Your Event, Inc. - FORM 10-Q

Attached files

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EX-31.1 - SECTION 302 CERTIFICATION - Your Event, Inc.	ex311sec302.htm
EX-32.1 - SECTION 906 CERTIFICATION - Your Event, Inc.	ex321sec906.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark one)

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

For the Quarterly Period Ended May 31, 2014

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

For the transition period from _________________to

Commission File Number: 000-53164

Your Event, Inc.

(Exact name of registrant as specified in its charter)

Nevada		26-1375322
(State or Other Jurisdiction		(I.R.S. Employer
of Incorporation or Organization)		Identification No.)

1601 Pacific Coast Highway Suite 250, Hermosa Beach, CA		90254
(Address of principal executive offices)		(Zip Code)

Telephone: 310-698-0728

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

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

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

Large accelerated filer o

Accelerated filer o

Non-accelerated filer o

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 o No [X]

APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section S 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 o No [X]

APPLICABLE ONLY TO CORPORATE ISSUERS

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

As of July 11, 2014, the registrant’s outstanding common stock consisted of 25,593,835 shares, $0.001 par value. Authorized – 70,000,000 common shares.

Table of Contents

Your Event, Inc.

Index to Form 10-Q

For the Quarterly Period Ended May 31, 2014

PART I	Financial Information	3

ITEM 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets	3
	Unaudited Condensed Consolidated Statements of Operations	4
	Unaudited Condensed Consolidated Statements of Cash Flows	5
	Notes to the Unaudited Condensed Financial Statements	6

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	10

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	17

ITEM 4T.	Controls and Procedures	18

PART II	Other Information	21

ITEM 1.	Legal Proceedings	21

ITEM 1A.	Risk Factors	21

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21

ITEM 3	Defaults Upon Senior Securities	21

ITEM 4	Submission of Matters to a Vote of Security Holders	22

ITEM 5	Other Information	22

ITEM 6	Exhibits	23

	SIGNATURES	24

Part I. Financial Information

Item 1. Financial Statements

Your Event, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

			May 31, 2014	August 31, 2013
		ASSETS
Current assets:
	Cash		$ 111,772	$ 101,484
	Prepaid expense		9,306	6,764
	Accounts receivable		481,326	138,563
	Inventory		1,679,614	86,494
	Advance payment		547	-
	Deposits		3,792	4,322
		Total current assets	2,286,357	337,627

Fixed assets:
	Intangible asset, net accumulated depreciation
		of $3,313	6,114	3,571
	Furniture and equipment, net
		accumulated depreciation of $31,598	141,265	48,554
		Total fixed assets	147,379	52,125
TOTAL ASSETS			$ 2,433,736	$ 389,752

		LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable and accrued liabilities		$ 2,144,567	$ 208,711
	Loan payable		12,798	13,176
	Loan payable-related party		1,000,000	-
	Interest payable		5,019	-
		Total current liabilities	3,162,384	221,887

Long-term liabilities:
	Loan payable-related party		701	-
	Loan payable		11,731	20,333
	Total long-term liabilities		12,432	20,333
		Total liabilities	3,174,816	242,220

Stockholders' equity:
	Preferred stock, $0.001 par value, 5,000,000 shares		-	-
		authorized, none issued
	Common stock, $0.001 par value, 70,000,000 shares		24,244	23,244
		authorized, 24,243,835 and 23,243,835 issued and
		outstanding as of 5/31/14 and 8/31/13,
		Respectively
	Prepaid consulting fees paid in common stock		(1,959,390)	(1,209,314)
	Additional paid-in capital		3,735,824	2,689,073
	Deficit accumulated during development stage		(2,541,758)	(1,355,471)
		Total stockholders' equity	(741,080)	147,532
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$ 2,433,736	$ 389,752

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

Your Event, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

			For the three months ended May 31, 2014	For the three months ended May 31, 2013	For the nine months ended May 31, 2014	For the nine months ended May 31, 2013
Revenue			$ 620,378	$ -	$ 754,686	$ -
Cost of goods sold			300,425	-	377,933	-
Gross profit			$ 319,953	$ -	$ 376,753	$ -

Expenses:
	Accounting fees		$ 8,402	$ 3,010	$ 43,437	$ 27,764
	Advertising		89,514	5,000	114,398	5,000
	Operating expenses		614,522	141,391	1,304,204	336,375
	Operating expenses - related party		38,120	19,000	95,605	54,058
		Total operating expenses	750,558	168,401	1,557,644	423,197

Other income and expenses:
	Foreign exchange gain/(loss)		87	-	133	(207)
	Interest income/(expense)		(3,295)	(2,622)	(5,529)	(6,205)
	(Loss) on investment		-	-	-	(125,035)
		Total other expenses	(3,208)	(2,622)	(5,396)	(131,447)

Net (Loss)			$ (433,813)	$ (171,023)	$ (1,186,287)	$ (554,644)

Weighted average number of common
	shares outstanding- basic		23,243,835	11,473,043	23,243,835	11,159,414

Net loss per share			$ (0.02)	$ (0.01)	$ (0.05)	$ (0.05)

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

Your Event, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

			For the nine months ended May 31, 2014	For the nine months ended May 31, 2013
OPERATING ACTIVITIES
Net loss			$ (1,186,287)	$ (554,644)
Adjustment to reconcile net loss from operations
	to net cash used in operating activities:
	Depreciation and amotization		28,666	3,625
	Amortization of prepaid stock compensation		297,674	-
	Changes in operating assets:
		Decrease (increase) in accounts receivable	(342,763)	(783)
		Decrease (increase) in deposits	530	(3,830)
		Decrease (increase) in inventory	(1,593,120)	-
		Decrease (increase) in advance payment	(547)	-
		Decrease (increase) in prepaid expense	(2,541)	18,260
	Changes in operating liabilities:
		Increase (decrease) in accounts payable	1,936,126	9,649
		Increase (decrease) in accounts payable-	-	6,500
		related party
		Increase (decrease) in accrued interest payable	5,019	3,622
Net cash (used) by operating activities			(857,243)	(517,601)

INVESTING ACTIVITIES
	Purchase of intangible assets		(4,808)	-
	Purchase of fixed assets		(118,681)	(51,173)
	Repurchase of treasury stock		-	-
Net cash (used) by investing activities			(123,489)	(51,173)

FINANCING ACTIVITIES
Proceeds from due to former stockholder			1,000,000	-
Repayments for due to former stockholder			-	-
Proceeds from due to officer			-	616,426
Repayments for due to officer			-	-
Proceeds from notes payable			-	36,752
Repayments of notes payable			(8,980)	-
Proceeds from sale of common stock			-	-
Contribution to capital			-	-
Net cash provided by financing activities			991,020	653,178

NET INCREASE IN CASH			10,288	84,404
CASH - BEGINNING OF THE PERIOD			101,484	127,988
CASH - END OF THE PERIOD			$ 111,772	$ 212,392

SUPPLEMENTAL DISCLOSURES:
Interest paid			-	-
Income taxes paid			-	-
Stock payable			-	-
Non-cash transactions:
	Amortization of prepaid stock compensation		297,674	-
	Prepaid stock compensation		1,047,750
	Stock issued for repayment of debt		-	272,000

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

Your Event, Inc.

Notes to the Condensed Consolidated Unaudited Financial Statements

May 31, 2014

(Unaudited)

NOTE 1 - FINANCIAL STATEMENTS

The financial data presented herein is unaudited and should be read in conjunction with the financial statements and accompanying notes included in the 2013 Annual Report on Form 10-K filed by Your Event, Inc. (which, unless the context requires otherwise, shall be referred to herein as the “Company”). In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at May 31, 2014 and for all periods presented have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's August 31, 2013 audited financial statements. The results of operations for the periods ended May 31, 2014 and May 31, 2013 are not indicative of the operating results for the full year.

NOTE 2 - GOING CONCERN

These condensed financial statements have been prepared in accordance with U.S. GAAP applicable to a going concern which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As of May 31, 2014, the Company has generated $620,378 in revenues for this quarter and has accumulated a net loss of $(433,813) for the same period. The Company's ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its ability to achieve profitable operations. Management plans to raise equity capital to finance the operating and capital requirements of the Company. Amounts raised will be used for the acquisition of business across several industry sectors through the implementation of well-defined management strategies. While the Company is putting forth its best efforts to achieve these plans, there is no assurance that any such activity will generate funds that will be available for operations.

These conditions raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.

Your Event, Inc.

Notes to the Condensed Consolidated Unaudited Financial Statements

May 31, 2014

(Unaudited)

NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES

Critical Accounting Policies and Estimates

Revenue Recognition: We recognize revenue from product sales once all of the following criteria for revenue recognition have been met: pervasive evidence that an agreement exists; the services have been rendered; the fee is fixed and determinable and not subject to refund or adjustment; and collection of the amount due is reasonably assured.

Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Intangible assets

The Company follows Financial Accounting Standard Board’s (FASB) Codification Topic 350-50 (“ASC 350-50”), “Intangibles – Goodwill and Other” to determine the method of amortization of its intangible assets. The Company’s intangible assets are capitalized at historical cost and are amortized over their useful lives.

Inventory

The Company is a wholesaler/distributor that purchases from the manufacturer to meet sales forecasts based on internal projections and confirmed customer demand. Merchandise purchased from the manufacturer is shipped directly to the customer, or to the Company's warehouse. A portion of the orders are purchased directly by the client upon delivery, with the remainder on consignment.

Seasonal Revenue

The retail sales of the Company’s products are seasonal in nature. Sales of apparel and hard goods will constitute a significant portion of the Company’s sales. Since the Company’s primary customers will consist of major league baseball teams, the Company expects during the off-season, it will generate limited revenues as compared to when the baseball season is in session. The Company generated revenues of $620,378, during the three month period ended May 31, 2014, versus no revenues for the same period ended May 31, 2013, when the Company was inactive.

Your Event, Inc.

Notes to the Condensed Consolidated Unaudited Financial Statements

May 31, 2014

(Unaudited)

NOTE 4 - RECENT ACCOUNTING PRONOUNCEMENTS

The Company has evaluated all recent accounting pronouncements and believes that none of them will have a material effect on the Company's financial position and results of operations.

NOTE 5 – SUBSIDIARY

On September 3, 2012, the Company incorporated a newly formed a wholly-owned subsidiary, named YEVN JAPAN, Inc., in Japan. The Company’s management formed this subsidiary in order to facilitate the future business operations in Japan. The proposed focus of this new subsidiary was to plan, operate and administer major events in Japan, not limited to conducting public exhibitions.

On October 12, 2012, the Company moved its corporate headquarters from Intex Bldg. 2F, 2-7-11 Nishi Gotanda, Shinagawa-Ward, Tokyo, Japan 141-0031 to 1601 Pacific Coast Highway Suite 250, Hermosa Beach, CA 90254. Management believes California is where the new business opportunity lies for the Company. Management is currently working to establish and grow its business there. Upon moving its corporate headquarters to California, management concluded the Company no longer needed a subsidiary in Japan. Prior to closing the subsidiary, all liabilities were settled and the subsidiary had no assets.

NOTE 6 – LOAN PAYABLE

On February 15, 2013 the Company entered into a Promissory Note with a bank for the principal amount of $40,000. Interest on the unpaid principal balance of this Note shall be calculated at the rate of two point five seven percent (2.57%) per annum with a Maturity Date of February 15, 2016. Payments of $1,196.20 are due monthly until the Maturity Date. This Note may be paid earlier than due without penalty. The Company’s Certificates of Deposit in an amount equal to the principal have been used as collateral on this Note.

Your Event, Inc.

Notes to the Condensed Consolidated Unaudited Financial Statements

May 31, 2014

(Unaudited)

NOTE 7 – RELATED PARTY LOAN PAYABLE

On January 20, 2014, the Company entered into a Loan Agreement with Million Win Investments Limited, a Hong Kong corporation for the principal sum of $160,000 USD. The Company promised to pay to Million Win Investments Limited a simple rate per annum equal to one point five percent (1.5%) per annum. The Company and Million Win agreed to extend the date to December 31, 2014, when the outstanding principal amount of the Note and all accrued interest thereon ~~was~~ becomes due and payable. Million Win Investments has recently assigned this Note to RxTrading, a Hong Kong company. Any principal and interest not paid when due, and any other amount payable by our company and not paid when due, shall bear interest at the simple rate of fourteen point size percent (14.6%). There is no arrangement to maintain compensating balances with a bank in relation with this line of credit. The Company has an outstanding balance of $160,600 as of May 31, 2014.

NOTE 8 – RELATED PARTY LINE OF CREDIT

On November 1, 2013, the Company entered into a Promissory Note with C-Five Management, a Japanese corporation for the principal sum of $1,000,000 USD (the Credit Limit), or such lesser amount. The Company promises to pay to C-Five Management a simple rate per annum equal to one point five percent (1.5%) per annum. The outstanding principal amount of the Note and all accrued interest thereon shall be due and payable on or before December 31, 2014. Any principal and interest not paid when due, and any other amount payable by our company and not paid when due, shall bear interest at the simple rate of fourteen point size percent (14.6%). There is no arrangement to maintain compensating balances with a bank in relation with this line of credit. The Company received $165,000 on October 8, 2013, $45,000 on November 25, 2013, $40,000 on December 10, 2013, $50,000 on December 24, 2013, $60,000 on December 26, 2013, $45,000 on February 28, 2014, $95,000 on March 12, and $150,000 on April 3 for an outstanding balance of $654,743.75 as of May 31, 2014.

The Company received a loan of $140,000 on March 26, 2014, and additional loans of $50,000 on May 7, 2014 and $110,144.93 on June 10, 2014 from Billion Sino (Asia), a Hong Kong Company. On June 16, 2014, the Company repaid $112,592.59, the principal amount of the June 10, 2014 loan, including handling fees. The Company promised to pay to Billion Sino a simple rate per annum equal to one point five percent (1.5%) per annum. These loans becomes due and payable on December 31, 2014, and represent advances on a $1,000,000 Line of Credit, for which the Company is in the process of negotiating with Billion Sino (Asia).

NOTE 9 – SUBSEQUENT EVENTS

The Company has evaluated subsequent events through July 1, 2014, the date on which the financial statements were available to be issued.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Information

This Quarterly Report on Form 10-Q contains forward-looking statements. When used in this Quarterly Report on Form 10-Q, the words "anticipate," "believe," "estimate," "will," "plan," "seeks," "intend," and "expect" and similar expressions identify forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in any forward-looking statements are reasonable, these plans, intentions, or expectations may not be achieved. Our actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied, by the forward-looking statements contained in this Quarterly Report on Form 10-Q. Important factors that could cause actual results to differ materially from our forward-looking statements are set forth in this Quarterly Report on Form 10-Q All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth in this Quarterly Report on Form 10-Q. Except as required by federal securities laws, we are under no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise. In this Form 10-Q, the "Company," "we," "us," and "our" refer to Your Event, Inc. unless the context otherwise requires.

Critical Accounting Policies

There have been no material changes to our critical accounting policies and estimates from the information provided in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," included in our Annual report on Form 10-K for the fiscal year ended August 31, 2012.

Results of Operations

Overview of Current Operations

Your Event, Inc. (the “Company” or the “Registrant”) was incorporated in the state of Nevada on October 30, 2007.

The company has positioned itself to sell and market products under a well-known licensed brand, specifically, Hello Kitty. Your Event signed a Distribution Agreement with Sanrio as their exclusive wholesaler and distributor of Hello Kitty apparel and hard goods that will be sold through the Major League Baseball ("MLB") teams. The co-branded products are to be approved by Sanrio, and manufactured by Sanrio, Forever Collectibles, an Outerstuff Ltd.

Sales of such products are limited to the following retail channels:

a) Retail stores on the premise of "MLB" ballparks;

b) Retail stores owned by and directly controlled by MLB;

c) Online stores directly operated by MLB

Our website is: http://yevn.us

Our Mission

“Our mission is to build a multi-generational fan base.” Our mission is accomplished by assisting professional sports teams in acquiring fans from the younger generation. As these younger fans develop a loyalty to the team, it is anticipated that these young fans eventually pass their team-specific enthusiasm to their children and grandchildren.

Our Business

We plan to market and sell Hello Kitty apparel and merchandise at a wide range of retail sales prices. Our Hello Kitty apparel products consist of:

· T-Shirts

· Outerwear

· Fleece Jackets

· Adjustable Baseball Caps (baseball caps that are sized, fitted and adjustable)

We also plan to market and sell Hello Kitty hard goods that consist of:

· tote bags

· coin purses

· cell phone covers

· pins

· ball point pens

· eyeglass frames

· plush seat cushions

· plush dolls

· keychains

· pouch

· cell phone charm

· fan

· photo stand

· wallet

· laptop cover

· patch

· mouse pad

· eye mask

· can foam cooler

· stickers, all with the Hello Kitty likenesses.

Manufacturing and Sourcing

We arrange for the production of products from independent manufacturers located primarily in Shenzen and Shanghai, China.

Our headquarters in California provide the liaison offices with production orders stating the quantity, quality, delivery time and types of products to be produced. We assist in the negotiation and placement of orders with manufacturers. In allocating production among independent suppliers, we consider a number of criteria, including, but not limited to, quality, availability of production capacity, pricing and ability to meet changing production requirements.

The manufacture of the substantial majority of our products is performed manually. A pattern is used in cutting fabric to panels that are assembled in the factory. All sub-materials are also added at this time. The products are inspected throughout this process to insure that the design and quality specifications of the order are being maintained as the garment is assembled. After pressing, cleaning and final inspection, the product is labeled and ready for shipment.

Our company is solely responsible for all matters pertaining to the conceptual design and development of all merchandise co-branded between Hello Kitty Merchandise and Major League Baseball, however the final approvals on these designs and products lies with Major League Baseball, the Licensor, and Sanrio, with whom we have an exclusive distribution agreement.

As is customary, we have not entered into any long-term contractual arrangements with any vendor or manufacturer. We believe that the production capacity of foreign manufacturers with which we have developed, or are developing, a relationship is adequate to meet our production requirements for the foreseeable future. We believe that alternative foreign manufacturers are readily available.

A majority of all finished goods manufactured for us is drop-shipped to our customers and/or distribution facilities or to designated third party facilities for final inspection and allocation. The goods are delivered to our customers by independent shippers. We choose the form of shipment (principally ship, truck or air) based upon a customer’s needs, cost and timing considerations.

Our Pricing Plan

We plan to market our products at multiple price points allowing us to provide products to a broad range of consumers. Our strategy is to seek sports licenses that will enable us to offer a range of products targeting different price points and different distribution channels.

Marketing and Sales Plan

The Company's Marketing and Sales Plan produces three main revenue sources that include:

1. Retail Stores on the Premise of MLB Ballparks Owned by and Directly Controlled by MLB.

Our products are sold primarily in sports stores, which are owned, operated and located in the Major League Baseball stadiums located in the United States and Canada. For this reason, our sales are seasonable, whereby they increase during the regular baseball season, and decrease during the off-season.

2. Premium Giveaway Events & Other Special Promotions.

During the regular baseball season, we organize premium giveaway events with MLB. For example, we organized at the Dodger Stadium, Los Angeles, CA, a Hello Kitty bobble head giveaway event on June 3 and a Hello Kitty travel mug giveaway July 10, 2014. We also had Hello Kitty Day at AT&T Park in San Francisco on June 8, 2014. These events are an integrated part of our marketing effort to raise awareness of Hello Kitty with MLB fans, and to establish our brand identity. We are also planning on selling limited edition products. The main goal of special edition items is to create a brand loyalty in the market and generate consumer awareness

for our brand.

3. Online Stores Directly Operated by MLB (MLB.com)

An e-commerce MLB website overcomes geographical limitations. It also allows us to gain new customers with search engine visibility. MLB is one of the most successful brands in the world. MLB.com makes it possible for us to reach thousands of Hello Kitty/MLB fans. This distribution channel is another revenue source for the Compay. In addition to MLB.com, we are looking into other online stores to sell our items.

Seasonality

The retail sales of our products are seasonal in nature. Sales of sports apparel constitute a significant portion of our sales. Since our primary customers will consist of major league baseball teams, we expect during the off-season, we will generate limited revenues as compared to when the baseball season is in session

Competition

We have numerous competitors with respect to the sale of our products, including distributors that import products from abroad and domestic retailers with established foreign manufacturing capabilities. Some of our competitors have greater financial and marketing resources and greater manufacturing capacity than we do. In addition, many of these competitors have significantly greater experience than we do in their respective fields. We also compete with vertically integrated manufacturers that also own retail stores. Our retail business competes against a diverse group of retailers, including, among others, other outlet stores, department stores, specialty stores, warehouse clubs and e-commerce retailers. Sales of our products are affected by style, price, quality, brand reputation and general fashion trends.

Employees

The Company has four employees and eight Directors, two of whom are also Officers of the Company. Our Officers perform most of the job functions for the Company. The Company has no intention at this time to add employees until it can become a profitable entity. The Company from time-to-time may retain independent consultants in connection with its operations.

Properties

Our offices are currently located at 1601 Pacific Coast Highway Suite 250, Hermosa Beach, CA 90254.

Your Event, Inc.'s Funding Requirements

Management believes the Company will require additional funding to sustain its operations. There is no assurance that we will have sufficient revenue in the future or that we will be able to secure the necessary funding to develop our business. Without additional funding, it is most likely that our business model will fail, and we shall be forced to cease operations.

Results of Operations for the quarter ended May 31, 2014

Revenues

For the quarter ended May 31, 2014, the Company has generated $620,378 in revenues resulting in a gross profit of $319,953. For the nine-months ended May 31, 2014, the Company generated $754,686 resulting in a gross profit of $376,753. This compares to no revenues for the same period last year, when the Company had no product for sale.

During the quarter ended May 31, 2014, the Company had unaudited $111,772 in cash and a prepaid expense of $9,306, accounts receivable of $481,326, inventory of $1,679,614, advance payment of $547 and deposits of $3,792 for a total current assets of $2,286,357. Current liabilities, as of May 31, 2014, consisted of accounts payable and accrued liabilities of $2,144,567, loan payable of $12,798, loan payable-related party of $1,000,000 and interest payable of $5,019 for total current liabilities of $3,162,384.

This compares to audited cash of $101,484, prepaid paid expenses of $6,764, accounts receivable of $138,563, inventory of $86,494 and deposits of $4,322 for total current assets of $337,627 for the year ended August 31, 2012. Current liabilities for the year ended August 31, 2013 consisted of accounts payable and accrued liabilities of $208,711, and a loan payable of $13,176 for total current liabilities of $221,887.

During the three months ended May 31, 2014, the Company had total operating expenses of $750,558, as compared to total operating expenses of $168,401 for the same period last year. The expenses represented in the operating expenses were $8,402 in accounting fees, $89,514 in advertising expenses, $614,522 in operating expenses and $38,120 in operating expenses with a related party. The net (loss) for the three months ended May 31, 2014 was $(433,813) $(0.02) per share versus a net loss of $(171,023) or $(0.01) per share for the same period last year.

During the nine months ended May 31, 2014, the Company had total operating expenses of $1,557,644, as compared to total operating expenses of $423,197 for the same period last year. The expenses represented in the operating expenses were $43,437 in accounting fees, $114,398 in advertising expenses, $1,304,204 in operating expenses and $95,605 in operating expenses with a related party. The net (loss) for the nine months ended May 31, 2014 was $(1,186,287) or $(0.05) per share versus a net loss of $(554,644) or $(0.05) per share for the same period last year.

The Company used net cash in operations of $(857,243) during the nine month period ended May 31, 2014, net cash in investing activities of $(123,489) during the nine month period ended May 31, 2014; and generated cash of $991,020 from financing activities during the nine month period ended May 31, 2014. The funds generated from financing activities were from related party financing, advances from stockholders and bank loan.

Plan of Operation

Management believes that the Company will be able to generate revenues during the coming year. The Company's need for capital may change dramatically if it can generate revenues from its operations. There are no assurances additional capital will be available to the Company on acceptable terms.

Future funding could result in potentially dilutive issuances of equity securities, the incurrence of debt, contingent liabilities and/or amortization expenses related to goodwill and other intangible assets, which could materially adversely affect the Company's business, results of operations and financial condition. Any future funding might not be available on terms favorable to the Company, or at all, and such financing, if available, might be dilutive.

Going Concern

The Company experienced operating losses of $(2,541,758) since its inception on October 30, 2007 through the period ended May 31, 2014. The financial statements have been prepared assuming the Company will continue to operate as a going concern which contemplates the realization of assets and the settlement of liabilities in the normal course of business. No adjustment has been made to the recorded amount of assets or the recorded amount or classification of liabilities which would be required if the Company were unable to continue its operations. (See Financial Footnote 2.)

Summary of any product research and development that we will perform for the term of our plan of operation.

We do not anticipate performing any additional significant product research and development under our current plan of operation.

Expected purchase or sale of plant and significant equipment

We do not anticipate the purchase or sale of any plant or significant equipment as such items are not required by us at this time.

Significant changes in the number of employees

As of May 31, 2014, we had four employees, eight Directors, two of whom are also Officers of the Company. We are dependent upon our officers and directors for our future business development. As our operations expand we anticipate the need to hire additional employees, consultants and professionals; however, the exact number is not quantifiable at this time.

Liquidity and Capital Resources

As of May 31, 2014, the Company had total current assets of $2,286,357 and total current liabilities of $3,162,384. The Company has limited financial resources available, which has had an adverse impact on the Company's liquidity, activities and operations. Without realization of additional capital, it would be unlikely for the Company to continue as a going concern. In order for the Company to remain a Going Concern it will need to generate revenues or find additional capital. Additional working capital may be sought through additional debt or equity private placements, additional notes payable to banks or related parties (officers, directors or stockholders), or from other available funding sources at market rates of interest, or a combination of these. The ability to raise necessary financing will depend on many factors, including the nature and prospects of any business to be acquired and the economic and market conditions prevailing at the time financing is sought. No assurances can be given that any new financing can be obtained to future the Company's business plan.

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 effect on our financial condition, changes in financial condition, revenues or expenses, results or operations, liquidity, capital expenditures or capital resources that is material

to investors.

Critical Accounting Policies and Estimates

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not required for smaller reporting companies.

Item 4T. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in rules and forms adopted by the SEC, and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosures.

Management, with the participation of the Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on such evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that, our disclosure controls and procedures were not effective. Our disclosure controls and procedures were not effective because of the "material weaknesses" described below under "Management's report on internal control over financial reporting," which are in the process of being remediated as described below under "Management Plan to Remediate Material Weaknesses."

Management's Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting, as defined in rules promulgated under the Exchange Act, is a process designed by, or under the supervision of, our Chief Executive Officer and Chief Financial Officer and affected by our Board of Directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Internal control over financial reporting includes those policies and procedures that:

· pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

· provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and our Board of Directors; and

· provide reasonable assurance regarding prevention or timely detection of unauthorized aacquisition, use or disposition of our assets that could have a material effect on our financial statements

Because of its inherent limitations, a system of internal control over financial reporting can provide only reasonable, not absolute, assurance that the objectives of the control system are met and may not prevent or detect misstatements. Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper override. Because of such limitations, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process, and it is possible to design into the process safeguards to reduce, though not eliminate, this

risk. Further, over time control may become inadequate because of changes in conditions or the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of our internal control over financial reporting as of May 31, 2014. In making its assessment, management used the criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on its assessment, management has concluded that we had certain control deficiencies described below that constituted material weaknesses in our internal controls over financial reporting. As a result, our internal control over financial reporting was not effective as of May 31, 2014.

A "material weakness" is defined under SEC rules as a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of a company's annual or interim financial statements will not be prevented or detected on a timely basis by the company's internal controls. As a result of management's review of the investigation issues and results, and other internal reviews and evaluations that were completed after the end of quarter related to the preparation of management's report on internal controls over financial reporting required for this quarterly report on Form 10-Q, management concluded that we had material weaknesses in our control environment and financial reporting process consisting of the following:

1) lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures;

We do not believe the material weaknesses described above caused any meaningful or significant misreporting of our financial condition and results of operations for the quarter ended May 31, 2014. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.

Management Plan to Remediate Material Weaknesses

Management is pursuing the implementation of corrective measures to address the material weaknesses described above. In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we have initiated, or plan to initiate, the following

series of measures:

We have just appointed one outside director to our board of directors who will undertake the oversight in the establishment and monitoring of required internal controls and procedures such as reviewing and approving estimates and assumptions made by management.

We believe the remediation measures described above will remediate the material weaknesses we have identified and strengthen our internal control over financial reporting. We are committed to continuing to improve our internal control processes and will continue to diligently and vigorously review our financial reporting controls and procedures. As we continue to evaluate and work to improve our internal control over financial reporting, we may determine to take additional measures to address control deficiencies or determine to modify, or in appropriate circumstances not to complete, certain of the remediation measures described above.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial

reporting.

This quarterly report does not include an attestation report of the Corporation's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Corporation's registered public accounting firm pursuant to temporary rules of the SEC that permit the Corporation to provide only the management's report in this quarterly report.

PART II. OTHER INFORMATION

Item 1 -- Legal Proceedings

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

We are not presently a party to any material litigation, nor to the knowledge of management is any litigation threatened against us, which may materially affect us.

Item 1A - Risk Factors

See Risk Factors set forth in Company's Annual Report on Form 10-K, dated August 31, 2013, and filed with the Commission on December 16, 2013, and the discussion in Item 1, above, under "Liquidity and Capital Resources."

Item 2 -- Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3 -- Defaults Upon Senior Securities

None.

Item 4 -- Submission of Matters to a Vote of Security Holders

The Company held its Annual Meeting of Shareholders on March 31, 2014. Set forth below are the final voting results for each of the proposals submitted to a vote of the shareholders.

				Votes For		Votes Against		Abstentions		Broker Non-Votes
1.	Election of Directors:
	June Tsukamoto			20,370,000		0		0		0
	Takahito Yasuki			20,370,000		0		0		0
	Noboru Okuda			20,370,000		0		0		0
	Keiichi Tsukamoto			20,370,000		0		0		0
	Kioko Tsukamoto			20,370,000		0		0		0
	Aiki Kobayashi			20,370,000		0		0		0
	Fumio Sabata.			20,370,000		0		0		0
	Yasuo Matsuo			20,370,000		0		0		0

			Votes For		Votes Against		Abstentions		Broker Non-Votes
2.		Approval of 2014 Stock Option Plan	20,370,000		0		0		0
3.		Ratify Appointment of Independent Registered Public Accounting Firm	20,370,000		0		0		0
4.		Provide an Advisory Vote on the Company's Executive Compensation (the "Say on Pay" Vote)	20,370,000		0		0		0

Item 5 -- Other Information

None.

Item 6 -- Exhibits

Exhibit Number	Ref	Description of Document


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

32.1		Certification of Principal Executive and Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

Pursuant to the requirements 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.

	Your Event, Inc. Registrant


Date: July 11, 2014	/s/ Takahito Yasuki
	Name: Takahito Yasuki
	Title: Principal Executive Officer Principal Financial Officer and Director

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