Attached files
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EX-31.1 - EXHIBIT 31.1 - Crown Baus Capital Corp. | exhibit311.htm |
EX-32.2 - EXHIBIT 32.2 - Crown Baus Capital Corp. | exhibit322.htm |
EX-31.2 - EXHIBIT 31.2 - Crown Baus Capital Corp. | exhibit312.htm |
EX-32.1 - EXHIBIT 32.1 - Crown Baus Capital Corp. | exhibit321.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
þ QUARTERLY REPORT PUSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 2014
o TRANSITION REPORT PUSUANT TO SECTION 13 OR 15 (d) OF THE EXCHANGE ACT
For the transition period from _________ to _________
Commission File Number: 333-172744
MOBILE LADS CORP.
(Exact name of registrant as specified in its charter)
Nevada | 42-1774611 |
(state or other jurisdiction of incorporation or organization) | (I.R.S. Employer I.D. No.) |
326 Adelaide Street West, 4th Floor
Toronto, Ontario, Canada M5V 1R3
(Address of principal executive offices)
(416) 953-3133
Issuers telephone number
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 past 12 months (or for such shorter period that the registrant was require to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer [ ] | Accelerated filer [ ] | Non-accelerated filer [ ] | Smaller 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 [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Check whether the registrant has filed all documents and reports required to be filed by Sections 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 ISSUERS:
As of September 12, 2014 the registrants outstanding stock consisted of 233,566,850 common shares.
MOBILE LADS CORP.
(A Development Stage Company)
FORM 10-Q
For the Quarterly Period Ended July 31, 2014
INDEX
PART I | Financial Information | 3 |
Item 1. | Financial Statements | 3 |
Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations | 4 |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 6 |
Item 4. | Controls and Procedures | 6 |
|
|
|
PART II | Other Information | 7 |
Item 1. | Legal Proceedings | 7 |
Item 1A. | Risk Factors | 7 |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 7 |
Item 3. | Defaults Upon Senior Securities | 7 |
Item 4. | Mine Safety Disclosures | 7 |
Item 5. | Other Information | 7 |
Item 6. | Exhibits | 8 |
Signatures | 8 |
2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
MOBILE LADS CORP.
(A Development Stage Company)
FINANCIAL STATEMENTS
July 31, 2014 and April 30, 2014
TABLE OF CONTENTS
Balance Sheets as of July 31, 2014 (unaudited) and April 30, 2014 |
| F-1 |
Statements of Operations for the three months ended July 31, 2014 and 2013 and from inception on March 26, 2013 through July 31, 2014 (unaudited) |
| F-2 |
Statement of Stockholders equity (deficit) from inception of March 26, 2013 through July 31, 2014 (unaudited) |
| F-3 |
Statements of Cash Flows for the three months ended July 31, 2014 and 2013 and from inception on March 26, 2013 through July 31, 2014 (unaudited) |
| F-4 |
Notes to the Financial Statements (unaudited) |
| F-5 |
3
MOBILE LADS CORP.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
(Unaudited)
ASSETS |
| |||
| July 31, 2014 |
| April 30, 2014 | |
|
| (unaudited) |
|
|
Current Assets: |
|
|
|
|
Cash | $ | - | $ | - |
Prepaid expense |
| 1,286 |
| - |
|
|
|
|
|
Total Assets | $ | 1,286 | $ | - |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT) |
|
|
|
|
Current Liabilities: |
|
|
|
|
Due to an officer | $ | 14,300 | $ | - |
|
|
|
|
|
Total Liabilities |
| 14,300 |
| - |
|
|
|
|
|
Stockholders Equity: |
|
|
|
|
Common stock, par value $0.00001; 4,125,000,000 shares authorized, 233,566,850 and 233,566,850 shares issued and outstanding; respectively |
| 2,336 |
| 2,336 |
Additional paid in capital |
| 29,564 |
| 29,564 |
Deficit accumulated during the development stage |
| (44,914) |
| (31,900) |
Total Stockholders Equity (Deficit) |
| (13,014) |
| - |
Total Liabilities and Stockholders Equity (Deficit) | $ | 1,286 | $ | - |
The accompanying notes are an integral part of these financial statements.
F-1
MOBILE LADS CORP.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
(Unaudited)
|
| For the Three Months Ended July 31, |
| For the period from March 26, 2013 (Inception) to July 31, 2014 | ||
2014 |
| 2013 |
| |||
|
|
|
|
|
|
|
Revenue | $ | - | $ | - | $ | - |
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
General and administrative |
| 2,016 |
| 71 |
| 22,666 |
Professional Fees |
| 10,998 |
| 2,500 |
| 22,248 |
|
|
|
|
|
|
|
Total operating expenses |
| 13,014 |
| 2,571 |
| 44,914 |
|
|
|
|
|
|
|
Loss from operations |
| (13,014) |
| (2,571) |
| (44,914) |
|
|
|
|
|
|
|
Provision for Income Taxes |
| - |
| - |
| - |
|
|
|
|
|
|
|
Net Loss | $ | (13,014) | $ | (2,571) | $ | (44,914) |
|
|
|
|
|
|
|
Net Loss per share - basic | $ | (0.00) | $ | (0.00) |
|
|
Weighted average shares outstanding basic |
| 233,566,850 |
| 192,500,000 |
|
|
The accompanying notes are an integral part of these financial statements.
F-2
MOBILE LADS CORP.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF STOCKHOLDERS EQUITY (DEFICIT)
(Unaudited)
| Common Stock | Additional Paid In |
|
| Accumulated Deficit |
|
| Total | ||||||
| Shares |
| Amount |
| Capital |
|
|
| ||||||
Inception at March 26, 2013 |
| - |
| $ | - |
| $ | - |
| $ | - |
| $ | - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock issued for cash |
| 192,500,000 |
|
| 1,925 |
|
| 1,575 |
|
| - |
|
| 3,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the year ended April 30, 2013 |
| - |
|
| - |
|
| - |
|
| (7,400) |
|
| (7,400) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at April 30, 2013 |
| 192,500,000 |
|
| 1,925 |
|
| 1,575 |
|
| (7,400) |
|
| (3,900) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock issued for cash |
| 41,066,850 |
|
| 411 |
|
| 21,989 |
|
| - |
|
| 22,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forgiveness of debt |
| - |
|
| - |
|
| 6,000 |
|
| - |
|
| 6,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the year ended April 30, 2014 |
| - |
|
| - |
|
| - |
|
| (24,500) |
|
| (24,500) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at April 30, 2014 |
| 233,566,850 |
|
| 2,336 |
|
| 29,564 |
|
| (31,900) |
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the period ended July 31, 2014 (unaudited) |
| - |
|
| - |
|
| - |
|
| (13,014) |
|
| (13,014) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at July 31, 2014 (unaudited) |
| 233,566,850 |
| $ | 2,336 |
| $ | 29,564 |
| $ | (44,914) |
| $ | (13,014) |
The accompanying notes are an integral part of these financial statements.
F-3
MOBILE LADS CORP.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
(Unaudited)
|
| For the Three Months Ended July 31, |
| For the period from March 26, 2013 (Inception) to July 31, 2014 | ||
2014 |
| 2013 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
Net loss | $ | (13,014) | $ | (2,571) | $ | (44,914) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
Increase / (decrease) in accrued expenses |
| - |
| (5,500) |
| - |
Increase in prepaid expenses |
| (1,286) |
| - |
| (1,286) |
CASH FLOWS USED IN OPERATING ACTIVITIES |
| (14,300) |
| (8,071) |
| (46,200) |
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
Proceeds from sale of common stock |
| - |
| - |
| 25,900 |
Loans from a director |
| - |
| 2,200 |
| 6,000 |
Advances from an officer |
| 14,300 |
| - |
| 14,300 |
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES |
| 14,300 |
| 2,200 |
| 46,200 |
|
|
|
|
|
|
|
NET CHANGE IN CASH |
| - |
| (5,871) |
| - |
Cash, beginning of period |
| - |
| 6,900 |
| - |
Cash, end of period | $ | - | $ | 1,029 | $ | - |
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION: |
|
|
|
|
|
|
Interest paid | $ | - | $ | - | $ | - |
Income taxes paid | $ | - | $ | - | $ | - |
NON-CASH INVESTING and FINANCING INFORMATION: |
|
|
|
|
|
|
Forgiveness of related party debt | $ | - | $ | - | $ | 6,000 |
The accompanying notes are an integral part of these financial statements.
F-4
MOBILE LADS CORP.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
July 31, 2014
(Unaudited)
NOTE 1 ORGANIZATION AND NATURE OF BUSINESS
Mobile Lads Corp. (the Company) was incorporated under the laws of the State of Nevada, U.S. on March 26, 2013. We are a development stage company and our business is focused on marketing products and services using short message service (SMS) technology. SMS technology involves sending marketing offers through cell phones that target specific audiences at the last minute.
The Company is in the development stage as defined under Accounting Codification Standard, Development Stage Entities (ASC-915). The Company has not generated any revenue to date and consequently its operations are subject to all risks inherent in the establishment of a new business enterprise. The Company has adopted an April 30 fiscal year end.
NOTE 2 GOING CONCERN
The accompanying financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has had no revenue as of July 31, 2014 and an accumulated deficit of $44,914. The Company currently has limited working capital, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time.
Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of managements efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.
NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Development Stage Company
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development stage companies. A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from.
Basis of Presentation
The accompanying interim unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, stockholders deficit and cash flows. It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The interim results for the three months ended July 31, 2014 are not necessarily indicative of the results for the full fiscal year.
Cash and Cash Equivalents
The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. There were no cash equivalents as of July 31, 2014 and April 30, 2014.
F-5
Fair Value of Financial Instruments
The Companys financial instruments consist of cash and cash equivalents and amounts due to shareholder. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.
ASC Topic 820, Fair Value Measurements and Disclosures, requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, Financial Instruments, defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest.
The three levels of valuation hierarchy are defined as follows:
·
Level 1. Observable inputs such as quoted prices in active markets;
·
Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;
·
Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Income Taxes
Accounting Standards Codification Topic No. 740 Income Taxes (ASC 740) requires the asset and liability method of accounting be used for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
In June 2006, the FASB interpreted its standard for accounting for uncertainty in income taxes, an interpretation of accounting for income taxes. This interpretation clarifies the accounting for uncertainty in income taxes recognized in an entitys financial statements in accordance the minimum recognition threshold and measurement attributable to a tax position taken on a tax return is required to be met before being recognized in the financial statements. The FASBs interpretation had no material impact on the Companys financial statements for the period ended July 31, 2014.
Use 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 and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Stock-Based Compensation
Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options.
Basic Income (Loss) Per Share
Basic income (loss) per share is calculated by dividing the Companys net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of July 31.2014 and April 31, 2014.
F-6
Recent Accounting Pronouncements
In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-10, Development Stage Entities. The amendments in this update remove the definition of a development stage entity from the Master Glossary of the ASC thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The amendments in this update are applied retrospectively. The adoption of ASU 2014-10 removed the development stage entity financial reporting requirements from the Company.
In July 2013, the FASB issued ASU No. 2013-11: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry forward, a Similar Tax Loss, or a Tax Credit Carry forward Exists. The new guidance requires that unrecognized tax benefits be presented on a net basis with the deferred tax assets for such carry forwards. This new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2013. We do not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations.
The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
NOTE 4 RELATED PARTY TRANSACTIONS
During the year ended April 30, 2013, the Companys former sole director loaned the company $3,800 for general operating expenses. During the year ended April 30, 2014, he loaned the Company an additional $2,200. The loans were unsecured, and non-interest bearing. In April 2014, this loan was forgiven and credited to additional paid in capital.
During the three months ended July 31, 2014, the CEO advanced the Company $14,300 to pay for legal and auditing fees. The advances are unsecured, non-interest bearing and due on demand.
NOTE 5 COMMON STOCK
The Company has 4,125,000,000, $0.00001 par value shares of common stock authorized.
On March 12, 2014, the Board of Directors of the Company as well as a majority of the Companys shareholders voted to effect a 55 for 1 forward split of the Companys common stock. The Company has filed a Certificate of Amendment with the Nevada Secretary of State with an effective date of March 31, 2014. All shares in these financial statements have been retroactively restated to reflect the forward split. Additionally, in connection with the forward split the par value of the common stock was changed from $0.001 to $0.00001.
During the year ended April 30, 2013, the Company issued 192,500,000 shares of common stock for cash proceeds of $3,500 for approximately $0.000018 per share.
During the year ended April 30, 2014, the Company issued 41,066,850 shares of common stock for cash proceeds of $22,400 for approximately $0.000545 per share.
There were 233,566,850 and 233,566,850 shares of common stock issued and outstanding as of July 31, 2014 and April 30, 2014, respectively.
F-7
NOTE 6 COMMITMENTS AND CONTINGENCIES
The Company neither owns nor leases any real or personal property. An officer has provided office services without charge. There is no obligation for the officer to continue this arrangement. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.
On July 21, 2014, the Company executed a Joint Venture and Reseller Agreement with Smart Mobile Rewards. The agreement covers the Companys suite of mobile authentication and payment products and will provide the Company with access to sell its products through Smart Mobile Rewards extensive network.
NOTE 7 SUBSEQUENT EVENTS
In accordance with SFAS 165 (ASC 855-10) the Company has performed an evaluation of subsequent events through September 15, 2014 and has determined that it does not have any material subsequent events to disclose in these financial statements.
F-8
ITEM 2: MANAGEMENTS DISCUSSION AND ANALYSIS and PLAN OF OPERATION
The following discussion of our financial condition and results of operations should be read in conjunction with the financial statements and related notes to the financial statements included elsewhere in this filing as well as with Managements Discussion and Analysis or Plan of Operations contained in the Companys Report on Form 10-K, for the year ended April 30, 2014, filed with the Securities and Exchange Commission.
Forward Looking Statements
Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.
Plan of Operations
Our business is advertising of products and services using SMS technology. We believe that traditional advertising has been undergoing a shift from being dominant; and mobile advertising is quickly becoming one of the most effective ways to reach target audiences anytime and anywhere.
We intend to offer the following services:
·
Mobile-friendly websites: A mobile optimized website is a website that is designed specifically for smartphones, not a desktop computer. This is important because the small screen is much different than a 17" screen. Mobile screen real estate is smaller and must be used much more strategically.
·
A mobile optimized website doesn't require that someone scroll left/right. It doesn't require that someone pinch and zoom to read text, either. On a mobile site, the navigation is built for efficiency, the images are optimized for quick loading and the content is minimized to be most effective. Additionally, mobile-only functionality includes tap-to-call, tap-to-email and tap for Google Maps functionality, that respectfully allows mobile site visitors to call, send an email or show business location on an integrated Google maps application with only one click, without need to punch numbers or letters one by one, making it much more efficient and useful for a mobile website visitor.
4
·
SMS text message marketing: Sending marketing offers through cellphones SMS (Short Message Service) that enable targeted marketing in the last minute. The Mobile Lads system relies on SMS technology with no real application needed in the mobile device. Only basic SMS support is required which is present in every mobile phone. From the users point of view the advertisement procedure starts when the user receives a Mobile Lads SMS ad with the advertised product, information and product identification code. The user then simply presents the product identification code at the register at the point of sale to receive mentioned discount or special offer.
·
QR (Quick Response) codes: A QR code (quick response code) is a type of 2D bar code that is used to provide easy access to information through a smartphone application that is designed to read that bar code working in conjunction with the phone's camera. The reader interprets the code, which typically contains a call to action such as an invitation to download a mobile application, a link to view a video or an SMS message inviting the viewer to respond to a poll. The phone's owner can choose to act upon the call to action or click cancel and ignore the invitation.
We are not involved in developing a web based management system for our operations. We intend to use third party applications for our needs. We signed a web based terms and services agreement with Twilio Inc., and would act as a reseller of Twilio Inc services, (SMS messaging services). Twilio Inc itself does not work with retail businesses. It works only with marketers/resellers, who buy their credits/SMS in bulk.
Results of Operations for the three months ended July 31, 2014 and 2013
We did not generate any revenues for the three months ended July 31, 2014 and 2013.
General and administrative expense increased $1,945 to $2,016 for the three months ended July 31, 2014 from $71 for the three months ended July 31, 2013. The increase in general and administrative expense is attributed to an increase in transfer agent fees.
Professional fees increased $8,498 to $10,998 for the three months ended July 31, 2014 from $2,500 for the three months ended July 31, 2013. The increase is a result of an increase in audit and legal fees.
Our net loss for the three months ended July 31, 2014 was $13,014 compared to $2,571 for the three months ended July 31, 2013.
Liquidity and Capital Resources
Cash Flows from Operating Activities
We have not generated positive cash flows from operating activities. For the three months ended July 31, 2014, net cash flows used in operating activities were $14,300 compared to $8,071 for the three months ended July 31, 2013.
Cash Flows from Investing Activities
We have not generated any cash flows from investing activities.
5
Cash Flows from Financing Activities
We have financed our operations primarily from either cash advances from officers and directors or the issuance of equity. For the three months ended July 31, 2014, cash flows from financing activities was $14,300. For the period from inception (March 26, 2013) to July 31, 2014, net cash provided by financing activities was $46,200.
We expect that working capital requirements will continue to be funded through a combination of loans and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.
Additional cash advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next three months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations. We will have to raise additional funds in the next twelve months in order to sustain and expand our operations. We currently do not have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of equity financing from the sale of our common stock. We have and will continue to seek to obtain short-term loans from our directors, although no future arrangement for additional loans has been made. We do not have any agreements with our directors concerning these loans. We do not have any arrangements in place for any future equity financing.
Off-Balance Sheet Arrangements
None
The accompanying financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has had no revenue as of July 31, 2014 and an accumulated deficit of $44,914. The Company currently has limited working capital, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not applicable.
ITEM 4. CONTROLS AND PROCEDURES
Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commissions rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuers management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of July 31, 2014. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Such officer also confirmed that there was no change in our internal control over financial reporting during the three-month period ended July 31, 2014 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.
ITEM 1A. RISK FACTORS
A smaller reporting company is not required to include this item.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. MINE SAFETY DISCLOSURES
None
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ITEM 6. EXHIBITS
Exhibit | Exhibit | |||||
Number | Description | |||||
31.1 | Certification of the Chief Executive Officer Pursuant to Rule 13a-14 or 15d-14 of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||
31.2 | Certification of the Chief Financial Officer Pursuant to Rule 13a-14 or 15d-14 of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||
32.1 | Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||
32.2 | Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||
EX-101.INS | XBRL Instance Document | |||||
EX-101.SCH | XBRL Taxonomy Extension Schema | |||||
EX-101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |||||
EX-101.LAB | XBRL Taxonomy Extension Label Linkbase | |||||
EX-101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |||||
EX-101.DEF | XBRL Taxonomy Extension Definition Linkbase |
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
| MOBILE LADS CORP. |
|
|
| By: /s/ Michael Anthony Paul |
Date: September 15, 2014 | Michael Anthony Paul |
| President, Chief Executive Officer, |
| Director |
|
|
Pursuant to the requirements of 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.
Signature | Title | Date |
|
|
|
/s/ Michael Anthony Paul | President, Chief Executive Officer, Director | September 15, 2014 |
Michael Anthony Paul |
| |
|
|
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/s/ Alpha Pang | Chief Financial Officer, Director, Secretary, Treasurer | September 15, 2014 |
Alpha Pang |
|
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