UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

________________

 FORM 10-Q

________________

 

  X  . QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

      . TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ______ to _______

Commission File Number 333-178652

 

MARKETINGMOBILETEXT, INC.

 (Name of small business issuer in its charter)

Nevada		45-3539010
(State of incorporation)		(I.R.S. Employer Identification No.)

 
501 Santiago Avenue

Long Beach, CA 90814

 (Address of principal executive offices) 

 (562) 498-5880

(Registrant’s telephone number)

 

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.

  X  . Yes            .  No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  X  . Yes          .  No

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

Large Accelerated Filer

      .                                      

Accelerated Filer  

      .   

Non-Accelerated Filer

      .                 

Smaller Reporting Company  

  X  .

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

As of August 16, 2012, there were 10,400,000 shares of the registrant’s $0.001 par value common stock issued and outstanding.

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MARKETINGMOBILETEXT, INC.*

TABLE OF CONTENTS

		Page
PART I.                 FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	3
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	9
ITEM 3.	QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK	11
ITEM 4.	CONTROLS AND PROCEDURES	11
PART II.               OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	11
ITEM 1A.	RISK FACTORS	11
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	11
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	11
ITEM 4.	MINE SAFETY DISCLOSURES	12
ITEM 5.	OTHER INFORMATION	12
ITEM 6.	EXHIBITS	12

Special Note Regarding Forward-Looking Statements

 

Information included in this Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). This information may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of MarketingMobileText, Inc. the “Company”), to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” or “project” or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and there can be no assurance that these projections included in these forward-looking statements will come to pass. Actual results of the Company could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. Except as required by applicable laws, the Company has no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future.

*Please note that throughout this Quarterly Report, except as otherwise indicated by the context, references in this report to “Company”, “MMTI”, “we”, “us” and “our” are references to MarketingMobileText, Inc. 

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PART I - FINANCIAL INFORMATION

 

ITEM 1.

FINANCIAL STATEMENTS

Marketing Mobile Text, Inc.

(A Development Stage Company)

Condensed Financial Statements

(Expressed in US dollars)

For the period ended June 30, 2012

Condensed Balance Sheets (unaudited)

4

Condensed Statements of Operations (unaudited)

5

Condensed Statements of Cash Flows (unaudited)

6

Notes to the Condensed Financial Statements (unaudited)

7

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Marketing Mobile Text, Inc.

(A Development Stage Company)

Condensed Balance Sheets

(Expressed in US dollars)

	June 30, 2012 $	September 30, 2011 $
	(unaudited)
ASSETS
Cash	40,000	1,507
Total Assets	40,000	1,507
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities	25,391	5,164
Due to related parties	10,000	1,000
Notes payable – related party	39,940	9,985
Total Liabilities	75,331	16,149
STOCKHOLDERS’ DEFICIT
Preferred Stock Authorized: 10,000,000 preferred shares with a par value of $0.001 per share Issued and outstanding: nil preferred shares
	–	–
Common Stock Authorized: 290,000,000 common shares with a par value of $0.001 per share Issued and outstanding: 10,000,000 common shares
	10,000	10,000
Additional paid-in capital	(10,000)	(10,000)
Common stock issuable	40.000	–
Accumulated deficit during the development stage	(75,331)	(14,642)
Total Stockholders’ Deficit	(35,331)	(14,642)
Total Liabilities and Stockholders’ Deficit	40,000	1,507

(The accompanying notes are an integral part of these financial statements)

4

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Marketing Mobile Text, Inc.

(A Development Stage Company)

Condensed Statements of Operations

(Expressed in US dollars)

(unaudited)

	For the three months ended June 30, 2012 $	For the nine months ended June 30, 2012 $	Accumulated from August 31, 2011 (Date of Inception) to June 30, 2012 $
Revenues	–	–	–
Operating Expenses
General and administrative	2,660	14,462	17,940
Management fees	3,000	9,000	10,000
Professional fees	7,500	35,000	45,000
Total Operating Expenses	13,160	58,462	72,940
Net loss before other expenses	(13,160)	(58,462)	(72,940)
Other Expenses
Interest expense	(996)	(2,227)	(2,391)
Net Loss	(14,156)	(60,689)	(75,331)
Net Earnings per Share – Basic and Diluted	(0.00)	(0.01)
Weighted Average Shares Outstanding – Basic and Diluted	10,000,000	10,000,000

(The accompanying notes are an integral part of these financial statements)

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Marketing Mobile Text, Inc.

(A Development Stage Company)

Condensed Statements of Cashflows

(Expressed in US dollars)

(unaudited)

		For the nine months ended June 30, 2012 $	Accumulated from August 31, 2011 (Date of Inception) to June 30, 2012 $
Operating Activities
Net loss for the period		(60,689)	(75,331)
Changes in operating assets and liabilities:
Accounts payable and accrued liabilities		20,227	25,391
Due to related parties		9,000	10,000
Net Cash Used In Operating Activities		(31,462)	(39,940)
Financing Activities
Proceeds from note payable – related party		29,955	39,940
Proceeds from issuance of common stock		40,000	40,000
..
Net Cash Provided by Investing Activities		69,955	79,940
Increase in Cash		38,493	40,000
Cash – Beginning of Period		1,507	–
Cash – End of Period		40,000	40,000
Non-cash investing and financing activities
Shares issued for founders’ shares		–	10,000
Supplemental Disclosures
Interest paid		–	–
Income tax paid		–	–

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Marketing Mobile Text, Inc.

(A Development Stage Company)

Notes to the Financial Statements

(Expressed in US dollars)

(unaudited)

1.

Nature of Operations and Continuance of Business

Marketing Mobile Text, Inc. (the “Company”) was incorporated in the state of Nevada on August 31, 2011. The Company is a development stage company, as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915, Development Stage Entities.

The accompanying financial statements have been prepared by the Company without audit.  In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at June 30, 2012, and for all periods presented herein, have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's September 30, 2011 audited financial statements.  The results of operations for the periods ended June 30, 2012 and 2011 are not necessarily indicative of the operating results for the full years.

Going Concern

These financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As of June 30, 2012, the Company has not recognized any revenue, and has an accumulated deficit of $75,331. The continuation of the Company as a going concern is dependent upon the continued financial support from its management, and its ability to identify future investment opportunities and obtain the necessary debt or equity financing, and generating profitable operations from the Company’s future operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern.  These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.  

2.

Summary of Significant Accounting Policies

a)

Basis of Presentation

The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) and are expressed in U.S. dollars.  The Company’s fiscal year end is September 30.

b)

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

c)

Cash and cash equivalents

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.  

7

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Marketing Mobile Text, Inc.

(A Development Stage Company)

Notes to the Financial Statements

(Expressed in US dollars)

(unaudited)

2.

Summary of Significant Accounting Policies (continued)

d)

Basic and Diluted Net Loss per Share

The Company computes net loss per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of June 30, 2012, the Company did not have any potentially dilutive shares.

e)

Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

3.

Notes Payable

During the period ended June 30, 2012, the Company received an additional $29,955 in additional funding from the President of the Company.  As at June 30, 2012, the Company owed $39,940 (September 30, 2011 - $9,985) to the President of the Company. Under the terms of the note, the amount is unsecured, due interest at 10% per annum, and due on demand. As at June 30, 2012, the Company recorded accrued interest of $2,391 (September 30, 2011 - $164) in accounts payable and accrued liabilities.

4.

Common Shares

As at June 30, 2012, the Company received $40,000 of common stock subscriptions for common shares that have not been issued.  Refer to Note 6.   

5.

Related Party Transactions

a)

During the nine months ended June 30, 2012, the Company incurred $9,000 (September 2011 - $1,000) of management fees to the President and Director of the Company.

b)

As of June 30, 2012, the Company owed $10,000 (September 30, 2011 - $1,000) to the President and Director of the Company for financing of day-to-day operations and management fees.

6.

Subsequent Events

On July 13, 2012, the Company issued 400,000 common shares at $0.10 per share for proceeds of $40,000, which were received prior to June 30, 2012.  Refer to Note 4.  

8

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ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION

FORWARD-LOOKING STATEMENTS

This Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, or implied, by those forward-looking statements.  You can identify forward-looking statements by the use of the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms.  These statements are only predictions. In evaluating these statements, you should consider various factors which may cause our actual results to differ materially from any forward-looking statements.  Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements.  We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

RESULTS OF OPERATIONS

Working Capital

	June 30,	September 30,
	2012 $	2011 $
Current Assets	40,000	1,507
Current Liabilities	75,331	16,149
Working Capital (Deficit)	(35,331)	(14,642)

Cash Flows

	Nine months ended June 30, 2012 $	From August 31, 2011 (date of inception) to September 30, 2011 $
Cash Flows used in Operating Activities	(31,462)	(8,478)
Cash Flows from Financing Activities	69,955	9,985
Net Increase in Cash During Period	38,493	1,507

Operating Revenues

For the period from August 31, 2011 (date of inception) to June 30, 2012, the Company did not earn any operating revenues.  

Operating Expenses and Net Loss

During the nine months ended June 30, 2012, the Company incurred operating expenses of $58,462 comprised of $35,000 of professional fees relating to audit, accounting, and legal fees with respect to the Company’s SEC filings, $14,462 of general and administrative expenses relating to day-to-day costs incurred, and $9,000 for management fees to the President and Director of the Company at a rate of $1,000 per month.

For the nine months ended June 30, 2012, the Company recorded a net loss of $60,689.  In addition to operating expenses, the Company incurred $2,227 of interest expense relating to accrued interest for outstanding notes payable of $39,940 which is due interest at 10% per annum.  

For the nine months ended June 30, 2012, the Company had a net loss of $0.01per share.

Liquidity and Capital Resources

As at June 30, 2012, the Company had cash and total assets of $40,000 compared with cash and total assets of $1,507 as at September 30, 2011.  The increase in cash and total assets were attributed to financing received from proceeds from the issuance of common shares in June 2012.  

9

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As at June 30, 2012, the Company had total liabilities of $75,331 compared with $16,149 as at September 30, 2011.  The increase in liabilities were attributed to $20,227 increase in accounts payable and accrued liabilities due to the fact that the Company had insufficient cash flow to repay outstanding obligations on a timely basis, $9,000 increase in amounts due to related parties for unpaid management fees, and $29,955 increase in notes payable which reflects new financing received from the Company.  

During the nine months ended June 30, 2012, the Company did not issue any equity instruments but received $40,000 for the issuance of 400,000 common shares at $0.10 per share which were issued on July 13, 2012.

Cashflow from Operating Activities

During the period ended June 30, 2012, the Company used $31,462 of cash for operating activities compared with $8,478 during the period from inception to September 30, 2011.  The increase is attributed to the fact that the Company incurred more professional fees and out-of-pocket costs which were repaid by funds contributed from the President and Director of the Company. 

Cashflow from Investing Activities

During the period from August 31, 2011 (date of inception) to June 30, 2012, the Company did not have any investing activities.  

Cashflow from Financing Activities

During the period ended June 30, 2012, the Company received $29,955 in additional financing from the President and Director of the Company in new notes payable compared with $9,985 received from inception to September 30, 2011, and received $40,000 in stock subscriptions for the issuance of common shares that occurred in July 2012.  

Going Concern

We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing. 

Future Financings

We will continue to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund our operations and other activities.

Off-Balance Sheet Arrangements

We have no significant 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 stockholders.

Critical Accounting Policies

Our financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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 periods.

 

We regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. A complete summary of these policies is included in the notes to our financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

Recently Issued Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

10

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ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 4.

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by our company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our management carried out an evaluation under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 ("Exchange Act"). Based upon that evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were not effective as of June 30, 2012, due to the material weaknesses resulting from the Board of Directors not currently having 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, and controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements.

 

Changes in Internal Control over Financial Reporting

 

Our management has also evaluated our internal control over financial reporting, and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of our last evaluation.

 

The Company is not required by current SEC rules to include, and does not include, an auditor's attestation report. The Company's registered public accounting firm has not attested to Management's reports on the Company's internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS.

We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which our director, officer or any affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

ITEM 1A.

RISK FACTORS.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

1.

Quarterly Issuances:

During the quarter, we did not issue any unregistered securities other than as previously disclosed.

2.

Subsequent Issuances:

Subsequent to the quarter, we did not issue any unregistered securities other than as previously disclosed.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

None.

11

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ITEM 4.

MINE SAFETY DISCLOSURES.

Not Applicable.

ITEM 5.

OTHER INFORMATION.

None.

ITEM 6.

EXHIBITS

*Pursuant to Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		MARKETINGMOBILETEXT, INC.
Dated: August 20, 2012		/s/ Kelly Storms
			By:  Kelly Storms
			Its: President, CEO, CFO, Principal Accounting Officer, Secretary, Treasurer and Director

12