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EX-23.1 - EXHIBIT 23.1 - VALUE SUISSE INTERNATIONAL INVESTMENTSv302022_ex23-1.htm
EX-10.4 - EXHIBIT 10.4 - VALUE SUISSE INTERNATIONAL INVESTMENTSv302022_ex10-4.htm
EX-10.5 - EXHIBIT 10.5 - VALUE SUISSE INTERNATIONAL INVESTMENTSv302022_ex10-5.htm
EX-4.1 - EXHIBIT 4.1 - VALUE SUISSE INTERNATIONAL INVESTMENTSv302022_ex4-1.htm

As filed with the Securities and Exchange Commission on Registration No. 333-174238

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Amendment No. 3

FORM S-1

 

REGISTRATION STATEMENT UNDER

THE SECURITIES ACT OF 1933

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   5961   27-2383247
State or other jurisdiction   Primary Standard Industrial   (I.R.S. Employer
incorporation or organization   Classification Code Number)   Identification Number)

 

1000 N. West Street

Suite 1200

Wilmington, DE 19801

(302) 295-9322

(Address, including zip code, and telephone number, including area code

of registrant’s principal executive offices)

 

Paul Levine

1000 N. West Street

Suite 1200

Wilmington, DE 19801

(914) 984-5597

(Name, address, including zip code, and telephone number,

including area code, of agent for service)

 

with copies to

Lee W. Cassidy, Esq.

Anthony A. Patel, Esq.

Cassidy & Associates

9454 Wilshire Boulevard

Beverly Hills, California 90212

(202) 387-5400 (949) 673-4525 (fax)

 

Approximate Date of Commencement

of proposed sale to the public: As soon as practicable after the effective date of this Registration Statement.

 

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. x

 

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨

 

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier registration statement for the same offering. ¨

 

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration number of the earlier effective registration statement for the same offering. ¨

 

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 definitions “large accelerated filer,”“accelerated file,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

  Large accelerated filer ¨ Accelerated filed ¨
  Non-accelerated filed  ¨ Smaller reporting company x

 

The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission acting pursuant to said section 8(a), may determine.

 

CALCULATION OF REGISTRATION FEE

 

           Proposed     Proposed         
    Amount      Maximum     Maximum     Amount of   
Title of Each Class of   to be     Offering Price     Aggregate     Registration  
Securities to be Registered   Registered     Per Unit (1)     Offering Price     Fee (2)  
Selling Shareholders   3,974,800 shares     $ 0.50     $ 1,987,400     $ 228  

 

(1)      There is no current market for the securities and the price at which the Shares are being offered has been arbitrarily determined by the Company and used for the purpose of computing the amount of the registration fee in accordance with Rule 457 under the Securities Act of 1933, as amended.

(2)       $1,156 previously paid by electronic transfer.

 

EXPLANATORY NOTE

 

This registration statement and the prospectus therein covers the registration of 3,974,800 shares of common stock offered by the holders thereof.

 

 

 

The information contained in this prospectus is not complete and may be changed. A registration statement relating to these securities has been filed with the Securities and Exchange Commission and these securities may not be sold until that registration statement becomes effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

 

PROSPECTUS Subject to Completion, Dated ______, 2012

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

3,974,800 shares of Common Stock offered by selling shareholders at $0.50 per share

 

This prospectus relates to the offer and sale of 3,974,800 shares of common stock (the “Shares”) of Value Suisse International Investments, Inc. (the “Company”), $0.0001 par value per share, offered by the holders thereof (the “Selling Shareholders”). The Selling Shareholders will offer and sell Shares at a price of $0.50 per share or at prevailing market or privately negotiated prices, including (without limitation) in one or more transactions that may take place by ordinary broker's transactions, privately-negotiated transactions or through sales to one or more dealers for resale. There can be no assurance that the securities of the Company will ever be traded or quoted on a national securities exchange or on the OTC Bulletin Board.

 

The maximum number of Shares that can be sold pursuant to the terms of this offering by Selling Shareholders is (in aggregate) 3,974,800. The Company will not receive any proceeds from the sale of the Shares by the Selling Shareholder Shares.

 

The offering will terminate twenty-four (24) months from the date that the registration statement relating to the Shares is declared effective, unless earlier fully subscribed or terminated by the Company. The Company intends to maintain the current status and accuracy of this prospectus and to allow Selling Shareholders to offer and sell the Shares for a period of up to two (2) years, unless earlier completely sold, pursuant to Rule 415 of the General Rules and Regulations of the Securities and Exchange Commission. All costs incurred in the registration of the Shares are being borne by the Company.

 

Prior to this offering, there has been no public market for the Company’s common stock. No assurances can be given that a public market will develop following completion of this offering or that, if a market does develop, it will be sustained. The offering price for the Shares has been arbitrarily determined by the Company and does not necessarily bear any direct relationship to the assets, operations, book or other established criteria of value of the Company. The Shares will become tradable on the effective date of the registration statement of which this prospectus is a part.

 

Neither the Company nor any Selling Shareholders has any current arrangements nor entered into any agreements with any underwriters, broker-dealers or selling agents for the sale of the Shares. If the Company or Selling Shareholders can locate and enter into any such arrangement(s), the Shares will be sold through such licensed underwriter(s), broker-dealer(s) and/or selling agent(s).

 

  Assumed Price  
  To Public  
Per Common Stock Share    
Offered by Company $0.50 per share  

 

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

 

These securities involve a high degree of risk. See “RISK FACTORS” contained in this prospectus beginning on page 6.

 

Value Suisse International Investments, Inc.

1000 N. West Street

Suite 1200

Wilmington, DE 19801

(302) 295-9322

 

Prospectus dated __________________, 2012

 

2
 

 

TABLE OF CONTENTS

 

Prospectus Summary   4
Risk Factors   6
Forward Looking Statements   12
Determination of Offering Price   12
Dividend Policy   12
Selling Shareholder Sales.   12
Plan of Distribution   12
Description of Securities   13
The Business   15
The Company   20
Plan of Operation   22
Management's Discussion and Analysis of Financial Condition and Results of Operations   22
Management   25
Executive Compensation   26
Security Ownership of Certain Beneficial Owners and Management   27
Certain Relationships and Related Transactions   27
Selling Shareholders   28
Shares Eligible for Future Sales   30
Legal Matters   31
Experts   31
Disclosure of Commission Position of Indemnification for Securities Act Liabilities   31
Financial Statements   32

 

 

 

3
 

 

PROSPECTUS SUMMARY

 

This summary highlights some information from this prospectus, and it may not contain all the information important to making an investment decision. A potential investor should read the following summary together with the more detailed information regarding the Company and the common stock being sold in this offering, including “Risk Factors” and the financial statements and related notes, included elsewhere in this prospectus.

 

The Company

 

History

 

The Company is a development stage company whose objective is to build, operate and manage e-commerce websites. The Company was incorporated in the State of Delaware in June 2009. On April 8, 2010, the Company and Value Suisse Investments AG, a Swiss corporation (“Value Suisse AG”) entered into an asset exchange agreement (the “Asset Exchange”). Pursuant to the Asset Exchange, certain assets of Value Suisse AG were transferred to the Company in exchange for shares of common stock of the Company.

 

The assets of Value Suisse AG transferred to the Company pursuant to the Asset Exchange included: (a) the complete and fully operating online messaging system named Joy-Vita.com, including all right and title and interest to the domain name ownership and source code ownership and all information and references concerning such messaging system including, but not limited to, operational manuals, research logs and materials, instructions, design information, computer, internet and intellectual data, drawings, drafts, hardware, ancillary software, reference materials, memoranda, and all and any related or associated document, drawing, intellectual information data, design or other related information. (www.joy-vita.com); (b) the complete and fully operating online marketing system named V-points.com, including all right and title and interest to the domain name ownership and source code ownership and all information and references concerning such marketing system including, but not limited to, operational manuals, research logs and materials, instructions, design information, computer, internet and intellectual data, drawings, drafts, hardware, ancillary software, reference materials, memoranda, and all and any related or associated document, drawing, intellectual information data, design or other related information. (www.v-points.com); and (c) the complete and fully operating online industrial and agricultural directory, currently under development, including the domain name, data, and source code ownership and all information and references concerning such directory including, but not limited to, operational manuals, research logs and materials, instructions, design information, computer, internet and intellectual data, drawings, drafts, hardware, ancillary software, reference materials, memoranda, and all and any related or associated document, drawing, intellectual information data, design or other related information. (www.exactapages.com)

 

Business

 

The Company plans to build, operate and manage e-commerce websites. The basis of the Company’s overall business is founded on the ability to connect parties using the internet to facilitate commercial transactions. The Company’s potential customers include internet users, manufacturers, retailers, wholesalers and service providers.

 

The Company is in the process of launching its first three (3) websites: V-Points (www.v-points.com), JoyVita (www.joy-vita.com) and Exacta Pages (www.exactapages.com). In the future, the Company may build and launch additional e-commerce websites, however, no plans currently exist to launch additional websites.

 

V-Points is a program that connects loyal customers with a selected group of online retailers. Customers receive an opportunity to save money by redeeming shopping points for cash, while retailers can benefit from a promotional tool that gives access to a new and motivated target market. The Company aims to foster a community of small and medium size businesses that share a large customer base while developing a loyal community of shoppers.

 

JoyVita is an online communication platform, designed to connect experts with those who need their help. The JoyVita platform has been tailored in order to make the transaction of knowledge between the parties by attempting to simulate a face-to-face meeting and personalizing the overall user experience. With experts ranging from mental health counselors to information technology experts, and from cardiologists to fortune tellers, JoyVita aims to be a one-stop resource for any professional advice that one may need.

 

Exacta Pages is an online shopping environment that provides consumers direct access to manufacturers and suppliers. With direct connections between buyers and sellers from all over the world for interactive trade, Exacta Pages will strive to provide opportunities for better pricing, selection and choices of goods for consumers. Exacta Pages aims to host an online shopping environment that provides users with convenience, speed, selection and confidence.

 

4
 

  

Risks and Uncertainties facing the Company

 

As a development stage company, the Company has no operating history and has continuously experienced losses since its inception. The Company needs to create a source of revenue or locate additional financing in order to continue its developmental plans. As a development stage company, management of the Company has no prior experience in building and marketing online solutions and services similar to that of the Company and in marketing and distributing such solutions and services on a broad scale.

 

One of the biggest challenges facing the Company is identifying and targeting effective sales, marketing and distribution strategies. As a developing company, the Company is in the process of identifying and targeting potential distributors and marketers of its solutions and services in order to reach the intended end users for the same. To reach potential end customers, the Company will need to have an effective sales, marketing and distribution strategy.

 

Due to financial constraints, the Company has to date conducted limited advertising and marketing to reach end customers. If the Company is unable to develop strong and reliable sources of potential end users and a means to efficiently reach buyers and customers for its solutions and services, it is unlikely that the Company will be able to develop its operations to return revenue sufficient to further develop its business plan. Moreover, the above assumes that the Company’s solutions and services are met with satisfaction by all relevant parties in the online marketplace and exhibit steady adoption of the Company’s solutions and services by potential customer base, neither of which is currently known or guaranteed.

 

The Company’s independent auditors have issued a report questioning the Company’s ability to continue as a going concern.

 

Trading Market

 

Currently, there is no trading market for the securities of the Company. The Company intends to initially apply for admission to quotation of its securities on the OTC Bulletin Board as soon as possible which may be while this offering is still in process. There can be no assurance that the Company will qualify for quotation of its securities on the OTC Bulletin Board. See “RISK FACTORS” and “DESCRIPTION OF SECURITIES”.

 

The Offering

 

The maximum number of Shares that can be sold pursuant to the terms of this offering is 3,974,800. The offering will terminate twenty-four (24) months from the date of this prospectus unless earlier fully subscribed or terminated by the Company.

 

This prospectus relates to the offer and sale by certain shareholders of the Company of up to 3,974,800 Shares. The selling shareholders will offer their shares at a price of $0.50 per share or at prevailing market or privately negotiated prices, including (without limitation) in one or more transactions that may take place by ordinary broker's transactions, privately-negotiated transactions or through sales to one or more dealers for resale. There can be no assurance that the securities of the Company will ever be traded or quoted on a national securities exchange or on the OTC Bulletin Board.

 

Common stock outstanding before the offering     19,388,252 (1)  
         
Common stock for sale by selling shareholders     3,974,800  
         
Common stock outstanding after the offering     19,388,252  
         
Offering Price     $0.50 per share  
         
Proceeds to the Company   $ 0  

 

(1) Based on number of shares outstanding as of the date of this prospectus.

 

The Company will not receive any proceeds from any sale of the Shares.

 

5
 

 

Summary Financial Information

 

 

The statement of operations data for the period ended September 30, 2011 and September 30, 2010, and the balance sheet data at September 30, 2011, are derived from the Company’s unaudited consolidated financial statements and related notes thereto included elsewhere in this prospectus. The statements of operations data for the year ended December 31, 2010 and the period from June 4, 2009 (inception) to December 31, 2009, and the balance sheet data at December 31, 2010 and 2009, are derived from the Company’s audited consolidated financial statements and related notes thereto included elsewhere in this prospectus.

 

    Nine months ended September 30, 2011     Nine months ended September 31, 2010  
   (unaudited)    (unaudited)  
Statement of operations data            
Revenue   $ 0     $ 0  
Net loss   $ (1,805,486 )   $ (76,028 )
Net loss per share, basic and diluted     (0.093 )     (0.004 )
Weighted average number of shares outstanding, weighted and diluted     19,367,254       19,057,300  

 

    Year ended December 31, 2010     June 4, 2009 (inception) to Dec. 31, 2009  
Statement of operations data                
Revenue   $ 0     $ 0  
Net loss   $ (137,736 )   $ (70,000 )
Net loss per share, basic and diluted     (0.01 )     -  
Weighted average number of shares outstanding, weighted and diluted     19,057,300       -  

 

    At September 30, 2011     At December 31, 2010     At December 31, 2009  
   (unaudited)              
Balance sheet data                        
Cash and cash equivalents   $ 960     $ 84,410     $ 0  
Total assets   $ 33,772     $ 1,781,766     $ 0  
Total liabilities   $ 35,678     $ 19,132     $ 10,000  
Total stockholders’ equity (deficit)   $ (1,906 )   $ 1,762,734     $ (10,000 )

 

RISK FACTORS

 

A purchase of any Shares is an investment in the Company’s common stock and involves a high degree of risk. Investors should consider carefully the following information about these risks, together with the other information contained in this prospectus, before the purchase of the Shares. If any of the following risks actually occur, the business, financial condition or results of operations of the Company would likely suffer. In this case, the market price of the common stock could decline, and investors may lose all or part of the money they paid to buy the Shares.

 

The Company has no revenues to date.

 

The Company has generated no revenues to date. To date, most of management’s time and the Company’s limited resources have been spent developing strategy, researching potential opportunities, contacting partners, exploring marketing contacts, establishing operations and management personnel and resources, preparing its business plan and model, selecting professional advisors and consultants and seeking capital for the Company.

 

The Company’s independent auditors have issued a report questioning the Company’s ability to continue as a going concern.

 

In their report on the Company’s audited consolidated financial statements, the Company’s independent auditors have issued a report with an explanatory paragraph stating that, unless the Company is able to develop and market its products or obtain financing from other sources, there is a substantial doubt as to the Company’s ability to continue as a going concern.

 

The Company has not sold any meaningful quantity of products or services to date and is only in the process of launching its websites.

 

Since inception, the Company has heretofore not sold any meaningful number of products or services. There is no assurance that the Company will ever successfully sell any products or services.

 

6
 

 

There is no guarantee that, even if the Company can develop, operate and manage its websites, the websites will be accepted in the marketplace

 

Even if the Company can successfully develop, operate and manage e-commerce websites, there can be no assurance that such websites will have any commercial advantages or that customers will have any interest in the websites. Also, there is no assurance that the websites or their e-commerce services and solutions will perform as intended in the marketplace.

 

There is no assurance that there will ever be demand for the Company’s solutions and services.

 

The Company has not obtained any third party marketing survey to confirm or highlight the Company’s position that its offerings will be marketable. No independent marketing survey has been performed to determine the potential demand for the Company’s e-commerce solutions and services. The Company has conducted only limited marketing studies, which indicate that its offerings would potentially be marketable. However, no assurances can be given that upon marketing, sufficient markets can be developed to sustain the Company's operations on a continued basis.

 

The Company is a development stage company with no operating history of its own, and as such, any prospective investor cannot evaluate the Company’s profitability or performance.

 

Because the Company is a development stage company with no operating history, it is impossible for an investor to evaluate the performance of the Company or to determine whether the Company will meet its projected business plan. The Company has limited financial results upon which an investor may judge its potential. As a company emerging from the development stage, the Company may in the future experience under-capitalization, shortages, setbacks and many of the problems, delays and expenses encountered by any early stage business. An investor will be required to make an investment decision based solely on the Company’s management and the Company’s projected operations in light of the risks, expenses and uncertainties that may be encountered by engaging in the Company’s industry.

 

The Company is a development stage company and lacks appropriate finance and accounting support. Being a public company may strain the Company's resources, divert management’s attention and affect its ability to attract and retain qualified directors.

 

The Company is a development stage company, with a finance and accounting department that has been geared toward its operations as a small privately owned company. However, the rigorous demands of being a public reporting company will require a qualified finance and accounting group. As a public company, the Company may become subject to the reporting requirements of the Securities Exchange Act of 1934 (“Securities Exchange Act”) and the requirements of Sarbanes Oxley Section 404(a). The requirements of these laws and the rules and regulations promulgated thereunder entail significant accounting, legal and financial compliance costs, and have made, and will continue to make, some activities more difficult, time-consuming or costly and may place significant strain on the Company's personnel, systems and resources.

 

The Securities Exchange Act requires, among other things, that the Company may need to maintain effective disclosure controls and procedures and internal control over financial reporting. In order to establish the requisite disclosure controls and procedures and internal control over financial reporting, significant resources and management oversight could be required. As a result, management’s attention may be diverted from other business concerns, which could have a material adverse effect on the Company's business, financial condition and results of operations.

 

These rules and regulations may also make it difficult and expensive for the Company to obtain director and officer liability insurance. If the Company is unable to obtain adequate director and officer insurance, its ability to recruit and retain qualified officers and directors, especially those directors who may be deemed independent, will be significantly curtailed.

 

The Company may be subject to limited ongoing reporting obligations which would provide less reporting and information about the Company to investors on a regular basis

 

Depending on how the common stock of the Company is registered under the Securities Exchange Act and other applicable factors, the Company may be subject to lesser periodic reporting requirements and may not be required to meet the full reporting company requirements. If the Company is not a fully reporting company, the Company will have lesser reporting obligations and consequently investors may receive less ongoing information about the Company than they would in a full reporting company.

 

7
 

 

Furthermore, if the Company has a low number of shareholders, or for other applicable reasons, it is possible that the Company could be suspended from being even a limited reporting company. In such a situation, investors would not receive regular reports of any type from the Company and could potentially receive very little information and disclosure from the Company.

 

The Company is a development stage company and has little experience in commercializing its solutions and services.

 

The Company is a development stage company and as such has little experience in commercializing solutions and services and managing a public company. Such lack of experience may result in the Company experiencing difficulty in adequately operating and growing its business. Further, the Company may be hampered by lack of experience in addressing the operational issues and considerations which are common to growing online companies. If the Company’s operating or management abilities consistently perform below expectations, the Company’s business is unlikely to thrive. In addition, the Company’s lack of experience may result, in spite of the successful website development and commercialization, in difficulty managing the operations and finances of a public company.

 

Reliance on third party agreements and relationships is necessary for development of the Company's business, thus exposing the Company to third-party risks outside of its control.

 

The Company will need third party relationships with retailer, manufacturers and sellers of products and services in order to develop and grow its business. The Company will be substantially dependent on these strategic partners and third party relationships. To date, the Company has not entered into any such relationships. Without entering into such relationships (and maintaining them), the Company’s ability to operate and grow its business could be in significant jeopardy.

 

The Company expects to incur additional expenses and may ultimately never be profitable.

 

The Company is a development stage company, has limited operations and may encounter difficulties in financing its development and operations. As of September 30, 2011, the Company had accumulated losses of $2,013,222. In addition, the Company will need to begin generating revenue to achieve and maintain profitability. To become profitable, the Company must successfully develop, operate and manage its e-commerce websites, a process that involves many factors that are beyond the Company’s control, including the type of competition that the Company may encounter. Ultimately, in spite of the Company’s best or reasonable efforts, the Company may never actually generate revenues or become profitable.

 

If the Company is unable to generate sufficient cash from operations, it may find it necessary to curtail development and operational activities.

 

The Company has an extensive business plan hinged on its ability to develop and commercialize its e-commerce websites. If the Company is unable to develop and/or commercialize its websites, then it would not be able to proceed with its business plan or possibly to successfully develop its planned operations at all.

 

The proposed operations of the Company are speculative.

 

The success of the proposed business plan of the Company will depend to a great extent on the operations, financial condition and management of the Company. Although the Company has a business plan and intends to execute its overall business strategy, limited operations have been conducted to date. As no revenues have been earned to date, the proposed operations of the Company remain speculative.

 

The Company’s founder, chief executive officer and sole director beneficially owns and may continue to own a majority portion of the Company’s common stock and, as a result, can exercise control over stockholder and corporate actions.

 

Mr. Mohammed A. AbuTaha, the Founder, President and Chief Executive Officer of the Company and its sole Board member, is currently the beneficial owner of approximately 93% of the Company’s outstanding common stock and assuming sale of all the Shares, will still own approximately 79% of the Company's then outstanding common stock upon closing of the offering. As such, he will be able to control most matters requiring approval by stockholders, including the election of directors and approval of significant corporate transactions. This concentration of ownership may also have the effect of delaying or preventing a change in control, which in turn could have a material adverse effect on the market price of the Company’s common stock or prevent stockholders from realizing a premium over the market price for their Shares. In addition, as the sole director of the Company, Mr. AbuTaha controls the Board and policies and committees (if any) of the Board.

 

8
 

 

The Company depends on its management team to manage its business effectively, and loss of management could seriously obstruct the ability of the Company to function.

 

The Company's future success is dependent in large part upon its ability to understand and develop the business plan and to attract and retain highly skilled management, operational and executive personnel. In particular, due to the relatively early stage of the Company's business, its future success is highly dependent on its officers to provide the necessary experience and background to execute the Company's business plan. The loss of any officer’s services, particularly those of Mr. AbuTaha, would seriously impede, particularly initially, as the Company builds a record and reputation, its ability to develop its objectives, particularly in its ability to develop a successful strategy to develop, market and monetize its solutions and services, and as such would negatively impact the Company's possible development.

 

Government regulation could negatively impact the business.

 

The Company’s products may be subject to various government regulations in the jurisdictions in which they operate. Due to the potential wide geographic scope of the Company’s operations, the Company could be subject to regulation by political and regulatory entities throughout the United States, including various local and municipal agencies and government sub-divisions, and various foreign governments and political subdivisions thereof. The Company may incur increased costs necessary to comply with existing and newly adopted laws and regulations or penalties for any failure to comply. The Company’s operations could be adversely affected, directly or indirectly, by existing or future laws and regulations relating to its business or industry.

 

There has been no prior public market for the Company’s securities and the lack of such a market may make resale of the stock difficult.

 

No prior public market has existed for the Company’s securities and the Company cannot assure any investor that a market will develop subsequent to this offering. An investor must be fully aware of the long-term nature of an investment in the Shares. The Company intends to apply for quotation of its common stock on the OTC Bulletin Board as soon as possible, which may be while this offering is still in process. However, the Company does not know if it will be successful in such application, how long such application will take, or, whether if successful, a market for the common stock will ever develop or continue on the OTC Bulletin Board. If for any reason the common stock is not listed on the OTC Bulletin Board or a public trading market does not otherwise develop, investors in the offering may have difficulty selling their common stock should they desire to do so. If the Company is not successful in its application for quotation on the OTC Bulletin Board, it will apply to have its securities quoted by the Pink OTC Markets, Inc., a real-time quotation service for over-the-counter equities.

 

The Company does not intend to pay dividends to its stockholders, so investors will not receive any return on investment in the Company prior to selling their interest in it.

 

The Company does not project paying dividends but anticipates that it will retain future earnings for funding the Company’s growth and development. Therefore, investors should not expect the Company to pay dividends in the foreseeable future. As a result, investors will not receive any return on their investment prior to selling their Shares in the Company, if and when a market for such Shares develops. Furthermore, even if a market for the Company’s securities does develop, there is no guarantee that the market price for the Shares would be equal to or more than the initial per share investment price paid by any investor. There is a possibility that the Shares could lose all or a significant portion of their value from the initial price paid in this offering.

 

The Company’s stock may be considered a penny stock and any investment in the Company’s stock will be considered a high-risk investment and subject to restrictions on marketability.

 

If the Shares commence trading, the trading price of the Company's common stock may be below $5.00 per share. If the price of the common stock is below such level, trading in its common stock would be subject to the requirements of certain rules promulgated under the Securities Exchange Act of 1934, as amended. These rules require additional disclosure by broker-dealers in connection with any trades generally involving any non-NASDAQ equity security that has a market price of less than $5.00 per share, subject to certain exceptions. Such rules require the delivery, before any penny stock transaction, of a disclosure schedule explaining the penny stock market and the risks associated therewith, and impose various sales practice requirements on broker-dealers who sell penny stocks to persons other than established customers and accredited investors (generally institutions). For these types of transactions, the broker-dealer must determine the suitability of the penny stock for the purchaser and receive the purchaser’s written consent to the transactions before sale. The additional burdens imposed upon broker-dealers by such requirements may discourage broker-dealers from effecting transactions in the Company’s common stock which could impact the liquidity of the Company’s common stock.

 

9
 

 

The Company may face significant competition from companies that serve its industries.

 

The Company may face competition from other companies that offer similar e-commerce solutions and services, ranging from small online retailers to major online and offline companies. Some of these potential competitors may have longer operating histories, greater brand recognition, larger client bases and significantly greater financial, technical and marketing resources than the Company does. These advantages may enable such competitors to respond more quickly to new or emerging technologies and changes in customer preferences. These advantages may also allow them to engage in more extensive research and development, undertake extensive far-reaching marketing campaigns, adopt more aggressive pricing policies and make more attractive offers to potential customers, employees and strategic partners. The Company believes that its current and anticipated solutions and services are, and will be, sufficiently different from existing competition. It is possible that potential competitors may have or may rapidly acquire significant market share from the Company. Increased competition may result in price reductions, reduced gross margin and loss of market share. The Company may not be able to compete successfully, and competitive pressures may adversely affect its business, results of operations and financial condition.

 

The Company’s industry is characterized by low barriers to entry.

 

The e-commerce marketplace and online retail sector are typically characterized by low barriers to entry. New entrants can easily enter the industry and low start-up costs and industry relationships are typically required in order to enter the sector. If new entrants offer novel services or solutions, such new entities can easily bring their services and solutions to the marketplace due to the low costs and barriers associated with launching a new online commercial solution.

 

The Company expects that it will have to continue to innovate and develop additional solutions and services in order to continue building and managing its business.

 

The Company has not completed the development of a full e-commerce solutions and services line, and further, it anticipates a continuing need to develop additional solutions and services. No assurance can be given that the solutions and services can be developed to implementation or that they will achieve commercially viable sales levels.

 

The time devoted by Company management may not be full-time.

 

It is anticipated that key officers will devote themselves full-time to the business of the Company. However, certain officers may devote only such time as is necessary (which may be less than full-time) to fulfill their respective duties as an officer of the Company. Specifically, Mr. AbuTaha devotes (on average) only approximately 30 hours per week to the affairs of the Company. Furthermore, the Company may choose not to require its management to be available or provide services on a full-time basis to the Company.

 

The Company has authorized the issuance of preferred stock with certain preferences that could operate to the detriment of the holders of and Shares

 

The board of directors of the Company is authorized to issue up to 20,000,000 shares of $0.0001 par value preferred stock. The board of directors has broad authority with respect to preferred stock, including the power to establish the dividend rates, liquidation preferences, and voting rights of any series of preferred stock, and these rights may be superior to the rights of holders of the Shares. The board of directors may also establish redemption and conversion terms and privileges with respect to any shares of preferred stock. Any such preferences may operate to the detriment of the rights of the holders of the Shares, and further, could be used by the board of directors as a device to prevent a change in control of the Company. No such preferred shares or preferences have been issued to date, but such shares or preferences may be issued at a later time, subject to the sole discretion of the board of directors.

 

The Company does not maintain certain insurance, including errors and omissions and indemnification insurance.

 

The Company has limited capital and, therefore, does not currently have a policy of insurance against liabilities arising out of the negligence of its officers and directors and/or deficiencies in any of its business operations. Even assuming that the Company obtained insurance, there is no assurance that such insurance coverage would be adequate to satisfy any potential claims made against the Company, its officers and directors, or its business operations or products. Any such liability which might arise could be substantial and may exceed the assets of the Company. The certificate of incorporation and by-laws of the Company provide for indemnification of officers and directors to the fullest extent permitted under Delaware law. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons, it is the opinion of the Securities and Exchange Commission that such indemnification is against public policy, as expressed in the Securities Act, and is therefore, unenforceable.

 

10
 

 

Intellectual property and/or trade secret protection applied for by the Company may be inadequate.

 

The Company has applied for intellectual property protection on certain aspects of its business. Additionally, it possesses certain proprietary business processes and trade expertise. The Company plans on attempting to obtain patents, copyright, trademarks and service marks on its solutions and services. However, there can be no assurance that the Company can obtain effective protection against unauthorized duplication or the introduction of substantially similar solutions or services or that existing patent, trade secret or other intellectual property protection adequately protects the Company.

 

The Company intends to file for foreign intellectual property protection, but such efforts may be inadequate.

 

The Company plans to file and attempt to obtain intellectual property protection for its e-commerce solutions and services in foreign countries. However, even if the Company files required trademark applications in most or all foreign countries, there can be no assurance that any such trademark will be granted or, if granted, that the validity of such trademark will not be contested in the courts. To the extent that such trademark is valid, there can further be no assurance the trademark will fully protect the Company and that a third party may not find other ways to exploit the intellectual property that the trademark purports to protect. To date, no trademark application has been filed outside of the United States, and no copyrights or patents have been filed in any jurisdiction worldwide. The Company or others intend to file additional applications, but there is no assurance that, if such additional applications are filed in foreign countries, any trademark or intellectual property right will be granted or, if granted, that the validity of such trademark or right will not be challenged in the courts, and to the extent granted and valid, that the trademark or other intellectual property right will adequately protect the Company.

 

The Company is subject to the potential factors of obsolescence and technological change.

 

The business of the Company is susceptible to rapidly changing technology and the Company’s e-commerce solutions and services and their associated processes are all subject to constant change. Although the Company intends to continue to develop and improve its e-commerce solutions, services and capabilities, there can be no assurance that funds for such expenditures will be available or that the Company’s competition will not develop similar or superior capabilities or that the Company will be successful in its internal efforts. The future success of the Company will depend in part on its ability to respond effectively to rapidly changing technologies, industry standards and customer requirements by adapting and improving the performance features and reliability of its services and solutions. Failure to enhance the Company’s websites and maintain the Company’s offerings consistent with new technical developments will reduce traffic and thus affect the Company’s business negatively.

 

The offering price of the Shares has been arbitrarily determined by the Company and such offering should not be used by an investor as an indicator of the fair market value of the Shares

 

Currently there is no public market for the Company’s common stock. The offering price for the Shares has been arbitrarily determined by the Company and does not necessarily bear any direct relationship to the assets, operations, book or other established criteria of value of the Company. Thus an investor should be aware that the offering price does not reflect the fair market price of the Shares.

 

The costs of maintaining hardware could be significant, and unexpected expenses could hamper the Company’s financial performance and standing.

 

The Company utilizes, and plans to use, state-of-the-art hardware, which is expensive to maintain. Unexpected maintenance costs and upkeep of hardware may adversely affect the Company’s financial situation.

 

The Company’s financial performance is subject to seasonality and wide fluctuations in performance.

 

The Company expects seasonality to cause substantial variances in financial performance over the calendar yet. Shopping varies by time of the year, and the Company expects its business to encounter seasonal trends and fluctuations similar to other e-commerce and online retail businesses. Uneven financial performance may strain the Company’s resources.

 

Negative trends in e-commerce generally and overall online consumer behavior may have negative effects on the Company’s business and financial performance.

 

Negative general trends or changes in online consumer preferences could have significant adverse effects on the Company’s business and financial performance. If consumers in aggregate generally began to spend less money online, such circumstances would likely lead to lower revenues for the Company.

 

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The Company may complete a primary offering for Shares in parallel with or immediately following this offering, which may dilute purchasers of Shares in this offering .

 

The Company may conduct a primary offering for Shares to raise proceeds for the Company. Such an offering may be conducted in parallel with or immediately following this offering. Sales of additional Shares will dilute the percentage ownership of existing shareholders in the Company.

 

The Company is pursuing several different business lines, and the focus on multiple segments may detract from the Company’s ability to be successful in any particular segment.

 

The Company is operating different business segments. Due to the limited financial resources of the Company, the focus on multiple initiatives may deplete resources and also detract from the ability of the Company to become successful and profitable in any one line of business.

 

Forward-Looking Statements

 

This prospectus contains, in addition to historical information, certain information, assumptions and discussions that may constitute forward-looking statements. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those projected or anticipated. Actual results could differ materially from those projected in the forward-looking statements. Although the Company believes its assumptions underlying the forward-looking statements are reasonable, the Company cannot assure an investor that the forward-looking statements set out in this prospectus will prove to be accurate. The Company’s businesses can be affected by, without limitation, such things as natural disasters, economic trends, international strife or upheavals, consumer demand patterns, labor relations, existing and new competition, consolidation, and growth patterns within the industries in which the Company competes and any deterioration in the economy may individually or in combination impact future results.

 

DETERMINATION OF OFFERING PRICE

 

There is no public market for the Company’s common stock and the price at which the Shares are being offered has been arbitrarily determined by the Company. This price does not necessarily bear any direct relationship to the assets, operations, book or other established criteria of value of the Company but represents solely the arbitrary opinion of management of the Company.

 

DIVIDEND POLICY

 

The Company does not anticipate that it will declare dividends in the foreseeable future but rather intends to use any future earnings for the development of its business.

 

SELLING SHAREHOLDERS SHARES

 

This prospectus also relates to the sale of 3,974,800 outstanding shares of the Company’s common stock by the holders of those shares. The selling shareholders will offer their shares for sale at an offering price of $0.50 per share or at prevailing market or privately negotiated prices, including (without limitation) in one or more transactions that may take place by ordinary broker's transactions, privately-negotiated transactions or through sales to one or more dealers for resale. There can be no assurance that the securities of the Company will ever be traded or quoted on a national securities exchange or on the OTC Bulletin Board

 

Usual and customary or specifically negotiated brokerage fees or commissions may be paid by the selling shareholders in connection with sales of the common stock. The selling shareholders may from time to time offer their shares through underwriters, brokers-dealers, agents or other intermediaries. The distribution of the common stock by the selling shareholders may be effected in one or more transactions that may take place through customary brokerage channels, in privately negotiated sales; by a combination of these methods; or by other means. The Company will not receive any portion or percentage of any of the proceeds from the sale of the selling shareholders’ Shares.

 

PLAN OF DISTRIBUTION

 

The Company and the selling shareholders are seeking an underwriter, broker-dealer or selling agent to sell the Shares. Neither the Company nor the selling shareholders have entered into any arrangements with any underwriter, broker-dealer or selling agent as of the date of this prospectus. At the time of this prospectus, neither the Company nor the selling shareholders has located a broker-dealer or selling agent to sell the Shares.

 

12
 

 

The Company intends to maintain the currency and accuracy of this prospectus and to permit offers and sales of the Shares for a period of up to two (2) years, unless earlier completely sold, pursuant to Rule 415 of the General Rules and Regulations of the Securities and Exchange Commission.

 

Pursuant to the provisions of Rule 3a4-1 of the Securities Exchange Act of 1934, none of the officers or directors offering the Shares is considered to be a broker of such securities as (i) no officer or director is subject to any statutory disqualification, (ii) no officer or director is nor will be compensated by commissions for sales of the securities, (iii) no officer or director is associated with a broker or dealer, (iv) all officers and directors are primarily employed on behalf of the Company in substantial duties and (v) no officer or director participates in offering and selling securities more than once every 12 months.

 

The offering will terminate 24 months following the date of the initial effectiveness of the registration statement to which this prospectus relates, unless earlier closed.

 

Resales of the Securities under State Securities Laws

 

The National Securities Market Improvement Act of 1996 ("NSMIA") limits the authority of states to impose restrictions upon resales of securities made pursuant to Sections 4(1) and 4(3) of the Securities Act of companies which file reports under Sections 13 or 15(d) of the Securities Exchange Act. Resales of the Shares in the secondary market will be made pursuant to Section 4(1) of the Securities Act (sales other than by an issuer, underwriter or broker). The resale of such Shares may be subject to the holding period and other requirements of Rule 144 of the General Rules and Regulations of the Securities and Exchange Commission.

 

Selling Shareholders

 

The Shares will be offered at an offering price of $0.50 per share or at prevailing market or privately negotiated prices, including (without limitation) in one or more transactions that may take place by ordinary broker's transactions, privately-negotiated transactions or through sales to one or more dealers for resale. There can be no assurance that the securities of the Company will ever be traded or quoted on a national securities exchange or on the OTC Bulletin Board. The distribution of the Shares may be effected in one or more transactions that may take place through customary brokerage channels, in privately-negotiated sales, by a combination of these methods or by other means. The selling shareholders may from time to time offer their shares through underwriters, brokers-dealers, agents or other intermediaries. Usual and customary or specifically negotiated brokerage fees or commissions may be paid by the selling shareholders in connection with sales of the Shares. The Company will not receive any portion or percentage of any of the proceeds from the sale of the Shares. Of the 3,974,800 Shares included in the registration statement of which this prospectus is a part, 2,700,000 Shares are held by officers, affiliates or directors of the Company.

 

DESCRIPTION OF SECURITIES

 

Capitalization

 

The Company is authorized to issue 200,000,000 shares of common stock, par value $0.0001, of which 19,388,252 shares are outstanding as of the date of the registration statement, of which this prospectus is a part. The Company is also authorized to issue 20,000,000 share of preferred stock, par value $0.0001, of which no shares were outstanding as of the date of the registration statement, of which this prospectus is a part.

 

The following statements relating to the capital stock set forth the material terms of the securities of the Company, however, reference is made to the more detailed provisions of, and such statements are qualified in their entirety by reference to, the certificate of incorporation and the by-laws, copies of which are filed as exhibits to this registration statement.

 

Common Stock

 

The Company is registering up to 3,974,800 shares of its common stock for sale to the public at a price of $0.50 per Share, of which all such Shares are offered by the holders thereof. The Company is not directly offering any Shares for sale.

 

Holders of shares of common stock are entitled to one vote for each share on all matters to be voted on by the stockholders. Holders of common stock do not have cumulative voting rights.

 

Subject to preferences that may be applicable to any outstanding shares of preferred stock, the holders of common stock are entitled to share ratably in dividends, if any, as may be declared from time to time by the board of directors at its discretion from funds legally available therefor. In the event of liquidation, dissolution or winding up, subject to the rights of the shares of preferred stock, the holders of common stock are entitled to share pro rata all assets remaining after payment in full of all liabilities. All of the outstanding shares of common stock are fully paid and non-assessable.

 

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Holders of common stock have no preemptive rights to purchase the Company’s common stock. There are no conversion or redemption rights or sinking fund provisions with respect to the common stock. The Company may issue additional shares of common stock which could dilute its current shareholder's share value.

 

Preferred Stock

 

Shares of preferred stock may be issued from time to time in one or more series as may be determined by the board of directors. The board of directors may fix the designation, powers, preferences and rights of the shares of each such series and the qualifications, limitations or restrictions thereof without any further vote or action by the stockholders of the Company, except that no holder of preferred stock shall have preemptive rights. Any shares of preferred stock so issued would have priority over the common stock with respect to dividend or liquidation rights. Any future issuance of preferred stock may have the effect of delaying, deferring or preventing a change in control of the Company without further action by the stockholders and may adversely affect the voting and other rights of the holders of common stock.

 

At present, the Company has no plans to issue any preferred stock or adopt any series, preferences or other classification of preferred stock. The issuance of shares of preferred stock, or the issuance of rights to purchase such shares, could be used to discourage an unsolicited acquisition proposal. For instance, the issuance of a series of preferred stock might impede a business combination by including class voting rights that would enable the holder to block such a transaction, or facilitate a business combination by including voting rights that would provide a required percentage vote of the stockholders. In addition, under certain circumstances, the issuance of preferred stock could adversely affect the voting power of the holders of the common stock.

 

Although the Company’s board of directors is required to make any determination to issue such preferred stock based on its judgment as to the best interests of the stockholders of the Company, the board of directors could act in a manner that would discourage an acquisition attempt or other transaction that some, or a majority, of the stockholders might believe to be in their best interests or in which stockholders might receive a premium for their stock over the then market price of such stock. The board of directors does not at present intend to seek stockholder approval prior to any issuance of currently authorized stock, unless otherwise required by law or otherwise.

 

Admission to Quotation on the OTC Bulletin Board

 

If the Company meets the qualifications, it intends to apply for quotation of its securities on the OTC Bulletin Board. The OTC Bulletin Board differs from national and regional stock exchanges in that (1) it is not situated in a single location but operates through communication of bids, offers and confirmations between broker-dealers and (2) securities admitted to quotation are offered by one or more broker-dealers rather than the "specialist" common to stock exchanges. To qualify for quotation on the OTC Bulletin Board, an equity security must have one registered broker-dealer, known as the market maker, willing to list bid or sale quotations and to sponsor the company listing. In addition, the Company must make available adequate current public information as required by applicable rules and regulations.

 

In certain cases the Company may elect to have its securities initially quoted in the Pink Sheets published by Pink OTC Markets Inc. In general there is greater liquidity for traded securities on the OTC Bulletin Board, and less through quotation on the Pink Sheets. It is not possible to predict where, if at all, the securities of the Company will be traded following the effectiveness of this registration statement.

 

Transfer Agent

 

It is anticipated that Globex Transfer, LLC of Deltona, Florida will act as transfer agent for the common stock of the Company, although the Company reserves the unrestricted right to modify or change its transfer agent from time to time.

 

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Penny Stock Regulation

 

Penny stocks generally are equity securities with a price of less than $5.00 per share other than securities registered on national securities exchanges or listed on the Nasdaq Stock Market, provided that current price and volume information with respect to transactions in such securities are provided by the exchange or system. The penny stock rules impose additional sales practice requirements on broker-dealers who sell such securities to persons other than established customers and accredited investors (generally those with assets in excess of $1,000,000 or annual income exceeding $200,000, or $300,000 together with their spouse). For transactions covered by these rules, the broker-dealer must make a special suitability determination for the purchase of such securities and have received the purchaser's written consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt, the rules require the delivery, prior to the transaction, of a disclosure schedule prescribed by the SEC relating to the penny stock market. The broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative and current quotations for the securities. Finally, monthly statements must be sent disclosing recent price information on the limited market in penny stocks. Because of these penny stock rules, broker-dealers may be restricted in their ability to sell the Company’s common stock. The foregoing required penny stock restrictions will not apply to the Company’s common stock if such stock reaches and maintains a market price of $5.00 per share or greater.

 

Dividends

 

The Company has not paid any dividends to date. The Company intends to employ all available funds for the growth and development of its business, and accordingly, does not intend to declare or pay any dividends in the foreseeable future.

 

THE BUSINESS

 

Background

 

The Company is a development stage company and has no operating history and has experienced losses since its inception. The Company’s independent auditors have issued a report raising a substantial doubt about the Company’s ability to continue as a going concern.

 

Summary

 

The Company plans to build, operate and manage e-commerce websites. The basis of the Company’s overall business is founded on the ability to connect parties using the internet to facilitate commercial transactions. The Company’s potential customers include internet users, manufacturers, retailers, wholesalers and service providers.

 

The Company is in the process of launching its first three (3) websites: V-Points (www.v-points.com), JoyVita (www.joy-vita.com) and Exacta Pages (www.exactapages.com). In the future, the Company may build and launch additional e-commerce websites, however, no plans currently exist to launch additional websites.

 

V-Points is a program that connects loyal customers with a selected group of online retailers. Customers receive an opportunity to save money by redeeming shopping points for cash, while retailers can benefit from a promotional tool that gives access to a new and motivated target market. The Company aims to foster a community of small and medium size businesses that share a large customer base while developing a loyal community of shoppers.

 

JoyVita is an online communication platform, designed to connect experts with those who need their help. The JoyVita platform has been tailored in order to make the transaction of knowledge between the parties by attempting to simulate a face-to-face meeting and personalizing the overall user experience. With experts ranging from mental health counselors to information technology experts, and from cardiologists to fortune tellers, JoyVita aims to be a one-stop resource for any professional advice that one may need.

 

Exacta Pages is an online shopping environment that provides consumers direct access to manufacturers and suppliers. With direct connections between buyers and sellers from all over the world for interactive trade, Exacta Pages will strive to provide opportunities for better pricing, selection and choices of goods for consumers. Exacta Pages aims to host an online shopping environment that provides users with convenience, speed, selection and confidence

  

The Business: e-commerce

 

Electronic commerce, commonly known as e-commerce or ecommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown significantly with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.

 

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The growth of the Internet allows people to use their computer for things that previously needed to be done in person. Now, communicating with friends and family, networking with business contacts, shopping, banking, and a host of other activities, can be done instantly from almost anywhere in the world. The population of daily Internet users is expected to continue to increases around the world.

 

The Internet is also bringing people from across the world together unlike any other communication medium.  This social trend of providing a place for smaller and local Internet communities to meet in real time will also change the e-commerce landscape. 

 

The Market

 

A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is sometimes known as e-tail. Electronic commerce that is conducted between businesses is referred to as business-to-business or B2B. B2B can be open to all interested parties (e.g. commodity exchange) or limited to specific, pre-qualified participants (private electronic market). Electronic commerce that is conducted between businesses and consumers, on the other hand, is referred to as business-to-consumer or B2C. Online shopping is a form of electronic commerce where the buyer is directly online to the seller's computer usually via the internet. There is no intermediary service. The sale and purchase transaction is completed electronically and interactively in real-time. If an intermediary is present, then the sale and purchase transaction is called electronic commerce.

 

Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions. Economists have theorized that e-commerce ought to lead to intensified price competition, as it increases consumers' ability to gather information about products and prices. Research by four economists at the University of Chicago has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshops and travel agencies. Generally, larger firms have grown at the expense of smaller ones, as they are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend.

 

The Company believes that online retail sales are not growing at the torrid pace they once were, but they continue to grow steadily. Based on industry research, the Company expects that e-commerce sales in the U.S. will keep growing at a 10 percent compound annual growth rate through 2014. Based on industry forecasts, the Company believes that online retail sales in the U.S. will be nearly $250 billion, up from $155 billion in 2009. Last year, online retail sales were up 11 percent, compared to 2.5 percent for all retail sales. In Western Europe, based on industry research, the Company has estimated a slightly faster 11 percent growth rate for online retail sales, going from $93 billion (68 billion Euros) in 2009 to $156 billion (114.5 billion Euros) in 2014. Such estimates exclude online sales of autos, travel, and prescription drugs.

 

Based on industry research, the Company expects that e-commerce sales are expected to represent 8 percent of all retail sales in the U.S. by 2014, up from 6 percent in 2009. Based on industry research, the Company believes that in 2009, 154 million people in the U.S. bought something online, or 67 percent of the online population (4 percent more than in 2008). Three product categories (computers, apparel, and consumer electronics) represented more than 44 percent of online sales ($67.6 billion)  in 2009. While $155 billion worth of consumer goods were bought online last year, a far larger portion of offline sales were influenced by online research.  Based on industry research, the Company estimates that $917 billion worth of retail sales last year were “Web-influenced,” and also estimates that online and Web-influenced offline sales combined accounted for 42 percent of total retail sales and that percentage will grow to 53 percent by 2014, when the Web will be influencing $1.4 billion worth of in-store sales.

 

However, even given the adoption of e-commerce amongst consumer, the Company believes that there is still room for improvement in helping consumers goes from doing online research to in-store purchases. Only 61 percent of consumers who cross over from one to the other are satisfied with their buying experience, compared to 82 percent for those who end up buying online.

 

Market Segments

 

Based on recent industry statistics on the overall online shopping trends, the Company believes that there are over 875 million consumers that have shopped online, and the number of Internet shoppers is up 40% in two years. Among Internet users with Internet access using it shop, the highest percentage shopping online is found in: South Korea (99%), United Kingdom (97%), Germany (97%), Japan (97%) and United States (94%). The most popular and purchased items are: Books (41% purchased in the past three months); Clothing/Accessories/Shoes (36%); Videos / DVDs / Games (24%); Airline Tickets (24%); and Electronic Equipment (23%).

 

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Online professional services

 

The Company believes that recent industry reports show that real-time online cognitive behavioral therapy (CBT) is effective in treating patients with depression. A recent study evaluated nearly 300 patients from 55 general practice clinics across the United Kingdom who had a diagnosis of depression. The patients were randomly assigned to either receive online CBT in addition to their usual care from the general practitioner, or be placed on an 8-month waiting list for CBT while still receiving their usual care. At the 4-month follow-up, 38% of the CBT group had recovered from their depression, compared to only 24% in the control group. After 8 months, 42% of the patients receiving CBT had recovered, compared to 26% in the control group.

 

The Company believes that access to CBT is limited in many areas owing to distance to a major medical center, language barriers, and cost. Online CBT certainly addresses some of these concerns, increasing access to remote or underserved areas. Care could be provided in real-time from around the world. The flexibility and convenience of online CBT is attractive and practical for many patients.

 

Advocates of online CBT maintain that it offers more frequent contact with counselors, who could be available in a call-center or chat room 24 hours a day. Patients could access counselors at a moment of acute distress. Also, online sessions could alternate with in-person CBT sessions, or be used as step-down therapy for some patients. But, concerns about privacy and security loom, not to mention the clinical effectiveness, of such a model. Also, patients benefit from being seen in person by counselors. The lack of face-to-face contact may encourage some patients to be more open and reveal more information about them.

 

Additionally, many “e-therapy” websites are emerging, which provide counseling, advice, and emotional support with little regulation or credentialing. Patients may be tempted to access these types of websites rather than seeking the services of trained, licensed physicians and counselors. There are also programs that integrate a patient’s real life with a virtual life to provide counseling and therapy. In some of these so-called “interreality” programs, behavior in real life influences virtual life, and behavior in virtual life influences real life. Efforts are underway to use such a program to treat addictions. The clinical rationale and effectiveness of these scenarios are the focus of current debate.

 

Loyalty and Rewards

 

The Company believes that using loyalty/reward programs can be an effective strategy for increasing revenues even in a recession.  The Company believes that the following key trends affect the market:

 

Customers are "searching for stability". They are still showing restraint with their spending, so this means that companies must provide an experience that is compelling and memorable so that customers will return.

 

Customers want "transparency". Customers are reading the fine print. If the customer has to call a vendor, do a live chat for clarification or stop by the business, then it costs all parties more in transaction costs

 

Customers want information that is "now". Today, customers and vendors alike are living life in real time. Social media and applications are making that possible.

 

Customers value the "small movement". For smaller local-based and web businesses, relationships count. Larger vendors should communicate personally, directly and quickly.

 

Entry of the Company into the Market

 

The Company is in the process of launching its websites and will offer its solutions and services through three separate divisions: JoyVita; V-Points; and Exacta Pages. In the future, the Company may pursue other opportunistic avenues to launch and operate e-commerce related businesses. At the present time, the Company plans to launch an investor magazine and a smart phones application service.

 

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Online Solutions and Services

 

JoyVita

 

JoyVita specialized in facilitating real-time encounters with the goal of using the Internet's reach to bring together industry experts with those persons that need their help.  With experts ranging from mental health counselors to information technology experts and from cardiologists to fortune tellers, JoyVita aims to be an online destination for all of the expert advice clients need. 

 

The Company believes that many people are already turning to the Internet for professional experts, and this trend is expected to continue in the future. The Company believes that individuals and entities will find that the Internet is an ideal way to acquire tools, get advice, and discuss personal concerns or emotional problems.  From getting a computer fixed and financial advice to health concerns and relationship concerns, people may increasingly turn to the Internet for help. 

 

With JoyVita, the Company is placing a heavy emphasis on the mental health sector.  Even mental health patients that may be covered by their medical insurance plans may nevertheless want to seek alternative methods for seeking help.  JoyVita's “outside the system” platform also benefits patients by the assurance that the details of their condition will be kept private, avoiding the reporting to insurance companies who may penalize the patient later.

 

V-Points

 

V-Points is an online rewards system that enables small to medium sized online retailers the ability to reach a larger audience. By using V-Points, retailers can forge a new image with customers and offer alternative ways for businesses and customers do business online.  In addition, V-Points will offer the highest level of security for both merchants and customers in this new online payment system, projecting a new and improved standard of trust in today's economy. 

 

V-Points are designed to be intuitive and easy-to-use for the shopper.  Customers enter their unique ID in the space provided on a vendor site of their choice and they will receive credits for the money spent.  Points are then converted to cash, which can be redeemed by PayPal or via wire transfer to a customer's bank account.  Shoppers strive to save more and get more for their purchase dollars, and V-Points offers them a service that is easy to use, saves shoppers money and online rewards them all at the same time.

 

V-Points are free to both shoppers and vendors.  The Company offers cash-back to customers on purchases that would not have been eligible in the past; additionally, V-Points offers new web traffic to vendors, increasing the vendor's online presence and more often resulting in further sales. 

 

Exacta Pages

 

Exacta Pages is an online source for small to medium size businesses to connect to wholesales and manufacturers, eliminating the need for an intermediary.  The current database of Exacta Pages currently contains 40,000 vendors.  All contacts have been tested for accuracy and there are no confusing or duplicate records.  Exacta Pages also supplies much more information to clients that are not currently available or accurate in other directories.

 

Each listing will include: (1) Vendor name; (2) Address; (3) Company profile; (4) Phone; (5) Facsimile; (6) P.O. Box; (7) Zip code; (8) Email; (9) Website; (10)  Vendor sector; (11) List of cities; (12)  List of industrial sectors; and (13) List of product categories.

 

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Competition

 

The Company is expected to encounter competition in each of its e-commerce segments comprising its core business operations at present. The Company believes that its customer focus is unique and offers a compelling value proposition not currently available in the marketplace. The Company’s solutions and services are designed to provide innovative user experience and performance, which will differentiate the Company from competing products and solutions.

 

JoyVita

 

The mental health industry has recently joined the many industries already offering web-based services. Online counseling is a rapidly growing means of communicating with professionals, worldwide, via the Internet by means of live chat or email. Direct competitors to the JoyVita concept currently include the following: LivePerson, AskTheInternetTherapist and StressGroup.

 

V-Points

 

There are many online rewards programs currently in the marketplace, however, they are generally self-contained and only provide online rewards for their particular organization.  For example, Toys R Us, Verizon, Citibank and American Express are examples of these companies.  V-Points will be an online rewards cross-platform that can be used by a vast variety of vendors and merchants and offers the points to be converted to cash for withdrawal.  Withdrawals can be wired or sent via PayPal to the customer's bank account of their choice.

 

Exacta Pages

 

There are other companies online that provide a database of contacts for the import/export industry, and one of the largest and well-known organizations is Alibaba.com.

 

Strategic Partners and Suppliers

 

The Company believes that strategic partnerships will be a major component of the Company’s operating strategy and path to success. The Company plans to work with strategic partners in various areas of its business and operations.

 

Although, as an e-commerce company primarily, the Company does not rely on traditional suppliers, the Company plans to build relationships with key online agencies and networks which can assist the Company in obtaining user traffic to its websites and promoting its overall brands.

 

Marketing Strategy

 

The Company has conducted limited advertising and marketing to date as the primary focus of the Company since inception has been to concentrate on its capital raising and organizational efforts. The Company has, however, given substantial attention to constructing the marketing strategy and plans that it will use once it implements an advertising and marketing plan.

 

The Company has a wide range of marketing goals. The key marketing objectives are: to build awareness about the Company’s solutions/services, expertise and people; to drive prospective customers to the Company’s website; to drive user participation; to educate the market about problems that the Company can help solve; and to create an ongoing dialogue with the marketplace.

 

The Company anticipates a significant budget and need for marketing activities. The primary focus of marketing campaigns will be intended to to help the Company find new customers and to increase awareness of the Company’s capabilities and each of its websites.

 

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The Company also plans to attend trade shows, seminars and industry conference to promote the Company and its solutions and services. The Company may also employ face-to-face meeting and presentations by the Company’s executives and advisors to key decision-makers of prospective customers. At the present time, the Company sees website marketing as its top priority because of the direct nature of website marketing for an online business.

 

The Company also believes that publicity in the media can be extremely valuable in building credibility and awareness for all of the Company’s solutions and services. The Company plans to use a dedicated strategy to generate “media buzz”: news stories/interviews in trade journals, industry sites, newspapers and magazines; “expert” quotes in stories written by journalists or bloggers; self-authored stories published on websites or in industry publications; and speaking engagements at trade shows and other industry gatherings. The Company also plans to maintain a targeted and robust public relations (PR) strategy. The PR strategy will include issuance of important press releases and maintaining regular contacts with key online and offline media outlets.

 

The Company also plans to compile and publish articles and white papers. These articles and white papers will also be published (as applicable) on the Company’s websites.

 

Online marketing

 

The Company believes that online marketing presents the most attractive marketing mechanism for e-commerce companies. Accordingly, the Company will pursue all avenues of online marketing, including search engine optimization (SEO), search engine marketing (SEM) and banner advertising. The Company also plans to regularly monitor and optimize its websites and partner with major search engines to drive traffic.

 

The Company also anticipates driving traffic to its websites via social networking. The Company believes that major social networks and online social media outlets provide significant avenues to deliver traffic to the Company’s websites.

 

Specific marketing strategies for JoyVita

 

For its JoyVita business, the Company has formulated a comprehensive marketing strategy which the Company intends to pursue. The following components are key elements of that strategy: (1) a creative and effective website for users, with attractive color schemes, ease of use, suitable choice of words and mechanism facilitating beneficial communication between users; (2) search engine optimization to maximize the ability of potential users to find the website; (3) a website blog that could serve to demonstrate Company credibility and knowledge as well as build an active online user community; (4) online article marketing and press release distribution to promote the website(s), the product and services offered and the experts affiliated with the website; (5) social media networking to facilitate sharing of information; (6) regular newsletters that will allow the Company to communicate news and information to users; (7) data mining of existing databases to reach potential users; and (8) limited and very targeted radio and print and in-person advertising, to be used when respectable yields on such investment can be realized.

 

Revenues

 

Since its inception, the Company has focused its efforts on conducting capital raising and product research and development, and has devoted little attention or resources to sales and marketing or generating near-term revenues and profits. The Company has no revenues to date and has not realized any profits as of yet. In order to succeed, the Company needs to develop a viable strategy to market and distribute its solutions and services to customers.

 

THE COMPANY

 

Agreement with Tiber Creek Corporation

 

In June 2009, the Company entered into a consulting agreement with Tiber Creek Corporation (“Tiber Creek”) whereby Tiber Creek would provide assistance to the Company in effecting transactions for the Company to become a public company, including causing the preparation and filing a registration statement with the Securities and Exchange Commission, assisting with applicable state blue sky requirements, advising and assisting on listing its securities on a trading exchange, assisting in establishing and maintaining relationships with market makers and broker-dealers and assisting in other transactions, marketing and corporate structure activities. Tiber Creek received cash fees of $70,000 from the Company and also received 250,000 common shares of the Company. The consulting agreement also provides that the shares issued to Tiber Creek shall be included in the registration statement (i.e. this registration statement) to be filed by the Company. The consulting agreement further provides that the Company will not at any time take or allow any action (whether by reverse stock split or otherwise) which would have the effect of reducing the absolute number of Shares held by Tiber Creek. The agreement with Tiber Creek is intended to remain in place until the transactions contemplated by the Company are concluded; provided, that Tiber Creek may earlier terminate this agreement at its election, without further obligation or liability, at any time (i) that Tiber Creek has a reasonable basis to believe that any aspect of the transactions would constitute a fraud or deception on the market or (ii) that the Company fails to meet its obligations under this agreement in a manner which would constitute a material breach. In any such case of termination, Tiber Creek will be entitled to retain all payments made to it or accrued prior to such termination.

 

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Intellectual Property

 

The Company intends to protect its intellectual property, trade secrets and proprietary methods and processes.

 

The Company has filed trademark applications for JoyVita, Value Suisse, Exacta Pages and V-Points.

 

Research and Development

 

The officers of the Company have a long history of experience and practical application in the Internet sector. The Company plans to continuously improve user experience and functionality on its websites and to research and develop opportunities to improve e-commerce experiences for all parties.

 

Employees

 

The Company presently has three (3) employees and a total of two (2) executive officers (one of the officers is also an employee). The Company has no other employees but expects that it will hire additional personnel upon raising additional capital and as the Company expands.

 

When the Company has raised adequate capital, the Company plans to hire additional employees and officers. At such time, the Company also plans to implement and offer a competitive employee benefit program.

 

Property

 

The corporate headquarters of the Company are located in the State of Delaware. At such location, the Company leases its office space on a month-to-month lease, which costs $199 per month.

 

In order to reduce operating costs, certain operations of the Company are currently conducted in the Middle East. However, the Company currently operates, and plans to in the future operate, its business in the United States and market its websites worldwide. In order to save costs and reduce operating expenses, the Company currently uses office space free-of-charge of an affiliated party, Value Suisse AG, in locations in the Middle East and in Switzerland.

 

In the near future, if adequate capital is successfully raised, the Company plans to relocate its corporate headquarters and day-to-day operations to New York or another U.S. state or territory. All day-to-day operations of the Company would then occur from such new facility, except only for certain technology and website development operations which will continue to occur in the Middle East (as the Company believes that it is more cost-efficient for development work to be completed offshore in the Middle East, rather than in the United States).

 

The Company also owns the domain names applicable to each of its website divisions.

 

Subsidiaries

 

Currently, the Company has no subsidiaries.

 

Reports to Security Holders

 

The Company intends to deliver a copy of its annual report to its security holders, and will voluntarily send a copy of the annual report, including audited financial statements, to any registered shareholder who requests the same. The Company will not be a reporting issuer with the Securities and Exchange Commission until its registration statement on Form S-1 is declared effective.

 

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The Company has filed a registration statement on Form S-1, under the Securities Act of 1933, with the Securities and Exchange Commission with respect to the shares of its common stock. This prospectus is filed as a part of that registration statement, but does not contain all of the information contained in the registration statement and exhibits. Statements made in the registration statement are summaries of the material terms of the referenced contracts, agreements or documents of the company. Reference is made to the Company’s registration statement and each exhibit attached to it for a more detailed description of matters involving the Company. A potential investor may inspect the registration statement, exhibits and schedules filed with the Securities and Exchange Commission at the Commission's principal office in Washington, D.C. Copies of all or any part of the registration statement may be obtained from the Public Reference Section of the Securities and Exchange Commission, 100 F Street N.E., Washington, D.C. 20549. Please call the Commission at 1-800-SEC-0330 for further information on the operation of the public reference rooms. The Securities and Exchange Commission also maintains a web site at http://www.sec.gov that contains reports, proxy statements and information regarding registrants that file electronically with the Commission. The Company’s registration statement and the referenced exhibits can also be found at the web site address.

 

PLAN OF OPERATION

 

Business Plan

 

The Company plans to operate and manage its three website divisions for the foreseeable future. In the future, the Company may also launch new e-commerce websites and/or divisions, however, no such immediate plans exist. At the present time, the Company plans to launch an investor magazine and a smart phones application service.

 

A constant aspect of the early years of the Company’s business development will be the need to build a base of customers. As the Company facilitates interactions between multiple parties through its website properties, the Company needs to reach a multitude of target customers in order to build its business. Success development of the Company’s business will require a targeted and successful marketing strategy to reach potential customers.

 

Potential Revenue

 

The Company’s business model will be varied based on its website and division. In the case of Joy Vita, customers will pay the Company for services. In the case of V-Points, vendors will pay the Company based on sales that the Company drives to the websites of these vendors. In the case of Exacta Pages, the revenue mode will be subscription-based, and users will pay a subscription fee to receive ongoing access to the service.

  

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

 

The Company is a development stage company and was incorporated in the State of Delaware in June 2009. On April 8, 2010, the Company and Value Suisse Investments AG, a Swiss corporation (“Value Suisse AG”) entered into an asset exchange agreement (the “Asset Exchange”). Pursuant to the Asset Exchange, certain assets of Value Suisse AG were transferred to the Company in exchange for shares of common stock of the Company.

 

As of the period from inception, June 4, 2009, through September 30, 2011, the Company did not generate any revenue and incurred significant operating losses, as part of its development stage activities, of $2,013,222.

 

Revenues

 

Since its inception, the Company has focused its efforts on conducting capital raising and product research and development, and has devoted little attention or resources to sales and marketing or generating near-term revenues and profits. The Company has no revenues to date and has not realized any profits as of yet. In order to succeed, the Company needs to develop a viable strategy to market and distribute its solutions and services to customers.

 

Potential Revenue

 

The Company’s business model will be varied based on its website and division. In the case of Joy Vita, customers will pay the Company for services. In the case of V-Points, vendors will pay the Company based on sales that the Company drives to the websites of these vendors. In the case of Exacta Pages, the revenue mode will be subscription-based, and users will pay a subscription fee to receive ongoing access to the service.

 

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Alternative Financial Planning

 

The Company has no alternative financial plans. If the Company is not able to successfully generate revenue and profits or obtain or raise funding through a private placement or other securities offering (or other means of financing), the Company’s ability to survive as a going-concern and implement any part of its business plan or strategy will be severely jeopardized.

 

Critical Accounting Policies

 

The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires making estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. The estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

 

The Company believes that the following critical accounting policies, among others, affect its more significant judgments and estimates used in the preparation of its financial statements:

 

Share-based Payments

 

The Company intends to periodically issue shares of common stock to employees and non-employees for services. Stock-based compensation is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period.

 

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s financial statements. Such financial statements and accompanying notes are the representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying financial statements. The Company is classified as a development stage enterprise under GAAP and has not generated significant revenues from its principal operations.

 

Long-Lived Assets

 

In accordance with ASC 350-30 (formerly SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets), the Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that their then carrying values may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. The Company’s management currently believes there is no impairment of its long-lived assets. There can be no assurance however, that market conditions will not change or demand for the Company’s products under development will continue. Either of these could result in future impairment of long-lived assets.

 

Development Stage and Capital Resources

 

Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, marketing and advertising, recruiting management and technical staff and raising capital. Accordingly, the Company is considered to be in the development stage. The Company has not generated revenues from its operations, and there is no assurance of future revenues. As of September 30, 2011, the Company had an accumulated deficit from inception of approximately $2,013,222.

 

The Company’s activities will necessitate significant uses of working capital beyond 2012. Additionally, the Company’s capital requirements will depend on many factors, including the success of the Company’s continued marketing and advertising, research and development efforts and the status of competitive services and solutions.

 

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There is no assurance that the Company’s activities will generate sufficient revenues to sustain its operations without additional capital, or if additional capital is needed, that such funds, if available, will be obtainable on terms satisfactory to the Company.

 

Based on currently available cash resources, the Company believes that it can only operate for one month. Thereafter, the Company would need to rely on loans or other capital contributions from its Chief Executive Officer and sole Board member, Mr. AbuTaha, in order to be able to fund day-to-day operations. There is no assurance that Mr. AbuTaha (and/or Value Suisse AG with which he is affiliated) would continue to keep funding the operations of the Company in the future. In essence, if the Company is unable to generate revenues and cash flow, the survival of the Company could be in serious jeopardy and would depend largely upon the ability of Mr. AbuTaha and/or Value Suisse AG to provide capital to the Company.

 

At present, due to the Company’s low cash position and lack of liquidity, the Company plans to minimize all operating expenses and reduce cash outlays to $4,000 per month or less. The Company will devote efforts to raising capital during 2012 from outside investors, related party shareholders and others.

 

Discussion of Nine Month Period Ended September 30, 2011

 

The Company incurred a net loss of $1,805,486 for the nine month period ended September 30, 2011, with selling, general and administrative expenses of $91,937. The Company received no revenue in such period.

 

Selling, general and administrative expenses for the nine month period ended September 30, 2011 were $91,937 , with total selling, general and administrative expenses from inception to September 30, 2011 totaling $299,863.

 

Liquidity. The Company has no source of generating cash.

 

Capital Resources. The Company incurred capital expenditures in the nine month period ending September 30, 2011 consisting of purchase of listed securities and options in amount of $46,556 and intangible assets in the amount of $5,483.

 

Results of Operations. The Company completed no sales and received no revenues in the period from June 4, 2009 (inception) through September 30, 2011. The Company does not anticipate that it will generate revenue sufficient to cover its operating expenses until the development of its business plan.

 

Discussion of Year Ended December 31, 2010

 

The Company incurred a net loss of $137,736 for the period ended December 31, 2010, with selling, general and administrative expenses of $137,926. The Company received no revenue in such period.

 

Selling, general and administrative expenses for the period ended December 31, 2010 were $137,926, with total selling, general and administrative expenses from inception to December 31, 2010 totaling $207,926.

 

Liquidity. The Company has no source of generating cash.

 

Capital Resources. The Company incurred capital expenditures in 2010 consisting of the operating website in the amount of $1,667,000, intangible assets related to trademarks in the amount of $21,858, and machinery and equipment in the amount of $8,035.

 

Results of Operations. The Company completed no sales and received no revenues in the period from June 4, 2009 (inception) through December 31, 2010. The Company does not anticipate that it will generate revenue sufficient to cover its operating expenses until the development of its business plan.

 

Discussion of Year Ended December 31, 2009

 

The Company incurred a net loss of $70,000 for the period ended December 31, 2009, with selling, general and administrative expenses of $70,000. The Company received no revenue in such period.

 

Selling, general and administrative expenses for the period ended December 31, 2009 were $70,000, with total selling, general and administrative expenses from June 4, 2009 (inception) to December 31, 2009 totaling $70,000.

 

Liquidity. The Company has no source of generating cash.

 

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Capital Resources. The Company did not incur any capital expenditures during the period from June 4, 2009 (inception) to December 31, 2009.

 

Results of Operations. The Company completed no sales and received no revenues in the period from June 4, 2009 (inception) through December 31, 2009.

 

MANAGEMENT

 

The following table sets forth information regarding the sole member of the Company’s board of directors and its executive officers:

 

Name Age Position Year Commenced
Mohammed A. AbuTaha 36 Chief Executive Officer, President and Director 2009
Paul Levine 65 Vice President 2012

 

On February 1, 2012, Ms. Shira Christine Pileggi, Vice President of the Company since 2010, resigned her position with the Company. On February 1, 2012, upon Ms. Pileggi’s resignation, Mr. Paul Levine was appointed to the position of Vice President, replacing Ms. Pileggi in such role.

 

Mohammed A. AbuTaha

 

Mohammed A. AbuTaha serves as the chief executive officer, president and a director of the Company. Mr. AbuTaha is also the founder and a director of Demas Capital Markets AG, a corporate finance, asset management and strategic consulting firm based in Switzerland, and Value Suisse Investments AG, also based in Switzerland. Mr. AbuTaha has extensive experience in asset management and equities trading for over the past 14 years. Mr. AbuTaha also has expertise in forming and managing businesses in the Middle East and Europe. He has experience in business planning, budgeting and management. Mr. AbuTaha is also currently the chief executive officer of Independent Financial Indexes Co. Ltd, located in Amman, Jordan. From 1997 to 2008, Mr. AbuTaha served as Finance Manager and Projects Advisor for several multi investments firms with over 50 million USD in assets in the Middle East. Mr. AbuTaha was formerly a board member of the Palestine Securities Exchange Ltd from 2002 until 2009. Mr. AbuTaha has also served as a board member for Palestinian Mineral Lubes Oil Co. LTD (since 2003), Al-Ribat Palestinian Investments Co. LTD (since 2003), and PALEXPO for Exhibitions Co. LTD (since 2005). From 1998 to 2004, Mr. AbuTaha was a founder and director of Jerusal Information Systems Co. Ltd. based in West Bank, Palestine, a company that provided internet services and information systems which was acquired by Palestine Telecommunications Company. From 2003 to 2004, Mr. AbuTaha was the founder and director of Nebraska Advertising & Promotions based in Palestine, a company that provided business services, marketing and advertising, and which was also acquired by Palestine Telecommunications Company. From 1997 to 2008, Mr. AbuTaha was the Finance and Projects Manager for Al-Ribat Palestinian Investments Co. Ltd. in East Jerusalem, where Mr. AbuTaha managed real estate projects. Mr. AbuTaha received a Bachelor’s degree, with honors, in Accounting from Cyprus College located in Nicosia, Cyprus, in 1997, and passed the CFA Level I exam in 2002.

 

Paul Levine

 

Paul Levine has served as vice president of the Company since 2012. Since 1995, Mr. Levine has operated a sole proprietorship in accounting and litigation services. Prior to becoming a sole proprietor in 1995, Mr., Levine was a Shareholder/Partner in the CPA firm of Baranov & Levine, AAC, a firm practicing in the areas of accounting, tax and litigation services. Mr. Levine has served as an expert witness and investigative accountant in business and family law litigation for the past 35 years. Mr. Levine has been a Certified Public Accountant since 1970. Mr. Levine received his Bachelor of Business Administration degree from The City College of the City University of New York (CCNY) in 1968.

 

Director Independence

 

Pursuant to Rule 4200 of The NASDAQ Stock Market one of the definitions of an independent director is a person other than an executive officer or employee of a company. The Company's board of directors has reviewed the materiality of any relationship that of the sole directors has with the Company, either directly or indirectly. Based on this review, the board has determined that there are no independent directors.

 

Committees and Terms

 

The Board of Directors (the “Board”) has not established any committees. Mr. AbuTaha is the sole and only member of the Board.

 

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The Company will notify its stockholders for an annual shareholder meeting and that they may present proposals for inclusion in the Company’s proxy statement to be mailed in connection with any such annual meeting; such proposals must be received by the Company as provided in its By-laws.

 

Legal Proceedings

 

There are currently no pending, threatened or actual legal proceedings in which the Company or any subsidiary is a party.

 

The Company was informed in February 2012 that Ms. Shira Christine Pileggi, a former Vice President of the Company, was considering the potential initiation of a lawsuit against the Company for unpaid compensation in excess of $30,000. Subsequently, the Company and Ms. Pileggi entered into a settlement agreement with respect her potential claims, and accordingly, the Company does not presently believe that any litigation will be initiated by Ms. Pileggi. The settlement agreement provides, among other things, for a payment by the Company of a total amount of $6,500 to Ms. Pileggi (to be paid in installments by the Company over the course of the next three months.)

 

EXECUTIVE COMPENSATION

 

Remuneration of Officers: Summary Compensation Table

 

Description of Compensation Table

 

                                  NonEquity     Nonqualified              
                                  Incentive     Deferred     All Other        
                      Stock     Option     Plan Comp-     Compensat-     Compen-        
Name and Principal Position   Year     Salary     Bonus     Awards     Awards     ensation     -ion Earnings     sation     Total  
                                                       
Mohammed A. AbuTaha   2011                                                                  
Principal Executive Officer   2010     $ 0     $ 7,500       0       0       0       0       0     $ 7,500  
                                                                       
Shira Christine Pileggi   2011                                                                  
Vice President   2010     $ 60,000     $ 0       0       0       0       0       0     $ 60,000  

 

No other salaries have been paid to officers. There is no accrued compensation that is due to any member of the Company’s management. No executive officer has received cash compensation in excess of $100,000 in the Company's fiscal year which ended as of December 31, 2010. Upon successful completion of a primary offering by the Company, however, certain management personnel will receive such compensation as is discussed below in “Anticipated Officer and Director Remuneration”.

 

The Board of Directors may allocate salaries and benefits to the officers for fiscal year 2012 and thereafter in its sole discretion. No such person is subject to a compensation plan or arrangement that results from his or her resignation, retirement, or any other termination of employment with the Company or from a change in control of the Company or a change in his or her responsibilities following a change in control. The Company’s sole director may, if the director who comprises the entire Board so decides, receive a fixed fee and reimbursement of expenses, for attendance at each regular or special meeting of the board of directors, although no such program has been adopted to date. The Company currently has no retirement, pension, or profit-sharing plan covering its officers and directors; however, the Company plans to implement certain such benefits after sufficient funds are raised in a primary offering (see “Anticipated Officer and Director Remuneration” below.)

 

Employment Agreements

 

The Company has entered into an employment agreement with each of Paul Levine, Khalil Ghawi and Nader Rabea. Except for these four employment agreements, no other employment agreements exist with current officers or employees of the Company.

 

With respect to Mr. Levine, the Company entered into an employment agreement with Mr. Levine on February 1, 2012. The employment agreement provides, amongst other things, that Mr. Levine will receive an annual salary of $12,000 and that the Agreement will renew annually, unless terminated by either party prior to a renewal. Mr. Levine will also be entitled to certain vacation benefits and sick time. In addition, Mr. Levine will be entitled to receive 180,000 shares of common stock of the Company on an annual basis.

 

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For Mr. Ghawi, the Company entered into an employment agreement with Mr. Ghawi on June 1, 2011. The employment agreement provides, amongst other things, that Mr. Ghawi will provide accounting services to the Company and shall be compensated at a rate of $30 per hour. The Agreement may be terminated by either party at any time.

 

In the case of Mr. Rabea, the Company entered into an employment agreement with Mr. Rabea on July 1, 2011, to become effective on July 18, 2011 for a term of one year (and to be automatically renewed each year thereafter). The employment agreement provides, amongst other things, that Mr. Rabea will provide website development and related services to the Company. The compensation payable to Mr. Rabea shall be twelve thousand dollars ($12,000) per annum. If the Company is unable to pay cash in respect of such compensation, the Company may (at its option) pay such compensation to Mr. Rabea in common stock of the Company (for purposes of calculating the compensation, the common stock shall be deemed to hold a value of $0.50 per share). Mr. Rabea will also be entitled to certain vacation benefits and sick time.

 

Anticipated Officer and Director Remuneration

 

Other than as set forth above, the Company has not paid any compensation to any officer or director. Although no binding or formal employment agreement or contract exists, other than as discussed above, the Company intends to pay annual salaries to all its officers and will pay an annual stipend to its directors when, and if, it completes a primary offering. At such time, the Company anticipates offering cash and non-cash compensation to officers and directors.

 

Although not presently offered, the Company anticipates that its officers and directors will be provided with a group health, vision and dental insurance program at subsidizes rates, or at the sole expense of the Company, as may be determined on a case-by-case basis by the Company in its sole discretion. In addition, the Company plans to offer 401(k) matching funds as a retirement benefit, paid vacation days and paid holidays.

 

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

 

The following table sets forth information as of the date of this prospectus regarding the beneficial ownership of the Company’s common stock by each of its executive officers and directors, individually and as a group and by each person who beneficially owns in excess of five percent of the common stock after giving effect to any exercise of warrants or options held by that person.

 

                      Percent of Class   
            Percent of      After   
      Number of Shares of     Class Before      Offering   
Name     Position     Common Stock     Offering (1)     (2)  
                           
Mohammed AbuTaha (3)     President and Director       18,053,952       93 %     79 %
Paul Levine     Vice President       0     *       *
                                 
Total owned by officers and directors             18,053,952       93 %     79 %

 

* Less than 1%

 

(1) Based upon 19,388,252 shares outstanding as of the date of this offering.

(2) Assumes sale of all 3,974,800 Shares offered.

(3) Includes 18,015,000 shares held by Value Suisse Investments AG. Mohammed A. AbuTaha is deemed to be the beneficial owner of such shares as he is an officer and director, and the sole shareholders of, Value Suisse Investments AG, which is located at Blegistrasse 9, 6340 Baar, Zurich, Switzerland.

 

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

 

James Cassidy, a partner in the law firm which acts as counsel to the Company, is the sole owner and director of Tiber Creek Corporation, which owns 250,000 shares of the Company's common stock.

 

Linda A. Dakili, a shareholder of the Company, is married to Mohammed A. AbuTaha, the chief executive officer and a director of the Company.

 

27
 

 

On September 30, 2011, Mohammed AbuTaha, CEO and Director of the Company, entered into a Conversion of Debt to Equity Agreement (“Conversion Agreement”). Pursuant to the Conversion Agreement, $19,476 of indebtedness owed by the Company to Mr. AbuTaha (on account of loans previously made by Mr. AbuTaha to the Company) was satisfied through the issuance to Mr. AbuTaha of 38,952 shares of the Company’s common stock. Mr. AbuTaha was granted the right to have such shares included in the first registration statement effected by the Company for any of its common stock or other securities.

 

SELLING SHAREHOLDERS

 

The Company is registering for offer and sale by existing holders thereof 3,974,800 shares of common stock held by such shareholders. The Company will not receive any proceeds from the sale of the Shares. The selling shareholders have no agreement with any underwriters with respect to the sale of the Selling Shareholder Shares. The selling shareholders will offer their shares for sale at an offering price of $0.50 per share or at prevailing market or privately negotiated prices, including (without limitation) in one or more transactions that may take place by ordinary broker's transactions, privately-negotiated transactions or through sales to one or more dealers for resale. There can be no assurance that the securities of the Company will ever be traded or quoted on a national securities exchange or on the OTC Bulletin Board.

 

The selling shareholders may from time to time offer the Shares through underwriters, dealers or agents, which may receive compensation in the form of underwriting discounts, concessions or commissions from them and/or the purchasers of the Shares for whom they may act as agents. Any agents, dealers or underwriters that participate in the distribution of the Shares may be deemed to be "underwriters" under the Securities Act and any discounts, commissions or concessions received by any such underwriters, dealers or agents might be deemed to be underwriting discounts and commissions under the Securities Act.

 

The following table sets forth ownership of Shares held by each person who is a selling shareholder.

 

Name   Shares Owned Before Offering (1)     Offered Herein     Shares Owned After Offering (2)  
    Number     Percentage     Number     Number     Percentage  
                               
Mohammed A. AbuTaha (3)     18,053,952       93 %     2,700,000       15,353,952       79 %
President and Director                                        
                                         
Shira Christine Pileggi     30,000     *     4,500       25,500       *
Former Vice President                                        
                                         
Leina A.M Abuaita     7,500       *     7,500       0       *
                                         
Enas Mahmoud Yousef Abu Ajamieh     5,000       *     5,000       0       *
                                         
Mai Waleed Sa'adat Abu Azab     5,000       *     5,000       0       *
                                         
Izzeddin AbuTaha .     200,000       1 %     200,000       0       *
Brother-in-law of Company President                                        
                                         
Rami Basheer Alaboushi     10,000       *     10,000       0       *
                                         
Mohammed Al Halasa     200,000       1 %     200,000       0       *
Brother-in-law of Company President                                        
                                         
Samar Rafiq Omar Al- Khatib     5,000       *     5,000       0       *
                                         
Roman M.Z Alhaddad     7,500       *     7,500       0       *
                                         
Sahar Habes Mohammad Alahham     5,000       *     5,000       0       *
                                         
Subhi Mohammed Subhi AL-Daour     5,000       *     5,000       0       *
                                         
Mohammed A.A.Abdu AlHaj     5,000       *     5,000       0       *
                                         
Mohammad Khair Asa'ad Tayseer Al-Imadi     5,000       *     5,000       0       *
                                         
Hamzeh Jamil Al-Jawawdeh     10,000       *     10,000       0       *

 

28
 

 

Hadeel Daoud Abdel-Razzaq AL-Mohtasib     5,000       *     5,000       0       *
                                         
Mohammad Nawrs Fathe Al-Nabulsi     5,000       *     5,000       0       *
                                         
Ibrahim saleem Mustafa Al-Sadi     5,000       *     5,000       0       *
                                         
Haitham Ibrahim Hassan Al-Suttari     5,000       *     5,000       0       *
                                         
Reem Zaki Abd Al Raheem Ashaqilde     10,000       *     10,000       0       *
                                         
Mohammad T. Attoun     7,500       *     7,500       0       *
                                         
Azzam Mustafa Mahmoud Azzam     10,000       *     10,000       0       *
                                         
James Cassidy (4)     250,000       1 %     250,000       0       *
                                         
Linda A. Dakili     40,000       *     6,000       34,000       *
Spouse of Company’s President                                        
                                       
Ibtissam (M.S) I. El-Ayoubi     10,000       *     10,000       0       *
                                         
Ahmed Atia NAS. EF. ElShafy     5,000       *     5,000       0       *
                                         
Mark Ghattas     15,000       *     15,000       0       *
                                         
Shimaa Abd Al-Fattah Yousef Hamdan     5,000       *     5,000       0       *
                                         
Ghadeer Maher Said Hidaya     5,000       *     5,000       0       *
                                         
Amjad A. Jaffal     7,500       *     7,500       0       *
                                         
Luai A. Jaffal     7,500       *     7,500       0       *
                                         
Majed A. Jaffal     7,500       *     7,500       0       *
                                         
Amin Khalil Mohammad Jalghum     5,000       *     5,000       0       *
                                         
Loiy Saleh Jarbooh     7,500       *     7,500       0       *
                                         
Mohammed Jebrini     20,000       *     20,000       0       *
Employee of the Company                                        
                                         
Ahmad Hamdan Robeen Kablewi     5,000       *     5,000       0       *
                                         
Naim G.N Kamel     40,000       *     40,000       0       *
Former Employee of Company                                        
                                        *
Rasha H.M Khalouf     5,000       *     5,000       0        
                                         
Baha S.Q Khoury     7,500       *     7,500       0       *
                                         
Feda A.S Majdalawi     10,000       *     10,000       0       *
                                         
Saed H.M Majdalawi     10,000       *     10,000       0       *
                                         
Nima Makan     39,500       *     39,500       0       *
                                         
Samer M. Makan     25,000       *     25,000       0       *

 

29
 

 

Maha Walid Ali Mohammad     5,000         *     5,000       0         *
                                         
Aya I. Musa     7,500         *     7,500       0         *
                                         
Sami I Musa     7,500         *     7,500       0         *
                                         
Mohammed Khalifeh Mohammed Nusierat     5,000         *     5,000       0         *
                                         
Amjad Fathi Ali Omari     5,000         *     5,000       0         *
                                         
Cristina M. Pavon     7,500         *     7,500       0         *
                                         
Tamar Pileggi     15,000         *     15,000       0         *
Sister of Former Company Officer                                        
                                         
Kifah Rabea     27,700         *     27,700       0         *
Spouse of Company Employee                                        
                                         
Nader Rabea     60,000         *     60,000       0         *
Employee of Company                                        
                                         
Batsheva Miriam Porath     15,000         *     15,000       0         *
                                         
Iyas Majdi Ahmad Samman     10,000         *     10,000       0         *
                                         
Laila Seoudy     59,600         *     59,600       0         *
                                         
Laila Mustafa Daher Shaqdih     5,000         *     5,000       0         *
                                         
Amjad Shihab     10,000         *     10,000       0         *
                                         
Abed Almonem A. Younis     15,000         *     15,000       0         *
                                         
Rana Mohmoud Abdel Razeq Za'rour      5,000         *     5,000       0         *

 

* Less than 1%

 

(1) Based upon 19,388,252 shares outstanding as of the date of this offering.

(2) Assumes sale of all 3,974,800 Shares offered.

(3) Includes 18,015,000 shares held by Value Suisse Investments AG. Mohammed A. AbuTaha is deemed to be the beneficial owner of such shares as he is an officer and director, and the sole shareholders of, Value Suisse Investments AG, which is located at Blegistrasse 9, 6340 Baar, Zurich, Switzerland.

   (4) Includes 250,000 shares held by Tiber Creek Corporation, which provided certain services to the Company as discussed herein. Mr. Cassidy is the president and sole shareholder of Tiber Creek Corporation.

 

SHARES ELIGIBLE FOR FUTURE SALE

 

As of the date of this prospectus, there are 19,388,252 shares of common stock outstanding of which 18,053,952 shares are beneficially owned by officers, directors and greater than five percent (5%) shareholders in the Company. There will be 19,388,252 shares outstanding if the maximum number of Shares offered herein is sold.

 

The shares of common stock held by current shareholders are considered “restricted securities” subject to the limitations of Rule 144 under the Securities Act. In general, securities may be sold pursuant to Rule 144 after being fully-paid and held for more than 12 months. While affiliates of the Company are subject to certain limits in the amount of restricted securities they can sell under Rule 144, there are no such limitations on sales by persons who are not affiliates of the Company. In the event non-affiliated holders elect to sell such shares in the public market, there is likely to be a negative effect on the market price of the Company's securities.

 

30
 

 

LEGAL MATTERS

 

Cassidy & Associates, Beverly Hills, California, has given its opinion as attorneys-at-law regarding the validity of the issuance of the Shares offered herein. A senior member of the law firm of Cassidy & Associates is an officer and director of Tiber Creek Corporation and may be considered the beneficial owner of the 250,000 shares of common stock of the Company owned by Tiber Creek Corporation. Cassidy & Associates is acting as counsel for the Company in connection with this offering and the registration of securities herein. Cassidy & Associates is not connected with the Company or any of its parents or subsidiaries as a promoter, underwriter, voting trustee, director, officer, or employee. Cassidy & Associates does not hold a contingent interest in the Company nor will Cassidy & Associates receive in connection with the offering a substantial direct or indirect interest in the Company or any of its parents or subsidiaries.

 

EXPERTS

 

Anton & Chia, LLP, an independent registered public accounting firm, has audited Value Suisse International Investment Inc.’s (a development stage company) balance sheets as of December 31, 2010 and 2009, and the related statements of operations, stockholders’ equity and cash flows for the periods then ended. The Company has included such financial statements in the prospectus and elsewhere in the registration statement in reliance on the report dated May 12, 2011, given their authority as experts in accounting and auditing.

 

DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION

FOR SECURITIES ACT LIABILITIES

 

The Company’s certificate of incorporation include an indemnification provision that provides that the Company shall indemnify directors against monetary damages to the Company or any of its shareholders by reason of a breach of the director’s fiduciary except under certain circumstances.

 

The certificate of incorporation does not specifically indemnify the officers or directors or controlling persons against liability under the Securities Act.

 

The Securities and Exchange Commission’s position on indemnification of officers, directors and control persons under the Securities Act by the Company is as follows:

 

INSOFAR AS INDEMNIFICATION FOR LIABILITIES ARISING UNDER THE SECURITIES ACT OF 1933 MAY BE PERMITTED TO DIRECTORS, OFFICERS AND CONTROLLING PERSONS OF THE SMALL BUSINESS ISSUER PURSUANT TO THE RULES OF THE COMMISSION, OR OTHERWISE, THE SMALL BUSINESS ISSUER HAS BEEN ADVISED THAT IN THE OPINION OF THE SECURITIES AND EXCHANGE COMMISSION SUCH INDEMNIFICATION IS AGAINST PUBLIC POLICY AS EXPRESSED IN THE ACT AND IS, THEREFORE, UNENFORCEABLE.

31
 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

 

FINANCIAL STATEMENTS

 

December 31, 2010 and 2009

 

 
 

  

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

 

Report of Independent Registered Public Accounting Firm   2
     
Consolidated Balance Sheets   3
     
Consolidated Statements of Operations   4
     
Consolidated Statement of Changes in Stockholders’ Equity   5
     
Consolidated Statements of Cash Flows   6
     
Notes to Consolidated Financial Statements   7 - 17

 

  

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

The Board of Directors and Stockholders’ of Value Suisse International Investments, Inc.:

 

We have audited the accompanying consolidated balance sheets of Value Suisse International Investments, Inc. (the “Company”) as of December 31, 2010 and 2009, and the related consolidated statements of operations, stockholders’ deficit, and cash flows for the period ended June 4, 2009 (inception) to December 31, 2009 and for the year ended December 31, 2010. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States of America). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion

.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Value Suisse International Investments, Inc. as of December 31, 2010 and 2009, and the results of its operations and cash flows for the period from June 4, 2009 (Inception) through December 31, 2009 and for the year ended December 31, 2010 in conformity with accounting principles generally accepted in the United States of America.

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has a loss from operations and an accumulated deficit of $207,736 from June 4, 2009 (inception) to December 31, 2010. As discussed in Note 3 to the consolidated financial statements, a significant amount of additional capital will be necessary to advance operations to the point at which the Company is profitable. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans regarding these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

/s/ Anton & Chia, LLP

Newport Beach, California

May 12, 2011

 

Page 2
 

  

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

CONSOLIDATED BALANCE SHEET

 

 

  

   December 31, 2010  December 31, 2009
           
ASSETS          
Current Assets:          
Cash  $84,410   $- 
Prepaid expenses   1,236    - 
Advancement to employees   868    - 
Total current assets   86,514    - 
           
Equipment, net   5,254    - 
Computer software & website, net   1,669,233    - 
Intangible assets, net   20,765    - 
           
Total Assets  $1,781,766   $- 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)          
Current Liabilities:          
Accounts payable  $11,737   $10,000 
Payroll tax payable   2,836    - 
State taxes payable   1,482    - 
Due to company's officers   3,077    - 
Total current liabilities   19,132    10,000 
Stockholders' Equity (Deficit):          
Preferred stock; $0.0001 Par Value; 20,000,000 shares authorized, zero issued and outstanding as of December 31, 2010 and 2009   -    - 
Common stock; $0.0001 Par Value; 200,000,000 shares authorized, 19,057,300 and zero shares issued and outstanding as of December 31, 2010 and 2009, respectively   1,906    - 
Common stock subscribed   (20,020)   - 
Additional paid-in capital   1,988,484    60,000 
Accumulated deficit   (207,736)   (70,000)
Total stockholders' equity (deficit)   1,762,634    (10,000)
Total liabilities and stockholders' equity (deficit)  $1,781,766   $- 

 

Page 3
 

  

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

CONSOLIDATED STATEMENT OF OPERATIONS

 

 

  

      From June 4, 2009  From June 4, 2009
   For the year ended  (inception) to  (inception) to
   December 31, 2010  December 31, 2009  December 31, 2010
          
Revenues  $-   $-   $- 
Cost of revenues   -    -    - 
Gross profit   -    -    - 
Operating expenses               
Selling, general and administration   137,926    70,000    207,926 
Total operating expenses   137,926    70,000    207,926 
Loss from operations   (137,926)   (70,000)   (207,926)
                
Other income               
Interest income   190    -    190 
Total other income   190    -    190 
                
Net loss  $(137,736)  $(70,000)  $(207,736)
                
Basic and diluted loss per common share  $(0.01)  $-   $(0.01)
Basic and diluted weighted average common shares outstanding   19,057,300    -    19,057,300 

 

Page 4
 

  

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

STATEMENT OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY

For the Period from June 4, 2009 (Inception) to December 31, 2010

 

 

 

                  Total
   Common Stock  Common Stock  Additional Paid-In  Accumulated  Stockholders'
   Shares  Amount  Subscribed  Capital  Deficit  Equity
                   
Balance, June 4, 2009 (Inception)   -   $-   $-   $-   $-   $- 
                               
Additional founder investment by CEO   -    -    -    60,000    -    60,000 
                               
Net loss for December 31, 2009   -    -    -    -    (70,000)   (70,000)
                               
Balance, December 31, 2009   -    -    -    60,000    (70,000)   (10,000)
                               
Stock for services   250,000    25    -    23,000    -    23,025 
                               
Stocks issued for asset exchange   16,000,000    1,600    -    1,665,400    -    1,667,000 
                               
Common stock issued for cash   2,287,300    229    -    214,136    -    214,365 
                               
Common stock issued for cash and stock subscription   200,000    20    (4,020)   9,980    -    5,980 
                               
Common stock subscribed   320,000    32    (16,000)   15,968    -    - 
                               
Net loss for December 31, 2010   -    -    -    -    (137,736)   (137,736)
Balance, December 31, 2010   19,057,300   $1,906   $(20,020)  $1,988,484   $(207,736)  $1,762,634 

 

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

 

Page 5
 

  

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

STATEMENTS OF CONSOLIDATED CASH FLOWS

 

 

 

      From June 4, 2009  From June 4, 2009
   For the year ended  (Inception) to  (Inception) to
   December 31, 2010  December 31, 2009  December 31, 2010
Cash flows from operating activities:               
Net loss  $(137,736)  $(70,000)  $(207,736)
                
Adjustments to reconcile net income:               
Depreciation and amortization   1,641    -    1,641 
Changes in operating assets and liabilities:               
Advance to employees   (868)   -    (868)
Prepaid expenses   (1,236)   -    (1,236)
Accounts payable   1,737    10,000    11,737 
Payroll tax payable   2,836    -    2,836 
State taxes payable   1,482    -    1,482 
Due to officer   3,077    -    3,077 
Net cash used by operating activities   (129,067)   (60,000)   (189,067)
Cash flows from investing activities:               
Used for:               
Intangible assets   (21,858)   -    (21,858)
Assets purchased with stock   (1,667,000)   -    (1,667,000)
Equipment   (8,035)   -    (8,035)
Net cash used by investing activities   (1,696,893)   -    (1,696,893)
Cash flows from financing activities:               
Proceeds from common stock   1,906    -    1,906 
Proceeds from stockholders' additional paid-in capital   1,928,484    60,000    1,988,484 
Proceeds from common stock subscribed   (20,020)   -    (20,020)
Net cash provided by financing activities   1,910,370    60,000    1,970,370 
                
Net change in cash   84,410    -    84,410 
Cash, beginning of period   -    -    - 
                
Cash, end of period  $84,410   $-   $84,410 

 

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

 

Page 6
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

 

  

1.      ORGANIZATION

 

Value Suisse International Investments, Inc. (“the Company”) was incorporated in the State of Delaware on June 4, 2009 (inception date), and focused on being the leading provider of an online engagement solution that facilitates real-time assistance, expert advice, direct source information and consumer targeted money saving online rewards program. By connecting third party merchants with customers seeking help, services or products on the Web, the Company’s unique platform creates a more relevant, compelling and personalized online experience.  The Company offers three diverse products.

 

JoyVita's goal is to use the internet's reach to bring together experts and those who need their help.  JoyVita's unique platform is tailored to make the user's experience as close as possible to a face to face meeting. Experts range from mental health counselors to IT experts and from cardiologists to fortune tellers.  JoyVita is a new brand and a new product, aimed at enabling patients and experts to connect from anywhere in the world. A heavy emphasis will be placed on the mental health sector.

 

V-Points’ goal is to provide not only smaller vendors and merchants with reaching a larger consumer base and offer products and specials, but to also provide consumers with more choices, savings and online rewards for their loyalty.  Furthermore, V-Points goal is to sell the concept of the Company and eventually replace costly or one-off advertising.

 

Exacta Pages' goal is to provide small to medium-sized businesses with direct connections to manufacturers, wholesalers and suppliers with the most updated and accurate information possible.

 

2.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s financial statements.  Such financial statements and accompanying notes are the representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying financial statements. The Company is classified as a development stage enterprise under GAAP and has not generated significant revenues from its principal operations.

 

Development Stage and Capital Resources

 

Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, acquiring operating assets and raising capital.  Accordingly, the Company is considered to be in the development stage as defined in GAAP. The Company has not generated significant revenues from its principal operations, and there is no assurance of future revenues.  As of December 31, 2010 and 2009, the Company had accumulated deficits of $207,736 and $70,000, respectively.

 

Page 7
 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

 

 

2.           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

The Company’s activities will necessitate significant uses of working capital beyond 2010.  Additionally, the Company’s capital requirements will depend on many factors, including the successful development and launching of the Company’s business.  The Company plans to continue financing its operations with cash received from financing activities.

 

Management believes that the Company’s current capital resources, together with the commencement of core operating activities in addition to net proceeds from existing and expected capital raises in 2011 (see Note 3), will be sufficient to meet its operating needs through the end of 2011 and beyond.

 

While the Company strongly believes that its capital resources will be sufficient in the near term, there is no assurance that the Company’s activities will generate sufficient revenues to sustain its operations without additional capital or if additional capital is needed, that such funds if available, will be obtainable on terms satisfactory to the Company.

 

Basis of presentation

 

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) as promulgated in the United States of America.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our 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 revenues and expenses during the reporting period.  Actual results could differ from those estimates.

 

Fair Value of Financial Instruments

 

The fair value accounting guidance defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”  The definition is based on an exit price rather than an entry price, regardless of whether the entity plans to hold or sell the asset.  This guidance also establishes a fair value hierarchy to prioritize inputs used in measuring fair value as follows:

 

·Level 1:  Observable inputs such as quoted prices in active markets;

 

Page 8
 

  

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

 

  

2.           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

  · Level 2:  Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

 

  · Level 3:  Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

FINANCIAL INSTRUMENTS The estimated fair values of our financial assets and liabilities that are recognized at fair value on a recurring basis, using available market information and other observable data are as follows:

 

   December 31, 2010
   Level 1  Level 2  Level 3  Total
   Quoted         
   Prices in         
   Active  Significant      
   Markets or  Other  Significant   
   Identical  Observable  Unobservable   
   Assets  Inputs  Input   
Assets:                    
Cash  $84,410   $-   $-   $84,410 
Computer software & websites, net   -    1,667,000    -    1,667,000 
Intangible assets, net   20,765    -    -    20,765 
Total assets  $105,175   $1,667,000   $-   $1,772,175 

   December 31, 2009
   Level 1  Level 2  Level 3  Total
   Quoted         
   Prices in         
   Active  Significant      
   Markets or  Other  Significant   
   Identical  Observable  Unobservable   
   Assets  Inputs  Input   
Assets:                    
Cash  $-   $-   $-   $- 
Computer software & websites, net   -    -    -    - 
Intangible assets   -    -    -    - 
Total assets  $-   $-   $-   $- 

Page 9
 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

 

  

2.           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

The computer software & websites were acquired by execution of an asset exchange agreement with a related party for 16,000,000 shares of common stock.  The assets were valued by a third party and recorded at fair market value.  The assets will be amortized over a period of 10 years.

 

The intangible assets are related to the Company’s trademark costs and fees.  The Company recorded the trademarks at cost.

 

The carrying value of trade payables and accrued liabilities approximates the fair value due to their short-term maturities.

 

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents.  The Company places its cash with high quality banking institutions within the United States.

 

Cash and Cash Equivalents

 

We consider all investments with an original maturity of three months or less to be cash equivalents.  Cash and cash equivalents primarily represent funds invested in bank checking accounts, money market funds and domestic bank certificates of deposit.  As of December 31, 2010 and 2009, the Company had cash balances of $84,410 and zero, respectively.  The Company had no cash equivalents at December 31, 2010 and 2009.

 

We have not experienced any losses with respect to cash.  Management believes the Company is not exposed to any significant credit risk with respect to its cash and cash equivalents.

 

Equipment, net

 

Equipment is stated at cost. Capital expenditures for improvements and upgrades to existing equipment are also capitalized. Maintenance and repairs are expensed as incurred.  Equipment is depreciated over the estimated useful life of five years on a straight-line basis when the assets are put into use.  Depreciation expense for the periods of December 31, 2010 and 2009 was $381 and zero, respectively.  Depreciation expense for the period from inception, June 4, 2009, to December 31, 2010 was $381.

 

Capitalized Software, Websites and Systems

 

Capitalized websites and systems are stated at cost.  The websites and systems were acquired upon execution of an asset exchange agreement with a related party.  Capitalized websites and systems are amortized over their estimated useful life of ten years on a straight-line basis.  Amortization expense for the years ended December 31, 2010 and 2009 was $167 and zero, respectively.  Amortization expense for the period from inception, June 4, 2009, to December 31, 2010 was $167.

 

Page 10
 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

 

  

2.           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Trademarks, Net

 

Capitalized trademark costs represent legal fees associated with filing and maintaining trademark applications.  The Company accounts for trademarks in accordance with Accounting Standards Codification (“ASC”) 350-30 “Intangibles – Goodwill and Other”. The Company amortizes the capitalized trademark costs on a straight-line basis over a period of 10 years, which is management’s estimated life of the patents.

 

Amortization expense relating to these intangible assets amounted to $1,093 and zero for the years ended December 31, 2010 and 2009, respectively.  The Company had $1,093 of amortization for the period from June 4, 2009 (Inception) through December 31, 2010.

 

Impairment of Long-Lived Assets

 

In accordance with ASC 350-30, the Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. The Company’s management currently believes there is no impairment of its long-lived assets. There can be no assurance, however, that market conditions will not change or demand for the Company’s products under development will continue. Either of these could result in future impairment of long-lived assets.

 

Revenue Recognition

 

The Company is in the development stage and has yet to realize revenues from operations.  The Company will recognize revenue in accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 605, “Revenue Recognition”.  In all cases, revenue will be recognized when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service is performed and collectability of the resulting receivable is reasonably assured.

 

Page 11
 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

 

  

2.           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Income Taxes

 

As a result of the implementation of certain provisions of ASC 740, Income   Taxes, (formerly FIN 48, Accounting for Uncertainty in Income Taxes – An Interpretation of FASB Statement No. 109) , (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax positions, as defined.  ASC 740 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes.  We adopted the provisions of ASC 740 as of January 1, 2007, and have analyzed filing positions in each of the jurisdictions where required to file income tax returns, as well as all open tax years in these jurisdictions.  

 

We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position.  Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740.  In addition, we did not record a cumulative effect adjustment related to the adoption of ASC 740.  Our policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes.

 

Our tax provision determined using an estimate of our annual effective tax rate based on rates established in the United States and, adjusted for discrete items, if any, that are taken into account in the relevant period.  Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment.  Taxes payable as of December 31, 2010 and 2009 was $1,225 and $257, respectively.

 

Loss per Common Share

 

Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period.  Diluted earnings per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity.  As of December 31, 2010 and 2009, there were no outstanding dilutive securities.

 

Recently Adopted Accounting Pronouncements

 

Accounting standards promulgated by the FASB change periodically.  Changes in such standards may have an impact on the Company’s future financial statements.  The following are a summary of recently adopted accounting developments.

 

Page 12
 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

 

  

2.           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

In June 2009, the FASB issued changes to the consolidation guidance applicable to a variable interest entity (VIE). FASB ASC Topic 810, "Consolidation," amends the guidance governing the determination of whether an enterprise is the primary beneficiary of a VIE, and is, therefore, required to consolidate an entity, by requiring a qualitative analysis rather than a quantitative analysis. The qualitative analysis will include, among other things, consideration of who has the power to direct the activities of the entity that most significantly impact the entity's economic performance and who has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. This standard also requires continuous reassessments of whether an enterprise is the primary beneficiary of a VIE. FASB ASC 810 also requires enhanced disclosures about an enterprise's involvement with a VIE. Topic 810 is currently effective and did not have an impact on the Company’s financial position, results of operations or cash flows.

 

In January 2010, the FASB issued revised authoritative guidance that requires more robust disclosures about the different classes of assets and liabilities measured at fair value, the valuation techniques and inputs used, the activity in Level 3 fair value measurements, and the transfers between Levels 1, 2 and 3. This guidance is effective for interim and annual reporting periods beginning after December 15, 2009 (which is January 1, 2010 for the Company) except for the disclosures about purchases, sales, issuances, and settlements in the roll forward activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years (which is January 1, 2011 for the Company). Early application is encouraged. The revised guidance was adopted as of January 1, 2010. The adoption of this guidance did not have a material impact on the Company’s consolidated financial position, results of operations and cash flows.

 

In December 2010, the FASB issued ASU 2010-29, Disclosure of Supplementary Pro Forma Information for Business Combinations (amendments to FASB ASC Topic 805, Business Combinations). The guidance in ASU 2010-29 provides amendments to clarify the acquisition date which should be used for reporting the pro forma financial information disclosures in Topic 805 when comparative financial statements are presented. The amendments also improve the usefulness of the pro forma revenue and earnings disclosures by requiring a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination(s). The amendments in this update are effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements.

 

Page 13
 

  

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

 

 

3.   GOING CONCERN

 

The Company has sustained operating losses since inception of the Company on June 4, 2009.  Additionally, the Company has total stockholders’ deficit of $207,736 at December 31, 2010.  The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and / or obtain additional financing from its stockholders and / or other third parties.

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern; however, the above conditions raise substantial doubt about the Company’s ability to do so.  The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

 

In 2011, the Company intends to obtain additional capital through private investors, issuance of common stock and debt.  Please refer to Note 10 Subsequent Events for further discussion regarding management’s plans to raise capital.

 

4.      EQUIPMENT, CAPITALIZED WEBSITES, SOFTWARE AND INTANGIBLES

 

Property and equipment consisted of the following at December 31:

 

   2010  2009
       
Equipment  $5,635   $- 
Less accumulated depreciation   381    - 
           
Total equipment - net  $5,254   $- 

 

For the year ended December 31, 2010 and 2009, depreciation expense was $381 and $0, respectively.

 

Page 14
 

  

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

 

 

4.      EQUIPMENT, CAPITALIZED WEBSITES, SOFTWARE AND INTANGIBLES (CONTINUED)

 

Websites, systems and intangibles consisted of the following at December 31:

 

   2010  2009
       
Software, internal use  $2,400   $- 
Websites & systems acquired through asset exchange agreement   1,667,000    - 
           
Less accumulated amortization   167    - 
           
Total computer software & websites, net  $1,669,233   $- 

 

For the year ended December 31, 2010 and 2009, amortization expense was $167 and zero, respectively.

 

5.      COMMITMENTS AND CONTINGENCIES

 

Litigation

 

During the ordinary course of the Company’s business, it is subject to various claims and litigation.  Management believes that the outcome of such claims or litigation will not have a material adverse effect on the Company’s financial position, results of operations or cash flow.

 

6.      ASSET EXCHANGE AGREEMENT

 

On April 8, 2010 in connection with the execution of the Asset Exchange Agreement, Value Suisse Delaware transferred approximately 94% of the voting common stock to Value Suisse Switzerland, an entity formed by the founders of Value Suisse Delaware.  The asset exchange agreement called for the transfer of 18,000,000 of voting common stock from Value Suisse Delaware to Value Suisse Switzerland, at approximately $0.10 per share, in exchange for cash proceeds of approximately $200,000 and the rights, title and interest to three fully operating online systems with a fair market value of approximately $1,667,000 (See Note 2 Summary of Significant Accounting Policies).

 

Page 15
 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 

 

 

7.      RELATED PARTY TRANSACTIONS

 

During fiscal year 2010 the Chief Executive Officer of the Company paid the start-up expenses, legal costs and other professional fees on behalf of the Company in the amount of approximately $90,000.  As of December 31, 2010 and 2009 the Company had a due-to the officer in the amount of approximately $3,000 and zero, respectively, and additional paid-in capital from non-reimbursed expenses in the amount of approximately $60,000.

 

8.      LOSS PER SHARE

 

Loss per share at December 31, 2010 is as follows:

 

    From June 4, 2009 
    (Inception) to 
   December 31, 2010 
Loss available for common shareholder  $(207,736)
Basic and fully diluted loss per share   (0.01)
      
Weighted average common shares outstanding   19,057,300 

 

9.      COMMON STOCK

 

In November, 2009, the Chief Executive Officer of the Company paid legal expenses on behalf of the Company in the amount of approximately $60,000.  The transaction resulted in an additional investment from a founder in the Company of approximately $60,000.

 

In February, 2010, the Company issued 320,000 shares of common stock to multiple investors at approximately $0.05 per share for stock subscriptions totaling $16,000.

 

In February, 2010, the Company issued 250,000 shares of common stock to compensate a consulting firm for its services related to start-up costs, with an expense of $23,000 to the Company.

 

In June, 2010, the Company issued 2,000,000 shares of common stock to a related party at approximately $0.10 per share for $200,000 in cash proceeds.

 

In August, 2010 the Company issued 200,000 shares of common stock to a third-party investor at approximately $0.05 per share for $5,980 in cash proceeds and a stock subscription totaling $4,020.

 

In August, 2010 the Company issued 287,300 shares of common stock to multiple investors at approximately $0.05 per share in private placement offerings for cash proceeds totaling $14,365.

 

Page 16
 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

 

 

9.      COMMON STOCK (CONTINUED)

 

In December, 2010, the Company issued 16,000,000 shares of common stock to a related party at approximately $0.1042 per share for fair value assets totaling $1,667,000.

 

10.      SUBSEQUENT EVENTS

 

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through May 12, 2011, the date the financial statements were available to be issued.

 

In May, 2011 the Company received $7,020 for a portion of the stock subscription receivables outstanding at December 31, 2010.

 

In May, 2011 the Company issued 39,500 shares at $0.05 per share for $1,975 in cash proceeds.

 

In May, 2011 the Company issued 467,500 shares at $0.01 per share for $4,675 in cash proceeds.

 

In May, 2011 the Company issued a stock subscription to an officer of the Company for 30,000 shares at $0.01 per share.

 

Page 17
 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

 

CONDENSED INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

For the Nine Months Ended September 30, 2011

 

 
 

 

INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

Condensed Consolidated Balance Sheets (Unaudited)   1 
      
Condensed Consolidated Statements of Operations (Unaudited)   2 
      
Condensed Consolidated Statements of Cash Flows (Unaudited)   3 
      
Notes to Condensed Consolidated Financial Statements (Unaudited)   4 - 14 

 

 
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

   Unaudited     
   September 30, 2011   December 31, 2010 
ASSETS          
Current assets          
Cash  $960   $84,410 
Prepaid expenses   416    1,236 
Advancement to employees   -    868 
Total current assets  $1,376    86,514 
           
Equipment, net   4,413    5,254 
Computer software & websites, net   1,874    1,669,233 
Intangible assets, net   26,109    20,765 
Total assets  $33,772   $1,781,766 
           
LIABLITIES & STOCKHOLDERS' EQUITY (DEFICIT)          
           
Current liabilities          
Accounts payable  $10,000   $11,737 
Accrued expenses   25,678    4,318 
Related party payable   -    3,077 
Total current liabilities  $35,678   $19,132 
           
STOCKHOLDERS' EQUITY (DEFICIT)          
           
Preferred stock; $0.0001 par value; 20,000,000 shares authorized , zero issued and outstanding as of September 30,2011 and December 31, 2010  $-   $- 
Common stock - $ 0.0001 par value; 200,000,000 shares authorized, 19,648,252 and 19,057,300 shares issued and outstanding as of September 30, 2011 and December 31, 2010, respectively   1,965    1,906 
Additional paid- in capital   2,022,351    1,988,484 
Common stock subscribed   (13,000)   (20,020)
Accumulated deficit   (2,013,222)   (207,736)
Total stockholders' equity (deficit)   (1,906)   1,762,634 
Total liabilities & stockholders' equity (deficit)  $33,772   $1,781,766 

  

 

Page 1 The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

           From June 4, 2009 
   Three Months Ended September 30   Nine Months Ended September 30   (inception) to 
   2011   2010   2011   2010   September 30, 2011 
                     
Revenues  $-   $-   $-   $-   $- 
Cost of revenues   -    -    -    -    - 
                          
Gross profit   -    -    -    -    - 
                          
Operating expenses                         
Selling, general and administration   22,710    33,714    91,937    76,165    299,863 
Total operating expenses   22,710    33,714    91,937    76,165    299,863 
                          
Loss from operations   (22,710)   (33,714)   (91,937)   (76,165)   (299,863)
                          
Other income (loss)                         
Interest income   -    76    7    137    197 
Realized loss on options trading   -    -    (46,556)   -    (46,556)
Impairment loss on assets   -    -    (1,667,000)   -    (1,667,000)
Total other loss   -    76    (1,713,549)   137    (1,713,359)
                          
Net loss  $(22,710)  $(33,638)  $(1,805,486)  $(76,028)  $(2,013,222)
                          
Basic and diluted loss per common share  $(0.001)  $(0.002)  $(0.093)  $(0.004)  $(0.193)
                          
Basic and diluted weighted average common shares outstanding   19,621,992    18,882,508    19,367,254    19,057,300    10,419,840 

 

 

 

Page 2 The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

           From June 4, 2009 
   Nine Months Ended September 30   (inception) to 
   2011   2010   September 30, 2011 
             
Operating Activities               
Net loss   (1,805,486)   (76,028)   (2,013,222)
                
Adjustments to reconcile net income               
Depreciation and amortization   1,339    -    2,981 
Realized loss on options trading   46,556    -    46,556 
Impairment loss on assets   1,667,000    -    1,667,000 
Changes in operating assets and liabilities               
Advance to employees   868    (119)   - 
Prepaid expenses   820    (2,547)   (416)
Accounts payable   (1,737)   (21,930)   10,000 
Accrued expenses   21,360    1,845    25,678 
Cash used in operating activities   (69,280)   (98,779)   (261,423)
                
Investing activities               
Intangible assets   (5,483)   (18,208)   (27,341)
Purchase of listed securities and options   (46,556)   -    (46,556)
Assets purchased with stocks   -    -    - 
Equipment   -    (8,036)   (8,036)
Cash used in investing activities   (52,039)   (26,244)   (81,933)
                
Financing activities               
Repayment of related party payable   (3,077)   -    - 
Proceeds from common stock   19,531    306    1,965 
Proceeds from stockholders' additional paid in capital   14,395    263,084    355,351 
Proceeds from common stock subscribers   7,020    (20,020)   (13,000)
Cash proceeds provided by financing activities   37,869    243,370    344,316 
                
Net increase (decrease) in cash   (83,450)   118,347    960 
                
Cash, beginning of period   84,410    -    - 
                
Cash, end of period  $960   $118,347   $960 

 

 

Page 3 The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

 

1. ORGANIZATION

 

Value Suisse International Investments, Inc. (“the Company”) was incorporated in the State of Delaware on June 4, 2009 (inception date), and is focused on being a provider of an online engagement solution that facilitates real-time assistance, advice, direct source information and consumer targeted money saving online rewards program. By connecting third party merchants with customers seeking help, services or products on the Web, the Company’s platform creates a compelling and personalized online experience. The Company offers three diverse products:

 

JoyVita's goal is to use the internet's reach to bring together experts and those who need their help.  JoyVita's platform is tailored to make the user's experience as close as possible to a face to face meeting. Experts range from mental health counselors to IT experts and from cardiologists to fortune tellers. JoyVita is a new brand and a new product, aimed at enabling patients and experts to connect from anywhere in the world. An emphasis will be placed on the mental health sector.

 

V-Points’ goal is to provide not only smaller vendors and merchants with reaching a larger consumer base and offer products and specials, but to also provide consumers with more choices, savings and online rewards for their loyalty.  Furthermore, V-Points goal is to sell the concept of the Company and eventually replace advertising.

 

Exacta Pages' goal is to provide small to medium-sized businesses with direct connections to manufacturers, wholesalers and suppliers with the most updated and accurate information possible.

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s financial statements. Such financial statements and accompanying notes are the representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying financial statements. The Company is classified as a development stage enterprise under GAAP and has not generated significant revenues from its principal operations.

 

 

Page 4

 

 
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Development Stage and Capital Resources

 

Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, acquiring operating assets and raising capital. Accordingly, the Company is considered to be in the development stage as defined by GAAP. The Company has not generated significant revenues from its principal operations, and there is no assurance of future revenues. As of September 30, 2011, the Company had an accumulated deficit of $2,013,222.

 

The Company’s activities will necessitate significant uses of working capital beyond 2011. Additionally, the Company’s capital requirements will depend on many factors, including the successful development and launching of the Company’s business. The Company plans to continue financing its operations with cash received from financing activities.

 

Management believes that the Company’s current capital resources, together with the commencement of core operating activities in addition to net proceeds from existing and expected capital raises in 2011 (see Going Concern - Note 3), will be sufficient to meet its operating needs through the end of 2011.

 

While the Company strongly believes that its capital resources will be sufficient in the near term, there is no assurance that the Company’s activities will generate sufficient revenues to sustain its operations without additional capital or if additional capital is needed, that such funds if available, will be obtainable on terms satisfactory to the Company.

 

Basis of presentation

 

The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) as promulgated in the United States of America.

 

Condensed Consolidated Financial Statements

 

The accompanying unaudited condensed consolidated financial statements primarily reflect the financial position, results of operations and cash flows of the Company. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with GAAP for interim financial information.

 

 

Page 5

  

 
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Accordingly, these interim condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011, or for any other period.

 

Principles of Consolidation

 

The condensed consolidated financial statements include the accounts of the Company and wholly-owned Subsidiary. All intercompany transactions and balances have been eliminated in consolidation.

 

Use of Estimates

 

The preparation of these unaudited financial statements in conformity with accounting principles generally accepted in the United States of America requires our 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 revenues and expenses during the reporting period.  Actual results could differ from those estimates.

 

Fair Value of Financial Instruments

 

The fair value accounting guidance defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The definition is based on an exit price rather than an entry price, regardless of whether the entity plans to hold or sell the asset. This guidance also establishes a fair value hierarchy to prioritize inputs used in measuring fair value as follows:

 

·Level 1: Observable inputs such as quoted prices in active markets;

 

·Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

 

·Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

The carrying value of accounts payable and accrued liabilities approximate their fair values due to their short term maturities.

 

 

Page 6

  

 
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Concentration of Credit Risk

 

The Company maintains its cash in bank accounts, which may at times exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk.

 

Cash and Cash Equivalents

 

We consider all investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents primarily represent deposits in bank checking accounts, money market funds and domestic bank certificates of deposit. As of September 30, 2011 and December 31, 2010, the Company had cash balances of $960 and $84,410, respectively. The Company had no cash equivalents at September 30, 2011 and December 31, 2010.

 

We have not experienced any losses with respect to cash. Management believes the Company is not exposed to any significant credit risk with respect to its cash and cash equivalents.

 

Equipment, net

 

Equipment is stated at cost net of accumulated depreciation. Capital expenditures for improvements and upgrades to existing equipment are also capitalized. Maintenance and repairs are expensed as incurred. Equipment is depreciated over the estimated useful life of five years on a straight-line basis when the assets are put into use. Depreciation expense for the nine months ended September 30, 2011 and 2010 was $843 and zero, respectively. Depreciation expense for the period from June 4, 2009 (Inception), to September 30, 2011 was $1,223.

 

Capitalized Software, Websites and Systems, net

 

Capitalized websites and systems were acquired upon execution of an asset exchange agreement with a related party. These assets are amortized over their estimated useful life of ten years on a straight-line basis. Amortization expense for the nine months period ended September 30, 2011 and 2010 was $359 and zero, respectively. Amortization expense for the period from June 4, 2009 (Inception) to September 30, 2011 was $526. 

 

 

Page 7

    

 
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Impairment of Long-Lived Assets

 

In accordance with ASC 350-30, the Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made, which was June 30, 2011. The Company’s management concluded that the carrying value of its long-lived assets consisting of websites and systems were unrecoverable and as such, the Company recognized impairment loss of approximately $1,667,000 during the three months ended June 30, 2011.

 

Intangible Assets, net

 

Capitalized trademark costs represent legal fees associated with filing and maintaining trademark applications. The Company accounts for trademarks in accordance with Accounting Standards Codification (“ASC”) 350-30 “Intangibles – Goodwill and Other”. The Company amortizes the capitalized trademark costs on a straight-line basis over a period of 10 years, which is management’s estimated life of the patents.

 

Amortization expense relating to these intangible assets amounted to $498 and zero for the nine months period ended September 30, 2011 and 2010, respectively. The Company had $1,232 of amortization for the period from June 4, 2009 (Inception) through September 30, 2011.

 

Revenue Recognition

 

The Company is in the development stage and has yet to realize revenues from operations.  The Company will recognize revenue in accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 605, “Revenue Recognition”.  In all cases, revenue will be recognized when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service is performed and collectability of the resulting receivable is reasonably assured. 

 

 

Page 8

    

 

 
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Income Taxes

 

As a result of the implementation of certain provisions of ASC 740, Income Taxes, (formerly FIN 48, Accounting for Uncertainty in Income Taxes – An Interpretation of FASB Statement No. 109) , (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax positions, as defined. ASC 740 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes.  We adopted the provisions of ASC 740 as of January 1, 2007, and have analyzed filing positions in each of the jurisdictions where required to file income tax returns, as well as all open tax years in these jurisdictions.  

 

We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position.  Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740.  In addition, we did not record a cumulative effect adjustment related to the adoption of ASC 740.  Our policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes.

 

Our tax provision determined using an estimate of our annual effective tax rate based on rates established in the United States and, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. Taxes payable as of September 30, 2011 and December 31, 2010 was $1,482.

 

Loss per Common Share

 

Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. As of September 30, 2011 and December 31, 2010, there were no outstanding dilutive securities.

 

Investments in Marketable Securities

 

Periodically, the Company purchases marketable securities held principally for the purpose of selling them in the near term and with the intent to make a profit on short term price changes.

 

The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. These investments were classified as trading securities and were reported at fair value, with realized and unrealized gains and losses recognized in earnings. During the quarter ended September 30, 2011, the investments lost all value and the Company recognized realized losses of $46,556 to Other Loss on its statement of operations.

 

 

Page 9

  

 
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Recently Adopted Accounting Pronouncements

 

Accounting standards are promulgated by the FASB change periodically. Changes in such standards may have an impact on the Company’s future financial statements. The following are a summary of recently adopted accounting developments.

 

In December 2010, the FASB issued ASU 2010-29, Disclosure of Supplementary Pro Forma Information for Business Combinations (amendments to FASB ASC Topic 805, Business Combinations). The guidance in ASU 2010-29 provides amendments to clarify the acquisition date which should be used for reporting the pro forma financial information disclosures in Topic 805 when comparative financial statements are presented. The amendments also improve the usefulness of the pro forma revenue and earnings disclosures by requiring a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination(s). The amendments in this update are effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements.

 

In May 2011, the FASB issued guidance to amend the accounting and disclosure requirements on fair value measurements. The new guidance limits the highest-and-best-use measure to nonfinancial assets, permits certain financial assets and liabilities with offsetting positions in market or counterparty credit risks to be measured at a net basis, and provides guidance on the applicability of premiums and discounts. Additionally, the new guidance expands the disclosures on Level 3 inputs by requiring quantitative disclosure of the unobservable inputs and assumptions, as well as description of the valuation processes and the sensitivity of the fair value to changes in unobservable inputs. The new guidance will be effective for us beginning January 1, 2012. Other than requiring additional disclosures, we do not anticipate material impacts on our financial statements upon adoption.

 

3. GOING CONCERN

 

The Company has sustained operating losses since inception of the Company on June 4, 2009. Additionally, the Company has total stockholders’ deficit of $1,906 at September 30, 2011. The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and / or obtain additional financing from its stockholders and / or other third parties.

 

 

Page 10

 

 
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

 

3. GOING CONCERN (CONTINUED)

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern; however, the above conditions raise substantial doubt about the Company’s ability to do so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

 

4. EQUIPMENT, NET

 

Equipment consisted of the following at September 30, 2011 and December 31, 2010:

 

   September 30,   December 31, 
   2011   2010 
Equipment  $5,636   $5,636 
Less accumulated depreciation   1,223    382 
Total equipment - net  $4,413   $5,254 

 

For the nine months period ended September 30, 2011 and 2010, depreciation expense was $843 and zero, respectively.

 

Websites and software acquired for internal use consisted of the following at September 30, 2011 and December 31, 2010:

 

   September 30,   December 31, 
   2011   2010 
Software, internal use  $2,400   $2,400 
Websites & systems acquired through          
asset exchange agreement   -    1,667,000 
           
Less accumulated amortization   526    167 
           
Total computer software & websites, net  $1,874   $1,669,233 

 

For the nine months period ended September 30, 2011 and 2010, amortization expense was $358 and zero, respectively. During June 2011, the Company recognized impairment loss of $1,667,000 related to the websites and systems acquired. See footnote 2. 

 

 

Page 11

  

 

 
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

 

5. COMMITMENTS AND CONTINGENCIES

 

Litigation

 

During the ordinary course of the Company’s business, it is subject to various claims and litigation. Management believes that the outcome of such claims or litigation will not have a material adverse effect on the Company’s financial position, results of operations or cash flow.

 

6. ASSET EXCHANGE AGREEMENT

 

On April 8, 2010 in connection with the execution of the Asset Exchange Agreement, Value Suisse Delaware transferred approximately 94% of the voting common stock to Value Suisse Switzerland, an entity formed by the founders of Value Suisse Delaware. The asset exchange agreement called for the transfer of 18,000,000 of voting common stock from Value Suisse Delaware to Value Suisse Switzerland, at approximately $0.10 per share, in exchange for cash proceeds of approximately $200,000 and the rights, title and interest to three fully operating online systems with a fair market value of approximately $1,667,000 at its initial recognition. During the six months ended June 30, 2011, the management of the Company evaluated the websites and systems for impairment and believed the carrying value of the asset may not be recoverable based on expected undiscounted cash flows attributable to the asset. Therefore, the impaired amount of $1,667,000 was recorded as impairment loss during the second quarter of 2011.

 

7. LOSS PER SHARE

 

Loss per share at September 30, 2011 is as follows:

 

           From June 4, 
   Nine Months       2009 
   Ended   Three Months   (inception) to 
   September 30,   Ended September   September 30, 
   2011   30, 2011   2011 
Loss available for common shareholders  $(1,805,486)  $(22,710)  $(2,013,222)
Basic and fully diluted loss per share  $(0.092)  $(0.001)  $(0.102)
                
Weighted average common shares outstanding   19,367,254    19,621,992    10,419,840 

 

 

Page 12

    

 
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

 

8. COMMON STOCK

 

In November, 2009, the Chief Executive Officer of the Company paid legal expenses on behalf of the Company in the amount of approximately $60,000. The transaction resulted in an additional investment from a founder in the Company of approximately $60,000.

 

In February, 2010, the Company issued 320,000 shares of common stock to multiple investors at approximately $0.05 per share for stock subscriptions totaling $16,000.

 

In February, 2010, the Company issued 250,000 shares of common stock to compensate a consulting firm for its services related to start-up costs, with an expense of $23,000 to the Company.

 

In July, 2010, the Company issued 2,000,000 shares of common stock to a related party at approximately $0.10 per share for $200,000 in cash proceeds.

 

In July, 2010, the Company issued 16,000,000 shares of common stock to a related party at approximately $0.1042 per share for fair value assets totaling $1,667,000.

 

In August, 2010 the Company issued 200,000 shares of common stock to a third-party investor at approximately $0.05 per share for $5,980 in cash proceeds and a stock subscription totaling $4,020.

 

In August, 2010 the Company issued 287,300 shares of common stock to multiple investors at approximately $0.05 per share in private placement offerings for cash proceeds totaling $14,365.

 

In May, 2011 the Company received $7,020 for a portion of the stock subscription receivables outstanding at December 31, 2010.

 

In May, 2011 the Company issued 39,500 shares at $0.05 per share for $1,975 in cash proceeds.

 

In May, 2011 the Company issued 467,500 shares at $0.01 per share for $4,675 in cash proceeds.

 

In May, 2011 the Company issued 30,000 shares at $0.01 per share to an officer of the company for $300 in cash proceed.

 

In May, 2011 the Company issued 15,000 shares at $0.50 per share for $7,500 in cash proceeds.

 

In September 2011, the Company has issued 38,952 shares at $0.50 per share for $19,476 related party account payables. 

 

 

Page 13

    

 
 

 

 

VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

 

9. SUBSEQUENT EVENTS

 

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through January 10, 2012, the date the financial statements were available to be issued. 

 

 

Page 14

 

 
 

PART II

 

Item 13. Other expenses of Issuance and Distribution

 

The following table sets forth the Company’s expenses in connection with this registration statement. All of the listed expenses are estimates, other than the filing fees payable to the Securities and Exchange Commission.

 

Registration Fees $
State filing fees $
Edgarizing fees $
Transfer agent fees $
Accounting fee $
Legal fees $
Printing $

 

Item 14. Indemnification of Directors and Officers

 

The Company's certificate of incorporation, by-laws and other contracts provide for indemnification of its officers, directors, agents, fiduciaries and employees. These provisions allow the Company to pay for the expenses of these persons in connection with legal proceedings brought because of the person's position with the Company, if the person is not ultimately adjudged liable to the Company for misconduct in the action. Generally, no indemnification may be made where the person has been determined to have intentionally, fraudulently or knowingly violated the law.

 

The Company does not believe that such indemnification affects the capacity of such person acting as officer, director or control person of the Company.

 

Item 15. Recent Sales of Unregistered Securities

 

The Company has issued the following securities in the last three (3) years. Such securities were issued to foreign residents outside of the United State or pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended, as a transaction by an issuer not involving any public offering, as noted below. Each of these transactions was issued as part of a private placement of securities by the Company in which (i) no general advertising or solicitation was used, and (ii) the investors purchasing securities were acquiring the same for investment purposes only, without a view to resale. Furthermore, no underwriters participated or effectuated any of the transactions specified below. Also, no underwriting discounts or commissions applied to any of the transactions set forth below.

 

(1)        On February 20, 2010, 60,000 shares of common stock were sold to Nader Rabea for $0.05 per share.

 

(2)        On February 24, 2010, 250,000 shares of common stock were issued to Tiber Creek Corporation in consideration of services to be performed by Tiber Creek Corporation.

 

(3)        On April 8, 2010, 18,000,000 shares of common stock were issued to Value Suisse Investments AG in connection with the Asset Exchange.

 

(4)        On August 10, 2010 200,000 shares of common stock were sold to Izzeddin AbuTaha for $0.05 per share.

 

(5)        On August 13, 2010 59,600 shares of common stock were sold to Laila Seoudy for $0.05 per share.

 

(6)        On August 20, 2010, 200,000 shares of common stock were sold to Mohammed Al Halasa for $0.05 per share.

 

(7)        On August 27, 2010 27,700 shares of common stock were sold to Kifah Rabea for $0.05 per share.

 

(8)        On May 6, 2011, 39,500 shares of common stock were sold to Nima Makan for $0.05 per share.

 

(9)        On May 9, 2011, 30,000 shares of common stock were sold to Shira Christine Pileggi for $0.01 per share.

 

(10)      On May 9, 2011, 467,500 shares of common stock were sold for $0.01 per share to the investors listed below, in the quantities as set forth below:

 

32
 

 

Leina A.M Abuaita   7,500 
Enas Mahmoud Yousef Abu Ajamieh   5,000 
Mai Waleed Sa'adat Abu Azab   5,000 
Rami Basheer Alaboushi   10,000 
Samar Rafiq Omar Al- Khatib   5,000 
Roman M.Z Alhaddad   7,500 
Sahar Habes Mohammad Alahham   5,000 
Subhi Mohammed Subhi AL-Daour   5,000 
Mohammed A.A.Abdu AlHaj   5,000 
Mohammad Khair Asa'ad Tayseer Al-Imadi   5,000 
Hamzeh Jamil Al-Jawawdeh   10,000 
Hadeel Daoud Abdel-Razzaq AL-Mohtasib   5,000 
Mohammad Nawrs Fathe Al-Nabulsi   5,000 
Ibrahim saleem Mustafa Al-Sadi   5,000 
Haitham Ibrahim Hassan Al-Suttari   5,000 
Reem Zaki Abd Al Raheem Ashaqilde   10,000 
Mohammad T. Attoun   7,500 
Azzam Mustafa Mahmoud Azzam   10,000 
Linda A. Dakili   40,000 
Ibtissam (M.S) I. El-Ayoubi   10,000 
Ahmed Atia NAS. EF. ElShafy   5,000 
Mark Ghattas   15,000 
Shimaa Abd Al-Fattah Yousef Hamdan   5,000 
Ghadeer Maher Said Hidaya   5,000 
Amjad A. Jaffal   7,500 
Luai A. Jaffal   7,500 
Majed A. Jaffal   7,500 
Amin Khalil Mohammad Jalghum   5,000 
Loiy Saleh Jarbooh   7,500 
Mohammed Jebrini   20,000 
Ahmad Hamdan Robeen Kablewi   5,000 
Naim G.N Kamel   40,000 
Rasha H.M Khalouf   5,000 
Baha S.Q Khoury   7,500 
Feda A.S Majdalawi   10,000 
Saed H.M Majdalawi   10,000 
Samer M. Makan   25,000 
Maha Walid Ali Mohammad   5,000 
Aya I. Musa   7,500 
Sami I Musa   7,500 
Mohammed Khalifeh Mohammed Nusierat   5,000 
Amjad Fathi Ali Omari   5,000 
Cristina M. Pavon   7,500 
Tamar Pileggi   15,000 
Batsheva Miriam Porath   15,000 
Iyas Majdi Ahmad Samman   10,000 
Laila Mustafa Daher Shaqdih   5,000 
Amjad Shihab   10,000 
Abed Almonem A. Younis   15,000 
Rana Mohmoud Abdel Razeq Za'rour   5,000 

 

(11)      On May 31, 2011, 15,000 shares of common stock were sold for $0.50 per share to Value Suisse Investments AG.

 

(12)      On September 30, 2011, pursuant to the Conversion Agreement, 38,952 shares of the Company’s common stock were issued to Mr. AbuTaha in exchange for satisfaction of the indebtedness of $19,476 of the Company that was owed to him. Accordingly, the implied price of the common stock issued to Mr. AbuTaha in such transaction was $0.50 per share.

 

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Item 16. Exhibits and Financial Statement Schedules.

 

EXHIBITS

 

2.1+ Asset Exchange Agreement
2.2+ Amendment to Asset Exchange Agreement
3.1+ Certificate of Incorporation
3.2+ By-laws
3.3+ Certificate of Correction
4.1 Conversion Debt to Equity Agreement
5.0** Opinion of Counsel on legality of securities being registered
10.2+ Employment Agreement of Khalil Ghawi
10.3+ Employment Agreement of Nader Rabea
10.4 Employment Agreement of Paul Levine
10.5 Agreement with Tiber Creek Corporation
10.6** Form of subscription agreement for sale of the shares
23.1 Consent of Accountants
23.2+ ** Consent of Attorney (as part of Exhibit 5.0)

 

 

+ Previously filed

** To be filed

 

Item 17. Undertakings

 

Pursuant to Rule 415 under the Securities Act of 1933 (as amended and updated from time to time)

 

The undersigned registrant hereby undertakes:

1. To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
i. To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
ii. To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement.
iii. To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.
2. That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
3. To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. 

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the State of Delaware, on February 13, 2012.

 

  VALUE SUISSE INTERNATIONAL INVESTMENTS, INC.
   
  /s/ Mohammed A. AbuTaha
  Title: Chief Executive Officer (principal executive officer)
   
  /s/ Mohammed A. AbuTaha
  Title: Chief Executive Officer (principal financial and accounting officer)

 

Pursuant to the requirements of the Securities Act, as amended, this registration statement has been signed below by the following persons in the capacities and on the dates indicated.

 

Signature Capacity Date
     
/s/ Mohammed A. AbuTaha Director February 13, 2012

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