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EX-31 - RULE 13(A)-14(A)/15(D)-14(A) CERTIFICATION OF CHIEF EXECUTIVE OFFICER - ALL MARKETING SOLUTIONS, INC.exhibit31.htm
EX-32 - SECTION 1350 CERTIFICATION OF CHIEF EXECUTIVE OFFICER - ALL MARKETING SOLUTIONS, INC.exhibit32.htm



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

 

 

 

FORM 10-Q

 

 

 

 

 

 

 

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

 

 

 

For the quarterly period ended:  

March 31, 2012

 

 

 

 

 

 

 

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

 

 

 

 

For the transition period from

___________

to

____________

 

 

 

 

 

 

 

 

Commission file number:

333-160031

 

 

 

 

 

 

 

 

 

PATENTS PROFESSIONAL, INC.

 

 

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

 

 

Nevada

 

 

26-3895737

 

(State or other jurisdiction of incorporation or organization)

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

 

 

 

 

 

 

 

112 North Curry Street, Carson City, NV   89703

 

 

(Address of principal executive offices)   (Zip Code)

 

 

 

 

 

 

 

 

775-321-8206

 

 

(Registrant’s telephone number, including area code)

 

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     

 

Yes |X| No |_|

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).                                                                                         Yes[  ]  No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer  [  ]

 Accelerated filer [   ]

Non-accelerated filer [   ]  (Do not check if a smaller reporting company)     

    Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act).

 

Yes |X| No |_|

The number of shares outstanding of the Registrant's Common Stock as May 11, 2012 was 9,669,000 shares of common stock, $0.001 par value, issued and outstanding.



1






PATENTS PROFESSIONAL, INC.

QUARTERLY REPORT ON FORM 10-Q

INDEX


 

 

Page

 

 

Number

 

PART I

 

 

 

 

Item 1

Financial Statements

3

 

 

 

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

10

 

 

 

Item 3

Quantitative and Qualitative Disclosures About Market Risk

12

 

 

 

Item 4

Controls and Procedures

12

 

 

 

 

 

 

 

PART II

 

 

 

 

Item 1

Legal Proceedings

13

 

 

 

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

13

 

 

 

Item 3

Defaults Upon Senior Securities

14

 

 

 

Item 4

(Removed and Reserved)

14

 

 

 

Item 5

Other Information

14

 

 

 

Item 6

Exhibits

14

 

 

 




2





 

 

 

 

 

 

 

PATENTS PROFESSIONAL, INC.

(A Development Stage Company)

 

CONDENSED FINANCIAL STATEMENTS

 

March 31, 2012

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

UNAUDITED CONDENSED BALANCE SHEETS

 

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS

 

UNAUDITED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

 

UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS

 

NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS




3






PATENTS PROFESSIONAL, INC.

(A Development Stage Company)

 

 

 

 

 

 

 

 

 

 

UNAUDITED CONDENSED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December  31,

 

 

 

 

 

 

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT  ASSETS

 

 

 

 

 

 

 

 

Cash

 

 

 

 

$

449

 

449

 

TOTAL CURRENT ASSETS

 

 

$

449

 

449

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDER'S

 

 

 

 

 

EQUITY (DEFICIT)

 

 

 

 

 

 

 

CURRENT  LIABILITIES

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

29,244

$

29,008

 

Loan to Related Party

 

 

 

21,706

 

16,706

TOTAL CURRENT LIABILITIES

 

$

50,950

$

45,714

 

 

 

 

 

 

 

 

 

 

STOCKHOLDER'S  EQUITY (DEFICIT)

 

 

 

 

 

 

Capital stock

 

 

 

 

 

 

 

 

Authorized

 

 

 

 

 

 

 

 

      75,000,000 shares of common stock, $0.001

 

 

 

 

 

par value, issued and outstanding

 

 

 

 

 

 

9,669,000 shares of common stock at March 31, 2012

$

9,669

$

9,500

 

and 9,500,000 shares at December 31, 2011

 

 

 

 

 

 

Additional Paid in Capital

 

 

 

4,901

 

-

 

Subscription Receivable

 

 

$

(5,070)

 

-

 

Deficit accumulated during the development stage

$

(60,001)

 

(54,765)

 

TOTAL STOCKHOLDER'S EQUITY (DEFICIT)

$

(50,501)

$

(45,265)

 

TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY(DEFICIT)

$

449

$

449

 

 

 

 

 

 

 

 

 

 




The accompanying notes are an integral part of these financial statements






4







PATENTS PROFESSIONAL, INC.

(A Development Stage Company)

 

 

 

 

 

 

 

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative results

 

 

Three months

 

Three months

 

from inception

 

 

ended

 

ended

 

(December 17, 2008)

 

 

March 31, 2012

 

March 31, 2011

 

March 31, 2012

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

-    

$

-    

$

-    

Total Revenues

$

-    

$

-    

$

-    

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

Office and general

$

-    

$

525

$

11,018

Professional Fees

 

5,236

 

1,688

 

48,983

Total Expenses

$

5,236

$

2,213

$

60,001

 

 

 

 

 

 

 

NET LOSS

$

(5,236)

$

(2,213)

$

(60,001)

 

 

 

 

 

 

 

BASIC AND DILUTED LOSS PER COMMON SHARE

 

 

 

 

 

 

$

-    

$

-    

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

$

9,506,044

$

9,500,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements

PATENTS PROFESSIONAL, INC.

(A Development Stage Company)

 

 

 

 

 

 

 

 

 

 

 

 

UNAUDITED INTERIM CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

From inception (December 17, 2008) to March 31, 2012

 

 

 

 

 

 

 

 

 

 

 

Deficit

 

 

 

Common Stock

 

 

 

 

 

accumulated

 

 

 

 

 

Additional

 

Share

 

during the

 

 

 

Number of

 

 

 

Paid-in

 

Subscriptions

 

development

 

 

 

shares

 

Amount

 

Capital

 

Receivable

 

stage

 

Total

Balance at inception on

 

 

 

 

 

 

 

 

 

 

 

December 17, 2008

-

$

-

$

-    

$

-

$

-    

$

-

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period ended

 

 

 

 

 

 

 

 

 

 

 

December 31, 2008

 

 

 

 

 

 

 

 

(1,630)

 

(1,630)

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2008

-    

$

-    

$

-    

$

-    

$

(1,630)

$

(1,630)

Common Stock issued for cash

 

 

 

 

 

 

 

 

 

 

 

at $0.001 per share

9,500,000

 

9,500

 

 

 

-    

 

 

 

9,500

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the year ended

 

 

 

 

 

 

 

 

 

 

 

December 31, 2009

-    

 

-    

 

-    

 

-    

 

(23,497)

 

(23,497)

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2009

9,500,000

$

9,500

$

-    

$

-    

$

(25,127)

$

(15,627)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the year ended

 

 

 

 

 

 

 

 

 

 

 

December 31, 2010

-    

 

-    

 

-    

 

-    

 

(15,660)

 

(15,660)

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2010

9,500,000

$

9,500

$

-    

$

-    

$

(40,787)

$

(31,287)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the year ended

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

-    

 

-    

 

-    

 

-    

 

(13,978)

 

(13,978)

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2011

9,500,000

$

9,500

$

-    

$

-    

$

(54,765)

$

(45,265)

Common Stock issued for cash

 

 

 

 

 

 

 

 

 

 

 

at $0.03 per share

169,000

 

169

 

4,901

 

(5,070)

 

-    

 

-    

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period ended

 

 

 

 

 

 

 

 

 

 

 

March 31, 2012

-    

 

-    

 

 

 

 

 

(5,236)

 

(5,236)

 

 

 

 

 

 

 

 

 

 

 

 

Balance,  March 31, 2012

9,669,000

$

9,669

$

4,901

$

(5,070)

$

(60,001)

$

(50,501)

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements




6






PATENTS PROFESSIONAL, INC.

(A Development Stage Company)

 

 

 

 

 

 

 

 

 

 

UNAUDITED INTERIM  CONDENSED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 17,

 

 

 

 

 

Three months

 

Three months

 

2008 ( date of

 

 

 

 

 

ended

 

ended

 

inception) to

 

 

 

 

 

March 31, 2012

 

March 31, 2012

 

March 31, 2012

 

 

 

 

 

 

 

 

 

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net loss

 

 

$

(5,236)

$

(2,213)

$

(60,001)

 

Adjustment to reconcile net loss to net cash used in

 

 

 

 

 

 

 

operating activities

 

 

 

 

 

 

 

 

Expenses paid on company's behalf by related party

 

5,000

 

4,425

 

21,706

 

Increase (decrease) in accrued expenses

$

236

$

(2,213)

$

29,244

NET CASH PROVIDED BY (USED IN) OPERATING

 

 

 

 

 

 

ACTIVITIES

 

 

$

-

$

-

$

(9,051)

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from sale of common stock

 

-

 

-

 

9,500

 

 

 

 

 

 

 

 

 

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

$

-

$

-

$

9,500

 

 

 

 

 

 

 

 

 

 

NET INCREASE ( DECREASE) IN CASH

$

-

$

-

$

449

 

 

 

 

 

 

 

 

 

 

CASH, BEGINNING OF PERIOD

 

449

 

449

 

-

 

 

 

 

 

 

 

 

 

 

CASH, END OF PERIOD

 

$

449

$

449

$

449

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information and  

 

 

 

 

 

 

 noncash financing activities:

 

 

 

 

 

 

Cash paid for:

 

 

 

 

 

 

 

 

 

Interest

 

 

 

-

$

-

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

-

$

-

$

-

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements

 





7





PATENTS PROFESSIONAL, INC.

(A Development Stage Company)


NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS


March 31, 2012


NOTE 1 – CONDENSED FINANCIAL STATEMENTS


The accompanying financial statements have been prepared by the Company without audit.  In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at March 31, 2012, and for all periods presented herein, have been made.


Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2011 audited financial statements.  The results of operations for the periods ended March 31, 2012 and the same period last year are not necessarily indicative of the operating results for the full years.


NOTE 2 – GOING CONCERN


The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern.  This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Currently, the Company has a working capital deficit of $50,501, an accumulated deficit of $60,001 and net loss from operations since inception of $60,001. The Company does not have a source of revenue sufficient to cover its operation costs giving substantial doubt for it to continue as a going concern. The Company will be dependent upon the raising of additional capital through placement of our common stock in order to implement its business plan, or merge with an operating company.  There can be no assurance that the Company will be successful in either situation in order to continue as a going concern.  The Company is funding its initial operations by way of issuing Founder’s shares.


In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.


The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.









8





PATENTS PROFESSIONAL, INC.

(A Development Stage Company)


NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS


March 31, 2012


NOTE 3 – CAPITAL STOCK


The Company’s capitalization is 75,000,000 common shares with a par value of $0.001 per share.  No preferred shares have been authorized or issued.


On September 30, 2009, the President was issued 9,500,000 common shares for cash, which was received on October 8, 2009.


As of March 31, 2012, the Company has not granted any stock options and has not recorded any stock-based compensation.


As of March 31, 2012, 9,669,000 common shares are issued and outstanding.


In March, 2011 the company issued 169,000 common shares at $0.03 per share for a total of $5,070 but has not collected any of the proceeds. The balance of $5,070 is reported at a subscription receivable at the end of the period.



NOTE 4 – LOAN PAYABLE – RELATED PARTY LOANS


The Company received a loan from related party totaling $21,706.The loan is payable on demand and without interest.



NOTE 5 - RECENT ACCOUNTING PRONOUNCEMENTS


The company has evaluated all the recent accounting pronouncements and believes that none of them will have a material effect on the company’s financial statement.



NOTE 6 - SUBSEQUENT EVENTS


The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were available to be issued and has determined that there are no further events to disclose.











9






ITEM 2. MANAGEMENT`S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


This section of this report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance.  Forward looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions or words which, by their nature, refer to future events.  You should not place undue certainty on these forward-looking statements, which apply only as of the date of this report.  These forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.


Overview


Patents Professional, Inc. ("Patents Professional", "the Company", “our” or "we") was incorporated in the State of Nevada as a for-profit company on December 17, 2008.  We are a development-stage Company formed in order to enter into the international market for patent consulting and technology transfer services.


Plan of Operation


The Company has not yet generated any revenue from its operations.  As of the fiscal quarter ended March 31, 2012 we had $449 of cash on hand. We incurred operating expenses in the amount of $5,236 in the quarter ended March 31, 2012. These operating expenses were comprised of professional fees and office and general expenses.


Our current cash holdings will not satisfy our liquidity requirements and we will require additional financing to pursue our planned business activities.  We have registered 4,000,000 of or our common stock for sale to the public.  Our registration statement became effective on November 1, 2011and we are in the process of seeking equity financing to fund our operations over the next 12 months.  


Management believes that if subsequent private placements are successful, we will generate sales revenue within the following twelve months thereof. However, additional equity financing may not be available to us on acceptable terms or at all, and thus we could fail to satisfy our future cash requirements.


The Company has raised $9,500 in cash to initiate its business plan through the sale of its common stock.  The amount raised from our stock offering is insufficient and we will need additional cash to continue to implement our business plan.  If we are unable to raise it, we will either suspend marketing operations until we do raise the cash, or cease operations entirely. Other than as described in this paragraph, we have no other financing plans.

Over the next 12 months after this registration statement becomes effective the company must (a) raise capital, (b) identify several specific, high growth technology markets, (c) identify qualified institutional customers who require commercial applications of these technologies, (d) identify and sign revenue sharing agreements with clients who are capable of providing these commercial applications in the form of patentable inventions, products, techniques or processes, (e) start the process of preparing and filing our initial patent applications and finally (f) enter licensing agreements with our first customers.

The company intends to hire an independent third party patent consultant to perform all aspects pertaining to the filing of its clients’ patent applications and marketing consultants to identify institutional customers who are seeking our patented technologies.  We also expect to hire an independent consultant to



10




develop our web site and computer systems within 60 days after the termination of the sale of shares through this registration statement.

The dependence on hiring the appropriate third parties to perform essential services could result in a material adverse effect on the company’s potential future operations and, consequently, on the company’s business, operating results and financial condition. Further, such third party contractors have no fiduciary duty to our shareholders and may not perform these services as expected. The capacity of certain third parties for these services may be limited for economic or other reasons. Their inability to provide these services could have a material adverse effect upon the results of our operations and financial condition.


We intend to hire third party professionals  using the Internet mostly for initial research. First and foremost we will need to find law firms that specialize in patent applications, and further define what expertise a patent attorney may have in a specific field related to the product we want to patent. Some patent lawyers may have expertise in intellectual property (IP) others in engineering or other specialty fields.  The Company also intends to hire, on a consulting basis, marketing experts in the particular fields in which products the Company is thinking of patenting a product. These experts’s product knowledge could range from board games to IP to the building industry; the requirement for experts is based completely on the products the Company is presented with for consideration.


Industry professionals would be able to give our firm a better educated opinion of the market feasibility of a product. Attorneys, engineers, business consultants, and marketing specialist would simply charge a fee for their services that the Company would pay; these services would make up a part of the services our firm would offer to potential clients besides financial assistance. It is possible in some circumstances that our professional third party consultants may be interested in offering their services for a royalty on the licensing or sale of the patent.

The company anticipates qualifying its first clients and signing revenue sharing exclusivity agreements with them within 120 days after the termination of the sale of shares through this registration statement.. The company expects to start the process of filing its first patent applications within 180 days after the termination of the sale of shares through this registration statement.

Concurrently with the filing of our first patent applications, we plan on hire a marketing consultant with experience in the technology transfer and sales industry to begin the sales and marketing of our patented. We anticipate that we may be able to hire this consultant within approximately 270 days of after the termination of the sale of shares through this registration statement. The company anticipates that our sales cycle (the length of time between initial customer contact and sale completion) to be a minimum of 90 days. We anticipate that we may sign our first licensing agreements within 360 days after the termination of the sale of shares through this registration statement.

We do not currently have any employees and management does not plan to hire employees at this time. We do not expect the purchase or sale of any significant equipment and has no current material commitments.


Limited Operating History; Need for Additional Capital


There is no historical financial information about us upon which to base an evaluation of our performance. We are a development stage corporation and have not generated any revenues from operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources.




11







Capital Resources


If Patents Professional is unsuccessful in raising the additional proceeds through a private placement offering it will then have to seek additional funds through debt financing, which would be highly difficult for a new development stage company to secure. Therefore, the company is highly dependent upon the success of the anticipated private placement offering and failure thereof would result in Patents Professional having to seek capital from other sources such as debt financing, which may not even be available to the company. However, if such financing were available, because Patents Professional is a development stage company with no operations to date, it would likely have to pay additional costs associated with high risk loans and be subject to an above market interest rate. At such time these funds are required, management would evaluate the terms of such debt financing and determine whether the business could sustain operations and growth and manage the debt load. If Patents Professional cannot raise additional proceeds via a private placement of its common stock or secure debt financing it would be required to cease business operations. As a result, investors in Patents Professional common stock would lose all of their investment. 


Off Balance Sheet Arrangement


The company is dependent upon the sale of its common shares to obtain the funding necessary to carry its business plan.  Our President, Wagner Yomoguita has undertaken to provide the Company with operating capital to sustain its business over the next twelve month period, as the expenses are incurred, in the form of a non-secured loan. However, there is no contract in place or written agreement securing these agreements.  Investors should be aware that Mr. Yomoguita expression is neither a contract nor agreement between him and the company.


Other than the above described situation the Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company's financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


Not required.


ITEM 4. CONTROLS AND PROCEDURES


Evaluation of Disclosure Controls and Procedures


Based upon an evaluation of the effectiveness of disclosure controls and procedures, our principal executive and financial officer  has concluded that as of the end of the period covered by this Quarterly Report on Form 10-Q our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act) were not effective.  As reported in our Annual Report on Form 10-K for the year ended December 31, 2011, the Company’s principal executive and financial officer has determined that there are material weaknesses in our disclosure controls and procedures.


The material weaknesses in our disclosure control procedures are as follows:


1.           Lack of formal policies and procedures necessary to adequately review significant accounting transactions. The Company utilizes a third party independent contractor for the preparation of its financial



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statements. Although the financial statements and footnotes are reviewed by our management, we do not have a formal policy to review significant accounting transactions and the accounting treatment of such transactions. The third party independent contractor is not involved in the day to day operations of the Company and may not be provided information from management on a timely basis to allow for adequate reporting/consideration of certain transactions.


2.            Audit Committee and Financial Expert. The Company does not have a formal audit committee with a financial expert, and thus the Company lacks the board oversight role within the financial reporting process.


We intend to initiate measures to remediate the identified material weaknesses including, but not necessarily limited to, the following:


 

 Establishing a formal review process of significant accounting transactions that includes participation of the Chief Executive Officer, the Chief Financial Officer and the Company’s corporate legal counsel.


 

 Form an Audit Committee that will establish policies and procedures that will provide the Board of Directors a formal review process that will among other things, assure that management controls and procedures are in place and being maintained consistently.




Changes in Internal Controls over Financial Reporting


As reported in our Annual Report on Form 10-K for the year ended December 31, 2011, management is aware that there a significant deficiency and a material weakness in our internal control over financial reporting and therefore has concluded that the Company’s internal controls over financial reporting were not effective as of December 31, 2011. The significant deficiency relates to a lack of segregation of duties due to the small number of employees involvement with general administrative and financial matters.  The material weakness relates to a lack of formal policies and procedures necessary to adequately review significant accounting transactions. 


There have not been any changes in the Company's internal control over financial reporting during the quarter ended March 31, 2012 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.”

 

 


PART II - OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS


The Company is not a party to any pending legal proceedings, and no such proceedings are known to be contemplated.


No director, officer, or affiliate of the issuer and no owner of record or beneficiary of more than 5% of the securities of the issuer, or any security holder is a party adverse to the small business issuer or has a material interest adverse to the small business issuer.





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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND  USE OF PROCEEDS


        None.



ITEM 3. DEFAULTS UPON SENIOR SECURITIES


        None


ITEM 4. (REMOVED AND RESERVED)



ITEM 5. OTHER INFORMATION


    None


ITEM 6. EXHIBITS


3.1

Articles of Incorporation of Patents Professional, Inc. (incorporated by reference from our Registration Statement on Form S-1 filed on June 17, 2009)

 

 

3.2

Bylaws of Patents Professional, Inc. (incorporated by reference from our Registration Statement on Form S-1 filed on June 17, 2009)

 

 

31.1

Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Executive Officer

 

 

31.2

Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Financial Officer *

 

 

32.1

Section 1350 Certification of Chief Executive Officer

 

 

32.2

Section 1350 Certification of Chief Financial Officer **

 

 


 *     Included in Exhibit 31.1

**    Included in Exhibit 32.1

                                   

SIGNATURES


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

                       


Patents Professional, Inc.



BY:      /s/ Wagner Yomoguita

 ----------------------

Wagner Yomoguita

President, Secretary Treasurer, Principal Executive Officer,

Principal Financial Officer

Dated:  May 14, 2012



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