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, 2018

 

¨ Transition Report Under Section 13 or 15(d) of the Securities Exchange Act Of 1934

 

For the transition period from __________ to __________

 

Commission File Number:    000-52828

 

DIGITAL DEVELOPMENT PARTNERS, INC.

(Exact name of registrant as specified in its charter)

 

NEVADA		98-0521119
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

 

17800 Castleton St., Suite 300

City of Industry, CA 91748
(Address of principal executive offices, including Zip Code)

  

(626) 581-3335

(Issuer’s telephone number, including area code)

 

(Former name or former address if changed since last report)

 

Check whether the issuer (1) has 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 required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes x    No ¨

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes x No ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer	¨		Accelerated filer	¨
Non-accelerated filer	x		Smaller reporting company	x
			Emerging growth company	¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

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

 

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 85,970,665 shares of common stock as of November 14, 2018.

 

  

Digital Development Partners, Inc.

Balance Sheets (Unaudited)

as of

 

		September 30,				December 31,
		2018				2017
ASSETS
Current Assets
Cash			4,733				1,573
Total Assets		$	4,733			$	1,573
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts Payable and accrued expenses			211,653				186,541
Long Term Liabilities
Loan Payable to EFT Holdings, Inc. (Note 5)			732,157				711,000
Loan Payable to EF2T, Inc. (Note 5)			38,250				1,750
Total Long Term Liabilities			770,407				712,750
Total Liabilities			982,060				899,291
Stockholders' Deficit
Common Stock, $0.001 par value; authorized 225,000,000 shares; 85,970 665 outstanding shares at September 30, 2018 and December 31, 2017			85,971				85,971
Additional Paid-In Capital			7,488,946				7,488,946
Deficit			(8,552,244	)			(8,472,635	)
Total Stockholders' Deficit			(977,327	)			(897,718	)
Total Liabilities and Stockholders' Deficit		$	4,733			$	1,573

 

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

 

 

DIGITAL DEVELOPMENT PARTNERS, INC.

Statements of Operations (Unaudited)

 

 

		For the								For the
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2018				2017				2018				2017
Operating Expenses			13,622				13,227				51,797				47,659
Loss from Operations			(13,622	)			(13,227	)			(51,797	)			(47,659	)
Interest Expense			9,526				8,488				27,812				25,067
Net Loss			(23,148	)			(21,715	)			(79,609	)			(72,726	)
Loss Per Common Share:
Basic and Diluted		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	(0.00	)
Weighted Average Shares Outstanding,
Basic and Diluted:			85,970,665				85,970,665				85,970,665				85,970,665

 

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

 

 

DIGITAL DEVELOPMENT PARTNERS, INC.

Statements of Cash Flows
(Unaudited)

 

		For the
		Nine Months Ended
		September 30,
		2018				2017
Cash flows from operating activities:
Net loss		$	(79,609	)		$	(72,726	)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in operating assets and liabilities:
Accounts payable, accrued liabilities			39,259				24,858
Deposits			-				-
Net cash used in operating activities			(40,350	)			(47,868	)
Cash flows from investing activities
Net cash provided by (used in) investing activities			-				-
Cash flows from financing activities:
Proceeds of loans - Related Party (EFT Holdings)			9,510				32,000
Proceeds of loans - Related Party (EF2T, Inc.)			34,000				1,750
Net cash provided by financing activities			43,510				33,750
Net increase (decrease) in cash			3,160				(14,118	)
Cash, beginning of the period			1,573				14,513
Cash, end of the period		$	4,733			$	395
Supplemental cash flow disclosure:
Expenses paid by related parties on behalf of the Company		$	14,147
Interest paid		$	-			$	-
Taxes paid		$	-			$	-

 

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

 

 

DIGITAL DEVELOPMENT PARTNERS INC. 
NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)

 

1.

Basis of Presentation and Nature of Operations

 

The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required by GAAP for complete annual financial statement presentation.

 

These unaudited interim financial statements, as of September 30, 2018 and for the three and nine months ended September 30, 2018 and 2017, reflect all adjustments consisting of normal recurring adjustments, which, in the opinion of management, are necessary to fairly present the Company’s financial position and the results of its operations for the periods presented, in accordance with the accounting principles generally accepted in the United States of America. Operating results for the three and nine months ended September 30, 2018, are not necessarily indicative of the results to be expected for other interim periods or for the full year ending December 31, 2018. These unaudited interim financial statements should be read in conjunction with the financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities Exchange Commission.

  

2.

Going Concern

 

The Company’s unaudited interim financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The Company also has a working capital deficit as of September 30, 2018. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

The Company’s capital requirements will depend on many factors, including the success of the Company’s researching for new markets. The Company plans to continue financing its operations with cash received from financing activities, more specifically from related party loans.

 

While the Company strongly believes that its capital resources will be sufficient in the near term, there is no assurance that the Company’s future activities will generate sufficient revenues to sustain its operations without additional capital or if additional capital is needed, that such funds, if available, will be obtainable on terms satisfactory to the Company. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities,that might be necessary in the event that the Company cannot continue as a going concern.

 

3.

Related Party Transactions

  

		September 30,				December 31,
		2018				2017
Loans payable to related parties:
EFT Holdings, Inc.		$	732,157			$	711,000
EF2T, Inc.			38,250				1,750
		$	770,407			$	712,750

 

As of September 30, 2018 the Company owed EFT Holdings Inc. $732,157. Advances of $9,510 were received from EFT Holdings during the nine months ended September 30, 2018. The amounts due EFT Holdings bear interest at 5% per year, are secured by all future sales of the Company and have a maturity of one year. As of September 30, 2018 the Company owed EFT Holdings $206,365 in accrued and unpaid interest. Several of these advances at September 30, 2018 were past due and payable upon demand.

 

As of September 30, 2018, the Company owed EF2T $38,250. Advances of $34,000 were received from EF2T during the nine months ended September 30, 2018. The amounts due EF2T bear interest at 5% per year, are secured by all future sales of the Company, and have a maturity of one year. As of September 30, 2018, the Company owed EF2T $737 in accrued and unpaid interest.

 

The amounts due EFT Holdings and EF2T include $14,147 representing non-cash expenses paid on behalf of the Company by these entities.

 

 

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

 

On February 18, 2010 the Company’s directors approved an agreement between the Company and EFT Holdings, Inc., (“EFT”), whereby EFT agreed to assign its worldwide distribution and servicing rights to a product known as the “EFT-Phone” in exchange for 79,265,000 shares of the Company’s common stock.

 

The EFT-Phone is a cell phone which has an application that allows EFT’s affiliate base to access all of their back office sites including their Funds Management Account where the affiliate is able to deposit, withdraw and transfer money to another EFT account or to another EFT affiliate at no cost for the transfer.

 

Results of Operations

 

The Company did not receive any orders for the EFT phone during the year ended December 31, 2017 or the nine months ended September 30, 2018. The Company has been advised by EFT that due to a significant drop in demand for the EFT phone, EFT will not be placing any new orders from the Company. The Company is investigating other sources of revenue to mitigate its lack of revenue.

 

Other than the foregoing, the Company does not know of any trends, events or uncertainties that will have, or are reasonably expected to have, a material impact on sales, revenues, expenses or results of operations.

 

Liquidity and Capital Resources

 

The Company does not have any firm commitments from any person to provide the Company with any additional capital. While the Company strongly believes that its capital resources will be sufficient in the near term, there is no assurance that the Company’s activities will generate sufficient revenues to sustain its operations without additional capital or if additional capital is needed, that such funds, if available, will be obtainable on terms satisfactory to the Company.

 

Item 4. Controls and Procedures.

 

(a)       The Company maintains a system of controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended (“1934 Act”), is recorded, processed, summarized and reported, within time periods specified in the SEC's rules and forms and to ensure that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act, is accumulated and communicated to the Company’s management, including its Principal Executive and Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of September 30, 2018, the Company’s Principal Executive and Financial Officer evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, the Principal Executive and Financial Officer concluded that the Company’s disclosure controls and procedures were not effective.

 

(b)       There were no changes in the Company’s internal control over financial reporting during the quarter ended September 30, 2018, that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

 

 

PART II

 

Item 6. Exhibits

 

Exhibits

 

31.1

Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

31.2

Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

32

Certification pursuant to Section 906 of the Sarbanes-Oxley Act.

 

101.INS

XBRL Instance Document

 

101.SCH

XBRL Taxonomy Extension Schema

 

101.CAL

XBRL Taxonomy Extension Calculation Linkbase

 

101.DEF

XBRL Taxonomy Extension Definition Linkbase

 

101.LAB

XBRL Taxonomy Extension Label Linkbase

 

101.PRE

XBRL Taxonomy Extension Presentation Linkbase

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

  

	DIGITAL DEVELOPMENT PARTNERS, INC.
November 15, 2018	By:	/s/ Jack Jie Qin
		Jack Jie Qin, Principal Executive Officer
	By:	/s/ William E. Sluss
		William E. Sluss, Principal Financial and Accounting Officer