INTERDYNE CO - Quarter Report: 2016 December (Form 10-Q)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
| ☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended December 31, 2016
OR
| ☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from: Not applicable
Commission file number 0-4454
INTERDYNE COMPANY
(Exact name of registrant as specified in its charter)
|
CALIFORNIA
|
95-2563023
|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
26 Briarwood, Irvine, California
|
92604
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
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. 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 definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
|
Non-accelerated filer ☐
|
Smaller reporting company ☒
|
(do not check if a smaller reporting company)
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☒ No ☐
As of February 10, 2017, there were 39,999,942 shares of Common Stock, no par value, issued and outstanding.
Exhibit Index Page No.: 8
INTERDYNE COMPANY
FORM 10-Q
|
Page
|
||
|
PART I. FINANCIAL INFORMATION
|
||
|
Item 1.
|
Financial Statements
|
|
|
3
|
||
|
4
|
||
|
5
|
||
|
6
|
||
|
Item 2.
|
6
|
|
|
Item 3.
|
6
|
|
|
Item 4.
|
6
|
|
|
PART II. OTHER INFORMATION
|
||
|
Item 6.
|
8
|
|
|
9
|
||
PART I. FINANCIAL INFORMATION
INTERDYNE COMPANY
|
December 31, 2016
|
June 30, 2016
|
|||||||
|
(Unaudited)
|
(Audited)
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT ASSETS
|
||||||||
|
Cash
|
$
|
156,357
|
$
|
2,065
|
||||
|
Due from related party
|
-
|
194,104
|
||||||
|
Total current assets
|
$
|
156,357
|
$
|
196,169
|
||||
|
TOTAL ASSETS
|
$
|
156,357
|
$
|
196,169
|
||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
|
CURRENT LIABILITIES
|
||||||||
|
Accrued professional fees
|
$
|
1,500
|
$
|
6,600
|
||||
|
Accrued management fees to related party
|
1,500
|
21,500
|
||||||
|
Other accrued expenses
|
695
|
4,615
|
||||||
|
Total current liabilities
|
3,695
|
32,715
|
||||||
|
|
||||||||
|
STOCKHOLDERS' EQUITY
|
||||||||
|
Preferred stock, no par value, 50,000,000 shares authorized, 0 shares issued and outstanding
|
-
|
-
|
||||||
|
Common stock, no par value, 100,000,000 shares authorized, 39,999,942 shares issued and outstanding as of December 31, 2016 and June 30, 2016
|
500,000
|
500,000
|
||||||
|
Accumulated deficit
|
(347,338
|
)
|
(336,546
|
)
|
||||
|
TOTAL STOCKHOLDERS' EQUITY
|
$
|
152,662
|
$
|
163,454
|
||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
156,357
|
$
|
196,169
|
||||
The accompanying notes are an integral part of these unaudited financial statements.
INTERDYNE COMPANY
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
|
December 31, 2016
|
December 31, 2015
|
December 31, 2016
|
December 31, 2015
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Professional fees
|
$
|
1,500
|
$
|
4,665
|
$
|
3,796
|
$
|
8,165
|
||||||||
|
General and administrative
|
2,400
|
2,083
|
4,296
|
4,069
|
||||||||||||
|
Management fees to related party
|
1,500
|
1,500
|
3,000
|
3,000
|
||||||||||||
|
Total expenses
|
5,400
|
8,248
|
11,092
|
15,234
|
||||||||||||
|
OPERATING LOSS
|
(5,400
|
) |
(8,248
|
) |
(11,092
|
) |
(15,234
|
) | ||||||||
|
OTHER INCOME
|
||||||||||||||||
|
Interest from related party
|
-
|
4,061
|
1,100
|
8,131
|
||||||||||||
|
Total other income
|
-
|
4,061
|
1,100
|
8,131
|
||||||||||||
|
LOSS BEFORE INCOME TAXES
|
(5,400
|
)
|
(4,187
|
)
|
(9,992
|
)
|
(7,103
|
)
|
||||||||
|
INCOME TAX EXPENSE
|
-
|
-
|
(800
|
)
|
(800
|
)
|
||||||||||
|
NET LOSS
|
$
|
(5,400
|
)
|
$
|
(4,187
|
)
|
$
|
(10,792
|
)
|
$
|
(7,903
|
)
|
||||
|
NET LOSS PER COMMON SHARE
|
||||||||||||||||
|
BASIC AND DILUTED
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
||||
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
|
||||||||||||||||
|
BASIC AND DILUTED
|
39,999,942
|
39,999,942
|
39,999,942
|
39,999,942
|
||||||||||||
The accompanying notes are an integral part of these unaudited financial statements.
INTERDYNE COMPANY
|
Six Months Ended
|
||||||||
|
December 31, 2016
|
December 31, 2015
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
|
Net loss
|
$
|
(10,792
|
)
|
$
|
(7,903
|
)
|
||
|
Adjustments to reconcile net loss to net cash used in operating activities
|
||||||||
|
Changes in operating assets and liabilities
|
||||||||
|
Interest due from related party
|
(1,100
|
)
|
(8,131
|
)
|
||||
|
Accrued expenses
|
(29,020
|
)
|
742
|
|||||
|
Net cash used in operating activities
|
(40,912
|
)
|
(15,292
|
)
|
||||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
|
Cash received from related party
|
195,204
|
18,975
|
||||||
|
Net cash provided by investing activities
|
195,204
|
18,975
|
||||||
|
NET INCREASE IN CASH
|
154,292
|
3,683
|
||||||
|
CASH, BEGINNING OF PERIOD
|
2,065
|
7,565
|
||||||
|
CASH, END OF PERIOD
|
$
|
156,357
|
$
|
11,248
|
||||
|
Supplemental Cash Flow Disclosures
|
||||||||
|
Income taxes paid
|
$
|
800
|
$
|
800
|
||||
|
Interest paid
|
-
|
-
|
||||||
The accompanying notes are an integral part of these unaudited financial statements.
INTERDYNE COMPANY
Note 1. Interim Financial Statements
The accompanying financial statements are unaudited, but in the opinion of the management of Interdyne Company (“the Company”), contain all adjustments, consisting of only normal recurring accruals, necessary to present fairly the financial position as of December 31, 2016 and the results of operations for the three and six months ended December 31, 2016 and 2015 and changes in cash flows for the six months ended December 31, 2016 and 2015. Certain information and footnote disclosures normally included in financial statements that have been prepared in accordance with accounting principles generally accepted in the United States 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 footnotes thereto included in the Company's Annual Report in Form 10-K as of June 30, 2016, as filed with the Securities and Exchange Commission. The results of operations for the six months ended December 31, 2016 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending June 30, 2017.
Note 2. Changes in Significant Accounting Policies
There are no newly issued accounting pronouncements that the Company expects to have a material effect on the financial statements and there have been no changes in our significant accounting policies.
Note 3. Related Party Transactions
In prior years, the Company made advances to Acculogic, Inc., a related company through common ownership and management. The advances bear interest at 8.5% per annum and is payable on demand. The balance, including interest, was guaranteed by AMT Datasouth Corp., an affiliated company controlled by the CEO of the Company. The balances due from Acculogic, Inc. as of December 31, 2016 and June 30, 2016 were $0 and $194,104, respectively. As the total amount due from Acculogic, Inc. was repaid in full in July 2016, the abovementioned guarantee ceased to be valid.
An officer of the Company charged a management fee totaling $3,000 for each of the six months ended December 31, 2016 and 2015 for the use of a home office, accounting and other services. The balances due to this officer as of December 31, 2016 and June 30, 2016 were $1,500 and $21,500, respectively.
The Company is at present dormant and is looking for new opportunity.
N/A
Our management, comprising the Chief Executive Officer and Chief Financial Officer/Principal Accounting Officer, is responsible for establishing and maintaining disclosure controls and procedures for the Company. It has designed such disclosure controls and procedures to ensure that material information is made known to it, particularly during the period in which this report was prepared.
As of the end of the period covered by this report, our management carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (or Exchange Act)). Based on this evaluation, as of the end of the period covered by this report, our management has concluded that our disclosure controls and procedures are not effective considering the fact that the Company, being dormant, has only one person on staff, the Chief Financial Officer/Principal Accounting Officer, to (1) handle all accounting transactions (consisting of primarily collecting funds from a related party and paying all expenses, including fees to this same officer); (2) reconcile the bank account, and (3) prepare all financial statement disclosures. The above duties have no supervision or review to insure proper segregation of duties and review of disclosures. As a result, material weaknesses over disclosure controls and procedures exist.
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Our management conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2016 based on the criteria set forth in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organization of the Treadway Commission. Based on this evaluation, our management has concluded that our internal control over financial reporting was not effective as of December 31, 2016 considering the fact that the Company, being dormant, has only one person on staff to handle all duties of the Company. There is no supervision or review to insure proper internal control over financial reporting. As a result, material weakness over internal control over financial reporting exists.
Our independent auditors have not audited and are not required to audit this assessment of our internal control over financial reporting for the period covered by this report.
During our most recent fiscal three months, there has not occurred any change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART II
OTHER INFORMATION
| Item 1. |
Legal Proceedings
|
None
| Item 1A. |
Risk Factors.
|
None
| Item 2. |
Unregistered Sale of Equity Securities and Use of Proceeds.
|
None
| Item 3. |
Defaults upon Senior Securities.
|
None
| Item 4. |
Submission of Matters to a Vote of Security Holders.
|
None.
| Item 5. |
Other Information.
|
None
|
a.
|
Certification of the Company's Chief Executive Officer, Sun Tze Whang, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
|
b.
|
Certification of the Company's Chief Financial Officer/Principal Accounting Officer, Kit H. Tan, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
|
c.
|
Certification of the Company's Chief Executive Officer and Chief Financial Officer/Principal Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
|
d.
|
101.INS
|
XBRL Instance Document
|
|
|
e.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
f.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
g.
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
h.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
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.
|
INTERDYNE COMPANY
|
||
|
(Registrant)
|
||
|
Date: February 10, 2017
|
By:
|
/s/Sun Tze Whang
|
|
Sun Tze Whang
|
||
|
Director /Chief Executive Officer
|
||
|
By:
|
/s/Kit H. Tan
|
|
|
Kit H. Tan
|
||
|
Director /Chief Financial Officer/Principal Accounting Officer
|
||
9