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Modular Medical, Inc. - Quarter Report: 2009 September (Form 10-Q)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

U. S. Securities and Exchange Commission


Washington, D.C. 20549

______________

FORM 10-Q

______________

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

For the first quarter ended September 30, 2009

[  ] 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: 000-49671

BEAR LAKE RECREATION, INC.

(Exact name of issuer as specified in its charter)



Nevada

87-0620495

(State or Other Jurisdiction of

(I.R.S. Employer I.D. No.)

incorporation or organization)

 



4685 S. Highland Drive, Suite #202

Salt Lake City, Utah 84117

(Address of Principal Executive Offices)


(801) 278-9424

(Issuer’s Telephone Number, Including Area Code)


Check 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 (the “Exchange Act”) 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 [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 definition 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 [X]


Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [X] No [  ]



1



APPLICABLE ONLY TO ISSUER 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 Section 12, 13 or 15(d) of the Exchange Act subsequent to the distribution of securities under a plan confirmed by a court.  

Yes [  ] No [  ]


Not applicable.


Indicate the number of shares outstanding of each of the Registrant’s classes of common equity, as of the latest practicable date.


The number of shares outstanding of each of the Registrant’s classes of common equity, as of the latest practicable date:


 

 

 

Class

 

Outstanding as of November 9, 2009

Common Capital Voting Stock, $0.001 par value per share

 

1,249,816 shares


FORWARD LOOKING STATEMENTS


This Quarterly Report on Form 10-Q, Financial Statements and Notes to Financial Statements contains forward-looking statements that discuss, among other things, future expectations and projections regarding future developments, operations and financial conditions. All forward-looking statements are based on management’s existing beliefs about present and future events outside of management’s control and on assumptions that may prove to be incorrect. If any underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected or intended.


PART I - FINANCIAL STATEMENTS


Item 1. Financial Statements.


September 30, 2009

C O N T E N T S


Condensed Balance Sheets

3

Condensed Statements of Operations

4

Condensed Statements of Cash Flows

5

Notes to Condensed Financial Statements

6




2




Bear Lake Recreation, Inc.

(A Development Stage Company)

Condensed Balance Sheets

September 30, 2009 and June 30, 2009




 

 

09/30/2009

 

 

 

6/30/2009

 

 

 

(Unaudited)

 

 

 

(Audited)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

Accounts Payable

 

$

171

 

 

 

$

 

Related Party Payable

 

 

 57,733

 

 

 

 

 53,767

 

Total Current Liabilities

 

 

 57,904

 

 

 

 

 53,767

 

Total Liabilities

 

 

 57,904

 

 

 

 

 53,767

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Deficit

 

 

 

 

 

 

 

 

 

Preferred Stock -- 5,000,000 shares authorized having a

 

 

 

 

 

 

 

 

 

par value of $.001 per share; no shares issued

 

 

 

 

 

 

 

 

 

and outstanding

 

 

 —

 

 

 

 

 —

 

Capital Stock -- 50,000,000 shares authorized having a

 

 

 

 

 

 

 

 

 

par value of $.001 per share; 1,249,816 shares issued

 

 

 

 

 

 

 

 

 

and outstanding

 

 

 1,250

 

 

 

 

 1,250

 

Additional Paid-in Capital

 

 

 82,828

 

 

 

 

 82,828

 

Accumulated Deficit during the Development Stage

 

 

(141,982

)

 

 

 

(137,845

)

Total Stockholders' Deficit

 

 

(57,904

)

 

 

 

(53,767

)

Total Liabilities and Stockholders' Deficit

 

$

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 





See accompanying notes to financial statements.



3



Bear Lake Recreation, Inc.

(A Development Stage Company)

Condensed Statements of Operations

For the Three Months Ended September 30, 2009 and 2008, and

For the Period from Inception (October 22, 1998) through September 30, 2009

(Unaudited)



 

 

For the

 

 

For the

 

 

From Inception

 

 

 

Three Months

 

 

Three Months

 

 

(October 22,

 

 

 

Ended

 

 

Ended

 

 

1998) Through

 

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

 

2009

 

 

2008

 

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

 

 

$

 

 

$

1,396

 

Cost of Goods Sold

 

 

 —

 

 

 

 —

 

 

 

(707

)

Gross Profit

 

 

 —

 

 

 

 —

 

 

 

 689

 

General and Administrative Expenses

 

 

 4,137

 

 

 

 6,355

 

 

 

 122,960

 

Net Income (Loss) from Operations

 

 

(4,137

)

 

 

(6,355

)

 

 

(122,271

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

 

 

 

Write off of inventory

 

 

 —

 

 

 

 —

 

 

 

(10,645

)

Loss on Sale of Assets

 

 

 —

 

 

 

 —

 

 

 

(9,066

)

Total Other Income (Expense)

 

 

 —

 

 

 

 —

 

 

 

(19,711

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss Before Taxes

 

 

(4,137

)

 

 

(6,355

)

 

 

(141,982

)

Provision for Income Taxes

 

 

 —

 

 

 

 —

 

 

 

 —

 

Net Loss

 

$

 (4,137

)

 

$

 (6,355

)

 

$

 (141,982

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss Per Share - Basic and Diluted

 

$

 (0.01

)

 

$

 (0.01

)

 

$

 (0.17

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding -

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

 

 1,249,816

 

 

 

 1,249,816

 

 

 

 816,488

 

 

 

 

 

 

 

 

 

 

 

 

 

 





See accompanying notes to financial statements.



4



Bear Lake Recreation, Inc.

(A Development Stage Company)

Condensed Statements of Cash Flows

For the Three Months Ended September 30, 2009 and 2008, and

For the Period from Inception (October 22, 1998) through September 30, 2009

(Unaudited)


 

 

For the

 

 

For the

 

 

From Inception

 

 

 

Three Months

 

 

Three Months

 

 

(October 22,

 

 

 

Ended

 

 

Ended

 

 

1998) Through

 

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

 

2009

 

 

2008

 

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows From Operating Activities

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

 (4,137

)

 

$

 (6,355

)

 

$

 (141,982

)

Adjustments to reconcile net income (loss) to

 

 

 

 

 

 

 

 

 

 

 

 

net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

 —

 

 

 

 —

 

 

 

 4,799

 

Shares issued for services

 

 

 —

 

 

 

 —

 

 

 

 3,000

 

Loss on disposal of equipment

 

 

 —

 

 

 

 —

 

 

 

 9,066

 

Write off of related party receivable

 

 

 —

 

 

 

 —

 

 

 

 1,000

 

Write off of Website development costs

 

 

 —

 

 

 

 —

 

 

 

 8,877

 

Write off of inventory

 

 

 —

 

 

 

 —

 

 

 

 10,645

 

Decrease / (Increase) - Inventory

 

 

 —

 

 

 

 —

 

 

 

(10,645

)

Increase / (Decrease) - Accounts Payable

 

 

 171

 

 

 

 1,644

 

 

 

 171

 

Increase / (Decrease) - Related Party Payables

 

 

3,966

 

 

 

4,711

 

 

 

 57,733

 

Net Cash From Operating Activities

 

 

 —

 

 

 

 —

 

 

 

(57,336

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows From Investing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

 —

 

 

 

 —

 

 

 

(12,433

)

Website development costs

 

 

 —

 

 

 

 —

 

 

 

(10,309

)

Net Cash From Investing Activities

 

 

 —

 

 

 

 —

 

 

 

(22,742

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Stock offering costs

 

 

 —

 

 

 

 —

 

 

 

(6,072

)

Related-party receivable

 

 

 —

 

 

 

 —

 

 

 

(1,000

)

Proceeds from the issuance of common stock

 

 

 —

 

 

 

 —

 

 

 

 87,150

 

Net Cash From Financing Activities

 

 

 —

 

 

 

 —

 

 

 

 80,078

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Increase In Cash

 

 

 —

 

 

 

 —

 

 

 

 —

 

Beginning Cash Balance

 

 

 —

 

 

 

 —

 

 

 

 —

 

Ending Cash Balance

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the year for interest

 

 

 —

 

 

 

 —

 

 

$

 

Cash paid during the year for income taxes

 

 

 —

 

 

 

 —

 

 

$

 


See accompanying notes to financial statements.



5



Bear Lake Recreation, Inc.

(A Development Stage Company)

Notes to Condensed Financial Statements

September 30, 2009

(Unaudited)


NOTE 1 BASIS OF PRESENTATION


The accompanying financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The interim financial statements reflect all adjustments, consisting of normal recurring adjustments which, in the opinion of management, are necessary to present a fair statement of the results for the period.


Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles 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 Annual Report on Form 10-K for the year ended June 30, 2009. The results of operations for the period ended September 30, 2009, are not necessarily indicative of the operating results for the full year.


NOTE 2 LIQUIDITY/GOING CONCERN


The Company does not have significant assets, nor has it established operations, and has accumulated losses since inception. These factors raise substantial doubt about the Company’s ability to continue as a going concern. It is the intent of the Company to seek a merger with an existing, well-capitalized operating company. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.


NOTE 3 RELATED PARTY TRANSACTIONS


The Company had expenses paid in its behalf by a shareholder in the amount of $3,966 during the quarter. The balance due the shareholder is $57,733 as of September 30, 2009. The unsecured loan bears no interest and is due on demand.


NOTE 4 RECENT ACCOUNTING PRONOUNCEMENTS


Effective July 1, 2009, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 105-10, Generally Accepted Accounting Principles – Overall (“ASC 105-10”), which was formerly known as SFAS 168.  ASC 105-10 establishes the FASB Accounting Standards Codification (the “Codification”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. GAAP.  Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants.  All guidance contained in the Codification carries an equal level of authority.  The Codification superseded all existing non-SEC accounting and reporting standards and all other non-grandfathered, non-SEC accounting literature not included in the Positions or Emerging Issues Task Force Abstracts.  Instead, it will issue Accounting Standards Updates (“ASUs”).  The FASB will not consider ASUs as authoritative in their own right. ASUs will serve only to update the Codification, provide background information about the guidance and provide the bases of conclusions on the change(s) in the Codification.  References made to FASB guidance throughout this document have been updated for the Codification.


In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business Combinations (“SFAS 141R”), which was primarily codified into Topic 805 “Business Combinations” in the ASC, and SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of Accounting Research Bulletin No. 51(“SFAS 160”), which was primarily codified into Topic 810 “Consolidations” in the ASC. SFAS No. 141R requires an acquirer to measure the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquiree at their fair values on the acquisition date, with goodwill being the excess value over the net identifiable



6



assets acquired.  SFAS No. 160 clarifies that a noncontrolling interest in a subsidiary should be reported as equity in the consolidated financial statements. The calculation of earnings per share will continue to be based on income amounts attributable to the parent. SFAS No. 141R and SFAS No. 160 are effective for financial statements issued for fiscal years beginning after December 15, 2008.  Early adoption is prohibited.  SFAS No. 141R will impact the valuation of business acquisitions made in 2009 and forward.  The Company adopted SFAS No. 160 on July 1, 2009. As a result, implementation of SFAS No. 160 had no impact on the Company’s condensed consolidated financial statements.   


In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133 (“SFAS 161”), which was primarily codified into Topic 815 “Derivatives and Hedging” in the ASC. SFAS 161 requires enhanced disclosures about an entity’s derivative instruments and hedging activities including: (1) how and why an entity uses derivative instruments; (2) how derivative instruments and related hedged items are accounted for under SFAS 133 and its related interpretations; and (3) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. SFAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with earlier application encouraged. The Company adopted SFAS No. 161 on January 1, 2009. Implementation of SFAS No. 161 had no impact on the Company’s condensed consolidated financial statements.


The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position or cash flows.  Based on that review, the Company believes that none of these pronouncements will have a significant effect on its consolidated financial statements.


NOTE 5 SUBSEQUENT EVENTS


The Company has evaluated subsequent events through November 9, 2009, the date the financial statements were issued, and has concluded that no recognized or nonrecognized subsequent events have occurred since the quarter ended September 30, 2009.



7



Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.


Forward-looking Statements


Statements made in this Quarterly Report which are not purely historical are forward-looking statements with respect to the goals, plan objectives, intentions, expectations, financial condition, results of operations, future performance and our business, including, without limitation, (i) our ability to raise capital, and (ii) statements preceded by, followed by or that include the words “may,” “would,” “could,” “should,” “expects,” “projects,” “anticipates,” “believes,” “estimates,” “plans,” “intends,” “targets” or similar expressions.


Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following, general economic or industry conditions, nationally and/or in the communities in which we may conduct business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our current or potential business and related matters.


Accordingly, results actually achieved may differ materially from expected results in these statements.  Forward-looking statements speak only as of the date they are made.  We do not undertake, and specifically disclaim, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements.


Plan of Operations


Our Company’s plan of operation for the next 12 months is to: (i) consider guidelines of industries in which our Company may have an interest; (ii) adopt a business plan regarding engaging in business in any selected industry; and (iii) to commence such operations through funding and/or the acquisition of a going concern engaged in any industry selected.


During the next 12 months, our only foreseeable cash requirements will relate to maintaining our good standing; the payment of our Securities and Exchange Commission and the Exchange Act reporting filing expenses, including associated legal and accounting fees; costs incident to reviewing or investigating any potential business venture; and maintaining our good standing as a corporation in our state of organization.  Because a principal shareholder has been paying all of the operating expenses, management does not anticipate that we will have to raise additional funds during the next 12 months.


Our common stock currently trades on the Over-the-Counter Bulletin Board (OTCBB) under the symbol BLKE.OB.


Results of Operations


Three Months Ended September 30, 2009 Compared to Three Months Ended September 30, 2008


We had no operations during the quarterly period ended September 30, 2009, nor do we have operations as of the date of this filing.  In the quarterly period ended September 30, 2009, we had sales of $0, compared to the quarterly period ended September 30, 2008, with sales of $0. General and administrative expenses were $4,137 for the September 30, 2009, period compared to $6,355 for the September 30, 2008, period. General and administrative expenses for the three months ended September 30, 2009, were comprised mainly of accounting, legal and other fees, and the decreased general and administrative expenses for the 2009 quarterly period over the 2008 quarterly period was limited to decreased audit fees. We had a net loss of $4,137 for the September 30, 2009, period compared to a net loss of $6,355 for the September 30, 2008, period.



8



Liquidity and Capital Requirements


We had no cash or cash equivalents on hand. If additional funds are required, such funds may be advanced by management or shareholders as loans to us.  During the quarterly period ended September 30, 2009, expenses were paid by a principal shareholder in the amount of $3,966, and during the quarterly period ended September 30, 2008, additional expenses paid by a principal shareholder totaled $4,711. The aggregate amount of $57,733 is outstanding as of September 30, 2009, is non-interest bearing, unsecured and due on demand. Because we have not identified any acquisition or venture, it is impossible to predict the amount of any such loan.


Off-balance Sheet Arrangements


None; not applicable


Item 3.  Quantitative and Qualitative Disclosures About Market Risk.


Not required.


Item 4(T).  Controls and Procedures.


Evaluation of Disclosure Controls and Procedures


Disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in rules and forms adopted by the Securities and Exchange Commission, and that such information is accumulated and communicated to management, including the President and Secretary, to allow timely decisions regarding required disclosures.


Under the supervision and with the participation of our management, including our President and Secretary, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act).  Based upon that evaluation, our President and Secretary concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective.


Changes in Internal Control Over Financial Reporting


During the most recent fiscal quarter covered by this Quarterly Report, there has been no change in our internal control over financial reporting (as defined in Rule 13a-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; not applicable.


Item 1A. Risk Factors


Not required.


Item 2. Unregistered Sales of Equity Securities and Use of Proceeds


None; not applicable.


Item 3. Defaults Upon Senior Securities


None; not applicable.



9



Item 4. Submission of Matters to a Vote of Security Holders


None; not applicable.


Item 5. Other Information


None; not applicable.


Item 6. Exhibits


(a) Exhibits


All Sarbanes-Oxley Certifications follow the signature line at the end of this Quarterly Report.


(b) Reports on Form 8-K


None.

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.



BEAR LAKE RECREATION, INC.

(Issuer)


Date:

11/09/09

 

By:

/s/Wayne Bassham

 

 

 

 

Wayne Bassham, President and Director



Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Quarterly Report has also been signed below by the following person on behalf of the Registrant and in the capacities and on the dates indicated.



Date:

11/09/09

 

By:

/s/Todd Albiston

 

 

 

 

Todd Albiston, Secretary and Director




10