Attached files
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| EX-31.2 - EXHIBIT 31.2 - Timber Pharmaceuticals, Inc. | ex31_2.htm |
| EX-32.1 - EXHIBIT 32.1 - Timber Pharmaceuticals, Inc. | ex32_1.htm |
| EX-31.1 - EXHIBIT 31.1 - Timber Pharmaceuticals, Inc. | ex31_1.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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[X]
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Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the quarterly period ended March 31, 2011
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[ ]
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Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
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For the transition period from __________ to__________
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Commission File Number: 333-170155
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Thompson Designs, Inc.
(Exact name of registrant as specified in its charter)
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Nevada
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59-3843182
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification No.)
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3315 East Russell Road, Ste. A-4 129, Las Vegas, Nevada 89120
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(Address of principal executive offices)
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(702) 499-3209
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(Registrant’s telephone number)
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_____________________________________________________
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(Former name, former address and former fiscal year, if changed since last report)
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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 [X] Yes [ ] No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [ ] 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.
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[ ] Large accelerated filer Accelerated filer
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[ ] Non-accelerated filer
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[X] Smaller reporting company
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [X] Yes [ ] No
State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 9,000,000 common shares as of May 13, 2011.
PART I - FINANCIAL INFORMATION
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Our financial statements included in this Form 10-Q are as follows:
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These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended March 31, 2011 are not necessarily indicative of the results that can be expected for the full year.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS (unaudited)
As of March 31, 2011 and September 30, 2010
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ASSETS
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March 31,
2011
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September 30,
2010
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Current assets
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Cash
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$ | 15,621 | $ | 7,000 | ||||
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Total current assets
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15,621 | 7,000 | ||||||
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Property and equipment, net of accumulated depreciation of $104
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516 | - | ||||||
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Total assets
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$ | 16,137 | $ | 7,000 | ||||
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LIABILITIES AND STOCKHOLDER’S EQUITY
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LIABILITIES
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Current Liabilities
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Accrued expenses
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$ | 2,000 | $ | 3,000 | ||||
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STOCKHOLDER’S EQUITY
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Common stock, $.001 par value, 100,000,000 shares
authorized, 9,000,000 (2010-7,000,000) shares issued and outstanding
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9,000 | 7,000 | ||||||
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Additional paid in capital
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13,000 | - | ||||||
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Deficit accumulated during the Development stage
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(7,863 | ) | (3,000 | ) | ||||
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Total stockholder’s equity
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14,137 | 4,000 | ||||||
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TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY
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$ | 16,137 | $ | 7,000 | ||||
See accompanying notes to financial statements.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS (unaudited)
For the three months and six months ended March 31, 2011
For the period from August 30, 2010 (Date of Inception) through March 31, 2011
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Three months ended March 31, 2011
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Six months
ended March 31, 2011
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Inception
through
March 31, 2011
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General and administrative expenses:
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Professional fees
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$ | 1,000 | $ | 2,500 | $ | 5,500 | ||||||
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Depreciation
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52 | 104 | 104 | |||||||||
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Supplies
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- | 1,215 | 1,215 | |||||||||
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Other
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1,036 | 1,044 | 1,044 | |||||||||
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Total general and administrative expenses
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2,088 | 4,863 | 7,863 | |||||||||
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Net loss and comprehensive loss
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$ | (2,088 | ) | $ | (4,863 | ) | $ | (7,863 | ) | |||
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Net loss per share:
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Basic and diluted
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$ | (0.00 | ) | $ | (0.00 | ) | ||||||
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Weighted average shares outstanding:
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Basic and diluted
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7,666,666 | 7,333,333 | ||||||||||
See accompanying notes to financial statements.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF STOCKHOLDER’S EQUITY (unaudited)
Period from August 30, 2010 (Date of Inception) through March 31, 2011
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Common stock
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Additional | Deficit accumulated during the Development | ||||||||||||||||||
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Shares
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Amount
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paid-in capital
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stage
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Total
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Issuance of common stock for cash to founders
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7,000,000 | $ | 7,000 | $ | - | $ | - | $ | 7,000 | |||||||||||
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Net loss for the period
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- | - | - | (3,000 | ) | (3,000 | ) | |||||||||||||
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Balance, September 30, 2010
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7,000,000 | 7,000 | - | (3,000 | ) | 4,000 | ||||||||||||||
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Issuance of common stock for cash at $ 0.0075
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2,000,000 | $ | 2,000 | $ | 13,000 | $ | - | $ | 15,000 | |||||||||||
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Net loss for the period
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- | - | (4,863 | ) | (4,863 | ) | ||||||||||||||
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Balance, March 31, 2011
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9,000,000 | $ | 9,000 | $ | 13,000 | $ | (7,863 | ) | $ | 14,137 | ||||||||||
See accompanying notes to financial statements.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS (unaudited)
For the six months ended March 31, 2011
For the period from August 30, 2010 (Date of Inception) through March 31, 2011
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Six months
ended
March 31, 2011
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Inception
through
March 31,2010
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CASH FLOWS FROM OPERATING ACTIVITIES
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Net loss and comprehensive loss
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$ | (4,863 | ) | $ | (7,863 | ) | ||
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Adjustments to reconcile net income to net cash provided by operating activities:
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104 | 104 | ||||||
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Depreciation
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Change in non-cash working capital items
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Increase (decrease) in accrued expenses
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(1,000 | ) | 2,000 | |||||
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CASH FLOWS USED IN OPERATING ACTIVITIES
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(5,759 | ) | (5,759 | ) | ||||
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CASH FLOWS FROM INVESTING ACTIVITIES
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Purchase of property and equipment
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(620 | ) | (620 | ) | ||||
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CASH FLOWS FROM FINANCING ACTIVITIES
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Proceeds from sale of common stock
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15,000- | 22,000 | ||||||
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NET INCREASE IN CASH
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8,621 | 15,621 | ||||||
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Cash, beginning of period
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7,000 | - | ||||||
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Cash, end of period
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$ | 15,621 | $ | 15,621 | ||||
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SUPPLEMENTAL CASH FLOW INFORMATION
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Interest paid
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$ |
-
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$ |
-
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Income taxes paid
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$ |
-
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$ |
-
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See accompanying notes to financial statements.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
March 31, 2011
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited interim financial statements have been prepared by Thompson Designs, Inc. (“Thompson” and the “Company”) pursuant to the rules and regulations of the United States Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these financial statements have been included. Such adjustments consist of normal recurring adjustments. These interim financial statements should be read in conjunction with the audited financial statements of the Company for the fiscal year ended September 30, 2010. The results of operations for the six months ended March 31, 2011 are not indicative of the results that may be expected for the full year.
Thompson Designs, Inc. was incorporated in Nevada on August 30, 2010. Thompson is a development stage company and has not yet realized any revenues from its planned operations. Thompson is currently in the business of designing and building custom signs for residential and commercial properties.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates.
Basic Loss Per Share
Basic loss per share has been calculated based on the weighted average number of shares of common stock outstanding during the period.
Comprehensive Income
The Company has adopted SFAS 130 “Reporting Comprehensive Income” (ASC 220-10), which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. When applicable, the Company would disclose this information on its Statement of Stockholders’ Equity. Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. The Company has not had any significant transactions that are required to be reported in other comprehensive income.
Property and Equipment
Capital assets are recorded at cost and depreciated over their estimated useful life on a straight line basis.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
March 31, 2011
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Income Tax
Thompson follows SFAS 109, “Accounting for Income Taxes” (ASC 740-10). Deferred income taxes reflect the net effect of (a) temporary difference between carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carry-forwards. No net provision for refundable Federal income tax has been made in the accompanying statement of loss because no recoverable taxes were paid previously. Similarly, no deferred tax asset attributable to the net operating loss carry-forward has been recognized, as it is not deemed likely to be realized.
Cash and Cash Equivalents
The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents
Recent Accounting Pronouncements
Thompson does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.
NOTE 2 - GOING CONCERN
Thompson has limited working capital and has a deficit accumulated during the Development stage of $7,863 as of March 31, 2011. Thompson's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, Thompson has no current source of revenue. Without realization of additional capital, it would be unlikely for Thompson to continue as a going concern. Thompson's management plans on raising cash from public or private debt or equity financing, on an as needed basis and in the longer term, upon achieving profitable operations through its business activities.
NOTE 3 – INCOME TAXES
The provision for Federal income tax consists of the following:
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March 31, 2011
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Federal income tax attributable to:
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Current Operations
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$ | 1,650 | ||
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Less: valuation allowance
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(1,650 | ) | ||
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Net provision for Federal income taxes
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$ | - | ||
THOMPSON DESIGNS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
March 31, 2011
NOTE 3 – INCOME TAXES (continued)
The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:
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March 31,
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2011
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Deferred tax asset attributable to:
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Net operating loss carryover
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$ | 2,674 | ||
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Less: valuation allowance
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(2,674 | ) | ||
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Net deferred tax asset
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$ | - | ||
At March 31, 2011, Thompson had an unused net operating loss carryover approximating $7,875 that is available to offset future taxable income; it expires beginning in 2030.
NOTE 4 – COMMON STOCK
At inception, Thompson issued 7,000,000 shares of stock to its founding shareholder for $7,000 cash.
During the period ended March 31, 2011, Thompson issued 2,000,000 shares of stock for cash of $ 15,000.
NOTE 5 – COMMITMENTS
Thompson neither owns nor leases any real or personal property. An officer has provided office services without charge. There is no obligation for the officer to continue this arrangement. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.
NOTE 6 – SUBSEQUENT EVENTS
The Company has analyzed its operations subsequent to March 31, 2011 through May 15, 2011, the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose.
Forward-Looking Statements
Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements.” These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
We were incorporated as Thompson Designs, Inc. on August 30, 2010 in the State of Nevada for the purpose of designing, producing, and installing custom-made property signage for residential and commercial customers. We are in the development stage of our business and we have not generated any sales revenue to date. The operating budget for our current fiscal year consists of planned expenditures for certain materials and equipment, for marketing of our products, for contract labor on as as-needed basis, and for legal and accounting expenses. On February 22, 2011, we closed our initial public offering of common stock. We sold 2 million shares of common stock in the offering and received total proceeds of $15,000. As a result, management believes that we now have sufficient cash, exclusive of any future sales revenue, to fund our development and operating budget through the third quarter of our current fiscal year. Our ability to fund our planned budget beyond the first three quarters of our current fiscal year will be contingent upon us realizing sales revenue sufficient to fund our ongoing operating expenses, and/or upon obtaining additional financing.
Results of operations for the three and six months ended March 31, 2011 and for the period from August 30, 2010 (date of inception) through March 31, 2011.
We have not earned any revenues since the inception of our current business operations. We incurred expenses and a net loss in the amount of $2,088 for the three months ended March 31, 2011, in the amount of $4,863 for the six months ended March 31, 2011 and in the amount $7,863 from inception on August 30, 2010 through March 31, 2011.
Our losses are attributable to operating expenses together with a lack of any revenues. We anticipate our operating expenses will increase as we continue with our plan of operations.
Liquidity and Capital Resources
As of March 31, 2011, we had total current assets of $15,621, consisting entirely of cash. We had current liabilities of $2,000 as of March 31, 2011. Accordingly, we had working capital of $13,621 as of March 31, 2011.
Management believes that we have sufficient cash, exclusive of any future sales revenue, to fund our development and operating budget through the third quarter of our current fiscal year. Our ability to operate beyond the first three quarters of our current fiscal year is contingent upon us obtaining additional financing and/or upon realizing sales revenue sufficient to fund our ongoing expenses. Until we are able to sustain our ongoing operations through sales revenue, we intend to fund operations through debt and/or equity financing arrangements, which may be insufficient to fund our capital expenditures, working capital, or other cash requirements. We do not have any formal commitments or arrangements for the sales of stock or the advancement or loan of funds at this time. There can be no assurance that such additional financing will be available to us on acceptable terms, or at all.
Off Balance Sheet Arrangements
As of March 31, 2011, there were no off balance sheet arrangements.
Going Concern
As discussed in the notes to our financial statements, we have no established source of revenue. This has raised substantial doubt for our auditors about our ability to continue as a going concern. Without realization of additional capital, it would be unlikely for us to continue as a going concern.
Our activities to date have been supported by equity financing. Management continues to seek funding from its shareholders and other qualified investors to pursue its business plan.
Critical Accounting Policies
In December 2001, the SEC requested that all registrants list their most “critical accounting polices” in the Management Discussion and Analysis. The SEC indicated that a “critical accounting policy” is one which is both important to the portrayal of a company’s financial condition and results, and requires management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Currently, we do not believe that any accounting policies fit this definition.
Recently Issued Accounting Pronouncements
We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow.
A smaller reporting company is not required to provide the information required by this Item.
We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of March 31, 2011. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer, Kade Thompson. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2011, our disclosure controls and procedures are not effective. There have been no changes in our internal controls over financial reporting during the quarter ended March 31, 2011.
Management determined that the material weaknesses that resulted in controls being ineffective are primarily due to lack of resources and number of employees. Material weaknesses exist in the segregation of duties required for effective controls and various reconciliation and control procedures not regularly performed due to the lack of staff and resources.
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.
Limitations on the Effectiveness of Internal Controls
Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving our objectives and our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective at that reasonable assurance level. 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. Because of 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, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the internal control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.
PART II – OTHER INFORMATION
We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.
A smaller reporting company is not required to provide the information required by this Item.
None
None
None
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Exhibit
Number
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Description
of Exhibit
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SIGNATURES
In accordance with the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Thompson Designs, Inc.
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Date:
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May 16, 2011
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By: /s/ Kade Thompson
Kade Thompson
Title: Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer and Director
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