LIQTECH INTERNATIONAL INC - Quarter Report: 2010 June (Form 10-Q)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X . QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2010
or
. 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: 000-53769
BLUE MOOSE MEDIA, INC.
(Exact name of registrant as specified in its charter)
Nevada | 20-1431677 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
|
|
11807 Elk Drive Riverton, UT | 84065 |
(Address of principal executive offices) | (Zip Code) |
801-597-7797
(Registrants telephone number, including area code)
11807 Elk Dr.
Riverton, UT 84065
(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. X . Yes . No
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 X . 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 X .
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). X . Yes . No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. . Yes . No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuers classes of common stock, as of July 28, 2010: 41,371,750
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 June 30, 2010 and 2009 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 Companys December 31, 2009 audited financial statements. The results of operations for the periods ended June 30, 2010 and 2009 are not necessarily indicative of the operating results for the full year.
2
BLUE MOOSE MEDIA, INC. | |||||||||
(A DEVELOPMENT STAGE COMPANY) | |||||||||
CONDENSED BALANCE SHEETS | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| June 30, 2010 (Unaudited) |
| December 31, 2009 (Audited) |
|
ASSETS |
|
|
|
|
|
|
|
| |
| Current Assets |
|
|
|
|
| |||
|
| Cash |
| $ | 20,910 | $ | 5,600 |
| |
|
|
| Total Current Assets |
| 20,910 |
| 5,600 |
| |
|
|
|
|
|
|
|
|
|
|
| Long-Term Assets |
|
|
|
|
| |||
|
| Property and Equipment, net |
| 147 |
| 221 |
| ||
|
|
| Total Long-term Assets |
| 147 |
| 221 |
| |
|
|
|
|
|
|
|
|
|
|
| Total Assets | $ | 21,057 | $ | 5,821 |
| |||
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
|
|
|
|
| ||||
| Current Liabilities |
|
|
|
|
| |||
|
| Accounts Payable | $ | 20,904 | $ | 11,277 |
| ||
|
| Advances Payable - Related Party |
| 1,325 |
| 1,325 |
| ||
|
|
| Total Liabilities |
| 22,229 |
| 12,602 |
| |
|
|
|
|
|
|
|
|
|
|
| Stockholders' Equity (Deficit) |
|
|
|
|
| |||
|
| Preferred Stock, $0.001 par value, |
|
|
|
|
| ||
|
|
| 10,000,000 shares authorized. |
|
|
|
|
| |
|
|
| No shares issued or outstanding |
| - |
| - |
| |
|
| Common Stock, $0.001 par value, |
|
|
|
|
| ||
|
|
| 100,000,000 shares authorized. |
|
|
|
|
| |
|
|
| 41,371,750 and 21,371,750 shares |
|
|
|
|
| |
|
|
| issued and outstanding, respectively |
| 41,372 |
| 21,372 |
| |
|
| Additional Paid in Capital |
| 82,628 |
| 82,628 |
| ||
|
| Deficit accumulated during development stage |
| (125,172) |
| (110,781) |
| ||
|
|
| Total Stockholders' Equity (Deficit) |
| (1,172) |
| (6,781) |
| |
|
|
|
|
|
|
|
|
|
|
| Total Liabilities and Stockholders' Equity (Deficit) | $ | 21,057 | $ | 5,821 |
| |||
|
|
|
|
|
|
|
|
|
|
Note: The Balance Sheet at December 31, 2009 was taken from the audited financial statements at that date and condensed. | |||||||||
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these unaudited condensed financial statements. |
3
BLUE MOOSE MEDIA, INC. | |||||||||||||
(A DEVELOPMENT STAGE COMPANY) | |||||||||||||
CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the three months ended June 30, |
| For the six months ended June 30, |
| From Inception through June 30, | ||||
|
|
|
|
| 2010 (unaudited) |
| 2009 (unaudited) |
| 2010 (unaudited) |
| 2009 (unaudited) |
| 2010 (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
| $ | - | $ | - | $ | - | $ | - | $ | 24,651 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and Administrative Costs |
|
| 6,627 |
| 392 |
| 14,391 |
| 2,683 |
| 143,435 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Operations |
|
| (6,627) |
| (392) |
| (14,391) |
| (2,683) |
| (118,784) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
| - |
| - |
| - |
| - |
| 6,388 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Before income Taxes |
|
| (6,627) |
| (392) |
| (14,391) |
| (2,683) |
| (125,172) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax - Current |
|
| - |
| - |
| - |
| - |
| - | ||
Income Tax - Deferred |
|
| - |
| - |
| - |
| - |
| - | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
| $ | (6,627) | $ | (392) | $ | (14,391) | $ | (2,683) | $ | (125,172) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss per Common Share - Basic and Diluted |
| $ | (0.00) | $ | (0.00) | $ | (0.00) | $ | (0.00) |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding - Basic and Diluted |
|
| 36,976,146 |
| 1,371,750 |
| 29,217,054 |
| 1,371,750 |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| The accompanying notes are an integral part of these unaudited condensed financial statements. |
|
|
|
|
4
BLUE MOOSE MEDIA, INC. | ||||||||||
(A DEVELOPMENT STAGE COMPANY) | ||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||
| ||||||||||
|
|
|
|
|
| For the six months ended June 30, |
| For the six months ended June 30, |
| From Inception through |
|
|
|
|
|
| 2010 (unaudited) |
| 2009 (unaudited) |
| June 30, 2010 (unaudited) |
Cash Flows from Operating Activities: |
|
|
|
|
|
| ||||
| Net loss |
|
| $ | (14,391) | $ | (2,683) | $ | (125,172) | |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
| |||
|
| Depreciation Expense |
| 74 |
| 74 |
| 16,199 | ||
| Change in operating assets and liabilities |
|
|
|
|
|
| |||
|
| Accrued Interest |
| - |
| - |
| - | ||
|
| Accounts Payable |
| 9,627 |
| (4,436) |
| 20,904 | ||
|
|
| Net cash flows used in operating activities |
| (4,690) |
| (7,045) |
| (88,069) | |
Cash Flows from Investing Activities: |
|
|
|
|
|
| ||||
| Purchase of Fixed Assets |
| - |
| - |
| (16,346) | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash flows used in investing activities |
| - |
| - |
| (16,346) | |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities: |
|
|
|
|
|
| ||||
| Proceeds from sale of common stock |
| 20,000 |
| - |
| 124,000 | |||
| Proceeds from notes payable - related party |
| - |
| - |
| 37,000 | |||
| Payments on notes payable - related party |
| - |
| - |
| (37,000) | |||
| Proceeds from advances payable - related party |
| - |
| - |
| 22,126 | |||
| Payments on advances payable - related party |
| - |
| - |
| (20,801) | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash flows provided by financing activities |
| 20,000 |
| - |
| 125,325 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net change in cash |
| 15,310 |
| (7,045) |
| 20,910 | |
|
|
|
|
|
|
|
|
|
|
|
Cash, beginning of period |
| 5,600 |
| 9,435 |
| - | ||||
|
|
|
|
|
|
|
|
|
|
|
Cash, end of period | $ | 20,910 | $ | 2,390 | $ | 20,910 | ||||
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures of Cash Flow Information: |
|
|
|
|
|
| ||||
| Cash paid during the period for: |
|
|
|
|
|
| |||
|
| Interest |
|
| - |
| - |
| 6,388 | |
|
| Income Taxes |
| - |
| - |
| - | ||
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures of Non-Cash Investing and Financing Activities: |
|
|
|
| ||||||
| For the Periods Ended June 30, 2010 and 2009: |
|
|
|
|
|
| |||
|
| None |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these unaudited condensed financial statements. |
|
|
5
BLUE MOOSE MEDIA, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
Note 1 - Organization and Summary of Significant Accounting Policies
Organization
Blue Moose Media, Inc., (the Company") was incorporated under the laws of the State of Nevada on July 1 , 2004. The Company's previous business included providing video, DVD, CD-ROM and DVD-ROM production and design services and photography and videos of special events, including weddings. Currently the Company is seeking other business opportunities. The Company is considered a development stage company.
Basis of Presentation
The interim financial information of the Company as of June 30, 2010 and for the three and six month period ended June 30, 2010 and 2009 is unaudited, and the balance sheet as of December 31, 2009 is derived from audited financial statements. The accompanying financial statements have been prepared in accordance with U. S. generally accepted accounting principles for interim financial statements. Accordingly, they omit or condense footnotes and certain other information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles. The accounting policies followed for quarterly financial reporting conform with the accounting policies disclosed in Note 1 to the Notes to Financial Statements included in the Company's annual Form 10-K filing for the year ended December 31, 2009. In the opinion of management, all adjustments that are necessary for a fair presentation of the financial information for the interim periods reported have been made. All such adjustments are of a normal recurring nature. The results of operations for the three and six month periods ended June 30, 2010 are not necessarily indicative of the results that can be expected for the entire year ending December 31, 2010. The unaudited financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company's annual Form 10-K filing for the year ended December 31, 2009.
Note 2 - Property and Equipment
The Company's property and equipment consisted of the following as of June 30, 2010 and December 31, 2009:
Property & Equipment: |
| June 30, 2010 |
| December 31, 2009 |
Furniture | $ | 1,030 | $ | 1,030 |
Computer Equipment |
| 15,316 |
| 15,316 |
Total Property & Equipment |
| 16,346 |
| 16,346 |
Accumulated Depreciation |
| (16,199) |
| (16,125) |
Net Property & Equipment | $ | 147 | $ | 221 |
Depreciation expense for the three months ended June 30, 2010 and 2009 was $37 and $37, respectively. Depreciation expense for the six months ended June 30, 2010 and 2009 was $74 and $74, respectively.
Note 3 - Related Party Transactions and Payable
Prior to June 30, 2010 an officer/shareholder of the Company paid expenses on behalf of the Company. The advances bear no interest and are due on demand. At June 30, 2010 and December, 31, 2009 the Company owed $1,325 to the shareholder.
6
Note 4 - Capital Stock
The Company has authorized 10,000,000 shares of $0.001 par value preferred stock with such rights, preferences and designations and to be issued in such series as determined by the Board of Directors. No shares are issued and outstanding at June 30, 2010.
The Company has authorized 100,000,000 shares of $0.001 par value common stock. During July 2004, the Company issued 1,250,000 shares of common stock for cash of $5,000 at $0.004 per share. In November 2004, the Company issued 33,500 shares of common stock for cash of $13,400 at $0.40 per share. During April 2005, the Company issued 37,750 shares of common stock for cash of $15,100 at $0.40 per share. During April 2006, the Company issued 50,500 shares of common stock for cash of $50,500 at $1.00 per share.
On August 6, 2009, the Company effected a one for four reverse stock split. The financial statements have been restated, for all periods presented, to reflect the stock split. After the split the Company had 1,371,750 shares outstanding.
On August 12, 2009, the Company issued 20,000,000 shares of post-split common stock for cash of $20,000 at $0.001 per share. This transaction resulted in a change in control of the Company.
On April 20, 2010, the Company issued 20,000,000 shares of post-split common stock for cash of $20,000 at $0.001 per share. This transaction resulted in a change in control of the Company.
Note 5 Fair Value of Financial Instruments
The Companys financial instruments consist of cash and accounts payable. The carrying amount of cash and accounts payable approximates fair value because of the short-term nature of these items.
Note 6 - Loss per Share
The following data shows the amounts used in computing loss per share for the three and six month periods ended June 30, 2010 and 2009:
|
| For the Three Months Ended June 30, |
| For the Six Months Ended June 30, | ||||
|
| 2010 (unaudited) |
| 2009 (unaudited) |
| 2010 (unaudited) |
| 2009 (unaudited) |
Loss available to common stockholders (numerator) | $ | (6,627) | $ | 392) | $ | (14,391) | $ | (2,683) |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding during the period used in loss per share (denominator) |
| 36,976,146 |
| 1,371,750 |
| 29,217,054 |
| 1,371,750 |
Dilutive loss per share was not presented as the Company had no common equivalent shares for all periods presented that would affect the computation of diluted loss per share.
Note 7 - Going Concern
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. However, the Company was only recently formed and has a limited operating history. The Company is currently seeking a business opportunity. These factors raise substantial doubt about the ability of the Company to continue as a going concern. In this regard management is proposing to raise any necessary additional funds not provided by operations through loans or additional sales of its common stock. There is no assurance that the Company will be successful in raising this additional capital or in sustaining profitable operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.
Note 8 - Subsequent Events
The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and concluded there are no additional events to disclose.
7
ITEM 2. PLAN OF OPERATIONS
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR RESULTS OF OPERATION
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.
Blue Moose Media, Inc. (the Company) was originally incorporated in the State of Nevada on July 1, 2004 for the purpose of engaging in the business of providing video, DVD, CD-ROM and DVD-ROM production and design services. The Company originally focused on products to store and organize electronically all information related to an individuals residential home, as well as wedding and event videos. During the period from inception until the end of 2007, the Company produced a handful of sample CD-ROMs for local builders, realtors and lenders based on actual homes in our marketing area. The Company encountered difficulty in obtaining the information required for its product content and lack of a market willing to purchase the product. Although the Company did produce a number of wedding videos, low price points from competition forced the Company to abandon this product. Subsequently, the Company became inactive. Since January 2008, the Company operates as a development stage enterprise seeking to enter into a reverse acquisition with an existing business or otherwise acquire an operating entity.
Since ceasing its media operations at year end December 31, 2007, the Company has focused its efforts on seeking a business opportunity. The Company will attempt to locate and negotiate with a business entity for the merger of that target company into the Company. In certain instances, a target company may wish to become a subsidiary of the Company or may wish to contribute assets to the Company rather than merge. No assurances can be given that the Company will be successful in locating or negotiating with any target company. The Company will provide a method for a foreign or domestic private company to become a reporting (public) company whose securities are qualified for trading in the United States secondary market.
The Company intends to seek, investigate, and if warranted, acquire an interest in a business opportunity. We are not restricting our search to any particular industry or geographical area. We may therefore engage in essentially any business in any industry. Our management has unrestricted discretion in seeking and participating in a business opportunity, subject to the availability of such opportunities, economic conditions and other factors.
The selection of a business opportunity in which to participate is complex and extremely risky and will be made by management in the exercise of its business judgment. There is no assurance that we will be able to identify and acquire any business opportunity which will ultimately prove to be beneficial to our company and shareholders.
Because we have no specific business plan or expertise, our activities are subject to several significant risks. In particular, any business acquisition or participation we pursue will likely be based on the decision of management without the consent, vote, or approval of our shareholders.
Sources of Opportunities
We anticipate that business opportunities may arise from various sources, including officers and directors, professional advisers, securities broker-dealers, venture capitalists, members of the financial community, and others who may present unsolicited proposals.
We will seek potential business opportunities from all known sources, but will rely principally on the personal contacts of our officers and directors as well as indirect associations between them and other business and professional people. Although we do not anticipate engaging professional firms specializing in business acquisitions or reorganizations, we may retain such firms if management deems it in our best interests. In some instances, we may publish notices or advertisements seeking a potential business opportunity in financial or trade publications.
8
Criteria
We will not restrict our search to any particular business, industry or geographical location. We may acquire a business opportunity in any stage of development. This includes opportunities involving start up or new companies. In seeking a business venture, management will base their decisions on the business objective of seeking long-term capital appreciation in the real value of our company. We will not be controlled by an attempt to take advantage of an anticipated or perceived appeal of a specific industry, management group, or product.
In analyzing prospective business opportunities, management will consider the following factors:
·
available technical, financial and managerial resources;
·
working capital and other financial requirements;
·
the history of operations, if any;
·
prospects for the future;
·
the nature of present and expected competition;
·
the quality and experience of management services which may be available and the depth of the management;
·
the potential for further research, development or exploration;
·
the potential for growth and expansion;
·
the potential for profit;
·
the perceived public recognition or acceptance of products, services, trade or service marks, name identification; and other relevant factors.
Generally, our management will analyze all available factors and make a determination based upon a composite of available facts, without relying on any single factor.
Methods of Participation of Acquisition
Management will review specific business and then select the most suitable opportunities based on legal structure or method of participation. Such structures and methods may include, but are not limited to, leases, purchase and sale agreements, licenses, joint ventures, other contractual arrangements, and may involve a reorganization, merger or consolidation transactions. Management may act directly or indirectly through an interest in a partnership, corporation, or other form of organization.
Procedures
As part of our investigation of business opportunities, officers and directors may meet personally with management and key personnel of the firm sponsoring the business opportunity. We may visit and inspect material facilities, obtain independent analysis or verification of certain information provided, check references of management and key personnel, and conduct other reasonable measures.
We will generally ask to be provided with written materials regarding the business opportunity. These materials may include the following:
·
descriptions of product, service and company history; management resumes;
·
financial information;
·
available projections with related assumptions upon which they are based;
·
an explanation of proprietary products and services;
·
evidence of existing patents, trademarks or service marks or rights thereto;
·
present and proposed forms of compensation to management;
·
a description of transactions between the prospective entity and its affiliates;
·
relevant analysis of risks and competitive conditions;
·
a financial plan of operation and estimated capital requirements;
·
and other information deemed relevant.
Competition
We expect to encounter substantial competition in our efforts to acquire a business opportunity. The primary competition is from other companies organized and funded for similar purposes, small venture capital partnerships and corporations, small business investment companies and wealthy individuals.
9
Employees
We do not currently have any employees but rely upon the efforts of our officer and director to conduct our business. We do not have any employment or compensation agreements in place with our officers and directors although they are reimbursed for expenditures advanced on our behalf.
Plan of Operation
The Company is seeking to acquire assets or shares of an entity actively engaged in business which generates revenues. The Company has no particular acquisitions in mind and has not entered into any negotiations regarding such an acquisition. None of the Companys officers, directors, promoters or affiliates have engaged in any substantive contact or discussions with any representative of any other company regarding the possibility of an acquisition or merger between the Company and such other company as of the date of this quarterly report. The Board of Directors intends to obtain certain assurances of value of the target entitys assets prior to consummating such a transaction. Any business combination or transaction will likely result in a significant issuance of shares and substantial dilution to present stockholders of the Company.
The Companys current operating plan is to continue searching for potential businesses, products, technologies and companies for acquisition and to handle the administrative and reporting requirements of a public company. To demonstrate our commitment to maintaining ethical reporting and business practices, we adopted a Code of Ethics and Business Conduct.
The Company has, and will continue to have, no capital with which to provide the owners of business opportunities with any significant cash or other assets. However, management believes the Company will be able to offer owners of acquisition candidates the opportunity to acquire a controlling ownership interest in a publicly registered company without incurring the cost and time required to conduct an initial public offering. The owners of the acquisition candidate will, however, incur significant legal and accounting costs in connection with the acquisition of a business opportunity, including the costs of preparing Form 8-Ks, 10-Ks, 10-Qs, agreements and related reports and documents.
Results of Operations
Three Months Ended June 30, 2010 Compared to the Three Months Ended June 30, 2009
We did not generate any revenue for the three months ended June 30, 2010 or 2009. For the three months ended June 30, 2010 we had general and administrative expenses of $6,627 for a net loss of the same amount compared to general and administrative expenses of $392 for a net loss of the same amount for the three months ended June 30, 2009. Our increase in expenses is attributed to our auditing and legal fees associated with our filing a Form 10 registration statement with the Securities and Exchange Commission.
Six Months Ended June 30, 2010 Compared to the Six Months Ended June 30, 2009
We did not generate any revenue for the six months ended June 30, 2010 or 2009. For the six months ended June 30, 2010 we had general and administrative expenses of $14,391 for a net loss of the same amount compared to general and administrative expenses of $2,683 for a net loss of the same amount for the six months ended June 30, 2009. Our increase in expenses is attributed to our auditing and legal fees associated with our filing a Form 10 registration statement with the Securities and Exchange Commission.
Liquidity and Capital Resources
The Companys balance sheet as of June 30, 2010, reflects total assets of $20,910 in cash and $147 in property and equipment, net. As of June 30, 2010, our liabilities were $22,229 which included $20,904 in accounts payable, and $1,325 in advances payable to a related party.
Prior to June 30, 2010 an officer/shareholder of the Company paid expenses on behalf of the Company. The advances bear no interest and are due on demand. At June 30, 2010 and December, 31, 2009 the Company owed $1,325 to the shareholder.
We anticipate our expenses to be limited to accounting, auditing, legal and filing fees associated with continuing our reporting status with the Securities and Exchange Commission along with miscellaneous expenses related to our corporate existence. We estimate our ongoing expenses to be $20,000 per year. We do not have any commitments for capital expenditures nor do we anticipate entering any such commitments. We received $20,000 from our recent sale of stock in April 2010 and believe this amount will be sufficient to cover our expenses for the next year.
10
In the past we have relied on advances from our president to cover our operating costs. Management anticipates that we will receive sufficient advances from our president to meet our needs through the next 12 months. However, there can be no assurances to that effect. Our need for capital may change dramatically if we acquire an interest in a business opportunity during that period. At present, we have no understandings, commitments or agreements with respect to the acquisition of any business venture, and there can be no assurance that we will identify a business venture suitable for acquisition in the future. Further, we cannot assure that we will be successful in consummating any acquisition on favorable terms or that we will be able to profitably manage any business venture we acquire. Should we require additional capital, we may seek additional advances from officers, sell common stock or find other forms of debt financing.
The Company has no other assets or line of credit, other than that which present management may agree to extend to or invest in the Company, nor does it expect to have one before a merger is effected. The Company will carry out its business plan as discussed above. The Company cannot predict to what extent its liquidity and capital resources will be diminished prior to the consummation of a business combination or whether its capital will be further depleted by the operating losses (if any) of the business entity which the Company may eventually acquire.
Our current operating plan is to continue searching for potential businesses, products, technologies and companies for acquisition and to handle the administrative and reporting requirements of a public company.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not required by smaller reporting companies.
ITEM 4T. CONTROLS AND PROCEDURES.
(a)
Evaluation of Disclosure Controls and Procedures.
As required by Rule 13a-15(b) under the Securities Exchange Act of 1934 (the Exchange Act), we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls as of the end of the period covered by this report, June 30, 2010. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, Mr. Gordon Tattersall (the Certifying Officer). Based upon that evaluation, our Certifying Officer concluded that as of the end of the period covered by this report, June 30, 2010, our disclosure controls and procedures are effective in timely alerting management to material information relating to us and required to be included in our periodic filings with the Securities and Exchange Commission (the Commission).
Our officer further concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by the issuer in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms and are also effective to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our chief executive officer and chief financial officer, to allow time for decisions regarding required disclosure.
(b)
Changes in Internal Control over Financial Reporting. 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.
On August 12, 2009, the Company sold 20,000,000 shares of restricted common stock for $20,000 cash to an accredited investor, Mr. Adam Krommenhoek. The shares were sold in a private transaction, to a single investor, not involving any public offering without registration and pursuant to an exemption under Regulation D, Rule 506 and Section 4(2) of the Securities Act of 1933, as amended. No brokers or commissions were paid on the transaction.
On April 20, 2010, the Company sold 20,000,000 shares of restricted common stock for $20,000 cash to an accredited investor, Mr. Gordon Tattersall. The shares were sold in a private transaction, to a single investor, not involving any public offering without registration and pursuant to an exemption under Regulation D, Rule 506 and Section 4(2) of the Securities Act of 1933, as amended. No brokers or commissions were paid on the transaction.
11
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 AND REPORTS ON FORM 8-K.
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.
BLUE MOOSE MEDIA, INC.
Date: August 2, 2010
By: /s/ Gordon Tattersall
Gordon Tattersall, President and Chief Financial Officer
12