INTERDYNE CO - Quarter Report: 2016 September (Form 10-Q)

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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)

Large accelerated filer ☐	Accelerated filer☐
Non-accelerated filer☐	Smaller reporting company☒
(do not check if a smaller reporting company)

		Page
PART I.   FINANCIAL INFORMATION
Item 1.	Financial Statements
	Balance Sheets as of September 30, 2016 and June 30, 2016	3
	Statements of Operations for the Quarters ended September 30, 2016 and 2015	4
	Statements of Cash Flows for the Quarters ended September 30, 2016 and 2015	5
	Notes to Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	6
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	6
Item 4.	Controls and Procedures.	6
PART II.  OTHER INFORMATION
Item 6.	Exhibits	8
Signatures		9

		9/30/2016				6/30/2016
		(Unaudited)				(Audited)
ASSETS
CURRENT ASSETS
Cash		$	169,722			$	2,065
Due from related party			-				194,104
Total current assets		$	169,722			$	196,169
TOTAL ASSETS		$	169,722			$	196,169
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accrued professional fees		$	4,046			$	6,600
Accrued management fees to related party			3,000				21,500
Other accrued expenses			4,614				4,615
Total current liabilities		$	11,660			$	32,715
STOCKHOLDERS' EQUITY
Preferred stock, no par value, 50,000,000 shares authorized; 0 share issued and outstanding			-				-
Common stock, no par value, 100,000,000 shares authorized; 39,999,942 shares issued and outstanding as of 9/30/2016 and 6/30/2016, respectively		$	500,000			$	500,000
Accumulated deficit			(341,938	)			(336,546	)
TOTAL STOCKHOLDERS' EQUITY		$	158,062			$	163,454
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	169,722			$	196,169

		Three Months Ended
		9/30/2016				9/30/2015
		(Unaudited)				(Unaudited)
OPERATING EXPENSES:
Professional fees		$	2,296			$	3,500
General and administrative			1,896				1,986
Management fees to related party			1,500				1,500
Total expenses			5,692				6,986
OPERATING LOSS			(5,692	)			(6,986	)
OTHER INCOME:
Interest from related party			1,100				4,070
Total other income			1,100				4,070
LOSS BEFORE INCOME TAXES			(4,592	)			(2,916	)
INCOME TAXES EXPENSE			(800	)			(800	)
NET LOSS		$	(5,392	)		$	(3,716	)
NET LOSS PER COMMON SHARE
BASIC AND DILUTED		$	(0.00	)		$	(0.00	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
BASIC AND DILUTED			39,999,942				39,999,942

		Three Months Ended
		9/30/2016				9/30/2015
		(Unaudited)				(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$	(5,392	)		$	(3,716	)
Adjustments to reconcile net loss to net cash used in operating activities
Changes in operating assets and liabilites
Interest due from related party			(1,100	)			(4,070	)
Accrued expenses			(21,055	)			3,260
Net cash used in operating activities			(27,547	)			(4,526	)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from related party			195,204				9,000
Net cash provided by investing activities			195,204				9,000
NET INCREASE IN CASH			167,657				4,474
CASH, BEGINNING OF PERIOD			2,065				7,565
CASH, END OF PERIOD		$	169,722			$	12,039
Supplemental Cash Flow Disclosures:
Income taxes paid		$	800			$	800
Interest paid		$	-			$	-

INTERDYNE COMPANY

NOTES TO UNAUDITED FINANCIAL STATEMENTS

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 at September 30, 2016 and the results of operations for the three months ended September 30, 2016 and 2015 and changes in cash flows for the three months ended September 30, 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 three months ended September 30, 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 the significant accounting policies.

Note 3. Related party transactions

In prior years, the Company made advances to Acculogic, Inc., an affiliated company through common ownership and management.  The advances bear interest at 8.5% per annum, 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 September 30, 2016 and June 30, 2016 were $0 and $194,104, respectively. During the three months ended September 30, 2016, the total amount due from Acculogic, Inc. was repaid in full and consequently the guarantee ceased to be valid.

An officer of the Company charged a management fee totaling $1,500 for each of the three months ended September 30, 2016 and 2015 for the use of a home office, accounting and other services. The balances due to this officer were $3,000 and $21,500 as of September 30, 2016 and June 30, 2016, respectively.

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

The Company is at present dormant and is looking for new opportunity.

The cash needs of the Company will be funded by collections from amount due from its affiliate.

Item 3

Quantitative and Qualitative Disclosures about Market Risk

N/A

Item 4.

Controls and Procedures

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 September 30, 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 June 30, 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

Item 6.

Exhibits

 

	a.	31.1	Certification of the Company's Chief Executive Officer, Sun Tze Whang, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
	b.	31.2	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.	32	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

 

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.

 

 

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