expect that the current level of cash on hand will be sufficient to fund our operation for the next twelve month period.  We may also be able to obtain more future loans from our shareholders, but there are no agreements or understandings in place currently.

  

 We believe that we will require additional funding to expand our business and ensure its future profitability. We anticipate that any additional funding will be in the form of equity financing from the sale of our common stock.  However, we do not have any agreements in place for any future equity financing.  In the event we are not successful in selling our common stock, we may also seek to obtain short-term loans from certain of our shareholders.

 

Off Balance Sheet Arrangements

 

As of March 31, 2010 we did 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 of operations, liquidity, capital expenditures or capital resources.

 

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Pursuant to permissive authority under Regulation S-K, Rule 305, we have omitted Selected Financial Data.

 

ITEM 4.

CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

We  carried out an evaluation, under the supervision and with the participation   of  our  management,  including   our   principal executive  officer  and  principal  financial  officer,  of   the effectiveness  of  our  disclosure controls  and  procedures  (as defined  in  Rules  13a-15(e) and 15d-15(e) of the  Exchange  Act (defined  below)).   Based  upon that evaluation,  our  principal executive officer and principal financial officer concluded that, as  of  the  end  of  the  period covered  in  this  report,  our disclosure controls and procedures were effective to ensure  that information required to be disclosed in reports filed  under  the Securities Exchange Act of 1934, as amended (the "Exchange  Act") is  recorded,  processed,  summarized  and  reported  within  the required time periods and is accumulated and communicated to  our management,   including  our  principal  executive  officer   and principal  financial  officer, as  appropriate  to  allow  timely decisions regarding required disclosure.

 

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud.  A control system, no matter how well conceived and   operated,  can  provide  only  reasonable,  not   absolute, assurance   that  the  objectives  of  the  control  system   are met.   Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs.  Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Accordingly, management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.

 

Changes in Internal Control over Financial Reporting

 

In addition, our management with the participation of our Principal Executive Officer and Principal Financial Officer have determined that no change in our internal control over financial reporting occurred during or subsequent to the quarter ended March 31, 2010 that has materially affected, or is (as that term is defined in Rules 13(a)-15(f) and 15(d)-15(f) of the Securities Exchange Act of 1934) reasonably likely to materially affect, our internal control over financial reporting. 

 

 

 

 

 

PART II.	OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS

 

The Company is not, and has not been during the period covered by this Quarterly Report, a party to any legal proceedings.

 

ITEM 1A.

RISK FACTORS

 

Not Applicable.

 

ITEM 2:

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None.

 

ITEM 3:

DEFAULTS UPON SENIOR SECURITIES

 

Not Applicable.

  

ITEM 4:

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

 

No matters were submitted to the vote of the Companys security holders during the period covered by this Quarterly Report.

 

ITEM 5:

OTHER INFORMATION

 

Not Applicable.

 

ITEM 6.

EXHIBITS

 

Exhibit

Description

 

31.1	C   Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

32.1	Certification of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

 

 

 

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 thereunto duly authorized May 21, 2010.