VIZCONNECT, INC. - Quarter Report: 2014 June (Form 10-Q)

vizc_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 June 30, 2014

o	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: 001-35484

VIZCONNECT, INC.

(Exact name of registrant as specified in its charter)

Nevada		27-3687123
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

136 Dwight Road

Longmeadow, Massachusetts 01106

(Address of principal executive offices (Zip Code)

(855) 849-2666

(Registrant’s telephone number, including area code)

1350 Main Street, Suite 1407

Springfield, Massachusetts 01103

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

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 has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No 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 the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	x
(do not check if smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of August 11, 2014, there were 66,638,390 shares of common stock, $0.001 par value per share, issued and outstanding.

VIZCONNECT, INC.

TABLE OF CONTENTS

FORM 10-Q REPORT

June 30, 2014

		Page Number
PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements.		4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.		18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.		24
Item 4.	Controls and Procedures.		24

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings.		26
Item 1A.	Risk Factors.		26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.		26
Item 3.	Defaults Upon Senior Securities.		27
Item 4.	Mine Safety Disclosures		27
Item 5.	Other Information.		27
Item 6.	Exhibits.		27

SIGNATURES			28

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This Quarterly Report on Form 10-Q (this “Report”) contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements discuss matters that are not historical facts. Because they discuss future events or conditions, forward-looking statements may include words such as “anticipate,” “believe,” “estimate,” “intend,” “could,” “should,” “would,” “may,” “seek,” “plan,” “might,” “will,” “expect,” “predict,” “project,” “forecast,” “potential,” “continue” negatives thereof or similar expressions. Forward-looking statements speak only as of the date they are made, are based on various underlying assumptions and current expectations about the future and are not guarantees. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance or achievement to be materially different from the results of operations or plans expressed or implied by such forward-looking statements.

We cannot predict all of the risks and uncertainties. Accordingly, such information should not be regarded as representations that the results or conditions described in such statements or that our objectives and plans will be achieved and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. These forward-looking statements are found at various places throughout this Report and include information concerning possible or assumed future results of our operations, including statements about potential acquisition or merger targets; business strategies; future cash flows; financing plans; plans and objectives of management, any other statements regarding future acquisitions, future cash needs, future operations, business plans and future financial results, and any other statements that are not historical facts.

These forward-looking statements represent our intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors. Many of those factors are outside of our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Report. All subsequent written and oral forward-looking statements concerning other matters addressed in this Report and attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this Report.

Except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise.

CERTAIN TERMS USED IN THIS REPORT

When this report uses the words “we,” “us,” “our,” and the “Company,” they refer to the combined business of VizConnect, Inc. and its subsidiary, VizConnect LLC. “SEC” refers to the Securities and Exchange Commission.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

VIZCONNECT, INC. AND SUBSIDARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	As of			As of
	June 30,			December 31,
	2014			2013
	(unaudited)
ASSETS

CURRENT ASSETS
Cash	$	797		$	34,904
Prepaid expenses and other current assets		5,618			14,654
TOTAL CURRENT ASSETS		6,415			49,558

Property, plant and equipment - net		1,814			1,937

TOTAL ASSETS	$	8,229		$	51,495

LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Cash Overdraft	$	1,104		$	-
Current portion of convertible notes payable, net of discount of $0 and $85,583 at June 30, 2014 and December 31, 2013, respectively		133,000			32,167
Accounts payable		371,047			237,705
Accrued expenses		148,258			97,088
Deferred revenues		9,655			52,356
Notes payable- related party		29,842			22,500
Notes payable		358,443			72,000
Derivative liability		200,898			203,850
TOTAL CURRENT LIABILITIES		1,252,247			717,666

Convertible notes payable net of discount of $184,768 and $325,130 at June 30, 2014 and December 31, 2013, respectively		47,792			37,370
TOTAL LIABILITIES		1,300,039			755,036

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIT

Preferred Stock: $0.001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of June 30, 2014 and December 31, 2013		-			-
Common Stock: $0.001 par value, 250,000,000 shares authorized, 66,638,390 shares issued and outstanding as of June 30, 2014, and 40,680,000 shares issued and outstanding as of December 31, 2013		66,638			40,680
Additional paid in capital		1,903,439			132,752
Accumulated deficit		(3,340,292	)		(960,993	)
VizConnect, Inc. stockholders' deficit		(1,370,215	)		(787,561	)
Noncontrolling interest		78,405			84,020
Total stockholders' deficit		(1,291,810	)		(703,541	)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	8,229		$	51,495

See accompanying notes to the unaudited condensed consolidated financial statements

VIZCONNECT, INC. AND SUBSIDARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	For the three month period						For the six month period
	ended						ended
	June 30,			June 30,			June 30,			June 30,
	2014			2013			2014			2013

REVENUE
Revenue	$	76,254		$	55,651		$	140,477		$	108,334

Total Revenue		76,254			55,651			140,477			108,334

OPERATING EXPENSES
Programming, Hosting & Technology Expense		16,799			21,131			35,696			35,964
Professional Fees		418,698			58,488			829,193			120,381
General and Administrative		60,068			60,558			937,066			84,847
Selling Expense		19,917			34,226			48,232			59,035
Total Operating Expenses		515,482			174,403			1,850,187			300,227

Loss From Operations		(439,228	)		(118,752	)		(1,709,710	)		(191,893	)

Loss on change in fair value of derivative liability		(83,058	)		(270,977	)		(158,160	)		(270,977	)
Interest Expense		(354,253	)		(12,339	)		(517,044	)		(19,897	)

NET LOSS BEFORE INCOME TAX		(876,539	)		(402,068	)		(2,384,914	)		(482,767	)

Provision for income taxes		-			-			-			-

NET LOSS		(876,539	)		(402,068	)		(2,384,914	)		(482,767	)

Net Loss Attributable to Noncontrolling Interest		-			-			5,615			-

Net Loss Attributable to Controlling Interest	$	(876,539	)	$	(402,068	)	$	(2,379,299	)	$	(482,767	)

Basic and diluted loss per common share	$	(0.01	)	$	(0.01	)	$	(0.04	)	$	(0.01	)

Basic and diluted weighted average shares outstanding		64,863,964			40,680,000			60,648,622			36,934,222

See accompanying notes to the unaudited condensed consolidated financial statements

VIZCONNECT, INC. AND SUBSIDARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

		For the six			For the six
		month period			month period
		ended			ended
		June 30, 2014			June 30, 2013

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss		$	(2,379,299	)	$	(482,767	)
	Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:
	Net Loss attributable to noncontrolling interest		(5,615	)		-
	Depreciation Expense		123			22
	Amortization of debt discount		303,746			5,922
	Loss on change in fair value of derivative liability		158,160			270,977
	Stock issued for services		1,434,625			-
	Changes in Operating Assets and Liabilities:
	Prepaid Expenses		9,036			(7,242	)
	Accounts Payable		133,342			91,826
	Accrued Expenses		68,980			39,065
	Deferred Revenue		(42,701	)		49,133
	Net Cash Used In Operating Activities		(319,603	)		(33,064	)

CASH FLOWS FROM INVESTING ACTIVITIES:
	Fixed asset purchases		-			(2,152	)
	Net Cash Used In Investing Activities		-			(2,152	)


CASH FLOWS FROM FINANCING ACTIVITIES:
	Cash Overdraft		1,104			-
	Proceeds from notes payable - related party		5,000			-
	Repayment of notes payable - related party		(2,500	)		-
	Proceeds from notes payable		477,209			52,500
	Repayment of notes payable		(195,317	)		-
	Equity Contributions		-			20,000
	Net Cash Provided by Financing Activities		285,496			72,500

NET INCREASE (DECREASE) IN CASH			(34,107	)		37,284

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD			34,904			19,842

CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	797		$	57,126

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash Paid for Interest		$	107,625		$	-
Cash Paid for Taxes		$	-		$	-

SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:

During the six months ended June 30, 2014 the Company converted $4,842 of interest to principal on notes payable - related party.

During the six months ended June 30, 2014 the Company reclassified $219,112 of derivative liability into additional paid in capital upon the repayment of notes.

During the six months ended June 30, 2014 the Company converted $142,908 of convertible notes to common stock.

During the six months ended June 30, 2013 the Company allocated $362,500 of notes payable to derivative liability.

See accompanying notes to the unaudited condensed consolidated financial statements

VIZCONNECT, INC. AND SUBSIDARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2014

(UNAUDITED)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION

(A) Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information necessary for comprehensive presentation of financial position and results of operations.

VizConnect, Inc. (the "Company") was setup as a corporation under the laws of the State of Nevada on October 15, 2010. The Company, through its wholly-owned subsidiary, VizConnect LLC, a Massachusetts limited liability company, provides cloud based marketing services using a combination of mobile video marketing, video storage, and cloud computing in one easy to access system for a monthly fee. The Company’s year-end is December 31.

On February 13, 2013, VizConnect, Inc. consummated a share exchange with VizConnect LLC. Under the terms of the share exchange, the members of VizConnect LLC received 25,000,000 shares of the common stock of VizConnect, Inc. for 100% of the issued and outstanding member’s interest of VizConnect LLC. As a result of the transaction, the members of VizConnect LLC became the majority owners of VizConnect, Inc. and VizConnect LLC became a wholly-owned subsidiary.

The reverse merger is deemed a capital transaction and the net assets of VizConnect LLC (the accounting acquirer) are carried forward to the VizConnect, Inc. (the legal acquirer and the reporting entity) at their carrying value before the combination. The acquisition process utilizes the capital structure of VizConnect, Inc. and the assets and liabilities of VizConnect LLC, which are recorded at historical cost. The equity of VizConnect, Inc. is the historical equity of VizConnect LLC retroactively restated to reflect the number of shares issued by the Company in the transaction.

In connection with this transaction, the historical shareholders of VizConnect, Inc. were deemed to have been issued 15,680,000 shares of common stock upon completion of the reverse merger.

On February 23, 2013, VizConnect, Inc. concluded a 4-for-1 stock split, following which there were 40,680,000 shares of common stock issued and outstanding.

On October 29, 2013, the Company formed a majority owned subsidiary to conduct business solely in Canada. The majority owned subsidiary is included in the consolidated financial statements of the Company at its formation. The non-controlling interest investors have contibuted $100,000 into the subsidiary, which represents 20% ownership. The Company owns the remaining 80% of the subsidiaries.

It is management’s opinion that all material adjustments (consisting of normal reoccurring adjustments) have been made, which are necessary for a fair financial statement presentation. The results for the interim period are not necessarily indicative of the results expected for the year.

VIZCONNECT, INC. AND SUBSIDARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2014

(UNAUDITED)

(B) Principal of Consolidation

The accompanying 2014 and 2013 unaudited condensed consolidated financial statements include the accounts of VizConnect, Inc., VizConnect LLC and its 80% owned-subsidiary, VizConnect Canada from the date of incorporation (October 29, 2013).

In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates include the calculation of deferred revenue during the period and determinations of fair values of certain financial instruments

(D) Cash and Cash Equivalents

The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At June 30, 2014 and December 31, 2013, the Company had no cash equivalents.

(E) Income Taxes

The Company accounts for income taxes in accordance with FASB ASC 740 " Accounting for Income Taxes ". Under this approach, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and their liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized.

VIZCONNECT, INC. AND SUBSIDARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2014

(UNAUDITED)

(F) Software Development Costs

We expense software development costs to be marketed to external users, before technological feasibility of such products is reached. We have determined that technological feasibility is reached shortly before the release of those products and as a result, the development costs incurred after the establishment of technological feasibility and before the release of those products were not material, and accordingly, were expensed as incurred. Software development costs totaled $35,696 and $10,614 for the six-months periods ended June 30, 2014 and 2013, respectively.

(G) Business Segments

The Company operates in one segment and therefore segment information is not presented.

(H) Revenue Recognition

The Company will recognize revenue on arrangements in accordance with FASB ASC No. 605, “ Revenue Recognition ”. In all cases, revenue is recognized only when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service is performed and collectability of the resulting receivable is reasonably assured.

The Company recognizes revenue from monthly subscriptions fees in the month in which services are provided.

The Company recognizes revenue from set up fees at the time the initial set up is complete and the fees are earned.

The Company recognizes revenue from distributor membership fees monthly over the one year membership period. Any fees collected in which the services are not provided are recorded as deferred revenue.

(I) Selling Expenses

The Company incurs selling expenses under a “multi-level” compensation plan, which includes commissions for subscription sales made and bonuses for assisting associated distributors in closing initial subscription sales. Commissions are earned from direct sales as well as the sales made through the sales network they have developed. Accrued commissions payable was $50,071 and $42,057 as of June 30, 2014 and December 31, 2013, respectively.

(J) Concentrations

As of June 30, 2014 and 2013, respectively, the Company has no customers whose sales account for more than 10% of total sales.

VIZCONNECT, INC. AND SUBSIDARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2014

(UNAUDITED)

(K) Property and Equipment

Property and equipment is recorded at cost. Additions and betterments are capitalized; maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight-line method over the asset’s estimated useful life, which is 5 years for furniture. Gains and losses on disposal are charged to operations.

(L) Fair Value Measurements

The Company’s capital structure includes the use of convertible debt features that are classified as derivative financial instruments. Derivative financial instruments are recognized as either assets or liabilities and are measured at fair value in accordance with FASB ASC 815 “ Derivatives and Hedging ”. ASC 815 requires that changes in fair value of derivative financial instruments with no hedging designation be recognized as gains (losses) in the earnings statement. Fair value measurement and disclosures are determined in accordance with FASB ASC 820 “ Fair Value Measurements and Disclosures ”.

FASB ASC 820 establishes a framework for measuring fair value by creating a hierarchy for observable independent market inputs and unobservable market assumptions and expands disclosures about fair value measurements. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, the estimates present herein are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value.

The following inputs are used in the valuation of the financial assets and liabilities.

Level 1 - Inputs represent unadjusted quoted prices for identical assets and liabilities exchanged in active markets.

Level 2 - Inputs include directly or indirectly observable inputs other than Level 1 inputs such as quoted prices for similar assets or liabilities exchanged in active or inactive markets; quoted prices for identical assets or liabilities exchanged in inactive markets; other inputs that are considered in fair value determinations of the assets or liabilities, such as interest rates or yield curves that are observable at commonly quoted intervals, volatilities, repayment speeds, loss severities, credit risks and default rates; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 - Inputs include unobservable inputs used in the measurement of assets and liabilities. Management is required to use its own assumptions regarding unobservable inputs, because there is little, if any, market activity in the assets or liabilities or related observable inputs that can be corroborated at the measurement date. Measurements of non-exchange traded derivative contract assets and liabilities are primarily based on valuation models, discounted cash flow models or other valuation techniques that are believed to be used by market participants. Unobservable inputs require management to make certain projections and assumptions about the information that would be used by market participants in pricing assets and liabilities.

VIZCONNECT, INC. AND SUBSIDARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2014

(UNAUDITED)

The fair values of financial instruments that include cash and amounts due to related parties were estimated to approximate their carrying values due to the immediate or relatively short maturity of these instruments.

The Company’s operations and financing activities are conducted primarily in United States dollars, and as a result are not subject to significant exposure to market risks from changes in foreign currency rates. Management has determined that the Company is not exposed to significant credit risk.

The following is a summary of liabilities measured at fair value on a recurring basis at June 30, 2014:

Description	Total Fair Value		Level 1	Level 2	Level 3
Derivatives:
Conversion Feature Liability	$	200,898			$	200,898
Total derivatives	$	200,898			$	200,898

The following is a summary of liabilities measured at fair value on a recurring basis at December 31, 2013:

Description	Total Fair Value		Level 1	Level 2	Level 3
Derivatives:
Conversion Feature Liability	$	203,850			$	203,850
Total derivatives	$	203,850			$	203,850

VIZCONNECT, INC. AND SUBSIDARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2014

(UNAUDITED)

The changes in derivatives measured at fair value for which, the Company has used Level 3 inputs to determine fair value at June 30, 2014 are as follows:

		For the six month ended June 30, 2014
Beginning of the year	$	203,850
Additional loans		58,000
Loss on change in fair value		158,160
Settlements		(219,112	)
End of the quarter	$	200,898

The following is a description of the valuation methodology used for liabilities measured at fair value.

Conversion feature liability – The fair value of the derivative instrument was estimated using the Black Scholes option pricing model. (See Note 6)

(M) Re-classifications

Certain amounts from prior periods have been reclassified to conform to the current period presentation. These reclassifications had no impact on the Company’s net loss or cash flows.

(N) Loss per Share

The Company computes net loss per share in accordance with FASB ASC 260 “ Earnings per Share ”. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options, using the treasury stock method, and convertible preferred stock, using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive.

VIZCONNECT, INC. AND SUBSIDARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2014

(UNAUDITED)

The following summarizes potential anti-dilutive shares:

	June 30, 2014		June 30, 2013
(number of shares)
Convertible notes		6,302,759		2,589,286
Total		6,302,759		2,589,286

(O) Recent Account Pronouncements

Recent accounting pronouncements issued by the Financial Accounting Standards Board (FASB) (including its Emerging Issues Task Force), the AICPA, and the SEC, did not, or are not believed by management, to have a material impact on the Company’s present or future financial statements.

NOTE 2. GOING CONCERN

The Company had a net loss of $2,379,299 attributable to common stockholders for the six months ended June 30, 2014, a Stockholders’ deficit of $1,291,810 and a working capital deficit of $1,245,832 as of June 30, 2014. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital through expanding their mobile video platform designed to help social celebrities, businesses and brands and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Management believes that actions presently being taken to obtain additional funding through implementing its strategic plans, marketing strategy and sales incentives to expand operations will provide the opportunity for the Company to continue as a going concern.

NOTE 3. NOTES PAYABLE-RELATED PARTY

During 2011, the Company entered into two notes payable for a total of $22,500. The Notes have an interest rate of 10%, are unsecured, and due March 15, 2012. On February 14, 2014, these notes plus accrued interest were converted into a new note due on November 14, 2014 with an interest rate of 15%. During the three month ended March 31, 2014, $2,500 was repaid. The Company also converted $4,842 of interest to principal on the notes. During 2014, the Company entered into two notes payable for a total of $5,000 with no interest, are unsecured, and due on demand. As of June 30, 2014 and December 31, 2013, the total amount outstanding is $29,842 and $22,500 respectively. Accrued interest totaled $1,408 and $5,171 as of June 30, 2014 and December 31, 2013, respectively.

VIZCONNECT, INC. AND SUBSIDARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2014

(UNAUDITED)

NOTE 4. NOTES PAYABLE

During 2011, The Company entered into a note payable for $15,000. The Note has an interest rate of 2% monthly, is unsecured, and due on demand. As of June 30, 2014 and December 31, 2013, the total amount outstanding is $13,000. Accrued interest totaled $9,280 and $7,720 as of June 30, 2014 and December 31, 2013, respectively.

On February 4, 2014, the Company received $35,000 in exchange for accounts receivable of $47,915. The amount is repayable on a daily basis whereby the Company pays $300 per day. As of June 30, 2014, $10,443 was owed under this agreement.

In January and February, 2014, the Company entered into notes payable for $30,000. The Notes have an interest rate of 15% per year, are unsecured, and due in January and February, 2015.

In March, 2014, the Company entered into a note payable for $60,000. The Note has a lump sum interest payment due of $4,000, is unsecured, and due September 21, 2014.

In March, 2014, the Company entered into a note payable for $100,000. The Note has an interest rate of 10% with a lump sum of $10,000 due upon repayment, is unsecured, and due September 21, 2014. In the second quarter of 2014, the Company accreted $ 10,000 of the original issuance discount.

On May 15, 2014, the Company entered into a note payable for $100,000. The Note has an interest rate of 10% with a lump sum of $20,000 due upon repayment, is unsecured, and due September 21, 2014. In the second quarter of 2014, the Company accreted $ 15,000 of the original issuance discount.

On June 4, 2014, the Company entered into a note payable for $20,000. The Note has a lump sum interest payment due of $3,000, is unsecured, and due July, 2014.

In Summary, during 2014, the Company received $ 482,209 of notes payable, including convertible notes payable, with maturity terms ranging from one month to one year and interest rates from 8% to 22%. The notes contain various conversion rates and prepayment penalties. As of June 30, 2014, the Company has repaid $197,817 of principal and all of the notes have been retired.

NOTE 5. CONVERTIBLE NOTES PAYABLE

During 2013, the Company received various unsecured convertible loans totaling $215,250 and converted loans payable in the amount of $310,000 to convertible notes payable. During 2013, the Company repaid one convertible note payable in the amount of $42,500. During the first quarter of 2014, the Company received $133,000 of convertible notes payable, one for $75,000 at an interest rate of 22% per year with a term of three months, and one for $58,000 with an interest rate of 8% per year for a term of eight months. During the first quarter of 2014, the Company repaid loans of $42,500, $59,000 and $32,750 less $9,208 of discount. During the second quarter of 2014, the Company repaid a loan of $42,500 and converted $129,940 to common stock. The long-term convertible loans have interest rates of 8% and 12% per year and mature on February 6, 2018 and March 1, 2018. The current convertible loans have interest rates of 8% and 22% per year and were repaid in July, 2014.

VIZCONNECT, INC. AND SUBSIDARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2014

(UNAUDITED)

The following is a summary of the unsecured convertible loans:

Origination date	Maturity Date	Interest Rate			Principal, June 30, 2014			Current Portion			Long-term
February 2013	February 2018		8	%	$	182,560		$	-0-		$	182,560
May 2013	March 2018		12	%	$	20,000		$	-0-		$	20,000
June 2013	March 2018		12	%	$	30,000		$	-0-		$	30,000
December 2013	September 2014		8	%	$	58,000		$	58,000		$	-0-
March 2014	July 2014		22	%	$	75,000		$	75,000		$	-0-
Discount Notes payable					$	(184,768	)	$	(0	)	$	(184,768	)
Total					$	180,792		$	133,000		$	47,792

Interest recognized for the six month periods ended June 30, 2014 and June 30, 2013 were $517,044 and $19,897 respectively.

NOTE 6. DERIVATIVES

The company has a balance of convertible notes totaling $365,560 with certain investors. The notes can be converted following a holding period provided in the promissory note agreement, and at a set price per share, subject to certain re-set provision. This includes price protection terms, which would reset the per-share purchase price if the Company were obligated to convert other convertible liabilities at a lower per share purchase price.

The derivative liability is recorded at fair value on the Company’s financial statements, and any changes in their fair value are included in the consolidated statement of operations as a non-cash item.

VIZCONNECT, INC. AND SUBSIDARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2014

(UNAUDITED)

The derivative liability is revalued and reported at fair value of $200,898 and $203,850 as of June 30, 2014 and December 31, 2013 respectively.

The fair value of the convertible notes was estimated using the Black Scholes option pricing model with the following assumptions for the six months ended June 30, 2014.

Risk free interest rate		.07% and 1.25% based on expected life

Dividend yield		0%

Expected volatility		332%

Expected life (range in years)		.02 to 3.67

NOTE 7. STOCKHOLDERS’ EQUITY

On August 10, 2013, the Company entered into a six month consulting agreement for 5,000,000 shares of common stock. The Company expensed the fair value of $321,800 related to the portion earned during the three months ended March 31, 2014.

On January 1, 2014, the Company entered into a six month consulting agreement for 1,000,000 shares of common stock. The Company expensed the fair value of $100,000 related to the portion earned through June 30, 2014.

On February 11, 2014, the Company granted 13,175,000 shares of common stock to its board of directors. The Company expensed the fair value of $790,500 related to the portion earned through March 31, 2014.

In April, 2014, the Company issued 1,555,430 shares of common stock pursuant to the conversion of $100,575 Convertible Notes and $48,141 interest.

On April 1, 2014, the Company entered into a one year consulting agreement for 4,750,000 shares of common stock. The Company expensed the fair value of $142,500 related to the portion earned through June 30, 2014.

In May, 2014, the Company issued 227,960 shares of common stock pursuant to the conversion of $29,365 Convertible Notes and $3,125 interest.

On May 9, 2014, the Company entered into a three month consulting agreement for 250,000 shares of common stock. The Company expensed the fair value of $35,000 related to the portion earned through June 30, 2014.

On May 14, 2014, the Company entered into a one year consulting agreement for 500,000 shares of common stock of which 125,000 vest per quarter. The Company expensed the fair value of $6,527 related to the portion earned through June 30, 2014.

Increases in additional paid in capital of $80,716 for the three months ended March 31, 2014 and $138,396 for the three months ended June 30, 2014 were made for the conversions and repayments of Convertible Notes.

NOTE 8. RELATED PARTY TRANSACTIONS

During 2011, the Company entered into two notes payable for a total of $22,500. On February 14, 2014, these notes plus accrued interest were converted into a new note due on November 14, 2014 with an interest rate of 15%. During 2014, the Company entered into two notes payable for a total of $5,000 with no interest. As of June 30, 2014 and December 31, 2013, the total amount outstanding is $29,842 and $22,500 respectively. Accrued interest totaled $1,408 and $5,171 as of June 30, 2014 and December 31, 2013, respectively.

During 2012, the Company received various unsecured loans from a related party totaling $310,000. The loans have an interest rate of 8% per year and mature at various days through February 2018. During 2013, the loans were converted into convertible notes payable (See Notes 5 and 6).

During the year ending December 31, 2013, the Company incurred software development expenses totaling $9,800 from a company owned by an officer. As of June 30, 2014, the total amount owed to the related vendor is $42,500 and is recorded in accounts payable.

VIZCONNECT, INC. AND SUBSIDARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2014

(UNAUDITED)

NOTE 9. SUBSEQUENT EVENTS

On July 2, 2014, the Company entered into a $335,000 Convertible Note of which $50,000 was received with the balance to be received in the future upon mutual agreement. The note has an interest rate of 0% if paid within three months, at which time the note will terminate, otherwise 12% for a term of two years.

On July 3, 2014, the Company entered into a $78,750 Convertible Note with an interest rate of 8% per year for a term of one year with an option for a second Convertible Note of $78,750 with the same terms.

On July 17, 2014, the Company entered into two $50,000 Convertible Notes of which $50,000 was received with the second note funds to be received in the future upon mutual agreement. The note has an interest rate of 12% per year for a term of six months.

On July 17, 2014, the Company entered into a $68,000 Convertible Note with an interest rate of 8% per year for a term of nine months.

On July 17, 2014, the Company entered into a $75,000 Note with an interest rate of 15% for a term of three months.

The Company is required to reserve 49,073,000 shares of common stock under the convertible note agreements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion provides information which management believes is relevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read along with our financial statements and notes thereto contained elsewhere in this Report. The following discussion and analysis contains forward-looking statements, which involve risks and uncertainties. Our actual results may differ significantly from the results, expectations and plans discussed in these forward-looking statements.

Overview

The Company was incorporated in the State of Nevada on October 15, 2010. We are a cloud-based, mobile video platform designed to help social celebrities, businesses and brands visually connect with and monetize online fans, followers and customers using mobile and online video. Our proprietary mobile video marketing platform (the “Platform”) allows social celebrities and brands to come together in an elegant manner to leverage the power of social followings to create branded video messaging with integrated native advertising that is not invasive to the consumer. We also assist companies across a wide array of industries in utilizing mobile devices and technologies to create targeted branding and advertising campaigns. Our Platform also utilizes unique keyword-activated campaigns that engage mobile users with video and automated call-to-action prompts. This dynamic, cloud-based marketing tool has both large and small business applications, enterprise solutions for large companies, and white-label opportunities for marketing and communications firms.

On February 13, 2013 (the “Closing Date”), we entered into a Share Exchange Agreement (the “Exchange Agreement”) with (i) VizConnect LLC (“VizConnect”), (ii) all of the members of VizConnect (the “Members”) and (iv) our former principal shareholder pursuant to which we acquired all of the outstanding units of VizConnect in exchange for the issuance of 25,000,000 shares of our common stock to the Members (the “Share Exchange”). The shares issued to the Members in the Share Exchange constituted approximately 61.46% of our issued and outstanding shares of common stock as of and immediately after the consummation of the Share Exchange. In connection with the closing, 40,000,000 shares of our common stock held by our former principal shareholder have been cancelled. As a result of the Share Exchange, VizConnect became our wholly owned subsidiary.

The acquisition is being accounted for as a “reverse merger,” and VizConnect is deemed to be the accounting acquirer in the reverse merger. Consequently, the assets and liabilities and the historical operations that will be reflected in the financial statements prior to the acquisition will be those of VizConnect and will be recorded at the historical cost, and the consolidated financial statements after completion of the acquisition will include the assets, liabilities and operation of the Company and VizConnect from the closing date of the acquisition. As a result of the issuance of the shares of common stock pursuant to the Exchange Agreement, a change in control of occurred as a result of the acquisition.

In connection with the closing of the Exchange Agreement, Mr. Anthony Pasquale, the Company’s principal shareholder, agreed to cancel his 10,000,000 pre-split (or 40,000,000 post-split) shares of common stock that he owned in the Company and we issued 6,250,000 pre-split (or 25,000,000 post-split) shares to members of VizConnect. Additionally, the existing officers and directors from the Company resigned from its board of directors and all officer positions effective immediately after the closing of the reverse merger. Accordingly, our Board of Directors appointed Mr. Paul Cooleen as our President and Treasurer, and Mr. Brian Dee as our Secretary.

The Company’s directors approved the Exchange Agreement and the transactions contemplated thereby. Simultaneously, the Members of VizConnect also approved the Exchange Agreement and the transactions contemplated thereby.

As a result of the Exchange Agreement, the Company ceased its prior business and acquired 100% of the mobile marketing operations of VizConnect, the business and operations of which now constitutes its primary business and operations. Specifically, as a result of the Exchange Agreement on February 13, 2013:

	●	The Company acquired and now owns 100% of the issued and outstanding units of VizConnect LLC, a Massachusetts limited liability company and their mobile marketing business; and
	●	The Company issued 25,000,000 shares of common stock to the Members of VizConnect, constituting approximately 40.4% of the issued and outstanding common stock.

As a result of the Company’s reverse acquisition of VizConnect, the Company has assumed the business and operations of VizConnect with its principal activities engaged in the mobile marketing platform business.

We effected a 4-for-1 forward stock split, which became effective as of February 25, 2013.

On or about April 13, 2013, the Company received written consents in lieu of a meeting of Stockholders from stockholders holding 50.86% of the outstanding shares of the Company’s common stock. This written consent authorized the Company to amend its Articles of Incorporation to change the name of the Company from “VB Clothing, Inc.” to “VizConnect, Inc.” and to increase the number of authorized shares of common stock, par value $0.001, from 70,000,000 to 250,000,000. The Certificate of Amendment, referencing these amendments, was recorded with the State of Nevada on May 10, 2013.

Three Months Ended June 30, 2014 Compared with Three Months Ended June 30, 2013

Revenue:

Revenues for the three-month period ending June 30, 2014 were $76,254, compared with $55,651 for the three-month period ending June 30, 2013, reflecting an increase of 37%. The increase in revenues was primarily attributable to the realization of distributor membership fee revenue that is amortized over the contract period.

Operating Expenses:

Operating expenses for the three-month period ending June 30, 2014 were $515,482 compared with $174,403 for the three-month period ending June 30, 2013, reflecting an increase of 196%. The increase in operating expenses was primarily attributable to an increase in professional fees due to our need for experts specializing in advertising, promotion, and creating brand awareness.

Loss from Operations:

We incurred losses from operations totaling $439,228 for the three-month period ending June 30, 2014, compared to losses from operations totaling $118,752 for the three-month period ending June 30, 2013, reflecting an increase of 270% The increase in losses from operations was primarily attributable to professional fees.

Other Expense:

The Company had other expenses for the three-month period ending June 30, 2014 in the amount of $437,311. This is comprised of a loss on the change in the market value of a derivative liability of $83,058, compared with $270,977 for the three-month period ending June 30, 2013, reflecting a decrease of 69% and interest expense of $354,253, compared with $12,339 of interest expense for the three-month period ending June 30, 2013, reflecting an increase of 2771%. The company has derivative losses in the second quarter of 2014 associated with the fair market value on the company's financial derivatives. The increase in interest expense is primarily associated with the increased cost of borrowing associated with the company’s convertible debt and the payment of prepayment penalties.

Net loss:

We incurred a net loss of $876,539 or 1149% of revenues, for the three-month period ending June 30, 2014, compared to a net loss of $402,068 or 722% of revenues, for the three-month period ending June 30, 2013. The increase in loss is attributable to professional fees and interest expense.

Six Months Ended June 30, 2014 Compared with Six Months Ended June 30, 2013

Revenue:

Revenues for the six-month period ending June 30, 2014 were $140,477, compared with $108,334 for the six-month period ending June 30, 2013, reflecting an increase of 30%. The increase in revenues was primarily attributable to the realization of distributor membership fee revenue that is amortized over the contract period.

Operating Expenses:

Operating expenses for the six-month period ending June 30, 2014 were $1,850,187 compared with $300,227 for the six-month period ending June 30, 2013, reflecting an increase of 516%. The increase in operating expenses was primarily attributable to an increase in professional fees due to our need for experts specializing in advertising, promotion, and creating brand awareness and the issuance of common stock to the board of directors for services.

Loss from Operations:

We incurred losses from operations totaling $1,709,710 for the six-month period ending June 30, 2014, compared to losses from operations totaling $191,893 for the six-month period ending June 30, 2013, reflecting an increase of 791% The increase in losses from operations was primarily attributable to professional fees and the issuance of common stock to the board of directors for services.

Other Expense:

The Company had other expenses for the six-month period ending June 30, 2014 in the amount of $675,204. This is comprised of a loss on the change in the market value of a derivative liability of $158,160, compared with $270,977 for the six-month period ending June 30, 2013, reflecting a decrease of 42% and interest expense of $517,044, compared with $19,897 of interest expense for the six-month period ending June 30, 2013, reflecting an increase of 2499%. The company has derivative losses in the six-month period ending June 30, 2014 associated with the fair market value on the company's financial derivatives. The increase in interest expense is primarily associated with the increased cost of borrowing associated with the company’s convertible debt and the payment of prepayment penalties.

Net loss:

We incurred a net loss of $2,379,299 attributable to common stockholders or 1694% of revenues, for the six-month period ending June 30, 2014, compared to a net loss of $482,767 or 446% of revenues, for the six-month period ending June 30, 2013. The increase in loss is attributable to professional fees, the issuance of common stock to the board of directors, and interest expense.

Plan of Operations

VizConnect is a cloud-based, mobile video platform designed to help social celebrities, businesses and brands visually connect with and monetize online fans, followers and customers using mobile and online video. Our proprietary mobile video marketing platform (the “Platform”) allows social celebrities and brands to come together in an elegant manner to leverage the power of social followings to create branded video messaging with integrated native advertising that is not invasive to the consumer. We also assist companies across a wide array of industries in utilizing mobile devices and technologies to create targeted branding and advertising campaigns. Our Platform also utilizes unique keyword-activated campaigns that engage mobile users with video and automated call-to-action prompts. This dynamic, cloud-based marketing tool has both large and small business applications, enterprise solutions for large companies, and white-label opportunities for marketing and communications firms.

By the end of this fiscal year with the expansion into the social media markets, management is optimistic of expanding growth potential and subsequent increases in revenue.

Critical Accounting Policies and Estimates

Use of Estimates

Software Development Costs

We expense software development costs to be marketed to external users, before technological feasibility of such products is reached. We have determined that technological feasibility is reached shortly before the release of those products and as a result, the development costs incurred after the establishment of technological feasibility and before the release of those products were not material, and accordingly, were expensed as incurred. Software development costs totaled $35,696 and $10,614 for the six months ended June 30, 2014 and 2013, respectively.

Revenue Recognition

The Company will recognize revenue on arrangements in accordance with FASB ASC Topic 605, “Revenue Recognition”. In all cases, revenue is recognized only when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service is performed and collectability of the resulting receivable is reasonably assured. The Company recognizes revenue from monthly subscriptions fees in the month in which services are used. Because a portion of the fees are earned over a month period, any fees collect in which the services are not provided are recorded as deferred revenue. The Company recognizes revenue from set up fees at the time the initial set up is complete and the fees are earned. The Company recognizes revenue from distributor membership fees monthly over the one year membership period. Any fees collected in which the services are not provided are recorded as deferred revenue.

Recent Accounting Pronouncements

Liquidity and Capital Resources

Our cash and cash equivalents is $797, and we have a working capital deficit of $1,245,832, as of June 30, 2014. Despite capital contributions and sales, and both related party and third party loan commitments, we may experience cash flow shortages that can slow our expected growth. We have primarily financed our activities from loans from related and third parties. A significant portion of the funds raised from loans from related and third parties have been and will be used to cover working capital needs such as office expenses, software development expenses and various professional fees.

Our cash flow requirements during this period have been met by contributions of capital and debt financing, plus receipts from sales of the Company’s services and from membership fees from the Company’s distributors. We anticipate that financing will be required until such time as we are able to generate adequate cash flow from operations to support both our cash needs for normal operations, and to support the cash needs for our investment into additional resources and assets to support our growth. Currently we cannot determine when either will occur and as such we will need to obtain financing to cover our costs for the foreseeable future. We continue to seek financing sources, such as those described herein below, as well as others, in order to continue funding normal operations. However, no assurance can be given that these sources of financing will continue to be available. If we are unable to generate profits, or unable to obtain additional funds for its working capital needs, we may have to curtail normal operations, or cease operations completely.

Between March 2013 and May 2013, a shareholder contributed $20,000 in capital to the Company for the purpose of paying certain professional fees.

On May 6, 2013, the Company made available to certain investors a private placement memorandum, pursuant to which the Company offered convertible promissory notes, at a purchase price of $10,000 per note. In response to such offer, the Company closed on sales of single notes to five (5) individuals, on May 23, May 30, June 24 and June 30, 2013, resulting in total net proceeds to the Company of $50,000. The notes bear interest at the rate of 12% per annum. All interest and principal must be repaid on March 1, 2018. Each note may be converted, in whole or in part, into common stock of the Company at any time beginning on March 1, 2014 and ending on March 1, 2018. At the time an investor elects to convert a note, such note is convertible into shares of the Company’s common stock at a conversion price of $0.14 per share. The Company used the proceeds therefore for working capital purposes, including software development associated with the Company’s compensation system and new short code texting service.

During 2013, the Company received various unsecured convertible loans totaling $215,250 and converted loans payable in the amount of $310,000 to convertible notes payable. During 2013, the Company repaid one convertible note payable in the amount of $42,500. During the first quarter of 2014, the Company repaid loans of $42,500, $59,000 and $32,750. During the second quarter of 2014, the Company repaid a loan of $42,500 and converted $129,940 to common stock. The long-term convertible loans have interest rates of 8% and 12% per year and mature on February 6, 2018 and March 1, 2018. The current convertible loans have interest rates of 8% and 22% per year and were repaid in July, 2014.

In January and February, 2014, the Company entered into notes payable for $30,000. The Notes have an interest rate of 15% per year, are unsecured, and due in January and February, 2015.

In March, 2014, the Company entered into a note payable for $60,000. The Note has a lump sum interest payment due of $4,000, is unsecured, and due September 21, 2014.

In March, 2014, the Company entered into a note payable for $100,000. The Note has an interest rate of 10% with a lump sum of $10,000 due upon repayment, is unsecured, and due September 21, 2014.

On May 15, 2014, the Company entered into a note payable for $100,000. The Note has an interest rate of 10% with a lump sum of $20,000 due upon repayment, is unsecured, and due September 21, 2014.

On June 4, 2014, the Company entered into a note payable for $20,000. The Note has a lump sum interest payment due of $3,000, is unsecured, and was repaid July 22, 2014.

On July 17, 2014, the Company entered into a $68,000 Convertible Note with an interest rate of 8% per year for a term of nine months.

On July 17, 2014, the Company entered into a $75,000 Note with an interest rate of 15% for a term of three months.

Going Concern

Off-balance Sheet Commitments and Arrangements

We have no off-balance sheet transactions, arrangements, obligations (including contingent obligations), or other relationships with unconsolidated entities or other persons that have, or may have, a material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are a Smaller Reporting Company and are not required to provide the information under this item.

Item 4. Controls and Procedures.

Disclosure of controls and procedures.

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports, filed under the Securities Exchange Act of 1934, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable and not absolute assurance of achieving the desired control objectives. In reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. In addition, the design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, a control may become inadequate because of changes in conditions or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

As required by the SEC Rule 13a-15(b), we carried out an evaluation under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on the foregoing, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weaknesses described below.

In light of the material weaknesses described below, we performed additional analysis and other post-closing procedures to ensure our financial statements were prepared in accordance with generally accepted accounting

principles. Accordingly, we believe that the financial statements included in this report fairly present, in all material respects, our financial condition, results of operations and cash flows for the periods presented.

A material weakness is a control deficiency (within the meaning of the Public Company Accounting Oversight Board (PCAOB) Auditing Standard No. 2) or combination of control deficiencies that result in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. Management has identified the following two material weaknesses which have caused management to conclude that as of June 30, 2014 our disclosure controls and procedures were not effective at the reasonable assurance level:

We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act which is applicable to us for the three-months ended June 30, 2014. Management evaluated the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

We do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

To address these material weaknesses, management performed additional analyses and other procedures to ensure that the financial statements included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented.

Changes in internal controls over financial reporting.

There has been no change in our internal control over financial reporting that occurred during the fiscal quarter covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

We are not currently involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

Item 1A. Risk Factors.

We are a Smaller Reporting Company and are not required to provide the information under this item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

On January 9, 2014, we entered into a convertible note financing transaction for the principal amount of $58,000. This note matures on September 19, 2014. It bears interest at 8% per annum. The note is convertible into common stock at the lender’s option with a conversion rate equal to 58% of the lowest 3 trading prices during the last 10 consecutive trading days. Based on our current stock price of $0.045 per share, this note could convert at a conversion price of $0.0261 per share which would result in an additional issuance of 2,222,223 shares of common stock. This note was paid off in full in July 2014 and there is no outstanding principal or interest due.

On March 20, 2014, we entered into a convertible note financing transaction for the principal amount of $75,000. This note matures on June 20, 2014. It bears interest at 22% per annum. The note is convertible into common stock at the lender’s option with a conversion price of $0.0001. If converted, this note could convert into an issuance of 750,000,000 shares of common stock. This note was paid off in full in July 2014 and there is no outstanding principal or interest due.

On July 2, 2014, we entered into a convertible note financing transaction for the principal amount of $50,000. This note matures on June 25, 2016. It bears interest at 12% per annum. The note is convertible into common stock at the lender’s option with a conversion rate equal to the lesser of: (a) $0.10; or (b) 60% of the lowest trade price in the 25 trading days previous to the conversion. Based on our current stock price of $0.045 per share, this note could convert at a conversion price of $0.027 per share which would result in an additional issuance of 1,851,852 shares of common stock.

On July 3, 2014, we entered into a convertible note financing transaction for the principal amount of $78,750. This note matures on July 3, 2015. It bears interest at 8% per annum. The note is convertible into common stock at the lender’s option with a conversion price of $0.001. If converted, this note could convert into an issuance of 78,750,000 shares of common stock.

On July 17, 2014, we entered into a convertible note financing transaction for the principal amount of $50,000. This note matures on January 17, 2015. It bears interest at 12% per annum. The note is convertible into common stock at the lender’s option with a conversion rate equal to the lower of: (i) a 50% discount to the average of the three lowest daily trading prices for the previous 20 trading days to the date of conversion; or (b) a 50% discount to the average of the 3 lowest daily trading prices for the previous 20 trading days before the date that this notice was executed. Based on our current stock price of $0.045 per share, this note could convert at a conversion price of $0.0225 per share which would result in an additional issuance of 2,222,223 shares of common stock.

On July 17, 2014, we entered into a convertible note financing transaction for the principal amount of $68,000. This note matures on April 21, 2015. It bears interest at 8% per annum. The note is convertible into common stock at the lender’s option with a conversion price of $0.001. If converted, this note could convert into an issuance of 68,000,000 shares of common stock.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number		Exhibit Title

31.1*		Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1+		Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS**		XBRL Instance Document

101.SCH**		XBRL Taxonomy Schema

101.CAL**		XBRL Taxonomy Calculation Linkbase

101.DEF**		XBRL Taxonomy Definition Linkbase

101.LAB**		XBRL Taxonomy Label Linkbase

101.PRE**		XBRL Taxonomy Presentation Linkbase

__________________

* Filed herewith.

** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

+ In accordance with SEC Release 33-8238, Exhibit 32.1 is being furnished and not filed.

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.

	VizConnect, Inc.

Dated: August 14, 2014	By:	/s/ Paul Cooleen
		Paul Cooleen
		President, Chief Executive Officer, and Chief Financial Officer (Principal Executive Officer and Principal Financial and Accounting Officer)