RAADR, INC. - Quarter Report: 2011 March (Form 10-Q)

witd_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.20549

FORM 10-Q

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

For the quarterly period ended: March 31, 2011

Or

[ ]	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: 333-140276

WHITE DENTAL SUPPLY, INC.
(Exact name of registrant as specified in its charter)

Nevada		20-4622782
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

11677 N. 91ST Place, Scottsdale, AZ		85260
(Address of principal executive offices)		(Zip Code)

(480) 330-1922
(Registrant's telephone number, including area code)


___________
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 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 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 (as defined in Rule 12b-2 of the Exchange Act) Yes [X] No [ ]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

Common Stock, $0.001 par value	99,450,000 shares
(Class)	(Outstanding as at May 16, 2011)

WHITE DENTAL SUPPLY, INC.

Table of Contents

	Page

PART I – FINANCIAL INFORMATION	3
Unaudited Financial Statements	3
Balance Sheets	4
Statements of Operations	5
Statements of Cash Flows	6
Notes to Financial Statements	7
Management's Discussion and Analysis of Financial Condition and Results of Operation	10
Controls and Procedures	12
PART II – OTHER INFORMATION	13
Unregistered Sales of Equity Securities	13
Exhibits and Reports on Form 8-K	13
SIGNATURES	14

PART I – FINANCIAL INFORMATION

Unaudited Financial Statements

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and pursuant to the rules and regulations of the Securities and Exchange Commission ("Commission"). While these statements reflect all normal recurring adjustments which are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto, which are included in the Company's December 31, 2010, Annual Report on Form 10-K, previously filed with the Commission on March 30, 2011.

White Dental Supply, Inc.

(A Development Stage Company)

Balance Sheets

	March 31,			December 31,
	2011			2010
	(unaudited)			(audited)

Assets

Current assets:
Cash	$	1,023		$	691
Deposit		30			30
Total current assets		1,056			721

Total assets	$	1,056		$	721

Liabilities and Stockholders’Deficit

Current liabilities:
Accounts payable	$	1,067		$	577
Accrued expenses		600			480
Note payable		5,000			5,000
Total current liabilities		6,667			6,057

Total liabilities		6,667			6,057

Stockholders’ deficit
Preferred stock, $0.001 par value, 100,000,000 shares
authorized, no shares issued and outstanding		-			-
Common stock, $0.001 par value, 100,000,000 shares
authorized, 99,450,000 shares issued and outstanding
As of 3/31/11 and 12/31/10		99,450			99,450
Additional paid-in capital		63,950			56,950
Deficit accumulated during development stage		(169,011	)		(161,736	)
Total stockholders’ deficit		(5,611	)		(5,336	)

Total liabilities and stockholders’ deficit	$	1,056		$	721

The accompanying notes are an integral part of these financial statements.

White Dental Supply, Inc.

(A Development Stage Company)

Statements of Operations

(Unaudited)

	For the three months ended						Inception
	March 31,						(March 29, 2006) to
	2011			2010			March 31, 2011

Revenue	$	-		$	-		$	1,674
Cost of goods sold		-			-			1,386

Gross profit		-			-			288

Expenses:
Executive compensation		1,254			-			11,254
General and administrative expenses		6,021			5,890			77,855
Total expenses		7,275			5,890			89,109

Loss before provision for income taxes		(7,275	)		(5,890	)		(88,821	)

Provision for income taxes		-			(50	)		(190	)

Net loss	$	(7,275	)	$	(5,940	)	$	(89,011	)

Weighted average number of
common shares outstanding – basic		99,450,000			99,450,000

Net loss per share – basic	$	(0.00	)	$	(0.00	)

The accompanying notes are an integral part of these financial statements.

White Dental Supply, Inc.

(A Development Stage Company)

Statements of Cash Flows

(Unaudited)

	For the three months ended						Inception
	March 31,						(March 29, 2006)
	2011			2010			March 31, 2011
Operating activities
Net loss	$	(7,275	)	$	(5,940	)	$	(89,011	)
Adjustments to reconcile net loss to
net cash used by operating activities:
Shares issued for services – related party		-			-			10,000
Changes in operating assets and liabilities:
(Increase) in deposits		-			-			(30	)
Increase in accounts payable		490			530			1,067
Increase in accrued expenses		120			120			600
Net cash used by operating activities		(6,665	)		(5,290	)		(77,374	)

Financing activities
Donated capital		7,000			5,500			28,400
Proceeds from notes payable		-			-			5,000
Issuances of common stock		-			-			45,000
Net cash provided by financing activities		7,000			5,500			78,400

Net increase in cash		335			210			1,026
Cash – beginning of the period		691			575			-
Cash – ending of the period	$	1,026		$	785		$	1,026

Supplemental disclosures:
Interest paid	$	-		$	-		$	-
Income taxes paid	$	-		$	50		$	190

Non-cash transactions:
Shares issued for services – related party	$	-		$	-		$	10,000
Number of shares issued for services		-			-			90,000,000

The accompanying notes are an integral part of these financial statements.

White Dental Supply, Inc.

(A Development Stage Company)

Notes to Financial Statements

(Unaudited)

Note 1 – Basis of presentation

The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the audited financial statements of the Company for the period ended December 31, 2010 and notes thereto included in the Company's annual report on Form 10-K. The Company follows the same accounting policies in the preparation of interim reports.

Results of operations for the interim periods are not indicative of annual results.

Note 2 – History and organization of the company

The Company was organized March 29, 2006 (Date of Inception) under the laws of the State of Nevada, as White Dental Supply, Inc. The Company is authorized to issue 100,000,000 shares of its $0.001 par value common stock and 100,000,000 shares of its $0.001 par value preferred stock.

The business of the Company is to sell dental supplies through direct marketing and via the internet. The Company has limited operations and in accordance with FASB ASC 915-10, “Development Stage Entities”, the Company is considered a development stage company.

Note 3 - Going concern

The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The Company had an accumulated deficit of $169,011 as of March 31, 2011. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. On August 19, 2009, the Company secured a Revolving Line of Credit for $25,000 with a non-related third-party entity, the terms of which are discussed in Note 5 – Debt and Interest Expense. Nonetheless, the Company is significantly dependent upon its ability, and will continue to attempt, to secure equity and/or debt financing. There are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

White Dental Supply, Inc.

(A Development Stage Company)

Notes to Financial Statements

(Unaudited)

Note 4 –Accounting Policies and Procedures

Basis of Presentation

The financial statements present the balance sheets, statements of operations and cash flows of the Company. The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.

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 of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Loss per share

Net loss per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”. Basic loss per share is computed by dividing losses available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. The Company had no dilutive common stock equivalents, such as stock options or warrants as of March 31, 2011.

Recent Accounting Pronouncements

The company evaluated all of the other recent accounting updates through ASU 2011-01 and deemed that they would not have a material effect on the financial position, results of operations or cash flows of the Company.

Note 5 – Debt and interest expense

Through September 30, 2010, a non-affiliated third-party loaned the Company an aggregate of $5,000 in cash. The note bears no interest and is due upon demand.

On August 19, 2009, the Company entered into a Revolving Line of Credit Promissory Note with a non-related, third party entity for a total of $25,000. Any principal balance borrowed against the Note accrues interest at a rate of 10% per year. The entire unpaid balance and interest accrued thereupon are due on December 31, 2011. As of March 31, 2011, no monies have been borrowed again this line of credit and the outstanding balance is $0.

Note 6 – Stockholders’ deficit

The Company is authorized to issue 100,000,000 shares of its $0.001 par value common stock and 100,000,000 shares of its $0.001 par value preferred stock.

On June 18, 2008, the Board of Directors authorized and declared a forward stock split to be affected in the form of a stock dividend, whereby eight new shares of common stock will be issued for each one existing share of common stock that is outstanding as of June 18, 2008, resulting in a total of nine post-split shares for each pre-split share outstanding, payable on July 17, 2008. All references to share and per share information in the financial statements and related notes have been adjusted to reflect the stock split on a retroactive basis.

Through the March 31, 2011, the founding shareholder of the Company donated cash in the amount of $28,400. The entire amount is considered donated capital and recorded as additional paid-in capital.

As of March 31, 2011, there have been no other issuances of common stock.

White Dental Supply, Inc.

(A Development Stage Company)

Notes to Financial Statements

(Unaudited)

Note 7 – Related party transactions

Since the inception of the Company, a shareholder, officer and director of the Company donated cash to the Company in the aggregate amount of $28,400. This amount has been donated to the Company and is not expected to be repaid and is considered additional paid-in capital.

The Company does not lease or rent any property. Office services are provided without charge by an officer and director of the Company. Such costs are immaterial to the financial statements and, accordingly, have not been reflected therein. The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interests. The Company has not formulated a policy for the resolution of such conflicts.

Management's Discussion and Analysis of Financial Condition and Results of Operation

Forward-Looking Statements

This Quarterly Report contains forward-looking statements about White Dental Supply, Inc.’s business, financial condition and prospects that reflect management’s assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. If any of our management’s assumptions should prove incorrect, or if any of the risks and uncertainties underlying such expectations should materialize, White Dental Supply’s actual results may differ materially from those indicated by the forward-looking statements.

The key factors that are not within our control and that may have a direct bearing on operating results include, but are not limited to, acceptance of our services, our ability to expand our customer base, managements’ ability to raise capital in the future, the retention of key employees and changes in the regulation of our industry.

There may be other risks and circumstances that management may be unable to predict. When used in this Quarterly Report, words such as, "believes,""expects," "intends,""plans,""anticipates,""estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions.

Management’s Discussion

We were incorporated in the State of Nevada on March 29, 2006. We are a development stage company that sells dental supplies via direct sales to retail customers and industry participants, such as dental hygienists. During the three month periods ended March 31, 2011 and 2010, we did not generate any revenues, and therefore did not incur any costs associated with sales of products. Since our inception on March 29, 2006 through March 31, 2011, we generated a total of $1,674 in sales. Total cost of goods sold since our inception to March 31, 2011, is $1,386, resulting in a gross profit of $288 for a historical gross margin of approximately 17%.

We are unable to forecast the amount, if any, of revenues we will generate for the foreseeable future. We have no recurring customers and no source of guaranteed ongoing revenues. We have experienced marked difficulty in generating sales. We believe our lack of revenues during these years is attributable to our lackluster internet experience and thus far ineffective marketing efforts, as well as an inability to secure inventory that is materially different and desirable than is readily available at the majority of retailers.

For the three months ended March 31, 2011, we incurred operating expenses in the amount of $7,275, of which $1,254 is attributable to compensation paid to an officer and director and $6,021 in general and administrative expenses. General and administrative fees included general office expenses ($301), accounting fees ($5,000) and professional fees ($720) related to legal fees and filing periodic reports to maintain our status as a public reporting company. In the comparable three month period ended March 31, 2010, we incurred $5,890 in operating expenses. During the period, accounting fees were $4,500,professional fees of $345 and $445 in general office expenses. The slight increase year-over-year is primarily attributable to increased accounting and professional fees related to maintaining our public reporting requirements with the SEC.

From inception to March 31, 2011, our total operating expenses were $89,109, composed of general and administrative expenses of $77,855, executive compensation of $11,254, of which $10,000 was paid in the form of 90,000,000 shares of common stock to Nancy White, an officer and director of the Company. We expect to continue to incur general and administrative expenses for the foreseeable future, although we cannot estimate the extent of these costs.

During the periods ended March 31, 2011 and 2010, we recorded provisions for income taxes of $0 and $50, respectively, related to the minimum tax payable to the State of Arizona. For the period from our inception to March 31, 2011, we recorded total provisions for income taxes of $190.

As a result of our minimal revenues and incurring ongoing expenses related to the implementation of our business plan, we have experienced net losses in all periods since our inception on March 29, 2006. In the period ended March 31, 2011, our net loss totaled $7,275, compared to a net loss of $5,940 in the comparable three months ended March 31, 2010. Since our inception, we have accumulated net losses in the amount of $89,011. We anticipate incurring ongoing operating losses and cannot predict when, if at all, we may expect these losses to plateau or narrow. As a result of the foregoing, our independent auditors have expressed substantial doubt about our ability to continue as a going concern in the independent auditors’ report to the financial statements included in our annual report. If our business fails, our investors may face a complete loss of their investment.

Over the past several quarters, our operations had been impaired by the state of the general economy. Recently, however, the stock market has shown marked signs of recovery and parts of the economy have leveled their decline or perked up slightly. Our management believes this turn around in the business climate has led to an availability of investment capital. Resultantly, we intend to take advantage of the current market conditions and actively seek to raise funds through sales of our common stock or debt securities to renew pursuit of our business objectives.

On August 19, 2009, the Company entered into a Revolving Line of Credit Promissory Note with a non-related, third party entity for a total of $25,000. Any principal balance borrowed against the Note accrues interest at a rate of 10% per year. The entire unpaid balance and interest accrued thereupon are due on December 31, 2011. Since the financing is structured as a loan, we must generate sufficient revenues with which to repay any amount borrowed. As a result of securing this financing source, we have been mapping out our strategy to accomplish the following:

Stage 1 – Seek New Inventory: It is our goal to acquire a mix of products that generate high sales volume, such as toothpaste and dental floss, thus driving traffic through our proposed revamped web presence. Once we are able to generate traffic and sales volume, we will seek out products that carry higher gross margins, such as electric toothbrushes and dentist-grade teeth-whitening kits. This two-step approach will likely lengthen our profitability horizon, but it is management’s belief that this will build name recognition and equity, thereby driving customer loyalty and repeat purchases. We have started to research our product mix and are in the process of identifying specific suppliers from whom we intend to purchase. We are still in the process of evaluating which products will draw not only high web traffic, and thereby purchases, but also a moderate gross profit with which to repay any funds borrowed through the line of credit.

Stage 2 – Develop Web Strategy: We received minimal orders through our prior website. We have determined it to be in our best interest to hire an experienced Internet consulting firm to not only redesign or update our existing website, but to also advise us on how to better market our site for increased traffic. We have identified several candidates, but as of the date of this report, have not yet engaged any firm to provide such services to us. We expect to spend between $5,000 and $10,000 on this proposed effort.

Unfortunately, despite having secured a line of credit for $25,000, there is no guarantee of success of any or all of our planned initiatives. Our management is treading carefully to assure that we do not borrow unnecessary funds or spend any borrowed funds without identifying a repayment horizon. If we are unable to generate cash flows with which to repay the line of credit, or if we require additional capital to maintain or expand our operations, we may need to sell additional equity or debt securities, which may be on terms unfavorable to us.

Our management does not anticipate the need to hire additional full- or part- time employees over the next 12 months, as the services provided by our current officers and directors appear sufficient at this time. Our officers and directors work for us on a part-time basis, and are prepared to devote additional time, as necessary. We do not expect to hire any additional employees over the next 12 months.

There are no known trends, events or uncertainties that have had or that are reasonably expected to have a material impact on our revenues from continuing operations.

Our management does not expect to incur research and development costs.

We do not have any off-balance sheet arrangements.

We currently do not own any significant plant or equipment that we would seek to sell in the near future.

We have not paid for expenses on behalf of our directors. Additionally, we believe that this fact shall not materially change.

We currently do not have any material contracts and or affiliations with third parties.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of March 31, 2011, our management, with the participation of our President and Chief Executive Officer and our Senior Vice President and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon that evaluation, our President and Chief Executive Officer and our Chief Financial Officer concluded that, as of March 31, 2011, our disclosure controls and procedures were effective in ensuring that material information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, including ensuring that such material information is accumulated by and communicated to our management, including our President and Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in internal controls over financial reporting

There was no change in our internal controls over financial reporting that occurred during the period covered by this report, which has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

PART II – OTHER INFORMATION

Unregistered Sales of Equity Securities

On March 28, 2006, we issued 90,000,000 shares of our common stock to Nancy White, our founding shareholder and an officer and our sole director. This sale of stock did not involve any public offering, general advertising or solicitation. The shares were issued in exchange for services performed by the founding shareholder on our behalf in the amount of $10,000. Mrs. White received compensation in the form of common stock for performing services related to the formation and organization of our Company, including, but not limited to, designing and implementing a business plan and providing administrative office space for use by the Company; thus, these shares are considered to have been provided as founder’s shares. Additionally, the services are considered to have been donated, and have resultantly been expensed and recorded as a contribution to capital. At the time of the issuance, Mrs. White had fair access to and was in possession of all available material information about our company, as she is the sole officer and director of White Dental Supply, Inc. The shares bear a restrictive transfer legend. On the basis of these facts, we claim that the issuance of stock to our founding shareholder qualifies for the exemption from registration contained in Section 4(2) of the Securities Act of 1933.

In April 7, 2006, we sold 2,250,000 shares of our common stock to Nancy White, our founding shareholder. The shares were issued for total cash in the amount of $5,000. The shares bear a restrictive transfer legend. At the time of the issuance, Mrs. White had fair access to and was in possession of all available material information about our company, as she is the sole officer and director of White Dental Supply, Inc. The shares bear a restrictive transfer legend. On the basis of these facts, we claim that the issuance of stock to our founding shareholder qualifies for the exemption from registration contained in Section 4(2) of the Securities Act of 1933.

Exhibits and Reports on Form 8-K

Exhibit Number	Name and/or Identification of Exhibit

3	Articles of Incorporation & By-Laws

	(a) Articles of Incorporation *

	(b) By-Laws *

10	Revolving Line of Credit Promissory Note **

31	Rule 13a-14(a)/15d-14(a) Certifications

	(a) Nancy White

	(b) Michael White

32	Certification under Section 906 of the Sarbanes-Oxley Act (18 U.S.C. Section 1350)


* Incorporated by reference herein filed as exhibits to the Company’s Registration Statement on Form SB-2 previously filed with the SEC on January 29, 2007, and subsequent amendments made thereto.

** Incorporated by reference herein filed as exhibits to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2009, previously filed with the SEC on November 16, 2009.

SIGNATURES

Pursuant to the requirements of the Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

WHITE DENTAL SUPPLY, INC.
(Registrant)

Signature	Title	Date

/s/ Nancy White	President and	May 16, 2011
Nancy White	Chief Executive Officer

/s/ Michael White	Principal Financial Officer	May 16, 2011
Michael White

/s/ Michael White	Principal Accounting Officer	May 16, 2011
Michael White