Black Bird Biotech, Inc. - Quarter Report: 2011 September (Form 10-Q)

dgdm_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

þ Quarterly Report Pursuant To Section 13 or 15(d) Of The Securities Exchange Act Of 1934

For the quarterly period ended September 30, 2011

o 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) 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 þ No o

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 þ No o

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,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o

Non-accelerated filer o Smaller reporting company þ

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

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 86,402,665 shares of common stock as of October 31, 2011.

Digital Development Partners, Inc.
Balance Sheet
as of

	September 30,			December 31,
	2011			2010
	(Unaudited)
ASSETS
Current Assets
Cash	$	48,408		$	196,676
Pre-paid Deposit		16,680			269,128
Loan Receivable		-			33,000
		65,088			498,804
Other Assets
Due From EFT International, Ltd.		15,000			-
Goodwill		-			5,000


	$	80,088		$	503,804


LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable		32,601			16,920

Long Term Liabilities
Loan Payable (Note 5)		300,000			619,666
	$	332,601		$	636,586

Stockholders' Equity
Common Stock, $0.001 par value; authorized 225,000,000
shares; issued and outstanding
86,402,665 shares as of December 31, 2010,
86,402,665 shares as of September 30, 2011		86,403			86,403
Additional Paid-In Capital		8,281,164			8,281,164
Deficit		(8,620,080	)		(8,500,349	)

Total Stockholders' Equity		(252,513	)		(132,782	)

	$	80,088		$	503,804

The accompanying notes are an integral part of these financial statements

DIGITAL DEVELOPMENT PARTNERS, INC.

Statement of Operations

(Unaudited)

	For the						For the
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010

Revenue	$	195,002		$	100,000		$	1,116,887		$	101,200

Cost of Sales		180,000			76,454			1,033,990			92,500

Operating Income		15,002			23,546			82,897			8,700

General and Administrative Expenses:											-
Advertising		-			55,000			61,235			57,383
Consulting		7,500			25,060			56,250			66,505
Professional Fees		10,805			6,815			27,271			66,326
Transfer Fees		-			734			402			3,184
Project Related Costs		-			17,746			-			14,742
Other Administrative Expenses		10,570			4,603			45,447			25,378
Total General and
Administrative Expenses		28,875			109,958			190,605			233,518

Net Loss from Operations		(13,873	)		(86,412	)		(107,708	)		(224,818	)

Other Income and Expense
Interest Income		-			711			-			711
Interest Expense		(3,751	)		(6,639	)		(12,023	)		(9,510	)
		(3,751	)		(5,928	)		(12,023	)		(8,799	)

Net Loss	$	(17,624	)	$	(92,340	)	$	(119,731	)	$	(233,617	)

Loss Per Common Share:
Basic and Diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Weighted Average Shares Outstanding,
Basic and Diluted:		86,402,665			86,402,665			86,402,665			72,489,525

The accompanying notes are an integral part of these financial statements

DIGITAL DEVELOPMENT PARTNERS, INC.
Statement of Stockholders' Equity
For the period from January 1, 2007 to September 30, 2011
(Unaudited)

	Common Stock						Additional						Shareholders'
	Number of						Paid-In						Equity
	Shares			Amount			Capital			Deficit			(Deficit)
Balances January 1, 2007		-		$	-		$	-		$	-		$	-
Common stock issued for cash,
Jan. 10, 2007 @ $0.01 per share		4,500,000			4,500			10,500						15,000
Common stock issued for cash,
May, 2007 @ $0.02 per share		3,975,000			3,975			22,525						26,500
Common stock issued for cash,
June, 2007 @ $0.02 per share		2,400,000			2,400			13,600						16,000
Net loss for the year ended
December 31, 2007											(36,063	)		(36,063	)
Balances, December 31, 2007		10,875,000		$	10,875		$	46,625		$	(36,063	)	$	21,437
Capital contributed Nov. 26, 2008								5,000						5,000
Net loss for year ended Dec.31, 2008											(23,253	)		(23,253	)
Balances, December 31, 2008		10,875,000		$	10,875		$	51,625		$	(59,316	)	$	3,184
Capital contributed August 1, 2009								100						100
Stock Issued for purchase of sub-
sidiary Aug 3, 2009 @ $0.0033/share		15,495,000			15,495			(10,495	)					5,000
Sale of warrant @ $25,000 Aug.3, 2009								25,000						25,000
Common stock issued for cash
Dec. 31, 2009 @ $0.75 per share.		216,000			216			161,784						162,000
Net loss for year ended Dec.31, 2009											(168,723	)		(168,723	)
Balances, December 31, 2010		26,586,000		$	26,586		$	228,014		$	(228,039	)	$	26,561
Capital Contributed Feb. 2, 2010								75,000						75,000
January 5, 2010 Stock issued for debt		100,000			100			99,900						100,000
Common Stock issued for services
@ $0.10 per share Feb. 2, 2010		114,665			115			11,352						11,467
Stock issued per Agreement with
EFT Biotech Holdings, Inc. Feb. 18,
2010 @ $0.10 per share		79,265,000			79,265			7,847,235						7,926,500
Common Stock returned to Treasury
and cancelled Feb. 22, 2010		(20,095,000	)		(20,095	)		20,095						-
June, 2010 stock issued pursuant to
completion of Sep. 2009 offering.		432,000			432			(432	)					-
Net loss for year ended Dec.31, 2010											(8,272,310	)		(8,272,310	)
Balances, December 31, 2010		86,402,665		$	86,403		$	8,281,164		$	(8,500,349	)	$	(132,782	)
Net loss for the nine months											(119,731	)		(119,731	)
Balances, September 30, 2011		86,402,665		$	86,403		$	8,281,164		$	(8,620,080	)	$	(252,513	)

The accompanying notes are an integral part of these financial statements

DIGITAL DEVELOPMENT PARTNERS, INC.

Statement of Cash Flows

(Unaudited)

	For the
	Nine Months Ended
	September 30,
	2011			2010
Cash flows from operating activities:
Net loss	$	(119,731	)	$	(233,617	)
Adjustments to reconcile net loss to
net cash used by operating activities:		-			-
Change in operating assets and liabilities:
Accounts payable, accrued liabilities		15,682			(90,289	)
Deposits		252,447			(615,078	)
Net cash provided (used) by operating activities		148,398			(938,984	)

Cash flows from investing activities
Investment in EFT Project		-			(8,030,492	)
Issue of stock for investment		-			8,026,500
Stock Option		-			100,000
Net cash provided (used) by investing activities		-			96,008

Cash flows from financing activities:
Repayment of loans		(319,666	)		-
Proceeds of loan receivable		33,000			668
Loan to related Party		(15,000	)		938,604
Issue of stock for services		-			11,467
Contributed Capital		-			75,000
Net cash provided (used) by financing activities		(301,666	)		1,025,739
Non cash impairment of Goodwill		5,000
Net increase (decrease) in cash		(148,268	)		182,763

Cash, beginning of the period		196,676			21,561

Cash, end of the period	$	48,408		$	204,324


Supplemental cash flow disclosure:
Interest paid	$	-		$	-
Taxes paid	$	-		$	-

The accompanying notes are an integral part of these financial statements

DIGITAL DEVELOPMENT PARTNERS INC.

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2011

(Unaudited)

1. Basis of Presentation and Nature of Operations

These unaudited interim financial statements as of and for the three and nine months ended September 30, 2011 reflect all adjustments which, in the opinion of management, are necessary to fairly state the Company's financial position and the results of it's operations for the periods presented, in accordance with the accounting principles generally accepted in the United States of America. All adjustments are of a normal recurring nature.

These unaudited interim financial statements should be read in conjunction with the Company's financial statements and notes thereto included in the Company's fiscal year end December 31, 2010 report. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited financial statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The results of operations for the nine month period ended September 30, 2011 are not necessarily indicative of results for the entire year ending December 31, 2011.

Organization

The Company was incorporated as Cyprium Resources, Inc. under the laws of the State of Nevada December 22, 2006. The Company was originally formed for mineral exploration in the United States. On May 19, 2009 the Company's name was changed to Digital Development Partners, Inc. The Company adopted December 31 as its fiscal year end.

Current Business of the Corporation

In January, 2007 the Company entered into a 20 year lease agreement with the owner of 10 mining claims situated in Utah, known as the King claims. The lease was maintained current through September 30, 2008, however mining activities were limited. The lease was terminated by mutual agreement in November 2008.

In a move to further the Company's plans to market an on-line coupon system to merchants, the Company gained control of two private companies in 2009 involved in related enterprises; 4gDeals Inc. (later Yu Deal Inc.), and Top Floor Studio. These companies began to work together on the project.

A reassessment of the Company's direction resulted in a reorganization plan on February 17, 2010 which included:

1. Acquisition of the worldwide distribution and servicing rights to a cell phone enterprise based in Hong Kong;

2. Change in management;

3. Sale of the Company's option on Top Floor Studio;

4. Distribution of the Company's shares in YuDeal, Inc. to the stockholders.

Pursuant to the plan, the Company's interests in Top Floor Studio and YuDeal Inc. were disposed of in February, 2010. The Company's option on Top Floor was sold to YuDeal, Inc. for YuDeal common stock, which in turn was exchanged for 20,095,000 shares of Company stock. These shares were returned to Treasury and cancelled. A residual of YuDeal stock was distributed to Company stockholders in March and April, 2010.

In connection with the reorganization, the management team of the Company resigned. The Company's president, Isaac Roberts, was replaced by Jack Jie Quin, president of EFT Holdings Inc. (formerly named EFT Biotech Holdings, Inc.).

On February 17, 2010 an agreement was signed with , EFT Holdings, Inc., which markets its "EFT-Phone" through direct marketing in China and Hong Kong. Its distribution and servicing rights were acquired by the Company in exchange for 79,265,000 shares of the Company's common stock. As a result, EFT Holdings Inc. became the Company's majority stockholder.

2. Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Significant estimates made by management are, among others, reliability of long-lived assets and deferred taxes.

Cash and equivalents

Cash and equivalents include investments with initial maturities of six months or less.

Fair Value of Financial Instruments

The Financial Accounting Standards Board issued ASC No. 820, "Fair Value Measurements and Disclosures." ASC No. 820 requires disclosure of fair value information about financial instruments when it is practicable to estimate that value. The carrying amounts of the Company's financial instruments as of September 30, 2011 approximate their respective fair values because of the short-term nature of these instruments. Such instruments consist of cash, accounts payable and accrued expenses. The fair value of related party payables is not determinable.

Income Taxes

The Company accounts for income taxes using the liability method prescribed by ASC 740, "Income Taxes'" Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date.

The Company applied the provisions of ASC 740-10-50, "Accounting For Uncertainty In Income Taxes", which provides clarification related to the process associated with accounting for uncertain tax positions recognized in its financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company's liability for income taxes. Any such adjustment could be material to the Company's results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of December 31, 2010 and 2009, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future.

The Company generated a deferred tax credit through net operating loss carryforward. However, a valuation allowance of 100% has been established.

Interest and penalties on tax deficiencies recognized in accordance with ASC accounting standards are classified as income taxes in accordance with ASC Topic 740-10-50-19.

Recent Accounting Pronouncements

The Company has reviewed issued and proposed accounting pronouncements and plans to adopt those that are applicable to it. The Company does not expect the adoption of any recently adopted or proposed pronouncements to have a material impact on its results of operations or financial position.

Basic and Diluted Net Loss Per Share

Net loss per share is calculated in accordance with ASC 260, Earnings Per Share, for the period presented. Basic net loss per share is based upon the weighted average number of common shares outstanding. Diluted net loss per share is based on the assumption that all dilative convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

As of September 30, 2011 the Company has potentially dilutive securities in outstanding warrants for the purchase of shares of common stock. Since the Company is in a loss position the warrants are anti-dilutive and not considered in the calculation.

The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations for the nine months ended September 30, 2011 and 2010:

	2011			2010
Numerator:

Basic and diluted net loss per share:
Net Loss	$	(119,731	)	$	(233,617	)

Denominator

Basic and diluted weighted average number of shares outstanding		86,402,665			72,489,525

Basic and Diluted Net Loss Per Share	$	(0.00	)	$	(0.00	)

3. Pre-paid Deposit

September 30, 2011			December 31, 2010
$ 16,680			$ 269,128

A deposit was made for the manufacture of EFT smart phones following purchase of distribution and servicing rights from EFT Holdings in February, 2010. The deposit has been depleted by orders for smart phones.

4. EFT Project

September 30, 2011			December 31, 2010
$ 0			$ 0

The worldwide distribution and servicing rights for the "EFT Smart Phone" were purchased from EFT Holdings, Inc, operating in China and Hong Kong, by the exchange of stock valued at $8,031,492. Impairment was considered at the year ended December 31, 2010 based on future cash flows, and the investment written down to zero. The Company still retains all rights originally purchased.

5. Loans Payable

	September 30, 2011		December 31, 2010

Loan Payable - EFT Biotech	$	300,000	$	619,666

A promissory note for $500,000 was issued May 13, 2010 to EFT Holdings Inc. A series of advances was received from EFT Holdings during the fiscal year ended December 31, 2010 totaling $619,666. The note bears annual interest of 5%, requires no monthly payments, and matured November 13, 2010. The note was extended indefinitely. The note was paid down to $300,000 in January, 2011

6. Income Taxes

No provision was made for federal income tax since the Company had an operating loss and has accumulated net operating loss carryforwards of approximately $8.6 million. The net operating loss carry-forwards may be used to reduce taxable income through the year 2025.

7. Capital Stock

No stock was issued in the nine months ended September 30, 2011.

As of September 30, 2011, the Company was authorized to issue 225,000,000 common shares, of which 86,402,665 shares were issued and outstanding.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

The Company was incorporated in December 2006.

In January 2007 the Company leased ten mining claims from an unrelated third party. These claims were located in Piute County, Utah. The mining lease was for a twenty-year term and required the Company to pay a royalty to the lessor equal to 2.5% of the net smelter returns from the sale of any minerals extracted from the claims. Minimum royalty payments of $4,500 were also required each year during the term of the lease.

On November 1, 2008 the mining lease was terminated by the mutual agreement of the Company and the lessor.

Between November 2008 and August 2009 the Company was inactive.

On August 3, 2009 the Company acquired all of the outstanding shares of 4gDeals, Inc (“4gDeals”) for 15,495,000 shares of the Company’s common stock.

On December 18, 2009 4gDeal’s articles of incorporation were amended to change the name of 4gDeals to YuDeal, Inc., (“YuDeal”).

YuDeal is developing a software based network which will allow restaurants, merchants and service providers to send text messages to customers advising the customer of discounts or other promotional offers.

In February 2010 the Company determined that its existing capital structure would impair its ability to raise the capital required to further the development of YuDeal’s network. Accordingly, the Company adopted a reorganization plan which:

·	involved the distribution of its shares in YuDeal to the Company’s shareholders; and

·	the acquisition of new line of technology which has the prospect of being the core of a commercially viable business.

Consistent with its reorganization plan, on February 18, 2010 the Company’s directors approved an agreement between the Company and EFT Biotech Holdings, Inc., now named 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.

EFT markets its products through a direct sales organization. Once a customer of EFT’s makes a minimum purchase of $300 (plus $30 for shipping and handling fees), the customer becomes an “affiliate”. As of October 31, 2011, EFT had approximately 1,241,928 affiliates, a majority of which are located in China and Hong Kong.

The EFT-Phone is a cell phone which uses the Android Operating System. The phone is manufactured by an unrelated third party. The EFT-Phone 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. The EFT-Phone has educational applications and PowerPoint presentation capability for training new affiliates anywhere in the world.

The worldwide distribution and servicing rights to the EFT-Phone include the right to sell the EFT-Phone to EFT’s affiliates and others. Servicing includes the collection of service fees for all EFT-Phones worldwide, including monthly fees, usage fees, as well as call forwarding, call waiting, text messaging and video fees. The Company also acquired the rights to distribute all EFT-Phone accessories.

The Company began marketing the EFT-Phones to the affiliates of EFT in July 2010. The EFT-Phone has a retail price of approximately $400.

As of October 31, 2011 the Company did not have any full time employees.

Results of Operations

Material changes of items in the Company’s Statement of Operations for the three months ended September 30, 2011 as compared to the same period in the prior year are discussed below:

	Increase (I)
Item	or Decrease (D)	Reason

Revenue	I	Sale of more phones during current quarter.

Operating Income, as a percentage of revenue	D	Reduction in the retail price of EFT phones

Advertising	D	Marketing campaign conducted in prior year was not renewed.

Professional fees	I	Investor relations contract in force during 2010 was not renewed in 2011.

Other Administrative Expenses	I	Expense associated with the hiring of a Chief Financial Officer for the Company.

Material changes of items in the Company’s Statement of Operations for the nine months ended September 30, 2011 as compared to the same period in the prior year are discussed below:

	Increase (I)
Item	or Decrease (D)	Reason

Revenue	I	Increase in sales.

Operating Income,
as a percentage of revenue	D	Reduction in retail price of EFT phones.

Professional fees	D	Investor relations contract in force during 2010 was not renewed.

Other Administrative Expenses	I	Expense associated with the hiring of a Chief Financial Officer for the Company.

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.

See Note 2 to the financial statements included as part of this report for a description of the Company’s accounting policies and recent accounting pronouncements.

See Note 4 to the financial statements included as part of this report for information concerning the impairment of the Company’s principal asset.

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 Officers, as appropriate to allow timely decisions regarding required disclosure. As of September 30, 2011, the Company’s Principal Executive and Financial Officers 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 Officers concluded that the Company’s disclosure controls and procedures were effective.

(b) Changes in Internal Controls. There were no changes in the Company’s internal control over financial reporting during the quarter ended September 30, 2011, 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.

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

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 __, 2011	By:	/s/ Jack Jie Qin
		Jack Jie Qin, President and Principal Executive Officer



November __, 2011	By:	/s/ William E. Sluss
		William E. Sluss, Principal Financial and Accounting Officer