Driveitaway Holdings, Inc. - Quarter Report: 2012 June (Form 10-Q)

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

o	Transition Report Under Section 13 or 15(d) Of The Securities Exchange Act Of 1934

 

Delaware		20-4456503
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

 (Address of principal executive offices, including Zip Code)

 (Issuer’s telephone number, including area code)

 

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	þ

 

 

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		June 30,				September 30,
		2012 (unaudited)				2011 (audited)
Assets
Current Assets:
Cash		$	621,178			$	517,830
Accounts receivable, less allowance for doubtful
accounts of $2,000 and $28,660, respectively			259,270				89,005
Prepaid expenses			23,407				—
Other receivables			47,618				2,118
Total Current Assets			951,473				608,953
Note receivable from related party			11,806				10,000
Property and equipment, net of accumulated depreciation
of $23,577 and $11,280, respectively			257,530				157,619
Deposits			7,619				7,619
Total Assets		$	1,228,428			$	784,191
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable:
Related party		$	—			$	11,100
Other			81,051				69,534
Payroll accruals			13,535				4,123
Accrued marketing fund			59,144				—
Customer deposits			—				—
Total Current Liabilities			153,730				84,757
Stockholders’ Equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized;
-0- and -0- shares issued and outstanding, respectively							—
Common stock, $0.0001 par value; 50,000,000 shares authorized;
11,451,075 and 10,288,575 shares issued and outstanding, respectively			1,145				1,029
Additional paid-in capital			1,984,129				1,975,445
Retained deficit			(910,576	)			(1,277,040	)
Total Stockholders’ Equity			1,074,698				699,434
Total Liabilities and Stockholders’ Equity		$	1,228,428			$	784,191

 

 

		(Unaudited)  For The Three Months Ended								(Unaudited) For The Nine Months Ended
		June 30,				June 30,				June 30,				June 30,
		2012				2011				2012				2011
Revenues:
Initial franchise fees		$	665,317			$	361,659			$	1,871,339			$	1,008,046
Royalties and marketing fees			130,811				--				302,474				--
			796,128				361,659				2,173,813				1,008,046
Operating expenses:
Franchise consulting and commissions:
Related parties			93,113				83,435				255,770				247,212
Other			197,996				160,525				539,667				304,399
Franchise training and expenses:
Related parties			1,501				—				12,400				—
Other			18,615				34,940				49,179				50,618
Salaries and payroll taxes			102,039				40,074				283,761				173,359
Advertising			82,405				70,609				188,789				128,478
Professional fees			24,237				20,598				150,638				50,078
Office expense			28,985				14,183				74,772				68,511
Depreciation			4,567				2,405				12,297				7,096
Stock-based compensation			--				--				8,800				--
Other general and administrative expenses			110,456				65,668				233,228				339,147
Total operating expenses			663,915				492,437				1,809,300				1,368,898
Income (loss) from operations			132,212				(130,778	)			364,514				(360,852	)
Other income (expense):
Interest expense:
Beneficial conversion feature			—				—				—				(19,630	)
Other			—				(1,834	)			—				(16,023	)
Other income			963				8,904				1,952				59,791
Total other income (expense)			963				7,070				1,952				24,138
Income (loss) before provision for income taxes			133,175				(123,708	)			366,465				(336,714	)
Provision for income taxes (Note 11)			—				—				—				—
Net income (loss)		$	133,175			$	(123,708	)		$	366,465			$	(336,714	)
Net income (loss) per share:
Basic and diluted		$	0.01			$	(0.04	)			0.03			$	(0.12	)
Weighted average number of common
shares outstanding			11,414,186				2,753,176				11,414,186				2,753,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·	opened one Corporate Creativity Center in Florida; and

·	sold 161 additional franchises.

 

		Increase (I)
Item		or Decrease (D)		Reason
Revenues		I		Increased sales of franchises and an increase in royalties received from franchisees.
Operating Expenses		I		Increase in sales of franchises resulted in more commissions paid on the sale of franchises. Increase in sale of franchises also required more support, resulting in higher salaries. Professional fees increased as the result of legal expenses incurred when the Company sued an unrelated third party for infringing on the Company’s proprietary rights. The lawsuit has since been settled.

 

 

 

 

 

 

 

 

 

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.

	CREATIVE LEARNING CORPORATION
August 13, 2012	By:	/s/ Brian Pappas
		Brian Pappas, Principal Executive, Financial and Accounting Office

 

 

 

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