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		For the Three Months Ended								For the Nine Months Ended
		September 30,								September 30,
		2015				2014				2015				2014
Revenue		$	22,327			$	5,700			$	29,827			$	18,075
			22,327				5,700				29,827				18,075
Operating expenses
General and administrative			21,906				6,466				81,030				49,567
Total operating expenses			21,906				6,466				81,030				49,567
Profit (Loss) from operations			421				(766	)			(51,203	)			(31,492	)
Other income (expense)
Penalty on notes payable			-				16,250				-				16,250
Amortization of note discoun			-				-				-				13,962
Change in derivative liability			-				(26,591	)			15				-
Loss on extinguishement			-				-				116,687				-
Interest expense			556				1,040				1,560				12,552
Total other (income) expense			556				(9,301	)			118,262				42,764
Loss for the period		$	(135	)		$	(8,535	)		$	(169,465	)		$	(74,256	)
Net loss per common share - basic and diluted		#DIV/0!				$	(0.00	)		$	(0.00	)		$	(0.00	)
Weighted average common shares outstanding -
basic and diluted			50,079,156				26,423,152				46,546,536				25,797,353

 

See accompanying notes to unaudited condensed financial statements

 

 

 

 

 

 

 

INDIA ECOMMERCE CORPORATION

Condensed Statements of Cash Fows

(Unaudited)

 

The following discussion and analysis of our financial condition and plan of operations should be read in conjunction with our unaudited interim financial statements and related notes appearing elsewhere in this Quarterly Report.  Various statements have been made in this Quarterly Report on Form 10-Q that may constitute "forward-looking statements".  Forward-looking statements may also be made in our other reports filed with or furnished to the United States Securities and Exchange Commission (the "SEC") and in other documents.  In addition, through our management we may make oral forward-looking statements.

Forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from such statements.  The words "believe," "expect," "anticipate," "optimistic," "intend," "plan," "aim," "will," "may," "should," "could," "would," "likely" and similar expressions are intended to identify forward-looking statements.  These statements are not guarantees of future performance, and therefore, you should not put undue reliance upon them.  Some of the statements that are forward-looking include: our ability to successfully implement our business plan; our estimates of revenues and of other expenses associated with our operations; and our ability to generate sufficient cash flows and maintain adequate sources of liquidity to finance our ongoing operations and capital expenditures.  We undertake no obligation to update or revise any forward-looking statements.

History and Overview

India Ecommerce Corporation ("we," "our," "us," or "the Company") was incorporated on January 19, 2011 under the laws of the State of Nevada.

 Plan of Operations

We are in the business of developing, promoting distribution, and managing television networks, television productions and ecommerce websites/mobile applications, targeting a wide-ranging marketplace in the United States and in India in both the consumer and business marketplace. Our goal is to push our television and online services into the marketplace in a quick and efficient manner to capture first mover advantages, and to acquire a user/viewer/subscriber base from which we can build our proprietary ecommerce solutions.   

Through a partnership with Jeffrey Martin Global Media, LLC, a TV production and management company, India Ecommerce Corporation began operating under the brand name "uknowme," for television operations. The Company will continue to grow its Television business under this brand.

Nyooz and Hrelate

 The Company is repositioning its website properties NyoozFlix.com and HRelate.com to eventually focus on television content development to accompany these sites rather than continue technical and day-to-day management of the websites. This will allow the Company to focus more on ecommerce opportunities. This repositioning will be completed in Q4.

Zootout

Our partnership with Zootout continued in Q3. Zootout.com is an up and coming website in India focused on events as a location-based directory in India. We will continue to aide Zootout with their technologies and functionality. In Q3, Zootout launched new technologies to improve real-time communications between businesses and the public.

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All Company work on ePerty.com has stopped due to continued technical issues and lack of audience. This website will no longer be developed and operated by India Ecommerce Corporation.

Television

 We signed a contract to jointly manage television operations with Jeffrey Martin Global Media, LLC. This operation launched in the United States, and after technical delays in Q2 and Q3, is expected to produce revenues towards the middle of Q4. The joint venture is doing business as "uknowme." In following quarters, we will expand our reach to other television markets in the United States.

 Third Party Marketing

 Through partnerships, we will be marketing third party products and services both on television and online. We launched this in the second quarter of 2015 and revenues started in Q3 for StealthCard, which was sold on Amazon.com. Sales volumes for the StealthCard have steadily increased month-to-month. The Company is evaluating adding other such product lines.

Research and Development

The core of our business model is to develop and ecommerce-related websites and television content. Websites and mobile applications need continuous attention and refinement. We plan to diversify our service offerings and develop mobile applications for each of our website properties.

Television also requires development. Our company will continue to raise capital to fund television property development, and expand into original content production, as well as advertisement production.  

Intellectual Property

We have no patents or other protection for its intellectual property, and will rely on copyrights, trademarks, and corporate secrecy for protection for the foreseeable future.

 Competition

 The ecommerce market is highly competitive. It includes increasing competition from established companies who are expanding their production and marketing of performance products, as well as from frequent new entrants to the market. We will initially rely on the unique features and applications of our product to gain entrance to the marketplace.

 

Employees

We want to maintain a small staff on our payroll so that we can be nimble. To accomplish this goal, we will employ contract employees for our initial projects and hire the best performing of these employees going forward. This allows us to avoid mistakes in filling up our human resource roster with underperforming employees.

We have identified top-level advertising salespeople in both the United States and in India that we can add to our team upon receiving funding. We view this as very important to our overall strategy. 

Recruiting top level personnel will be aided by share based compensation tied to overall performance. 

 

Executive cash compensation will be minimal due to their equity stakes with our Company. Key executive operations, such as Finance and Human Resources will be outsourced until a full time presence is necessary. 

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On January 31, 2015, Rohit Gangwal, resigned from his position as a Director and Officer for the Company. This was a planned departure, and a planned new Director announcement in Q3 has been delayed until the candidate fulfills previous contractual commitments.

Subsidiaries

We do not currently have any subsidiaries.

Results of Operations

We are in the business of developing, promoting distribution, and managing television networks, television productions and ecommerce websites/mobile applications, targeting a wide-ranging marketplace in the United States and in India in both the consumer and business marketplace.  The following discussion of the financial condition and results of operations should be read in conjunction with the unaudited financial statements included herewith. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future.

 

Three and nine months ended September 30, 2015 and 2014

We are in our infancy stage and have generated minimal revenue from our core business model.  However, we have earned revenue from providing internet and web consulting services during the three and nine months ended September 30, 2015. We earned $22,237 of revenue compared to $5,700 during the three months ended September 30, 2015 and the same period in 2014, and $29,827 compared to $18,075 for the nine months ended September 30, 2015 and 2014. The increase in revenue was due to the completion of the contract that had previously being disclosed as a customer deposit.  Our total expenses during those periods were general and administrative expense of $21,906 as compared to $6,466 for the six months ended September 30, 2015 and 2014, respectively; including depreciation expense of $431 in each of the periods; $556 interest expense for the three months ended September 30, 2015 as compared to $1,040 for the same period in 2014.  Our general and administrative expenses were $81,030 compared to $49,567 including depreciation expense of $1293 in each nine month period plus interest charges of $1,560 compared to $12,552 during the nine months ended September 30 2015 and 2014, respectively. We also incurred non-cash expenses of $116,702 with regard to the repayment of a convertible loan. General and administrative overhead increased due to the cost of developing and implementing our business plan and the cost of retaining consulting expertise to complete contracted work.  Interest cost decreased due to the repayment of loans and the conversion of debt to equity.

Liquidity and Capital Resources

During the nine months ended September 30, 2015, we utilized cash in the amount of $9,505 from operating activities compared to utilizing cash of $71,321 for the nine months ended September 30, 2014.  The reduction in cash utilized during the nine months ended September 30, 2015 was primarily due to overhead and operational reductions.  Cash used in operating activity during the nine months ended September 30, 2015 included a net loss of $169,466 compared to a net loss of $74,256 for the nine months ended September 30, 2014. The net loss for the nine months ended September 30, 2015 included non-cash depreciation expense of $1,203; a charge of $116,702 as the loss on extinguishment of debt related to a $50,000 note payable. The net loss for the nine months ended September 30, 2014 was $74,256 which included non-cash depreciation of $1,293; a charge of $4,500 for the cost of common stock issued for services; interest expense of $11,512.  Accounts payable increased by $14,060 for the nine months ended September 30, 2015 compared to a decrease of $32,790 for the nine months ended September 30, 2014.

 

Investing Activities

We did not use any cash resources for investing activities during the nine months ended September 30, 2015 or for the nine months ended September 30, 2014.

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There was no financing activity during the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014, when we received proceeds from notes payable in the amount of $32,500, sold common stock for $60,000 and repaid notes payable in the amount of $32,500 for net cash provided by financing activities of $60,000.  The $32,500 loan plus a prepayment penalty of $16,250 was repaid during the same period.  

Going Concern

During the nine months, ended September 30, 2015, we incurred a net loss of $169,466, which included a non-cash discount and an extinguishment of debt cost to account for restricted common shares issued at $0.0036, to repay a $50,000 note payable.  We have an accumulated deficit of $737,232 since inception.  We are in the early stage of operations, and have, only, recently commenced generating revenue which amounted to $29,827 for the nine months ended September 30, 2015 compared to $18,075 for the nine months ended September 30, 2014. We will continue to generate losses in the near future.  These conditions raise substantial doubt about our ability to continue as a going concern.

These financial statements do not include adjustments relating to the recoverability and classification of reported asset amounts or the amount and classification of liabilities that might be necessary should we be unable to continue as a going concern. Our continuation as a going concern is dependent upon its ability to obtain additional financing or sale of its common stock and ultimately to attain profitability.

 

Management's plan, in this regard, is to raise additional financing through a combination of equity and debt financing. Management believes this will be sufficient to finance the continuing development for the next twelve months. However, there is no assurance that we will be successful in raising such financing.

 

During the period ended June 30, 2014, the Company issued a Convertible Promissory Note, to a lender, in the amount of $32,500. The note had an interest rate of 8% per annum, was unsecured and matured December 5, 2014. The note was convertible into common stock in whole or in part at a variable conversion price equal to a 45% discount to average of the lowest three trading prices for the Common Stock during the 10 trading  day period ending on the latest complete trading  day prior to the conversion date. The Company recorded a discount in the amount of $32,500 in connection with the initial valuation of the beneficial conversion feature of the notes to be amortized utilizing the interest method of accretion over the term of the notes.  The note was repaid, on September 8, 2014, with cash, including a prepayment penalty of $16,250.

Other than our lines of credit, we currently do not have any other arrangements for financing and we may not be able to obtain the financing required. Obtaining additional financing would be subject to a number of factors, including our ability to attract investments prior to consistent revenue generation, and thereafter our ability to grow our brand and for success in our market.  We may also require additional financing to sustain our business operations if we are not successful in earning significant revenues once our business plan is enacted.

On May 7, 2015 the Company entered into a six month exclusive, confidential consulting agreement with a client to provide the client with services designed to launch and manage certain television operations, including the purchase and configuration of the equipment necessary to do so.  Because the final total cost of such purchases isn't certain and until such time as the contract purchases have been completed, the Company has determined that the fee minus any expenditures would be disclosed as a customer deposit.  The contract was completed during the three months ended September 30, 2015 and the net proceed were recorded as sales income.

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Our financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States ("GAAP"). GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenues and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.  

 

Our significant accounting policies are summarized in Note 2 of our unaudited interim financial statements. While all these significant accounting policies impact our financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our results of operations, financial position or liquidity for the periods presented in this report.

 

We believe the following critical accounting policies and procedures, among others, affect our more significant judgments and estimates used in the preparation of our unaudited interim financial statements:

 

Cash

We consider all highly liquid instruments purchased with a maturity of three months or less at date of acquisition to be cash equivalents.

 

Revenue Recognition

 

The Company has generated its initial revenue, from consulting and other services, during the nine months ended September 30, 2015.

Website Development

We capitalize the costs associated with the development of our website.  Other costs related to the maintenance of the website are expensed as incurred.  Amortization will be provided over the estimated useful life of 3 years using the straight-line method for financial statement purposes.

Recently Issued Accounting Pronouncements

 

On June 10, 2014, the Financial Accounting Standards Board ("FASB") issued update ASU 2014-10, Development Stage Entities (Topic 915).   Amongst other things, the amendments in this update removed the definition of development stage entity from Topic 915, thereby removing the distinction between development stage entities and other reporting entities from US GAAP.  In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information on the statements of income, cash flows and shareholders' 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 are effective for annual reporting periods beginning after December 31, 2014 and interim reporting periods beginning after December 15, 2015, however entities are permitted to early adopt for any annual or interim reporting period for which the financial statements have yet to be issued.  The Company has elected to early adopt these amendments and accordingly have not labeled the financial statements as those of a development stage entity and have not presented inception-to-date information on the respective financial statements.

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There are no other recent accounting pronouncements that are expected to have a material effect on the Company's interim unaudited financial statements.

Off-Balance Sheet Arrangements

 

We do not have any off-balance sheet arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as "special purpose entities" (SPEs).

 

Item 3     Quantitative and Qualitative Disclosures about Market Risk

Not required for a smaller reporting company.

 

Item 4     Controls and Procedures

Disclosure Controls and Procedures

As required by paragraph (b) of Rules 13a-15 or 15d-15 under the Securities Exchange Act of 1934, our management, with the participation of our principal executive officer and principal financial officer evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, management concluded that as of the end of the period covered by this Quarterly Report on Form 10-Q, these disclosure controls and procedures were not effective. The ineffectiveness of our disclosure controls and procedures was due to material weaknesses identified in our internal control over financial reporting, as described in our annual report on Form 10-K for the year ended December 31, 2013.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting during the three months ended March 31, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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