Annual Statements Open main menu

Modular Medical, Inc. - Quarter Report: 2016 September (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 September 30, 2016

[  ] 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 registrant as specified in its charter)



Nevada

87-0620495

(State or Other Jurisdiction of

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

incorporation or organization)

 



1914 East 9400 South, #232

Sandy, Utah 84093

(Address of Principal Executive Offices)


4685 S. Highland Drive, Suite #202

Salt Lake City, Utah 84117

(Previous Address of Principal Executive Offices)


(801) 577-0541

(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 November 10, 2016

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.


September 30, 2016

C O N T E N T S


Condensed Balance Sheets (unaudited)

3

Condensed Statements of Operations (unaudited)

4

Condensed Statements of Cash Flows (unaudited)

5

Notes to Condensed Financial Statements (unaudited)

6




2




BEAR LAKE RECREATION, INC.

CONDENSED BALANCE SHEETS

September 30, 2016 and June 30, 2016

 

 

 

 

 

 

9/30/2016

 

6/30/2016

 

(Unaudited)

 

 

ASSETS

 

 

 

 

 

 

 

Current Assets

 

 

 

Total Current Assets

                  -

 

                -

Total Assets

 $                   -

 

 $                   -

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

Liabilities

 

 

 

Current Liabilities

 

 

 

Accounts Payable

 $                   -

 

 $                   -

Related Party Payable

       137,320

 

   131,092

Accrued Interest - Related Parties

     67,622

 

     62,671

Total Current Liabilities

   204,942

 

    193,763

Total Liabilities

   204,942

 

    193,763

 

 

 

 

Stockholders' Deficit

 

 

 

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

 

 

 

par value of $.001 per share; 0 shares issued

 

 

 

and outstanding

               -

 

             -

Common 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

    (289,020)

 

    (277,841)

Total Stockholders' Deficit

   (204,942)

 

   (193,763)

Total Liabilities and Stockholders' Deficit

 $                  -

 

 $                  -

 

 

 

 

See accompanying unaudited notes to condensed financial statements.





3




BEAR LAKE RECREATION, INC.

Condensed Statements of Operations

For the Three Months Ended Septebmer 30, 2016 and 2015

(Unaudited)

 

 

 

 

 

 

 

 

 

For the

 

For the

 

 

 

Three Months

 

Three Months

 

 

 

Ended

 

Ended

 

 

 

September 30,

 

September 30,

 

 

 

2016

 

2015

 

 

 

 

 

 

 

 

Revenues

 $               -

 

 $                -

 

 

Cost of Goods Sold

              -

 

              -

 

 

Gross Profit

            -

 

              -

 

 

General and Administrative Expenses

       6,228

 

      6,851

 

 

Net Loss from Operations

      (6,228)

 

    (6,851)

 

 

 

 

 

 

 

 

Other Income (Expense)

 

 

 

 

 

Related party interest expense

   (4,951)

 

   (4,181)

 

 

Total Other Income (Expense)

   (4,951)

 

   (4,181)

 

 

Net Loss Before Taxes

 (11,179)

 

   (11,032)

 

 

Provision for Income Taxes

              -

 

              -

 

 

Net Loss

 $     (11,179)

 

 $     (11,032)

 

 

 

 

 

 

 

 

Loss Per Share - Basic and Diluted

 $         (0.01)

 

 $         (0.01)

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding -

 

 

 

 

 

Basic and Diluted

   1,249,816

 

    1,249,816

 

 

 

 

 

 

 

 

See accompanying unaudited notes to condensed financial statements.






4




BEAR LAKE RECREATION, INC.

Condensed Statements of Cash Flows

For the Three Months Ended Septebmer 30, 2016 and 2015

(Unaudited)

 

 

 

 

 

For the

 

For the

 

Three Months

 

Three Months

 

Ended

 

Ended

 

September 30,

 

September 30,

 

2016

 

2015

 

 

 

 

Cash Flows From Operating Activities

 

 

 

Net Loss

 $    (11,179)

 

 $   (11,032)

Adjustments to reconcile net loss to

 

 

 

net cash provided by operating activities:

 

 

 

(Increase) / Decrease - Prepaid Expense

             -

 

1,875

Increase / (Decrease) - Accounts Payable

             -

 

       4,201

Increase / (Decrease) - Related Party Payables

6,228

 

         775

Increase in related party accrued interest

4,951

 

      4,181

Net Cash From Operating Activities

           -

 

            -

 

 

 

 

Cash Flows From Investing Activities

 

 

 

Net Cash From Investing Activities

            -

 

             -

 

 

 

 

Cash Flows from Financing Activities

 

 

 

Net Cash From Financing Activities

             -

 

           -

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.

Notes to Condensed Financial Statements

September 30, 2016

(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, 2016. The results of operations for the period ended September 30, 2016, 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 shareholders in the amount of $6,228 for the three months ended September 30, 2016. The balance due to shareholders is $137,320 and $131,092 as of September 30, 2016 and June 30, 2016, respectively.  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 September 30, 2016 and 2015 totaled $4,951 and $4,181, respectively.  


NOTE 4 RECENT ACCOUNTING PRONOUNCEMENTS


In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU No. 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.


In August 2014, the FASB issued ASU No. 2014-15 Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern. The update is effective for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The impact on the Company’s financial statements of adopting ASU 2014-15 is currently being assessed by management.


In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”, addressing eight specific cash flow issues in an effort to reduce diversity in practice. The amended guidance is effective for fiscal years beginning after December 31, 2017, and for interim periods within those years. Early adoption is permitted. The Company is in the process of evaluating the impact of this guidance on our 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 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.


NOTE 5 SUBSEQUENT EVENTS

 

For purposes of these financial statements and all disclosures, subsequent events were evaluated through the date the financial statements were issued.



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 Operation


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 Securities and Exchange of 1934, as amended (the “Exchange Act”), reporting requirement 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 OTC Markets Pink Sheets under the symbol BLKE.


Results of Operations


Three Months Ended September 30, 2016 Compared to Three Months Ended September 30, 2015


We had no operations during the quarterly period ended September 30, 2016, nor do we have operations as of the date of this filing.  General and administrative expenses were $6,228 for the September 30, 2016, period, compared to $6,851 for the September 30, 2015, period. General and administrative expenses for the three months ended September 30, 2016, were comprised mainly of accounting and Edgar filing expenses, along with other office fees. We had a net loss of $11,179 for the September 30, 2016, period, compared to a net loss of $11,032 for the September 30, 2015, period.  The increase was mainly attributable to an increase in interest expense.


Liquidity and Capital Requirements


We had no cash or cash equivalents on hand at September 30, 2016. 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, 2016, expenses and payables were paid by shareholders in the amount of $6,228, and during the quarterly period ended September 30, 2015, additional expenses paid by a principal shareholder totaled $775. 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 September 30, 2016 and 2015, totaled $4,951 and $4,181, respectively.  Because we have not identified any acquisition or venture, it is impossible to predict the amount of any such loan.  




7



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.


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.




8



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 Annual Report as filed on September 2, 2009.


(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.

(Registrant)


Date:

November 10, 2016

 

By:

/s/Wayne Bassham

 

 

 

 

Wayne Bassham, Principal Executive Officer


Pursuant to the requirements of the Securities Exchange Act of 1934, 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:

November 10, 2016

 

By:

/s/Todd Albiston

 

 

 

 

Todd Albiston, Principal Financial Officer




10