New Asia Holdings, Inc. - Quarter Report: 2011 March (Form 10-Q)

		March 31, 2011				December 31, 2010
ASSETS
Current Assets
Cash and cash equivalents			885				2,714
Royalties Receivable			7,976				39,248
Employee Advances			5,000				5,000
Prepaid Expense			7,316				10,656
Total Current Assets			21,176				57,618
Property and Equipment - net			1,115				1,215
TOTAL ASSETS			22,291				58,833
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable			66,561				54,970
Accrued Expenses			75,653				45,653
Sales Tax Payable			2,424				2,424
Credit Cards Payable - current portion			9,702				8,531
Total Current Liabilities			154,340				111,578
Long Term Liabilities
Credit Cards Payable - net of current portion			26,592				26,592
Total Liabilities			180,932				138,170
Stockholders' Equity (Deficit)
Common Stock, $0.001 par value, 300,000,000 shares authorized, 239,937,352 shares issued and outstanding (239,937,352 - 2010)			239,938				239,938
Additional Paid In Capital			611,571				611,571
Accumulated Deficit			(1,235,422	)			(1,154,412	)
Total DM Products, Inc. Stockholders' Equity (Deficit)			(383,913	)			(302,903	)
Non-Controlling Interest			225,272				223,566
Total Stockholders' Equity (Deficit)			(158,641	)			(79,337	)
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY			22,291				58,833

 

DM Products, Inc. And Subsidiaries
Consolidated Statements of Operations
(Unaudited)
		For the 3 months ended				For the 3 months ended
		March 31, 2011				March 31, 2010
Revenues
Royalty income			8,053				5,495
Total revenues			8,053				5,495
Operating expenses
Professional Fees			24,841				33,126
Salary & Wages			34,163				34,500
Consulting			9,104				184
General & Administrative expenses			19,249				14,655
Total operating expense			87,357				82,465
Income (Loss) from operations and before non-controlling Interest			(79,304	)			(76,970	)
Less: Income Attributable to non-controlling interest			1,706				1,148
Income (Loss) before income taxes			(81,010	)			(78,118	)
Provision for income taxes			-				-
Net Income (Loss)		$	(81,010	)			(78,118	)
Net Income (Loss) per common share-basic and fully diluted		$	(0.0003	)			(0.0003	)
Weighted average common shares outstanding-basic and diluted			239,907,352				239,097,352

 

DM Products, Inc. And Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
		For the 3 months ended				For the 3 months ended
		March 31, 2011				March 31, 2010
Cash flows from operating activities
Net Loss		$	(79,304	)			(76,970	)
Adjustment to reconcile net loss to net cash provided (used) by operating activities:
Depreciation			100				100
Share-based compensation			-				-
Changes in operating assets and liabilities:
Royalties receivable			31,272				54,213
Prepaid Expenses			3,340				4,249
Accounts payable			11,591				2,400
Accrued Expenses			30,000				(25,209	)
Net cash provided (used) by operating activities			(3,001	)			(41,217	)
Cash flows from financing activities
Net increase in credit card balances			1,172				9,039
Net cash provided by financing activities			1,172				9,039
Net increase (decrease) in cash			(1,829	)			(32,178	)
Cash at beginning of period			2,714				36,729
Cash at end of period		$	885				4,551
Supplemental disclosure of cash flow information:
Interest paid		$	368				344
Taxes paid		$	3,200				2,400

 

DM Products, Inc. And Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)
Note 1: Summary of Significant Accounting Policies
Nature of Operations
DM Products, Inc.(the Company) was incorporated on March 1, 2001 as Effective Sport Nutrition Corporation. Subsequently, on April 11, 2005, the Company changed its name to Midwest E.S.W.T Corp and on December 14, 2005, it changed its name again to DM Products, Inc.
On July 18, 2005, the Company acquired Direct Success, Inc. a California Corporation in exchange for 70 % of the Company's Common Stock, making Direct Success, Inc. a wholly owned subsidiary of the Company. Midwest E.S.W.T agreed that a total of 114,851,043 shares of Restricted Common Stock were to be issued to shareholders of Direct Success, Inc.
The Company operates from Walnut Creek, California and it wholly  owns Direct Success, Inc which owns 75% of Direct Success, LLC 3  a limited liability company formed on or about August 16, 2002. Direct Success, Inc entered into a joint venture with Buena Vista Infomercial Corporation which owns 25%. The purpose is to market products through direct response to television infomercials. The companies obtain the distribution, production, and licensing rights to a product in exchange for royalty agreements based on the sales of the products.  The Company sets up the production, marketing and the distribution of the products.
On July 14, 2010 the Company incorporated a wholly owned subsidiary corporation Aliano, Inc. dba Aliano Westlake Village. The purpose of this fragrance and personal care division is to create, manufacture, distribute and sell prestige fragrances and beauty related products. Effective as of July 26, 2010 Aliano Inc. entered into an agreement with Portia Entertainment Group LLC for legal services described in the agreement. As per the agreement Portia Entertainment Group LLC is entitled to receive a fee of 5% on the Net Income earned by Aliano Inc. for celebrity endorsees introduce by Portia.
On April 8, 2010 a Form S-1 Registration Statement was completed and submitted to the Securities and Exchange Commission. The registration filing was declared effective on October 15, 2010. On April 21, 2010 an Information Statement Form 211 was submitted to the Financial Industry Regulatory Authority (FINRA) for active trading on the Over the Counter Bulletin Board (OTCBB). The filing was approved on November 09, 2010.
Basis of Consolidation
The consolidated financial statements include the accounts of DM Products, Inc., Direct Success, Inc. and the accounts of its 75% owned subsidiary Direct Success LLC 3. All material inter-company transactions have been eliminated.
Basis of Presentation

Accounting Basis
The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting).  The Company has adopted a December 31 fiscal year end.
Cash and Cash Equivalents
All highly liquid investments with maturities of three months or less are considered to be cash equivalents.  At March 31, 2011 and March 31, 2010, the Company had cash balances of $885 and $4,551, respectively.
Fair Value of Financial Instruments
The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, prepaid expense, accounts payable, sales tax payable, and other current liabilities. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Income Taxes
Income taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of March 31, 2011, there have been no interest or penalties incurred on income taxes.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
Revenue Recognition
The Company records revenue in accordance with ASC Topic 605 - Revenue Recognition. During the period ended March 31, 2011 revenues came from royalties from the contract Banjo Minnow the fishing lure with TriStar Products, Inc. Revenues derived from the Company license sales are recognized when (1) there is evidence of an arrangement, (2) collection of our fee is considered probable and (3) the fee is fixed and determinable.
Direct Success entered into a manufacturing, marketing and distribution agreement with Banjo Buddies who is the inventor of Banjo Minnow, a fishing lure which Direct Success 3 had a license agreement to market the product since Oct 2002. The Company entered into a modification of said agreement in April 2005.  On or about May 11, 2005  Direct Success LLC 3, subcontracted the manufacturing and distribution rights to TriStar Products, Inc.  In March 2007, Direct Success granted back to Banjo, the right to license and privilege for internet sales and small parts sale of the product. Under the agreement, Banjo will pay Direct Success 4% royalty on all gross sales of product. As of date of settlement, effective January 1, 2010, Direct Success no longer receives the 4% royalty for internet and part sales from Banjo Buddies. The revenues are strictly based on the contractual obligation contained in the agreement with Tristar Products, Inc., which are the royalties received from the sales of the Banjo Minnow. These royalty arrangements with Tristar provide the Company with a flat $4.00 (for unit sales under $18) and $5.00 (for unit sales over $18), per unit sold domestically, and $2.50 per unit sold internationally. The present retail price for the Banjo Minnow is $19.95.
Basic Income (Loss) Per Share
Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of March 31, 2011.
Advertising Policy
The Company recognizes advertising expense as incurred. The Company recognized no advertising expense for the three months ended March 31, 2011 and March 31, 2010.
Concentration of Risk
The Company is earning (over 90%) the majority of the royalty income from Tristar Products, Inc. Since the Company is depending on Tristar Products, Inc, the inability of Tristar to perform in the future may have a material adverse effect on the Company’s financial condition.
Stock-Based Compensation
The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation – Stock Compensation which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. There was no stock-based compensation granted during the three months ended March 31, 2011 and March 31, 2010.
The Company follows ASC Topic 505-50, formerly EITF 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees.  In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined.  The fair value of the equity instrument is charged directly to operating expense and additional paid-in capital over the period during which services are rendered. There was no stock-based compensation issued to non-employees during the three months ended March 31, 2011 and March 31, 2010.

Recent Accounting Pronouncements
The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.
Note 2: Prepaid Expenses
Prepaid expenses consisted of the following at March 31:

Note 3: Property & Equipment
Property and equipment are carried at cost. Major expenditures and those which substantially increase useful lives are capitalized. Maintenance, repairs and minor renewals are charged to operations when incurred. When property and equipment is sold or otherwise disposed of, the asset account and related accumulated depreciation account are relieved, and any gain or loss is included in operations. Once placed in service, depreciable assets are depreciated over their estimated useful lives using both accelerated and straight-line methods.
Depreciation expenses totaled $100 and $100 for the three months ended March 31, 2011 and March 31, 2010, respectively.
Note 4: Non-Controlling Interest
The Company has owned 75% of Direct Success LLC 3 (LLC 3) since 2002. The assets and liabilities of Direct Success LLC 3 have been included in these consolidated financial statements. The 25% of LLC 3 not owned by the Company has been presented as a non-controlling interest in these financial statements.
Note 5: Accrued Expenses
Accrued expenses consist of accrued wages under an employee agreement entered into on the 20th day of April, 2007 by and between the Company and its President. According to the agreement, employee's starting salary is $6,000 per month during the first 90 days following execution of the agreement or after $500,000 in capital is raised. After such period of time, employee's salary shall be increased to $10,000 per month. Should the company determine it in the best interest not to pay employee's entire monthly compensation, at any time, any such compensation shall be treated as deferred compensation and will accumulate on the books and provided to employee at employee's sole discretion, taking into consideration the funds available and the best interest of the Company.
The accrued wages owed under the employment agreement as of March 31, 2011 and March 31, 2010, respectively, were $75,653 and $25,653.
Salary expense to the related party was $30,000 and $30,000 for the three months ended March 31, 2011 and March 31, 2010, respectively.
Note 6: Common Stock
The Company has 300,000,000 shares of $0.001 par value common stock authorized. The Company had 239,937,352 shares of common stock issued and outstanding as of March 31, 2011 and 239,907,352 shares issued and outstanding as of March 31, 2010.
In 2010, a share correction was made. 30,000 shares were issued to an investor who had paid for the shares in a prior year, but had never been issued the shares. There were no other share issuances in 2010.
Note 7: Related Party Transactions
The Company has entered in  a consulting contract with Michael Debenon, Esq. for $6,000 per month on a month to month basis for general counsel. On February 1, 2011 the above contract was terminated. Legal expenses to related party was $18,000 and $12,000 for the three months ended March 31, 2011 and March 31, 2010, respectively.

Note 8: Income Taxes
As of March 31, 2011, the Company had net operating loss carry forwards of approximately $1,235,422 that may be available to reduce future years’ taxable income through 2030. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.
The provision for federal income tax consists of the following:

The provision for federal income tax consists of the following:The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $1,235,422 for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.
Note 9: Commitments and Contingencies
On October 18, 2010, the Company executed two Conditional Employment Agreements for the conditional hiring of a CEO and COO for Aliano, Inc., the wholly-owned subsidiary of DM Products, Inc. The Employment agreements are conditional upon the Company successfully procuring $3,000,000 of investment capital. Each agreement also contains a provision for the issuance of 15,000,000 stock options at date of hire.
The CEO and employees of the Company work from their homes. The fair market value of rents contributed by the related parties are estimated to be $50.00 per month, which is immaterial to the company's financial statements, therefore, an entry to record the value of rents contributed has not been recorded on the Company's books.
Note 10: Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  The Company has sustained substantial losses since inception, has a working capital deficit, and is in need of additional capital to grow its operations so that it can become profitable.
In view of this matter, the ability of the Company to continue as a going concern is dependent upon growth of revenues and the ability of the Company to raise additional capital.  Management believes that its successful ability to raise capital and increases in revenues will provide the opportunity for the Company to continue as a going concern.
Note 11: Subsequent Events
Management has evaluated subsequent events through May 16, 2011, the date these financial statements were issued, and has determined that it does not have any additional material subsequent events to disclose.