YUMMIES INC - Quarter Report: 2017 March (Form 10-Q)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2017

( ) 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 000-32361

YUMMIES, INC.

(Exact name of registrant as specified in charter)

Nevada	87-0615629
(State or other jurisdiction of Employer incorporation or organization)	(I.R.S. IdentificationNo.)

1981 East Murray Holiday Rd, Salt Lake City, Utah	84117
(Address of principal executive offices)	(Zip Code)

801-272-9294

Registrant's telephone number, including area code

___________________________________

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

Indicate by check mark whether the 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 [ ]

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 [ ]

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. Se the definitions of "large accelerated filer", "accelerated filer", and "smaller reporting company" in Rule 12b-2 of the Exchange Act

Large Accelerated Filer [ ]	Accelerated Filer [ ]

Non-Accelerated filer [ ]	Smaller Reporting Company [ x ]

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

APPLICABLE ONLY TO CORPORATE ISSUERS:

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

Class	Outstanding as of May 1, 2017
Common Stock, $0.001	2,505,000

INDEX

			Page
			Number
PART I.

	ITEM 1.	Financial Statements (unaudited)	3

		Balance Sheets March 31, 2017 and September 30, 2016	4

		Statements of Operations For the three and six months ended March 31, 2017 and 2016	5

		Statements of Cash Flows For the six months ended March 31, 2017 and 2016	6

		Notes to Financial Statements	7

	ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	10

	ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	11

	ITEM 4T.	Controls and Procedures	11

PART II.

	ITEM 6.	Exhibits	11

	Signatures		12

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The accompanying balance sheets of Yummies, Inc. ( development stage company) at March 31, 2017 and September 30, 2016, and the related statements of operations for the three and six months ended March 31, 2017 and 2016 and statements of cash flows for the six months ended March 31, 2017 and 2016 have been prepared by the Company's management in conformity with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature.

Operating results for the quarter ended March 31, 2017, are not necessarily indicative of the results that can be expected for the year ending September 30, 2017.

YUMMIES, INC.

BALANCE SHEETS

MARCH 31, 2017 AND SEPTEMBER 30, 2016

	March 31,			September 30,
	2017			2016
Assets

Current Assets:
Cash	$	125		$	203
Prepaid expenses		8,333			3,333

Total current assets		8,458			3,536

Total Assets	$	8,458		$	3,536

Liabilities and Stockholders' Equity

Current Liabilities:
Accounts payable	$	4,600		$	5,800
Interest payable		2,817			2,666
Interest payable, stockholders		16,119			15,115
Notes payable		3,774			3,774
Notes payable, stockholders		25,100			25,100

Total current liabilities		52,410			52,455

Stockholders' Equity:
Common stock, $.001 par value 50,000,000 shares authorized, 2,505,000 issued and outstanding		2,505			2,505
Additional paid-in capital		101,932			81,412
Accumulated deficit		(148,389	)		(132,836	)

Total Stockholders' Equity		(43,952	)		(48,919	)

Total Liabilities and Stockholders' Equity	$	8,458		$	3,536

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

YUMMIES, INC.

STATEMENTS OF OPERATIONS

	For the			For the			For the			For the
	Three Months			Three Months			Six Months			Six Months
	Ended			Ended			Ended			Ended
	March 31,			March 31,			March 31,			March 31,
	2017			2016			2017			2016

Revenues	$	--		$	--		$	--		$	--

Expenses, general and administrative		3,519			4,269			14,398			11,718

Operating loss		(3,519	)		(4,269	)		(14,398	)		(11,718	)

Other income (expense):
Interest expense		(578	)		(578	)		(1,155	)		(1,155	)

Net loss	$	(4,097	)	$	(4,847	)	$	(15,553	)	$	(12,873	)

Net loss per share	$	--		$	--		$	(0.01	)	$	(0.01	)

Weighted average shares outstanding		2,505,000			2,505,000			2,505,000			2,505,000

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

YUMMIES, INC.

STATEMENTS OF CASH FLOWS

	For the			For the
	Six Months			Six Months
	Ended			Ended
	March 31,			March 31,
	2017			2016

Cash flows from operating activities:
Net loss	$	(15,553	)	$	(12,873	)
Adjustment to reconcile net loss to cash provided by operating activities:
Increase in prepaid expenses		(5,000	)		(5,000	)
(Decrease) in accounts payable and interest payable		(45	)		(45	)
Expenses paid directly by shareholder		20,520			17,840

Net cash used by operating activities		(78	)		(78	)

Cash flows from investing activities		--			--

Cash flows from financing activities:		--			--

Net decrease in cash		(78	)		(78	)

Cash, beginning of period		203			359

Cash, end of period	$	125		$	281
Interest paid	$	--		$	--
Income taxes paid	$	--		$	--

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

YUMMIES, INC.

NOTES TO FINANCIAL STATEMENTS

1.	Summary of Business and Significant Accounting Policies

	a.	Summary of Business

		The Company was incorporated under the laws of the State of Nevada on June 10, 1998. Planned principal operations have not yet commenced. The Company was formed to pursue business opportunities.

	b.	Basis of Presentation

		The accompanying financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") as promulgated in the United States of America.

	c.	Cash Flows

		For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash or cash equivalents.

	d.	Net Loss Per Share

		The net loss per share calculation is based on the weighted average number of shares outstanding during the period.

	e.	Use of Estimates

		The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Notes to Financial Statements – Continued

	f.	Fair Value of Financial Instruments

		ASC 820-10 requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. ASC 820-10 defines the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. As of March 31 2017 and September 30, 2016, the carrying value of certain financial instruments approximates fair value due to the short-term nature of such instruments.

2.	Notes Payable

	On January 10, 2007, and May 22, 2009 the Company converted $2,105 and $1,669 of accounts payable from its transfer agent into a one-year notes payable. The note balance of $3,774 at March 31, 2017 and September 30, 2016 bears interest at 8% and both principal and accrued interest is convertible into common stock at $.025 per share. The first note payable was due on January 10, 2008. The second note payable was due on May 22, 2010.

3.	Notes Payable, Stockholders

	Stockholder notes payable consist of the following at March 31, 2017 and September 30, 2016:

	March 31, 2017		September 30, 2016

Note payable to an individual, also a stockholder of the Company, interest is being charged at 8%, the note is unsecured and due on February 9, 2008. The note principal and accrued interest is convertible into common stock at $.025 per share	$	6,000	$	6,000

Notes payable to an individual also a stockholder and director of the Company, interest is being charged at 8%, the notes are unsecured and all are due one year from issuance. The notes principal and accrued interest are convertible into common stock at $.025 per share.		19,100		19,900

	$	25,100	$	25,100

Notes to Financial Statements – Continued

4.	Issuance of Common Stock

	On August 13, 1998, the Company issued 1,000,000 shares of its $.001 par value common stock for an aggregate price of $1,000.

	In February 1999, pursuant to Rule 504 of Regulation D of the Securities and Exchange Commission, the Company sold 17,500 shares of its common stock at a price of $1.00 per share. Costs of $6,471 associated directly with the offering were offset against the proceeds.

	On December 15, 2000, an officer and stockholder of the Company returned 600,000 shares of common stock to authorized but unissued shares.

	On February 5, 2001 the Company authorized a 6 for 1 forward split of its common shares. The forward split has been retroactively applied in the accompanying financial statements.

5.	Warrants and Stock Options

	No options or warrants are outstanding to acquire the Company's common stock.

6.	Income Taxes

	Company has had no taxable income under Federal or State tax laws. The Company has loss carryforwards totaling $132,832 that may be offset against future federal income taxes if not used, the carryforwards will expire between 2021 and 2035. Due to the Company being in the development stage and incurring net operating losses, a valuation allowance has been provided to reduce the deferred tax assets from the net operating losses to zero. Therefore, there are no tax benefits recognized in the accompanying statement of operations.

Notes to Financial Statements – Continued

7.	Going Concern

	As shown in the accompanying financial statements, the Company incurred a net loss of $15,553 during year ended March 31, 2017 and accumulated losses of $148,389 since inception at June 10, 1998. The Company's current liabilities exceed its current assets by $43,952 at March 31, 2017. These factors create an uncertainty as to the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon the success of raising additional capital through the issuance of common stock and the ability to generate sufficient operating revenue. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The Company's management is seeking and intends to acquire interests in various business opportunities which, in the opinion of management, will provide a profit to the Company but it does not have the working capital to be successful in this effort. The Company is not currently engaging in any substantive business activity and has no plans to engage in any such activity in the foreseeable future. In its present form, the Company may be deemed to be a vehicle to acquire or merge with a business or company. The Company does not intend to restrict its search to any particular business or industry, and the areas in which it will seek out acquisitions, reorganizations or mergers may include, but will not be limited to, the fields of high technology, manufacturing, natural resources, service, research and development, communications, transportation, insurance, brokerage, finance and all medically related fields, among others. Although the Company has had discussions with various parties as to possible acquisitions, no definitive agreements have been reached with any such party, at this time.

Three and six month Period Ended March 31, 2017 and 2016

The Company did not generate any revenue during the three and six months ended March 31, 2017 and 2016.

General and administrative expenses were $3,519 and $14,398 for the three and six months ended March 31, 2017, respectively, compared to general and administrative expenses of $4,269 and $11,718 for the same periods in 2016. Interest expense was $578 and $1,155 for the three and six months ended March 31, 2017, respectively, compared to $578 and $1,155 for the same period in 2016. As a result of the foregoing, the Company realized net losses of $4,097 and $15,553 for the three and six months ended March 31, 2017, respectively, compared to $4,847 and $12,873 for the same periods in 2016. The Company's increased net loss is attributable to a lack of business, increased ongoing professional costs associated with preparing the Company's public reports, and timing differences.

Liquidity and Capital Resources

At March 31, 2017, assets consisted of $125 in cash and $8,333 in prepaid expenses. Liabilities consisted of $4,600 in accounts payable, $18,936 in accrued interest, a note payable of $3,774, and $25,100 notes payable to two stockholders, for total liabilities of $52,410, leaving the Company without any working capital.

Since 2007, the Company has borrowed money from two stockholders of the Company. At March 31, 2017 the outstanding balance is $25,100. The notes are unsecured, bear interest at 8% and are convertible into common stock at $.025 per share.

Currently, the Company has no material commitments for capital expenditures. Management anticipates that operating expenses for the next twelve months will be approximately $5,000 to $10,000. Management understands that it does not have sufficient cash to meet its immediate operational needs and will require additional capital to cover ongoing operating expenses. Management may attempt to raise additional capital for its current operational needs through loans from its officers or shareholders, debt financing, equity financing or a combination of financing options. However, there are no existing understandings, commitments or agreements for such an infusion; nor can there be assurances to that effect.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Required by smaller reporting companies.

ITEM 4T. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures. Our management, with the participation of our president/chief financial officer, carried out an evaluation of the effectiveness of our "disclosure controls and procedures" (as defined in the Securities Exchange Act of 1934 (the "Exchange Act") Rules 13a-15(e) and 15-d-15(e)) as of the end of our last fiscal quarter, March 31, 2017, (the "Evaluation Date"). Based upon that evaluation, our president/chief financial officer concluded that, as of the Evaluation Date, our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act (i) is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms and (ii) is accumulated and communicated to our management, including our president and our chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting. There were no changes in our internal controls over financial reporting that occurred during our last fiscal quarter (ended March 31, 2017) that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART 2 - OTHER INFORMATION

(a) Exhibits

Exhibit 31.1	Rule 13a-14(a)/15d-14(a) Certification.

Exhibit 32.1	Certification by the Chief Executive Officer/Acting Chief Financial Officer Relating to a Periodic Report Containing Financial Statements.*

101.INS	XBRL Instance*

101.SCH	XBRL Schema*

101.CAL	XBRL Calculation*

101.DEF	XBRL Definition*

101.LAB	XBRL Label*

101.PRE	XBRL Presentation*

* The Exhibit attached to this Form 10-Q shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to liability under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

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 there unto duly authorized.

	Yummies, Inc.
	[Registrant]

	S/ Susan Santage
	Susan Santage, President & Treasurer
May 9, 2017