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EX-32.1 - EXHIBIT 32.1 - TOA Holdings, Inc.toaholdings_exhibit321.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

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

 

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2014

OR

 

[   ] 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: 000-54822

 

 

TOA Holdings, Inc.

(Exact name of registrant as specified in its charter)

 

  Delaware 46-0992328  
 

(State or other jurisdiction

of incorporation or organization)

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

C/O TOA Shoko, 1-1-36, Nishiawaji,

Higashiyadogawa-ku Osaka, Japan

533-0031

(Zip Code)

 
   (Address of Principal Executive Offices)    

 

  Issuer's telephone number: +81-6-6325-5035

Fax number: +81-6325-5037 

Email: info@toa-group.asia

 

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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. [X ]Yes [ ] 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 (Section 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). [X ]Yes [ ] No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer or a small reporting company. See definition of large accelerated filer, accelerated filer and small reporting company in Rule 12b-2 of the Securities Exchange Act of 1934.

 

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Small reporting company [X]

 

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

 

 [ ] Yes [X] No

 

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

As of August 4, 2014, there were approximately 40,000,000 shares of common stock and 1,000,000 shares of preferred stock issued and outstanding.

 

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Table of Contents

INDEX

 

PART I-FINANCIAL INFORMATION

 

      Page
       
ITEM 1 FINANCIAL STATEMENTS   F1
Balance Sheets   F2
Statements of Operations   F3
Statements of Cash Flows   F4
Notes to Financial Statements   F5
     
ITEM 2 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS   3
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK   3
ITEM 4 CONTROLS AND PROCEDURES   4
 
PART II-OTHER INFORMATION
ITEM 1 LEGAL PROCEEDINGS   5
ITEM 1A RISK FACTORS    
ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS   5
ITEM 3 DEFAULTS UPON SENIOR SECURITIES   5
ITEM 4 MINE SAFETY DISCLOSURES   5
ITEM 5 OTHER INFORMATION   5
ITEM 6 EXHIBITS   5
   
SIGNATURES   6

 

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Table of Contents

 

PART I-FINANCIAL INFORMATION

  

ITEM 1 FINANCIAL STATEMENTS 

 

TOA HOLDINGS, INC.

 CONSOLIDATED FINANCIAL STATEMENTS

 

INDEX TO FINANCIAL STATEMENTS

 

    Page
     
Balance Sheets   F2
     
Statements of Operations   F3
     
Statements of Cash Flows   F4
     
Notes to Financial Statements   F5

 

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TOA HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
           
      As of   As of
      June 30, 2014   September 30, 2013
      (unaudited)   (audited)
ASSETS        
Current Assets        
  Cash and cash equivalents $ 18 $ -
  Trade receivables - Related Party $ - $ 72,000
           
           
TOTAL CURRENT ASSETS $ 18 $ 72,000
           
TOTAL ASSETS $ 18 $ 72,000
           
LIABILITIES AND SHAREHOLDER EQUITY        
Current Liabilities        
  Trade payables $ - $ 48,000
  Accrued expenses $ 33,707 $ 6,300
  Account payables - Related Party $ 23,871 $ 33,763
           
TOTAL CURRENT LIABILITIES $ 57,578 $ 88,063
           
TOTAL LIABILITIES $ 57,578 $ 88,063
           
Shareholders’ Equity (Deficit)        
  Common stock ($.0001 par value, 500,000,000 shares authorized,        
  40,000,000 shares issued and outstanding        
  as of December 31, 2013 and September 30, 2013) $ 4,000 $ 4,000
  Preferred stock ($.0001 par value, 20,000,000 shares authorized;        
  1,000,000 shares issued and outstanding        
  as of December 31, 2013 and September 30, 2013) $ 100 $ 100
  Additional paid-in capital $ 2,648 $ 2,648
  Subscriptions receivables $ - $  (8,092)
  Accumulated deficit $  (66,113) $  (16,787)
Accumulated other comprehensive income        
  Foreign currency translation $ 1,805 $ 2,067
           
TOTAL SHAREHOLDERS’ EQUITY $  (57,560) $  (16,063)
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 18 $ 72,000
           
The accompanying notes are an integral part of these financial statements

 

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TOA HOLDINGS, INC.

CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

(UNAUDITED)

                   
                   
      Three months   Three months   Nine months   Nine months
      Ended   Ended   Ended   Ended
      June 30, 2014   June 30, 2013   June 30, 2014   June 30, 2013
                   
Revenues - Related Party $ - $ - $ - $ -
Cost of revenues - Related Party   -   -   -   -
                   
Gross profit   -   -   -   -
                   
General and Administrative Expenses                
  Advertising expenses $ - $ - $ 30,000 $ 30,000
  Organization and related expenses $ - $ -   -   2,500
  Director's compensation   -   30,000   -   -
  Other expenses   13,713   4,474   19,326   4,874
                   
Total Expenses $ 13,713 $ 34,474 $ 49,326 $ 37,374
                   
NET INCOME (LOSS) BEFORE TAXES $  (13,713) $  (34,474) $  (49,326) $  (37,374)
                   
Income Tax Expenses $ - $ - $ - $ -
                   
NET INCOME (LOSS) $  (13,713) $  (34,474) $  (49,326) $  (37,374)
                   
OTHER COMHREHENSIVE INCOME                
  Foreign currency translation adjustment $  (676) $ 341 $  (262) $ 341
                   
TOTAL COMPREHENSIVE INCOME (LOSS) $  (14,389) $  (34,134) $  (49,588) $  (37,033)
                   
WEIGHTED AVERAGE SHARES OUTSTANDING   40,000,000   35,337,039   40,000,000   25,093,284
                   
NET INCOME(LOSS) PER SHARE $  (0.00) $  (0.00) $  (0.00) $  (0.00)
                   

  

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TOA HOLDINGS, INC.

CONDENSED STATEMENT OF CASH FLOWS

(UNAUDITED)

 

           
      Nine months   Nine months
      Ended   Ended
      June 30, 2014   June 30, 2013
           
CASH FLOWS FROM OPERATING ACTIVITIES        
  Net income (loss) $  (49,326) $  (34,474)
  Adjustments to reconcile net income (loss ) to net cash        
  Stock issued for services rendered   -   30,000
  Trade receivables - Related Party   72,000   -
  Trade payables - Related Party    (48,000)   -
  Accrued expenses   27,407   -
  Account payables   -   4,134
  AP–Advances from Related Party    (9,892)   -
  Net cash provided by (used in) operating activities $  (7,812) $  (340)
           
Net effect of exchange rate changes on cash $  (262) $ -
           
CASH FLOWS FROM FINANCING ACTIVITIES        
           
  Subscriptions receivables   8,092   -
  Net cash provided by (used in) investing activities $ 8,092 $ -
           
Net Change in Cash and Cash equivalents $ 18 $ -
Cash and cash equivalents - beginning of period   -   -
Cash and cash equivalents - end of period   18   -
           
NONCASH INVESTING AND FINANCING ACTIVITIES        
           
           
SUPPLEMENTAL INFORMATION        
Interest paid   -   -
Income taxes paid   -   -
           

  

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Table of Contents

 

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

 

The accompanying unaudited condensed financial statements of Toa Holdings, Inc. (the “Company” ) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or the SEC, including the instructions to Form 10-Q and Regulation S-X. In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three month periods and for the period from the date of inception have been made. Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year. When used in these notes, the terms “Company”, “we”, “us” or “our” mean the Company. Certain information and note disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America has been condensed or omitted from these statements pursuant to such accounting principles and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements and should be read in conjunction with our audited financial statements for the year ended September 30, 2013.

 

In the quarter ended June 30, 2014, the Company elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. The adoption of this ASU allows the company to remove the inception to date information and all references to development stage

 

We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow.

 

NOTE 2 - GOING CONCERN

 

The accompanying financial statements are prepared on a basis of accounting assuming that the Company is a going concern that contemplates realization of assets and satisfaction of liabilities in the normal course of business. The Company is considered a growth company and has few current revenue sources. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s management plans to engage in very limited activities without incurring any liabilities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue- producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.

 

NOTE 3 - RELATED-PARTY TRANSACTIONS

 

At June 30, 2014 the company owed a related party in the amount of $23,871 to its officer and director. The advances have no terms and are treated as demand loans and are for expenses he paid on behalf of the Company.

 

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Table of Contents

   

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

 

Our cash balance is $18 as of June 30, 2014. Our cash balance is not sufficient to fund our limited levels of operations for any period of time. We have been utilizing and may utilize funds from Hajime Abe, our president and director, who has informally agreed to advance funds to allow us to pay for offering costs, filing fees, and professional fees. Hajime Abe, however, has no formal commitment, arrangement or legal obligation to advance or loan funds to the company. In order to implement our plan of operations for the next twelve-month period, we require a minimum of $1,800,000 of funding. Being a development stage company, we have very limited operating history. After a twelve-month period we may need additional financing but currently do not have any arrangements for such financing.

 

We are a development stage company and have generated few revenue to date.

 

If we do not receive any proceeds in the foreseeable future or the minimum amount of $1,800,000 that we require to operate for the next 12 months Hajime Abe, has informally agreed to advance us funds, however, he has no formal commitment, arrangement or legal obligation to advance or loan funds to the company.

 

If we need additional cash and cannot raise it, we will either have to suspend operations until we do raise the cash we need, or cease operations entirely.

 

ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide the information required by this Item.

 

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Table of Contents

 

ITEM 4 CONTROLS AND PROCEDURES

 

Management’s Report on Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934 , as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and our chief financial officer (who is acting as our principal executive officer, principal financial officer and principle accounting officer) to allow for timely decisions regarding required disclosure.

 

As of June 30, 2014, the end of the fiscal period covered by this report, we carried out an evaluation, under the supervision of our chief executive officer, with the participation of our chief financial officer, of the effectiveness of the design and the operation of our disclosure controls and procedures. The officers concluded that the disclosure controls and procedures were not effective as of the end of the period covered by this report due to material weaknesses identified below.

 

Management’s Report on Internal Control over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of internal control include providing management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management’s authorization and recorded properly to permit the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States. Our management assessed the effectiveness of our internal control over financial reporting as of June 30, 2014. 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. Our management has concluded that, as of June 30, 2014, our internal control over financial reporting was not effective as of the end of the period covered by this report due to identified material weaknesses. Inasmuch as we only have one individuals serving as our officer, and employee we have determined that the Company has inadequate controls and procedures over financial reporting due to the lack of segregation of duties and lack of a formal review process that includes multiple levels of review, resulting in several audit adjustments related to derivative accounting, accounting of the Company’s convertible debt instruments, and write-off of assets. Management recognizes that its controls and procedures would be substantially improved if there was a greater segregation of the duties of Chief Executive Officer and Chief Financial Officer and as such is actively seeking to remediate this issue. Management believes that the material weakness in its controls and procedures referenced did not have an effect on our financial results.

 

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

 

Inherent limitations on effectiveness of controls

 

Internal control over financial reporting has inherent limitations which include but is not limited to the use of independent professionals for advice and guidance, interpretation of existing and/or changing rules and principles, segregation of management duties, scale of organization, and personnel factors. Internal control over financial reporting is a process which 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 management override. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a timely basis, 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. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

Changes in Internal Control over Financial Reporting

 

There have been no changes in our internal controls over financial reporting that occurred during the year ended September 30, 2013 that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

 

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Table of Contents

 

PART II-OTHER INFORMATION

 

ITEM 1 LEGAL PROCEEDINGS

 

There are no legal proceedings against the Company and the Company is unaware of such proceedings contemplated against it.

 

ITEM 1A RISK FACTORS

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide the information required by this Item.

 

ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

On January 18, 2013 Jeffrey DeNunzio sold 20,000,000 shares of common stock to Hajime Abe.

 

On April 1, 2013, Hajime Abe entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with TOA Holdings, Inc., a Delaware corporation. Pursuant to the Agreement, Hajime Abe will transfer to TOA Holdings, Inc., 1,000,000 shares of TOA Shoko’s common stock which represents all of TOA Shoko’s issued and outstanding shares in consideration of 1,000,000 JPY ($10,089 USD). Following the closing of the share purchase transaction on July 6, 2013, TOA Holdings, Inc. owns a 100% interest in the issued and outstanding shares of TOA Shoko’s common stock. Upon closing TOA Holdings, Inc. is (will be) the controlling shareholder of the Company (TOA Shoko).

 

On April 22, 2013, the Company issued 1,000,000 shares of restricted Series A preferred stock valued at $100 to Hajime Abe as director’s compensation.

 

On April 22, 2013, the Company issued 20,000,000 shares of restricted common stock valued at $2,000 to Hajime Abe as director’s compensation.

 

On April 23, 2013, Mr. Hajime Abe entered into stock purchase agreements with 342 Japanese shareholders (“Japanese Shareholders”). Pursuant to these agreements, Mr. Abe sold 31,400,000 shares of common stock of the Company to these Japanese Shareholders.

 

We claim an exemption from registration afforded by Section 4(2) and/or Regulation S of the Securities Act of 1933, as amended ("Regulation S") for the above sales of the stock since the sales of the stock were made to non-U.S. persons (as defined under Rule 902 section (k)(2)(i) of Regulation S), pursuant to offshore transactions, and no directed selling efforts were made in the United States by the issuer, a distributor, any of their respective affiliates, or any person acting on behalf of any of the foregoing.

 

ITEM 3 DEFAULTS UPON SENIOR SECURITIES

 

None

 

ITEM 4 MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5 OTHER INFORMATION

 

None

 

ITEM 6 EXHIBITS

 

(a) Exhibits required by Item 601 of Regulation S-K.

 

Exhibit No.   Description
3.1   Certificate of Incorporation, as of September 30, 2012. (1)
3.2   By-laws. (1)
     
31.1   Certification of the Company’s Principal Executive and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s report on Form 10-Q for the quarter ended June 30, 2014. (2)
   
32.1   Certification of the Company’s Principal Executive and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (2)
     
101.INS   XBRL Instance Document (3)
     
101.SCH   XBRL Taxonomy Extension Schema (3)
     
101.CAL   XBRL Taxonomy Extension Calculation Linkbase (3)
     
101.DEF   XBRL Taxonomy Extension Definition Linkbase (3)
     
101.LAB   XBRL Taxonomy Extension Label Linkbase (3)
     
101.PRE   XBRL Taxonomy Extension Presentation Linkbase (3)

 

(1) Filed as an exhibit to the Company's Registration Statement on Form 10, as filed with the SEC on October 9, 2012, and incorporated herein by this reference.
(2) Filed herewith.
(3) Users of this data are advised that, pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or Annual Report for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Exchange Act of 1934 and otherwise are not subject to liability.

 

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SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, there unto duly authorized.

 

TOA Holdings Inc.

(Registrant)

 

By: /s/ Hajime Abe 

Hajime Abe, President, CEO and

Principal Financial Officer

Dated: August 4, 2014

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