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Modular Medical, Inc. - Quarter Report: 2014 March (Form 10-Q)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

UNITED STATES

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 quarterly period ended March 31, 2014

[  ] 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

(Registrant’s Telephone Number, Including Area 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 [X] 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 [  ]  (The Registrant does not have a corporate Web site.)


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.



1




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 [  ]


APPLICABLE ONLY TO CORPORATE ISSUERS


Indicate the number of shares outstanding of each of the issuer’s classes of common stock, 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 May 13, 2014

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 contain 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.


March 31, 2014

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

7




2




BEAR LAKE RECREATION, INC.

(A Development Stage Company)

CONDENSED BALANCE SHEETS

March 31, 2014 and June 30, 2013

(Unaudited)

 

 

 

 

 

3/31/2014

 

6/30/2013

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Total Assets

 $                             -

 

 $                             -

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

Liabilities

 

 

 

Current Liabilities

 

 

 

Accounts Payable

 $                             -

 

 $                             -

Related Party Payable

              100,072

 

                91,042

Accrued Interest - Related Parties

                26,688

 

                17,849

Total Current Liabilities

              126,760

 

              108,891

Total Liabilities

              126,760

 

              108,891

 

 

 

 

Stockholders' Deficit

 

 

 

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

 

 

 

par value of $.001 per share; 0 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

            (210,838)

 

            (192,969)

Total Stockholders' Deficit

            (126,760)

 

            (108,891)

Total Liabilities and Stockholders' Deficit

 $                             -

 

 $                             -

 

 

 

 

 

 

 

 

See accompanying unaudited notes to condensed financial statements.






3






BEAR LAKE RECREATION, INC.

(A Development Stage Company)

Condensed Statements of Operations

For the Three and Nine Months Ended March 31, 2014 and 2013, and

For the Period from Inception (October 22, 1998) through March 31, 2014

(Unaudited)

 

 

For the

 

For the

 

For the

 

For the

 

From Inception

 

Three Months

 

Three Months

 

Nine Months

 

Nine Months

 

(October 22,

 

Ended

 

Ended

 

Ended

 

Ended

 

1998) Through

 

March 31,

 

March 31,

 

March 31,

 

March 31,

 

March 31,

 

2014

 

2013

 

2014

 

2013

 

2014

 

 

 

 

 

 

 

 

 

 

Revenues

 $                    -

 

 $                     -

 

 $                  -

 

 $                  -

 

 $         1,396

Cost of Goods Sold

               -

 

                        -

 

                     -

 

                     -

 

           707

Gross Profit

                -

 

                        -

 

                     -

 

                     -

 

            689

General and Administrative Expenses

          2,150

 

                2,050

 

              9,030

 

              8,870

 

    184,839

Net Loss from Operations

      (2,150)

 

       (2,050)

 

      (9,030)

 

      (8,870)

 

    (184,150)

 

 

 

 

 

 

 

 

 

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

Related party interest expense

      (3,052)

 

     (2,506)

 

      (8,839)

 

      (7,222)

 

     (26,688)

Total Other Income (Expense)

      (3,052)

 

        (2,506)

 

      (8,839)

 

      (7,222)

 

     (26,688)

Net Loss Before Taxes

        (5,202)

 

     (4,556)

 

   (17,869)

 

   (16,092)

 

    (210,838)

Provision for Income Taxes

                -

 

                        -

 

                     -

 

                     -

 

              -

Net Loss

 $         (5,202)

 

 $          (4,556)

 

 $      (17,869)

 

 $      (16,092)

 

 $   (210,838)

 

 

 

 

 

 

 

 

 

 

Loss Per Share - Basic and Diluted

 $           (0.01)

 

 $            (0.01)

 

 $          (0.01)

 

 $          (0.01)

 

 $         (0.22)

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding -

 

 

 

 

 

 

 

 

 

Basic and Diluted

     1,249,816

 

         1,249,816

 

       1,249,816

 

       1,249,816

 

     942,812

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying unaudited notes to condensed financial statements.




4




BEAR LAKE RECREATION, INC.

(A Development Stage Company)

Condensed Statements of Cash Flows

For the Nine Months Ended March 31, 2014 and 2013, and

For the Period from Inception (October 22, 1998) through March 31, 2014

(Unaudited)

 

 

For the

 

For the

 

From Inception

 

Nine Months

 

Nine Months

 

(October 22,

 

Ended

 

Ended

 

1998) Through

 

March 31,

 

March 31,

 

March 31,

 

2014

 

2013

 

2014

Cash Flows From Operating Activities

 

 

 

 

 

Net Loss

 $                (17,869)

 

 $               (16,092)

 

 $                (210,838)

Adjustments to reconcile net 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 Website development costs

                       -

 

                      -

 

                  8,877

Increase / (Decrease) - Related Party Payables

9,030

 

               8,870

 

              100,072

Increase in related party accrued interest

8,839

 

               7,222

 

                26,688

Net Cash From Operating Activities

                       -

 

                      -

 

              (58,336)

 

 

 

 

 

 

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)

Proceeds from the issuance of common stock

                       -

 

                      -

 

                87,150

Net Cash From Financing Activities

                       -

 

                      -

 

                81,078

Net Change 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 unaudited notes to condensed financial statements.




5



Bear Lake Recreation, Inc.

(A Development Stage Company)

Notes to Condensed Financial Statements

March 31, 2014

(Unaudited)


NOTE 1 BASIS OF PRESENTATION


The accompanying condensed financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). 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, 2013. The results of operations for the period ended March 31, 2014, are not necessarily indicative of the operating results for the full year.


NOTE 2 GOING CONCERN


The Company does not have any 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 and payables paid in its behalf by a shareholder in the amount of $2,150 during the quarter. The balance due the shareholder is $100,072 as of March 31, 2014.  The aggregate amount of related party loans is non-interest bearing, unsecured and payable on demand.  However, the Company imputes interest on the loan at 10% per annum.  Imputed interest expense on related party loans for the three-month periods ended March 31, 2014 and 2013 totaled $3,052 and $2,506, respectively.  During the nine-month periods ended March 31, 2014 and 2013, the imputed interest expense on related party loans totaled $8,839 and $7,222, respectively.


NOTE 4 RECENT ACCOUNTING PRONOUNCEMENTS


The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its 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 financial statements.



6




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 March 31, 2014 Compared to Three Months Ended March 31, 2013


We had no operations during the quarterly period ended March 31, 2014, nor do we have operations as of the date of this filing.  General and administrative expenses were $2,150 for the March 31, 2014, period, compared to $2,050 for the March 31, 2013, period. General and administrative expenses for the three months ended March 31, 2014, were comprised mainly of accounting and other office fees. We had a net loss of $5,202 for the March 31, 2014, period compared to a net loss of $4,556 for the March 31, 2013, period.



7



Nine Months Ended March 31, 2014 Compared to Nine Months Ended March 31, 2013


We had no operations during the nine month period ended March 31, 2014, nor do we have operations as of the date of this filing.  General and administrative expenses were $9,030 for the March 31, 2014, period compared to $8,870 for the March 31, 2013, period.  General and administrative expenses for the nine months ended March 31, 2014, were comprised mainly of accounting and other office fees.  We had a net loss of $17,869 for the March 31, 2014, period compared to a net loss of $16,092 for the March 31, 2013, period.


Liquidity and Capital Requirements


We had no cash or cash equivalents on hand at March 31, 2014. If additional funds are required, such funds may be advanced by management or shareholders as loans to us.  During the quarterly period ended March 31, 2014, expenses were paid by a principal shareholder in the amount of $2,150, and during the quarterly period ended March 31, 2013, additional expenses paid by a principal shareholder totaled $2,050. The aggregate amount of related party loans is non-interest bearing, unsecured and payable on demand. However, the Company imputes interest on the loan at 10% per annum.  Imputed interest expense on related party loans for the three-month periods ended March 31, 2014 and 2013 totaled $3,052 and $2,506 respectively.  Because we have not identified any acquisition or venture, it is impossible to predict the amount of any such loan.  During the nine-month periods ended March 31, 2014 and 2013, the imputed interest expense on related party loans totaled $8,839 and $7,222, respectively.


Off-balance Sheet Arrangements


None.


Item 3.  Quantitative and Qualitative Disclosures about Market Risk.


Not required.


Item 4.  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) as of the end of the period covered by this Quarterly Report.  Based upon that evaluation, our President and Secretary concluded that, as of the end of the period covered by this Quarterly Report, our disclosure controls and procedures were effective.


Changes in Internal Control Over Financial Reporting


During the 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.



8




PART II - OTHER INFORMATION


Item 1. Legal Proceedings


None.


Item 1A. Risk Factors


Not required.


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


None.


Item 3. Defaults Upon Senior Securities


None; not applicable.


Item 4. Mine Safety Disclosure


We have no mining activities.


Item 5. Other Information


None.


Item 6. Exhibits


(a) Exhibits


Exhibit No.

Identification of Exhibit

3.1

Amended and Restated Articles of Incorporation*

3.2

Bylaws*

14.1

Code of Ethics*

31.1

Certification of Wayne Bassham Pursuant to Section 302 of the Sarbanes-Oxley Act.

31.2

Certification of Todd Albiston Pursuant to Section 302 of the Sarbanes-Oxley Act.

32

Certification of Wayne Bassham and Todd Albiston Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act.

101.INS

XBRL Instance Document**

101.SCH

XBRL Taxonomy Extension Schema**

101.CAL

XBRL Taxonomy Extension Calculation Linkbase**

101.DEF

XBRL Taxonomy Extension Definition Linkbase**

101.LAB

XBRL Taxonomy Extension Label Linkbase**

101.PRE

XBRL Taxonomy Extension Presentation Linkbase**


*Incorporated herein by reference to our June 30, 2008, 10 K/A as filed on September 2, 2009.


** Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed “furnished” and not “filed” or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, or deemed “furnished” and not “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, and otherwise is not subject to liability under these sections.


(b) Reports on Form 8-K


None.



9



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:

May 14, 2014

 

By:

/s/Wayne Bassham

 

 

 

 

Wayne Bassham, Principal Executive Officer


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:

May 14, 2014

 

By:

/s/Todd Albiston

 

 

 

 

Todd Albiston, Principal Financial Officer




10