Phoenix Life Sciences International Limited. - Quarter Report: 2010 November (Form 10-Q)

Mokita 10Q 11-30-10

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X]

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2010

[ ]

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____ TO ______.

Commission File Number: 333-167275

MOKITA, INC.
(Exact name of Registrant as specified in its charter)


Nevada	46-0525378
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

11420 – 142 Street NW
Edmonton, AB T5M – 1V1

(Address of principal executive offices)

(780) 708-4962
(Issuer’s Telephone Number)

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), Yes XX No ___ and (2) has been subject to such filing requirements for the past 90 days. Yes XX 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 [ ] No [x] Not Required by smaller reporting companies.

Indicate by check mark whether the registrant is a large accelerated filer, an 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:

[x] Yes

[ ]

As of December 15, 2010, the issuer had 4,800,000 shares issued and outstanding of its common stock.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

MOKITA, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

NOVEMBER 30, 2010

MOKITA, INC.

(A DEVELOPMENT STAGE COMPANY)

INDEX TO CONDENSED FINANCIAL STATEMENTS

(UNAUDITED)

Page(s)

Balance Sheets

Condensed Statements of Operations and Comprehensive Loss

Condensed Statements of Cash Flows

Notes to Condensed Financial Statements

4-8

MOKITA, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED BALANCE SHEETS


ASSETS
	November 30,	February 28,
	2010	2010
	(Unaudited)
Current Assets
Cash and cash equivalents	$ 26,723	$ -
Stock subscription receivable	-	12,500
Prepaid expenses and deposits	1,000	-
Total Current Assets	27,723	12,500

TOTAL ASSETS	$ 27,723	$ 12,500

LIABILITIES AND STOCKHOLDERS' EQUITY


LIABILITIES
Current Liabilities
Accounts payable and accrued expenses	$ 2,560	$ 113
Loans from stockholder (NOTE 5)	4,500	-

Total Current Liabilities	7,060	113

Total Liabilities	7,060	113

STOCKHOLDERS' EQUITY (NOTE 4)
Common stock, par value $.001,
100,000,000 shares authorized and 4,800,000
and 1,500,000 shares, respectively, outstanding	4,800	1,500
Additional paid-in capital	43,200	13,500
Deficit accumulated during the
development stage	(27,337)	(2,613)

Total Stockholders' Equity	20,663	12,387

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 27,723	$ 12,500

See accompanying notes to unaudited condensed financial statements.

MOKITA, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - UNAUDITED


		Three Months		Nine Months	From April	Cumulative Totals
		Ended		Ended	21, 2009	April 21, 2009
					(Inception) to	(Inception) to
		November 30,		November 30,	November 30,	November 30,
		2010	2009	2010	2009	2010

INCOME		$ -	$ -	$ -	$ -	$ -

OPERATING EXPENSES
	Organizational expenses	-	-	-	1,500	1,500
	Accounting	2,800	-	10,800	-	10,800
	Legal expenses	2,770	-	11,823	113	12,936
	Taxes and licenses	550	-	550	-	550
	Administrative expenses	1,551	-	1,551	-	1,551
	Total Operating Expenses	7,671	-	24,724	1,613	27,337

OTHER INCOME (EXPENSE)

	Total other income (expense)	-	-	-	-	-

NET LOSS APPLICABLE TO COMMON SHARES		$ (7,671)	$ -	$ (24,724)	$ (1,613)	$ (27,337)


NET LOSS PER BASIC AND DILUTED SHARES		$ (0.00)	$ -	$ (0.01)	$ (0.00)

WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING		3,675,824	1,500,000	2,220,000	1,500,000

See accompanying notes to unaudited condensed financial statements.

MOKITA, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED STATEMENTS OF CASH FLOWS – UNAUDITED


	Nine Months	From April	Cumulative Totals
	Ended	21, 2009	April 21, 2009
		(Inception) to	(Inception) to
	November 30,	November 30,	November 30,
	2010	2009	2010

CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (24,724)	$ (1,613)	$ (27,337)

Changes in operating assets and liabilities
(Increase) in prepaid expenses	(1,000)	-	(1,000)
Increase in accounts payable and
accrued expenses	2,447	113	2,560
Total adjustments	1,447	113	1,560

Net cash (used in) operating activities	(23,277)	(1,500)	(25,777)

CASH FLOWS FROM INVESTING ACTIVITIES	-	-	-

Net cash provided by (used in) investing activities	-	-	-

CASH FLOWS FROM FINANCING ACTIVITIES
Payments received on stock subscription	12,500	1,500	-
Sale of common stock	33,000	-	48,000
Loans from stockholder	4,500	-	4,500

Net cash provided by financing activities	50,000	1,500	52,500

CASH AND CASH EQUIVALENTS -
BEGINNING OF PERIOD	-	-	-

CASH AND CASH EQUIVALENTS - END
OF PERIOD	$ 26,723	$ -	$ 26,723

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$ -	$ -	$ -
Cash paid for income taxes	$ -	$ -	$ -

NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock subscription	$ -	$ 15,000	$ -

See accompanying notes to unaudited condensed financial statements.

MOKITA, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

NOVEMBER 30, 2010

NOTE 1-

ORGANIZATION AND BASIS OF PRESENTATION

The condensed unaudited interim financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed consolidated financial statements and notes are presented as permitted on Form 10-Q and do not contain information included in the Company’s annual statements and notes. 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 pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed financial statements be read in conjunction with the February 28, 2010 audited financial statements and the accompanying notes thereto. While management believes the procedures followed in preparing these condensed financial statements are reasonable, the accuracy of the amounts are in some respects dependent upon the facts that will exist, and procedures that will be accomplished by the Company later in the year.

These condensed unaudited financial statements reflect all adjustments, including normal recurring adjustments which, in the opinion of management, are necessary to present fairly the operations and cash flows for the periods presented.

Mokita, Inc. (the Company) was incorporated on April 21, 2009 as Mokita Exploration, Ltd. under the laws of the State of Nevada. On February 5, 2010 the Company changed its name to Mokita, Inc. The business purpose of the Company is to accept credit card payments from Canadian customers, for a fee, for payment to Canadian organizations which do not accept credit card payments due to card issuer fees. The Company has selected February 28 as its fiscal year end.

NOTE 2-

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Development Stage Company

The Company is considered to be in the development stage as defined in FASC 915-10-20, “Development Stage Entity.” The Company is devoting substantially all of its efforts to the execution of its business plan.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

MOKITA, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

NOVEMBER 30, 2010

NOTE 2-

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Cash and Cash Equivalents

Cash and cash equivalents consists principally of currency on hand, demand deposits at commercial banks, and liquid investment funds having a maturity of three months or less at the time of purchase. The Company had cash and cash equivalents of $26,723 and $0, respectively, as of November 30, 2010 and February 28, 2010.

Start-up Costs

In accordance with FASC 720-15-25, “Start-up Activities,” the Company expenses all costs incurred in connection with the start-up and organization of the Company.

Common Stock Issued For Other Than Cash

Services purchased and other transactions settled in the Company's common stock are recorded at the estimated fair value of the stock issued if that value is more readily determinable than the fair value of the consideration received.

Net Income or (Loss) Per Share of Common Stock

The following table sets forth the computation of basic and diluted earnings per share:


		THREE MONTHS		NINE MONTHS
		ENDED NOVEMBER 30,		ENDED NOVEMBER 30,

		2010	2009	2010	2009
Net income (loss)		$ (7,671)	$ -	$ (24,724)	$ (1,613)
Weighted average
common shares
outstanding (Basic)		3,675,824	1,500,000	2,220,000	1,500,000
	Options	-	-	-	-
	Warrants	-	-	-	-
Weighted average
common shares
outstanding (Diluted)		3,675,824	1,500,000	2,220,000	1,500,000
Net loss per share
(Basic and diluted)		$ (0.00)	$ -	$ (0.01)	$ (0.00)

As of November 30, 2010 and February 28, 2010, the Company had 4,800,000 and 1,500,000 shares, respectively, outstanding. The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding.

MOKITA, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

NOVEMBER 30, 2010

NOTE 2-

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Recently Enacted Accounting Standards

In June 2009 the FASB established the Accounting Standards Codification (“Codification” or “ASC”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) issued under authority of federal securities laws are also sources of GAAP for SEC registrants. Existing GAAP was not intended to be changed as a result of the Codification and, accordingly, the change did not impact our financial statements. The ASC does change the way the guidance is organized and presented.

Accounting Standards Update (”ASU”) ASU No. 2009-05 (ASC Topic 820, which amends “Fair Value Measurements and Disclosures – Overall,” ASU No. 2009-13 (ASC Topic 605), “Multiple-Deliverable Revenue Arrangements,” ASU No. 2009-14 (ASC Topic 985), “Certain Revenue Arrangements that include Software Elements,” and various other ASU’s, No. 2009-2 through ASU No. 2010-29, which contain technical corrections to existing guidance or affect guidance to specialized industries or entities, were recently issued. These updates have no current applicability to the Company or their effect on the financial statements would not have been significant.

NOTE 3-

PROVISION FOR INCOME TAXES

The Company recognizes the tax effects of transactions in the year in which such transactions enter into the determination of net income regardless of when reported for tax purposes. Deferred taxes are provided in the financial statements under FASC 740-10-25 to give effect to the temporary differences which may arise from differences in the bases of fixed assets, depreciation methods and allowances based on the income taxes expected to be payable in future years. Minimal development stage deferred tax assets arising as a result of net operating loss carry-forwards have been offset completely by a valuation allowance due to the uncertainty of their utilization in future periods. Operating loss carry-forwards generated during the period from April 21, 2009 (date of inception) through November 30, 2010 of approximately $27,337 will begin to expire in 2029. Accordingly, deferred tax assets of approximately $9,568 were offset by the valuation allowance.

The Company has no tax positions at November 30, 2010 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.

MOKITA, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

NOVEMBER 30, 2010

NOTE 3-

PROVISION FOR INCOME TAXES (CONTINUED)

The Company recognizes interest accrued relative to unrecognized tax benefits in interest expense and penalties in operating expense. During the period from April 21, 2009 (inception) to November 30, 2010 the Company recognized no income tax related interest and penalties. The Company had no accruals for income tax related interest and penalties at November 30, 2010.

NOTE 4 -

STOCKHOLDERS’ EQUITY

Common Stock

As of November 30, 2010 and February 28, 2010 the Company had 100,000,000 shares of common stock authorized with a par value of $.001 per share and 4,800,000 and 1,500,000 shares, respectively, issued and outstanding.

The following details the stock transactions for the Company:

On April 22, 2009 the Company authorized the sale of 1,500,000 shares of its common stock to its founding President for $.01 per share for a total of $15,000 cash to provide initial working capital. The stock subscription was fully paid as of March 18, 2010.

During September of 2010 the Company completed the sale of 3,300,000 shares of common stock pursuant to its offering at $.01 per share for a total of $33,000. The shares were issued on October 1, 2010.

NOTE 5 -

LOANS FROM STOCKHOLDERS

The Company’s President and sole Director has advanced funds for organizational and administrative expenses. The total of these advances as of November 30, 2010 is $4,500. The loans are reported as current liabilities and will be repaid as cash flows allow. Interest has not been imputed due to its nominal impact on the financial statements.

NOTE 6 -

FOREIGN CURRENCY TRANSLATION

Since the Company operates in Canada there is potential for transactions in Canadian dollars, although none occurred as of November 30, 2010. Assets and liabilities denominated in Canadian dollars are revalued to the United States dollar equivalent as of the reporting date. The effect of change in exchange rates from the transaction dates to the reporting date is reported as Currency Transactions Gain or Loss for the period.

MOKITA, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

NOVEMBER 30, 2010

NOTE 7 -

STOCK OFFERING

On September 3, 2010 the Company opened an offering for sale of its common shares, terminating December 31, 2010. The offering is for a maximum of 10,000,000 shares at a price of $.01 USD or $.0105 CAD per share. A total of 3,300,000 shares were subscribed and paid as of September 16, 2010 and shares were issued on October 1, 2010, bringing the total shares outstanding to 4,800,000. The Company received $33,000 USD to be used for administrative expenses and the execution of its business plan

NOTE 8 -

GOING CONCERN

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has incurred an operating deficit since its inception, is in the development stage and has generated no operating revenue. These items raise substantial doubt about the Company’s ability to continue as a going concern. In view of these matters, realization of the assets of the Company is dependent upon the Company’s ability to meet its financial requirements through equity financing and the success of future operations. These financial statements do not include adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

NOTE 9 -

SUBSEQUENT EVENTS

The Company has evaluated events from November 30, 2010 through the date the financial statements were issued. There are no events required to be disclosed.

Item 2. Plan of Operation

Our plan of operation is to build a business as a provider of credit card payment services to individuals who want to pay tuition and course fees to colleges, schools and universities, as well as property taxes and utility payments to municipalities and utility companies that do not accept credit card payments.

Mokita will provide website services for individuals to use credit cards to pay tuition, course fees, taxes and utility bills. We intend to begin with developing the tuition and course fee part of the business first, and then to move into utility fees and taxes. Some of the utility companies in western Canada already have agreements with companies providing the services we are in the process of developing, and our research has led us to believe the market involving universities and colleges would be a better market to pursue initially. This is not a market sector without competition. There are other businesses that provide this service and have ongoing relations with both the businesses they deal with and a base of existing customers.

Customers will go to our secure website, select the service provider they would like to pay, provide us with their particulars, the amount they are paying and their credit card account information, as well as authorization to charge their credit card account. Mokita will then complete the transaction by charging their credit card the agreed upon amount to be paid to the selected service provider plus a transaction fee of between 5 and 10 percent.

In preliminary discussions with credit card companies and financial institutions, we have been advised that the funds from daily transactions will be electronically deposited in our bank account the business day following the transaction. This will then allow us to make a further electronic transfer of the necessary funds to the customers’ service provider to pay the invoice amount on behalf of the customer. This procedure will allow us to conduct our business on a cash basis and require no additional financing or credit facility.

The actual amount of the transaction fee will be based on the merchant fees that we will be required to pay to the various credit card companies. We have not yet begun negotiations with the credit card companies to determine merchant fees. They are typically between 1 and 5 percent and are based primarily on monthly volume.

Item 4T. Controls and procedures

Evaluation of Disclosure Controls and Procedures

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

Our evaluation of internal control over financial reporting includes using the COSO framework, an integrated framework for the evaluation of internal controls issued by the Committee of Sponsoring Organizations of the Treadway Commission, to identify the risks and control objectives related to the evaluation of our control environment. The internal controls for the Company are provided by executive management’s review and approval of all transactions.

Based on the current internal controls employed by the Company, the Company concludes that, as of November 30, 2010, a material weakness exists in the Company’s internal control procedures, in that one individual who, as an officer and director of the Company, has sole access and authority to receive cash and make cash disbursements.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the nine months ended November 30, 2010, that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

Due to the material weaknesses and significant deficiencies noted above, management and the Board of Directors are currently working to remediate all noted weaknesses and deficiencies.

Part II – Other Information

Item 6. Exhibits
The following documents are attached as exhibits hereto.


Exhibit No.	Document	Location
3.1	Articles of Incorporation	Previously Filed
3.2	Bylaws	Previously Filed
31	Certification of the Chief Financial Officer of the Company as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Included
32	Certification of the Chief Executive Officer and Chief Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Included

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.

MOKITA, INC.

/s/ Brent Millward

By: Brent Millward

Its: President

Date:

January 5, 2011