RemSleep Holdings Inc. - Quarter Report: 2008 September (Form 10-Q)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form 10-Q
Quarterly
Report Pursuant to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
For the
Quarterly Period Ended September 30, 2008
Commission File Number 333-146735
Bella
Viaggio, Inc.
(Exact
name of registrant as specified in its charter)
Nevada
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33-1176182
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(State
or other jurisdiction of
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(I.R.S.
Employer
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incorporation
or organization)
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Identification
No.)
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Bella Viaggio,
Inc.
2120
58th
Avenue
Suite
107
Vero
Beach, Florida 32966
(772)
266-5554
(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 o
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
definitions of “large accelerated filer,” “accelerated filer,” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (Check
one):
Large
accelerated filer o
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Accelerated
filer o
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Non-accelerated
filer o
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Smaller
reporting company x
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(Do
not check if a smaller reporting company)
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Indicate
by check mark whether the registrant is a shell Company (as defined in
Rule 12b-2 of the Exchange Act).
Yes x
No o
2,545,000 shares of Common Stock,
par value $0.001, were outstanding on November
19, 2008.
BELLA
VIAGGIO, INC.
INDEX
Page
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Number
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PART I - FINANCIAL
INFORMATION
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Item
1 – Financial Statements -Unaudited
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Balance Sheets
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1
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Statements of Operations
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2
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Statements of Cash Flows
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3
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Notes to Financial Statements
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4
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Item 2 – Management’s Discussion and Analysis of
Financial Condition
and Results of Operations
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10
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Item 3 – Quantitative and Qualitative
Disclosure About Market Risk
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11
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Item 4 – Controls and
Procedures
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11
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PART II – OTHER
INFORMATION
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12
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Item 1 - Legal
Proceedings
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12
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Item 2 – Unregistered Sales of
Equity Securities and Use of Proceeds
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12
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Item 3 - Defaults upon Senior
Securities
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12
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Item 4 – Submission of Matters to a Vote
of Security Holders
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12
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Item 5 - Other
Information
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12
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Item 6 – Exhibits and Reports on Form
8-K
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12
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Signatures
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12
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PART
I ― FINANCIAL INFORMATION
Item
1. Financial
Statements.
BELLA
VIAGGIO, INC.
(A
DEVELOPMENT STAGE COMPANY)
Unaudited
Financial Statements
For
the Three and Nine Months Ended September 30, 2008 and 2007 and the
Period
of June 6, 2007 (Inception) to September 30, 2008
BELLA
VIAGGIO, INC.
(A
DEVELOPMENT STAGE COMPANY)
Unaudited
Financial Statements
For the
Three and Nine Months Ended September 30, 2008 and 2007 and the
Period of
June 6, 2007 (Inception) to September 30, 2008
TABLE
OF CONTENTS
Page(s)
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||
Balance
Sheets as of September 30, 2008 and December 31, 2007
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F-1
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Statements
of Operations for the three and nine months ended September 30,
2008 and 2007
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||
and
the period of June 6, 2007 (Inception) to September 30,
2008
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F-2
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Statements
of Cash Flows for the nine months ended September 30, 2008 and
2007
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and
the period of June 6, 2007 (Inception) to September 30,
2008
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F-3
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Notes
to the Unaudited Financial Statements
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F-4-9
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BELLA
VIAGGIO, INC.
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|||||||||||||
(A
Development Stage Company)
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|||||||||||||
Balance
Sheets
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|||||||||||||
September
30, 2008
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December
31, 2007
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||||||||||||
(unaudited)
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|||||||||||||
ASSETS
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|||||||||||||
Current
assets
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|||||||||||||
Cash
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$ | 978 | $ | 353 | |||||||||
Total
current assets
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978 | 353 | |||||||||||
Total
assets
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$ | 978 | $ | 353 | |||||||||
LIABILITIES
AND STOCKHOLDERS' DEFICIT
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|||||||||||||
Current
liabilities
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|||||||||||||
Accounts
payable
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$ | - | $ | 50 | |||||||||
Loan
from shareholder
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6,450 | 3,100 | |||||||||||
Total
current liabilities
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6,450 | 3,150 | |||||||||||
Stockholders'
Deficit
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|||||||||||||
Preferred
stock, $.001 par value; 5,000,000 shares authorized, no shares issued or
outstanding
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- | - | |||||||||||
Common
stock, $.001 par value; 70,000,000 shares authorized, 2,362,250 and
2,220,000 shares issued and outstanding at September 30, 2008 and December
31, 2007
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2,595 | 2,220 | |||||||||||
Additional
paid in capital
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69,855 | 32,780 | |||||||||||
Deficit
accumulated during the development stage
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(77,922 | ) | (37,797 | ) | |||||||||
Total
stockholders' deficit
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(5,472 | ) | (2,797 | ) | |||||||||
Total
liabilities and shareholders' deficit
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$ | 978 | $ | 353 | |||||||||
See
accompanying notes to financial statements
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1
BELLA
VIAGGIO, INC.
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||||||||||||||||||||
(A
Development Stage Company)
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Statement
of Operations
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For
the period from June 6, 2007 (inception) to September 30,
2008
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Three
months ended September 30,
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Nine
months ended September 30,
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2008
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2007
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2008
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2007
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Revenue
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$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Expenses
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Website
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- | 2,100 | - | 2,100 | ||||||||||||||||
Travel
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- | 725 | - | 725 | ||||||||||||||||
Professional
fees
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6,000 | 275 | 37,300 | 30,000 | 75,097 | |||||||||||||||
Total
expenses
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6,000 | 275 | 40,125 | 30,000 | 77,922 | |||||||||||||||
Net
loss
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$ | (6,000 | ) | $ | (275 | ) | $ | (40,125 | ) | $ | (30,000 | ) | $ | (77,922 | ) | |||||
Basic
and diluted loss per common share
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$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||||||
Weighted
average shares outstanding
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2,565,870 | 2,220,000 | 2,337,263 | 2,220,000 | ||||||||||||||||
See
accompanying notes to financial statements
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2
BELLA
VIAGGIO, INC.
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(A
Development Stage Company)
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Statements
of Cash Flows
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||||||||||||
For
the period of June 6, 2007 (inception) to September 30,
2008
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Nine
months ended September 30,
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2008
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2007
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Cash
flows from operating activities
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Net
loss
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$ | (40,125 | ) | $ | (30,000 | ) | $ | (77,922 | ) | |||
Adjustments
to reconcile net income to net cash used in operating
activities
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||||||||||||
Common
stock issued for services
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29,500 | 29,500 | ||||||||||
Changes
in operating assets and liabilities
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||||||||||||
Accounts
payable
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(50 | ) | - | - | ||||||||
Net
cash used in operating activities
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(40,175 | ) | (500 | ) | (48,422 | ) | ||||||
Net
cash used in investing activities
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- | - | - | |||||||||
Cash
flows from financing activities
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||||||||||||
Loan
from shareholder
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3,350 | - | 6,450 | |||||||||
Proceeds
from sale of stock
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37,450 | 3,500 | 42,950 | |||||||||
Net
cash provided by financing activities
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40,800 | 3,500 | 49,400 | |||||||||
(Decrease)
increase in cash
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625 | 3,000 | 978 | |||||||||
Cash
at beginning of period
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353 | - | - | |||||||||
Cash
at end of period
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$ | 978 | $ | 3,000 | $ | 978 | ||||||
Disclosure
of non-cash financing activities:
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Issuance
of 1,966,667 shares of common stock for professional and legal
services
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$ | - | $ | - | $ | - | ||||||
Supplemental
Cash Flow Information:
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||||||||||||
Cash
paid for interest
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$ | - | $ | - | $ | - | ||||||
Cash
paid for income taxes
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$ | - | $ | - | $ | - | ||||||
See
accompanying notes to financial statements
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3
BELLA
VIAGGIO, INC.
(A
Development Stage Company)
Notes
to the Unaudited Financial Statements
For
the Three and Nine Months Ended September 30, 2008 and 2007 and the
Period
of June 6, 2007 (Inception) to September 30, 2008
Note
1 – Nature of Business
The
unaudited financial statements have been prepared by the Company,
pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been omitted pursuant to such SEC rules
and regulations; nevertheless, the Company believes that the disclosures
are adequate to make the information presented
not misleading. These financial statements and the notes
attached hereto should be read in conjunction with the financial statements and
notes included in the Company’s Form SB-2, which was filed with the SEC on
October 19, 2008 and deemed effective on October 22, 2008. In the
opinion of the Company, all adjustments, including normal recurring
adjustments necessary to present fairly the financial position of Bella
Viaggio, Inc., as of June 30, 2008 and
the results of its operations and cash flows for the three and
six month periods then ended, have been included. The results of operations
for the interim period are not necessarily indicative of the results for
the full year.
Bella
Viaggio, Inc. (“Company”) was organized June 6, 2007 under the laws of the State
of Nevada for the purpose of owning and operating a chain of day spas and
salons. The Company currently has no operations or realized revenues
from its planned principle business purpose and, in accordance with Statement of
Financial Accounting Standard (SFAS) No. 7, “Accounting and Reporting by
Development Stage Enterprises,” is considered a Development Stage
Enterprise.
Note
2 – Significant Accounting Policies
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 revenues and expenses during the reporting
period. Actual results could differ from those
estimates.
Cash
For the
Statements of Cash Flows, all highly liquid investments with maturity of three
months or less are considered to be cash equivalents. There were no
cash equivalents as of September 30, 2008.
4
BELLA
VIAGGIO, INC.
(A
Development Stage Company)
Notes
to the Unaudited Financial Statements
For
the Three and Nine Months Ended September 30, 2008 and 2007 and the
Period
of June 6, 2007 (Inception) to September 30, 2008
Note
2 – Significant Accounting Policies (continued)
Income
taxes
Income
taxes are provided for using the liability method of accounting in accordance
with SFAS No. 109 “Accounting
for Income Taxes,” and clarified by FIN 48, “Accounting for Uncertainty in
Income Taxes—an interpretation of FASB Statement
No. 109.” A deferred tax asset or liability is recorded
for all temporary differences between financial and tax
reporting. Temporary differences are the differences between the
reported amounts of assets and liabilities and their tax
basis. Deferred tax assets are reduced by a valuation allowance when,
in the opinion of management, it is more likely than not that some portion or
all of the deferred tax assets will not be realized. Deferred tax
assets and liabilities are adjusted for the effect of changes in tax laws and
rates on the date of enactment.
Share Based
Expenses
In
December 2004, the Financial Accounting Standards Board (“FASB”) issued
SFAS No. 123R “Share
Based Payment.”This statement is a revision to SFAS 123 and
supersedes Accounting Principles Board (APB) Opinion No. 25, “Accounting for Stock Issued to
Employees,” and amends FASB Statement No. 95, “Statement of Cash Flows.”This
statement requires a public entity to expense the cost of employee services
received in exchange for an award of equity instruments. This statement also
provides guidance on valuing and expensing these awards, as well as disclosure
requirements of these equity arrangements. The Company adopted SFAS No.
123R upon creation of the company and expenses share based costs in the period
incurred.
Going
concern
The
Company’s financial statements are prepared in accordance with generally
accepted accounting principles applicable to a going concern. This
contemplates the realization of assets and the liquidation of liabilities in the
normal course of business. Currently, the Company has minimal cash
and no material assets, nor does it have operations or a source of revenue
sufficient to cover its operation costs and allow it to continue as a going
concern. The Company is currently attempting to raise capital in
order to initiate its business plan which will, if successful, mitigate these
factors which raise substantial doubt about the Company’s ability to continue as
a going concern. The Company will be dependent upon the raising of
this additional capital through placement of our common stock in order to
implement its business plan, or merge with an operating
company. There can be no assurance that the Company will be
successful in either situation in order to continue as a going
concern. The officers and directors have committed to advancing
certain operating costs of the Company.
5
BELLA
VIAGGIO, INC.
(A
Development Stage Company)
Notes
to the Unaudited Financial Statements
For
the Three and Nine Months Ended September 30, 2008 and 2007 and the
Period
of June 6, 2007 (Inception) to September 30, 2008
Note
2 – Significant Accounting Policies (continued)
Recent Accounting
Pronouncements
In May
2008, FASB issued Financial Accounting Standards No. 163, “Accounting for Financial Guarantee
Insurance Contracts - an interpretation of FASB Statement No. 60.”
Diversity exists in practice in accounting for financial guarantee
insurance contracts by insurance enterprises under FASB Statement No. 60,
Accounting and Reporting by Insurance Enterprises. That diversity results in
inconsistencies in the recognition and measurement of claim liabilities because
of differing views about when a loss has been incurred under FASB Statement No.
5, Accounting for Contingencies.
This
Statement requires that an insurance enterprise recognize a claim liability
prior to an event of default (insured event) when there is evidence that credit
deterioration has occurred in an insured financial obligation. This Statement
also clarifies how Statement 60 applies to financial guarantee insurance
contracts, including the recognition and measurement to be used to account for
premium revenue and claim liabilities. Those clarifications will increase
comparability in financial reporting of financial guarantee insurance contracts
by insurance enterprises. This Statement requires expanded disclosures about
financial guarantee insurance contracts. The accounting and disclosure
requirements of the Statement will improve the quality of information provided
to users of financial statements. This Statement is effective for financial
statements issued for fiscal years beginning after December 15, 2008, and all
interim periods within those fiscal years.
In May
2008, FASB issued Financial Accounting Standards No. 162, “The Hierarchy of Generally
Accepted Accounting Principles.” This Statement identifies the sources of
accounting principles and the framework for selecting the principles to be used
in the preparation of financial statements of nongovernmental entities that are
presented in conformity with generally accepted accounting principles (GAAP) in
the United States (the GAAP hierarchy). This Statement is effective 60 days
following the SEC's approval of the Public Company Accounting Oversight Board
amendments to AU Section 411, The Meaning of Present Fairly in
Conformity With Generally Accepted Accounting Principles. This
pronouncement has no effect on this Company’s financial reporting at this
time.
In March
of 2008 the Financial Accounting Standards Board (FASB) issued SFAS No. 161,
“Disclosures about Derivative
Instruments and Hedging Activities—an amendment of FASB Statement No.
133, “Accounting for
Derivatives and Hedging Activities.” SFAS No. 161 has the same
scope as Statement No. 133 but requires enhanced disclosures about (a) how and
why an entity uses derivative instruments, (b) how derivative instruments and
related hedged items are accounted for under Statement No. 133 and its related
interpretations, and (c) how derivative instruments and related hedged items
affect an entity’s financial position, financial performance, and cash flows.
SFAS No. 161 is effective for financial statements issued for fiscal years
and interim periods beginning after November 15, 2008, with early application
encouraged. The statement encourages, but does not require, comparative
disclosures for earlier periods at initial adoption. SFAS No. 161 has no
effect on the Company’s financial position, statements of operations, or cash
flows at this time.
6
BELLA
VIAGGIO, INC.
(A
Development Stage Company)
Notes
to the Unaudited Financial Statements
For
the Three and Nine Months Ended September 30, 2008 and 2007 and the
Period
of June 6, 2007 (Inception) to September 30, 2008
Note
2 – Significant Accounting Policies (continued)
Recent Accounting
Pronouncements (continued)
In
December, 2007, the FASB issued SFAS No. 160, “Non-controlling interests in
Consolidated Financial Statements, an amendment of ARB No. 51.” SFAS
No. 160 applies to “for-profit” entities that prepare consolidated financial
statements where there is an outstanding non-controlling interest in a
subsidiary. The Statement requires that the non-controlling interest be
reported in the equity section of the consolidated balance sheet but identified
separately from the parent. The amount of consolidated net income
attributed to the non-controlling interest is required to be presented, clearly
labelled for the parent and the non-controlling entity, on the face of the
consolidated statement of income. When a subsidiary is de-consolidated,
any retained non-controlling interest is to be measured at fair value.
Gain or loss on de-consolidation is recognized rather than carried as the
value of the retained investment. The Statement is effective for fiscal
years and interim periods beginning on or after December 15, 2008. It
cannot be adopted earlier but, once adopted, is to be applied retroactively.
This pronouncement has no effect on this Company’s financial reporting at
this time.
In
December 2007, the FASB issued SFAS No.141 (revised 2007), “Business Combinations” (“SFAS
141(R)”) and SFAS No. 160, “Noncontrolling Interests in
Consolidated Financial Statements” (“SFAS 160”). These standards aim to
improve, simplify, and converge internationally the accounting for business
combinations and the reporting of noncontrolling interests in consolidated
financial statements. The provisions of SFAS 141 (R) and SFAS 160 are effective
for the fiscal year beginning April 1, 2009. The adoption of SFAS 141(R)
and SFAS 160 has not impacted the Company’s financial statements.
None of
the above new pronouncements has current application to the Company, but may be
applicable to the Company’s future financial reporting.
Note 3 – Stockholders’
Equity
Common
stock
The
authorized common stock of the Company consists of 70,000,000 shares with par
value of $0.001. On June 6, 2007, the Company authorized the issuance
of 2,200,000 shares of its $.001 par value common stock at $0.015 per share in
consideration of $3,500 in cash and $29,500 in legal and business
services.
Preferred
stock
The
authorized preferred stock of the Company consists of 5,000,000 shares with a
par value of $.001. The Company has no preferred stock issued or
outstanding.
7
BELLA
VIAGGIO, INC.
(A
Development Stage Company)
Notes
to the Unaudited Financial Statements
For
the Three and Nine Months Ended September 30, 2008 and 2007 and the
Period
of June 6, 2007 (Inception) to September 30, 2008
Note 3 – Stockholders’ Equity
(continued)
SB-2 Registration
Statement
On
October 16, 2007, the Company filed a Form SB-2 Registration Statement with the
Securities and Exchange Commission for 750,000 shares to be sold at a price of
$0.10 per share to the public by a small business issuer under the Securities
Act of 1933. The Securities and Exchange Commission notified the Company on
October 22, 2007 the registration had been declared effective.
Net loss per common
share
Net loss
per share is calculated in accordance with SFAS No. 128, “Earnings Per
Share.” The weighted-average number of common shares
outstanding during each period is used to compute basic loss per
share. Diluted loss per share is computed using the weighted averaged
number of shares and dilutive potential common shares
outstanding. Dilutive potential common shares are additional common
shares assumed to be exercised.
Basic net
loss per common share is based on the weighted average number of shares of
common stock outstanding during 2007 and since inception. As of
September 30, 2008 and since inception, the Company had no dilutive potential
common shares.
Note
4 – Income Taxes
We did
not provide any current or deferred U.S. federal income tax provision or benefit
for any of the periods presented because we have experienced operating losses
since inception. Per Statement of Accounting Standard No. 109 – Accounting for
Income Tax and FASB Interpretation No. 48 - Accounting for Uncertainty in Income
Taxes an interpretation of FASB Statement No.109, when it is more likely than
not that a tax asset cannot be realized through future income the Company must
allow for this future tax benefit. We provided a full valuation allowance
on the net deferred tax asset, consisting of net operating loss carry-forwards,
because management has determined that it is more likely than not that we will
not earn income sufficient to realize the deferred tax assets during the
carry-forward period.
The
provision for income taxes differs from the amount computed by applying the
statutory federal income tax rate to income before provision for income taxes.
The sources and tax effects of the differences for the periods presented are as
follows:
Income
tax provision at the
|
|
Federal
statutory rate
|
35%
|
Effect
of operating losses
|
-35%
|
0%
|
8
BELLA
VIAGGIO, INC.
(A
Development Stage Company)
Notes
to the Unaudited Financial Statements
For
the Three and Nine Months Ended September 30, 2008 and 2007 and the
Period
of June 6, 2007 (Inception) to September 30, 2008
Note
4 – Income Taxes (continued)
Net
deferred tax assets consist of the following:
From
Inception
|
||||
Net
operating loss carry forward
|
$ | 77,922 | ||
Valuation
allowance
|
(77,922 | ) | ||
Net
deferred tax asset
|
$ | - |
The
Company did not pay any income taxes during the nine months ended September 30,
2008.
The net
federal operating loss carry forward will expire in 2027. This carry
forward may be limited upon the consummation of a business combination under IRC
Section 381.
Note 5 – Related Party
Transactions
The
Company neither owns nor leases any real or personal property. An
officer or resident agent of the corporation provides office services without
charge. Such costs are immaterial to the financial statements and
accordingly, have not been reflected therein. The officers and
directors for 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
interest. The Company has not formulated a policy for the resolution
of such conflicts.
The
officer of the Company has advanced $6.450 for organizational expenses and
professional fees as of September 30, 2008. Interest has not been imputed as the
amounts would be immaterial to the financial statements as a whole.
Note
6 – Warrants and Options
There are
no warrants or options outstanding to acquire any additional shares of common
stock of the Company.
9
Item 2. Management's Discussion and
Analysis of Financial Condition and Plan of Operations.
FORWARD
LOOKING STATEMENTS
This
report contains forward-looking statements that involve risk and uncertainties.
We use words such as "anticipate", "believe", "plan", "expect", "future",
"intend", and similar expressions to identify such forward-looking statements.
Investors should be aware that all forward-looking statements contained within
this filing are good faith estimates of management as of the date of this filing
and actual results may differ materially from historical results or our
predictions of future results.
General
Bella
Viaggio, Inc. (the “Company”) is a development stage company that was
incorporated on June 6, 2007, in the state of Nevada. The Company has never
declared bankruptcy, it has never been in receivership, and it has never been
involved in any legal action or proceedings. Since becoming incorporated, Bella
Viaggio has not made any significant purchase or sale of assets, nor has it been
involved in any mergers, acquisitions or consolidations and the Company owns no
subsidiaries. The fiscal year end is December 31st. The
Company has not had revenues from operations since its inception and/or any
interim period in the current fiscal year.
Plan
of Operation
As of September 30, 2008, we have $978 of cash
available. We have current liabilities of
$6,450. From the date of inception (June 6, 2007)
to September 30, 2008 the Company has recorded a net loss of $77,922 of
which were expenses relating to the initial development of the Company, filing
its Registration Statement on Form SB-2, and expenses relating to maintaining
Reporting Company status with the SEC. In order to survive as a going
concern over the Company will require additional capital investments or borrowed
funds to meet cash flow projections and carry forward our business objectives.
There can be no guarantee or assurance that we can raise adequate capital from
outside sources to fund the proposed business. Failure to secure additional
financing would result in business failure and a complete loss of any investment
made into the Company.
The
Company filed a registration statement on Form SB-2 on October 16, 2007, which
was deemed effective on October 22, 2007. Since this time the Company
has sold 340,500
shares of common stock to the public with total proceeds raised of $34,500. These
proceeds have been utilized by the Company to fund its initial development
including administrative costs associated with maintaining its status as a
Reporting Company as defined by the Securities and Exchange Commission (“SEC”)
under the Exchange Act of 1934 as amended. The Company plans to
continue to focus efforts on selling their common shares through this offering
in order to continue to fund its initial development and fund the expenses
associated with maintaining a reporting company status.
In
addition, over the course of the next 45 to 60 days, management intends to focus
efforts on obtaining a quotation for its common stock on the Over the Counter
Bulletin Board (“OTCBB”). Management believes having its common stock
quoted on the OTCBB will provide it increased opportunity to raise additional
capital for its proposed business development. However, there can be
no guarantee or assurance the Company will be successful in filing a Form 211
application and obtaining a quotation. To date there is no public
market for the Company’s common stock. There can be no guarantee or assurance
that a public market will ever exist for the common stock. Failure to create a
market for the Company’s common stock would result in business failure and a
complete loss of any investment made into the Company.
Product
Research and Development
The
Company does not anticipate any costs or expenses to be incurred for product
research and development within the next twelve months.
Employees
There are
no employees of the Company, excluding the current President and Director, Mr.
Davis and the Company does not anticipate hiring any additional employees within
the next twelve months.
Off-Balance
Sheet Arrangements
As of the
date of this Quarterly Report, the Company does not have any off-balance sheet
arrangements that have or are reasonably likely to have a current or future
effect on the Company's financial condition, changes in financial condition,
revenues or expenses, results of operations, liquidity, capital expenditures or
capital resources that are material to investors. The term "off-balance sheet
arrangement" generally means any transaction, agreement or other contractual
arrangement to which an entity unconsolidated with the Company is a party, under
which the Company has (i) any obligation arising under a guarantee contract,
derivative instrument or variable interest; or (ii) a retained or contingent
interest in assets transferred to such entity or similar arrangement that serves
as credit, liquidity or market risk support for such assets.
10
Item
3. Quantitative
and Qualitative Disclosures about Market Risk.
Not
Applicable
Item
4. Controls and Procedures
The
management of the Company is responsible for establishing and maintaining
adequate internal control over financial reporting, as required by
Sarbanes-Oxley (SOX) Section 404 A. The Company's internal control over
financial reporting is a process designed under the supervision of the Company's
Chief Executive Officer and Chief Financial Officer to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of the Company's financial statements for external purposes in accordance with
U.S. generally accepted accounting principles.
As of
June 30, 2008 management assessed the effectiveness of the Company's internal
control over financial reporting based on the criteria for effective internal
control over financial reporting established in SEC guidance on conducting such
assessments. Based on that evaluation, they concluded that, during the period
covered by this report, such internal controls and procedures were not effective
to detect the inappropriate application of US GAAP rules as more fully described
below. This was due to deficiencies that existed in the design or operation of
our internal control over financial reporting that adversely affected our
internal controls and that may be considered to be material
weaknesses.
The
matters involving internal controls and procedures that the Company's management
considered to be material weaknesses under the standards of the Public Company
Accounting Oversight Board were: (1) lack of a functioning audit committee and
lack of a majority of outside directors on the Company's board of directors,
resulting in ineffective oversight in the establishment and monitoring of
required internal controls and procedures; (2) inadequate segregation of duties
consistent with control objectives; (3) insufficient written policies and
procedures for accounting and financial reporting with respect to the
requirements and application of US GAAP and SEC disclosure requirements; and (4)
ineffective controls over period end financial disclosure and reporting
processes. The aforementioned material weaknesses were identified by the
Company's Chief Financial Officer in connection with the review of our financial
statements as of June 30, 2008 and communicated the matters to our
management.
Management
believes that the material weaknesses set forth in items (2), (3) and (4) above
did not have an affect on the Company's financial results. However, management
believes that the lack of a functioning audit committee and lack of a majority
of outside directors on the Company's board of directors, resulting in
ineffective oversight in the establishment and monitoring of required internal
controls and procedures can result in the Company's determination to its
financial statements for the future years.
We are
committed to improving our financial organization. As part of this commitment,
we will create a position to segregate duties consistent with control objectives
and will increase our personnel resources and technical accounting expertise
within the accounting function when funds are available to the Company: i)
Appointing one or more outside directors to our board of directors who shall be
appointed to the audit committee of the Company resulting in a fully functioning
audit committee who will undertake the oversight in the establishment and
monitoring of required internal controls and procedures; and ii) Preparing and
implementing sufficient written policies and checklists which will set forth
procedures for accounting and financial reporting with respect to the
requirements and application of US GAAP and SEC disclosure
requirements.
Management
believes that the appointment of one or more outside directors, who shall be
appointed to a fully functioning audit committee, will remedy the lack of a
functioning audit committee and a lack of a majority of outside directors on the
Company's Board. In addition, management believes that preparing and
implementing sufficient written policies and checklists will remedy the
following material weaknesses (i) insufficient written policies and procedures
for accounting and financial reporting with respect to the requirements and
application of US GAAP and SEC disclosure requirements; and (ii) ineffective
controls over period end financial close and reporting processes. Further,
management believes that the hiring of additional personnel who have the
technical expertise and knowledge will result proper segregation of duties and
provide more checks and balances within the department. Additional personnel
will also provide the cross training needed to support the Company if personnel
turn over issues within the department occur. This coupled with the appointment
of additional outside directors will greatly decrease any control and procedure
issues the company may encounter in the future.
We will
continue to monitor
and evaluate the effectiveness of
our internal controls and procedures and our internal controls over
financial reporting on an ongoing basis and
are committed to
taking further action and implementing
additional enhancements or improvements, as necessary and as funds
allow.
Changes
in Internal Controls.
There
were no significant changes in the Company's internal controls or, to the
Company's knowledge, in other factors that could significantly affect these
controls subsequent to the date of their evaluation.
11
PART
II - OTHER INFORMATION
Item
1. Legal Proceedings
The
Company is not a party to any pending legal proceedings, and no such proceedings
are known to be contemplated.
No
director, officer, or affiliate of the Company and no owner of record or
beneficial owner of more than 5.0% of the securities of the Company, or any
associate of any such director, officer or security holder is a party adverse to
the Company or has a material interest adverse to the Company in reference to
pending litigation.
Item
2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item
3. Defaults Upon Senior Securities
None.
Item
4. Submission of Matters to Vote of Security Holders
None.
Item
5. Other Information
None.
Item
6. Exhibits and Reports on Form
8-K
|
(a)
Exhibits furnished as Exhibits
hereto:
|
|
|
Exhibit No.
|
Description
|
|
31.1
|
Certification
of Ronald A. Davis pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002
|
|
32.1
|
Certification
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
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.
Bella
Viaggio, Inc.
|
||
Date:
November
19, 2008
|
By:
|
/s/Ronald
A. Davis
|
Ronald
A. Davis
|
||
Chief
Financial Officer, Treasurer and Clerk
|
||
(principal
financial and accounting officer)
|
||
Date:
November
19, 2008
|
By:
|
/s/Ronald
A. Davis
|
Ronald
A. Davis
|
||
President
and Chief Executive Officer
|
12