Attached files
file | filename |
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EX-31.2 - Panacea Global, Inc. | v181086_ex31-2.htm |
EX-32.2 - Panacea Global, Inc. | v181086_ex32-2.htm |
EX-32.1 - Panacea Global, Inc. | v181086_ex32-1.htm |
EX-31.1 - Panacea Global, Inc. | v181086_ex31-1.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
10-K
ANNUAL
REPORT UNDER SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE
ACT OF 1934
For
Fiscal Year Ended
December
31, 2009
Commission
File #33-0680443
MONEYLOGIX GROUP,
INC.
(Exact
name of registrant as specified in its charter)
Nevada
(State or
other jurisdiction of incorporation or organization)
260 Edgeley Blvd, Suite 12, Concord, Ontario L4K 3Y4 Canada
(Address
of principal executive offices)(Zip Code)
905-761-1400
(Registrant's
telephone no. including area code)
Securities
registered pursuant to Section 12(b) of the Act: None
Title of
each class Name of each exchange on which registered
Securities
registered pursuant to Section 12(g) of the Act:
Common Stock, $0.0001 par
value
(Title of
class)
(Former
name, former address and former fiscal year,
if
changed since last report)
Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in
Rule 405 of the Securities Act.
Yes ¨ No x
Indicate
by check mark if the registrant is not required to file reports pursuant to
section 13 or Section 15(d) of the Act.
Yes ¨ No x
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 ¨
Check if
there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-K not contained in this form, and no disclosure will be contained,
to the best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K.
¨
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting company
filer. See definition of “accelerated filer” and “large accelerated
filer” in rule 12b-2 of the Exchange Act (Check one):
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 ¨ No x
Indicate
the number of shares outstanding of the Registrant’s common stock as of the
latest practicable date.
Class
|
Outstanding at April 15, 2010
|
||
Common
Stock, $.0001 par value
|
85,763,586
|
Revenues
for year ended December 31, 2009: $ 3,277
Aggregate
market value of the voting common stock held by non-affiliates of the registrant
as of April 15, 2010 is: $328,179.
Transfer
Agent as of April 15,2010 :
OTR,
Inc.
Transfer
Agent & Registrar
1000 SW
Broadway, Suite 920
Portland,
Oregon 97205
(503)
225-0375
www.transfer.com
TABLE
OF CONTENTS
PART
I
|
||
ITEM
1.
|
DESCRIPTION
OF BUSINESS
|
3
|
ITEM
1A.
|
RISK
FACTORS
|
8
|
ITEM
1B.
|
UNRESOLVED
STAFF COMMENTS
|
8
|
ITEM
2.
|
DESCRIPTION
OF PROPERTY
|
8
|
ITEM
3.
|
LEGAL
PROCEEDINGS
|
8
|
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS
|
9
|
PART
II
|
||
ITEM
5.
|
MARKET
FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
|
9
|
ITEM
6.
|
SELECTED
FINANCIAL DATA
|
10
|
ITEM
7.
|
MANAGEMENT
S DISCUSSION AND ANALYSIS
|
10
|
ITEM
7A.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
11
|
ITEM
8.
|
FINANCIAL
STATEMENTS AND SUPPLEMENTARY DATA
|
11
|
ITEM
9.
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
|
11
|
ITEM
9A
|
CONTROLS
AND PROCEDURES
|
11
|
ITEM
9B.
|
OTHER
INFORMATION
|
12
|
PART
III
|
||
ITEM
10.
|
DIRECTORS,
EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS: COMPLIANCE
WITH SECTION 16(A) OF THE EXCHANGE
ACT
|
13
|
ITEM
11.
|
EXECUTIVE
COMPENSATION
|
14
|
ITEM
12.
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
|
14
|
ITEM
13.
|
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
|
15
|
ITEM
14.
|
PRINCIPAL
ACCOUNTANT FEES AND SERVICES
|
15
|
PART
IV
|
||
ITEM
15.
|
EXHIBITS
AND FINANCIAL STATEMENT SCHEDULES
|
16
|
SIGNATURES
|
16
|
2
PART
I
ITEM
1. DESCRIPTION OF BUSINESS
Classified
as a smaller reporting company as defined by rule 229.10 (f)(1), the following
provides a description of our business.
Form
and Year of Organization
MoneyLogix
Group, Inc. (“Company”, “We”,
“Our”, or “MoneyLogix Group”), formerly Homelife, Inc., a corporation
incorporated under the laws of Nevada, is an early development stage
capital investment company focused on opportunistic acquisitions in the real
estate market. MoneyLogix Group’s focus is on creating
value through timely acquisitions, investing in high-yielding value enhancement
tactics, and executing the best exit strategies for each unique investment
property in Canada, USA and other international countries.
It is
MoneyLogix Group’s intent to use its capital for the acquisition of undervalued
residential and commercial real estate and zoned property and, with limited
redevelopment, sell the acquired properties at a profit. In an
effort to mitigate any risk of loss, we will use our best efforts to lease our
acquired premises until such time as property values and market demands provide
for a satisfactory return on investment to our shareholders upon the divestiture
of properties from our real estate portfolio.
To
execute the business strategy, the following individuals were added to our
management team effective May 11, 2009: Mike Knarr, President & Chief
Executive Officer; Gary Cilevitz, Chief Financial Officer and Corporate
Secretary; Tom Copeland, Executive Vice President; Adam Seanor, Executive Vice
President. Concurrently, the Corporation elected Alex Haditaghi
to the position of Chairman of the Board effective August 11,
2009. The Board of Directors consist of Alex Haditaghi, Mike Knarr
and Gary Cilevitz as at May 11, 2009 and are currently searching for independent
directors. Majid Haditaghi resigned effectively May 12, 2009 as
an officer and director. Effective September 4, 2009 Tom Copeland and Adam
Seanor were no longer employed by the Company. Effective November 15,
2009, Mike Knarr resigned as President & Chief Executive Officer and as a
Director of the Company. Gary Cilevitz will fulfill the duties
of President & Chief Executive Officer as of November 15,
2009.
MoneyLogix
are presently conducted through the Company’s subsidiaries, MoneyLogix Group,
Inc (an Ontario, Canada company).
The company was originally incorporated
in 1995 and its present ownership and form occurred in January 2008 after a
reverse takeover as described in more detail below.
Bankruptcy,
Receivership or Similar Proceeding
None
Material
Reclassification, Merger, Consolidation, or Purchase or Sale of a Significant
Amount of Assets
On
September 7, 2006 the Company entered into an Agreement and Plan of Merger with
MIT Holding, Inc. This agreement provided for the following: (1) a tax free
reorganization with MIT Holding, Inc. whereby MIT became the wholly owned
subsidiary of HomeLife; (2) a $250,000 payment to the Company to pay off the
then present liabilities; (3) Retention of 240,000 shares of our common stock
after a 4.2 to 1 reverse stock split by Andrew Cimerman; Mr. Cimerman retired a
certain amount of shares since he owned more than 240,000 shares after the 4.2
to 1 reverse stock split and the assets spun off were in consideration for
retirement of such shares. The transaction had a closing date of September 29,
2006 Since the Closing took place subsequent to the
reporting of MIT's December 31, 2005 financial statements, the
Company had undertaken a fairness opinion for the spin off of the assets to Mr.
Cimerman.
On
November 29, 2006, Homelife filed a $2 million breach of contract claim against
MIT Holding, Inc. in Federal Court. On March 22, 2007, both parties agreed to
terminate the agreement with the payment of $27,500 from MIT Holding, Inc. to
Homelife.
On
January 3, 2008, Homelife entered into a share exchange agreement with
Moneylogix Inc., a Delaware private corporation. The reverse merger transaction
effected a change of control of the Company. The accounting acquirer is
MoneyLogix, Inc. and the historical operations of the Company are the operations
of MoneyLogix, Inc. Pursuant to the terms of the share exchange agreement, the
parties agreed to the following:
3
1.
|
Mr.
Cimerman, the former Company Chief executive and majority shareholder,
agreed to transfer 458,000 shares of the Company to the Company treasury
in exchange for the spin off of all assets of the Company to Mr. Cimerman.
This was executed at closing on May 28, 2008. Mr. Cimerman still had a
shareholder loan to be satisfied by the
Company;
|
2.
|
Moneylogix
Group agreed to change the name of the Company from Homelife, Inc. to
Moneylogix Group, Inc. This was executed on January 29th ,
2008;
|
3.
|
Moneylogix
Group agreed to issue 100,000,000 shares of our common stock to Moneylogix
Inc. in exchange for 100% of Moneylogix Inc.’s issued and outstanding
stock. 80,000,000 shares of the Company were issued on May 28, 2008 to
Moneylogix Inc. 100% of the shares of Moneylogix Inc. were transferred to
Moneylogix Group making Moneylogix Inc. a wholly owned subsidiary of the
Company on May 28, 2008. On June 13, 2008, 200,000 additional shares of
the Company were issued to Moneylogix Inc. shareholders. 19,800,000 shares
of the Company are still to be transferred to Moneylogix Inc.
shareholders, post agreement closure on May 28, 2008, pending changes to
the number of shares authorized for issuance.On July 9, 2009 5,000,000 shares
of the company were issued and the remaining 14,800,000 obligation were
cancelled.
|
4.
|
Moneylogix
Inc. agreed to pay to the Company $250,000 for the satisfaction of all
outstanding debt of the Company, including the outstanding amount owed to
Mr. Cimerman. Moneylogix Inc. made payment of $250,000 to an agreed upon
trust agent on May 28, 2008, to be released to the Company upon on the
complete satisfaction of all the terms of the
agreement;
|
5.
|
The
Company will effect a 22 to 1 reverse split of the Company’s stock. The 22
to 1 reverse stock split took place on May 28,
2008;
|
6.
|
Following
the 22 to 1 reverse stock split, Moneylogix Group agreed to issue 490,310
shares of common stock (post 22-for-1 reverse stock split) to Mr.
Cimerman, the former Company Chief executive and majority shareholder, in
consideration for Mr. Cimerman retiring a certain portion of debt the
Company owed to him and cancelling 10,000 of Our Class A preferred
shares and 50 of Our Class AA Preferred Shares held by him. The
490,310 shares issued to Mr. Cimerman are restricted and locked up for
transfer and monetization for 24
months.
|
Acquisition
of 2131059 ONTARIO LIMITED
On May
22, 2009, MoneyLogix completed the acquisition of 2131059 ONTARIO LIMITED
(“Mapleview”, or “Acquisition”), in accordance with the share purchase agreement
between the parties. Pursuant to the terms of the agreement,
MoneyLogix agreed to issue 8,775,000 restricted common shares to 2206659 Ontario
Ltd valued at $1.75 (CDN$2.00) per share for a total of $ 15,389,000 (CDN
$17,550,000) and assumed additional debt in the amount of approximately $
7,857,500 (CDN $9,0000,000). MoneyLogix has assigned all the common
shares of Mapleview to MoneyLogix Group, Inc (“MLXG CANADA”), a
100% owned subsidiary of MoneyLogix. As a result of
this assignment, Mapleview becomes a 100% wholly owned subsidiary of MLXG
CANADA. Since MLXG CANADA is a wholly owned subsidiary of MoneyLogix,
MoneyLogix becomes the indirect owner of Mapleview.
About
2131059 Ontario Ltd.
Established
in March 2007, Mapleview is the registered owner of the property municipally
known as North Side Mapleview Drive East, Barrie, Ontario comprising
approximately 50 acres of land, being PIN 580910288, S.Pt.Lot 16, Conc, Being
Part 1, Reference 51R-22937, City of Barrie, County of Simcoe, and comprising
approximately 49.48 acres PIN 580911689, S ½ Lot 16, Conc. 12, Being Part 1
Reference Plan 51R-22928, City of Barrie, County of Simcoe;
MoneyLogix
purchased the property after extensive review and investigation of the future
development potential. The local municipality, Barrie, has adopted
the planning department’s recommendations regarding the density (number of units
per hectare) and intensification (increasing density) throughout the City, which
will become part of the municipality’s Official Plan expected to be adopted on
June 16, 2009. This property is included in that densification,
potentially raising the approved number of dwelling units from 250 currently
approved to approximately 2,600 units.
This
property is located at the corner of Mapleview Drive and Yonge Street adjacent
to the GO Train Station in Barrie which provides daily commuter transit service
directly to downtown Toronto, and immediately adjacent to a residential
development that is expected to be fully completed and occupied in
2010. The property is the last remaining section in the vicinity both
designated for residential development and intensification.
4
The
Vendor of the lands worked closely with City Planning staff and councilors, and
has provided a concept plan for the site including approximately 1,500 dwelling
units, and while the concept plan has yet to be approved for zoning and draft
subdivision, it is believed that because of the excellent location of the
property site plan approval may be achieved in 12-18 months.
With the
potential for increased densification and the proximity to the GO Train,
MoneyLogix’s management believes the Mapleview property demonstrates the
Company’s strategy of opportunistically investing in properties with the
potential for significant capital appreciation.
The
purchase price for 2131059 was approximately $23,000,000 (Canadian $26,300,000)
which was funded by assumption of Mortgages Payable of $7,568,000(Canadian
$8,630,000), Accounts Payable of $175,000(Canadian $200,000) and the issuance of
8,775,000 restricted common shares of MoneyLogix at $1.75(Canadian $2.00) per
share.
Under the
purchase method of accounting, the initial purchase price is allocated to
2131059’s assets based upon their estimated fair values as of the date of the
acquisition. The preliminary purchase price allocation as of May 20, 2009 is as
follows:
At May 20, 2009
|
||||
(Numbers
rounded to the
nearest 0000)
|
||||
Property
under Development
|
$
|
23,113,000
|
||
Cash
and Other Assets
|
4,000
|
|||
Due
from Baywood Homes Partnership
|
130,000
|
|||
Total
assets acquired
|
23,247,000
|
|||
Mortgages
Payable
|
7,568,000
|
|||
Accounts
Payable(limited to $175,000 by seller)
|
290,000
|
|||
Total
Liabilities acquired
|
7,858,000
|
|||
Net
assets acquired
|
15,389,000
|
|||
Stock
Issued to sellers [8,775,000@$1.7538 US]
|
15,389,000
|
|||
Net
shares issued
|
$
|
15,389,000
|
The above
table comprises our supplemental disclosure of non-cash investing and financing
activities.
The
Company acquired three Mortgages as of May 20, 2009 consisting of the
following:
May 20, 2009
|
||||
Mortgage
notes payable (a)
|
$
|
5,813,847
|
||
Mortgage
notes payable (b)
|
1,052,280
|
|||
Mortgage
notes payable (c)
|
701,520
|
|||
Totals
|
$
|
7,567,647
|
(a)
|
Mortgage
note payable to Firm Capital payable in monthly instalments, bearing
interest at a floating rate at the greater of 10.75% per annum or the
Toronto Dominion Interest rate plus 4.00%. The term is 1 year
expiring October 1, 2009 with $17,140 ($20,000CDN) principal payments per
month being calculated on a declining balance method. This mortgage
note is secured by a first mortgage interest in a real estate
property in Ontario, Canada.
|
(b)
|
Mortgage
note payable to Sora Development Corp payable in monthly instalments of
interest only, at a rate of 10% per annum. The mortgage is currently
month to month and has been guaranteed by an unrelated third party. This
mortgage note is secured by a second mortgage interest in a real
estate property in Ontario, Canada.
|
(c)
|
Mortgage
note payable to C-1 Holdings Inc. payable in monthly instalments of
interest only, at a rate at of 10% per annum. The mortgage is
currently month to month and has been guaranteed by an unrelated third
party. This mortgage note is secured by a third mortgage interest in
a real estate property in Ontario,
Canada.
|
5
New
Fourth Mortgage
As
disclosed in the 8-K filed on July 22, 2008 per
the addendum to the agreement of the share exchange agreement
dated January 3, 2008, MoneyLogix had an obligation to issue an
additional 20,000,000 shares to a
shareholder. In a related party transaction occurring on July 9,
2009, in consideration for the cancelation of the obligation to issue 19,800,000
shares to the shareholder, MoneyLogix agreed to issue only 5,000,000 of those
shares and allow a 4th mortgage to be registered on its Mapleview property
in the amount of $819,000 (CDN $950,000). The consideration received
was reviewed by management, the board of directors and with independent legal
counsel and was deemed reasonable. By entering into this transaction, the
Company avoided further shareholder dilution of 15 million shares in an amount
equivalent to $0.0545 per share. Whereas the fair market share price on July 9,
2009 was $2.00, the book value per share price at June 30, 2009 was
$0.16.
The
fourth mortgage was issued to Trisan Equitable Corporation (“Trisan”) in the
amount of $819,000 (CDN $950,000) with a maturity date of October 30, 2009 with
0% interest. If the mortgage is not paid by the maturity date, default
interest on the mortgage will be charged from October 31, 2009 at an interest
rate of 24% per annum, calculated semi-annually. As security for payment
of the debt pursuant to the mortgage, a transfer/deed of land in registerable
form for the property (“Quitclaim’) will be held and utilized on behalf of and
for the benefit of Trisan. Trisan will be permitted and authorized to register
the Quitclaim on title upon occurrence of a trigger date. A trigger date
shall be deemed to occur on the earlier of the following: November 30,
2009 if the debt plus accrued interest has not been paid or if an event of
default has not been cured prior to the expiration of the 30 day period, on the
30th day following written notice being sent by Trisan or its solicitors. The
Trisan mortgage was paid out in November 2009
Disposition
of 2131059 ONTARIO LIMITED
On August
24, 2009, MoneyLogix Group, Inc. (“MoneyLogix”, the “Company” or “We”) completed
the disposition of 2131059 ONTARIO LIMITED (“Mapleview” or “2131059”), in
accordance with the share purchase agreement between MoneyLogix and Ralph
Canonaco, in trust. Mapleview is the registered owner of the property
municipally known as North Side Mapleview Drive East, Barrie, Ontario comprising
approximately 50 acres of land, being PIN 580910288, S.Pt.Lot 16, Conc, Being
Part 1, Reference 51R-22937, City of Barrie, County of Simcoe, and comprising
approximately 49.48 acres PIN 580911689, S ½ Lot 16, Conc. 12, Being Part 1
Reference Plan 51R-22928, City of Barrie, County of Simcoe.
The
purchaser was part of the original group that MoneyLogix had acquired this
property originally from. Pursuant to the terms of the agreement, the
purchaser agreed to the purchase price of Sixteen Million,
Fifty One Thousand, Three Hundred and Fifty One dollars
$16,051,351 (CDN $17,287,305).
The
consideration received was satisfied as follows: the purchaser
assumed all existing mortgages at closing of $ 8,792,895 (CDN $9,470,000),
provided mortgages to MoneyLogix of $2,349,100 (CDN $ 2,530,000) and the return
of 8,775,000 restricted common shares of MoneyLogix which were issued in
connection with the original purchase of Mapleview.
The
8,775,000 restricted common shares of MoneyLogix per the agreement were valued
at $0.46(CDN $0.50) for a total of $4,036,500 (CDN $4,387,500).
The
mortgages received are valued at $2,349,100 (CDN $2,530,000) and are due
December 31, 2009, consisting of a collateral mortgage in fifth
position on Mapleview property and a collateral mortgage in second position on a
property in Downtown Toronto. The mortgages have an interest rate of
0% to October 28, 2009, and from October 29, 2009 thereafter at the rate of 1.5%
per month. The mortgages have a personal guarantee from the
purchaser.
In
addition to the consideration noted above, MoneyLogix will receive the
following:
Two
Serviced Family Residential Lots, subject to a reasonable cost for severance and
a cost sharing agreement. Management estimates the value of these
serviced lots have a net total value of $373,560 (CDN
$400,000);
100
residential units, subject to a cost sharing agreement. Management
estimates the value of these residential lots have a net total value of $700,426
($750,000)
An option
to acquire 150 residential units, subject to a cost sharing agreement, for
$14,009 (CDN $15,000) each. Management has not estimated a value at
the present time; and,
The
purchaser assumed accounts payable of up to $280,170 (CDN
$300,000).
6
After
reviewing several exit strategies for the Mapleview lands including refinancing,
joint ventures and other outright sales, MoneyLogix management and the Board of
Directors determined that the executed transaction provided for the best use of
the company’s assets. Anticipated proceeds from the mortgages will
provide working capital to support MoneyLogix’s operations and business plan for
approximately 18 months.
After the
completed transaction, MoneyLogix estimation in regards to the Mapleview
transaction was left with the following consideration:
Mortgages
Receivable
|
$
|
1,867,800
|
||
Serviced
Single Family Residential Lots (net)
|
373,560
|
|||
Residential
Units- Gross (subject to cost sharing agreement)
|
700,426
|
|||
$
|
2,941,786
|
On
November 17, 2009, the Company sold the Mortgage Receivable, Residential
Units and the option to acquire 150 residential units for cash consideration
equal to $1,903,800 (CDN $2,000,000), two promissory notes equal to $
230,588 (CDN $245,240) and $ 713,9255 (CDN $750,000). Two Serviced Family
Residential Lots with a net total value of $ 373,560 (CDN $400,000) were
retained. The Promissory Note equal to $230,346is interest bearing at 1% per
month due December 31, 2009. This note is secured by a 6th
Mortgage on the Mapleview Property. The terms of the $ 713,925 promissory
note is non interest bearing till August 2010 and then 12 % per annum and due
December 31, 2010.
Business
of Issuer
Products
and Services
MoneyLogix
Group is an early development stage capital investment company focused on
opportunistic acquisitions in the real estate market. MoneyLogix Group
focus is creating value through timely acquisitions, investing in high-yielding
value enhancement tactics, and executing the best exit strategies for each
unique investment property in Canada, USA and other international
countries.
It is
MoneyLogix' intent to use its capital for the acquisition of undervalued
residential and commercial real estate and zoned property and, with limited
redevelopment, sell the acquired property at a substantial profit in the future
when real estate values return to historical norms or better. Where ever
possible, we will lease acquired premises to obtain rental income until such
time as property values and market demands allow a divestiture of properties
from our real estate portfolio that achieves a satisfactory return on investment
to shareholders
MoneyLogix
is currently developing a strategy to focus on real estate investment
activities.
Government
Licensure and Approvals
None
Effect
of Existing or Probable Government Regulations on the Business
None
Research
and Development Activities in Past Two Years
None.
Environmental
Compliance Costs and Effects
None.
Employees
The
Company had two full time employees at December 31, 2009.
7
ITEM
1A. RISK FACTORS
Not
applicable as a smaller reporting company.
ITEM
1B. UNRESOLVED STAFF COMMENTS
None
ITEM 2. DESCRIPTION OF
PROPERTY
As of
December 31, 2009 MoneyLogix operated out of a space located at 260 Edgeley
Blvd, Suite 12, Concord, Ontario, Canada L4K 3Y4. Our telephone number is
(905)761-1400 and our fax number is (877)410-4845. Our internet website can be
found under the domain name of www.moneylogixgroup.com
ITEM
3. LEGAL PROCEEDINGS
|
A)
|
The
Company have commenced an action on February 2010 in Ontario against
Lawrence Cogan, Ralph Canonaco, Transbay Developments Inc and 213105
Ontario Limited (“Defendants”). The statement of claim is for aggregate
payments equal to approximately the promissory note of $142,725 ($150,000
CDN) and accrued interest from November 17, 2009 to the present date. The
promissory was due December 31, 2009 with four percent interest per month.
The Defendants have filed a notice to intent to defend on March 23, 2010
but not have yet filed a statement of defence. The Company will pursue all
legal means to collect these promissory note and the related interest
payments.
|
|
B)
|
The
Company have commenced an action on February 2010 in Ontario against Ralph
Canonaco and 213105 Ontario Limited (“Defendants”). The statement of claim
is for the severance of the two real property lots on the property held by
the defendants and damages totalling $3,000,000. The defendants were
required to severe the real property lots per an agreement dated August
25, 2010 and failed to do so. The Defendants have filed a notice to intent
to defend on March 23, 2010 but not have yet filed a statement of defence.
The Company will pursue all legal means to severe these real property lots
and damages.
|
|
C)
|
Two
former employees, Adam Seanor and Tom Copeland, (“Plaintiffs”) have
commenced an action on October 2009 in Ontario, Canada against the
Company. The statement of claim is for an aggregate payment equal to approximately
$476,000($500,000 CDN) related to a wrongful
dismissal. The Company plans to vigorously defend itself in this
claim and has launched a counter suit against the plaintiffs in the amount
of $1,903,000($2,000,000 CDN). Included in Accounts Payable and Stock
Compensation Liability is approximately $226,000 relating to salaries,
expenses and stock compensation. The stock compensation liability was set
up during Q2 2009 and has not been removed since this is a contentious
issue. We have not
accrued for this event since, at the present time, the Company and
its legal counsel agree that the likelihood of the outcome
of this proceeding cannot be reasonably determined or
quantified.
|
D)
|
A
Company and its principals (“Plaintiffs”) have commenced an action on
December 2009 in Ontario, Canada against the Company. The status of this
action is inactive due to numerous errors in the statement of claim which
were identified by Company’s legal counsel and submitted back to the
Plaintiffs to correct and resubmit. The Plaintiffs have not yet
resubmitted their amended statement of claim since they were contacted in
February 2010. The incorrect statement of claim is for an aggregate
payment of approximately $7,707,000($8,100,000 CDN) and 6,250,000 common
shares from treasury related to breach of contract. The Company plans
to vigorously defend itself once it receives the amended claim and will
launch a counter suit against the plaintiffs. Included in Accounts
Payable is approximately $6,600 ( $6,945 CDN) relating to rental
expense charged to the company. At the present time, the Company and
its legal counsel agree that the outcome of this proceeding cannot be
reasonably determined at this
time.
|
8
ITEM
4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
PART
II
ITEM
5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
Market
Information
Our
shares of common stock are approved for quotation on the OTC Bulletin Board
under the symbol “MLXG”.
The
following table represents the closing high and low bid information for our
common stock during the last two fiscal years as reported by the OTC Bulletin
Board. The quotations reflect inter-dealer prices, without retail mark-up,
mark-down or commission and may not represent actual transactions. The
market for our common stock is sporadic and our stock is thinly
traded.
2009
|
High
|
Low
|
||||||
First
Quarter
|
$
|
0.51
|
$
|
0.51
|
||||
Second
Quarter
|
$
|
2.00
|
$
|
0.51
|
||||
Third
Quarter
|
$
|
2.00
|
$
|
1.01
|
||||
Fourth
Quarter
|
$
|
1.01
|
$
|
0.05
|
2008
|
High
|
Low
|
||||||
First
Quarter
|
$ | 2.00 | $ | 0.88 | ||||
Second
Quarter
|
$ | 1.01 | $ | 0.55 | ||||
Third
Quarter
|
$ | 0.55 | $ | 0.55 | ||||
Fourth
Quarter
|
$ | 0.55 | $ | 0.51 |
2007
|
High
|
Low
|
||||||
First
Quarter
|
$ | 1.32 | $ | 1.32 | ||||
Second
Quarter
|
$ | 1.54 | $ | 1.32 | ||||
Third
Quarter
|
$ | 1.98 | $ | 1.32 | ||||
Fourth
Quarter
|
$ | 1.98 | $ | 1.10 |
Holders
On
December 31, 2009, there were 1026 beneficial shareholders of record for our
outstanding common stock.
Dividends
To date,
we have paid no dividends on our shares of common stock and have no present
intention of paying any dividends on our shares of common stock in the
foreseeable future. The payment by us of dividends on the shares of common stock
in the future, if any, rests solely within the discretion of our board of
directors and will depend upon, among other things, our earnings, capital
requirements and financial condition, as well as other factors deemed relevant
by our board of directors. Although dividends are not limited currently by
any agreements, it is anticipated that future agreements, if any, with
institutional lenders or others may limit our ability to pay dividends on our
shares of common stock.
9
Securities
Authorized for Issuance under Equity Compensation Plan
2009
On July
9, 2009 the Company issued 5,000,000 (Rule 144) common shares at a price of
$0.01 per share for a total amount of $5,000 to a former MoneyLogix shareholder.
The shares were issued at $0.01 per share, the par value of the security on the
date of issue such shares were issued pursuant to an exemption from registration
at Section 4(2) of the Securities Act of 1933.
2008
The
Company issued 80,000,000 shares, with an additional 20,000,000 shares to
be issued, of our Common Stock to the Moneylogix shareholders in exchange for
100% of the outstanding shares of Moneylogix Group Inc, pursuant to the
Agreement and Addendum, dated May 28, 2008. Such shares were issued pursuant to
an exemption from registration at Section 4(2) of the Securities Act of
1933.
On May
28, 2008, pursuant to an agreement and an addendum, the Company issued
563,586 common shares at $0.44 per share for a total amount equal to
$250,564 to former HomeLife Shareholders. The shares were issued at their
par value, $0.01 per sharein exchange for the extinguishment of all outstanding
debt of the company held by the Shareholders. Such shares were issued
pursuant to an exemption from registration at Section 4(2) of the Securities Act
of 1933.
On June
13, 2008 the Company issued 200,000(Rule 144), par value $0.01common shares,
totaling $200 to a former MoneyLogix shareholder. The shares were issued
pursuant to an exemption from registration at Section 4(2) of the Securities Act
of 1933.
ITEM
6. SELECTED FINANCIAL DATA
Not
applicable as a smaller reporting company.
ITEM
7. MANAGEMENT'S DISCUSSION AND ANALYSIS
The
following is management’s discussion and analysis of the consolidated financial
condition and results of operations of MoneyLogix Group, Inc. for the fiscal
years ended December 31, 2009 and 2008. The following information should be
read in conjunction with the audited consolidated financial statements for the
period ending December 31, 2009 and notes thereto appearing elsewhere in this
Form 10-K.
Liquidity
and Capital Resources
At
December 31, 2009 the Company has $1,098,865 of cash in hand and $2,382,312 in
Total Assets. Comparatively, at December 31, 2008, we had zero cash and zero
total assets.
At
December 31, 2009 the Company has liabilities of $281,072 comprised of stock
based liability equal to $204,000 and Accounts Payable and Related Parties of
$77,072. Comparatively at December 31, 2008, we had $17,812 in accrued
liabilities related to professional fees for a total of $17,812 in
liabilities.
On
January 7, 2010, approximately $237,000 was received from the collection of a
promissory note and its related interest receivable.
Results
of Operations
The
Company reported revenues equal to $3,277 consisting of interest earned
from promissory notes during the year ending December 31, 2009. Comparatively,
the Company reported no revenue from operations during the year ending December
31, 2008. The Company reported revenues of $3,277 for the period from December
7, 2007 (the inception date of MoneyLogix) to December 31,
2009.
10
The
Company incurred total operating expenses equal to $798,669 for the year ending
December 31, 2009. These expenses related to stock compensation expense,
consulting and payroll fees, professional fees and a promissory note
allowance. These fees allowed management to commence operations with regard to
setting up the company and doing the necessary filings. Comparatively, the
Company incurred expenses related to professional fees equal to $21,748 for the
year ending December 31, 2008. In addition, the Company incurred
$250,564 in reorganization costs for the year ending December 31,
2008. The Company reported cumulative total operating expenses equal
to $1,157,581 for the period from December 7, 2007 (the inception date of
Moneylogix) to December 31, 2009.
The
Company recorded a net loss of $795,392 for the year ending December 31, 2009.
Comparatively, the Company recorded a Net Loss for the year ended December 31,
2008 equal to $272,3127. For the period from December 7, 2007
(inception date) to December 31, 2009, the Company recorded a cumulative Net
Loss equal to $1,154,304.
Off-Balance
Sheet Arrangements
None
Tabular
Disclosure of Contractual Obligations
Not
applicable as a smaller reporting company.
ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not
applicable as a smaller reporting company.
ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The
financial statements of the Company appear at the end of this report beginning
with the Index to Financial Statements on page F-1.
ITEM
9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
ITEM
9A(T). CONTROLS AND PROCEDURES
Evaluation of Disclosure
Controls and Procedures
We
carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) as of December 31, 2009. This
evaluation was accomplished under the supervision and with the participation of
our chief executive officer/principal executive officer who concluded that our
disclosure controls and procedures are not effective to ensure that all material
information required to be filed in the Form 10-K has been made known to
them.
Management’s Report on
Internal Control Over Financial Reporting
Management
is responsible for establishing and maintaining adequate internal control over
financial reporting, as defined in Rules 13a-15(1) and 15(d) of the Exchange
Act. Internal control over financial reporting is a process to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements in accordance with GAAP. Because of its
inherent limitations, internal control over financial reporting may not prevent
or detect misstatements. Also, projection of any evaluation of effectiveness to
future periods is subject to the risk that controls may become inadequate
because of conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
11
For
purposes of this section, the term disclosure controls and procedures means
controls and other procedures of an issuer that are designed to ensure that
information required to be disclosed by the issuer in the reports that it files
or submits under the Act (15 U.S.C. 78a et seg.) is recorded, processed,
summarized and reported, within the time periods specified in the Commission’s
rules and forms. Disclosure, controls and procedures include, without
limitation, controls and procedures designed to ensure that information required
to be disclosed by in our reports filed under the Securities Exchange Act of
1934, as amended (the “Act”) is accumulated and communicated to the issuer’s
management, including its principal executive and principal financial officers,
or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure.
A
material weakness is a deficiency, or combination of deficiencies, in internal
control over financial reporting such that there is a reasonable possibility
that a material misstatement of our annual or interim financial statements will
not be prevented or detected on a timely basis. In connection with our
management’s assessment of our internal control over financial reporting as
required under Section 404 of the Sarbanes-Oxley Act of 2002, we identified
certain material weaknesses in our internal control over financial reporting as
of December 31, 2009:
·
|
Reliance
upon independent financial reporting consultants for review of critical
accounting areas and disclosures and material non-standard
transaction.
|
·
|
Lack
of sufficient accounting staff which results in a lack of segregation of
duties necessary for a good system of internal
control.
|
Because
of the material weaknesses above, management has concluded that we did not
maintain effective internal control over financial reporting as of December 31,
2009, based on Internal Control over Financial Reporting – Guidance for Smaller
Public Companies issued by COSO.
Remediation of Material
Weaknesses in Internal Control Over Financial Reporting
In order
to remedy our existing internal control deficiencies, as our finances allow, we
will hire a Chief Financial Officer and additional accounting
staff.
Changes in Internal Controls
over Financial Reporting
We have
not yet made any changes in our internal controls over financial reporting that
occurred during the period covered by this report on Form 10-K that has
materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.
This
annual report does not include an attestation report of the Company’s registered
public accounting firm regarding internal control over financial reporting.
Management’s report was not subject to attestation by the Company’s registered
public accounting firm pursuant to temporary rules of the Commission that permit
the Company to provide only management’s report in this annual
report.
ITEM
9B. OTHER INFORMATION
None.
12
PART
III
ITEM
10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS:
COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT
Registrant Director and Executive
Officer
The
following table sets forth, as of April
12, 2010 the name and age of our directors and executive officers. The
directors will hold such office until the next annual meeting of shareholders
and until his successors has been elected and qualified.
Name
|
Age
|
Position
|
|||
Alex
Haditaghi
|
36
|
Chairman
of the Board of Directors
|
|||
Gary
Cilevitz
|
40
|
Director,
Chief Executive Officer, Chief Financial
Officer
and Corporate Secretary
|
Business
Experience
The
following summarizes the occupation and business experience of our Board of
Directors and Corporate Officers:
Alex
Haditaghi, Chairman of the Board of Directors
Alex
Haditaghi has been working in the mortgage industry since 1999. He has worked
with some of the top financial institutions in the country and has solid
relationships with leading mortgage brokers and lenders. Realizing a need for an
online mortgage brokerage in Canada, Mr. Haditaghi formed Lending Tree Canada in
2000, serving as CEO and President until he founded MortgageBrokers.com in
2005.
Gary Cilevitz, Chief Executive
Officer and President, Chief Financial Officer & Corporate Secretary
Mr. Cilevitz is a CA with 15 years experience in Canadian and American
accounting with a focus in high growth public companies. Prior to MoneyLogix,
Mr. Cilevitz held the position of CFO at Richview Resources Inc., a TSX listed
company. During his tenure at Richview, he managed all finance, accounting,
disclosure and regulatory filings.
Significant
Contributing Management
None
Family
Relationships
None.
Involvement
in Certain Legal Proceedings
None
Promoters
and Control Persons
None.
13
Compliance
with Section 16(A) of the Exchange Act
Section
16(a) of the Exchange Act requires the Company’s officers and directors, and
persons who beneficially own more than 10% of a registered class of the
Company’s equity securities, to file reports of ownership and changes in
ownership with the Securities and Exchange Commission and are required to
furnish copies to the Company. To the best of the Company’s knowledge, any
reports required to be filed were timely filed in fiscal year ended December 31,
2009.
Code
of Ethics
MoneyLogix
has adopted a Code of Business Conduct and Ethics applicable to our Directors,
Officers and Management.
Directors and
Committees
As of
December 31, 2009, the Company has only two directors and, as such, has no
nominating, audit or other committees of its board of directors. The two
directors of the Company do qualify as an “audit committee financial
expert.”
As of
December 31, 2009 the Company has two non-independent directors as disclosed
above. Currently, the board and management are searching for qualified
independent board of director members.
ITEM
11. EXECUTIVE COMPENSATION
Name and
Position
|
Year
|
Salary
|
Bonus
|
Stock
Compensation
|
All Other
Compensation
|
Total
|
||||||||||||||||
Majid
Haditaghi (Chairman and
|
2009
|
- | - | - | - | - | ||||||||||||||||
CEO)
|
2008
|
- | - | - | - | - | ||||||||||||||||
Alex
Haditaghi (Chairman)
|
2009
|
$ | 16,500 | - | - | - | $ | 16,500 | ||||||||||||||
Gary
Cilevitz (CEO, CFO and President)
|
2009
|
$ | 46,250 | - | - | $ | 32,400 | $ | 78,650 |
Compensation
of Directors
No
additional compensation was paid to our directors for 2008 and 2009
Stock
Option Grants In The Past Fiscal Year
None
ITEM
12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
Name of Beneficial Owner (1)
|
Number of Total Shares
|
Percent of class (1)
|
||||||
Majid
Haditaghi
|
79,400,000 | 92.5 | % | |||||
All
executive officers and
directors as a group
|
79,400,000 | 92.5 | % |
|
(1)
|
Based
on 85,763,586 shares of common stock issued and outstanding as of December
31, 2009.
|
14
ITEM
13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
None
ITEM
14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Audit
Fees
For the
Company’s fiscal year ended December 31, 2009, we have incurred $8,000 and have
paid for an additional $3,750 for professional services rendered for the
audit and reviews of our financial statements.
For the
Company’s fiscal year ended December 31, 2008, we have incurred $7,500 and have
paid for an additional $5,250 for professional services rendered for the audit
and reviews of our financial statements.
All
Other Fees
None.
Effective
May 6, 2003, the Securities and Exchange Commission adopted rules that require
that before our auditor is engaged by us to render any auditing or permitted
non-audit related service, the engagement be:
-approved
by our audit committee; or
-entered
into pursuant to pre-approval policies and procedures established by the audit
committee, provided the policies and procedures are detailed as to the
particular service, the audit committee is
informed of each service, and such policies and procedures do not include
delegation of the audit committee’s responsibilities to management.
We do not
have an audit committee. Our entire board of directors pre-approves
all services provided by our independent auditors.
The
pre-approval process has just been implemented in response to the new rules.
Therefore, our board of directors does not have records addressing the percentage of
pre-approved audit fees. However, all of the above services
and fees were reviewed and approved by the entire board of directors either
before or after the respective services were rendered.
15
PART
IV
ITEM
15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
The
following documents are included as exhibits to this report pursuant to Item 601
of Regulation S-K.
31.1
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
|
31.2
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
|
32.1
|
Certification
of Chief Executive Officer pursuant to Section 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
|
32.2
|
Certification
of Chief Financial Officer pursuant to Section 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
SIGNATURES
Pursuant
to the requirements of Section 13 or 15(d) 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.
MONEYLOGIX GROUP,
INC.
|
||
By:
|
/s/
Gary Cilevitz
|
|
Gary
Cilevitz
|
||
Director
,Chief Executive Officer and
President
|
Dated:
April 12, 2010
Pursuant
to the requirements of the Securities Exchange Act of 1934, this report has been
signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.
NAME
|
TITLE
|
DATE
|
|||
/s/
Gary Cilevitz
|
Director,
Chief Executive Officer and President
|
April
15, 2010
|
|||
Gary
Cilevitz
|
16
MONEYLOGIX
GROUP, INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31,
2009
F1
MONEYLOGIX
GROUP, INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
DECEMBER
31, 2009
CONTENTS
Page
|
||
FINANCIAL
STATEMENTS
|
||
Report
of Independent Registered Public Accounting Firm
|
F3
|
|
Condensed
Consolidated Balance Sheets
|
F4
|
|
Condensed
Consolidated Statements of Operations
|
F5
|
|
Condensed
Consolidated Statements of Cash Flows
|
F6
|
|
Condensed
Consolidated Statement of Stockholders’ Deficit
|
F7
|
|
Notes
to the Condensed Consolidated Financial Statements
|
F8
– F17
|
F2
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the
Board of Directors and
Stockholders
of MoneyLogix Group, Inc.
(a
development stage company)
As
successor by merger, effective October 1, 2009, to the registered public
accounting firm Rotenberg & Co., LLP, we have audited the accompanying
consolidated balance sheets of MoneyLogix Group, Inc. (a development stage
company) as of December 31, 2009 and 2008, and the related consolidated
statements of operations, change in stockholders’ deficit, and cash flows for
each of the years in the two-year period ended December 31, 2009 and
for the period from inception (December 7, 2007) through December 31, 2009.
MoneyLogix Group, Inc.’s management is responsible for these consolidated
financial statements. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.
We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. The company is not required to
have, nor were we engaged to perform, an audit of its internal control over
financial reporting. Our audit included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the company’s internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our
opinion, the consolidated financial statements referred to above present fairly,
in all material respects, the financial position of MoneyLogix Group, Inc. as of
December 31, 2009 and 2008, and the results of its operations and its cash flows
for each of the years in the two-year period ended December 31, 2009
and for the period from Inception (December 7, 2007) through December 31, 2009,
in conformity with accounting principles generally accepted in the United States
of America.
The
accompanying consolidated financial statements have been prepared assuming that
the Company will continue as a going concern. As discussed in Note 3 to the
consolidated financial statements, the Company's significant operating losses
raise substantial doubt about its ability to continue as a going concern. The
consolidated financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
EFP
Rotenberg, LLP
Rochester,
New York
April 15,
2010
F3
MONEYLOGIX
GROUP, INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
CONDENSED
CONSOLIDATED BALANCE SHEETS
December 31,
2009
|
December 31,
2008
|
|||||||
ASSETS
|
||||||||
Current
Assets
|
||||||||
Cash
|
$
|
1,098,865
|
$
|
-
|
||||
Interest
Receivable
|
3,451
|
-
|
||||||
Property
undergoing development(Note 5)
|
380,600
|
-
|
||||||
Promissory
Notes and Mortgage Receivable(Note 6)
|
899,396
|
-
|
||||||
Total
Assets
|
$
|
2,382,312
|
$
|
-
|
||||
LIABILITIES
AND STOCKHOLDERS’ DEFICIT
|
||||||||
Current
Liabilities
|
||||||||
Accounts
Payable and accrued liabilities
|
$
|
32,676
|
$
|
17,812
|
||||
Due
to Related Parties
|
44,396
|
-
|
||||||
Stock
Compensation Liability(Note 7)
|
204,000
|
-
|
||||||
Total
Liabilities
|
281,072
|
17,812
|
||||||
Stockholders’
Deficit
|
||||||||
Preferred
Stock, $10 par value; 100,000 shares authorized, none issued (Note
9)
|
-
|
-
|
||||||
Capital
stock, $.001 par value; 300,000,000 shares authorized; 85,763,586 issued
and outstanding (Note 9)
|
85,764
|
80,764
|
||||||
Additional
Paid in Capital
|
3,127,424
|
275,056
|
||||||
Stock
subscription receivable
|
-
|
(14,720
|
)
|
|||||
Other
Comprehensive Loss
|
42,356
|
)
|
-
|
|||||
Deficit
accumulated during the development stage
|
(1,154,304)
|
)
|
(358,912
|
)
|
||||
Total
Stockholders’ Deficit
|
2,101,240
|
(17,812
|
)
|
|||||
Total
Liabilities and Stockholders’ Deficit
|
$
|
2,382,312
|
$
|
-
|
The
accompanying notes are an integral part of these financial
statements.
F4
MONEYLOGIX
GROUP, INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended
|
For the Period
December 7,
2007(inception)
|
|||||||||||
December 31,
|
to December 31,
|
|||||||||||
2009
|
2008
|
2009
|
||||||||||
REVENUES
|
$ | 3,277 | $ | - | $ | 3,277 | ||||||
EXPENSES
|
||||||||||||
Professional
Fees
|
119,882 | 21,748 | 146,630 | |||||||||
Office
and General
|
56,362 | - | 56,362 | |||||||||
Promissory
Note allowance
|
180,660 | - | 180,660 | |||||||||
Stock
Compensation expense
|
204,000 | - | 204,000 | |||||||||
Consulting
and Payroll Fees
|
237,765 | - | 319,365 | |||||||||
Cost of Reorganization
|
250,564 | 250,564 | ||||||||||
TOTAL
OPERATING EXPENSES
|
798,669 | 272,312 | 1,157,581 | |||||||||
NET
LOSS
|
$ | (795,392 | ) | $ | (272,312 | ) | $ | (1,154,304 | ) ) | |||
Foreign
Currency Translation
|
42,356 | - | 42,356 | ) | ||||||||
COMPREHENSIVE
INCOME (LOSS)
|
(753,036 | ) | (272,312 | ) | (1,111,948 | ) ) | ||||||
Net
loss per share - basic and diluted
|
$ | (0.01 | ) | $ | (0.00 | ) | $ | (0.01 | ) | |||
Weighted
average number of shares
|
||||||||||||
outstanding
- basic and diluted
|
85,372,627 | 80,443,656 | 82,746,046 |
The
accompanying notes are an integral part of these financial
statements.
F5
MONEYLOGIX
GROUP, INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
Year Ended
December 31,
2009
|
Year Ended
December 31,
2008
|
For the Period
from Inception
(December 7,
2007)
to
December 31,
2009
|
||||||||||
|
||||||||||||
Cash
Flows from Operating Activities
|
||||||||||||
Net
loss
|
$
|
(795,392
|
)
|
$
|
(272,312
|
)
|
$
|
(1,154,304
|
)
|
|||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||||||
Interest
receivable
|
(3,451)
|
-
|
(3,451)
|
|||||||||
Non-Cash
Cost of Reorganization
|
-
|
250,564
|
250,564
|
|||||||||
Expenses
paid by Stockholder
|
-
|
8,936
|
8,936
|
|||||||||
Stock
subscription receivable
|
14,720
|
-
|
14,720
|
|||||||||
Stock compensation
expense
|
204,000
|
-
|
285,600
|
|||||||||
Accounts
Payable and accrued liabilities
|
64,260
|
12,812
|
82,072
|
|||||||||
Net
Cash Used in Operating Activities
|
(515,863)
|
-
|
(515,863
|
)
|
||||||||
Cash
Flows from Investing Activities
|
||||||||||||
Increase
in Property under development
|
(116,303)
|
-
|
(116,303)
|
|||||||||
Increase
in Promissory Notes
|
(142,725)
|
-
|
(142,725)
|
|||||||||
Sale
of Mortgage Receivable
|
1,831,400
|
-
|
1,831,400
|
|||||||||
Net
Cash Provided by Investing Activities
|
1,572,372
|
-
|
1,572,372
|
|||||||||
Cash
Flows from Financing Activities
|
||||||||||||
Net
Cash Provided by Financing Activities
|
-
|
-
|
-
|
|||||||||
Foreign
Exchange on Balances
|
42,356
|
-
|
42,356
|
|||||||||
Cash
and Cash Equivalents - Beginning of Period
|
-
|
-
|
-
|
|||||||||
Cash
and Cash Equivalents - End of Period
|
$
|
1,098,865
|
$
|
-
|
$
|
1,098,865
|
||||||
Supplemental
Cash Flow Information
|
||||||||||||
Interest
paid
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Income
taxes paid
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
The
accompanying notes are an integral part of these financial
statements.
F6
MONEYLOGIX
GROUP, INC.
(A
Development Stage Company)
CONDENSED
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
FOR
THE PERIOD FROM THE DATE OF INCEPTION
(DECEMBER
7, 2007) TO DECEMBER 31, 2009
Common Stock
|
Preferred Stock
|
Additional
Paid-In
|
Stock
Subscription
|
Accumulated
Other
Comprehensive
|
Deficit
Accumulated
During
the
Development
|
Total
Stockholders'
|
||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Receivable
|
Loss
|
Stage
|
Deficit
|
||||||||||||||||||||||||||||
Issuance
of common stock
for services
|
65,280,000 | * | $ | 65,280 | - | $ | - | $ | 16,320 | $ | - | $ | - | - | $ | 81,600 | ||||||||||||||||||||
Issuance
of common
stock
|
14,720,000 | * | $ | 14,720 | - | $ | - | $ | - | $ | (14,720 | ) | $ | - | - | $ | - | |||||||||||||||||||
Net
loss
|
- | $ | - | - | $ | - | $ | - | $ | - | $ | - | (86,600 | ) | $ | (86,600 | ) | |||||||||||||||||||
Balance, December
31, 2007
|
80,000,000 | $ | 80,000 | - | $ | - | 16,320 | $ | (14,720 | ) | $ | - | (86,600 | ) | $ | (5,000 | ) | |||||||||||||||||||
May
28, 2008 Common Shares
Outstanding to former
HomeLife, Inc. Shareholders
|
563,586 | $ | 564 | - | $ | - | 250,000 | $ | - | $ | - | - | $ | 250,564 | ||||||||||||||||||||||
June
13, 2008 Issuance to former MoneyLogixInc.
Shareholder
|
200,000 | $ | 200 | - | $ | - | (200 | ) | $ | - | $ | - | - | $ | - | |||||||||||||||||||||
September
17, 2008 – Invoices
Paid by Shareholder
|
- | $ | - | - | $ | - | 1,436 | $ | - | $ | - | - | $ | 1,436 | ||||||||||||||||||||||
May
28, 2008 Preferred Shares Outstanding
of Former
HomeLife, Inc. Shareholders
|
- | $ | - | 1,500 | $ | 15,000 | - | $ | - | $ | - | - | $ | 15,000 | ||||||||||||||||||||||
September
25, 2008 – Preferred Shares
Cancelled
|
- | $ | - | (1,500 | ) | $ | (15,000 | ) | - | $ | - | $ | - | - | $ | (15,000 | ) | |||||||||||||||||||
November
18, 2008 - Invoice Paid
|
- | - | 7,500 | - | - | 7,500 | ||||||||||||||||||||||||||||||
Net
Loss
|
- | $ | - | - | $ | - | - | $ | - | $ | - | (272,312 | ) | $ | (272,312 | ) | ||||||||||||||||||||
Balance, December
31, 2008
|
80,763,586 | $ | 80,764 | - | $ | - | 275,056 | $ | (14,720 | ) | $ | - | (358,912 | ) | $ | (17,812 | ) | |||||||||||||||||||
May
20, 2009 Purchase and August 22, 2009 Disposition of 2031059 Ontario
Limited(net)(Note 5)
|
- | - | - | - | 2,852,368 | - | - | - | 2,852,368 | |||||||||||||||||||||||||||
June
30, 2009 Stock subscription exchanged for services
|
- | - | - | - | - | 14,720 | - | - | 14,720 | |||||||||||||||||||||||||||
July
9, 2009 Issuance of common stock
|
5,000,000 | 5,000 | 5,000 | |||||||||||||||||||||||||||||||||
Foreign
Currency Translation
|
- | - | - | - | - | - | 42,356 | - | 42,356 | |||||||||||||||||||||||||||
Net
Loss
|
- | - | - | - | - | - | - | (795,392 | ) | (795,392 | ) | |||||||||||||||||||||||||
Balance, December
31, 2009
|
85,763,586 | $ | 85,764 | - | $ | - | 3,127,424 | $ | - | $ | 42,356 | (1,154,304 | ) | $ | 2,101,240 |
* Share and per share amounts reflect
the effect of the May 28, 2008 reorganization.
The accompanying notes are an integral
part of these financial statements.
F7
MONEYLOGIX
GROUP, INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER
31, 2009
1.
|
NATURE
OF OPERATIONS AND ORGANIZATION
|
Nature
of Operations
MoneyLogix
Group, Inc. ("MoneyLogix" or the “Company”), (formerly Homelife, Inc.), which
registered a change of name with the State of Nevada on January 29, 2008 was
formerly known as Homelife, Inc. and is organized under the laws of the State of
Nevada.
MoneyLogix
are presently conducted through the Company’s subsidiaries, MoneyLogix Group,
Inc (an Ontario, Canada company). MoneyLogix Group is a development stage
capital investment company focussed on opportunistic acquisitions in the real
estate market. MoneyLogix Group focus is creating value through
timely acquisitions, investing in high-yielding value enhancement tactics,
and executing the best exit strategies for each unique investment property in
Canada, USA and other international countries.
MoneyLogix
Group, Inc. entered into a share exchange agreement on January 3, 2008 with
MoneyLogix Inc., a Delaware private corporation. The reverse merger transaction
effected a change of control of the Company. The accounting acquirer is
MoneyLogix, Inc. and the historical operations of the Company are the operations
of MoneyLogix, Inc. Pursuant to the terms of the share exchange agreement, the
parties agreed to the following:
1.
|
Mr.
Cimerman, the former Company Chief executive and majority shareholder,
agreed to transfer 458,000 shares of the Company to the Company treasury
in exchange for the spinoff of all assets and liabilities of the Company
to Mr. Cimerman. This was executed at closing on May 28, 2008. Mr.
Cimerman still had a shareholder loan to be satisfied by the
Company;
|
2.
|
MoneyLogix
Group agreed to change the name of the Company from Homelife, Inc. to
MoneyLogix Group, Inc. This was executed on January 29,
2008;
|
3.
|
MoneyLogix
Group agreed to issue 100,000,000 shares of our common stock to MoneyLogix
Inc. in exchange for 100% of MoneyLogix Inc.’s issued and outstanding
stock. 80,000,000 shares of the Company were issued on May 28, 2008 to
MoneyLogix Inc. 100% of the shares of MoneyLogix Inc. were transferred to
MoneyLogix Group making MoneyLogix Inc. a wholly owned subsidiary of the
Company on May 28, 2008. On June 13, 2008, 200,000 additional shares of
the Company were issued to MoneyLogix Inc. shareholders. 19,800,000 shares
of the Company are still to be transferred to MoneyLogix Inc.
shareholders, post agreement closure on May 28, 2008, pending changes to
the number of shares authorized for issuance. On July 9, 2009 5,000,000
shares of the company were issued and the remaining 14,800,000 obligation
were cancelled for consideration of a mortgage of approximately
$900,000($950,000 Canadian), being placed on the Mapleview
property.
|
4.
|
MoneyLogix
Inc. agreed to pay to the Company $250,000 for the satisfaction of all
outstanding debt of the Company, including the outstanding amount owing to
Mr. Cimerman. MoneyLogix Inc. made payment of $250,000 to an agreed upon
trust agent on May 28, 2008, to be released to the Company upon on the
complete satisfaction of all the terms of the agreement. The cash was
transacted between shareholders and did not run through MoneyLogix, Inc.,
therefore this is a non cash transaction included in Capital in the
accompanying Statements of Stockholders
Deficit.
|
5.
|
The
Company will effect a 22 to 1 reverse split of the Company’s stock. The 22
to 1 reverse stock split took place on May 28,
2008;
|
6.
|
Following
the 22 to 1 reverse stock split, MoneyLogix Group agreed to issue 490,310
shares of common stock (post 22-for-1 reverse stock split) to Mr.
Cimerman, the former Company Chief executive and majority shareholder, in
consideration for Mr. Cimerman retiring a certain portion of debt the
Company owes him and cancelling 10,000 of Our Class A preferred shares and
50 of Our Class AA Preferred Shares held by Mr. Cimerman. It was agreed
that the 490,310 shares issued to Mr. Cimerman shall be restricted and
locked up for transfer and monetization for 24 months. The 490,310 shares
of common stock are included in the total 563,586 shares dated May 28,
2008 as Common Shares Outstanding to Former Homelife, Inc. Shareholders in
the accompanying Statements of Stockholders
Deficit.
|
F8
MONEYLOGIX
GROUP, INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER
31, 2009
2.
|
BASIS
OF PRESENTATION
|
The
Company has not earned any revenues from limited principal operations and
accordingly, the Company's activities have been accounted for as those of a
"Development Stage Enterprise" as set forth in ASC 915(formerly SFAS No.
7), Accounting and
Reporting by Development Stage Enterprises. Among the disclosures
required by ASC 915 are that the Company's financial statements be identified as
those of a development stage company, and that the statements of operations,
stockholders' deficit and cash flows disclose activity since the date of the
Company's inception.
3.
|
GOING
CONCERN
|
These
financial statements have been prepared assuming the Company will continue on a
going-concern basis. The Company has incurred losses since inception and the
ability of the Company to continue as a going-concern depends upon its ability
to develop profitable operations and to continue to raise adequate
financing. Accumulated Losses from inception to December 31, 2009 total
$1,154,304. Management is actively targeting sources of additional financing to
provide continuation of the Company’s operations. In order for the Company to
meet its liabilities as they come due and to continue its operations, the
Company is solely dependent upon its ability to generate such
financing.
There can
be no assurance that the Company will be able to continue to raise funds, in
which case the Company may be unable to meet is obligations. Should the Company
be unable to realize its assets and discharge its liabilities in the normal
course of business, the net realizable value of its assets may be materially
less than the amounts recorded in these financial statements.
The
financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts and classification
of liabilities that might be necessary should the Company be unable to continue
in existence.
4.
|
SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
|
The
accounting policies of the Company are in accordance with accounting principles
generally accepted in the United States of America. Presented below are those
policies considered particularly significant:
Basis of Consolidation and
Presentation
The
accompanying consolidated financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America
and include the accounts of the Company, its wholly-owned subsidiaries
MoneyLogix Group, Inc . All significant inter-company transactions
and balances have been eliminated upon consolidation.
Comprehensive
Income or Loss
The
Company adopted ASC 220-10, (formerly SFAS No. 130) establishes standards for
reporting and presentation of comprehensive income and its components in a full
set of financial statements. Comprehensive income is presented in the statements
of stockholders’ deficit, and consists of net loss and unrealized gains (loss)
on available for sale marketable securities; foreign currency translation
adjustments and changes in market value of future contracts that qualify as a
hedge; and negative equity adjustments recognized in accordance with ASC
715-10 (formerly SFAS No. 87). ASC 220-10 requires only additional
disclosures in the financial statements and does not affect the Company’s
financial position or results of operations.
F9
MONEYLOGIX
GROUP, INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER
31, 2009
4.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING
POLICIES(continued)
|
Cash
and Cash Equivalents
The
Company considers cash and highly liquid instruments with an original maturity
of three months or less to be cash and equivalents.
Concentration of Credit
Risk
ASC
815-10, (formerly SFAS No. 105) “Disclosure of Information About Financial
Instruments with Off-Balance Sheet Risk and Financial Instruments with
Concentration of Credit Risk”, requires disclosure of any significant
off-balance sheet risk and credit risk concentration. The Company does not have
significant off-balance sheet risk or credit concentration.
Earnings
or Loss Per Share
The
Company accounts for earnings per share pursuant to ASC 260-10-05 (formerly SFAS
No. 128), Earnings per
Share, which requires disclosure on the financial statements of "basic"
and "diluted" earnings (loss) per share. Basic earnings (loss) per share are
computed by dividing net income (loss) by the weighted average number of common
stock outstanding for the year. Diluted earnings (loss) per share is computed by
dividing net income (loss) by the weighted average number of common stock
outstanding plus common stock equivalents (if dilutive) related to stock options
and warrants for each year.
There
were no dilutive financial instruments for the period from December 7, 2007
(inception) to December 31, 2009.
Financial
Instruments
In
accordance with ASC 825-10-50, (formerly SFAS No. 107), "Disclosures About Fair
Value of Financial Instruments" ("SFAS No. 107"), the estimated fair value of
financial instruments has been determined by the Company using available market
information and valuation methodologies. Considerable judgment is required in
estimating fair value. Accordingly, the estimates may not be indicative of the
amounts the Company could realize in a current market exchange. As of December
31, 2009, the carrying value of accounts payable and accrued liabilities,
advances from related party, and mortgage receivable and promissory notes
approximate their fair value because of the limited terms of these
instruments.
In
accordance with ASC 820-10, (formerly SFAS No. 157), “Defining Fair Value
Measurement”, the Company adopted the standard which defines fair value,
establishes a framework for measuring fair value in generally accepted
accounting principles and expands disclosures about fair value
measurements
Foreign
Currency Translation
The
Company accounts for foreign currency translation pursuant to ASC 830-10,
(formerly SFAS No. 52), “Foreign Currency Translation”. The Company’s
functional currency is the Canadian dollar. All assets and liabilities are
translated into United States dollars using the exchange rates prevailing
at the end of the period. Revenues and expenses are translated using the average
exchange rates prevailing throughout the year.
Unrealized
foreign exchange amounts resulting from translations at different rates
according to their nature are included in accumulated other comprehensive
income.
Realized
foreign currency transaction gains and losses are recognized in
operations.
F10
MONEYLOGIX
GROUP, INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER
31, 2009
4.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING
POLICIES(continued)
|
Income
Taxes
The
Company accounts for income taxes pursuant to ASC 740-10, (formerly SFAS No.
109), Accounting for Income
Taxes. Deferred tax assets and liabilities are recorded for differences
between the financial statements and tax basis of the assets and liabilities
that will result in taxable or deductible amounts in the future based on enacted
tax laws and rates. Valuation allowances are established when necessary to
reduce deferred tax assets to the amount expected to be realized. Income tax
expense is recorded for the amount of income tax payable or refundable for the
period increased or decreased by the change in deferred tax assets and
liabilities during the period.
Impairment
of Long-lived Assets
In
accordance with ASC 360-10-05 (formerly SFAS No. 144), "Accounting for the
Impairment or Disposal of Long-Lived Assets", long-lived assets to be held and
used are analyzed for impairment whenever events or changes in circumstances
indicate that the related carrying amounts may not be recoverable. The Company
evaluates whether events and circumstances have occurred that indicate possible
impairment. If there are indications of impairment, the Company uses future
undiscounted cash flows of the related asset or asset grouping over the
remaining life in measuring whether the assets are recoverable. In the event
such cash flows are not expected to be sufficient to recover the recorded asset
values, the assets are written down to their estimated fair value. Long-lived
assets to be disposed of are reported at the lower of carrying amount or fair
value of asset less cost to sell. As described in note 3, the long-lived assets
have been valued on a going concern basis; however, substantial doubt exists as
to the ability of the Company to continue as a going concern. If the Company
ceases operations, the asset values may be materially impaired.
Property
undergoing development
In
accordance with ASC 835-20 ( formerly SFAS No. 34), “Capitalization of Interest
Cost” and ASC 970-10(formerly SFAS No. 67), “Accounting for Costs and Initial
Rental Operations of Real Estate Projects”, we capitalize direct construction
and development costs, including predevelopment costs, interest, property taxes,
insurance and other costs directly related and essential to the acquisition,
development or construction of a project. Pursuant to ASC 835-20 and ASC
970-10, capitalization of construction, development and redevelopment costs is
required while activities are ongoing to prepare an asset for its intended
use. Costs incurred after a project is substantially complete and ready
for its intended use are expensed as incurred. Costs previously
capitalized related to abandoned acquisitions or development opportunities are
written off. Should development, redevelopment or construction activity
cease, interest, property taxes, insurance and certain costs would no longer be
eligible for capitalization, and would be expensed as incurred
In
accordance with ASC 360-10-5 ( formerly SFAS 144), we classify a property as
“held for sale” when all of the following criteria for a plan of sale have been
met: (1) management, having the authority to approve the action, commits to
a plan to sell the property; (2) the property is available for immediate
sale in its present condition, subject only to the terms that are usual and
customary; (3) an active program to locate a buyer, and other actions
required to complete the plan to sell, have been initiated; (4) the sale of
the property is probable and is expected to be completed within one year;
(5) the property is being actively marketed for sale at a price that is
reasonable in relation to its current fair value; and (6) actions necessary
to complete the plan of sale indicate that it is unlikely that significant
changes to the plan will be made or that the plan will be withdrawn. When
all of these criteria have been met, the property is classified as “held for
sale”, its operations, including any interest expense directly attributable to
it, are classified as discontinued operations in our consolidated statements of
income and amounts for all prior periods presented are reclassified from
continuing operations to discontinued operations. A loss is recognized for
any initial adjustment of the asset’s carrying amount to fair value less costs
to sell in the period the asset qualifies as “held for sale”.
Depreciation of assets ceases upon designation of a property as “held for
sale”.
Revenue Recognition
Revenue
consists of interest earned from investments and is only recognized once earned
and collection is reasonable determined.
F11
MONEYLOGIX
GROUP, INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER
31, 2009
4.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING
POLICIES(continued)
|
Stock-Based
Compensation
In
December 2004, ASC 718 was issued (formerly SFAS No. 123R) Share-Based
Payment. ASC 718 establishes standards for the accounting for
transactions in which an entity exchanges its equity instruments for goods or
services. It also addresses transactions in which an entity incurs liabilities
in exchange for goods or services that are based on the fair value of the
entity’s equity instruments or that may be settled by the issuance of those
equity instruments. ASC 718 focuses primarily on accounting for transactions in
which an entity obtains employee services in share-based payment transactions.
ASC 718 requires that the compensation cost relating to share-based payment
transactions be recognized in the financial statements. That cost will be
measured based on the fair value of the equity or liability instruments
issued.
Use
of Estimates
The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management 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 the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. These
estimates are reviewed periodically, and, as adjustments become necessary, they
are reported in earnings in the period in which they become known.
Recent
Accounting Pronouncements
In
April 2009, the FASB issued ASC 820-10-65-4 (formerly referred to as FSP
SFAS 157-4), "Determining Whether a Market Is Not Active and a Transaction Is
Not Distressed." ASC 820-10-65-4 provides guidelines for making fair value
measurements more consistent with the principles presented in ASC 820-10-65-1.
ASC 820-10-65-4 provides additional authoritative guidance in determining
whether a market is active or inactive, and whether a transaction is distressed,
is applicable to all assets and liabilities (i.e. financial and non-financial)
and will require enhanced disclosures. This standard is effective for periods
ending after June 15, 2009. The Company has adopted this standard and
determined that it does not have an impact on its financial position and results
of operations.
In
April 2009, the FASB issued ASC 825-10-65-1 (formerly referred to as FSP
SFAS 107-1 and APB 28-1), "Interim Disclosures about Fair Value of Financial
Instruments," and "Disclosures about Fair Value of Financial Instruments,
(formerly referred to as FSP SFAS 107)" to require disclosures about fair value
of financial instruments in interim as well as in annual financial statements.
ASC 825-10-65-1 also includes an amendment to "Interim Financial Reporting
(formerly referred to as APB 28-1)," to require those disclosures in all interim
financial statements. This standard is effective for periods ending after
June 15, 2009. The Company has adopted this standard and determined that it
does not have an impact on its financial position and results of
operations.
In May
2009, ASC 855-10 was issued (formerly SFAS No.165), “Subsequent Events,” which
establishes general standards for accounting for disclosure of events that occur
after the balance sheet day but before the financial statement are issued or are
available to be issued. The pronouncement requires the disclosure of the date
through which an entity has evaluated subsequent events and the basis for that
date, whether that date represents the date the financial statements were issued
or were available to be issued. ASC 855-10 is effective with interim and annual
financial periods ending after June 15, 2009. Management has evaluated the
impact of the adoption of ASC 855-10 and it has no impact the Company’s results
of operations, financial position or cash flows.
In July
2009, ASC 105-10-05 was issued (formerly SFAS No. 168) “FASB Accounting Standards
Codification as the single source of authoritative nongovernmental U.S.
generally accepted accounting principles (GAAP). The Codification is effective
for interim and annual periods ending after September 15, 2009. All existing
accounting standards are superseded as described in ASC 105-10-05. All other
accounting literature not included in the Codification is
non-authoritative.
F12
MONEYLOGIX GROUP,
INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER
31, 2009
4.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING
POLICIES(continued)
|
Recent
Accounting Pronouncements (continued)
In
October 2009, the FASB issued the “Accounting Standards Update (“ASU”) 2009-13
Multiple Deliverable Revenue Arrangements a consensus of EITF” (formerly topic
08-1) an amendment to ASC 605-25. The update provides amendments to the criteria
in Subtopic 605-25 for separating consideration in multiple-deliverable
arrangements. The amendments in this update establish a selling price hierarchy
for determining the selling price of a deliverable. The selling price used for
each deliverable will be based on vendor-specific objective evidence if
available, third-party evidence if vendor-specific objective evidence is not
available, or estimated selling price if neither vendor-specific objective
evidence nor third-party evidence is available. The amendments in this update
also will replace the term “fair value” in the revenue allocation guidance with
the term “selling price” in order to clarify that the allocation of revenue is
based on entity-specific assumptions rather than assumptions of a marketplace
participant. The amendments will also eliminate the residual method of
allocation and require that arrangement consideration be allocated at the
inception of the arrangement to all deliverables using the relative selling
price method. The relative selling price method allocates any discount in the
arrangement proportionally to each deliverable on the basis of each
deliverable’s selling price. The update will be effective for revenue
arrangements entered into or modified in fiscal year beginning on or after June
15, 2010 with earlier adoption permitted. The adoption of this standard is not
expected to have material impact on the Company’s consolidated financial
statements.
5.
|
ACQUISITION
AND DISPOSITION OF 2131059 ONTARIO LIMITED AND SUBSEQUENT CONSIDERATION
DISPOSITION
|
ACQUISITION
On May
20, 2009 the Company acquired all of the stock of 2131059 Ontario Limited. The
acquired business owns 100% of an 100 acre property in Barrie, Ontario, Canada
which it is developing.
The
purchase price for 2131059 was approximately $23,000,000million (Canadian
$26,300,000) which was funded by assumption of Mortgages Payable of
$7,568,000(Canadian $8,630,000), Net Accounts Payable of $175,000(Canadian
$200,000) and the issuance of 8,775,000 restricted common shares of MoneyLogix
at $1.75(Canadian $2.00) per share.
Under the
purchase method of accounting, the initial purchase price is allocated to
2131059 s net tangible and assets based upon their estimated fair values as of
the date of the acquisition. The Company disposed of 2131059, as further
discussed below, on August 24, 2009 and adjusted the initial purchase price
based on the fair market valuation of the disposition. The fair market
valuation has been adjusted to Additional Paid in Capital per ASC 805-10
since the disposition was back to a related party of the original seller. The
original share price for the 8,775,000 was $1.75(Canadian $2.00) was adjusted to
$0.34(Canadian $0.37). The preliminary purchase price allocation as of May 20,
2009 and the adjusted purchase price allocation adjusted as of June 30, 2009 is
approximately as follows:
F13
MONEYLOGIX
GROUP, INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER
31, 2009
5.
|
ACQUISITION
AND DISPOSITION OF 2131059 ONTARIO LIMITED AND SUBSEQUENT CONSIDERATION
DISPOSITION (continued)
|
At May 20, 2009
|
At June 30, 2009
|
|||||||
Adjusted
|
||||||||
Property
under Development
|
$ | 23,113,000 | $ | 10,736,000 | ||||
Cash
and Other Assets
|
4,000 | 3,500 | ||||||
Due
to Baywood Homes Partnership(1)
|
130,000 | 130,000 | ||||||
Total
assets acquired
|
23,247,000 | 10,869,500 | ||||||
Mortgages
Payable
|
7,568,000 | 7,568,000 | ||||||
Accounts
Payable(1)
|
290,000 | 289,500 | ||||||
Total
Liabilities acquired
|
7,858,000 | 7,857,500 | ||||||
Net
assets acquired
|
15,389,000 | 3,012,000 | ||||||
Stock
Issued to sellers [8,775,000 common shares]
|
15,389,000 | 3,012,000 | ||||||
Net
shares issued
|
$ | 15,389,000 | $ | 3,012,000 |
The above
table comprises our supplemental disclosure of non-cash investing and financing
activities.
(1)
|
The
agreement called for Accounts Payable to be a limited to $175,000. The
difference would be owed back to the 2131059 by Baywood Homes
Partnership.
|
DISPOSITION
On
August 24th, 2009
MoneyLogix completed the disposition of 2131059 ONTARIO LIMITED (“Mapleview”
or”2131059”), in accordance with the share purchase agreement between MoneyLogix
and Ralph Canonaco, in trust. Mapleview is the registered owner of the property
municipally known as North Side Mapleview Drive East, Barrie, Ontario which
comprises of two lots being approximately 100 acres. The first lot is
approximately 50 acres of land, being PIN 580910288, S.Pt.Lot 16, Conc, Being
Part 1, Reference 51R-22937, City of Barrie, County of Simcoe, and the second
lot of 49.48 acres PIN 580911689, S ½ Lot 16, Conc. 12, Being Part 1 Reference
Plan 51R-22928, City of Barrie, County of Simcoe.
The
purchaser was part of the original group that MoneyLogix had acquired this
property originally from. Pursuant to the terms of the agreement, the
purchaser agreed to the purchase price of Sixteen Million,
Fifty One Thousand, Three Hundred and Fifty One dollars
$16,051,351 (CDN $17,287,305).
The
consideration received was satisfied as follows: the purchaser
assumed all existing mortgages at closing of $ 8,792,895 (CDN $9,470,000),
provided mortgages to MoneyLogix with a face value of $2,349,100 (CDN $
2,530,000) and the return of 8,775,000 restricted common shares of MoneyLogix
which were issued in connection with the original purchase of
Mapleview.
The
8,775,000 restricted common shares of MoneyLogix per the agreement were valued
at $0.46(CDN $0.50) for a total of $4,036,500 (CDN
$4,387,500).
The
mortgages received have been valued by management at $1,867,800 (CDN $2,000,000)
and are due December 31, 2009, consisting of a collateral
mortgage in fifth position on Mapleview property and a collateral mortgage in
second position on a property in Downtown Toronto. The mortgages have
an interest rate of 0% to October 28, 2009, and from October 29, 2009 thereafter
at the rate of 1.5% per month. The mortgages have a personal
guarantee from the purchaser.
F14
MONEYLOGIX
GROUP, INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER
31, 2009
5.
|
ACQUISITION
AND DISPOSITION OF 2131059 ONTARIO LIMITED AND SUBSEQUENT CONSIDERATION
DISPOSITION (cont’d)
|
In
addition to the consideration noted above, MoneyLogix will receive the
following:
Two
Serviced Family Residential Lots, subject to a reasonable cost for severance and
a cost sharing agreement. Management estimates the value of these
serviced lots have a net total value of $373,560 (CDN $400,000);
100
residential units, subject to a cost sharing agreement. Management
estimates the value of these residential lots have a net total value of $700,426
($750,000);
An option
to acquire 150 residential units, subject to a cost sharing agreement, for
$14,009 (CDN $15,000) each. Management has not estimated a value at
the present time; and,
The
purchaser assumed accounts payable of up to $280,170 (CDN
$300,000).
After the
completed transaction, MoneyLogix estimation in regards to the Mapleview
transaction was left with the following consideration:
Mortgages
Receivable-
|
$
|
1,867,800
|
||
Serviced
Single Family Residential Lots (net)
|
373,560
|
|||
Residential
Units- Gross (subject to cost sharing agreement)
|
700,426
|
|||
$
|
2,941,786
|
* Option
to Buy 150 Units @$14,009 (subject to cost sharing
agreement)
SUBSEQUENT
CONSIDERATION DISPOSITION
On
November 17, 2009, the Company sold the Mortgage Receivable, Residential
Units and the option to acquire 150 residential units for cash consideration of
$1,903,800 (CDN $2,000,000), two promissory note of $ 230,346 (Note A-CDN
$245,240) and $ 713,625 (Note C-CDN $750,000). Six Serviced Family Residential
Lots with a net total value of $ 373,560 (CDN $400,000) were retained. The sale
of the Mortgage Receivable was to an unrelated party and the two promissory
notes were to Ralph Canonaco of Baywood Homes Partnership. The terms of the
$230,588 promissory note are interest bearing at 1% per month due December
31, 2009 and secured by a 6th
Mortgage on the Mapleview Property. The funds were received January 7, 2010. The
terms of the $ 713,625 promissory note is non interest bearing till August 2010
and then 12 % per annum and due December 31, 2010.
6.
|
PROMISSORY
NOTES AND MORTGAGE RECEIVABLE
|
December 31,
2009
|
||||
Promissory
Note and Interest Receivable - A
|
$ | 233,346 | ||
Promissory
Note- B
|
142,725 | |||
Promissory
Note- C
|
713,625 | |||
1,089,696 | ||||
Allowance
|
(190,300 | ) | ||
Total
|
$ | 899,396 |
F15
MONEYLOGIX
GROUP, INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER
31, 2009
6.
|
PROMISSORY
NOTES AND MORTGAGE RECEIVABLE
(continued)
|
Notes
receivable are stated net of an allowance for doubtful accounts. The
company estimated the allowance based on management estimation and timeliness of
collection for charging off uncollectable loans
|
A.
|
The
Promissory Note of $233,346 (CDN $245,240) to Ralph Canonaco of Baywood
Homes Partnership is interest bearing at 1% per month due December 31,
2009 and secured by a 6th
Mortgage on the Mapleview Property. Interest of $3,000 has been
included in the receivable. The funds were received January 7,
2010.
|
|
B.
|
The
Promissory Note of $ 142,725 (CDN $150,000) to Lawrence Cogan is interest
bearing at 4% per month due March 17, 2010 and guaranteed by Ralph
Canonaco, Transfer Realty Inc., Transbay Developments Inc and 2131059
Ontario Limited.. The funds have not been received and the
Company is actively attempting to collect these
funds.
|
.
|
C.
|
The
Promissory Note of $713,625 (CDN $750,000) to Ralph Canonaco of Baywood
Homes Partnership is non interest bearing till August 2010 and then
12 % per annum and due December 31,
2010.
|
7.
|
STOCK
COMPENSATION LIABILITY
|
The
Company has recorded stock compensation liability for its Company Management and
Officers in the amount of $204,000 for 400,000 shares in regards to their
employment agreements. Per note 10(a), the employees are involved in a lawsuit
for wrongful dismissal, and until the legal situation is resolved, the share
compensation liability will not be cancelled.
8.
|
INCOME
TAXES
|
The
Company accounts for income taxes in accordance with ASC 740-20, (formerly SFAS
No. 109). ASC 740-20 prescribes the use of the liability method whereby deferred
tax asset and liability account balances are determined based on differences
between the financial reporting and tax bases of assets and liabilities and are
measured using the enacted tax rates. The effects of future changes in tax laws
or rates are not anticipated.
Under ASC
740-20 income taxes are recognized for the following: a) amount of tax payable
for the current year, and b) deferred tax liabilities and assets for future tax
consequences of events that have been recognized differently in the financial
statements than for tax purposes.
The
Company has income tax losses available to be applied against future years
income as a result of the losses incurred since inception. However, due to the
losses incurred in the period and expected future operating results, management
determined that it is more likely than not that the deferred tax asset resulting
from the tax losses available for carry forward will not be realized through the
reduction of future income tax payments. Accordingly a 100% valuation allowance
has been recorded for income tax losses available for carry
forward.
F16
MONEYLOGIX
GROUP, INC.
[Formerly
Known as Homelife, Inc.]
(A
Development Stage Company)
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER
31, 2009
9.
|
CAPITAL
STOCK
|
a) Authorized
100,000
Class A Preferred shares of no par value, 6% non-cumulative dividend, voting,
convertible to common shares at the option of the shareholder at a price equal
to the face value of the Class A shares. Each Class A Preferred share carries
1,000 votes as compared with 1 vote for each Common share. There were
no shares issued and outstanding at December 31, 2009.
300,000,000
Common shares of $0.001 par value
b)
Issued
December 31,
|
December 31,
|
|||||||
2009
|
2008
|
|||||||
Shares
Issued and Outstanding
|
85,763,586 | 80,763,586 | ||||||
$ | 85,764 | $ | 80,764 |
10.
|
|
CONTINGINCIES
|
|
A)
|
Two
former employees (“Plaintiffs”) have commenced an action on October
2009 in Ontario, Canada against the Company. The statement of claim
is for an aggregate payment of approximately $476,000($500,000 CDN)
related to wrongful dismissal. The Company plans to vigorously defend
itself in this claim and has will launch a counter suit against the
plaintiffs in the amount of $1,903,000($2,000,000 CDN). Included in
Accounts Payable and Stock Compensation Liability is approximately
$226,000 relating to salaries, expenses and stock compensation. At
the present time, the Company and its legal counsel agree that the outcome
of this proceeding cannot be reasonably determined at this
time.
|
|
B)
|
A
Company and its principals (“Plaintiffs”) have commenced an action on
December 2009 in Ontario, Canada against the Company. The statement of
claim is for an aggregate payment of approximately $7,707,000($8,100,000
CDN) and 6,250,000 common shares from treasury related to breach of
contract. The Company plans to vigorously defend itself in this claim and
may launch a counter suit against the plaintiffs. Included in
Accounts Payable is approximately $6,600 ($ 6,945 CDN) relating to
rental expense charged to the company. At the present time, the
Company and its legal counsel agree that the outcome of this proceeding
cannot be reasonably determined at this
time.
|
11.
|
|
SUBSEQUENT
EVENTS
|
Subsequent
events are evaluated through April 6, 2010, the date the financial statements
were issued.
F17