Attached files
file | filename |
---|---|
EX-31.1 - CADUCEUS SOFTWARE SYSTEMS CORP. | exhibit31.htm |
EX-31.2 - CADUCEUS SOFTWARE SYSTEMS CORP. | exhibit32.htm |
EX-32.1 - CADUCEUS SOFTWARE SYSTEMS CORP. | exhibit312doc.htm |
U.S. SECURITIES AND EXCHANGE COMMISSION |
Mark One
[ X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANEG ACT OF 1934
For the period ended December 31, 2010
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______ to _______
Commission File No. 333-144509
Bosco Holdings, Inc. | |
|
|
Nevada | 98-0534794 |
|
|
26 Utkina Street, Suite 10 Irkutsk, Russia 664007 | |
|
|
7-3952-681-878 | |
|
|
Securities registered pursuant to Section | Name of each exchange on which |
None |
|
|
|
Securities registered pursuant to Section 12(g) of the Act: | |
Common Stock, $0.001 |
|
(Title of Class) |
|
Indicate by checkmark whether the issuer: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [X ] No[ ]
1 | Page
Indicate by check mark whether the registrant is a large accelerated filed, an accelerated filer, a non-accelerated filer, or a smaller reporting company.
Large accelerated filer [ ] Accelerated filer [ ]
Non-accelerated filer [ ] Smaller reporting company [X]
Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]
Applicable Only to Issuer Involved in Bankruptcy Proceedings During the Preceding Five Years.
N/A
Indicate by checkmark whether the issuer has filed all documents and reports required to be filed by Section 12, 13 and 15(d) of the Securities Exchange Act of 1934 after the distribution of securities under a plan confirmed by a court. Yes[ ] No[ ]
Applicable Only to Corporate Registrants
Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the most practicable date:
Class | Outstanding as of February 8, 2011 |
Common Stock, $0.001 | 26,200,000 |
2 | Page
BOSCO HOLDINGS, INC.
Form 10-Q
Part 1 | FINANCIAL INFORMATION |
|
|
|
|
Item 1 | 3 | |
| 3 | |
| 4 | |
| 5 | |
| 6 | |
|
|
|
Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations | 12 |
|
|
|
Item 3. | 16 | |
|
|
|
Item 4. | 16 | |
|
|
|
Part II. | OTHER INFORMATION |
|
|
|
|
Item 1 | 18 | |
|
|
|
Item 2. | 18 | |
|
|
|
Item 3 | 18 | |
|
|
|
Item 4 | 18 | |
|
|
|
Item 5 | 18 | |
|
|
|
Item 6 | 19 | |
|
|
|
| 19 |
3 | Page
PART I
ITEM 1. FINANCIAL STATEMENTS
BOSCO HOLDINGS, INC (A Development Stage Company) Balance Sheets | |||||||
(Unaudited) | |||||||
Assets | |||||||
|
| December 31 | March 31 | ||||
|
| 2010 | 2010 | ||||
Current Assets |
|
|
| ||||
| Cash | $ 655 | $ 4,506 | ||||
Total Current Assets | 655 | 4,506 | |||||
Total Assets | $ 655 | $ 4,506 | |||||
|
|
|
| ||||
|
|
|
| ||||
Liabilities and Stockholders Equity (deficit) | |||||||
|
|
| |||||
Current Liabilities |
|
| |||||
| Accounts payables and accrued liabilities | $ 5,255 | $ 5,722 | ||||
| Accrued Interest Related Party Note | 1,675 | 1,110 | ||||
| Loans from related party | 54,394 | 48,932 | ||||
| Total Current Liabilities | $ 61,324 | $ 55,764 | ||||
|
|
| |||||
Stockholders Equity (deficit) |
|
| |||||
|
|
|
| ||||
| Common stock, $0.001par value, 75,000,000 shares authorized; |
|
| ||||
| 26,200,000 shares issued and outstanding | 26,200 | 26,200 | ||||
| Additional paid-in-capital | (800) | (800) | ||||
| Deficit accumulated during the development stage | (86,069) | (76,658) | ||||
Total stockholders equity (deficit) | (60,669) | (51,258) | |||||
Total liabilities and stockholders equity (deficit) | $ 655 | $ 4,506 | |||||
|
| ||||||
| The accompanying notes are an integral part of these financial statements. |
4 | Page
BOSCO HOLDINGS, INC (A Development Stage Company) Statements of Operations (Unaudited) | |||||
| Three Months Ended December 31, 2010 | Three Months Ended December 31, 2009 | Nine Months Ended December 31, 2010 | Nine Months Ended December 31, 2009 | From Inception on December 13, 2006 through December 31, 2010 |
Expenses |
|
|
|
|
|
General and Administrative Expenses | $ 2,174 | $ 627 | $ 8,845 | $ 7,182 | $ 84,394 |
Total Expenses | 2,174 | 627 | 8,845 | 7,182 | 84,394 |
Net (loss) before Income Taxes | (2,174) | (627) | (8,845) | (7,182) | (84,394) |
Other Expenses |
|
|
|
|
|
Interest Expense | 189 | 189 | 565 | 565 | 1,675 |
Income Tax Expense | - |
| - | - | - |
Net (loss) for a period | $ (2,363) | $ (816) | $ (9,410) | $ (7,747) | $ (86,069) |
(Loss) per common share Basic and diluted | $ (0.00) | $ (0.00) | $ (0.00) | $ (0.00) |
|
Weighted Average Number of Common Shares Outstanding | 26,200,000 | 26,200,000 | 26,200,000 | 26,200,000 |
|
The accompanying notes are an integral part of these financial statements. | |||||
|
5 | Page
BOSCO HOLDINGS, INC (A Development Stage Company) Statements of Cash Flows (Unaudited) | ||||||
| Nine Months Ended December 31, 2010 | Nine Months Ended December 31, 2009 | From Inception on December 13, 2006 through December 31, 2010 | |||
Operating Activities |
|
| ||||
| Net (loss) | $ (9,410) | $ (7,747) | $ (86,069) | ||
| Accounts payables and accrued liabilities | (468) | - | 5,255 | ||
| Accrued Interest Related Party Note | 565 | 565 | 1,675 | ||
| Net cash (used) for operating activities | (9,313) | (7,182) | (79,139) | ||
Investing Activities |
|
|
| |||
Net Cash Provided (Used) by Investing Activities | - | - | - | |||
Financing Activities |
|
|
| |||
| Loans from related party | 5,462 | 9,932 | 54,394 | ||
| Sale of common stock | - | - | 25,400 | ||
| Net cash provided by financing activities | 5,462 | 9,932 | 79,794 | ||
|
|
|
|
| ||
Net increase (decrease) in cash and equivalents | (3,851) | 2,750 | 655 | |||
|
|
|
| |||
Cash and equivalents at beginning of the period | 4,506 | 12,527 | - | |||
Cash and equivalents at end of the period |
$ 655 | $ 15,277 | $ 655 | |||
| Supplemental cash flow information: |
|
|
| ||
|
|
|
|
| ||
| Cash paid for: |
|
|
| ||
|
|
|
|
| ||
| Interest | $ - | $ - | $ - | ||
| Taxes | $ - | $ - | $ - | ||
Non-Cash Activities | $ - | $ - | $ - | |||
The accompanying notes are an integral part of these financial statements. |
6 | Page
BOSCO HOLDINGS, INC
(A Development Stage Company)
Notes To The Financial Statements
December 31, 2010
(Unaudited)
1. NATURE AND CONTINUANCE OF OPERATIONS
Bosco Holdings, Inc. (the Company) was incorporated under the laws of the State of Nevada, U.S. on December 13, 2006. The Company is in the development stage as defined under Accounting Codification Standard, Development Stage Entities (ASC-915) and its efforts are primarily devoted marketing and distributing laminate flooring to the wholesale and retail markets throughout North America. The Company has not generated any revenue to date and consequently its operations are subject to all risks inherent in the establishment of a new business enterprise.
2. GOING CONCERN
The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. For the period from inception, December 13, 2006 through December 31, 2010 the Company has accumulated losses of $86,069.
There is substantial doubt as to the ability of the company to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and loans from directors and or private placement of common stock.
As of December 31, 2010, the Company's has excess of current liabilities over its current assets by $60,669, with cash and cash equivalents representing $655.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.
Cash and Cash equivalents
For purposes of Statement of Cash Flows the Company considers all highly liquid debt instruments purchased with a maturity date of three months or less to be cash equivalent.
Use of Estimates and Assumptions
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.
Foreign Currency Translation
The financial statements are presented in United States dollars. In accordance with Accounting Standards Codification (ASC-830), Foreign Currency Matters, foreign denominated monetary assets and liabilities are translated into their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Non monetary assets and liabilities are translated at the exchange rates prevailing on the transaction date. Revenue and expenses are translated at average rates of exchange during the year. Gains or losses resulting from foreign currency transactions are included in results of operations.
7 | Page
BOSCO HOLDINGS, INC
(A Development Stage Company)
Notes To The Financial Statements
December 31, 2010
(Unaudited)
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Fair Value of Financial Instruments
The carrying value of cash and accounts payable and accrued liabilities approximates their fair value because of the short maturity of these instruments. Unless otherwise noted, it is managements opinion the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.
Income Taxes
The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
At December 31, 2010 a full-deferred tax asset valuation allowance has been provided and no deferred tax asset has been recorded.
Basic and Diluted Loss Per Share
The Company computes loss per share in accordance with ASC-260, Earnings per Share which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.
The Company has no potential dilutive instruments and accordingly basic loss and diluted loss per share are equal.
Long-Lived Assets
The Company has adopted Accounting Standards Codification No. 360(ASC-360). The Statement requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC-360 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell.
Research and Development
The Company accounts for research and development costs in accordance with the Financial Accounting Standards Boards Accounting Standards Codification (ASC-730), Research and Development. Under ASC-730, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred expenditures $0 the period from December 13, 2006 (date of inception) to December 31, 2010.
Concentrations of Credit Risk
Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and related party receivables. At December 31, 2010, the Company has cash in the amount of $655. The Company places its cash and temporary cash investments with credit quality institutions. All of the Companys cash is in non FDIC insured accounts. The Company periodically reviews its trade receivables in determining its allowance for doubtful accounts. The Company does not have accounts receivable and allowance for doubtful accounts at December 31, 2010.
8 | Page
BOSCO HOLDINGS, INC
(A Development Stage Company)
Notes To The Financial Statements
December 31, 2010
(Unaudited)
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Revenue Recognition
The Company will recognize revenue in accordance with Accounting Standards Codification No. 605, Revenue Recognition ("ASC-605"), ASC-605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectibility is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts.
Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.
Advertising
The Company follows the policy of charging the costs of advertising to expenses incurred. The Company incurred $0 in advertising costs during the period ended December 31, 2010.
Stock-based Compensation
The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.
Recent accounting pronouncements
The Company management has reviewed recent accounting pronouncements issued through the date of the issuance of financial statements. In managements opinion, except for those pronouncements detailed below, no other pronouncements apply or will have a material effect on the Companys financial statements.
In May 2009, the FASB issued ASC 855 Subsequent Events, which establishes principles and requirements for subsequent events. In accordance with the provisions of ASC 855, the Company currently evaluates subsequent events through the date the financial statements are available to be issued.
9 | Page
BOSCO HOLDINGS, INC
(A Development Stage Company)
Notes To The Financial Statements
December 31, 2010
(Unaudited)
4. COMMON STOCK
The total number of common shares authorized that may be issued by the Company is 75,000,000 shares with a par value of one tenth of one cent ($0.001) per share and no other class of shares is authorized. As of December 31, 2010 and the company has issued and outstanding 26,200,000 shares of common stock.
During the year March 31, 2007, the Company issued 26,200,000 shares of common stock for total cash proceeds of $25,400. At December 31, 2010 there were no outstanding stock options or warrants.
On February 21, 2008, the Company's Board of Directors authorized and declared a five-for-one forward stock split of the Company's common stock. The stock split was effected in the form of a stock dividend distribution on March 27, 2008 to the stockholders on record on close of business February 21, 2008. The Stockholders received four additional shares of common stock for each share of common stock held as of the close of business on the record date. All shares and per-share data have been restated to reflect this stock split.
5. INCOME TAXES
As of December 31, 2010, the Company had net operating loss carry forwards of $86,069 that may be available to reduce future years taxable income through 2030. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.
6. MARKETING AND SALES DISTRIBUTION AGREEMENT
On March 9th, 2007 The Company entered into a Marketing and Sales Distribution Agreement with Bossco-Laminate Co., LTD to market and distribute the laminate flooring products in North America. According to this agreement , Bossco-Laminate Co., LTD agrees to manufacture the 1200x300x8 mm polish surface and relief surface laminate flooring and fulfill Bosco's written purchase orders for Products in a timely manner, and in any event will use its best efforts to fill placed orders within a period of thirty days (30)days or less following the receipt of any written order.
As of December 31, 2010 Company has placed no such written orders.
7. RELATED PARTY TRANSACTIONS
On February 27, 2008 our Director had loaned the Company $10,000. The loan is non-interest bearing, due upon demand and unsecured. As of March 31, 2008 total loan amount was $10,000.
On July 18, 2008 our Director had loaned the Company $7,500. The loan is non-interest bearing, due upon demand and unsecured. On September 16, 2008 our Director had loaned the Company $14,000. The loan is non-interest bearing, due upon demand and unsecured.
On October 8, 2008 our Director had loaned the Company $7,500 at the interest rate of 10%. The loan due upon demand and unsecured.
On December 21, 2009 our Director had loaned the Company $4,966. The loan is non-interest bearing, due upon demand and unsecured.
On December 22, 2009 our Director had loaned the Company $4,966. The loan is non-interest bearing, due upon demand and unsecured.
On May 27, 2010 our Director had loaned the Company $4,966. The loan is non-interest bearing, due upon demand and unsecured. On May 28, 2010 our Director had loaned the Company $496. The loan is non-interest bearing, due upon demand and unsecured.
As of December 31, 2010 the Company accrued interest on related party note $1,675.
As of December 31, 2010 total loan amount was $54,394:
1. $46,894 of that loan is non-interest bearing and
2. $7,500 is at the interest rate of 10%.
10 | Page
BOSCO HOLDINGS, INC
(A Development Stage Company)
Notes To The Financial Statements
December 31, 2010
(Unaudited)
8. CONTINGENCY
The Company disputes charges with RBSM LLP (predecessor auditor) for the review of the Form 8-K and correspondence with the successor auditor in amount of $3,025. The Company examined the invoices, and decided that charges for the review of the 8K and correspondence with the successor auditor are excessive.
$3,025 is not part of the $5,000 already accrued.
9. SUBSEQUENT EVENTS
The Company has determined that there were no subsequent events up to and including the date of the issuance of these financial statements that warrant disclosure or recognition in the financial statements.
11 | Page
FORWARD LOOKING STATEMENTS
Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION
GENERAL
Bosco Holdings, Inc. was incorporated under the laws of the State of Nevada in December 13, 2006. We are engaged in the business of marketing and distributing laminate flooring in both the mass wholesale and retail markets throughout North America. As of the date of this Report, we have not commenced business operations other than the execution of a marketing and sales distribution agreement with our supplier, Bossco-Laminate Co., Ltd., a private Russian company.
Our shares of common stock trade on the Over-the-Counter Bulletin Board under the symbol BCHO:OB.
Please note that throughout this Report, and unless otherwise noted, the words "we," "our," "us," the "Company," or "Bosco Holdings, Inc. refers to Bosco Holdings, Inc.
12 | Page
CURRENT BUSINESS OPERATIONS
We are engaged in the business of marketing and distributing laminate flooring in both the mass wholesale and retail markets throughout North America. Laminate flooring is a relatively new building material product invented in Sweden in the early 1980's. Management believes that laminate flooring now comprises approximately 10% market share of the flooring product market, which is expanding due to the product's durability and ecological compatibility.
Laminate flooring is a versatile, durable, attractive flooring with the appearance of a hardwood floor. Although laminate flooring looks like wood flooring, there is actually no solid wood used in its construction. Laminate floors are made up of several materials bonded together under high pressure. Most laminate flooring consists of a moisture resistant layer under a layer of HDF (high density fiberboard). This is covered with a high-resolution photographic image of natural wood flooring. It is then finished with an extremely hard, clear coating made from special resin-coated cellulose to protect the laminate flooring. Our management believes that laminate flooring is perfect for anyone wanting a durable floor for a fraction of the price and installation time of a hardwood floor, but with the attractiveness of real hardwood. Its construction also makes laminate flooring more environmentally friendly as it uses less wood in its production and makes more efficient use of wood fiber.
Management believes that both laminate flooring and hardwood flooring can beautify a home. While hardwood is often thought to be a superior choice, there are several advantages to laminate flooring. Distinct differences between the two types of flooring often make laminate flooring a more attractive alternative. Solid hardwood of any thickness (most is 3/8" to 3/4") should be installed only above grade. Laminate flooring can be installed above or below grade. Some hardwood flooring is engineered, meaning that instead of solid hardwood, it is made of several wood layers with a hardwood veneer. Laminate flooring is usually 7mm to 8mm (5/16" to 3/8") thick and is also made of several layers. These are laminated together for stability and strength. The top surface of laminate flooring is a "photograph" of hardwood. High quality "photographs" faithfully reproduce the grain and color of natural hardwood and the surfaces on quality laminate flooring closely resemble real wood. Although many people insist on hardwood flooring, we believe that laminates are long lasting, durable, and affordable and quickly becoming one of the most popular types of flooring.
One obvious advantage is price; laminate flooring is typically half the cost of traditional hardwood flooring. Sometimes the savings are even greater, depending on the types of flooring in question. Additionally, laminate flooring is designed to be easy to install and is generally a good choice for the "do-it-yourself" market, where solid hardwood installation requires a higher level of expertise. Installing laminate does not involve nails. More recently the use of glue has been eliminated from the installation process in many cases. As a result laminate flooring can be installed fairly quickly and inexpensively. Laminate flooring is generally designed to be scratch-resistant and fade resistant, two areas where solid hardwood flooring is known to be more vulnerable.
13 | Page
RESULTS OF OPERATION
We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.
We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.
Nine-Month Period Ended December 31, 2010 Compared to Nine-Month Period Ended December 31, 2009
Our net loss for the nine-month period ended December 31, 2010 was ($9,410) compared to a net loss of ($7,747) during the nine-month period ended December 31, 2009 (an increase of 1,663). During the nine-month periods ended December 31, 2010 and 2009, we did not generate any revenue.
During the nine-month period ended December 31, 2010, we incurred general and administrative expenses of approximately $9,410 compared to $7,747 incurred during the nine-month period ended December 31, 2009 (an increase of $1,663). The general and administrative expenses incurred during the nine-month period ended December 31, 2010 consisted of corporate overhead, financial and administrative contracted services, marketing, and consulting costs.
Our net loss during the nine-month period ended December 31, 2010 was ($9,410) or ($0.00) per share compared to a net loss of ($7,747) or ($0.00) per share during the nine-month period ended December 31, 2009. The weighted average number of shares outstanding was 26,200,000 for the nine-month periods ended December 31, 2010 and 2009, respectively.
LIQUIDITY AND CAPITAL RESOURCES
Nine-Month Period Ended December 31, 2010
As at the nine-month period ended December 31, 2010, our current assets were $655 and our current liabilities were $61,324, which resulted in a working capital deficiency of ($60,669). As at the nine-month period ended December 31, 2010, current assets were comprised of $655 in cash. As at the nine-month period ended December 31, 2010, current liabilities were comprised of $54,394 in loan from related party, $5,255 in accounts payable and accrued liabilities and $1,675 in accrued interest.
As at the nine-month period ended December 31, 2010, our total assets were $655 comprised entirely of current assets compared to $4,506 at fiscal year ended March 31, 2010.
As at the nine-month period ended December 31, 2010, our total liabilities were $61,324 comprised entirely of current liabilities compared to $55,764 at fiscal year ended March 31, 2010.
Stockholders deficit increased from ($51,258) for fiscal year ended March 31, 2010 to ($60,669) for the nine-month period ended December 31, 2010.
14 | Page
Cash Flows from Operating Activities
We have not generated positive cash flows from operating activities. For the nine-month period ended December 31, 2010, net cash flows used in operating activities was ($9,313), consisting of a net loss of ($9,410) , accounts payables and accrued liabilities of ($468) and accrued interest $565. For the nine-month period ended December 31, 2009, net cash flows used in operating activities was ($7,182), consisting of a net loss of ($7,747) and accrued interest $565.
Cash Flows from Financing Activities
We have financed our operations primarily from either advancements or the issuance of equity and debt instruments. For the nine-month period ended December 31, 2010, net cash flows provided from financing activities was $5,462 compared to $9,932 for the nine-month period ended December 31, 2009.
We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.
PLAN OF OPERATION AND FUNDING
Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next three months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; and (ii) working capital. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.
At December 31, 2010, our current assets consisted of $655 in cash. With these funds, we will only be able to satisfy our cash requirements for approximately three months, provided we do not organize any major events during that time period. Accordingly and as discussed above, we will have to raise additional funds in the next twelve months in order to sustain and expand our operations. We currently do not have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of equity financing from the sale of our common stock. We have and will continue to seek to obtain short-term loans from our directors, although no future arrangement for additional loans has been made. We do not have any agreements with our directors concerning these loans. We do not have any arrangements in place for any future equity financing.
15 | Page
MATERIAL COMMITMENTS
As of the date of this Quarterly Report, and other than our obligations to be incurred under the Agreement, we do not have any other material commitments.
PURCHASE OF SIGNIFICANT EQUIPMENT
We do not intend to purchase any significant equipment during the next twelve months.
OFF-BALANCE SHEET ARRANGEMENTS
As of the date of this Quarterly Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
GOING CONCERN
The independent auditors' report accompanying our March 31, 2010 and 2009 financial statements contains an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.
ITEM III. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not applicable.
ITEM IV. CONTROLS AND PROCEDURES
Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commissions rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuers management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
16 | Page
An evaluation was conducted under the supervision and with the participation of our management, including Mr. Dannikov, our Chief Executive Officer and our Chief Financial Officer of the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, 2010. Based on that evaluation, Mr. Dannikov concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Such officer also confirmed that there was no change in our internal control over financial reporting during the period ended December 31, 2010 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
We maintain "disclosure controls and procedures," as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer/Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. We conducted an evaluation (the "Evaluation"), under the supervision and with the participation of our Chief Executive Officer/Chief Financial Officer of the effectiveness of the design and operation of our disclosure controls and procedures ("Disclosure Controls") as of the end of the period covered by this report pursuant to Rule 13a-15 of the Exchange Act. The evaluation of our disclosure controls and procedures included a review of the disclosure controls and procedures objectives, design, implementation and the effect of the controls and procedures on the information generated for use in this report. In the course of our evaluation, we sought to identify data errors, control problems or acts of fraud and to confirm the appropriate corrective actions, if any, including process improvements, were being undertaken. Our Chief Executive Officer/Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were not effective and were not operating at the reasonable assurance level.
Managements Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act, as amended. Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2010. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. We have identified the following material weaknesses:
1. As of December 31, 2010, we did not maintain effective controls over the control environment. Specifically, we have not developed and effectively communicated to our employees an consultants our accounting policies and procedures. This has resulted in inconsistent practices. Further, the Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.
2. As of December 31, 2010, we did not maintain effective controls over financial statement disclosure. Specifically, controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly, management has determined that this control deficiency constitutes a material weakness.
Because of these material weaknesses, management has concluded that the Company did not maintain effective internal control over financial reporting as of December 31, 2010, based on the criteria established in "Internal Control-Integrated Framework" issued by the COSO.
17 | Page
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
No report required.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No report required.
ITEM 5. OTHER INFORMATION
No report required.
18 | Page
ITEM 6. EXHIBITS
Exhibits:
31.1 Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
31.2 Certification of Chief Financial Officer pursuant to Securities Exchange Act of 1934
Rule 13a-14(a) or 15d-14(a).
32.1 Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-
14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BOSCO HOLDINGS, INC.
Dated: February 8, 2011 | By: /s/ Alexander Dannikov Alexander Dannikov, President and Chief Executive Officer |
|
|
Dated: February 8, 2011 | By: /s/ Alexander Dannikov Alexander Dannikov, Chief Financial Officer |
19 | Page