Attached files

file filename
EX-31.1 - EXHIBIT 31.1 - Veracity Management Global, Inc.veracity10q93012x311_912012.htm
EX-32.1 - EXHIBIT 32.1 - Veracity Management Global, Inc.veracity10q93012x321_912012.htm
EX-31.2 - EXHIBIT 31.2 - Veracity Management Global, Inc.veracity10q93012x312_912012.htm
EX-32.2 - EXHIBIT 32.2 - Veracity Management Global, Inc.veracity10q93012x322_912012.htm

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________
 
 
FORM 10-Q
 
___________________
 
 
ý                                  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended September 30, 2012
 
or
 
 
o                                  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 0-52493
 
VERACITY MANAGEMENT GLOBAL, INC.
(Exact Name Of Registrant As Specified In Its Charter)
 
Delaware
43-1889792
(State of Incorporation)
(I.R.S. Employer Identification No.)
   
21819 Town Place Drive, Boca Raton, FL
33433
(Address of Principal Executive Offices)
(ZIP Code)
 
Registrant's Telephone Number, Including Area Code: : (561) 998-8425
 
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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x No ¨
 
Large Accelerated Filer o
 
Accelerated Filer o
 
Non-Accelerated Filer o (Do not check if a smaller reporting company)
 
Smaller Reporting Company þ
 
On November 1, 2012, the Registrant had 16,643,057 shares of common stock issued and outstanding.
 
 
 
 

 
 
 
TABLE OF CONTENTS
 



PART I  FINANCIAL INFORMATION
 
 
Item 1. Unaudited Financial Statements
3
   
Item 2. Management’s Discussion and Analysis and Plan of Operation
9
   
Item 3. Quantitative and Qualitative Disclosures About Market Risk
10
   
Item 4. Controls and Procedures
10
   
PART II  OTHER INFORMATION
 
   
Item 1. Legal Proceedings
11
   
Item 1A. Risk Factors
11
   
Item 2. Recent Sales of Unregistered Equity Securities and Use of Proceeds
11
   
Item 3. Defaults Upon Senior Securities
11
   
Item 4. Mine Safety Disclosures
11
 
 
Item 5. Other Information
11
   
Item 6. Exhibits
11
   
Signatures
12
 
 
 

 
-2-

 
 
PART I - FINANCIAL INFORMATION
 
ITEM 1. (Unaudited) FINANCIAL STATEMENTS
 
VERACITY MANAGEMENT GLOBAL, INC.
BALANCE SHEETS
    (UNAUDITED)
               (A Development Stage Company)
 
   
September 30,
   
June 30,
 
ASSETS
 
2012
   
2012
 
             
Current Assets
           
    Cash
  $ 149     $ 194  
Total Current Assets
    149       194  
                 
                 
Total Assets
  $ 149     $ 194  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT
               
                 
Current Liabilities
               
     Accounts Payable
  $ -     $ 1,193  
     Accounts Payable - Related party
    92,902       88,124  
Total Current Liabilities
    92,902       89,317  
                 
Total Non - Current Liabilities
    -       -  
                 
Total Liabilities
    92,902       89,317  
                 
Stockholders' Deficit
               
     Preferred Stock, $.001 par value, 5,000,000 shares
               
     authrized, 0 shares issued and outstanding
    -       -  
     Common Stock, $.001 par value, 3,500,000,000 shares
               
     authorized, 16,643,057 and 16,643,057 shares issued and
               
     outstanding at September 30, 2012 and June 30, 2012 respectively
    16,635       16,635  
Additional paid-in capital
    4,052,836       4,052,836  
Accumulated deficit prior to development stage
    (4,040,470 )     (4,040,470 )
Accumulated deficit during the development stage
    (121,754 )     (118,124 )
                 
Total Stockholders' Deficit
    (92,753 )     (89,123 )
                 
Total Liabilities and Stockholders' Defecit
  $ 149     $ 194  
 
The accompanying notes to financial statements are integral part of these financial statements.
 

 
-3-

 
 
VERACITY MANAGEMENT GLOBAL, INC.
Statements of Operations
For the Three Months Ended September 30, 2012 and 2011 and the period from July 1, 2008 to September 30, 2012
(Unaudited)
(A Development Stage Company)
 
   
2012
   
2011
   
Period re-entered development stage (July 1, 2008) to September 30, 2012
 
Revenues
  $ -     $ -     $ -  
                         
Cost of Sales
    -       -       -  
                         
Gross Profit
    -       -       -  
                         
Expenses
                       
                         
Administrative Expenses
    3,000       3,000       61,828  
                         
General Expenses
    630       176       60,026  
                         
Total Expenses
    3,630       3,176       121,854  
Other Income
                       
Interest income
    -       -       100  
Net Income (Loss)
  $ (3,630 )   $ (3,176 )   $ (121,754 )
                         
                         
Basic and Diluted Net Loss per Share
    *       *          
                         
Weighted Average Shares
    16,643,057       16,643,057          

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

 
-4-

 

VERACITY MANAGEMENT GLOBAL, INC.
STATEMENT OF STOCKHOLDERS' DEFICIT
(Unaudited)
(A Development Stage Company)
 
 
   
Common Stock Shares
   
Amount
   
Additional Paid-in Capital
   
Accumulated Deficit during developmnet stage
   
Accumulated Deficit
   
Total
 
Balance at June 30, 2012
    16,643,057     $ 16,635     $ 4,052,836     $ (118,124 )   $ (4,040,470 )   $ (89,123 )
     Net loss
                            (3,630 )             (3,630 )
Balance at September 30, 2012
    16,643,057     $ 16,635     $ 4,052,836     $ (121,754 )   $ (4,040,470 )   $ (92,753 )
 
The accompanying notes to financial statements are integral part of these financial statements
 

 
-5-

 
 
VERACITY MANAGEMENT GLOBAL, INC.
STATEMENT OF CASH FLOWS
(Unaudited)
(A Development Stage Company)
 
   
Three Months Ended, September 30,
   
Three Months Ended, September 30,
   
Period re-entered development stage (July 1, 2008) to September 30,
 
   
2012
   
2011
     2012  
CASH FLOWS FROM OPERATING ACTIVITIES
                 
Net loss from continuing operations
  $ (3,630 )   $ (3,176 )   $ (121,754 )
Adjustments to reconcile net loss to net cash
                       
   used in operating activities:
                       
Shares issued for services:
    -       -       50,000  
Increase (decrease) in:
                       
    Accounts Payable
    (1,193 )     2,820       3,524  
                         
Net cash used in operating activities
    (4,823 )     (356 )     (68,230 )
                         
CASH FLOWS FROM FINANCING ACTIVITIES
                       
Related party - acconts payable
    4,778       500       67,794  
                         
Net cash provided by financing activities
    4,778       500       67,794  
                         
NET INCREASE (DECREASE) IN CASH
    (45 )     144       (436 )
                         
CASH - BEGINNING OF PERIOD
    194       585       585  
                         
CASH - END OF PERIOD
  $ 149     $ 729     $ 149  
 
The accompanying notes to financial statements are integral part of these financial statements.
 

 
-6-

 

VERACITY MANAGEMENT GLOBAL, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED SEPTEMBER 30, 2012
(A Development Stage Company)
(Unaudited)
 
NOTE 1 – BASIS OF PRESENTATION
 
The accompanying financial statements of Veracity Management Global, Inc (the "Company", "VCMG") at September 30, 2012 have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in conformity with generally accepted accounting principles have been omitted or condensed pursuant to such rules and regulations. These statements should be read in conjunction with VCMG’s audited financial statements and notes thereto included in VCMG’s Form 10-K. In management’s opinion, these unaudited interim financial statements reflect all adjustments (consisting of normal and recurring adjustments) necessary for a fair presentation of the financial position and results of operations for each of the periods presented. The accompanying unaudited interim financial statements for the three months ended September 30, 2012 are not necessarily indicative of the results which can be expected for the entire year.
 
 Basis of Presentation
 
The Company follows accounting principles generally accepted in the United States of America.  Certain prior period amounts have been reclassified to conform to the September 30, 2008 presentation.  On August 2, 2007, the Company’s Board of Directors approved a 1 for 73 reverse split of the Company’s common stock by Action of the Board and a majority of shareholders. All information related to common stock, warrants to purchase common stock and earnings per share have been retroactively adjusted to give effect to the stock split.

The statements of operations show the effect of a reclassification of the distribution of the subsidiary companies until July 1, 2008. The reclassification included all parts of the prior operations for both subsidiary companies as loss from discontinued operations for the prior reported period.

In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein.  The financial statements include the accounts of Veracity Management Global, Inc and the operations of Secured Financial Data, Inc and Veracity Management Group, Inc. are being reported as loss from discontinued operations. Any inter-company transactions have been eliminated as part of the transaction.

As a development stage company, the Company continues to rely on infusions of debt and equity capital to fund operations. The Company relies principally on cash infusions from its directors and affiliates, and paid a significant amount of personal services and salaries in the form of common stock.

Recently Issued Accounting Standards

In June 2011, the FASB issued new authoritative accounting guidance that states an entity that reports items of other comprehensive income has the option to present the components of net income and comprehensive income in either one continuous financial statement, or two consecutive financial statements, including reclassification adjustments.

In December 2011, the FASB issued new authoritative accounting guidance which effectively deferred the requirement to present the reclassification adjustments on the face of the financial statements. This authoritative accounting guidance is effective for interim and annual periods beginning after December 15, 2011. Based on the Company’s current operations and structure, the adoption of this standard is not expected to have an impact on the Company’s 2012 financial statements.

 
-7-

 

VERACITY MANAGEMENT GLOBAL, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED SEPTEMBER 30, 2012
(A Development Stage Company)
(Unaudited)
 

 
In May 2011, the FASB issued Accounting Standards Update 2011-04, Fair Value Measurement: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS, which amended FASB ASC Topic 820, Fair Value Measurement. The objective of this update is to create common fair value measurement and disclosure requirements between GAAP and International Financial Reporting Standards (“IFRS”). The amendments clarify existing fair value measurement and disclosure requirements and make changes to particular principles or requirements for measuring or disclosing information about fair value measurements. These amendments are not expected to have a significant impact on companies applying GAAP. This provision is effective for interim and annual periods beginning after December 15, 2011. Adoption of this update is not expected to have a material impact on the Company’s disclosures and financial statement. 
 
Management does not anticipate that the adoption of these standards will have a material impact on the financial statements.
 
 
NOTE 2- GOING CONCERN
 
Veracity Management Global, Inc.’s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business for the foreseeable future. Since inception, the Company has accumulated losses aggregating to $4,162,224 and has insufficient working capital to meet operating needs for the next twelve months as of September 30, 2012, all of which raise substantial doubt about VCMG’s ability to continue as a going concern.
 
 
NOTE 3 – ACCOUNTS PAYABLE – RELATED PARTY
 
The officers and directors of the Company have advanced funds to pay for the filing and other necessary costs of the Company. The following are the advances from the officers and directors:
 
   
September 30, 2012
   
June 30, 2012
 
             
Donald W Prosser (Director)
 
$
86,902
   
$
82,124
 
Gregory Paige (CEO & Director)
   
6,000
     
6,000
 
                 
Total
 
$
92,902
   
$
88,124
 

 
NOTE 4 – SUBSEQUENT EVENTS
 
There were not any subsequent events through the date November 1, 2012.

 
-8-

 
 
Forward-Looking Statement
 
Some of the statements contained in this quarterly report of Veracity Management Global, Inc., a Delaware corporation (hereinafter referred to as "we", "us", "our", "Company" and the "Registrant") discuss future expectations, contain projections of our plan of operation or financial condition or state other forward-looking information. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use of words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. From time to time, we also may provide forward-looking statements in other materials we release to the public.
 
General
 
The Registrant acquired its operating subsidiaries Veracity Management Group, a Florida corporation ("VMG") and Secured Financial Data Inc., a Florida corporation ("SFD") effective on July 1, 2006. Prior to the acquisition of its operating subsidiaries, during the period from May 2002 until the acquisition of its operating subsidiaries on July 1, 2006, the Registrant had only limited business operations. The Registrant operated the above named subsidiaries until July 1, 2008 until the when the Registrant rescinded the merger and the Registrant has no business operations and is in the business of acquiring a target company or business seeking the perceived advantages of being a publicly held corporation. Our principal business objective for the next 12 months and beyond such time will be to achieve long-term growth potential through a combination with a business rather than immediate, short-term earnings. The Registrant will not restrict our potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business.
 
The results of operations comparative information has no meaning as the operations were removed as part of the rescinding of the mergers of the operating businesses.
 
Results of Operations for the Three Months Ended September 30, 2012 Compared to Three Months Ended September 30, 2011
 
The results of the recession agreement made the Company a shell company as defined in Rule 12b-2 of the Exchange Act.
 
Revenues. The Company recorded revenue of $0 and $0 for the three months ended September 30, 2012 and 2011, respectively.
 
Cost of Services. The Company recorded cost of services of $0 and $0 for the three months ended September 30, 2012 and 2011, respectively.
 
Administrative Expenses: Our administrative expenses totaled $3,000 for the three-months ended September 30, 2012 as compared to $3,000 administrative expenses for the same period ended September 30, 2011.
 
General Expenses There was $630 of general expenses that were expensed during the three-months ended September 30, 2012. There was $176 in general expenses for the three months period ended September 30, 2011.
 
Net Loss. We incurred a net loss of $3,630 during the three-month period ended September 30, 2012, compared to a net loss of $3,176 during the three-month period ended September 30, 2011.

 
-9-

 

 
Liquidity and Capital Resources
 
At September 30, 2012 and June 30, 2012, we had total assets of $149 and $194, respectively. We had total current liabilities of $92,902 at September 30, 2012 compared to $89,317 at June 30, 2012. We had long-term liabilities of $0 as of September 30, 2012 compared to $0 at June 30, 2012.
 
We had a working capital deficit of $(92,753) at September 30, 2012. Net cash used in operations during the three-month period ended September 30, 2012 was $(4,823). For the three-month period ended September 30, 2011 the net cash used in operations was $(356).
 
During the three-month period ended September 30, 2012, financing activities provided $4,778 compared to $500 during the same three-month period in the prior year.
 
There are no limitations in the Company's articles of incorporation on the Company's ability to borrow funds or raise funds through the issuance of restricted common stock.
 
Plan of Current and Future for the year 2013
 
The Company has no business operations and is in the business of acquiring a target company or business seeking the perceived advantages of being a publicly held corporation. Our principal business objective for the next 12 months and beyond such time will be to achieve long-term growth potential through a combination with a business rather than immediate, short-term earnings. The Company will not restrict our potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business.


ITEM 3. QUANTITATIVE and QAULITATIVE DISCUSSION ABOUT MARKET RISK

The Company is defined by Rule 229.10 (f)(1) as a “Smaller Reporting Company” and is not required to provide or disclose the information required by this item.
 
 
ITEM 4. CONTROLS AND PROCEDURES
 
As of September 30, 2012, our Chief Executive Officer and Chief Financial Officer (the “Certifying Officers”) conducted evaluations of our disclosure controls and procedures. As defined under Sections 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 Act, as amended (the “Exchange Act”) the term “disclosure controls and procedures” means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including the Certifying Officers, to allow timely decisions regarding required disclosure. Based on this evaluation, the Certifying Officers have concluded that our disclosure controls and procedures were not effective to ensure that material information is recorded, processed, summarized and reported by our management on a timely basis in order to comply with our disclosure obligations under the Exchange Act, and the rules and regulations promulgated there under.
 
As of September 30, 2012, there were no other changes in our internal control over financial reporting during the subject fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 
-10-

 
 
PART II - OTHER INFORMATION
 
 
ITEM 1. LEGAL PROCEEDINGS
 
None.
 
Item 1A - RISK FACTORS
 
There have been no material changes to the risk factors set forth in our Annual Report on Form 10-K for the year ended June 30, 2012, as filed with the SEC on September 25, 2012 and amended on May 1, 2012. The risk factors in our Annual Report on Form 10-K for the year ended June 30, 2012, in addition to the other information set forth in this quarterly report, could materially affect our business, financial condition or results of operations. Additional risks and uncertainties not currently known to us or that we deem to be immaterial could also materially adversely affect our business, financial condition or results of operations.
 
 
ITEM 2. RECENT SALES OF UNREGISTERED EQUITY SECURITIES AND USE OF PROCEEDS
 
None.
 
 
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
 
None.
 
 
ITEM 4. MINE SAFETY DISCLOSURES
 
Not Applicable
 
 
ITEM 5. OTHER INFORMATION
 
None.
 
 
ITEM 6. EXHIBITS
 
 
(a) The following documents are filed as exhibits to this report on Form 10-Q or incorporated by reference herein.
 
Exhibit No.
Description
   
31.1
Certification of CEO pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
31.2
Certification of CFO pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
32.1
Certification of CEO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
   
32.2
Certification of CFO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


 
-11-

 


 
Veracity Management Global, Inc.
 
 
SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.
 
/s/Gregory L. Paige
Gregory L. Paige
   CEO
   Dated: November 1, 2012
 
 
/s/ Mark L. Baker
Mark L. Baker
   CFO
   Dated: November 1, 2012
 

 
- 13 -