Generation Alpha, Inc. - Quarter Report: 2008 September (Form 10-Q)

cinjet10q93008.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2008.

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

For the transition period from _______________________ to ___________________________

Commission File Number 000-52446

CINJET, INC.

(Exact name of registrant as specified in its charter)

Nevada	20-8609439
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1260 California Avenue, B#116, Sand City, CA	93955-3172
(Address of principal executive offices)	(Zip Code)

(831) 393-1396

(Registrant’s telephone number, including area code)

_______________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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. S Yes£ No

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

Large accelerated filer £ Accelerated filer £

Non-accelerated filer £ (Do not check if a smaller reporting company) Smaller reporting company S

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

As of October 31, 2008, there were 10,777,000 shares of common stock, $.0001 par value, issued and outstanding.

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at September 30, 2008 and 2007 and for the periods then ended have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2007 audited financial statements. The results of operations for the periods ended September 30, 2008 and 2007 are not necessarily indicative of the operating results for the full year.

Cinjet, Inc.

Condensed Balance Sheet

For the nine months ended September 30, 2008 and February 28, 2007 (Date of Inception) to December 31, 2007

					Unaudited		Audited
ASSETS				September 30, 2008		December 31, 2007

Current assets
	Cash and cash equivalents			$	0	$	2,245
	Restricted cash				0		50,650
	Accounts Receivable - Trade				27,882		8,819
	Other Receivables				0		1,000
	Prepaid expenses				0		0
			Total current assets		27,882		62,714
Fixed assets
	Computer and equipment				2,484		2,484
	Software				3,795		3,795
		Total fixed assets			6,279		6,279
		(Less) Accumulated depreciation			(1,884)		(942)
			Total fixed assets		4,395		5,337
			Total assets	$	32,277	$	68,051

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
	Bank overdraft			$	369	$	0
	Accounts payable				1,770		12,790
	Credit cards				3,416		5,749
	Proceeds from unissued stock sale				0		50,650
	Accrued interest				14		1,599
	Fees to related parties				18,500		0
	State corporate tax payable				800		800
			Total current liabilities		24,869		71,588
	Notes payable related parties				2,630		23,207
			Total liabilities		27,499		94,795
Shareholders' deficit
	Preferred stock, 5,000,000 shares
		authorized			0		0
	Common stock, 200,000,000 shares
		authorized, 10,777,000 outstanding			1,078		1,045
	Paid in capital				87,322		5,605
	Retained deficit				(83,622)		(33,394)
			Total shareholders' deficit		4,778		(26,744)
Total liabilities and shareholders' equity				$	32,277	$	68,051

The accompanying notes are an integral part of these financial statements

Cinjet, Inc.

Condensed Statement of Operations

For the nine months ended September 30, 2008 and February 28, 2007 (Date of Inception) to September 30, 2007

					September 30, 2008		September 30, 2007

Revenue				$	27,982	$	0

Cost of Goods Sold					907		0

Gross Profit					27,075		0


Expenses
	Advertising				136		0
	Bank charges				478		126
	Computer expense				553		2,043
	Depreciation				942		628
	Licenses and permits				1,550		1,950
	Meals and entertainment				120		0
	Office expense				1,394		889
	Postage and delivery				413		348
	Telephone				1,957		880
	Professional fees				57,049		9,275
	Travel expenses				12,608		2,125
			Total expenses		77,200		18,264
		Net loss from operations			(50,125)		(18,264)

Interest (Expense)					(102)		(1,122)

		Net income (loss)		$	(50,228)	$	(19,386)

Loss per common share				$	($0.01)	$	($0.01)
Weighted average of
	shares outstanding				10,777,000		10,450,000

The accompanying notes are an integral part of these financial statements

Cinjet, Inc.

Condensed Statement of Cash Flows: Indirect Method

For the nine months ended September 30, 2008 and

February 28, 2007 (Date of Inception) to September 30, 2007

			2008	2007
CASH FLOWS FROM
	OPERATING ACTIVITIES
Net income (loss)			(50,228)	$	(19,386)
Adjustment to reconcile net to net cash
	provided by operating activities
		Increase in State Tax Accrual	0
		Depreciation	942		628
		(Decrease)Increase in accrued interest	(1,585)		1,122
		(Decrease)Increase in cash deposits from stock	50,650
		(Decrease) in prepaids	0		(5,000)
		(Decrease) in credit card payable	(2,334)
		(Decrease) Increase in Receivables	(19,063)
		(Decrease) Increase in Receivables-other	1,000
		(Decrease)Increase in Payables	(11,020)
		(Decrease) inproceeds from sale of stock	(50,650)
		Rounding Error	1
		Bank overdraft	369
		Fees to Related Parties	18,500
NET CASH PROVIDED
	BY OPERATING ACTIVITIES		(63,418)		(22,636)
INVESTING ACTIVITIES
		Purchase of Fixed assets	0		(6,279)
NET CASH USED IN			0		(6,279)
	INVESTING ACTIVITIES
FINANCING ACTIVITIES
		Sale of unissued stock
		Sale of common stock	81,750		6,650
		Related party notes	(20,577)		22,330
NET CASH REALIZED
	FROM FINANCING ACTIVITIES		61,173		28,980
INCREASE IN CASH
	AND CASH EQUIVALENTS		(2,245)		65
Cash and cash equivalents
	at the beginning of the period		2,245		0
CASH AND CASH EQUIVALENTS
	AT YEAR END		0	$	65

The accompanying notes are an integral part of these financial statements

Cinjet, Inc.

Notes to Condensed Financial Statements

For the nine months ending September 30, 2008 and 2007

Note A: Summary of Significant Accounting Policies

Basis of presentation

The accompanying interim condensed financial statements are unaudited, but in the opinion of management of Cinjet, Inc. (the Company), contain all adjustments, which include normal recurring adjustments, necessary to present fairly the financial position at September 30, 2008, the results of operations for the nine months ended September 30, 2008 and from the Date of Inception, February 28, 2007 to September 30, 2007, and cash flows for the nine months ended September 30, 2008 and from the Date of Inception, February 28, 2007 to September 30, 2007. The balance sheet as of December 31, 2007 is derived from the Company’s audited financial statements.

Certain information and footnote disclosures normally included in financial statements that have been prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although management of the Company believes that the disclosures contained in these financial statements are adequate to make the information presented therein not misleading. For further information, refer to the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2007, as filed with the Securities and Exchange Commission.

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expense during the reporting period. Actual results could differ from those estimates.

The results of operations for the nine months ended September 30, 2008 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2008.

Description of business

The Company was incorporated under the laws of the State of Nevada on February 28, 2007. The Company was formed to provide edgarizing services for publicly traded companies.

Earnings Per Share

Basic earnings per share is computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding during the period.

Note B: Recent Accounting Pronouncements

In September 2006, the FASB issued Statement of Financial Accounting Standards (“SFAS”) No. 157, Fair Value Measurements (“SFAS No. 157”). SFAS No. 157 defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measures required under other accounting pronouncements, but does not change existing guidance as to whether or not an instrument is carried at fair value. SFAS No. 157 is effective for fiscal years beginning after November 15, 2007. We are currently reviewing the provisions of SFAS No. 157 to determine the impact, if any, on our condensed consolidated financial statements.

In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities - Including an Amendment of FASB No. 115 ("SFAS No. 159"). SFAS No. 159 permits companies to choose to measure many financial instruments and certain other items at fair value in order to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. SFAS No. 159 is effective for our fiscal year ending March 31, 2009. We are currently assessing the impact, if any, of this statement on our condensed consolidated financial statements.

In December 2007, the FASB issued SFAS No. 141(R), Business Combinations, or (“SFAS 141(R)”). SFAS 141(R) establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree. SFAS 141(R) also provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. The provisions of SFAS 141(R) are effective for financial statements issued for fiscal years beginning after December 15, 2008. We are currently assessing the financial impact of SFAS 141(R) on our consolidated financial statements.

In December 2007, the FASB issued SFAS 160, Noncontrolling Interests in Consolidated Financial Statements — An Amendment of ARB No. 51(“SFAS 160”). SFAS 160 amends Accounting Research Bulletin No. 51, “Consolidated Financial Statements,” or ARB 51, to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This statement also amends certain of ARB 51’s consolidation procedures for consistency with the requirements of SFAS 141(R). In addition, SFAS 160 also includes expanded disclosure requirements regarding the interests of the parent and its noncontrolling interest. The provisions of SFAS 160 are effective for fiscal years beginning after December 15, 2008. Earlier adoption is prohibited. We are currently assessing the financial impact of SFAS 160 on our consolidated financial statements.

In March 2008, the FASB issued Statement of Financial Accounting Standards ("SFAS") No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161). SFAS 161 amends and expands the disclosure requirements of SFAS 133, Accounting for Derivative Instruments and Hedging Activities. It requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. This statement is effective for financial statements issued for fiscal years beginning after November 15, 2008.

Note C: Income taxes

The benefit for income taxes from operations consisted of the following components: current tax benefit of $9,522 resulting from a net loss before income taxes, and deferred tax expenses of $9,522 from a valuation allowance recorded against the deferred tax asset resulting from net operating losses. Net operating loss carryforward will expire in 2028.

The valuation allowance will be evaluated at the end of each year, considering positive and negative evidence about whether the asset will be realized. At the time, the allowance will either be increased or reduced; reduction would result in the complete elimination of the allowance if positive evidence indicates that the value of the deferred tax asset is no longer required.

Note D: Sale of stock

The Company received $88,400 as part of a private placement offering, which closed January 2, 2008.

Note E: Related Party Transaction

During the period ending September 30, 2008, the Company repaid a $23,207 loan from one of its shareholders, plus $1,687 in interest.

The company borrowed $2,630 in additional funds from shareholders or related parties as of September 30, 2008.

During the period ended September 30, 2008, the company accrued $48,000 in management fees to be paid to a related party for the management and operation of the edgarizing business. Of those fees accrued, the company paid $29,500 as of September 30, 2008.

Note F: Three Month Data – Third Quarter 2008 and 2007

2008 2007

Revenue 1,559 0

Cost of Sales 0 0

Gross Profit 1,559 0

Expenses (4,187) (4,542)

Operating Loss (2,628) (4,542)

Other Revenue and Expense (14) (705)

Three Month Loss $ (2,642) $ (5,247)

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENT NOTICE

This Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose any statements contained in this Form 10-Q that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate” or “continue” or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within our control. These factors include but are not limited to economic conditions generally and in the industries in which we may participate; competition within our chosen industry, including competition from much larger competitors; technological advances and failure to successfully develop business relationships.

Description of Business.

We were formed as a Nevada corporation on February 28, 2007 as Cinjet, Inc. We are in the business of offering our clients a wide array of virtual office and outsourcing services. This includes but is not limited to word processing, typing and transcription, resume writing, presentations, database management, as well as a variety of basic to more complex clerical and administrative functions. In addition, we are in the business of providing electronic filing services for clients who need to file registration statements, prospectuses, periodic filings and other documents required by the Securities and Exchange Commission. Our accountants have raised substantial doubts about our ability to continue as a going concern. Further, we rely on our sole employee, officer and director, Mrs. Grisham to conduct our business.

The SEC requires that certain corporate documents be filed in a special electronic computer format to comply with the Commission’s Electronic Data Gathering Analysis and Retrieval system known as EDGARâ. We convert client documents into the proscribed EDGARâ format and submit the converted document directly to the SEC via telecommunication.

We provide our clients with a secure, reliable, fast and cost-efficient service to file documents with the SEC. We have obtained the EDGARIZER software in order to automate the conversion process. EDGARIZER is a conversion program that reads formatted documents prepared with word processor or spreadsheet software and converts them into the required HTML format for EDGARâ filing. Using EDGARIZER eliminates a significant portion of labor that would otherwise be required without the software. The EDGARized documents are then transmitted directly to the SEC via the internet.

We also provide our clients a wide array of virtual office and outsourcing services. This includes but is not limited to word processing, typing and transcription, resume writing, presentations, database management, as well as a variety of basic to more complex clerical and administrative functions. The need for virtual offices services has increased with the use of the high-speed Internet and the downsizing that has occurred in many businesses.

Word processing is one of our specialties. We help our clients with scheduled or unscheduled clerical needs, including document editing, resume writing, and word processing of all kinds. In the future, we also intend offer monthly word processing and database management services for our clients’ ongoing projects that are too time consuming for them to deal with. Another service we are looking to offer is clerical service on demand. We will establish relationships with temp agencies to have access to administrative professionals to handle any workload overflow.

The virtual office side of our business is being designed to offer administrative support to business owners, executives and entrepreneurs. This service can be used on an "as needed" basis, eliminating the burden of having a second full-time employee. Using our virtual office services would provide several advantages by eliminating payroll taxes, insurance and benefits, equipment, space and time, while providing high quality professional support.Our revenues are derived from project-based client engagements. As a result, our revenues are difficult to predict from period to period.

We intend to target small and medium sized business and need to cultivate a significant base of clientele in order to generate a ratable flow of projects and revenue. We anticipate that most of our clients will have one major filing per year, along with three smaller projects to coincide with the filing of their quarterly reports. We do not believe that any single client will be our major revenue stream.

Generating revenue

We charge a basic flat fee for our service plus a per page cost. Our transmission fee is $100 per document and we charge $7.00 per page to put the document into EDGARâ format. Edits and Revisions are charged at the rate of $9.00 per page. We charge a flat $30.00 fee to process the application for SEC access codes. We also charge $30.00 per page for electronic scanning and clean up of pages and $30.00 per page to key pages directly into EDGARâ. We offer discounts to filers who have multiple filings.

Typically, we invoice for our services immediately following the EDGARâ transmission with terms net 30 days.

We are planning to charge $40 per hour for clerical and secretarial services, $95 for our resume services, and $300 per month for e-mail and telephone answering (up to 200 calls).

We do not have any written contracts with our clients. Our clients generally retain us on a project-by-project basis, rather than under long-term contracts. As a result, a client may not engage us for further services once a project is completed. We intend to establish our initial clientele via existing relationships with accountants, lawyers, venture capitalists, and other professionals.

Results of Operations for the Nine Month Periods Ended September 30, 2008 and 2007

The Company generated revenue of $27,982 with cost of good sold at $907 for the nine months ended September 30, 2008 compared to $-0- for the same period in 2007. The Company had general and administrative expenses during the nine months ended September 30, 2008 of $77,200 and interest expense of $102 resulting in a net loss of $50,228. During the same period in 2007, the Company experienced $18,264 in general and administrative expenses and $1,122 in interest expense resulting in a net loss of $19,386.

During the period ending September 30, 2008, the Company repaid a $23,207 loan from one of its shareholders, plus $1,687 in interest. The company borrowed $2,630 in additional funds from shareholders during the period ended September 30, 2008.

Liquidity and Capital Resources

At September 30, 2008, the Company’s total assets consisted of $-0- in cash and $27,882 in accounts receivable for total current assets of $27,882. Other assets include $2,484 in computer and equipment, $3,795 in software less $1,884 in accumulated depreciation. Total assets as of September 30, 2008 were $32,277. Liabilities at September 30, 2008 totaled $27,499 and consisted of $1,770 in accounts payable, $3,416 in credit card debt, $18,500 in fees to related parties, $369 for bank overdraft, $14 in accrued interest, $800 in state corporate tax payable and $2,630 in related party note payable.

The Company filed a registration statement on Form SB-2 with the Securities and Exchange Commission to register 600,000 shares of common stock for sale at a price of $.25 per share for a total of up to $150,000. The registration statement was declared effective on July 12, 2007. The Company completed its offering in January 2008 and raised $81,750 from the sale of 327,000 shares of common stock.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not required by smaller reporting companies.

ITEM 4T. CONTROLS AND PROCEDURES.

Our management with the participation and under the supervision of our Chief Executive Officer and Chief Financial Officer reviewed and evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) or 15d-15(e) of the Exchange Act) as of the end of the period covered by this report. Based upon their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of such period, our disclosure controls and procedures are effective and sufficient to ensure that we record, process, summarize, and report information required to be disclosed in the reports we filed under the Exchange Act within the time periods specified in the Securities and Exchange Commission's rules and regulations.

There were no changes in the Company's internal controls over financial reporting, known to the chief executive officer or the chief financial officer, that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

None.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

The Company did not sell or issue any securities during the period covered by this report.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

No matters were submitted during the period covered by this report to a vote of security holders.

ITEM 5. OTHER INFORMATION.

None

ITEM 6. EXHIBITS.

Copies of the following documents are included as exhibits to this report pursuant to Item 601 of Regulation S-K.

Exhibit No.	Title of Document	Location

31	Certification of the Principal Executive Officer/Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Attached

32	Certification of the Principal Executive Officer/Principal Financial Officer pursuant to U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*	Attached

* The Exhibit attached to this Form 10-Q shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to liability under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

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.

CINJET, INC.

Date: November 10, 2008 By: /s/ Cynthia Grisham

Cynthia Grisham, President and Chief Financial Officer