ASTIKA HOLDINGS INC. - Quarter Report: 2014 March (Form 10-Q)

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

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Florida (State or other jurisdiction of incorporation or organization)

27-4601693 (I.R.S. Employer Identification Number)

Class		Outstanding at May 19, 2014
Common Stock, par value $.001 per share		11,077,750 shares

 

 

	PAGE
Part I   Financial Information	3
Item 1.       Financial Statements (unaudited)	3
Consolidated Balance Sheets	3
Consolidated Statements of Operations	4
Consolidated Statements of Cash Flows	5
Notes to Financial Statements	6
Item 2.       Management’s Discussion and Analysis of Financial Condition and Results of Operations	8
Item 3.       Quantitative and Qualitative Disclosures About Market Risk	10
Item 4.       Controls and Procedures	10
Part II  Other Information	11
Item 1.       Legal Proceedings	13
Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds	13
Item 3.       Defaults Upon Senior Securities	13
Item 4.       Mine Safety Disclosures	13
Item 5.       Other Information	13
Item  6.      Exhibits	13
Signatures	14
EX-31.1
EX-32.1
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

 

ASTIKA HOLDINGS, INC. AND SUBSIDIARY  CONSOLIDATED BALANCE SHEETS (Unaudited)
ASSETS		March 31, 2014				December 31, 2013
Current assets:
Cash and cash equivalents		$	-			$	-
Accounts receivable			20				20
Total current assets		$	20			$	20
Equipment, net of depreciation of $628 & $513, respectively			2,371				2,558
Intangible assets, net of amortization of $496 & $309, respectively		$	4,618				4,733
Total assets		$	7,009			$	7,311
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts Payable and Accrued Expenses		$	1,863			$	5,963
Loan payable			1,177				1,162
Advances- related party		$	7,932			$	-
Total current liabilities			10,972				7,125
Shareholders' Equity:
Preferred Stock: 10,000,000 authorized;
par value $0.001;  zero issued and outstanding		$	-			$	-
Common Stock: 140,000,000 shares authorized; par value $0.001;
11,077,750 and 11,077,750 shares issued and outstanding			11,078				11,078
at  March 31, 2014 and December 31, 2013, respectively
Additional Paid in Capital			112,782				112,782
Accumulated Deficit			(127,823	)			(123,674	)
Total Shareholders' Equity			(3,963	)			186
Total Liabilities and Shareholders' Equity		$	7,009			$	7,311

 

 

 

 
 

ASTIKA HOLDINGS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
		Three months ended March 31, 2014				Three months ended March 31, 2013
REVENUE
Revenues		$	-			$	677
Cost of Revenues		$	-			$	-
Total Revenues		$	-			$	677
OPEATING EXPENSES
Selling, General & Administrative		$	4,019			$	25,537
Amortization of Intangible Assets			115				115
Total Operating Expenses		$	4,134			$	25,652
OPERATING INCOME (LOSS)		$	(4,134	)		$	(24,975	)
Interest Expense, net		$	(15	)		$	(26	)
Net (Loss) Before Income Taxes		$	(4,149	)		$	(25,001	)
Provision for Income Tax			-				-
NET (LOSS)		$	(4,149	)		$	(25,001	)
Basic and Diluted Net Loss per Common Share		$	(0.00	)		$	(0.00	)
Weighted Average Number of Common Shares Outstanding			11,077,750				11,077,750

 

 

ASTIKA HOLDINGS, INC. AND SUBSIDIARY  CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
		Three months ended				Three months  ended
		March 31, 2014				March 31, 2013
OPERATING ACTIVITIES
Net loss		$	(4,149	)		$	(25,001	)
Adjustment to reconcile net loss to net cash used in operating activities:			115				115
Amortization			187				140
Depreciation
Interest expense			15				26
Changes in operating assets and liabilities:
Accounts payable- related party			7,932				-
Accounts receivable			-				(261	)
Accounts payable and accrued expenses			(4,100	)			(10,940	)
NET CASH USED IN OPERATING ACTIVITIES			-				(35,921	)
NET DECREASE IN CASH			-				(35,921	)
CASH, BEGINNING OF PERIOD			-				77,130
CASH, END OF PERIOD		$	-			$	41,209
Supplemental cash flow information and noncash financing activities:
Cash paid for:
Taxes paid		$	-			$	-
Interest paid		$	-			$	-

 

 

 

 

 

 

 

		March 31, 2014				December 31, 2013
Rights to Musical Compositions in BMI Catalog		$	500			$	500
Rights to Eugenius SOL Presents:  Green and Healthy			5,000				5,000
Accumulated Amortization			( 882)				(767	)
Intangible Assets, Net		$	4,618			$	4,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	As of December 31, 2013					As of March 31, 2014
Cash		$	-			$	-
Working Capital			(7,105)				(10,952	)
Debt (current)			7,105				10,952

 

 

 

 

 

 

 

 

 

 

●	Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;

 

●

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

 

●	Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

 

 

 

 

 

●

We do not have an audit committee.  While we are not currently obligated to have an audit committee, including a member who is an “audit committee financial expert,” as defined in Item 407 of Regulation S-K, under applicable regulations or listing standards; however, it is management’s view that such a committee is an important internal control over financial reporting, the lack of which may result in ineffective oversight in the establishment and monitoring of internal controls and procedures.

 

●

We did not maintain proper segregation of duties for the preparation of our financial statements.  We currently have only one officer overseeing all transactions.  This has resulted in several deficiencies, including the lack of control over preparation of financial statements and proper application of accounting.

●

We will create a position to segregate duties consistent with control objectives and will increase our personnel resources and technical accounting expertise within the accounting function when funds are available to us. And, we plan to appoint one or more outside directors to an audit committee resulting in a fully functioning audit committee, which will undertake the oversight in the establishment and monitoring of required internal controls and procedures, such as reviewing and approving estimates and assumptions made by management when funds are available to us.

●	Management believes that the appointment of outside directors to a fully functioning audit committee, would remedy the lack of a functioning audit committee.

 

 

 

 

Marketing, Promotion and Advertising		$	590
Printing expenses			10,075
Executive Compensation			6,000
Legal fees and expenses			55,129
Accounting fees and expenses			9,250
Blue sky fees and expenses			3,371
Transfer Agent fees			20,005
Miscellaneous			1,680
Tota		$	106,100

Exhibit No.		Description
Exhibit 31.1		302 Certification – Mark W. Richards
Exhibit 32.1		906 Certification – Mark W. Richards

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit No.		Description
Exhibit 31.1		302 Certification – Mark W. Richards
Exhibit 32.1		906 Certification – Mark W. Richards