UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K/A

Amendment

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 18, 2011

Commission file number 333-163035

Hyperera, Inc.
((Exact name of registrant as specified in its charter)

Nevada
 
7370
 
26-2007556
         
(State or other jurisdiction of
incorporation or organization)
 
(Primary Standard
Industrial Classification
Code Number)
 
IRS I.D.

2316 S. Wentworth Ave
Chicago, IL
 
60616
(Address of principal executive offices)
 
(Zip Code)

Issuer’s telephone number:  312-842-2288
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 

 

EXPLANATORY NOTE
 
On May 16, 2011, we filed our first Amended Form 10-Q/A for the period ended September 30, 2010 to reflect the financial statement restatement as set forth in our Form 8-K filed May 13, 2011.  We are filing this Form 8-K/A and related Second Amended Form 10-Q/A for the period ended September 30, 2010 to respond to SEC comments concerning the May 13, 2011 Form 8-K filing.
 
Item 4.02(a). Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
 
The registrant’s board of directors concluded that previously issued unaudited interim financial statements, covering the period January 1, 2010 through September 30, 2010 should no longer be relied upon because of an error in such financial statements as addressed in Accounting Principles Board Opinion No. 20, as may be modified, supplemented or succeeded.
 
The date of the conclusion regarding the non-reliance on previously issued financial statements, covering the period January 1, 2010 through September 30, 2010 was April 18, 2011.
 
A brief description of the facts underlying the conclusion to the extent known to the registrant at the time of filing is as follows:
 
The registrant’s business operation and sales activities were through Hyperera (Beijing) Technology Co, Ltd., which is 100% owned subsidiary of Hyperera, Inc.  Hyperera (Beijing) Technology Co. Ltd. was required to report and comply with all local Chinese tax and accounting rules and regulations.  Based on the Chinese tax accounting principles, the sales revenue and accounts receivable allowed to be realized at sales contract price if the contract price was fair market value. Accordingly, in the previous issued unaudited interim financial statements for nine months ended September 30, 2010, the total software sales revenue of $298,529 was mistakenly recorded when the sales orders and sales contracts were signed.  In fact, Hyperera’s consolidated financial statements should comply with the USA GAAP, instead of any other accounting principles.  In accordance with FASB ASC 985-605-25-3, software revenue if the arrangement does not require significant production, modification, or customization of software, revenue shall be recognized and earned when all of the following criteria are met:
a. Persuasive evidence of an arrangement exists (paragraphs 985-605-25-15 through 25-17).
b. Delivery has occurred (paragraphs 985-605-25-18 through 25-29).
c. The vendor’s fee is fixed or determinable (paragraphs 985-605-25-30 through 25- 40).
d. Collectibility is probable (paragraphs 985-605-25-13 through 25-14 and 985-605-25-30 through 25-40).  Revenues are recognized from product sales upon shipment, which is the point in time when risk of loss is transferred to the customer, net of estimated returns and allowances.  The Company had three sales orders signed for software sales in September 2010, however the software sales were unfinished.  Due to the three hospitals Hyperera intended to install the software are state-owned and need additional approval process for a foreign owned company such as Hyperera (Beijing) Technology Co. Ltd.  to provide our Clinical Information System (CIS) software, our sales orders were still in pending.  According to FASB ASC 985-605-25, there was no software sales revenue recognized.  Accordingly, all software sales entries were reversed, and all other adjustments in the adjusted consolidated financial statements were due to the reverse entries of software sales revenue.  Therefore, the comparative financial statements of prior periods have been adjusted to apply the correct accounting method retrospectively.  The following financial statement line items for the period January 1, 2010 through September 30, 2010 were affected by the change of the financial data.

In the following consolidated financial statements as of September 30, 2010, the error in the previous issued financial statement has adjusted.   The total sales for nine months ended September 30, 2010 were corrected to $162,840; therefore, the total net loss was $93,321.  And the deficit accumulated during the development stage was adjusted to $ (183,565); therefore, the total stockholder’s equity was $491,979 as of September 30, 2010.

 
 

 

HYPERERA, INC
(A Development Stage Enterprise)
CONSOLIDATED BALANCE SHEET

   
September 30
   
September 30
 
   
2010
   
2010
 
   
(Unaudited)
   
(Unaudited)
 
   
As Reported
   
As Adjusted
 
             
ASSETS
           
Current assets:
           
Cash and cash equivalents
  $ 345,036     $ 345,036  
Accounts receivable, net
    191,029       -  
Total Current Assets
  $ 536,065     $ 345,036  
                 
Other current assets:
               
Prepaid expenses
    65,000       65,000  
Stock subscription receivable
    105,144       105,144  
Loan to shareholders/officer
    -       -  
Total Other Current Assets
  $ 170,144     $ 170,144  
                 
TOTAL ASSETS
  $ 706,209     $ 515,180  
                 
LIABILITIES & EQUITY
               
Current liabilities:
               
Account payable
  $ -     $ -  
Loan from shareholders/officer
    98,642       23,201  
Payroll liabilities
    -       -  
Total Current Liabilities
  $ 98,642     $ 23,201  
                 
Stockholders' Equity:
               
Common stock, $0.001 par value; 200,000,000 shares authorized; 30,029,000 shares issued and outstanding.
  $ 30,029     $ 30,029  
Paid-in capital
  $ 646,141     $ 646,141  
Deficit accumulated during the development stage
    (67,977 )     (183,565 )
                 
Accumulated other comprehensive loss
    (626 )     (626 )
                 
Total Stockholders' Equity
  $ 607,567     $ 491,979  
TOTAL LIABILITIES & EQUITY
  $ 706,209     $ 515,180  

 
 

 

HYPERERA, INC
(A Development Stage Enterprise)
CONSOLIDATED STATEMENT OF OPERATION

                            
Cumulative from
   
Cumulative from
 
    
Nine Months
   
Nine Months
   
Three Months
   
Three Months
   
February 19, 2008
(Date
   
February 19, 2008
(Date
 
    
Ended
September 30
   
Ended
September 30
   
Ended
September 30
   
Ended
September 30
   
of Inception)
Through
   
of Inception)
Through
 
    
2010
   
2010
   
2010
   
2010
   
September 30, 2010
   
September 30, 2010
 
    
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
    
As Reported
   
As Adjusted
   
As Reported
   
As Adjusted
   
As Reported
   
As Adjusted
 
Revenues
  $ 461,369     $ 162,840     $ 236,029     $ -     $ 527,387     $ 228,858  
Cost of Goods Sold
    330,941       148,000       152,941       -       390,939       207,998  
Gross Profit
  $ 130,428     $ 14,840     $ 83,088     $ -     $ 136,448     $ 20,860  
Operating Expenses:
                                               
Research and development
    -       -               -       -       -  
                                                 
Selling, general and administrative expenses
    108,163       108,163       31,529       31,529       204,490       204,490  
                                                 
Depreciation and amortization expenses
    -       -               -       -       -  
Total Operating Expenses
  $ 108,163     $ 108,163     $ 31,529     $ 31,529     $ 204,490     $ 204,490  
                                                 
Operating Income (Loss)
  $ 22,265     $ (93,323 )   $ 51,559     $ (31,529 )   $ (68,042 )   $ (183,630 )
                                      -       -  
Investment income, net
  $ 2     $ 2     $ 2     $ 2     $ 65     $ 65  
Interest expense, net
    -       -       -       -       -       -  
Income (loss) before income taxes
    22,267       (93,321 )     51,561       (31,527 )     (67,977 )     (183,565 )
Income tax expense
    -                               -       -  
Net Income (Loss)
  $ 22,267     $ (93,321 )   $ 51,561     $ (31,527 )   $ (67,977 )   $ (183,565 )
                                                 
Net income (loss) per common share- Basics
  $ 0.00     $ (0.00 )   $ 0.00     $ (0.00 )   $ (0.00 )   $ (0.01 )
Net income (loss) per common share- Diluted
  $ 0.00     $ (0.00 )   $ 0.00     $ (0.00 )   $ (0.00 )   $ (0.01 )
Other comprehensive loss, net of tax:
                                               
Foreign currency translation adjustments
    (173 )     (173 )     (26 )     (26 )     (626 )     (626 )
Other comprehensive Income (loss)
  $ (173 )   $ (173 )   $ (26 )   $ (26 )   $ (626 )   $ (626 )
Comprehensive Income (Loss)
  $ 22,094     $ (93,494 )   $ 51,535     $ (31,553 )   $ (68,603 )   $ (184,191 )
                                                 
 
 

 

HYPERERA, INC
(A Development Stage Enterprise)
STATEMENT OF STOCKHOLDERS EQUITY (Unaudited)
The Period February 19, 2008 ( Date of Inception) through September 30, 2010

                      
Deficit
             
As Adjusted
                   
Accumulated
   
Accumulated
       
               
Additional
   
During the
   
Other
   
Total
 
   
Common Stock
   
Paid-in
   
Development
   
Comprehensive
   
Stockholders'
 
   
Shares
   
Amount
   
Capital
   
Stage
   
Income (Loss)
   
Equity
 
Issuance of common stocks to shareholders  @0.001 per share on February 19, 2008
    20,000,000     $ 20,000     $ -     $ -           $ 20,000  
                                               
Issuance of common stocks to shareholders  @0.03 per share on March 31, 2008
    5,200,000     $ 5,200     $ 150,800                   $ 156,000  
                                               
Issuance of common stocks to shareholders  @0.03 per share on April 28, 2008
    1,400,000     $ 1,400     $ 40,600                   $ 42,000  
                                               
Issuance of common stocks to shareholders  @0.03 per share on July 20, 2008
    1,200,000     $ 1,200     $ 34,800                   $ 36,000  
                                               
Issuance of common stocks to Williams @0.03 per share on July 20, 2008
    139,000     $ 139     $ 4,031                   $ 4,170  
                                               
Adjustment for Exchange rate changes
                                  $ (311 )   $ (311 )
                                                 
Net loss for the period ended December 31, 2008
                          $ (51,611 )           $ (51,611 )
Balance, December 31, 2008
    27,939,000     $ 27,939     $ 230,231     $ (51,611 )   $ (311 )   $ 206,248  
                                                 
Issuance of common stocks to shareholders  @0.20 per share on December 15, 2009
    60,000     $ 60     $ 11,940                     $ 12,000  
                                                 
Adjustment for Exchange rate changes
                                  $ (142 )   $ (142 )
                                                 
Net loss for the period ended December 31, 2009
                          $ (38,633 )           $ (38,633 )
Balance, December 31, 2009
    27,999,000     $ 27,999     $ 242,171     $ (90,244 )   $ (453 )   $ 179,473  
                                                 
Issuance of common stocks to shareholders  @0.20 per share on September 30, 2010
    2,030,000     $ 2,030     $ 403,970                     $ 406,000  
                                                 
Adjustment for Exchange rate changes
                                  $ (173 )   $ (173 )
                                                 
Net loss for the period ended September 30, 2010
                          $ (93,321 )           $ (93,321 )
Balance, September 30, 2010
    30,029,000     $ 30,029     $ 646,141     $ (183,565 )   $ (626 )   $ 491,979  

 
 

 

HYPERERA, INC
(A Development Stage Enterprise)
CONSOLIDATED STATEMENT OF CASH FLOWS

                            
Cumulative from
       
   
Nine Months
   
Nine Months
   
Three Months
   
Three Months
   
February 19, 2008
   
Cumulative from
 
   
Ended
September 30
   
Ended
September 30
   
Ended
September 30
   
Ended
September 30
   
(Date of Inception)
to
   
February 19, 2008
(Date of Inception) to
 
   
2010
   
2010
   
2010
   
2010
   
September 30, 2010
   
September 30, 2010
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
   
As Reported
   
As Adjusted
   
As Reported
   
As Adjusted
   
As Reported
   
As Adjusted
 
Operating Activities:
                                   
Net Income (Loss)
  $ 22,267     $ (93,321 )   $ 51,561     $ (31,527 )   $ (67,977 )   $ (183,565 )
Adjustments to reconcile net income to net cash provided by operating activities:
                                               
Non-cash portion of share based legal fee expense
    -       -       -       -       4,170       4,170  
Account receivable
    (191,029 )     -       (138,529 )     -       (191,029 )     -  
Prepaid expenses
    83,600       83,600       110,324       83,600       (65,000 )     (65,000 )
Loan to shareholders/officer
    -       -       -       -       -       -  
Account payable
    -       -       -       -       -       -  
Payroll liabilities
    -       -       -       -       -       -  
Loan from shareholders
    45,011       (30,430 )     13,884       (14,833 )     98,642       23,201  
Net cash provided by operating activities
  $ (40,151 )   $ (40,151 )   $ 37,240     $ 37,240     $ (221,194 )   $ (221,194 )
                                                 
Investing Activities:
                                               
Net cash provided by investing activities
  $ -     $ -     $ -     $ -     $ -     $ -  
                                                 
Financing Activities:
                                               
Proceeds from issuance of common stock
    300,856       300,856       300,856       300,856       566,856       566,856  
Net cash provided by financing activities
  $ 300,856     $ 300,856     $ 300,856     $ 300,856     $ 566,856     $ 566,856  
                                                 
Effect of  Exchange Rate on Cash
  $ (173 )   $ (173 )   $ (26 )   $ (26 )   $ (626 )   $ (626 )
Net increase (decrease) in cash and cash equivalents
  $ 260,532     $ 260,532     $ 338,070     $ 338,070     $ 345,036     $ 345,036  
Cash and cash equivalents at beginning of the year
  $ 84,504     $ 84,504     $ 6,966     $ 6,966     $ -     $ -  
Cash and cash equivalents at end of year
  $ 345,036     $ 345,036     $ 345,036     $ 345,036     $ 345,036     $ 345,036  
                                                 
Supplemental schedule of non-cash investing and financing activities:
                                               
Common stock issued pursuant to stock subscription receivable (Note D)
  $ 105,144     $ -     $ 105,144     $ -     $ 105,144     $ 105,144  

 
 

 

Zhiyong Li, CEO and an authorized officer of the registrant, discussed with the registrant’s board directors and registered independent accountant the matters disclosed in this filing pursuant to this Item 4.02(a).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

 
Hyperera, Inc.  
 
       
Dated:  05/26/2011
By:
/s/ Zhiyong Li
 
   
Zhiyong Li
 
   
Chief Executive Officer