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EX-32 - EXHIBIT 32 SECTION 906 CERTIFICATION - CINJET INCf10k123113_ex32.htm
EX-31 - EXHIBIT 31 SECTION 302 CERTIFICATION - CINJET INCf10k123113_ex31.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-K


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


For the fiscal year ended: December 31, 2013


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


For the transition period from __________ to __________


Commission File No. 000-52446


CINJET, INC.

(Name of small business issuer in its charter)


Nevada

20-8609439

(State or other jurisdiction

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

of incorporation or organization)

 


123 West Nye Lane, Ste 129

Carson City, NV  89706

(Address of principal executive offices)


Issuer’s telephone number: 831-770-0217


Securities Registered pursuant to Section 12(b) of the Act:  None.


Securities Registered pursuant to Section 12(g) of the Exchange Act:  None.


Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes      . No  X .


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  X .


Note – checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Exchange Act from their obligations under those Sections.


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  X . No      .


Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulations 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-K or any amendment to this Form 10-K.  X .


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


Large accelerated filer

      .

Accelerated filer

      .

Non-accelerated filer

      . (Do not check if a smaller reporting company)

Smaller reporting company

  X .




Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes  X . No      .


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 second fiscal quarter.  Our common stock is listed on the Over the Counter Bulletin Board (“OTCBB”), under the symbol “CINJ.”  There was not an active market and no trading volume during fiscal 2012 and there has been no trading volume in 2013, therefore the aggregate market value of the issuer’s common stock held by non-affiliates at February 3, 2014 is deemed to be $-0-.


Note. – If a determination as to whether a particular person or entity is an affiliate cannot be made without involving unreasonable effort and expense, the aggregate market value of the common stock held by non-affiliates may be calculated on the basis of assumptions reasonable under the circumstances, provided that the assumptions are set forth in this Form.


APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY

PROCEEDING DURING THE PRECEDING FIVE YEARS:


Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes      . No      .


(APPLICABLE ONLY TO CORPORATE REGISTRANTS)


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


Class

Outstanding as of February 3, 2014

Common Stock, $.0001 par value

10,777,000


DOCUMENTS INCORPORATED BY REFERENCE


List hereunder the following documents if incorporated by reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) Any annual report to security holders; (2) Any proxy or information statement; and (3) Any prospectus filed pursuant to Rule 424(b) or (c) under the Securities Act of 1933. The listed documents should be clearly described for identification purposes (e.g., annual report to security holders for fiscal year ended December 24, 1980).



2



PART I


ITEM 1.  BUSINESS.


Business Development


We were formed as a Nevada corporation on February 28, 2007 as Cinjet, Inc.  Originally we provided a wide array of virtual office and outsourcing services, including but is not limited to word processing, typing and transcription, resume writing, presentations, database management, as well as a variety of basic to more complex clerical and administrative functions.  In addition, we provided electronic filing services for clients who need to file registration statements, prospectuses, periodic filings and other documents required by the Securities and Exchange Commission. We have not been successful in our business venture.


The Company has now focused its efforts on seeking a business opportunity.  The Company will attempt to locate and negotiate with a business entity for the merger of that target company into the Company. In certain instances, a target company may wish to become a subsidiary of the Company or may wish to contribute assets to the Company rather than merge. No assurances can be given that the Company will be successful in locating or negotiating with any target company. The Company will provide a method for a foreign or domestic private company to become a reporting (“public”) company whose securities are qualified for trading in the United States secondary market.  We are now considered a “blank check” company.


The Company will attempt to locate and negotiate with a business entity for the merger of that target company into the Company. In certain instances, a target company may wish to become a subsidiary of the Company or may wish to contribute assets to the Company rather than merge. No assurances can be given that the Company will be successful in locating or negotiating with any target company. The Company will provide a method for a foreign or domestic private company to become a reporting (“public”) company whose securities are qualified for trading in the United States secondary market.


The selection of a business opportunity in which to participate is complex and extremely risky and will be made by management in the exercise of its business judgment.  There is no assurance that we will be able to identify and acquire any business opportunity which will ultimately prove to be beneficial to our company and shareholders.


Because we have no specific business plan or expertise, our activities are subject to several significant risks.  In particular, any business acquisition or participation we pursue will likely be based on the decision of management without the consent, vote, or approval of our shareholders.


Sources of Opportunities


We anticipate that business opportunities may arise from various sources, including officers and directors, professional advisers, securities broker-dealers, venture capitalists, members of the financial community, and others who may present unsolicited proposals.


We will seek potential business opportunities from all known sources, but will rely principally on the personal contacts of our officers and directors as well as indirect associations between them and other business and professional people.  Although we do not anticipate engaging professional firms specializing in business acquisitions or reorganizations, we may retain such firms if management deems it in our best interests.  In some instances, we may publish notices or advertisements seeking a potential business opportunity in financial or trade publications.


Criteria


We will not restrict our search to any particular business, industry or geographical location.  We may acquire a business opportunity in any stage of development.  This includes opportunities involving “start up” or new companies.  In seeking a business venture, management will base their decisions on the business objective of seeking long-term capital appreciation in the real value of our company.  We will not be controlled by an attempt to take advantage of an anticipated or perceived appeal of a specific industry, management group, or product.


In analyzing prospective business opportunities, management will consider the following factors:


·

available technical, financial and managerial resources;

·

working capital and other financial requirements;

·

the history of operations, if any;

·

prospects for the future;

·

the nature of present and expected competition;

·

the quality and experience of management services which may be available and the depth of the management;

·

the potential for further research, development or exploration;

·

the potential for growth and expansion;

·

the potential for profit;

·

the perceived public recognition or acceptance of products, services, trade or service marks, name identification; and other relevant factors.



3



Generally, our management will analyze all available factors and make a determination based upon a composite of available facts, without relying on any single factor.


Methods of Participation of Acquisition


Management will review specific business and then select the most suitable opportunities based on legal structure or method of participation.  Such structures and methods may include, but are not limited to, leases, purchase and sale agreements, licenses, joint ventures, other contractual arrangements, and may involve a reorganization, merger or consolidation transactions.  Management may act directly or indirectly through an interest in a partnership, corporation, or other form of organization.


Procedures


As part of the our investigation of business opportunities, officers and directors may meet personally with management and key personnel of the firm sponsoring the business opportunity.  We may visit and inspect material facilities, obtain independent analysis or verification of certain information provided, check references of management and key personnel, and conduct other reasonable measures.


We will generally ask to be provided with written materials regarding the business opportunity.  These materials may include the following:


·

descriptions of product, service and company history; management resumes;

·

financial information;

·

available projections with related assumptions upon which they are based;

·

an explanation of proprietary products and services;

·

evidence of existing patents, trademarks or service marks or rights thereto;

·

present and proposed forms of compensation to management;

·

a description of transactions between the prospective entity and its affiliates;

·

relevant analysis of risks and competitive conditions;

·

a financial plan of operation and estimated capital requirements;

·

and other information deemed relevant.


Competition


We expect to encounter substantial competition in our efforts to acquire a business opportunity.  The primary competition is from other companies organized and funded for similar purposes, small venture capital partnerships and corporations, small business investment companies and wealthy individuals.


Employees


At the present time Diane Button is our only employee as well as our sole officer and director and a major shareholder.  Ms. Button will devote such time as required to actively seek a business opportunity for the Company.


Principal Products or Services and Their Markets


None; not applicable


Competition, Competitive Position in the Industry and Methods of Competition


None; not applicable


Dependence on One or a Few Major Customers


None; not applicable


Patents, Trademarks, Licenses, Franchises, Concessions, Royalty Agreements or Labor Contracts, Including Duration


None; not applicable


Need For Any Government Approval of Principal Products or Services




4



None; not applicable


Effect of Existing or Probable Governmental Regulations on Business


None; not applicable


Time Spent During the Last Two Fiscal Years on Research and Development Activities


None; not applicable


Costs and Effects of Compliance with Environmental Laws (federal, state and local)


None; not applicable


ITEM 1A.  RISK FACTORS.


The Company’s business is subject to numerous risk factors, including the following.


The Company has had very limited operating history and no revenues or earnings from operations. The Company has no significant assets or financial resources. The Company will, in all likelihood, sustain operating expenses without corresponding revenues, at least until the consummation of a business combination. This may result in the Company incurring a net operating loss which will increase continuously until the Company can consummate a business combination with a target company. There is no assurance that the Company can identify such a target company and consummate such a business combination.


Our proposed business plan is speculative in nature.  The success of the Company’s proposed plan of operation will depend to a great extent on the operations, financial condition and management of the identified target company. While management will prefer business combinations with entities having established operating histories, there can be no assurance that the Company will be successful in locating candidates meeting such criteria. In the event the Company completes a business combination, of which there can be no assurance, the success of the Company’s operations will be dependent upon management of the target company and numerous other factors beyond the Company’s control.


The Company is and will continue to be an insignificant participant in the business of seeking mergers with and acquisitions of business entities. A large number of established and well-financed entities, including venture capital firms, are active in mergers and acquisitions of companies which may be merger or acquisition target candidates for the Company. Nearly all such entities have significantly greater financial resources, technical expertise and managerial capabilities than the Company and, consequently, the Company will be at a competitive disadvantage in identifying possible business opportunities and successfully completing a business combination. Moreover, the Company will also compete with numerous other small public companies in seeking merger or acquisition candidates.


The Company has no current arrangement, agreement or understanding with respect to engaging in a merger with or acquisition of a specific business entity. There can be no assurance that the Company will be successful in identifying and evaluating suitable business opportunities or in concluding a business combination. Management has not identified any particular industry or specific business within an industry for evaluation by the Company. There is no assurance that the Company will be able to negotiate a business combination on terms favorable to the Company. The Company has not established a specific length of operating history or a specified level of earnings, assets, net worth or other criteria which it will require a target company to have achieved, or without which the Company would not consider a business combination with such business entity. Accordingly, the Company may enter into a business combination with a business entity having no significant operating history, losses, limited or no potential for immediate earnings, limited assets, negative net worth or other negative characteristics.


Our management has limited time to devote to our business.  While seeking a business combination, management anticipates devoting only a limited amount of time per month to the business of the Company. The Company’s sole officer has not entered into a written employment agreement with the Company and he is not expected to do so in the foreseeable future. The Company has not obtained key man life insurance on its officer and director. Notwithstanding the combined limited experience and time commitment of management, loss of the services of this individual would adversely affect development of the Company’s business and its likelihood of continuing operations.


The Company’s officer and director participates in other business ventures which may compete directly with the Company. Additional conflicts of interest and non-arms length transactions may also arise in the future.  Management has adopted a policy that the Company will not seek a merger with, or acquisition of, any entity in which any member of management serves as an officer, director or partner, or in which they or their family members own or hold any ownership interest.



5



Reporting requirements may delay or preclude an acquisition.  Section 13 of the Securities Exchange Act of 1934 (the “Exchange Act”) requires companies subject thereto to provide certain information about significant acquisitions including certified financial statements for the company acquired covering one or two years, depending on the relative size of the acquisition. The time and additional costs that may be incurred by some target companies to prepare such financial statements may significantly delay or essentially preclude consummation of an otherwise desirable acquisition by the Company. Acquisition prospects that do not have or are unable to obtain the required audited statements may not be appropriate for acquisition so long as the reporting requirements of the Exchange Act are applicable.


The Company has neither conducted, nor have others made available to it, market research indicating that demand exists for the transactions contemplated by the Company. Even in the event demand exists for a merger or acquisition of the type contemplated by the Company, there is no assurance the Company will be successful in completing any such business combination.


The Company’s proposed operations, even if successful, will in all likelihood result in the Company engaging in a business combination with only one business entity. Consequently, the Company’s activities will be limited to those engaged in by the business entity which the Company merges with or acquires. The Company’s inability to diversify its activities into a number of areas may subject the Company to economic fluctuations within a particular business or industry and therefore increase the risks associated with the Company’s operations.


Potential for being classified an Investment Company.  Although the Company will be subject to regulation under the Exchange Act, management believes the Company will not be subject to regulation under the Investment Company Act of 1940, insofar as the Company will not be engaged in the business of investing or trading in securities. In the event the Company engages in business combinations which result in the Company holding passive investment interests in a number of entities, the Company could be subject to regulation under the Investment Company Act of 1940. In such event, the Company would be required to register as an investment company and could be expected to incur significant registration and compliance costs. The Company has obtained no formal determination from the Securities and Exchange Commission as to the status of the Company under the Investment Company Act of 1940 and, consequently, any violation of such Act could subject the Company to material adverse consequences.


A business combination involving the issuance of the Company’s common stock will, in all likelihood, result in shareholders of a target company obtaining a controlling interest in the Company. Any such business combination may require shareholders of the Company to sell or transfer all or a portion of the Company’s common stock held by them. The resulting change in control of the Company will likely result in removal of the present officer and director of the Company and a corresponding reduction in or elimination of his participation in the future affairs of the Company.  Currently, there are no pending acquisitions, business combinations or mergers.


The Company’s primary plan of operation is based upon a business combination with a business entity which, in all likelihood, will result in the Company issuing securities to shareholders of such business entity. The issuance of previously authorized and unissued common stock of the Company would result in reduction in percentage of shares owned by the present shareholders of the Company and would most likely result in a change in control or management of the Company.


Federal and state tax consequences will, in all likelihood, be major considerations in any business combination the Company may undertake. Currently, such transactions may be structured so as to result in tax-free treatment to both companies, pursuant to various federal and state tax provisions. The Company intends to structure any business combination so as to minimize the federal and state tax consequences to both the Company and the target company; however, there can be no assurance that such business combination will meet the statutory requirements of a tax-free reorganization or that the parties will obtain the intended tax-free treatment upon a transfer of stock or assets. A non-qualifying reorganization could result in the imposition of both federal and state taxes which may have an adverse effect on both parties to the transaction.


Management of the Company will request that any potential business opportunity provide audited financial statements. One or more attractive business opportunities may choose to forego the possibility of a business combination with the Company rather than incur the expenses associated with preparing audited financial statements. In such case, the Company may choose to obtain certain assurances as to the target company’s assets, liabilities, revenues and expenses prior to consummating a business combination, with further assurances that audited financial statements would be provided after closing of such a transaction.  Closing documents relative thereto may include representations that the audited financial statements will not materially differ from the representations included in such closing documents.




6



Our stock is subject to the Penny Stock rules, which impose significant restrictions on the Broker-Dealers and may affect the resale of our stock.   Our stock is subject to Penny Stock trading rules, and investors will experience resale restrictions and a lack of liquidity. A penny stock is generally a stock that:


·

is not listed on a national securities exchange or Nasdaq;

·

is listed in “pink sheets” or on the NASD OTC Bulletin Board;

·

has a price per share of less than $5.00; and

·

is issued by a company with net tangible assets less than $5 million.


The penny stock trading rules impose additional duties and responsibilities upon broker-dealers and salespersons effecting purchase and sale transactions in common stock and other equity securities, including:


·

determination of the purchaser’s investment suitability;

·

delivery of certain information and disclosures to the purchaser; and

·

receipt of a specific purchase agreement from the purchaser prior to effecting the purchase transaction.


Due to the Penny Stock rules, many broker-dealers will not effect transactions in penny stocks except on an unsolicited basis.  When our common stock becomes subject to the penny stock trading rules,


·

such rules may materially limit or restrict the ability to resell our common stock, and

·

the liquidity typically associated with other publicly traded equity securities may not exist.


It is possible that a liquid market for our stock will never develop and you will not be able to sell your stock.  There is no assurance a market will be made in our stock.  If no market exists, you will not be able to sell your shares publicly, making your investment of little or no value.


ITEM 1B.  UNRESOLVED STAFF COMMENTS.


None.


ITEM 2.  PROPERTIES.


We do not currently own any property.  We utilize office space in the residence of our President at no cost.  We will not seek independent office space until we pursue a viable business opportunity and recognize income.


ITEM 3.  LEGAL PROCEEDINGS.


The Company is not the subject of any pending legal proceedings; and to the knowledge of management, no proceedings are presently contemplated against the Company by any federal, state or local governmental agency.


Further, to the knowledge of management, no director or executive officer is party to any action in which any has an interest adverse to the Company.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.


None.


PART II


ITEM 5.  MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.


Market Information




7



Our common stock is listed on the Over the Counter Bulletin Board (“OTCBB”), under the symbol “CINJ".  Our stock has traded thinly for the periods represented.  The following sets forth the range of high and low trades for the periods indicated.


2013

 

High

 

Low

 

 

 

 

 

January 2 Thru March 28

 

.01

 

.005

 

 

 

 

 

April 1 Thru June 28

 

2.50

 

0.17

 

 

 

 

 

July 1 Thru September 30

 

2.00

 

2.00

 

 

 

 

 

October 1 Thru December 31

 

2.00

 

2.00

 

 

 

 

 

2012

 

High

 

Low

 

 

 

 

 

January 3 Thru March 30

 

-

 

-

 

 

 

 

 

April 2 Thu June 29

 

.01

 

.01

 

 

 

 

 

July 2 Thru September 28

 

.01

 

.01

 

 

 

 

 

October 1 Thru December 31

 

.01

 

.005


The above quotations represent prices between dealers and do not include retail markup, markdown or commission.  In addition, these quotations do not represent actual transactions.


Holders


As of February 3, 2014, there were approximately 42 shareholders of record holding 10,777,000 shares of common stock. The holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Holders of the common stock have no preemptive rights and no right to convert their common stock into any other securities. There are no redemption or sinking fund provisions applicable to the common stock.


Dividends


We have not paid, nor declared, any cash dividends since our inception and do not intend to declare any such dividends in the foreseeable future. Our ability to pay cash dividends is subject to limitations imposed by Nevada law. Under Nevada law, cash dividends may be paid to the extent that a corporation’s assets exceed its liabilities and it is able to pay its debts as they become due in the usual course of business.


Securities Authorized for Issuance Under Equity Compensation Plans


None.


Recent Sales or Purchases of Unregistered Securities


None.


ITEM 6.  SELECTED FINANCIAL DATA.


Since we are a “smaller reporting company,” as defined by SEC regulation, we are not required to provide the information required by this Item.


ITEM 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.


FORWARD-LOOKING STATEMENTS


The statements made below with respect to our outlook for fiscal 2011 and beyond represent “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934 and are subject to a number of risks and uncertainties. These include, among other risks and uncertainties, whether we will be able to generate sufficient cash flow from our operations or other sources to fund our working capital needs, maintain existing relationships with our lender, successfully introduce and attain market acceptance of any new products, attract and retain qualified personnel both in our existing markets and in new territories in an extremely competitive environment, and potential obsolescence of our technologies.



8



In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” “potential” and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, these forward-looking statements represent our estimates and assumptions only as of the date of this report. Except as otherwise required by law, we expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained in this report to reflect any change in our expectations or any change in events, conditions or circumstances on which any of our forward-looking statements are based.  We qualify all of our forward-looking statements by these cautionary statements.


Results of Operations


Years Ended December 31, 2013 and December 31, 2012


We have experienced losses since inception.  We did not generate any revenue for the year ended December 31, 2013 or 2012.  Expenses during the year ended December 31, 2013 were $23,094 consisting entirely of professional fees compared to expenses of $18,730 and bank charges of $100 for the year ended 2012.  At year end December 31, 2013 we had $$23,728 in interest expenses for a net loss of $46,822 compared to a net loss of $41,330 in 2012.


Years Ended December 31, 2012 and December 31, 2011


We have experienced losses since inception.  We did not generate any revenue for the year ended December 31, 2012 or December 31, 2011.  Expenses during the year ended December 31, 2012 were $18,830 with bank charges of $100 and professional fees of $18,730 compared to expenses of $13,774 for the year ended 2011.  At year end December 31, 2012 we had $22,500 in interest expense for a net loss of $41,330 compared to a net loss of $146,571 in 2011.  In 2011 we had a significant loss on valuation of assets in the amount of $110,297 and no such loss in 2012.


Liquidity and Capital Resources


At December 31, 2013, we had $322 in available cash on hand for total assets of $322.  We anticipate our expenses for the next twelve months will be approximately $20,000.


Our liabilities are $3,450 in accounts payable, $94,277 in accrued interest, $2,400 in state corporate tax payable and $225,000 in convertible debentures and $23,273 in notes payable to related parties for total liabilities of $348,400.


During the year the Company borrowed monies from the major shareholder and other related parties for working capital purposes.  As of December 31, 2013 and 2012, the Company owed $23,273 and $2,954 respectively to a major shareholder.  During 2012 and 2011, the Company repaid $0 and $1,648 to a major shareholder.


As of December 31, 2013 and 2012, the Company had accrued interest payable to a major stockholder of $1,228 and $-0- respectively.


The company accrued no management fees during 2013 or 2012.


During 2009 the Company issued convertible debentures totaling $310,000, bearing 10% interest accrued annually, convertible at the discretion of the note holder at $.25/share.


As of December 31, 2010, the company assigned $85,000 in expired convertible debentures plus $5,297 in related interest to an unrelated party to directly reduce debt. As of December 31, 2013 and 2012, the Company had outstanding $225,000 and $225,000 in convertible debentures respectively. Because the Company has no source of revenue, it is unlikely that there will be payments made towards these debentures in the near future.  There have been no requests for conversion as of December 31, 2013.  


As of December 31, 2013 and 2012, the Company accrued interest on the convertible debentures of $22,500 and $22,500 respectively.


During the year ending December 31, 2009, the Company loaned monies to an unrelated party for legal and accounting fees and filing fees related to the creation of an independent entity and working capital for the startup company for a potential merger. During the year ending December 31, 2010, the company assigned certain payables to the unrelated party and the unrelated party accepted the assignation of those payables.  The loan carries an interest rate of 10%; there is no due date on the loan.



9



During the year ending December 31, 2010, the merger fell through, and the Company assigned $85,000 to the unrelated party, and they assumed the payment obligation.  Consequently the Company reduced the outstanding receivable to the unrelated party by $85,000.


The Company has made several attempts to collect this debt but has been unsuccessful in communicating with the debtor. As of December 31, 2011, the Company deemed these Notes receivables uncollectible and has revalued them to $0.  The Company has incurred a loss on revaluation of $110,297 and $0 for the years ended December 31, 2011 and 2010 respectively.


Financial Interpretation No. 48, “Accounting for Uncertainty in Income Taxes – An Interpretation of FASB Statement No. 109”, Statement of Financial Accounting Standards (“SFAS”) No. 141 (revised 2007), “Business Combinations”, SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51”, SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities – Including an Amendment of FASB Statement No. 115”, SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans”, SFAS No. 157, “Fair Value Measurements”, SFAS No. 156, “Accounting for Servicing of Financial Assets”, SFAS No. 155, “Accounting for Certain Hybrid Instruments”, and SFAS No. 154, “Accounting Changes and Error Corrections – a replacement of APB Opinion No. 20 and FASB Statement No. 3”, were recently issued. These recently-enacted accounting standards have no current applicability to the Company or their effect on the financial statements would not have been significant.


Off-Balance Sheet Arrangements


We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our consolidated financial condition, results of operations or liquidity.


Need For Additional Financing


In the past we have relied on advances from our president to cover our operating costs.   Management anticipates that it will have sufficient capital to meet our needs through the next 12 months.  However, there can be no assurances to that effect.  


ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.


Since we have no assets and do not have any investments in eligible portfolio companies there is no quantitative information, as of the end of December 31, 2013, about market risk that has any impact on our present business. Once we begin making investments in eligible portfolio companies there will be market risk sensitive instruments and we will disclose the applicable market risk information at that time           


ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.


The required financial statements are included following the signature page of this Form 10-K.


ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.


The Company has had no disagreements with its certified public accountants with respect to accounting practices or procedures or financial disclosure.


ITEM 9A(T). CONTROLS AND PROCEDURES.  


(a) Evaluation of Disclosure Controls and Procedures.  Our management, with the participation of our President, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, our President concluded that our disclosure controls and procedures as of the end of the period covered by this report were effective such that the information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our President, as appropriate to allow timely decisions regarding disclosure. A controls system cannot provide absolute assurance, however, that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.  We believe our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives and our principal executive officer and principal financial officer concluded that our disclosure controls and procedures are effective.


Management’s Annual Report on Internal Control over Financial Reporting.  Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes of accounting principles generally accepted in the United States.


Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.




10



Our management, with the participation of the President, evaluated the effectiveness of the Company’s internal control over financial reporting as of December 31, 2013.  In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control — Integrated Framework.  Based on this evaluation, our management, with the participation of the President, concluded that, as of December 31, 2013, our internal control over financial reporting was effective.


This annual report does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report.


(b)  Changes in Internal Control over Financial Reporting.  There were no changes in the Company's internal controls over financial reporting, known to the chief executive officer or the chief financial officer, that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.


ITEM 9B. OTHER INFORMATION


There are no further disclosures. All information that was required to be disclosed in a Form 8-K during the fourth quarter 2013 has been disclosed.


PART III


ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.


Identification of Directors and Executive Officers


The following table sets forth the name, age, position and office term of each executive officer and director of the Company.


Name

 

Age

 

Position

 

Director or Officer Since

 

 

 

 

 

 

 

Diane Button

 

63

 

President, Secretary, Treasurer

and Director

 

December 1, 2010


All officers hold their positions at the will of the Board of Directors.  All directors hold their positions for one year or until their successors are elected and qualified.


Set forth below is certain biographical information regarding the Company’s executive officer and director:


On December 1, 2010, Ms. Diane Button was appointed President, Secretary, Treasurer and Director of the Company to fill the vacancy created by Mr. Russell Schechter’s resignation as an officer and director of the Company on the same date.  Mr. Schechter cited other commitments prevented him from serving as an officer and director of the Company and stated he had no disagreements with the Company.


Diane S. Button. For the past five years, Ms. Button has been an Independent Agent under contract with AFLAC, (American Family Life Assurance of Columbus).  Currently, as an independent contractor, Ms. Button is a customer service specialist for major businesses and also a sales representative for AFLAC with a product line of supplemental insurance products.  Ms. Button is also the sole director and officer of Cactus Ventures, Inc., a shell company listed on the OTCBB under the symbol “CTVN.”


The Company has no audit committee financial expert, as defined under Section 228.401, serving on its audit committee because it has no audit committee and is not required to have an audit committee because it is not a listed security as defined in Section 240.10A-3.


Term of Office


The term of office of the current directors shall continue until new directors are elected or appointed.


Involvement in Certain Legal Proceedings


During the past five years, no present or former director, person nominated to become a director, executive officer, promoter or control person of the Company:



11



(1) Was a general partner or executive officer of any business by or against which any bankruptcy  petition was filed, whether at the time of such filing or two years prior thereto;


(2) Was convicted in a criminal proceeding or named the subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);


(3) Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated,  of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; and


(4) Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated,  of any federal or state authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described above under this Item, or to be associated with persons engaged in any such activity;


(5) Was found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.


Financial Expert


The Company has no audit committee financial expert, as defined under Section 228.401, serving on its audit committee because it has no audit committee and is not required to have an audit committee because it is not a listed security as defined in Section 240.10A-3.


Code of Ethics


The Company has adopted a code of ethics that applies to the Company’s principal executive officer, principal financial officer, principal accounting officer or controller.  The Company will provide, at no cost, a copy of the Code of Ethics to any shareholder of the Company upon receiving a written request sent to the Company’s address shown on Page 1 of this report.


ITEM 11.  EXECUTIVE COMPENSATION


No current or prior officer or director has received any remuneration or compensation from the Company in the past three years, nor has any member of the Company’s management been granted any option or stock appreciation right. Accordingly, no tables relating to such items have been included within this Item. None of our employees are subject to a written employment agreement nor has any officer received a cash salary since our founding.


The Summary Compensation Table shows certain compensation information for services rendered in all capacities for the fiscal periods ended December 31, 2013, 2012 and 2011. Other than as set forth herein, no executive officer's salary and bonus exceeded $100,000 in any of the applicable years. The following information includes the dollar value of base salaries, bonus awards, the number of stock options granted and certain other compensation, if any, whether paid or deferred.


SUMMARY COMPENSATION TABLE

 

 

 

 

 

 

 

 

 

 

Name and

principal position

Year

Salary

($)

Bonus

($)

Stock

Awards

($) (4)

Option

Awards

($) (4)

Non-Equity

Incentive

Plan

Compensation

($)

Nonqualified

Deferred

Compensation

Earnings

($)

All Other

Compensation ($)

Total

($)

 

 

 

 

 

 

 

 

 

 

Diane Button

2013

-

-

-

-

-

-

-

-

Sole Officer

2012

-

-

-

-

-

-

-

-

 

2011

-

-

-

-

-

-

-

-


Compensation of Directors


There are no agreements to compensate any of the directors for their services.


Our officers and directors are reimbursed for expenses incurred on our behalf.  Our officers and directors will not receive any finder’s fee as a result of their efforts to implement the business plan outlined herein.  However, our officers and directors anticipate receiving benefits as beneficial shareholders of our common stock.




12



We have not adopted any retirement, pension, profit sharing, stock option or insurance programs or other similar programs for the benefit of our employees.


Termination of Employment and Change of Control Arrangement


There are no compensatory plans or arrangements, including payments to be received from the Company, with respect to any former employees, officers or directors which would in any way result in payments to any such person because of his or her resignation, retirement or other termination of such person’s employment with the Company or its subsidiaries, or any change in control of the Company, or a change in the person’s responsibilities following a change in control of the Company.


ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.


The following table sets forth as of February 3, 2014, the number and percentage of the 10,777,000 shares of outstanding common stock which, according to the information supplied to the Company, were beneficially owned by (i) each person who is currently a director of the Company, (ii) each executive officer, (iii) all current directors and executive officers of the Company as a group and (iv) each person who, to the knowledge of the Company, is the beneficial owner of more than 5% of the outstanding common stock.  Except as otherwise indicated, the persons named in the table have sole voting and dispositive power with respect to all shares beneficially owned, subject to community property laws where applicable.


Title ofClass

 

Name and Address of

Beneficial Owner

 

Amount and Nature of

Beneficial Ownership

 

Percentage of Class

 

 

 

 

 

 

 

Common

 

Diane Button (1)

123 West Nye Lane, #129

Carson City, NV 89706

 

7,500,000

 

69.59%

 

 

 

 

 

 

 

Common

 

Olga Kravchenko

1359 Ahlrich Ave.

Encinitas, CA  92024

 

950,000

 

8.81%

 

 

 

 

 

 

 

Common

 

Katrina A. Starling

P.O. Box 7565

Spreckels, CA  93962

 

1,000,000

 

9.27%

 

 

 

 

 

 

 

Common

 

Jill Strahl

814 Bel Air Way

Salinas, CA 93901

 

1,000,000

 

9.27%

 

 

 

 

 

 

 

Total Officers and DirectorsAs a Group (1 Person)

 

 

 

7,500,000

 

69.69%


(1)

Officer and director


There are no contracts or other arrangements that could result in a change of control of the Company.


ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, DIRECTOR INDEPENDENCE.


Transactions with Management and Others


We utilize office space at the residence of Diane Button to conduct our activities at no charge.  


Certain Business Relationships


None.




13



Indebtedness of Management


None; not applicable.


Conflicts of Interest


None of our key personnel is required to commit full time to our affairs and, accordingly, these individuals may have conflicts of interest in allocating management time among their various business activities.  In the course of their other business activities, certain key personnel may become aware of investment and business opportunities which may be appropriate for presentation to us, as well as the other entities with which they are affiliated.  As such, they may have conflicts of interest in determining to which entity a particular business opportunity should be presented.  


Each officer and director is, so long as he is an officer or director, subject to the restriction that all opportunities contemplated by our plan of operation that come to his attention, either in the performance of his duties or in any other manner, will be considered opportunities of, and be made available to us and the companies that he is affiliated with on an equal basis.  A breach of this requirement will be a breach of the fiduciary duties of the officer or director.  If we or the companies to which the officer or director is affiliated each desire to take advantage of an opportunity, then the applicable officer or director would abstain from negotiating and voting upon the opportunity.  However, the officer or director may still take advantage of opportunities if we should decline to do so.  Except as set forth above, we have not adopted any other conflict of interest policy in connection with these types of transactions


ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.


Audit Fee


The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of Cinjet, Inc. annual financial statement and review of financial statements included in Cinjet’s 10-Q reports and services normally provided by the accountant in connection with statutory and regulatory filings or engagements were $12,000 for fiscal year ended 2013 and $12,500 for fiscal year ended 2012.


Audit-Related Fees


The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit or review of Cinjet’s financial statements that are not reported above were $0 for fiscal year ended 2013 and $0 for fiscal year ended 2012.


Tax Fees


The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were $0 for fiscal year ended 2013 and $575 for fiscal year ended 2012.


All Other Fees


The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported above were $0 for fiscal year ended 2013 and $0 for fiscal year ended 2012.


We do not have an audit committee currently serving and as a result our board of directors performs the duties of an audit committee.  Our board of directors will evaluate and approve in advance, the scope and cost of the engagement of an auditor before the auditor renders audit and non-audit services.  We do not rely on pre-approval policies and procedures.




14



PART IV


ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.


(a)  Exhibits


The Company has adopted a code of ethics that applies to the Company’s principal executive officer, principal financial officer, principal accounting officer or controller.  The Company will provide, at no cost, a copy of the Code of Ethics to any shareholder of the Company upon receiving a written request sent to the Company’s address shown on Page 1 of this report.


Exhibit #

 

Description

 

Location

 

 

 

 

 

Exhibit 3(i)

 

Articles of Incorporation

 

*

 

 

 

 

 

Exhibit 3(ii)

 

Bylaws

 

*

 

 

 

 

 

Exhibit 31

 

Certification of the Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

Attached

 

 

 

 

 

Exhibit 32

 

Certification of the Principal Executive Officer and Principal Financial Officer pursuant to U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

 

Attached

 

 

 

 

 

101.INS

 

XBRL Instance Document

 

Attached

 

 

 

 

 

101.SCH

 

XBRL Taxonomy Extension Schema Document

 

Attached

 

 

 

 

 

101.CAL

 

XBRL Taxonomy Calculation Linkbase Document

 

Attached

 

 

 

 

 

101.DEF

 

XBRL Taxonomy Extension Definition Linkbase Document

 

Attached

 

 

 

 

 

101.LAB

 

XBRL Taxonomy Label Linkbase Document

 

Attached

 

 

 

 

 

101.PRE

 

XBRL Taxonomy Presentation Linkbase Document

 

Attached


*  Incorporated by reference. Filed as exhibit to SB-2 on June 28, 2007.


**  The Exhibit attached to this Form 10-KSB shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to liability under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.


(b)  Reports on Form 8-K


None.


(c)  Financial Statement Schedules


None.




15



SIGNATURES


In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this amended report to be signed on its behalf by the undersigned, thereunto duly authorized.


 

CINJET, INC.


Date: February 13, 2014

/s/ Diane Button

 

Diane Button

 

Chief Executive Officer and

 

Chief Financial Officer


In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


Date: February 13, 2014

/s/ Diane Button

 

Diane Button

 

Director




16



Cinjet, Inc.

Balance Sheet

For the years ended December 31, 2013 and 2012


ASSETS

 

 

 

 

December 31,

2013

 

December 31,

2012

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

322

 

$

322

 

Prepaid expenses

 

 

 

 

-

 

 

-

 

Notes receivable - other

 

 

 

-

 

 

-

 

 

 

Total current assets

 

 

 

322

 

 

322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

$

322

 

$

322

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

3,450

 

$

675

 

Accrued interest

 

 

 

 

94,277

 

 

70,549

 

State corporate tax payable

 

 

 

2,400

 

 

2,400

 

 

 

Total current liabilities

 

 

 

100,127

 

 

73,624

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible Debentures

 

 

 

225,000

 

 

225,000

 

Notes payable related parties

 

 

 

23,273

 

 

2,954

 

 

 

Total liabilities

 

 

 

348,400

 

 

301,578

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' deficit

 

 

 

 

 

 

 

 

 

Preferred stock, 5,000,000 shares

 

 

 

 

 

 

 

 

 

authorized, 0 shares outstanding

 

 

-

 

 

-

 

Common stock, 100,000,000 shares

 

 

 

 

 

 

 

 

authorized, 10,777,000 outstanding

 

 

1,078

 

 

1,078

 

Paid in capital

 

 

 

87,322

 

 

87,322

 

Deficit accumulated during development stage

 

 

(436,478)

 

 

(389,656)

 

 

 

Total shareholders' deficit

 

 

 

(348,078)

 

 

(301,256)

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

 

$

322

 

$

322


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



F-1



Cinjet, Inc.

Statement of Operations

For the years ended December 31, 2013 and 2012


 

 

 

 

 

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

$

-

 

$

-

 

 

 

 

 

 

 

 

 

 

 

Cost of Goods Sold

 

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Advertising

 

 

 

-

 

 

-

 

Bank charges

 

 

 

-

 

 

100

 

Depreciation

 

 

 

-

 

 

-

 

Licenses and permits

 

 

-

 

 

-

 

Income Taxes

 

 

 

-

 

 

-

 

Office expense

 

 

 

-

 

 

-

 

Postage and delivery

 

 

-

 

 

-

 

Telephone

 

 

 

-

 

 

-

 

Professional fees

 

 

 

23,094

 

 

18,730

 

Travel expenses

 

 

 

-

 

 

-

 

 

 

Total expenses

 

 

23,094

 

 

18,830

 

 

Net (loss) from operations

 

 

(23,094)

 

 

(18,830)

 

 

 

 

 

 

 

 

 

 

 

Other income/(loss)

 

 

 

 

 

 

 

 

Interest income

 

 

 

-

 

 

-

 

Loss on abandonment of assets

 

 

-

 

 

-

 

Loss on valuation of assets

 

 

-

 

 

-

 

Interest (Expense)

 

 

(23,728)

 

 

(22,500)

 

 

 

 

 

 

 

(23,728)

 

 

(22,500)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(46,822)

 

$

(41,330)

 

 

 

 

 

 

 

 

 

 

 

Loss per common share

 

$

(0.01)

 

$

(0.01)

Weighted average of

 

 

 

 

 

 

 

 

shares outstanding

 

 

10,777,000

 

 

10,777,000


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



F-2



Cinjet, Inc.

Statement of Shareholders’ Equity

For the years ended December 31, 2013 and 2012


 

 

Common stock

 

Paid In

Capital

 

Stockholders'

Deficit

 

Total

 

 

Shares

 

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

February 28, 2007

 

10,450,000

 

$

1,045

 

$

5,605

 

$

-

 

$

6,650

Net loss for the period

 

-

 

 

-

 

 

-

 

 

(33,394)

 

 

(33,394)

December 31, 2007

 

10,450,000

 

$

1,045

 

$

5,605

 

$

(33,394)

 

$

(26,744)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2008

 

10,450,000

 

$

1,045

 

$

5,605

 

$

(33,394)

 

$

(26,744)

Stock for cash

 

327,000

 

 

33

 

 

81,717

 

 

 

 

 

81,750

Net loss for the period

 

-

 

 

-

 

 

-

 

 

(58,164)

 

 

(58,164)

December 31, 2008

 

10,777,000

 

$

1,078

 

$

87,322

 

$

(91,558)

 

$

(3,158)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2009

 

10,777,000

 

$

1,078

 

$

87,322

 

$

(91,558)

 

$

(3,158)

Net loss for the period

 

-

 

 

-

 

 

-

 

 

(63,752)

 

 

(63,752)

December 31, 2009

 

10,777,000

 

$

1,078

 

$

87,322

 

$

(155,310)

 

$

(66,910)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2010

 

10,777,000

 

$

1,078

 

$

87,322

 

$

(155,310)

 

$

(66,910)

Net loss for the period

 

-

 

 

-

 

 

-

 

 

(46,445)

 

 

(46,445)

December 31, 2010

 

10,777,000

 

$

1,078

 

$

87,322

 

$

(201,755)

 

$

(113,355)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2011

 

10,777,000

 

$

1,078

 

$

87,322

 

$

(201,755)

 

$

(113,355)

Net loss for the period

 

-

 

 

-

 

 

-

 

 

(146,571)

 

 

(146,571)

December 31, 2011

 

10,777,000

 

$

1,078

 

$

87,322

 

$

(348,326)

 

$

(259,926)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2012

 

10,777,000

 

$

1,078

 

$

87,322

 

$

(348,326)

 

$

(259,926)

Net  loss for the period

 

-

 

 

-

 

 

-

 

 

(41,330)

 

 

(41,330)

December 31, 2012

 

10,777,000

 

$

1,078

 

$

87,322

 

$

(389,656)

 

$

(301,256)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2013

 

10,777,000

 

$

1,078

 

$

87,322

 

$

(389,656)

 

$

(301,256)

Net  loss for the period

 

-

 

 

-

 

 

-

 

 

(46,822)

 

 

(43,817)

December 31, 2013

 

10,777,000

 

$

1,078

 

$

87,322

 

$

(436,478)

 

$

(348,078)


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



F-3



Cinjet, Inc.

Statement of Cash Flows

For the years ended December 31, 2013 and 2012


 

 

 

 

 

 

 

2013

 

2012

CASH FLOWS FROM

 

 

 

 

 

 

 

 

OPERATING ACTIVITIES

 

 

 

 

 

 

Net income (loss)

 

 

 

$

(46,822)

 

$

(41,330)

Adjustment to reconcile net to net cash provided by operating activities

 

 

 

 

 

 

 

 

Increase in accrued interest

 

 

23,728

 

 

22,500

 

 

(Increase) in prepaid expenses

 

 

-

 

 

2,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in Payables

 

 

 

2,775

 

 

(212)

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

(20,319)

 

 

(17,042)

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Purchase of Fixed assets

 

 

 

-

 

 

-

NET CASH USED IN INVESTING ACTIVITIES

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

Convertible debentures

 

 

 

-

 

 

-

 

 

Related party notes

 

 

 

20,319

 

 

1,931

NET CASH REALIZED FROM FINANCING ACTIVITIES

 

 

20,319

 

 

1,931

 

 

 

 

 

 

 

 

INCREASE IN CASH AND CASH EQUIVALENTS

 

 

-

 

 

(15,111)

 

 

 

 

 

 

 

 

Cash and cash equivalents at the beginning of the period

 

 

322

 

 

15,433

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT YEAR END

 

$

322

 

$

322

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

-

 

 

-


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



F-4



Cinjet, Inc.

Footnotes to Financial Statements

December 31, 2013 and 2012


NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Nature of the business – The Company was incorporated under the laws of the State of Nevada on March 2, 2007.  The Company commenced primary business activities which were the edgarizing of files for SEC filings, during the last three months of its fiscal year. Prior to that time, management’s main focus was on organizational matters and the sale of stock.  As of December 7, 2009, the company has ceased operations and is looking for opportunities to acquire operating companies or merge with other operational entities.


Pervasiveness of estimates – The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, 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 these estimates.


Cash and cash equivalents – For financial statement presentation purposes, the Company considers all short term investments with a maturity date of three months or less to be cash equivalents.


Trade Accounts Receivable  Trade accounts receivable are carried at their estimated collectible amounts.  Trade credit is generally extended on a short-term basis; thus, trade accounts receivable do not bear interest.  Trade accounts receivable are periodically evaluated for collectability based on past credit history with customers and their current financial condition.  Balances that remain outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade accounts receivable.


Property and equipment – Property and equipment are stated at cost less accumulated depreciation. Cost includes the price paid to acquire the assets, including interest capitalized during the period and any expenditure that substantially add to the value of or substantially extend the useful life of an existing asset.  Maintenance and repairs are charged to operations as incurred.


The Company computes depreciation expense using the straight-line method over the estimated useful lives of the assets, as presented in the table below. The estimated lives of the assets range from three to seven years.


Income Tax The Company accounts for income taxes under ASC 740 "Income Taxes" which codified SFAS 109, "Accounting for Income Taxes." under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.


Basic and Diluted Net Income (Loss) Per Share The Company computes net income (loss) per share in accordance with ASC 260 "Earnings Per Share" which codified SFAS No. 128. "Earnings per Share." ASC 260 requires presentation of both basic and diluted earnings per Share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive.


Fair Value of Financial Instruments Accounting Standard Codification ASC 825 "Financial Instruments" codified Statement of financial accounting standard No. 107, Disclosures about fair value of financial instruments, requires that the Company disclose estimated fair values of financial instruments. Unless otherwise indicated, the fair values of all reported assets and liabilities, which represent financial instruments, none of which are held for trading purposes, approximate are carrying values of such amounts.


Stock-based compensation ASC 718 "Compensation - Stock Compensation" codified SFAS No. 123 prescribes accounting and reporting standards for all stock-based compensation plans payments award to employees, including employee stock options, restricted stock, employee stock purchase plans and stock appreciation rights, may be classified as either equity or liabilities. The Company should determine if a present obligation to settle the share-based payment transaction in cash or other assets exists. A present obligation to settle in cash or other assets exists if: (a) the option to settle by issuing equity instruments lacks commercial substance or (b) the present obligation is implied because of an entity's past practices or stated policies. If a present obligation exists, the transaction should be recognized as a liability; otherwise, the transaction should be recognized as equity.



F-5



Cinjet, Inc.

Footnotes to Financial Statements

December 31, 2013 and 2012


The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50 "Equity - Based Payments to Non-Employees" which codified SFAS 123 and the Emerging Issues Task Force consensus in Issue No. 96-18 ("EITF 96-18"), "Accounting for Equity Instruments that are Issued to Other Than Employees for Acquiring or in Conjunction with Selling, Goods or Services". Measurement of share-based payment transactions with non-employees shall be based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction should be determined at the earlier of performance commitment date or performance completion date.


Issuance of shares for service The Company accounts for the issuance of equity instruments to acquire goods and services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more reliably measurable.


Recognition of Revenues The Company recognizes revenue in accordance with Staff Accounting Bulletin No. 104, “Revenue Recognition in Financial Statements”.  This statement established that revenue can be recognized when persuasive evidence of an arrangement exists, the services have been delivered, all significant contractual obligations have been satisfied, the fee is fixed or determinable and collection is reasonably assured.  


Recent Pronouncements In May 2011, the Financial Accounting Standards Board ("FASB") issued a new accounting standard on fair value measurements that clarifies the application of existing guidance and disclosure requirements, changes certain fair value measurement principles and requires additional disclosures about fair value measurements. The standard is effective for interim and annual periods beginning after December 15, 2011. Early adoption is not permitted. The Company does not expect the adoption of this accounting guidance to have a material impact on its consolidated financial statements and related disclosures.


NOTE 2

UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN


The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.  As reflected in the accompanying financial statements, the company has no revenues, net accumulated losses since inception, and a shareholders’ deficit of $348.078. These factors raise substantial doubt about its ability to continue as a going concern.  The ability of the Company to continue as a going concern is dependent on management funding operating costs, prior to the location of a buyer. The financial statements do not include any adjustments that might be necessary if the company is unable to continue as a going concern.


NOTE 3

INCOME TAXES


Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the net deferred taxes, as of December 31, 2013, are as follows:


Deferred tax assets:

 

2013

 

2012

  Net operating loss carryforward

 

$

174,591

 

$

155,862

  Less valuation allowance

 

 

(174,591)

 

 

(155,862)

Total net deferred tax assets

 

$

-

 

$

-


The federal statutory tax rate reconciled to the effective tax rate during fiscal 2009 and 2008, respectively, is as follows:


 

 

2013

 

2012

Tax at U.S. Statutory Rate


35.0%

 

35.0%

State tax rate, net of federal benefits


5.0%

 

5.0%

Change in valuation allowance


(40.0)

 

(40.0)

 


-%

 

-%


NOTE 4

NOTES PAYABLE AND RELATED PARTIES


During the year the Company borrowed monies from the major shareholder and other related parties for working capital purposes. As of December 31, 2013 and 2012, the Company owed $23,273 and $2,954 respectively to a major shareholder.  During 2013 and 2012, the company repaid $0 and $1,648 to a major shareholder.



F-6



Cinjet, Inc.

Footnotes to Financial Statements

December 31, 2013 and 2012


As of December 31, 2013 and 2012, the Company had accrued interest payable to a major stockholder of $1,228 and $0.


The company accrued no management fees in either 2013 or 2012.


NOTE 5

CONVERTIBLE DEBENTURES


During 2009 the Company issued convertible debentures totaling $310,000, bearing 10% interest accrued annually, convertible at the discretion of the note holder at $.25/share.


As of December 31, 2010, the company assigned $85,000 in expired convertible debentures plus $5,297 in related interest to an unrelated party to directly reduce debt. As of December 31, 2013 and 2012, the Company had outstanding $225,000 and $225,000 in convertible debentures respectively. Because the Company has no source of revenue, it is unlikely that there will be payments made towards these debentures in the near future. There have been no requests for conversion as of December 31, 2013.  


As of December 31, 2013 and 2012, the Company accrued interest on the convertible debentures of $22,500 and $22,500 respectively.


NOTE 6

COMMON STOCK


In prior years, the Company raised $81,750 from sale of 327,000 shares of stock to unrelated individuals. There were no stock issuances for the years ending December 31, 2013 and 2012.


NOTE 7

NOTES RECEIVABLE – OTHER


During the year ending December 31, 2009, the Company loaned monies to an unrelated party for legal and accounting fees and filing fees related to the creation of an independent entity and working capital for the startup company for a potential merger.  The loan carries an interest rate of 10%; there is no due date on the loan.


During the year ending December 31, 2010, the merger fell through, and the Company assigned $85,000 to the unrelated party, and they assumed the payment obligation.  Consequently the Company reduced the outstanding receivable to the unrelated party by $85,000 (see note 5).


The Company has made several attempts to collect this debt but has been unsuccessful in communicating with the debtor. As of December 31, 2011, the Company deemed these Notes receivables uncollectible and has revalued them to $0.  The Company has incurred a loss on revaluation of $110,297 and $0 for the years ended December 31, 2011 and 2010 respectively.


Accounting Standards (“SFAS”) No. 114 (“SFAS No. 114”) “Accounting by Creditors for Impairment of a Loan,” as amended. Pursuant to SFAS No. 114, a loan is impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. When evaluating a note for impairment, the factors considered include: (a) indications that the borrower is experiencing business problems such as operating losses, marginal working capital, inadequate cash flow or business interruptions, (b) loans secured by collateral that is not readily marketable, or (c) loans that are susceptible to deterioration in realizable value. When determining impairment, management’s assessment includes its intention to extend certain leases beyond the minimum lease term and the debtor’s ability to meet its obligation over that extended term. In certain cases where Cinjet has determined that a loan has been impaired, it generally does not expect to extend or renew the underlying leases. Based on the Company’s analysis, it has determined that there are notes that have incurred such an impairment. Following are summaries of impaired notes receivable and the allowance for impaired as of December 31,


Notes receivable


2011

 

2010

 

2009

Total recorded investment in impaired notes


$

$110,297

 

$

110,297

 

$

 $170,000

Allowance for impaired notes receivable


 

(110,297)

 


-

 


-

Recorded value of impaired notes



-

 


110,297

 


170,000

Impaired notes written off



110,297

 


 -

 


-

Allowance for impaired notes receivable at 12/31/11



(110,297)

 


-

 


 -


As of December 31, 2013 and 2012, the company accrued interest income of $0 and $0 respectively.  


NOTE 8

SUBSEQUENT EVENTS


Management has determined that there are not further events subsequent to the balance sheet date that should be disclosed in these financial statements.




F-7