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EX-31.1 - EXHIBIT 31.1 - INTEGRATED VENTURES, INC.ex31_1apg.htm
EX-32.1 - EXHIBIT 32.1 - INTEGRATED VENTURES, INC.ex32_1apg.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 September 30, 2015


[   ] 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 333-174759


[emsf10q_093015apg001.jpg]

EMS FIND, INC.

(Exact Name of Registrant as Specified in Its Charter)


Nevada

 

42-1771342

(State or Other Jurisdiction of Incorporation or Organization)

 

 

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

73 Buck Road, Suite 2, Huntingdon Valley, PA

 

19006

(Address of principal executive offices)

 

(Zip Code)

 

 

 

(267)  538-4369

(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.  

[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 (§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 [   ]  No [X]


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

 

Large accelerated filer [   ]

Accelerated filer [   ]

Non-accelerated filer [   ]

Smaller reporting company [X]

(Do not check if a smaller reporting company)

 


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


The number of shares outstanding of the issuer's common stock, $0.001 par value per share, was 28,956,715 as of November 18, 2015.






EMS FIND, INC.


INDEX


 

Page

 

 

Part I.  Financial Information

4

 

 

Item 1.  Financial Statements.

4

 

 

Consolidated Balance Sheets as of September 30, 2015 (unaudited) and June 30, 2015

5

 

 

Consolidated Statements of Operations for the three months ended September 30, 2015 and 2014 (unaudited)

6

 

 

Consolidated Statements of Comprehensive Income (Loss) for the three ended September 30, 2015 and 2014 (unaudited)

7

 

 

Consolidated Statements of Cash Flows for the three months ended September 30, 2015 and 2014 (unaudited)

8

 

 

Notes to Unaudited Consolidated Financial Statements

9

 

 

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

14

 

 

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

16

 

 

Item 4. Controls and Procedures.

16

 

 

Part II.  Other Information

17

 

 

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

17

 

 

Item 6.  Exhibits.

17

 

 

Signatures

18

 

 



2



PART I. FINANCIAL INFORMATION


Item 1.  FINANCIAL STATEMENTS


Certain information and footnote disclosures required under accounting principles generally accepted in the United States of America have been condensed or omitted from the following consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. It is suggested that the following consolidated financial statements be read in conjunction with the year-end consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015.


The results of operations for the three months ended September 30, 2015 and 2014 are not necessarily indicative of the results for the entire fiscal year or for any other period.





EMS FIND, INC.


Financial Statements


September 30, 2015

(Unaudited)









Financial Statement Index


Balance Sheets

4


Statements of Operations

5


Statements of Cash Flows

6


Notes to the Financial Statements

7





3




EMS Find, Inc.

Consolidated Balance Sheets

As of September 30, 2015 and June 30, 2015

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

As of

 

 

As of

 

 

 

 

 

September 30,

 

 

June 30,

 

 

 

 

 

2015

 

 

2015

 

 

 

 

 

Unaudited

 

 

Audited

 

Current Assets

 

 

 

 

 

 

 

 

Cash

 

$

89,068

 

$

45,843

 

 

Accounts receivable

 

 

-

 

 

-

 

Total Current Assets

 

 

89,068

 

 

45,843

 

Other Assets

 

 

 

 

 

 

 

 

Fixed assets, net

 

 

1,306

 

 

1,353

 

 

Fixed assets held for sale, net

 

 

27,080

 

 

27,080

 

 

Pre-paid fees

 

 

32,083

 

 

-

 

 

Deposits

 

 

700

 

 

-

 

Other Assets

 

 

61,169

 

 

28,433

 

      TOTAL ASSETS

 

$

150,237

 

$

74,276

 

 

 

 

 

 

 

 

 

LIABILITIES & STOCKHOLDERS' DEFECIT

 

 

Short Term Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

19,267 

 

$

20,545 

 

 

Due to related party

 

 

50,000 

 

 

129,015 

 

 

Notes Payable

 

 

 

 

31,222 

 

Total Short Term Liabilities

 

 

69,267 

 

 

180,782 

 

      TOTAL LIABILITIES

 

$

69,267 

 

$

180,782 

 

Stockholders' Equity

 

 

 

 

 

 

 

 

Shares payable (120,000 common stock $0.001 par value)

30 

 

 

120 

 

 

Series A Preferred stock,  $0.001 par value, (20,000,000 shares

 

 

 

 

 

 

authorized 500,000 and 1,000,000 shares issued and

 

 

 

 

 

 

outstanding as of September 30, 2015 and June 30, 2015)

500 

 

 

1,000 

 

 

Common stock,  $0.001 par value, (100,000,000 shares authorized

 

 

 

 

 

 

28,831,735 and 28,364,535  shares issued and outstanding

 

 

 

 

 

 

as of  September, 2015 and June 30, 2015)

 

 

28,832 

 

 

28,365 

 

 

Additional paid in capital

 

 

416,186 

 

 

(6,817)

 

 

Retained earnings

 

 

(364,578)

 

 

(129,174)

 

 

 

 

 

 

 

 

 

 

Total Stockholders' Equity

 

 

80,970 

 

 

(106,506)

 

 

       TOTAL LIABILITIES &

 

 

 

 

 

 

 

 

             STOCKHOLDERS' EQUITY

 

 

150,237 

 

 

74,276 

 

 

 

 

 

 

 

 

 

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




4




EMS FIND, INC.

 Consolidated Statements of Operations

For The Three Months Ended September 30, 2015 and 2014

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

September 30,

 

 

 

 

2015

 

 

2014

 

 

 

 

Unaudited

 

 

Unaudited

 

Revenues

 

 

 

 

 

 

 

Gross sales

$

 

$

 

 

COGS

 

 

 

 

 

Gross profit

 

 

 

 

Costs and Expenses

 

 

 

 

 

 

 

Consulting fees

 

28,134 

 

 

105 

 

 

Professional fees

 

18,689 

 

 

 

 

Executive compensation

 

122,227 

 

 

 

 

Research & Development

 

16,088 

 

 

 

 

Payroll Expense

 

26,803 

 

 

 

 

General & administrative

 

19,971 

 

 

12,421 

 

 

Rent

 

3,200 

 

 

1,500 

 

 

Depreciation & amortization

 

47 

 

 

 

Total Expenses

 

235,159 

 

 

14,026 

 

 

 

 

 

 

 

 

 

Income (Loss)  From Operations

 

(235,159)

 

 

(14,026)

 

 

 

 

 

 

 

 

 

Other Income & Expenses

 

 

 

 

 

 

 

Other income

 

 

 

 

 

Interest expense

 

(243)

 

 

 

Total Other Income

 

(243)

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

 

Income from discontinued operations

 

 

 

26,970 

 

 

Loss on classification as held for sale

 

 

 

 

Total Discontinued Operations

 

 

 

26,970 

 

Net Income

 

(235,402)

 

 

12,944 

 

Net(Loss) Income

$

(235,402)

 

$

12,944 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Earnings (Loss) per share  Income from continuing operations

$

(0.01)

 

$

0.00 

 

 

Basic and Diluted Earnings (Loss) per share Net Income

 

(0.01)

 

 

0.00 

 

 

Basic and Diluted Earnings (Loss) per share Discontinued Operations

 

 

 

0.00 

 

 

Weighted average number of common shares outstanding

 

28,442,700 

 

 

28,334,535 

 

 

 

 

 

 

 

 

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



5







EMS FIND, INC.

Consolidated Statements of Cash Flows

For The Three Months Ended September 30, 2015 and September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

September 30,

 

 

 

 

2015

 

 

2014

 

 

 

 

Unaudited

 

 

(Unaudited)

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net income (Loss)

$

$

(235,402)

 

$

12,944 

 

    Depreciation & amortization expense

 

 

47 

 

 

3,511 

 

    Prepaid Expenses

 

 

(32,783)

 

 

 

    Accrued interest

 

 

 

 

 

    Shares payable

 

 

42,600 

 

 

 

    Stock issued for services

 

 

64,800 

 

 

 

    Change in accounts receivable

 

 

 

 

 

1,417 

 

    Change in accounts payable

 

 

(1,037)

 

 

 

    Change in payroll liabilities

 

 

 

 

 

     Net cash provided by operating activities

 

 

(161,775)

 

 

17,872 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

    Disposal of assets

 

 

 

 

 

 

    Fixed assets

 

$

 

$

 

     Net cash (used in) investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

     Proceeds from sale of common stock

 

 

55,000 

 

 

 

 

     Shares issued for notes

 

 

 

 

 

 

 

     Note Payable

 

 

150,000 

 

 

 

     Distribution

 

$

 

$

(18,787)

 

     Net cash (used in) financing activities

 

 

205,000 

 

 

(18,787)

 

 

 

 

 

 

 

 

 

    Net (decrease) in cash

 

 

43,225 

 

 

(915)

 

    Cash at beginning of year

 

 

45,843 

 

 

5,053 

 

    Cash at end of period

$

$

89,068 

 

$

4,138 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW

 

 

 

 

 

Shares issuance for notes

 

 

260,480 

 

 

 

 

Share issuance for consulting fees

 

 

 

 

 

NON-CASH ACTIVITIES

 

$

260,480 

 

$

 

 

 

 

 

 

 

 

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



6




EMS FIND, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS



NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Organization


EMS Find, Inc. formerly Lightcollar, Inc. (the Company) was incorporated on March 22, 2011, under the laws of the State of Nevada.  On March 20, 2015, the Company amended its articles of incorporation and changed its name from Lightcollar, Inc. to EMS Find, Inc.


On December 23, 2014 the “Company, has authorized a forward split (the “Forward Split”) of its issued and authorized common shares, whereby every one (1) old share of common stock was exchanged for Five (5) new shares of the Company's common stock.  As a result, the issued and outstanding shares of common stock will increased from Five Million Six Hundred Fifty Thousand (5,650,000) common shares prior to the Forward Split to Twenty Eight Million Two Hundred Fifty Thousand (28,250,000) common shares following the Forward Split.  Fractional shares will be rounded upward.


On March 10, 2015, the company, with the approval of a majority vote of its shareholders filed a Certificate of Designation establishing the designations, preferences, limitations and relative rights of the Company’s Series A Preferred Stock (the “Designation” and the “Series A Preferred Stock”).  The terms of the Certificate of Designation of the Series A Preferred Stock, which was filed with the State of Nevada on March 12, 2015, include the right to vote in aggregate, on all shareholder matters equal to 1,000 votes per share of Series A Preferred Stock, Series A Preferred Stock shares are not convertible into shares of our common stock.


Effective March 20, 2015, the Company, with the approval of its board of directors and its majority shareholders by written consent in lieu of a meeting, filed a Certificate of Amendment (the “Certificate of Amendment”) with the Secretary of State of Nevada.  As a result of the Certificate of Amendment, the Company, among other things, (i) changed its name to “EMS Find, Inc.” and (ii) changed its symbol to “EMSF”.


On March 23, 2015, the Company issued 50,000 shares of Series A Preferred Stock in consideration for services on the Company’s Board of Directors.


On March 31, 2015, the Company issued 450,000 shares of Series A Preferred Stock in consideration for services on the Company’s Board of Directors.


On March 31, 2015, the Company signed the share exchange agreement with EMS Factory, Inc., a company incorporated under the laws of the State of Pennsylvania (“EMS”), and the shareholder of EMS (the “Selling Shareholder”) pursuant to a share exchange agreement by and among the Company, EMS and the Selling Shareholder.  The Company will acquired 100% of the issued and outstanding securities of EMS in exchange for the issuance of 10,000,000 shares of the Company’s restricted Common Stock, par value $0.001 per share and 500,000 shares of the Company’s Series A Preferred Stock, par value $0.001.  The Company also has an agreement with an investor to fund $300,000 over the next one hundred and twenty days, to support the continued development and commercialization of EMS’ technology, in the following manner: 

 

As a result of the Agreement the Selling Shareholder acquired up to 49% of the voting rights of Company’s currently issued and outstanding shares of common stock.  Upon completion of the agreement, EMS became a wholly-owned subsidiary and the Company acquired the business and operations of EMS.  Further, on the Closing date of the Agreement, Steve Rubakh, was appointed the President, Chief Executive Officer, Chief Financial Officer, Treasurer, Secretary and a Director of the Company, and Mr. Matveev Anton resigned all of his positions with the Company.


For accounting purposes, the acquisition of EMS by EMS Find, Inc. has been recorded as a reverse merger of a public company, with the exception that no goodwill is generated, and followed up with a recapitalization of EMS based on the factors demonstrating that EMS represents the accounting acquirer.  Consequently, the historical



7



financial information in the accompanying consolidated financial statements is that of EMS.


Basis of Presentation


The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, EMS Factory, Inc.  The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).  All intercompany balances and transactions have been eliminated.  EMS Find, Inc. and EMS Factory, Inc. recently changed their year ends to be June 30.  The consolidated balance sheet is September 30, 2015 for EMS Find, Inc. and EMS Factory, Inc.  The consolidated statements of operations and statements of cash flows are for EMS Find, Inc. and EMS Factory, Inc. for the 3 month period ending September 30, 2015.  For accounting purposes and due to the accounting for the reverse merger, the Company is using the accounting year end of EMS Factory, Inc. for the presentation in this filing.


Nature of Business


The Company transitioned its operations from acting as a licensed ambulance provider to providing medical transportation information and acting as an intermediary coordinating dispatch services for providers, patients and medical transport companies.   The Company is designing, developing, marketing, and operating software assets mainly in on-demand mobile healthcare sector.


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 of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Because of the use of estimates inherent in the financial reporting process, actual results could differ significantly from those estimates.


Cash and Cash Equivalents


The Company maintains cash balances in non-interest-bearing accounts that currently do not exceed federally insured limits.  For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents.  The Company had cash balances of $89,068 and $45,843 as of September, 30, 2015 and June, 30, 2015 respectively.

 

Revenue Recognition


Our revenue is derived from the service revenue from Ambulance transportation services


The Company's revenue recognition policy is in accordance with the requirements of Staff Accounting Bulletin ("SAB") No. 104, Revenue Recognition ("SAB 104"), and other applicable revenue recognition guidance under US GAAP.  Sales revenue is recognized for our retail and wholesale customers when: (i) persuasive evidence of a sales arrangement exists, (ii) the sales terms are fixed or determinable, (iii) title and risk of loss have transferred, and (iv) collectability is reasonably assured — generally when products are shipped to the customer and services are rendered, except in situations in which title passes upon receipt of the products by the customer.  In this case, revenues are recognized upon services rendered.

 

Income Taxes


The Company recognizes the tax effects of transactions in the year in which such transactions enter into the determination of net income regardless of when reported for tax purposes.  Deferred taxes are provided in the financial statements under ASC 740-10-65-1 to give effect to the temporary differences which may arise from differences in the bases of fixed assets, depreciation methods  and allowances based on the income taxes expected to be payable in future years.  Minimal development stage deferred tax assets arising as a result of net operating loss carry-forwards have been offset completely by a valuation allowance due to the uncertainty of their utilization in future periods.  Operating loss carry-forwards through September 30, 2015, of approximately $364,578 will begin to



8



expire in 2032.  Accordingly, deferred tax assets of approximately $127,602 were offset by the valuation allowance based on an estimated tax rate of 35%.  

 

The Company has no tax positions at September 30, 2015 and June 30, 2015, for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.


The Company recognizes interest accrued relative to unrecognized tax benefits in interest expense and penalties in operating expense.  During the period from March 22, 2011, (inception) to September 30, 2015, the Company recognized no income tax related interest and penalties.  The Company had no accruals for income tax related interest and penalties at September 30, 2015.


Property and Equipment

 

Property and equipment consists of Ambulances and medical equipment and are stated at cost.  Ambulance and Medical equipment is depreciated using the straight-line method over the estimated service life of five years.  Maintenance and repairs are expensed as incurred and improvements are capitalized.  Gains or losses on the disposition of property and equipment are recorded upon disposal.

 

Impairment of Long-Lived Assets


In accordance with Accounting Standards Codification (“ASC”) Topic 360, “Accounting for the Impairment or Disposal of Long-Lived Assets,” long-lived assets such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable.  Recoverability of assets groups to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group.  If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of an asset group exceeds fair value of the asset group.


Net Income Per Share


Basic net income per share is computed by dividing net income by the weighted-average number of outstanding shares of common stock during the period.


Recent Pronouncements


On November 2014, The Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2014-16—Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force).  The amendments in this Update do not change the current criteria in GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required.  That is, an entity will continue to evaluate whether the economic characteristics and risks of the embedded derivative feature are clearly and closely related to those of the host contract, among other relevant criteria.  The amendments clarify how current GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share.  The effects of initially adopting the amendments in this Update should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendments are effective.  Retrospective application is permitted to all relevant prior periods.

 

On November 2014, The Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2014-17—Business Combinations (Topic 805): Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force).  The amendments in this Update provide an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity.  The amendments in this Update are effective on November 18, 2014.  After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event.  However, if the financial statements for the period in which the most recent change-in-control event occurred already have been issued or made available to be issued, the application of this guidance



9



would be a change in accounting principle.


In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern.  The new standard requires management of public and private companies to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, disclose that fact.  Management will also be required to evaluate and disclose whether its plans alleviate that doubt.  The standard requires management to evaluate, for each reporting period, whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued.  The new standard is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016.  Early adoption is permitted.  We do not expect the adoption of the ASU to have a significant impact on our consolidated financial statements.


NOTE 2 – PROPERTY AND EQUIPMENT


At September 30, 2015 and June 30, 2015, equipment consisted of the following:


 

 

September 30,

 

 

June 30,

 

 

 

2015

 

 

2015

 

Furniture and Equipment

 

1,400 

 

 

 $

1,400 

 

Less: Accumulated depreciation

 

 

(94)

 

 

 

(47)

 

Total equipment, net

 

$

1,306 

 

 

$

1,353 

 



Depreciation and amortization expense for the period ended September 30, 2015 and June 30, 2015 was $47 and $47 respectively


Assets held for Sale

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

June  30,

 

 

 

2015

 

 

2015

 

Assets held for sale

 

47,555 

 

 

 $

47,555 

 

Less: Accumulated depreciation

 

 

(20,475)

 

 

 

(20,475)

 

Total equipment, net

 

$

27,080 

 

 

$

27,080 

 

 


Depreciation and amortization expense for the three months ended September 30, 2015 and June 30, 2015 was $ 0 and $3,512 respectively.  After the merger in March 2015 the Company discontinued all of its ambulance services. The Company wrote down $8,200 as of June 30, 2015 for its assets held for sale and took a loss of $13,097 on a sale of three of its vehicles it used for its medical transportation business.


NOTE 3 – RELATED PARTY TRANSACTIONS


The Company paid for health insurance and various expenses on Mr. Rubakh’s behalf of $4,283 and $17,513 during the Year Ended September 30, 2015 and June 30, 2015 respectively, which is reflected as Executive Compensation in the statement of operations.


In April 2015 the Mr. Rubakh entered a month to month lease agreement for an office space for $1,250 per month owned by a relative.  The lease was terminated on August 30, 2015


On August 6, 2015, EMS Find, Inc. issued 150,000 shares of common stock as part of Mr. Rubakh’s compensation package.


On September 15, 2015, EMS Find, Inc. issued 30,000 shares of common stock as part of Mr. Rubakh’s compensation package


On July 22, 2015 Shang Fei resigned from the Company as a board member and surrendered his 500,000 shares of Series A Preferred Stock which the company had issued to him in March 2015.  Mr. Shang Fei also has provided the



10



Company with 260,000 of capital of which 210,000 and a prior loan for expenses of $19,095 was converted into common stock.


NOTE 4 - NOTES PAYABLE


On March 23, 2015 the Company issued a note for $30,400 with 10% interest per annum, as of June 30, 2015 the note has accrued interest of $822.  The note becomes due on October 15, 2015.   On, July, 30 2015, the Company issued 26,885 to satisfy this debt.


As of  September 30, 2015, the Company has received $260,000 of the $300,000 committed funding and has issued 194,444 shares of common stock for $210,000 of this debt.


NOTE 5 – PREFERRED STOCK

 

On March 10, 2015, the company, with the approval of a majority vote of its shareholders approved the filing of a Certificate of Designation establishing the designations, preferences, limitations and relative rights of the Company’s Series A Preferred Stock (the “Designation” and the “Series A Preferred Stock”).  The terms of the Certificate of Designation of the Series A Preferred Stock, which was filed with the State of Nevada on March 12, 2015, include the right to vote in aggregate, on all shareholder matters equal to 1,000 votes per share of Series A Preferred Stock and each Series A Preferred Stock share are not convertible into shares of our common stock.


The Company has 20,000,000 shares of Series A Preferred Stock authorized.


On March 23, 2015, the Company issued 50,000 shares of Series A Preferred Stock in consideration for services on the Company’s Board of Directors.


On March 31, 2015, the Company issued 450,000 shares of Series A Preferred Stock in consideration for services on the Company’s Board of Directors.


On March 31, 2015, the Company issued 500,000 shares of Series A Preferred Stock as part of the share exchange agreement with EMS Factory Inc.


NOTE 6 – COMMON STOCK


On July 22, 2015, EMS Find, Inc. issued 48,245 shares of common stock for a consulting contract with RB Milestone, Inc. for $55,000.


On July 22, 2015 Shang Fei resigned from the Company as a board member and surrendered his 500,000 shares of Series A Preferred Stock which the company had issued to him in March 2015.


On July 30, 2015, EMS Find, Inc. issued 26,885 shares of common stock for debt converted of $31,465.  The balance of $115 was forgiven.


On August 6, 2015, EMS Find, Inc. issued 17,606 shares of common stock for debt converted of $19,015


On August 6, 2015, EMS Find, Inc. issued 194,444 shares of common stock for debt converted of $210,000


On August 6, 2015, EMS Find, Inc. issued 150,000 shares of common stock as part of Mr. Rubakh’s compensation package.


On September 15, 2015, EMS Find, Inc. issued 30,000 shares of common stock as part of Mr. Rubakh’s compensation package


NOTE 7 – DISCONTINUED OPERATIONS


As of the second quarter of 2015 the subsidiary EMS Factory, Inc. discontinued operations which is reflected in the consolidated statements of income and consolidated statements of cash flows. Assets classified as held for sale are



11



reported in the consolidated balance sheet. The Company will sell the remainder if the fixed assets and currently has no cost associated to the assets.  The Company reported a loss of $0 and loss of $ 26,970 during the period ending September 30, 2015 and September 30, 2014 respectively.


Reconciliation of the Items Constituting Profit and (Loss) from Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

September 30,

 

 

 

 

2015

 

 

2014

Revenues

 

 

$

-

 

$

70,871

Cost of sales

 

 

-

 

 

40,389

General and administrative

 

-

 

 

-

Depreciation & Amortization

 

-

 

 

3,512

Asset write down

 

 

-

 

 

-

Loss on disposal of Assets

 

-

 

 

-

 

 

 

$

-

 

$

26,970



NOTE 8 – GOING CONCERN


The accompanying financial statements have been prepared assuming that the company will continue as a going concern. As discussed in the notes to the financial statements, the Company has no established source of revenue. This raises substantial doubt about the Company's ability to continue as a going concern. Without realization of additional capital, it would be unlikely for the Company to continue as a going concern. The financial statements do not include any adjustments that might result from this uncertainty.


The Company's activities to date have been supported by ambulance services which the Company is no longer providing and developing new revenue streams.  It has sustained losses of $364,578 as of September 30, 2015. Management continues to seek funding from its shareholders and other qualified investors to pursue its business plan. In the alternative, the Company may be amenable to a sale, merger or other acquisition in the event such transaction is deemed by management to be in the best interests of the shareholders.


NOTE 9 – SUBSEQUENT EVENTS

 

On October 22, 2015, the Company entered into a Securities Purchase Agreement (“Purchase Agreement”), dated as of October 22, 2015, with  LG Capital Funding, LLC (“LG”), pursuant to which the Company sold LG a convertible note in the principal amount of $125,000 (the first of four such Convertible Notes each in the principal amount of $125,000 provided for under the Purchase Agreement), bearing interest at the rate of 8% per annum (the “Convertible Note”).  Each of the Convertible Notes issuable under the Purchase Agreement provides for a 15% OID, such that the purchase price for each Convertible Note is $106,250, and at each closing LG is entitled to be paid $6,000 for legal and other expenses. The Convertible Note provides LG the right to convert the outstanding balance (including accrued and unpaid interest) of such Convertible Note into shares of the Company’s common stock at a price ("Conversion Price") for each share of common stock equal to 80% of the lowest trading price of the common stock as reported on the National Quotations Bureau for the OTCQB exchange on which the Company’s shares are traded or any exchange upon which the common stock may be traded in the future, for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company or its transfer agent.  The Convertible Note is payable, along with interest thereon, on October 22, 2016


On October 28, 2015, our newly-formed Delaware subsidiary, Viva Entertainment Group, Inc. (“Viva Entertainment” or the “Subsidiary”) entered into an employment agreement (“Agreement”) expiring December 31, 2018 with Johnny Falcones, for Mr. Falcones to act as the President and Chief Executive Officer of Viva Entertainment and to manage the development and marketing of its over the top (IPTV/OTT ) application for connected tvs, desktop computers, tablets, smart phones. The IPTV/OTT streamlining platform is designed to be used at homes, offices or during travel, where users may pay and watch what entertainment they choose based on a subscription or on a pay per view basis.



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As compensation for services to be rendered under the Agreement in calendar 2016 (January 1 through December 31, 2016), in addition to the compensation specified below, Mr. Falcones will receive a bonus of a five-year common stock purchase warrant to purchase 3,000,000 shares of common stock of the Company at an exercise price of $.74 per share and three-year warrants to purchase up to Five (5%) Percent of the restricted common stock of Viva Entertainment, at an exercise price of Fifty ($0.50) Cents per share, which are exercisable in the event that Viva Entertainment is spun out of the Company.  For calendar 2016, Mr. Falcones will receive 500,000 shares of common stock of the Company for his services as a director of the Company in that year, and will receive an additional 375,000 shares of restricted common stock of the Company, on a monthly basis, starting in 2016 month 2 (February, 2016), for a period of four months, ending at 2016 month 5 (May), for an aggregate total of 1,500,000 shares of restricted common stock of the Company.  


On October 28, 2015, the company issued a three-year common stock purchase warrants granting Mr. Falcones, and the Company’s CEO Steve Rubakh, each the right to purchase 5% of the equity of the Viva Entertainment, exercisable in the event, and only in the event, that the Subsidiary is spun off to stockholders of the Company.



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Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


The following discussion of our consolidated financial condition and results of operations should be read in conjunction with the consolidated financial statements and notes thereto and the other financial information included elsewhere in this report.


Certain statements contained in this report, including, without limitation, statements containing the words "believes," "anticipates," "expects" and words of similar import, constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including our ability to create, sustain, manage or forecast our growth; our ability to attract and retain key personnel; changes in our business strategy or development plans; competition; business disruptions; adverse publicity; and international, national and local general economic and market conditions.

 

GENERAL


We were incorporated in the State of Nevada on March 22, 2013 under the name Lightcollar, Inc.  On March 22, 2015, we changed our name to EMS Find, Inc.  Effective March 31, 2015, we entered into a Share Exchange Agreement with the sole shareholder of EMS Factory, Inc., a Pennsylvania corporation (“EMS Factory”), and following the closing under the Share Exchange Agreement, EMS Factory became a wholly-owned subsidiary of the Company, with the former stockholder of EMS Factory owning approximately 35% of the outstanding shares of common stock of the Combined Company.  


The Company develops and markets B2B & B2C on-demand mobile platform, designed to connect health care providers and patients to a network of medical transport companies throughout the United States and Canada on the internet and through mobile applications. Our iOS application has been approved by Apple and currently available for download at the App Store. The platform enables users (hospitals, medical offices, dialysis centers, nursing homes, home care agencies and other medical providers) and the public to schedule medical transportation in a timely and efficient way based on the type of medical transportation which best fits each patient's needs.  The app will be available in iOS, android and desktop versions and will allow users to connect in real time to local and nearby pre-screened medical transportation companies wherever the medical transports are needed and that fit the medical, logistical and financial criteria for the user.  


On October 28, 2015, our newly-formed Delaware subsidiary, Viva Entertainment Group, Inc. (“Viva Entertainment”) entered into an employment agreement expiring December 31, 2018 with Johnny Falcones, for Mr. Falcones to act as the President and Chief Executive Officer of Viva Entertainment and to manage the development and marketing of its over the top (IPTV/OTT) application for connected tv’s, desktop computers, tablets, and smart phones. The IPTV/OTT streamlining platform is designed to be used at homes, offices or during travel, where users may pay and watch what entertainment they choose based on a subscription or on a pay per view basis.

 

RESULTS OF OPERATIONS


THREE MONTHS ENDED SEPTEMBER 30, 2015 COMPARED TO THE THREE MONTHS ENDED SEPTEMBER 30, 2014

 

During the three months ended September 30, 2015, we incurred a net loss of $235,402, as compared to net income of $12,944 for the three months ended September 30, 2014.  The increase in the net loss for the three months ended September 30, 2015 compared to the three months ended September 30, 2014 is primarily due to no revenues being generated since the Company’s change in business plan and an increase in general and administrative expenses to support the Company being on the bulletin board of $17,538 in 2014, compared to $235,159 in 2015.


LIQUIDITY AND CAPITAL REQUIREMENTS


At September 30, 2015, we had a working capital surplus of $19,801 compared with a working capital deficit of $134,939 at June 30, 2015.



14



 

At September 30, 2015, we had total assets of $150,237 compared to total assets of $74,276 at June 30, 2015. Net cash used in operating activities in the three months ended September 30, 2015 was $161,775 as compared with net cash provided by in operating activities of $17,872 in 2014; and net cash generated from investing activities was $-0- in 2014 and 2015.  Net cash generated (used) by financing activities was $205,000 in the three months ended September 30, 2015, as compared with ($18,787) in 2014.


As of the date of this report, we have not generated any revenues from sales of our application for the B2B & B2C on-demand mobile platform.  As a result, we have recently generated operating losses and expect to incur additional losses and negative operating cash flows for the near-term future as we attempt to expand our infrastructure and development activities.


We are a development stage company and are developing and commencing to market our products and services. The diversity of our products, the competitive healthcare and entertainment industries, make it difficult for us to project our near-term results of operations. These conditions could further impact our business and have an adverse effect on our financial position, results of operations and/or cash flows.


Estimated 2015 Capital Requirements


We estimate our capital requirements over the next twelve months for the development and marketing of our EMS on demand mobile platform app and the over the top (IPTV/OTT) content streaming application of our Viva Entertainment subsidiary to be $1,000,000 to $3,000,000.


We have obtained working capital through a convertible note financing effective on October 22, 2015, on which date the Company entered into a Securities Purchase Agreement, dated as of October 22, 2015, with LG Capital Funding, LLC (“LG”), for the issuance to LG of a convertible note in the principal amount of $125,000 (the first of four such notes each in the principal amount of $125,000 provided for under the agreement), bearing interest at the rate of 8% per annum.  Each of the convertible notes issuable under the agreement provides for a 15% OID, such that the purchase price for each note is $106,250, and at each closing LG is entitled to be paid $6,000 for legal and other expenses. The note provides LG the right to convert the outstanding balance (including accrued and unpaid interest) of such note into shares of the Company’s common stock at a price for each share of common stock equal to 80% of the lowest reported trading price of the common stock for a specified period, and is payable, along with interest thereon, on October 22, 2016.


Going Concern Uncertainties


As of the date of this report, there is doubt regarding our ability to continue as a going concern as we have not generated sufficient cash flow to fund our business operations.  Our future success and viability, therefore, are dependent upon our ability to generate capital financing.  The failure to generate sufficient revenues or raise additional capital may have a material and adverse effect upon the Company and our shareholders.


USE OF ESTIMATES

 

The preparation of the financial statements requires the Company to make estimates and judgments that affect the reported amount of assets, liabilities, and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to oil and gas properties, intangible assets, income taxes and contingencies and litigation. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. In the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included in these financial statements. Certain amounts for prior periods have been reclassified to conform to the current presentation.


Management believes that it is reasonably possible that the following material estimates affecting the financial statements could happen in the coming two years:




15



NEW FINANCIAL ACCOUNTING STANDARDS


For a summary of new financial accounting standards applicable to the Company, please refer to the notes to the financial statements set forth in our Annual Report on Form 10-K for the year ended June 30, 2015, filed with the SEC on September 29, 2015.

 

Critical Accounting Policies and Estimates

 

The Securities and Exchange Commission recently issued “Financial Reporting Release No. 60 Cautionary Advice About Critical Accounting Policies” (“FRR 60”), suggesting companies provide additional disclosures, discussion and commentary on their accounting policies considered most critical to its business and financial reporting requirements. FRR 60 considers an accounting policy to be critical if it is important to the Company’s financial condition and results of operations, and requires significant judgment and estimates on the part of management in the application of the policy.


The Company accounts for stock-based compensation to non-employees under ASC 718, "Compensation-Stock Compensation" ("ASC 718").  The compensation cost of the awards is based on the grant date fair-value of these awards and recognized over the requisite service period, which is typically the vesting period.  The Company uses the Black-Scholes Option Pricing Model to determine the fair-value of stock options issued for compensation.

 

The Company accounts for non-employee share-based awards based upon ASC 505-50, “Equity-Based Payments to Non-Employees.”  ASC 505-50 requires the costs of goods and services received in exchange for an award of equity instruments to be recognized using the fair value of the goods and services or the fair value of the equity award, whichever is more reliably measurable. The fair value of the equity award is determined on the measurement date, which is the earlier of the date that a performance commitment is reached or the date that performance is complete.  Generally, our awards do not entail performance commitments.  When an award vests over time such that performance occurs over multiple reporting periods, we estimate the fair value of the award as of the end of each reporting period and recognize an appropriate portion of the cost based on the fair value on that date.  When the award vests, we adjust the cost previously recognized so that the cost ultimately recognized is equivalent to the fair value on the date the performance is complete.


Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

Not applicable to smaller reporting companies.


Item 4.  CONTROLS AND PROCEDURES


Evaluation of Controls and Procedures


We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Securities Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our chief executive and financial officer, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, as ours are designed to do, and management necessarily was required to apply its judgment in evaluating the cost- benefit relationship of possible controls and procedures.


As of September 30, 2015, an evaluation was performed under the supervision and with the participation of our management, including our Chief Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation, our Chief Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were not effective.

 

Changes in Internal Controls

 

There have been no changes in the Company's internal controls over financial reporting that occurred during the Company's last fiscal quarter to which this report relates that have materially affected, or are reasonably likely to



16



materially affect, the Company's internal control over financial reporting.


Limitations on the Effectiveness of Controls

 

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. The Company's disclosure controls and procedures are designed to provide reasonable assurance of achieving its objectives. The Company's chief executive officer and principal financial officer concluded that the Company's disclosure controls and procedures are effective at that reasonable assurance level.


PART II—OTHER INFORMATION

 

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


The following table sets forth the sales of unregistered securities since the Company’s last report filed under this item.


Date

Title and Amount(1)

Purchaser

Principal

Underwriter

Total Offering Price/Underwriting Discounts

October 28, 2015

Common Stock Purchase Warrant, expiring October 28, 2020, to purchase 3,000,000 shares of common stock at an exercise price of $.74 per share.

Chief Executive Officer of the Company.

NA

$-0-/NA

October 28, 2015

Common Stock Purchase Warrant, expiring October 28, 2020, to purchase 3,000,000 shares of common stock at an exercise price of $.74 per share.

President of Company’s Viva Entertainment subsidiary.

NA

$-0-/NA



ITEM 6.  Exhibits.


31.1

Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

 

 

32.1

Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**

* Filed herewith

** Furnished herewith


Copies of the following documents are included as exhibits to this report pursuant to Item 601 of Regulation S-K.


SEC Ref. No.

Title of Document

101.INS

XBRL Instance Document

101.SCH

XBRL Taxonomy Extension Schema Document

101.CAL

XBRL Taxonomy Calculation Linkbase Document

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

XBRL Taxonomy Label Linkbase Document

101.PRE

XBRL Taxonomy Presentation Linkbase Document

 

The XBRL related information in Exhibits 101 to this Quarterly Report on Form 10-Q shall not be deemed “filed” or a part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, and is not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of those sections.



17




SIGNATURES

 

In accordance with the requirements of the Exchange Act, the Company has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


 

EMS FIND, INC.

 

 

Dated: November 19, 2015

BY:

/s/ Steve Rubakh

 

 

 

Steve Rubakh

 

 

President and Chief Executive Officer, and

Principal Financial Officer




18



EXHIBIT INDEX


31.1

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

 

 

32.1

Certification of Chief Executive Officer 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.

 

SEC Ref. No.

Title of Document

101.INS

XBRL Instance Document

101.SCH

XBRL Taxonomy Extension Schema Document

101.CAL

XBRL Taxonomy Calculation Linkbase Document

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

XBRL Taxonomy Label Linkbase Document

101.PRE

XBRL Taxonomy Presentation Linkbase Document




19