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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.20549


FORM 10-Q


(Mark One)

[X]

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

 

 

For the quarterly period ended: September 30, 2011

 

Or

 

[   ]

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

 

 

For the transition period from ____________ to _____________

 

Commission File Number: 333-140276

 

WHITE DENTAL SUPPLY, INC.

(Exact name of registrant as specified in its charter)

 

Nevada

20-4622782

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

 

 

11677 N. 91ST Place, Scottsdale, AZ

85260

(Address of principal executive offices)

(Zip Code)

 

 

(480) 330-1922

(Registrant's telephone number, including area code)

 

_____________

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


Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 [   ]


Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.:


Large accelerated filer [   ]

Accelerated filer [   ]

Non-accelerated filer [   ]

 (Do not check if a smaller reporting company)

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 [   ]


Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:


Common Stock, $0.001 par value

99,450,000 shares

(Class)

(Outstanding as at November 14, 2011)




WHITE DENTAL SUPPLY, INC.



Table of Contents


 

Page

 

 

PART I - FINANCIAL INFORMATION

3

   Unaudited Financial Statements

3

      Balance Sheets

4

      Statements of Operations

5

      Statements of Cash Flows

6

      Notes to Financial Statements

7

   Management's Discussion and Analysis of Financial Condition and Results of Operation

10

   Controls and Procedures

12

PART II - OTHER INFORMATION

13

   Exhibits and Reports on Form 8-K

13

SIGNATURES

14













2




PART I - FINANCIAL INFORMATION


Unaudited Financial Statements


The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and pursuant to the rules and regulations of the Securities and Exchange Commission ("Commission").  While these statements reflect all normal recurring adjustments which are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto, which are included in the Company's December 31, 2010, Annual Report on Form 10-K, previously filed with the Commission on March 30, 2011.






















3




White Dental Supply, Inc.

(A Development Stage Company)

Balance Sheets



 

September 30,

 

December 31,

 

2011

 

2010

 

(unaudited)

 

(audited)

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

   Cash

$

830

 

$

691

   Deposit

 

30

 

 

30

      Total current assets

 

860

 

 

721

 

 

 

 

 

 

Total assets

$

860

 

$

721

 

 

 

 

 

 

Liabilities and Stockholders’ Deficit

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

   Accounts payable

$

1,617

 

$

577

   Accrued expenses

 

840

 

 

480

   Note payable

 

7,250

 

 

5,000

      Total current liabilities

 

9,707

 

 

6,057

 

 

 

 

 

 

Total liabilities

 

9,707

 

 

6,057

 

 

 

 

 

 

Stockholders’ deficit

 

 

 

 

 

   Preferred stock, $0.001 par value, 100,000,000 shares

 

 

 

 

 

      authorized, no shares issued and outstanding

 

-

 

 

-

   Common stock, $0.001 par value, 100,000,000 shares

 

 

 

 

 

      authorized, 99,450,000 shares issued and outstanding

 

 

 

 

 

      as of 9/30/11 and 12/31/10

 

99,450

 

 

99,450

   Additional paid-in capital

 

66,950

 

 

56,950

   Deficit accumulated during development stage

 

(175,247)

 

 

(161,736)

Total stockholders’ deficit

 

(8,847)

 

 

(5,336)

 

 

 

 

 

 

Total liabilities and stockholders’ deficit

$

860

 

$

721




The accompanying notes are an integral part of these financial statements.





4




White Dental Supply, Inc.

(A Development Stage Company)

Statements of Operations

(Unaudited)


 

Three Months Ended

Nine Months Ended

Inception

 

September 30,

September 30,

(March 29, 2006) to

 

2011

2010

2011

2010

September 30, 2011

 

 

 

 

 

 

Revenue

$              -

$              -

$                -

$              -

$                  1,674

Cost of goods sold

-

-

-

-

1,386

 

 

 

 

 

 

Gross profit

-

-

-

-

288

 

 

 

 

 

 

Expenses:

 

 

 

 

 

   Officers compensation

-

-

1,254

-

11,254

   General and administrative expenses

3,447

2,041

12,207

9,891

84,041

      Total expenses

3,447

2,041

13,461

9,891

95,295

 

 

 

 

 

 

Loss before provision for income taxes

(3,447)

(2,041)

(13,461)

(9,891)

(95,007)

 

 

 

 

 

 

Provision for income taxes

(50)

-

(50)

(50)

(240)

 

 

 

 

 

 

Net loss

$    (3,497)

$  (2,041)

$    (13,511)

$    (9,941)

$             (95,247)

 

 

 

 

 

 

Weighted average number of

 

 

 

 

 

   common shares outstanding - basic

99,450,000

99,450,000

99,450,000

99,450,000

 

 

 

 

 

 

 

Net loss per share - basic

$      (0.00)

$      (0.00)

$        (0.00)

$      (0.00)

 




The accompanying notes are an integral part of these financial statements.





5




White Dental Supply, Inc.

(A Development Stage Company)

Statements of Cash Flows

(Unaudited)


 

For the nine months ended

 

Inception

 

September 30,

 

(March 29, 2006)

 

2011

 

2010

 

September 30, 2011

Operating activities

 

 

 

 

 

Net loss

$     (13,511)

 

$      (9,941)

 

$            (95,247)

Adjustments to reconcile net loss to

 

 

 

 

 

  net cash used by operating activities:

 

 

 

 

 

      Shares issued for services - related party

-

 

-

 

10,000

Changes in operating assets and liabilities:

 

 

 

 

 

      (Increase) in deposits

-

 

-

 

(30)

      Increase in accounts payable

1,040

 

1

 

1,617

      Increase in accrued expenses

360

 

360

 

840

Net cash used by operating activities

(12,111)

 

(9,580)

 

(82,820)

 

 

 

 

 

 

Financing activities

 

 

 

 

 

   Proceeds from contributed capital

10,000

 

10,000

 

31,400

   Proceeds from notes payable

2,250

 

-

 

7,250

   Issuances of common stock

-

 

-

 

45,000

Net cash provided by financing activities

12,250

 

10,000

 

83,650

 

 

 

 

 

 

Net increase in cash

139

 

420

 

830

Cash - beginning of the period

691

 

575

 

-

Cash - ending of the period

$              830

 

$              995

 

$                     830

 

 

 

 

 

 

Supplemental disclosures:

 

 

 

 

 

   Interest paid

$                  -

 

$                   -

 

$                         -

   Income taxes paid

$               50

 

$                50

 

$                    240




The accompanying notes are an integral part of these financial statements.




6




White Dental Supply, Inc.

(A Development Stage Company)

Notes to Financial Statements

(Unaudited)


Note 1 - Basis of presentation


The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).  Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.


These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein.  It is suggested that these interim financial statements be read in conjunction with the audited financial statements of the Company for the period ended December 31, 2010 and notes thereto included in the Company's annual report on Form 10-K.  The Company follows the same accounting policies in the preparation of interim reports.


Results of operations for the interim periods are not indicative of annual results.


Note 2 - History and organization of the company


The Company was organized March 29, 2006 (Date of Inception) under the laws of the State of Nevada, as White Dental Supply, Inc.  The Company is authorized to issue 100,000,000 shares of its $0.001 par value common stock and 100,000,000 shares of its $0.001 par value preferred stock.


The business of the Company is to sell dental supplies through direct marketing and via the internet.  The Company has limited operations and in accordance with FASB ASC 915-10, “Development Stage Entities”, the Company is considered a development stage company.  


Note 3 - Going concern


The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The Company had an accumulated deficit of $175,247 as of September 30, 2011. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.


In order to continue as a going concern, the Company will need, among other things, additional capital resources.  On August 19, 2009, the Company secured a Revolving Line of Credit for $25,000 with a non-related third-party entity, the terms of which are discussed in Note 5 - Debt and Interest Expense.  Nonetheless, the Company is significantly dependent upon its ability, and will continue to attempt, to secure equity and/or debt financing.  There are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern.


The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.





7




White Dental Supply, Inc.

(A Development Stage Company)

Notes to Financial Statements

(Unaudited)


Note 4 -Accounting Policies and Procedures


Basis of Presentation

The financial statements present the balance sheets, statements of operations and cash flows of the Company. The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.  


Use of estimates

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


Loss per share

Net loss per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”.  Basic loss per share is computed by dividing losses available to common stockholders by the weighted average number of common shares outstanding during the period.  Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. The Company had no dilutive common stock equivalents, such as stock options or warrants as of September 30, 2011.


Recent Accounting Pronouncements

The company evaluated all of the other recent accounting updates through ASU 2011-07 and deemed that they would not have a material effect on the financial position, results of operations or cash flows of the Company.


Note 5 - Debt and interest expense


Through September 30, 2011, a non-affiliated third-party loaned the Company an aggregate of $7,250 in cash.  The note bears no interest and is due upon demand.  


On August 19, 2009, the Company entered into a Revolving Line of Credit Promissory Note with a non-related, third party entity for a total of $25,000.  Any principal balance borrowed against the Note accrues interest at a rate of 10% per year.  The entire unpaid balance and interest accrued thereupon are due on December 31, 2011.  As of September 30, 2011, no monies have been borrowed again this line of credit and the outstanding balance is $0.


Note 6 - Stockholders’ deficit


The Company is authorized to issue 100,000,000 shares of its $0.001 par value common stock and 100,000,000 shares of its $0.001 par value preferred stock.


On June 18, 2008, the Board of Directors authorized and declared a forward stock split to be affected in the form of a stock dividend, whereby eight new shares of common stock will be issued for each one existing share of common stock that is outstanding as of June 18, 2008, resulting in a total of nine post-split shares for each pre-split share outstanding, payable on July 17, 2008.  All references to share and per share information in the financial statements and related notes have been adjusted to reflect the stock split on a retroactive basis.   


Through the September 30, 2011, the founding shareholder of the Company donated cash in the amount of $31,400.  The entire amount is considered donated capital and recorded as additional paid-in capital.


As of September 30, 2011, there have been no other issuances of common stock.





8




White Dental Supply, Inc.

(A Development Stage Company)

Notes to Financial Statements

(Unaudited)


Note 7 - Related party transactions


Since the inception of the Company, a shareholder, officer and director of the Company donated cash to the Company in the aggregate amount of $31,400.  This amount has been donated to the Company and is not expected to be repaid and is considered additional paid-in capital.


The Company does not lease or rent any property.  Office services are provided without charge by an officer and director of the Company.  Such costs are immaterial to the financial statements and, accordingly, have not been reflected therein.  The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities.  If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interests.  The Company has not formulated a policy for the resolution of such conflicts.

























9




Management's Discussion and Analysis of Financial Condition and Results of Operation


Forward-Looking Statements


This Quarterly Report contains forward-looking statements about White Dental Supply, Inc.’s business, financial condition and prospects that reflect management’s assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized.  If any of our management’s assumptions should prove incorrect, or if any of the risks and uncertainties underlying such expectations should materialize, White Dental Supply’s actual results may differ materially from those indicated by the forward-looking statements.


The key factors that are not within our control and that may have a direct bearing on operating results include, but are not limited to, acceptance of our services, our ability to expand our customer base, managements’ ability to raise capital in the future, the retention of key employees and changes in the regulation of our industry.


There may be other risks and circumstances that management may be unable to predict.  When used in this Quarterly Report, words such as,  "believes,"  "expects," "intends,"  "plans,"  "anticipates,"  "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions.


Management’s Discussion and Analysis


Results of operations for the three month periods ended September 30, 2011 and 2010


We were incorporated in the State of Nevada on March 29, 2006.  We are a development stage company that sells dental supplies via direct sales to retail customers and industry participants, such as dental hygienists.  During the three month periods ended September 30, 2011 and 2010, we did not generate any revenues, and therefore did not incur any costs associated with sales of products.  We are unable to forecast the amount, if any, of revenues we will generate for the foreseeable future.  We have no recurring customers and no source of guaranteed ongoing revenues.  We have experienced marked difficulty in generating sales.  We believe our lack of revenues during these years is attributable to our lackluster internet experience and thus far ineffective marketing efforts, as well as an inability to secure inventory that is materially different and desirable than is readily available at the majority of retailers.  


For the three months ended September 30, 2011, we incurred operating expenses in the amount of $3,447, all of which is attributable to general and administrative expenses.  General and administrative fees included general office expenses ($202), accounting fees ($2,575) and professional fees ($670) related to legal fees and filing periodic reports to maintain our status as a public reporting company.  In the comparable three month period ended September 30, 2010, we incurred $2,041 in operating expenses.  During the period, accounting fees were $1,000, professional fees of $314 and $727 in general office expenses.  The slight increase year-over-year is primarily attributable to increased accounting fees related to maintaining our public reporting requirements with the SEC.


During the three month periods ended September 30, 2011 and 2010, we recorded provisions for income taxes of $50 and $0, respectively, related to the minimum tax payable to the State of Arizona.  


In the period ended September 30, 2011, our net loss totaled $3,497, compared to a net loss of $2,041 in the comparable three months ended September 30, 2010.  We anticipate incurring ongoing operating losses and cannot predict when, if at all, we may expect these losses to plateau or narrow.  As a result of the foregoing, our independent auditors have expressed substantial doubt about our ability to continue as a going concern in the independent auditors’ report to the financial statements included in our annual report.  If our business fails, our investors may face a complete loss of their investment.  


Results of operations for the nine month periods ended September 30, 2011 and 2010 and from March 29, 2006 (inception) to September 30, 2011


During the nine month periods ended September 30, 2011 and 2010, we did not generate any revenues, and therefore did not incur any costs associated with sales of products.  Since our inception on March 29, 2006 through September 30, 2011, we generated a total of $1,674 in sales.  Total cost of goods sold since our inception to September 30, 2011, is $1,386, resulting in a gross profit of $288 for a historical gross margin of approximately 17%.  



10





We are unable to forecast the amount, if any, of revenues we will generate for the foreseeable future.  We have no recurring customers and no source of guaranteed ongoing revenues.  We have experienced marked difficulty in generating sales.  We believe our lack of revenues during these years is attributable to our lackluster internet experience and thus far ineffective marketing efforts, as well as an inability to secure inventory that is materially different and desirable than is readily available at the majority of retailers.  


For the nine months ended September 30, 2011, we incurred operating expenses in the amount of $13,461, of which $1,254 is attributable to compensation paid to an officer and director and $12,207 in general and administrative expenses.  General and administrative fees included $756 in general office expenses, accounting fees of $9,325 and professional fees of $2,126, related to legal fees and filing periodic reports to maintain our status as a public reporting company.  In the comparable nine month period ended September 30, 2010, we incurred $9,891 in operating expenses.  During the period, general office expenses were $1,504, accounting fees were $6,825, professional fees totaled $1,562.  The increase year-over-year is primarily attributable to increased accounting and professional fees related to maintaining our public reporting requirements with the SEC.


From inception to September 30, 2011, our total operating expenses were $95,247, composed of general and administrative expenses of $84,041 and executive compensation of $11,254, of which $10,000 was paid in the form of 90,000,000 shares of common stock to Nancy White, an officer and director of the Company.  We expect to continue to incur general and administrative expenses for the foreseeable future, although we cannot estimate the extent of these costs.


During the nine month periods ended September 30, 2011 and 2010, we recorded provisions for income taxes of $50 and $50, respectively, related to the minimum tax payable to the State of Arizona.  For the period from our inception to September 30, 2011, we recorded total provisions for income taxes of $240.  


As a result of our minimal revenues and incurring ongoing expenses related to the implementation of our business plan, we have experienced net losses in all periods since our inception on March 29, 2006.  In the period ended September 30, 2011, our net loss totaled $13,511, compared to a net loss of $9,941 in the comparable nine months ended September 30, 2010.  Since our inception, we have accumulated net losses in the amount of $95,247.  We anticipate incurring ongoing operating losses and cannot predict when, if at all, we may expect these losses to plateau or narrow.  As a result of the foregoing, our independent auditors have expressed substantial doubt about our ability to continue as a going concern in the independent auditors’ report to the financial statements included in our annual report.  If our business fails, our investors may face a complete loss of their investment.  


Plan of operation


Over the past several quarters, our operations had been impaired by the state of the general economy.  On August 19, 2009, the Company entered into a Revolving Line of Credit Promissory Note with a non-related, third party entity for a total of $25,000.  Any principal balance borrowed against the Note accrues interest at a rate of 10% per year.  The entire unpaid balance and interest accrued thereupon are due on December 31, 2011.  Since the financing is structured as a loan, we must generate sufficient revenues with which to repay any amount borrowed.  


Unfortunately, despite having secured a line of credit for $25,000, we have been unable to develop a comprehensive strategy to become profitable.  Our management is treading carefully to assure that we do not borrow unnecessary funds or spend any borrowed funds without identifying a repayment horizon.  If we are unable to generate cash flows with which to repay the line of credit, or if we require additional capital to maintain or expand our operations, we may need to sell additional equity or debt securities, which may be on terms unfavorable to us.


Our management does not anticipate the need to hire additional full- or part- time employees over the next 12 months, as the services provided by our current officers and directors appear sufficient at this time.  Our officers and directors work for us on a part-time basis, and are prepared to devote additional time, as necessary.  We do not expect to hire any additional employees over the next 12 months.  


There are no known trends, events or uncertainties that have had or that are reasonably expected to have a material impact on our revenues from continuing operations.  


Our management does not expect to incur research and development costs.




11




We do not have any off-balance sheet arrangements.


We currently do not own any significant plant or equipment that we would seek to sell in the near future.  


We have not paid for expenses on behalf of our directors. Additionally, we believe that this fact shall not materially change.


We currently do not have any material contracts and or affiliations with third parties.


Controls and Procedures


Evaluation of Disclosure Controls and Procedures


As of September 30, 2011, our management, with the participation of our President and Chief Executive Officer and our Senior Vice President and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon that evaluation, our President and Chief Executive Officer and our Chief Financial Officer concluded that, as of September 30, 2011, our disclosure controls and procedures were effective in ensuring that material information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, including ensuring that such material information is accumulated by and communicated to our management, including our President and Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.


Changes in internal controls over financial reporting  


There was no change in our internal controls over financial reporting that occurred during the period covered by this report, which has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.


Limitations on Effectiveness of Controls and Procedures


In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.


















12




PART II - OTHER INFORMATION


Exhibits and Reports on Form 8-K


Exhibit Number

Name and/or Identification of Exhibit

 

 

3

Articles of Incorporation & By-Laws

 

 

 

(a) Articles of Incorporation *

 

 

 

(b) By-Laws *

 

 

10

Revolving Line of Credit Promissory Note **

 

 

31

Rule 13a-14(a)/15d-14(a) Certifications

 

 

 

(a) Nancy White

 

 

 

(b) Michael White

 

 

32

Certification under Section 906 of the Sarbanes-Oxley Act (18 U.S.C. Section 1350)

 

 

*  Incorporated by reference herein filed as exhibits to the Company’s Registration Statement on Form SB-2 previously filed with the SEC on January 29, 2007, and subsequent amendments made thereto.

 

**  Incorporated by reference herein filed as exhibits to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2009, previously filed with the SEC on November 16, 2009.



















13




SIGNATURES


Pursuant to the requirements of the Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


WHITE DENTAL SUPPLY, INC.

(Registrant)

 

Signature

Title

Date

 

 

 

/s/ Nancy White

President and

November 14, 2011

Nancy White

Chief Executive Officer

 

 

 

 

/s/ Michael White

Principal Financial Officer

November 14, 2011

Michael White

 

 

 

 

 

/s/ Michael White

Principal Accounting Officer

November 14, 2011

Michael White

 

 


















14