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EX-31.1 - CERTIFICATION - TOA Distribution Systems Inc. | ex31_1.htm |
EXCEL - IDEA: XBRL DOCUMENT - TOA Distribution Systems Inc. | Financial_Report.xls |
EX-32.1 - CERTIFICATION PURSUANT TO - TOA Distribution Systems Inc. | ex32_1.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal Quarter ended June 30, 2013
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from ____________ to ____________
TOA DISTRIBUTION SYSTEMS INC
(formerly Skyhigh Resources, Inc.)
(Exact Name of Registrant as Specified in its Charter)
Delaware 26-2746101
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5700 University West Blvd, Suite 304, Albuquerque NM 87106
(Address of principal executive offices)
(formerly 1791 Marcy Lynn Court, San Jose CA 95124)
505 919 8036
(Registrant's telephone number, including area code)
)
Securities Registered Pursuant to Section 12(B) of the Act: None
Securities Registered Pursuant to Section 12(G) of the Act:
Common Stock, par value $.001 per share
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No þ
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No þ
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 þ No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 229.405 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 þ No ¨
1
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-Q or any amendment to this Form 10-Q.þ
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer or a smaller reporting company. See definition of " large accelerated filer," or a smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer ¨ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company þ
Indicate by check mark if the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No þ
State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed fiscal quarter June 30, 2013 was $ $0.00 based on common shares outstanding of 47,100,060.
State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date.
47,100,060 shares of Common Stock, $0.001 par value, as of August 8, 2013
Documents incorporated by reference - None
Documents incorporated by reference - None
Part 1 – FINANCIAL INFORMATION
Item 1: FINANCIAL STATEMENTS
|
F-1
|
Unaudited
Condensed Balance Sheets as at June 30, 2013 and March 31, 2013
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F-2
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Unaudited Condensed Statements of Operations for the three months June 30, 2013 and June 30, 2012 respectively
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F-3
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Unaudited Condensed Statements Cash Flows for the three months June 30, 2013 and June 30, 2012 respectively
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F-4
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Notes to Unaudited Financial Statements
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F-5
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Item 2. Management’s Discussion and Analysis of Financial Conditions and Results of Operations
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2
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Item 3. Controls And Procedures
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3
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PART II – OTHER INFROMATION
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Item 1. Legal Procedures
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4
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
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4
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Item 3. Default Upon Senior Securities
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4
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Item 4. Submission Of Matters To A Vote Of Security Holders
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4
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Item 5. Other Information
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4
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Item 6. Exhibits
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4
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Signatures
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5
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2
ITEM 1- FINACIAL STATEMENTS
TOA Distribution Systems Inc
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||||||||
(formerly known as Skyhigh Resources Inc)
|
||||||||
A Development Stage Company
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||||||||
Condensed Balance Sheets
|
||||||||
At June
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At March
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|||||||
30, 2013 | 31, 2013 | |||||||
ASSETS
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||||||||
Cash
|
$ | 473 | $ | 518 | ||||
Total Current Assets
|
473 | 518 | ||||||
LIABILITIES
|
||||||||
Current Liabilities
|
||||||||
Accounts Payable
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6,337 | 5,987 | ||||||
Accrued Expenses
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2,505 | 5,255 | ||||||
Loans Payable Related Parties-Principal (Note 4)
|
41,014 | 36,299 | ||||||
Loans Payable Related Parties-Accrued Inetrest (Note 4)
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6,133 | 5,874 | ||||||
Total Current Liabilities
|
$ | 55,989 | $ | 53,415 | ||||
STOCKHOLDERS’ EQUITY (DEFICIT)
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||||||||
Capital Stock
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||||||||
Preferred Shares - 10,000,000 Shares Authorized, at $0.001
|
||||||||
per share - Zero Issued and Outstanding
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||||||||
Common Stock - 250,000,000 authorized at $0.001 par value
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||||||||
47,100,060 Issued and Outstanding at June 30, 2013
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||||||||
and March 31, 2013, respectively
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47,100 | 47,100 | ||||||
Additional paid-in capital
|
74,650 | 74,650 | ||||||
Deficit Accumulated During the Development Stage
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(177,266 | ) | (174,647 | ) | ||||
Total Stockholders’ Equity (Deficit)
|
$ | (55,516 | ) | $ | (52,897 | ) | ||
Total Liabilities and Stockholders’ Equity (Deficit)
|
$ | 473 | $ | 518 |
The accompanying notes are an integral part of these Financial Statements
F-2
3
TOA Distribution Systems Inc
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||||||||||||
(formerly known as Skyhigh Resources Inc)
|
||||||||||||
A Development Stage Company
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||||||||||||
Condensed Statements of Operations
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||||||||||||
3 Month
Period Ended
June 30, 2013
|
3 Month
Period Ended
June 30, 2012
|
Cumulative Amounts from Date of Incorporation April 2, 2007 to June 30, 2013
|
||||||||||
Revenue
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$ | 0 | $ | 0 | $ | 0 | ||||||
Expenses
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||||||||||||
General and Administrative
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2,360 | 4,281 | 98,917 | |||||||||
Impairment Expense-Mining Claim
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- | - | 26,250 | |||||||||
Impairment Expense-Distribution Agmt
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- | - | 42,500 | |||||||||
Total Expenses
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2,360 | 4,281 | 167,667 | |||||||||
Net Loss from Operations
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(2,360 | ) | (4,281 | ) | (167,667 | ) | ||||||
Other Income and (Expense)
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||||||||||||
Foreign Exchange
|
33 | |||||||||||
Interest
|
(259 | ) | (662 | ) | (9,632 | ) | ||||||
Provision for Income Tax
|
- | |||||||||||
Net Loss For The Period
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(2,619 | ) | (4,943 | ) | (177,266 | ) | ||||||
Basic And Diluted Loss Per Common Share
|
$ | (0.00 | ) | $ | (0.00 | ) | ||||||
Weighted Average Number of Common Shares Outstanding
|
47,100,060 | 47,100,060 |
The accompanying notes are an integral part of these Financial Statements
F-3
4
TOA Distribution Systems Inc
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(formerly known as Skyhigh Resources Inc)
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A Development Stage Company
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||||||||||||
Condensed Statements of Cash Flows
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||||||||||||
3 Month Period Ended June 30, 2013
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3 Month Period Ended June 30, 2012
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Cumulative Amounts from Date of Incorporation April 2, 2007 to June 30, 2013
|
||||||||||
Operating Activities
|
||||||||||||
Net Income (Loss)
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(2,619 | ) | (4,943 | ) | (177,266 | ) | ||||||
Adjustments To Reconcile Net Loss To Net Cash
|
||||||||||||
Provided by Operations
|
- | - | - | |||||||||
Stock Issued for Company Expenses paid by Related Parties
|
- | - | 22,000 | |||||||||
Company Expenses paid by Related Parties
|
4,715 | 2,710 | 44,635 | |||||||||
Impairment of mining Property
|
- | - | 26,250 | |||||||||
Impairment -Distribution License
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- | - | 42,500 | |||||||||
Change in Assets and Liabilities
|
||||||||||||
Increase (decrease) accounts payable
|
350 | 3,442 | 6,337 | |||||||||
Increase (decrease) in accrued expenses
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(2,750 | ) | (2,640 | ) | 2,505 | |||||||
Increase (Decrease) in Accrued Interest-Related Party
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259 | 661 | 8,781 | |||||||||
Increase (Decrease) in Loans Payable-Related Party
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- | - | - | |||||||||
Increase (Decrease) in Accrued Interest-Others
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- | - | 564 | |||||||||
Net Cash Provided (Used) by Continuing Operating Activities
|
(45 | ) | (770 | ) | (23,694 | ) | ||||||
Investing Activities
|
||||||||||||
Net Cash Provided (Used) by Investing Activities
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- | - | - | |||||||||
Financing Activities
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||||||||||||
Cash provided by (Used for) Notes Payable Related Party
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- | - | 13,577 | |||||||||
Cash provided by (Used for) Notes Payable- Others
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- | - | 4,590 | |||||||||
Stock Issued for Cash
|
- | - | 6,000 | |||||||||
Net Cash Provided (Used) by Financing Activities
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- | - | 24,167 | |||||||||
Increase (Decrease) in Cash from Continuing Operations
|
(45 | ) | (770 | ) | 473 | |||||||
Cash and Cash Equivalents at Beginning of Period
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518 | 1,812 | - | |||||||||
Cash and Cash Equivalents at End of Period
|
473 | 1,042 | 473 | |||||||||
Supplemental Information
|
||||||||||||
Cash Paid For:
|
||||||||||||
Income Taxes
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- | - | - | |||||||||
Non-Cash Activities
|
||||||||||||
Stock issued for services
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- | - | 3,000 | |||||||||
Stock issued for Interest Payable
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- | - | 287 | |||||||||
Stock issued for Accounts Payable
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- | - | 10,713 | |||||||||
Stock Issued for mining claims
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- | - | 26,250 | |||||||||
Stock Issued for Distribution Agreement
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- | - | 42,500 | |||||||||
Contributed Capital- sale of mineral claims to Related Parties
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- | 25,000 | 25,000 | |||||||||
Interest
|
259 | 661 | 8,781 |
The accompanying notes are an integral part of these Financial Statements
F-4
5
TOA Distribution Systems Inc
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||||||||||||||||||||
(formerly known as Skyhigh Resources Inc)
|
||||||||||||||||||||
A Development Stage Company
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||||||||||||||||||||
Condensed Statements of Stockholders’ Equity (Deficit)
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||||||||||||||||||||
From Inception on April 2, 2007 through June 30, 2013
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Deficit
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|||||||||||||||||||
Accumulated
|
||||||||||||||||||||
During the
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||||||||||||||||||||
Common Stock
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Paid-In
|
Development
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Stockholders'
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|||||||||||||||||
Shares
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Amount
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Capital
|
Stage
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Equity (Deficit)
|
||||||||||||||||
Balance, April 2, 2007 (Date of Inception)
|
-- | $ | -- | $ | -- | $ | -- | $ | -- | |||||||||||
Common Stock issued for cash at $0.0001 per
|
||||||||||||||||||||
share on December 13, 2007
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15,000,000 | 15,000 | (13,500 | ) | 1,500 | |||||||||||||||
Common Stock issued for debt at $0.0025
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||||||||||||||||||||
per share on December 13, 2007
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600,000 | 600 | 900 | 1,500 | ||||||||||||||||
Common Stock issued for mining property
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||||||||||||||||||||
at $0.01 per share on January 10, 2008
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2,000,000 | 2,000 | 18,000 | 20,000 | ||||||||||||||||
Deficit for Period from Inception on April 2, 2007
|
||||||||||||||||||||
to March 31, 2008
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(10,472 | ) | (10,472 | ) | ||||||||||||||||
Balance March 31, 2008
|
17,600,000 | 17,600 | 5,400 | (10,472 | ) | 12,528 | ||||||||||||||
Deficit for the year ended March 31, 2009
|
(38,246 | ) | (38,246 | ) | ||||||||||||||||
Balance March 31, 2009
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17,600,000 | 17,600 | 5,400 | (48,718 | ) | (25,718 | ) | |||||||||||||
Common Stock issued for Cash at $0.0025
|
||||||||||||||||||||
per share on May 11, 2009
|
2,400,000 | 2,400 | 3,600 | 6,000 | ||||||||||||||||
Common Stock issued for accounts payable -
|
||||||||||||||||||||
related party at $0.0025 per share on June 1, 2009
|
4,285,000 | 4,285 | 6,428 | 10,713 | ||||||||||||||||
Common Stock issued for loans payable at
|
||||||||||||||||||||
$0.0025 per share on June 13, 2009
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3,315,000 | 3,315 | 4,972 | 8,287 | ||||||||||||||||
Common Stock issued for mining property at
|
||||||||||||||||||||
$0.0025 per share on June 15, 2009
|
2,500,060 | 2,500 | 3,750 | 6,250 | ||||||||||||||||
Common Stock issued for distribution agreement
|
||||||||||||||||||||
at $0.0025 per share on September 2, 2009
|
17,000,000 | 17,000 | 25,500 | 42,500 | ||||||||||||||||
Deficit for the year ended March 31, 2010
|
(74,388 | ) | (74,388 | ) | ||||||||||||||||
Balance March 31, 2010
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47,100,060 | 47,100 | 49,650 | (123,106 | ) | (26,356 | ) | |||||||||||||
Deficit for the year ended March 31, 2011
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(7,803 | ) | (7,803 | ) | ||||||||||||||||
Balance March 31, 2011
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47,100,060 | 47,100 | 49,650 | (130,909 | ) | (34,159 | ) | |||||||||||||
Deficit for - 12 month period ended March 31, 2012
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(26,606 | ) | (26,606 | ) | ||||||||||||||||
Balance March 31, 2012
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47,100,060 | 47,100 | 49,650 | (157,515 | ) | (60,765 | ) | |||||||||||||
Contributed Capital - Note 6
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25,000 | 25,000 | ||||||||||||||||||
Deficit for the year ended March 31, 2013
|
(17,132 | ) | (17,132 | ) | ||||||||||||||||
Balance March 31, 2013
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47,100,060 | 47,100 | 74,650 | (174,647 | ) | (52,897 | ) | |||||||||||||
Deficit for - 3 month period ended June 30, 2013
|
(2,619 | ) | (2,619 | ) | ||||||||||||||||
Balance June 30, 2013
|
47,100,060 | 47,100 | 74,650 | (177,266 | ) | (55,516 | ) |
The accompanying notes are an integral part of these Financial Statements
F-5
6
TOA Distribution Systems Inc
(formerly known as Skyhigh Resources Inc)
A Development Stage Company
Notes to Financial Statements
June 30, 2013
NOTE 1. BASIS OF PRESENTATION
In August 2009 the Company initiated a number of corporate changes, including 1), a name change to TOA Distribution Systems Inc, (formerly known as Skyhigh Resources Inc, 2) approved a 10 for 1 roll forward of its issued and outstanding common stock, 3), increased it authorized par value $0.001 common shares to 250,000,000 shares (formerly 50,000,000), and 4), authorized 10,000,000 par value $0.001 preferred shares.
The Company also resolved to change its corporate focus, moving from mining and exploration into bottled drinking water distribution.
On September 2, 2009 the Company entered into to a Sub-Distribution agreement with Taste of Aruba (US), Inc to distribute bottled water products produced in Aruba by Taste of Aruba-Premium Aruban Water. The territory in which the Company can distribute these products include the United States and all its territories and insular areas in the Caribbean and Pacific such as but not limited to Puerto Rico, U.S. Virgin Islands, Marshall Islands, and Guam, and all of Canada.
The water product is made from desalinated seawater, is filtered through coral calcium and will be further enhanced by the addition of electrolytes then bottled in Taste of Aruba’s proprietary biodegradable bottles. The products will be marketed to retail locations that currently handle bottled water such as display cases in food beverage marketer at airports, food chain store, and sublicensing to bulk dealers and will include the use of vending machines located at high traffic locations.
The Company owned two (2) mineral properties, which were acquired by issuing stock to related parties and which had been fully impaired. These claims were deemed surplus, had been held for sale for about two years and were sold in May 2012.
In the opinion of management, the accompanying balance sheets and related interim statements of income, cash flows, and stockholders' equity include all adjustments, consisting only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management's estimates and assumptions.
Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Form IO-K filed on July 2, 2013
7
NOTE 2. GOING CONCERN
The accompanying financial statements have been prepared in conformity with generally accepted accounting principles (GAAP) in the United States of America, which contemplates continuation of the Company as a going concern. However, the Company has no business operations to date, accumulated losses amounting to $177,266 and must secure additional financing to commence the Company’s plan of operations, which means there is substantial concern about the Company’s ability to continue as a going concern. The Company intends to acquire additional operating capital through equity offerings to the public to fund its business plan or loans from shareholders and others. There is no assurance that the equity offerings will be successful or loans will be received to provide sufficient funds to commence operations or to assure the eventual profitability of the Company.
NOTE 3. SUB-DISTRIBUTION AGREEMENT
On September 2, 2009 the Company signed an Exclusive Sub-Distribution Agreement (“Agreement”) with Taste of Aruba (US) Inc, a State of Nevada Incorporated company, owner and master distributor of products from Taste of
NOTE 3. SUB-DISTRIBUTION AGREEMENT (Continued)
Aruba-Premium Aruban Water. Under the Agreement, the Company will distribute in the United States, its territories and insular areas in the Caribbean and Pacific and Canada, bottled water produced under license in Aruba
by Water Energy Company-Aruba. To maintain the Agreement, the Company will be required to meet certain product sales volumes after Taste of Aruba commences production. The start of production by Taste of Aruba had been delayed due to it inability to complete funding arrangements which is now reported to be eminent although to date these funds have not been received. If Taste of Aruba receives funding as projected, the production facility is
projected to be complete by October 31, 2013. Payment for the Agreement cost of $42,500, which was fully impaired on acquisition, was paid by the issuance of 17,000,000 post dividend shares of the Company’s common restricted stock issued in accordance with ASC 505-50-30-6 at $0.025 per share.
The Company periodically reviews for impairment its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Management has determined that its Distribution Agreement asset requires impairment. As no sale activities have occurred, no product is yet available for sale and funds to establish a sales and distribution operation have not been secured.
NOTE 4. LOANS PAYABLE – RELATED PARTIES
Loans payable to related parties were received from a director of the Company and others closely associated persons or businesses. These funds were provided as cash loans to cover operating expenses and as payment for services provided.
During this period a review of the financial records pertaining to Loan Payable-related parties disclosed an error in the year ended March 31, 2012 where a duplicate entry in the amount of $282 was posted to the records. The entry overstated the interest cost for the aforementioned year The amount was reversed during this reporting period. Management deemed the amount to be immaterial it represented about 1% of the total expenses for the year.
8
Loans payable to a director totaled $5,034 made up of principal amounting to $3,660 and accrued interest of $1,374
Loans payable to a closely associated business totaled $42,113; made up of principal amounting to $37,354 and accrued interest amounting to $ 4,759
In aggregate, Loans Payable Related Parties to March 31, 2013 totaled $47,147 made up of $41,014 for principal and $6,133 for accrued interest.
NOTE 5. EQUITY
At a special shareholders meeting held August 13, 2009, the shareholders approved the change of the Company’s name to TOA Distribution Systems Inc, approved charges to the authorized capital which included creation of 10,000,000 shares of preferred stock at a par value of $0.01 per share and increased the authorized common stock to 250,000,000 with a par value of $0.001 per share. As well, the shareholders approved a 10 for 1 forward stock split of the outstanding shares. All share amounts shown in these financial statements have been adjusted retroactively to account for the forward stock split.
In May 2012 we sold our two mineral claims for $25,000. As the sale was made to a related party, the sale amount was recorded to Additional Paid In Capital and not treated as a gain.
At June 30, 2013 we had zero preferred stock issued and outstanding and had 47,100,060 common shares issued and outstanding, which were issued on the dates and for the purposes listed below.
- 15,000,000 common shares issued to a director for cash at $0.0001 on December 13, 2007
- 600,000 common shares issued for services at $0.0025 on December 13, 2007
- 2,000,000 common shares issued for a mining property at $0.01 on January10, 2008
- 2,400,000 common shares issued for cash at $0.0025 on May 11, 2009
- 4,285,000 common shares issued for accounts payable at $0.0025 on June 1, 2009
- 3,315,000 common shares issued for loan payable at $0.0025 on June 13, 2009
- 2,500,060 common shares issued for a mining property at $0.0025 on June 15, 2009
- 17,000,000 common shares issued for a sub-distribution agreement at $0.0025 on Sept 2, 2009
NOTE 6. CONTRIBUTED SURPLUS
The Company owned two (2) mineral claims that had been deemed surplus and fully impaired. On to May 1, 2012 these claims were sold to a related party to whom the Company had loans payable. The terms of the sale was a reduction of the loans payable and proportionate accrued interest in aggregate amounting to Twenty-Five Thousand Dollar, ($25,000.00), an extension on the due date of the loan to November 13, 2013, a reduction of the rate of interest payable to 5% and the issuance by the purchaser of shares in two private companies. These shares were valued at $0 therefore there was no impact on the financial statements. These shares were distributed equally to each of the shareholders of the Company.
NOTE 7. SUBSEQUENT EVENTS
The Company has evaluated subsequent events through the date that the financial statements were issued. There were no significant subsequent events that need to be disclosed.
9
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
PLAN OF OPERATION
In an effort to make available the facilities of the public market to our funding requirements, the Company intends to make application to FINRA for the Company's shares to be quoted on the OTCBB. The Company's application to FINRA will consist of current corporate information, financial statements and other documents as required by Rule 15c211 of the Securities Exchange Act of 1934.
Subject to receiving adequate funding and the water product being available from Taste of Aruba products, we will selectively target various distribution outlets / locations such as airports, trade shows, exhibitions and other public activities which attract large gatherings of people.
On November 17, 2012, the Company filed a Form 8-K, Item 5.02: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers with the Securities and Exchange Commission. This 8-K filing disclosed the resignation of Trevor Blank as a Director and from all officer positions held with the Company. Concurrent with Mr. Blank’s resignation, Mr. Andy Ruppanner was appointed to serve as sole director and as President and CEO, Vice-President and CFO, Secretary and Treasurer.
RESULTS OF OPERATIONS
Interim Period: For the three month period ended June 30, 2013 and comparable three month period in 2012
No sales or income was recorded for this period
Operating Costs and Expenses
The net loss incurred for the three-month period ended June 30, 2013 amounted to $2,619 compared to $4,943 for the comparable period in 2012. Total expenses incurred during the three-month period April 1, 2013 to June 30, 2013were $2,360 compared to $4,281 for the same period in 2012. The amount of $2,360 was made up of audit expenses $1,750, and Edgar filing fees of $500, stock fees of $100 and miscellaneous other costs of $10 whereas in the comparable 2012 period expenses totalling $4,281 was made up of audit expenses $1,750, stock transfer fees of $2,002 and Edgar filing fees of $470. Interest expense amounted to $259 for the three-month period ended June 30, 2013, compared to $662 for the comparable period in 2012. Current period expenses were lower due to reduced stock transfer fees amounting to $1902. Lower interest costs are a result of lower total loans payable upon which interest was charged and a correction made in this period for an non-material overcharge in a previous period amounting to $282.
10
SELECTED FINANCIAL INFORMATION
June 30, 2013
|
||||
Current Assets
|
$ | 473 | ||
Total Assets
|
$ | 473 | ||
Current Liabilities
|
$ | (55,989 | ) | |
Stockholders' Equity
|
$ | (55,516 |
LIQUIDITY AND CAPITAL RESOURCES
Our cash balance was $473 on June 30, 2013. During this three-month period ended June 30, 2013 we received loans from related parties amounting to $4,715. These loans and a commitment for any additional funds required through September 30, 2013 will be sufficient to fund our limited levels of operations. We are a development stage company and have generated no revenue to date. We sold 10,000,000 shares of common stock in June 2009 for $25,000 for cash amounting to $6,000, and for debt reduction amounting to $19,000. The debt reduction in the amount of $19,000 consisted of loans payable amounting to $8,287 and accounts payable amounting to $10,713.
We have loans payable including interest amounting to $47,147 due December 2014, accrued expenses of $2,505 made up of audit fees and Edgar fees, and $6,337 for accounts payable. These accruals and accounts payable exceed our cash available by $8,369. We have received commitments from related parties and shareholders for additional funds to pay expenses for our minimum level of operations through September 30, 2013.
Our auditor has issued a going concern opinion. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills. This is because we have not generated revenues and no revenues are anticipated until we begin receiving and selling water products. There is no assurance we will ever reach that stage.
OFF-BALANCE SHEET ARRANGEMENTS
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
ITEM 3. CONTROLS AND PROCEDURES
EVALUATION OF DISCLOSURE CONTROLS
As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act). Based upon this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are ineffective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Security and Exchange Commission's rules and forms.
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There has been no change in our internal control over financial reporting during the current quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
EVALUATION OF AND REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Our management is responsible for establishing and maintaining adequate internal control over financial reporting for the company. Internal control over financial reporting is to provide reasonable assurance regarding the reliability of our financial reporting purposes accordance with accounting principles generally accepted in the United States of America. Internal control over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect our transaction; providing reasonable assurance that transactions are recorded as necessary for preparations of our financial statements; providing reasonable assurance that receipts and expenditures of company assets are made in accordance with management authorization; and providing reasonable assurance that unauthorized acquisitions, use or disposition of company assets that could have a material effect on our financial statements would be prevented or detected.
Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation management concluded that the Company's internal control over financial reporting was ineffective as of June 30, 2013. There where no changes in our internal controls over financial reporting during the period ended June 30, 2013 that have materially affected, or are reasonable likely to materially affect our internal control over financial reporting.
PART II - OTHER INFORMATION
ITEM 1. LEGAL MATTERS
None
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
On March 25, 2009 our Registration Statement on Form S-1, commission file number 333-153863, became effective and qualified under Rule 144 for the sale of 10,000,000 shares of the Company’s common sold in accordance with the requirements of Section 4(2) offering under the Securities Act of 1933, as amended and Rule 506 promulgated thereunder. The offering was fully subscribed by June 25, 2009 raising a total of $25,000. There were no underwriters for this offering.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
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ITEM 6. EXHIBITS AND REPORTS
The following exhibits are included herein, except for the exhibits marked with a footnote, which are incorporated herein by reference and can be found in the appropriate document referenced.
3.1
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Articles and By-Laws as filed with the Delaware Secretary of State April 02, 2007*
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Amendment to By-Laws dated August 13, 2009*
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99.2
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Geologist Report*
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31.1
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Rule 13a-14(a)/15d-14(a) Certification by the Principal Executive Officer**
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31.2
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Rule 13a-14(a)/15d-14(a) Certification by the Principal Financial Officer**
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32.1
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Section 1350 Certification by the Principal Executive Officer**
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32.2
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Section 1350 Certification by the Principal Financial Officer**
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* Incorporated by reference to the Registrant's Registration Statement on Form S-1, filed on October 6, 2008.
** Filed herewith
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SIGNATURES
In accordance with Section 13 or 15 (d) of the Securities Exchange Act of 1934,the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
In accordance with the requirements of the Securities Act, this 10-Q has been signed by the following persons in the capacities and on the dates stated.
SIGNATURE
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TITLE
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DATE
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TOA DISTRIBUTION SYSTEMS INC.
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/s/ Andy Ruppanner
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Chief Executive Officer, Chief Financial Officer, Secretary, Director
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August 8, 2013
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Andy Ruppanner
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(Principal Executive Officer)
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