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| EX-31 - PROSALUTIS HOLDINGS INC. | exhibit203110k2012.htm |
| EX-32 - PROSALUTIS HOLDINGS INC. | exhibit203210k2012.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the fiscal year ended December 31, 2012
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from_________ to____________
Commission file number: 333-137293
WTTJ CORP.
(Name of small business issuer in its charter)
Michigan
27-1767418
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization)
Identification No.)
17033 S. Dixie Highway Miami, FL 33157
(Address of principal executive offices) (Zip Code)
Issuer's telephone number: (786) 361-9751
Securities registered under Section 12(b) of the Exchange Act: NONE
Securities registered under Section 12(g) of the Exchange Act:
COMMON STOCK, NO PAR VALUE
(Title of class)
Check whether the issuer (1) 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 [ ]
Check if no disclosure of delinquent filers in response to Item 405 of Regulation S-B is contained in this form, and no disclosure will be contained, to the best of 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. [X]
State issuer's revenues for its most recent fiscal year: $ 0
State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity, as of a specified date within the past 60 days: $0 as of March 1, 2013.
State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 654,000 as of May 1, 2013.
Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]
PART I
ITEM 1. DESCRIPTION OF BUSINESS.
CAUTIONARY STATEMENT FOR PURPOSES OF "SAFE HARBOR PROVISIONS" OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
Certain statements contained in this Annual Report on Securities and Exchange Commission ("SEC") Form 10-KSB ("Form 10-K") constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different than any expressed or implied by these forward-looking statements. These statements may be contained in our filings with the Securities and Exchange Commission, press releases, and written or oral presentations made by our representatives to analysts, rating agencies, stockholders, news organizations and others. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "intend", "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. Although we believe that the expectations in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
Business Development
WTTJ Inc. (“The Company”) was incorporated in Michigan on March 3, 2007. The Company’s fiscal year end is December 31. We were inactive until May 1, 2010 when we began implemented our plan of operations. The Company has never been in bankruptcy or receivership.
Business
The Company has a plan of operations to engage in the business of the promotion of travel services for Americans to gambling casinos in Macau through a website.
We recently launched our website which is a collection of news feeds related to travel and gaming opportunities in Macau, China. We expect that we will build out our website to have additional features for our projected audience of travelers.
Our plan of operations is to build our website to be a site on the Internet for Americans interested in traveling to Macau for recreational gaming at the casinos.
Gambling in Macau
Macau, which was a Portuguese colony for approximately 450 years, was transferred from Portuguese to Chinese political control in December 1999. Macau is governed as a special administrative region of China and is located approximately 37 miles southwest of, and less than one hour away via ferry from, Hong Kong.
Macau, which has been a casino destination for more than 40 years, consists principally of a peninsula on mainland China, and two neighboring islands, Taipa and Coloane, connected by bridges. We believe that Macau is located in
one of the world’s largest concentrations of potential gaming customers. According to the Macau Government Tourist Office in its report Global Indicators publishing in January 2010, casinos in Macau generated approximately $15 billion in gaming revenue in 2009.
Macau’s gaming market is primarily dependent on tourists. As of December 31, 2009, there were approximately 19,200 hotel rooms and approximately 4,770 table games in Macau according to the January 2010 Global Indicators report.
Prior to 2002, gaming in Macau was permitted as a government-sanctioned monopoly concession awarded to a single concessionaire. However, the government of Macau liberalized the gaming industry in 2002 by granting concessions to operate casinos to three concessionaires who in turn were permitted, subject to the approval of the government of Macau, to each grant one sub-concession to other gaming operators.
Currently, there are 33 operating casinos in Macau.
Growth Strategy
Key elements of our strategy include:
Build Strong Brand Awareness. We believe that it is essential to establish a strong brand with Internet users and within certain segments of the travel industry. We intent to utilize online marketing to promote our brand to consumers. In addition, we believe that we build brand awareness by offering an outstand website that is promoted by word-of-mouth.
Increase Reach: In order to attract users to our website, we intend to utilize advertising campaigns to grow our business. We believe that we also can attract more users by offering a quality website that is promoted by word-of-mouth.
Quality User Base: We believe that, in addition to increasing our reach, we need to develop a quality our user base. We believe that high quality content will attract a quality user base.
Excellent Service: We believe that it is important to provide our advertising clients with excellent service.
Competition
We face intense competition. We compete for advertising dollars with large Internet portal sites, such as America Online, MSN and Yahoo!, that offer listings or other advertising opportunities for travel companies. We compete with search engines like Google and Yahoo! Search that offer pay-per-click listings. We compete with travel meta-search engines and online travel deal publishers. We compete with large online travel agencies like Expedia and Priceline that also offer advertising placements. In addition, we compete with newspapers, magazines and other traditional media companies that operate Web sites which provide advertising opportunities. We expect to face additional competition as other established and emerging companies, including print media companies, enter our market. We believe that the primary competitive factors are price and performance.
Many of our current and potential competitors have longer operating histories, significantly greater financial, technical, marketing and other resources and larger client bases than we do. In addition, current and potential competitors may make strategic acquisitions or establish cooperative relationships to expand their businesses or to offer more comprehensive solutions.
New technologies could increase the competitive pressures that we face. The development of competing technologies by market participants or the emergence of new industry standards may adversely affect our competitive position. Competition could result in reduced margins on our advertising revenue, loss of market share or less use of our website by travel and entertainment companies and consumers. If we are not able to compete
effectively with current or future competitors as a result of these and other factors, our business could be materially adversely affected.
Employees
We currently have one part time employee, Peter Klamka. The company plans on hiring qualified personnel subject to funding and availability with expertise in travel services.
Government Regulation and Legal Uncertainties
There are increasing numbers of laws and regulations pertaining to the Internet, including laws and regulations relating to user privacy, liability for information retrieved from or transmitted over the Internet, online content regulation, and domain name registration. Moreover, the applicability to the Internet of existing laws governing issues such as intellectual property ownership and infringement, copyright, patent, trademark, trade secret, obscenity, libel and personal privacy is uncertain and developing
RISKS THAT MAY AFFECT FUTURE RESULTS
We are a relatively young company with no operating history
Since we are a young company, it is difficult to evaluate our business and prospects. At this stage of our business operations, even with our good faith efforts, potential investors have a high probability of losing their investment. Our future operating results will depend on many factors, including the ability to generate sustained and increased demand and acceptance of our website, the level of our competition, and our ability to attract and maintain key management and employees. While management believes their estimates of projected occurrences and events are within the timetable of their business plan, there can be no guarantees or assurances that the results anticipated will occur.
We expect to incur net losses in future quarters
If we do not achieve profitability, our business may not grow or operate. We may not achieve sufficient revenues or profitability in any future period. We will need to generate revenues from the sales of advertising on our website, or take steps to reduce operating costs to achieve and maintain profitability. Even if we are able to generate revenues, we may experience price competition that will lower our gross margins and our profitability. If we do achieve profitability, we cannot be certain that we can sustain or increase profitability on a quarterly or annual basis.
We will require additional funds to operate in accordance with our business plan
We may not be able to obtain additional funds that we will require. We do not presently have adequate cash from operations or financing activities to meet our short term or long-term needs. If unanticipated expenses, problems, and unforeseen business difficulties occur, which result in material delays, we will not be able to operate within our budget. If we do not achieve our internally projected sales revenues and earnings, we will not be able to operate within our budget. If we do not operate within our budget, we will require additional funds to continue our business. If we are unsuccessful in obtaining those funds, we cannot assure you of our ability to generate positive returns to the Company. Further, we may not be able to obtain the additional funds that we require on terms acceptable to us, if at all. We do not currently have any established third-party bank credit arrangements. If the additional funds that we may require are not available to us, we may be required to curtail significantly or to eliminate some or all of our development, publishing, or sales and marketing programs.
If we need additional funds, we may seek to obtain them primarily through equity or debt financings. Such additional financing, if available on terms and schedules acceptable to us, if available at all, could result in dilution to our current stockholders and to you. We may also attempt to obtain funds through arrangement with corporate partners or others. Those types of arrangements may require us to relinquish certain rights to our intellectual property.
We are highly dependent on Peter Klamka, our President and CEO. The loss of Mr. Klamka, whose knowledge, leadership, and technical expertise upon which we rely, would harm our ability to execute our business plan.
We are largely dependent on Peter Klamka, our President and CEO, for specific proprietary technical knowledge and the Company market knowledge. Our ability to successfully market our website may be at risk from an unanticipated accident, injury, illness, incapacitation, or death of Mr. Klamka. Upon such occurrence, unforeseen expenses, delays, losses and/or difficulties may be encountered. Our success may also depend on our ability to attract and retain other qualified management and sales and marketing personnel. We compete for such persons with other companies and other organizations, some of which have substantially greater capital resources than we do. We cannot give you any assurance that we will be successful in recruiting or retaining personnel of the requisite caliber or in adequate numbers to enable us to conduct our business.
If capital is not available to us to expand our business operations, we will not be able to pursue our business plan.
We will require a minimum of $200,000 to complete our website and market it to consumers and potential advertising partners. Cash flows from operations, to the extent available, will be used to fund these expenditures. We intend to seek additional capital from loans from our shareholder and from public and private equity offerings. Our ability to access capital will depend on reaching certain milestones in our business plan such as attracting a sizable number of viewers. It will also be dependent upon the status of the capital markets at the time such capital is sought. Should sufficient capital not be available, the development of our business plan could be delayed and, accordingly, the implementation of our business strategy would be adversely affected. In such event it would not be likely that investors would obtain a profitable return on their investments or a return of their investments.
Our business may be sensitive to events affecting the travel industry in general.
Events like the war with Iraq or the terrorist attacks on the U.S. in 2001 or the current global financial crisis have a negative impact on the travel industry. We are not in a position to evaluate the net effect of these circumstances on our business. In the longer term, our business might be negatively affected by financial pressures on the travel industry. However, our business may also benefit if travel companies increase their efforts to promote special offers or other marketing programs. If such events result in a long-term negative impact on the travel industry, such impact could have a material adverse effect on our business.
We may not be able to develop awareness of our brand name.
We believe that creating awareness of the Macau4You brand name is critical to achieving widespread acceptance of our business. Brand recognition is a key differentiating factor among providers of online advertising opportunities, and we believe it could become more important as competition in our industry increases. In order to maintain and build brand awareness, we must succeed in our marketing efforts. If we fail to successfully promote and maintain our brand, incur significant expenses in promoting our brand and fail to generate a corresponding increase in revenue as a result of our branding efforts, or encounter legal obstacles which prevent our continued use of our brand name, our business could be materially adversely affected.
We will not be able to attract travel and entertainment companies or Internet users if we do not build out our website and continually enhance and develop the content and features of our website.
We must complete the development of our website and continually improve the responsiveness, functionality and features of our website. We may not succeed in developing features and functions that travel and entertainment companies and Internet users find attractive. This could reduce the number of travel and entertainment companies and Internet users using our website and materially adversely affect our business.
We may not be able to access third party technology upon which we depend.
We use and will continue to require technology and software products from third parties, Our present website is hosted without charge on a server leased by our President, Peter Klamka. We do not have any contracts for any hosting services or website development and maintenance which we will need. We have no agreement with Peter Klamka for continued hosting of our site. Technology may not continue to be available to us on commercially reasonable terms, or at all. Our business will suffer if we are unable to access this technology, to gain access to additional products or to build out our existing site. This could cause delays in our development and introduction of new
features or enhancements of our existing website until equivalent or replacement technology can be accessed, if available, or developed internally, if feasible. If we experience these delays, our business could be materially adversely affected.
There is a high degree of risk that our website will not turn out to be commercially viable.
A website such as ours involves a high degree of risk that will not attract a sufficient number of consumers to become commercially viable. The costs building and marketing our website is uncertain. We cannot insure that we will develop a website that has the features that will be popular with the number of consumers necessary to attract paying advertisers.
Since our director and officer has no previous travel industry experience, investors cannot rely on our officers and directors as being experts in the area of travel which is our business focus.
Our officer and director has no previous experience in the travel industry. All business decisions made by him regarding travel will be in reliance on the advice of others due to this lack of experience. If reliable advice is not available, it is unlikely our business will succeed.
Risks Relating to Our Common Stock
We are controlled by a principal stockholder.
Barton PK, LLC, is our largest stockholder, holding beneficially, as of December 31 2012, approximately fifty percent of our outstanding shares. Through their share ownership, they are in a position to control Macau Gaming and to elect our entire board of directors.
Peter C. Klamka, our sole officer and director, is the managing partner of Barton PK, LLC of which the members are two members of Mr. Klamka’s family and the Peter Klamka Revocable Trust.
Accordingly, this entity will be able to exert significant influence over the direction of our affairs and business, including any determination with respect to our acquisition or disposition of assets, future issuances of common stock or other securities, and the election or removal of directors. Such a concentration of ownership may also have the effect of delaying, deferring, or preventing a change in control of the Company or cause the market price of our stock to decline.
Notwithstanding the exercise of his fiduciary duties as officer and director and any duties that such other stockholder may have to us or our other stockholders in general, Mr. Klamka as managing member of Barton PK, LLC may have interests different than yours.
We expect to be subject to SEC regulations and changing laws, regulations and standards relating to corporate governance and public disclosure, including the Sarbanes-Oxley Act of 2002, new SEC regulations and other trading market rules, are creating uncertainty for public companies.
We are committed to maintaining high standards of corporate governance and public disclosure. As a result, we intend to invest appropriate resources to comply with evolving standards, and this investment may result in increased general and administrative expenses and a diversion of management time and attention from revenue-generating activities to compliance activities.
ITEM 2. DESCRIPTION OF PROPERTY.
We currently maintain our executive offices 17033 S. Dixie Highway Miami, FL 33157
ITEM 3. LEGAL PROCEEDINGS.
The company is not party to any legal proceedings .
ITEM 4. MINE SAFETY DISCLOSURES.
Not applicable
PART II
ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.
The Company's common stock is listed on the over-the-counter bulletin board under the Symbol WTTJ.OB. The stock is currently not trading.
DIVIDENDS
The Company has not paid any cash dividends since its inception and does not contemplate paying any in the foreseeable future. It is anticipated that earnings, if any, will be retained for the operation of the Company's business.
PENNY STOCK STATUS
If and when the Company develops a market for its common stock, it will be a "penny stock," as the term is defined by Rule 3a51-1 of the Securities Exchange Act of 1934. This makes it subject to reporting, disclosure and other rules imposed on broker-dealers by the Securities and Exchange Commission requiring brokers and dealers to do the following in connection with transactions in penny stocks:
1. Prior to the transaction, to approve the person's account for transactions in penny stocks by obtaining information from the person regarding his or her financial situation, investment experience and objectives, to reasonably determine based on that information that transactions in penny stocks are suitable for the person, and that the person has sufficient knowledge and experience in financial matters that the person or his or her independent advisor reasonably may be expected to be capable of evaluating the risks of transactions in penny stocks. In addition, the broker or dealer must deliver to the person a written statement setting forth the basis for the determination and advising in highlighted format that it is unlawful for the broker or dealer to effect a transaction in a penny stock unless the broker or dealer has received, prior to the transaction, a written agreement from the person. Further, the broker or dealer must receive a
manually signed and dated written agreement from the person in order to effectuate any transactions is a penny stock.
2. Prior to the transaction, the broker or dealer must disclose to the customer the inside bid quotation for the penny stock and, if there is no inside bid quotation or inside offer quotation, he or she must disclose the offer price for the security transacted for a customer on a principal basis unless exempt from doing so under the rules.
3. Prior to the transaction, the broker or dealer must disclose the aggregate amount of compensation received or to be received by the broker or dealer in connection with the transaction, and the aggregate amount of cash compensation received or to be received by any associated person of the broker dealer, other than a person whose function in solely clerical or ministerial.
4. The broker or dealer who has effected sales of penny stock to a customer, unless exempted by the rules, is required to send to the customer a written statement containing the identity and number of shares or units of each such security and the estimated market value of the security. The imposition of these reporting and disclosure requirements on a broker or dealer make it unlawful for the broker or dealer to effect transactions in penny stocks on behalf of customers. Brokers or dealers may be discouraged from dealing in penny stocks, due to the additional time, responsibility involved, and, as a result, this may have a deleterious effect on the market for the company's stock.
SALES OF UNREGISTERED SECURITIES
In 2007
the company issued 500,000 shares of restricted stock for services rendered or to be rendered in connection with the development of the company’s business plan.
ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA
Results of Operations
For the Years Ended December 31, 2012 and December 31, 2011
There was no revenue for the year ended December 31, 2012 or December 31, 2011 as the Company has had no business activity.
Selling, general and administrative expenses for the year ended December 31, 2012 was $6,164 and $14,649 for the year ended December 31, 2011.
Interest expense and financing costs for the years ended December 31, 2012 and December 31, 2011 were $0.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
FORWARD LOOKING STATEMENTS
This report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Shareholders are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, our ability to fully establish our proposed websites and our ability to conduct business with Palm, Inc. and be successful in selling products. Although we believe the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the report will prove to be accurate.
GENERAL
The following discussion and analysis should be read in conjunction with our consolidated financial statements and related footnotes for the year ended December 31, 2012 elsewhere in this Annual Report on Form 10-K. The discussion of results, causes and trends should not be construed to imply any conclusion that such results or trends will necessarily continue in the future.
Management's Discussion and Analysis of Financial Condition and Results of Operations discusses the Company's consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates and judgments on historical experiences and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The most significant accounting estimates inherent in the preparation of the Company's financial statements relate to the allowance for doubtful accounts. These accounting policies are
described at relevant sections in this discussion and analysis and in the notes to the consolidated financial statements included in this Annual Report on Form l0-K for the year ended December 31, 2012.
ITEM 8. FINANCIAL STATEMENTS.
See pages beginning with page F-1.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
On January 10, 2013, the Company was informed that our registered independent public accountant, Peter Messineo, CPA, of Palm Harbor Florida (“PM”) declined to stand for re-appointment. PM joined into the registered firm of Drake and Klein CPAs PA, as stated in (2) below.
PM's report on the financial statements for the years ended December 31, 2011 and 2010, and for the period May 16, 2007 (date of inception) through December 31, 2011contained no adverse opinion or disclaimer of opinion and was not qualified or modified as to audit scope or accounting, except that the report contained an explanatory paragraph stating that there was substantial doubt about the Company’s ability to continue as a going concern.
Our Board of Directors participated in and approved the decision to change independent accountants. Through the period covered by the financial audit for the years ended December 31, 2011 and 2010 and including its review of financial statements of the quarterly periods through September 30, 2011 there have been no disagreements with PM on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements if not resolved to the satisfaction of PM would have caused them to make reference thereto in their report on the financial statements. Through the interim period January 10, 2013 (the date of decline to stand for re-appointment of the former accountant), there have been no disagreements with PM on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements if not resolved to the satisfaction of PM would have caused them to make reference thereto in their report on the financial statements.
We have authorized PM to respond fully to the inquiries of the successor accountant
During the years ended December 31, 2011 and 2010 and the interim period through January 10, 2013, there have been no reportable events with us as set forth in Item 304(a)(1)(iv) of Regulation S-K.
The Company provided a copy of the foregoing disclosures to PM prior to the date of the filing of this Report and requested that PM furnish it with a letter addressed to the Securities & Exchange Commission stating whether or not it agrees with the statements in this Report. A copy of such letter is filed as Exhibit 16.1 to this Form 8-K.
On January 10, 2013, the Company engaged DKM Certified Public accountants (“DKM”) of Clearwater, Florida, as its new registered independent public accountant. During the years ended December 31, 2011 and 2010 and prior to January 10, 2013 (the date of the new engagement), we did not consult with DKM regarding (i) the application of accounting principles to a specified transaction, (ii) the type of audit opinion that might be rendered on the Company’s financial statements by DKM, in either case where written or oral advice provided by DKM would be an important factor considered by us in reaching a decision as to any accounting, auditing or financial reporting issues or (iii) any other matter that was the subject of a disagreement between us and our former auditor or was a reportable event (as described in Items 304(a)(1)(iv) or Item 304(a)(1)(v) of Regulation S-K, respectively).
Item 9A. CONTROLS AND PROCEDURES.
Reference is made to the disclosures below under Item 9A(T) Controls and Procedures.
Item 9A(T). Controls and Procedures.
Disclosure Controls and Procedures
Our President being the sole member of our management, in his capacity as our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Annual Report (December 31, 2012), as is defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Our disclosure controls and procedures are intended to ensure that the information we are required to disclose in the reports that we file or submit under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and (ii) accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as the principal executive and financial officers, respectively, to allow timely decisions regarding required disclosures.
Based on that evaluation, our President concluded that, as of the end of the period covered by this Annual Report, our disclosure controls and procedures were ineffective.
Our management has concluded that the financial statements included in this Form 10-K present fairly, in all material respects our financial position, results of operations and cash flows for the periods presented in conformity with generally accepted accounting principles.
Management’s Annual Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Exchange Act Rule 13a-15(f). Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles.
Our President conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) as set forth in Internal Control - Integrated Framework. Based on our evaluation under the framework in Internal Control - Integrated Framework, our management concluded that our internal control over financial reporting was ineffective as of December 31, 2012 due to material weaknesses in our internal control over financial reporting.
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 our annual or interim financial statements will not be prevented or detected on a timely basis. The material weaknesses relate to the lack of segregation of duties in our financial reporting process and our lack of a separately designated audit committee. To remedy these material weaknesses, we intend to engage an internal accountant to assist with financial reporting as soon as our finances will allow and to add independent directors as necessary.
This annual report does not include an audit or attestation report of our registered public accounting firm regarding our internal control over financial reporting. Our management’s report was not subject to audit or attestation by our registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only management’s report in this annual report.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system will be met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Evaluation of Changes in Internal Control over Financial Reporting
Our President also conducted an evaluation of our internal control over financial reporting to determine whether any change occurred during the fourth quarter of 2011 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Based on that evaluation, our management concluded that there were no changes.
We acknowledge that the failure to perform management’s assessment adversely affects the company’s and its shareholders ability to avail themselves of rules and forms that are predicated on the current or timely filing of Exchange Act reports
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT.
DIRECTORS AND EXECUTIVE OFFICERS
Our officers and directors and additional information concerning them are as follows:
Name
Age
Position
Peter Klamka
44
Chairman of the Board, CEO, President
Treasurer and Secretary.
Peter Klamka has served as our sole officer and director since inception. Since 1997, he has served as the sole officer and director of Cephas Holding Corp., a reporting issuer that produces mobile phone applications. Since 2008, he has been an officer and director of Solar Acquisition Corp. a reporting issuer in the alternative energy industry. Solar Acquisition Corp. has operations but nominal revenues. From 2006 through 2008, he was on the Board of Directors of Phoenix Interests, Inc. a reporting issuer. During the period of Mr. Klamka’s association with Phoenix Interests, Inc., the company had no revenue and no assets. From 2004 to 2007, he was an officer of GiraSolar Inc, a reporting issuer. He is involved in private businesses from time to time. None of these ventures compete directly or indirectly with the business activities of WTTJ. Mr. Klamka has stated he will not be an officer or director or a majority shareholder of any business related to Internet travel or gaming in Macau while he is the sole officer and director of WTTJ.
EMPLOYMENT AND CONSULTING AGREEMENTS
We have no employment or other written agreement with Peter Klamka, our President and Chief Executive Officer. Mr. Klamka. The Company believes that Mr. Klamka will continue to waive any salary for the foreseeable future, although no assurance thereof can be given.
Mr. Klamka is involved in other business ventures, including the ownership and management other private and public businesses.
CODE OF ETHICS
We have not yet adopted a code of ethics that applies to our principal executive officers, principal financial officer, principal accounting officer or controller, or persons performing similar functions, since we have been focusing our efforts on obtaining financing for the company. We expect to adopt a code by the end of the current fiscal year.
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Securities Exchange Act of 1934 requires our officers, directors, and persons who beneficially own more than 10% of our common stock to file reports of securities ownership and changes in such ownership with
the Securities and Exchange Commission ("SEC"). Officers, directors and greater than 10% beneficial owners are also required by rules promulgated by the SEC to furnish us with copies of all Section 16(a) forms they file.
Based solely upon a review of the copies of such forms furnished to us, or written representations that no Form 5 filings were required, we believe that during the fiscal period ended December 31, 2006, there was compliance with all Section 16(a) filing requirements applicable to our officers, directors and greater than 10% beneficial owners.
ITEM 10. EXECUTIVE COMPENSATION.
None
COMPENSATION OF DIRECTORS
Directors do not receive compensation but are reimbursed for their expenses for each meeting of the board meeting that they attend.
STOCK OPTION PLANS
None
ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
Barton PK, LLC, is our largest stockholder, approximately fifty percent of our outstanding shares.
Peter C. Klamka, our sole officer and director, is the managing partner of Barton PK, LLC of which the members are two members of Mr. Klamka’s family and the Peter Klamka Revocable Trust.
EQUITY COMPENSATION PLANS
None
ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
The Company issued 500,000 shares of common stock for a cash consideration of $75 in 2007 to Barton PK LLC which is controlled by are President Peter C. Klamka .
ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits to this Form 10-K:
3.1
Articles of incorporation dated June 3, 2006(1)
3.2
By-Laws(1)
Certification
Certification
(1) Incorporated by reference from the Company’s Form 10SB filed September 2006.
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
AUDIT FEES
For the audited fiscal period ended December 31, 2012, our principal accountants have billed approximately
$4,300
AUDIT-RELATED FEES
There were no fees billed for services reasonably related to the performance of the audit or review of our financial statements outside of those fees disclosed above under "Audit Fees".
TAX FEES
There were no fees billed during this fiscal period for tax compliance, tax advice, and tax planning services.
ALL OTHER FEES
There were no fees billed for services by our principal accountant, other than those disclosed above.
PRE-APPROVAL POLICIES AND PROCEDURES
Prior to engaging our accountants to perform a particular service, our board of directors obtains an estimate for the service to be performed.
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.
WTTJ CORP.
Dated: May 3, 2013
s/s Peter Klamka
Peter Klamka, President
In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
SIGNATURE
TITLE
DATE
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Chairman, President,
Secretary and
Chief Executive Officer
/s/ Peter Klamka
(Principal Executive
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and Accounting Officer)
May 3, 2013
Peter Klamka
DKM CERTIFIED PUBLIC ACCOUNTANTS |
| 2451 N. McMullen Booth Road Suite.308 Clearwater, FL 33759 855.334.0934 Toll free |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Stockholders
WTTJ Corp.
We have audited the accompanying balance sheet of WTTJ Corp. (a development stage company) as of December 31, 2012, and the related statement of operations, stockholders’ equity, and cash flows for the year ended December 31, 2012 and the period from Inception (May 16, 2007) through December 31, 2012. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements as of and for the year ended December 31, 2011 were audited by another auditor who expressed an unqualified opinion on January 13, 2012.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits 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 audits 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 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 audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of WTTJ Corp. as of December 31, 2012, and the results of its operations and its cash flows for the year then ended and the period from Inception (May 16, 2007) in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has significant net losses and cash flow deficiencies. Those conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans regarding those matters are described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ DKM Certified Public Accountants
DKM Certified Public Accountants
Clearwater, Florida
WTTJ CORP. |
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(A DEVELOPMENT STAGE COMPANY) |
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BALANCE SHEETS |
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| DECEMBER 31, | DECEMBER 31, |
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| 2012 | 2011 |
ASSETS |
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CURRENT |
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Cash |
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| $ 3,009 | $ 3 |
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Total Current Assets |
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| 3,009 | 3 | |
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FIXED - AT COST |
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Computer equipment |
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| 2,353 | 2,353 | |
Less: Accumulated depreciation |
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| (805) | (335) | ||
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Net Fixed Assets |
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| 1,548 | 2,018 | |
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TOTAL ASSETS |
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| $ 4,557 | $ 2,021 | |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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LIABILITIES |
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Accounts payable |
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| $ 6,350 | $ 3,500 | |
Due to shareholder |
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| 6,736 | 1,186 | |
TOTAL CURRENT LIABILITIES |
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| 13,086 | 4,686 | |||
TOTAL LIABILITIES |
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| 13,086 | 4,686 | |
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STOCKHOLDERS' EQUITY |
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Preferred Shares, no par value, authorized 1,000,000, 0 issued |
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Commons shares, no par value, authorized - 4,000,000 (1,000,000 December 31, 2011) |
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- issued and outstanding - 654,000(December 31, 2011 - 651,000(Adj.)) | 14,675 | 14,375 | |||||
RETAINED EARNINGS(DEFICIT) DURING DEVELOPMENT STAGE | (23,204) | (17,040) | |||||
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TOTAL STOCKHOLDERS' EQUITY |
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| (8,529) | (2,665) | ||
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
| $ 4,557 | $ 2,021 | ||||
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The auditors' report and accompanying notes are an integral part of these financial statements. |
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WTTJ CORP. |
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(A DEVELOPMENT STAGE COMPANY) |
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STATEMENTS OF OPERATIONS |
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| FROM |
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| INCEPTION |
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| YEAR ENDED | MAY 16, 2007 | ||
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| DECEMBER 31, | TO DECEMBER | ||
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| 2012 | 2011 | 31, 2012 |
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REVENUE |
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| $ - | $ - | $ - |
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EXPENSES |
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General and administrative |
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| 6,164 | 14,649 | 23,204 | |
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Total Expenses |
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| 6,164 | 14,649 | 23,204 | |
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NET INCOME(LOSS) |
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| $ (6,164) | $ (14,649) | $ (23,204) | |
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WEIGHTED AVERAGE NUMBER OF SHARES |
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OUTSTANDING (2011 Adj.) |
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| 653,000 | 628,910 |
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NET INCOME(LOSS) PER SHARE |
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| $ (0.01) | $ (0.02) |
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The auditors' report and accompanying notes are an integral part of these financial statements. |
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WTTJ CORP. |
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(A DEVELOPMENT STAGE COMPANY) |
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STATEMENTS OF CASH FLOWS |
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| INCEPTION | ||||||||
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| YEAR ENDED | MAY 16, 2007 | |||||||||
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| 2012 | 2011 | 2012 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
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Net income(loss) |
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| $ (6,164) | $ (14,649) | $ (23,204) | |||||||||
Adjustment to reconcile net loss to net cash |
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used in operating activities: |
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Depreciation |
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| 470 | 335 | 805 | |||||||||
Changes in operating assets and liabilities: |
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Accounts payable |
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| 2,850 | 1,500 | 6,350 | |||||||||
Net cash used in operating activities |
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CASH FLOWS FROM FINANCING ACTIVITIES: |
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Advances from an officer |
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| 5,550 | 70 | 6,736 | |||||||||
Issuance of common stock |
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| 300 | 14,300 | 14,675 | |||||||||
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Net cash provided by financing activities |
| 5,850 | 14,370 | 21,411 | |||||||||||
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CASH FLOWS FROM INVESTING ACTIVITIES |
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Purchase of computer equipment |
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Net cash used in investing activities |
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INCREASE (DECREASE) IN CASH |
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| 3,006 | (797) | 3,009 | ||||||||||
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CASH, Beginning of period |
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CASH, End of period |
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| $ 3,009 | $ 3 | $ 3,009 | |||||||||
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SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION: |
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| Interest paid |
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| $ - | $ - | $ - | ||||||||
| Income taxes paid |
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| $ - | $ - | $ - | |||||||||
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The auditors' report and accompanying notes are an integral part of these financial statements. |
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WTTJ CORP. |
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(A DEVELOPMENT STAGE COMPANY) |
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STATEMENT OF STOCKHOLDERS' EQUITY |
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FROM DECEMBER 31, 2009 TO DECEMBER 31, 2012 |
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Balance - December 31, 2009 | 500,000 | $ 75 | $ (75) | $ - | |||||||||||
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Net loss - December 31, 2010 | - | - | (2,316) | (2,316) | |||||||||||
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Balance - December 31, 2010 | 500,000 | 75 | (2,391) | (2,316) | |||||||||||
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Issuance of stock for cash (Adj.) | 151,000 | 14,300 | - | 14,300 | |||||||||||
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Net loss - December 31, 2011 | - | - | (14,649) | (14,649) | |||||||||||
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Balance - December 31, 2011 (Adj.) | 651,000 | 14,375 | (17,040) | (2,665) | |||||||||||
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Issuance of stock for cash, May 2012 | 3,000 | 300 | - | 300 | |||||||||||
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Net loss - December 31, 2012 | - | - | (6,164) | (6,164) | |||||||||||
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Balance - December 31, 2012 | 654,000 | $ 14,675 | $ (23,204) | $ (8,529) | |||||||||||
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The auditors' report and accompanying notes are an integral part of these financial statements. | |||||||||||||||
WTTJ CORP.
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
December 31, 2012
Note 1 - Organization and Summary of Significant Accounting Policies:
Organization:
WTTJ CORP. (the “Company”) was organized in the State of Michigan on May 16, 2007. The Company’s primary business activity is to acquire or commence a commercially viable operation
The Company’s fiscal year end is December 31.
Basis of Presentation – Development Stage Company:
The Company has not earned any revenues from limited principal operations. Accordingly, the Company’s activities have been accounted for as those of a “Development Stage Enterprise” as set forth in Accounting Standards Codification No. 915 “Development Stage Entities”(“ASC 915”). 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’ equity (deficit) and cash flows disclose activity since the date of the Company’s inception.
Basis of Accounting:
The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States. The financial statements have, in management's opinion, been properly prepared within the framework of the significant accounting policies summarized below:
Cash and Cash Equivalents:
The Company considers all highly liquid debt instruments, purchased with an original maturity of three months or less, to be cash equivalents.
Use of Estimates:
These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. Because a precise determination of assets and liabilities, and correspondingly revenues and expenses, depends on future events, the preparation of financial statements for any period necessarily involves the use of estimates and assumption an example being assumptions in valuation of stock options. Actual amounts may differ from these estimates. These financial statements have, in management's opinion, been properly
prepared within reasonable limits of materiality and within the framework of the accounting policies summarized below.
Computer Equipment:
Computer equipment is recorded at cost. Depreciation is provided on a straight-line basis over the estimated useful life of the asset.
Net Loss Per Share:
Net loss per share is based on the weighted average number of common shares and common shares equivalents outstanding during the period.
Stock-Based Compensation
The Company accounts for share-based compensation under the fair value recognition provisions such that compensation cost is measured at the grant date based on the value of the award and is expensed ratably over the vesting period. Determining the fair value of share-based awards at the grant date requires judgment, including estimating the percentage of awards which will be forfeited, stock volatility, the expected life of the award, and other inputs. If actual forfeitures differ significantly from the estimates, share-based compensation expense and the Company's results of operations could be materially impacted.
The Company may also issue restricted stock to consultants for various services. Cost for these transactions are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of the common stock is measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn the equity instruments is reached or (ii) the date at which the counterparty's performance is complete. The Company recognizes these service expenses and a corresponding increase to additional paid-in-capital related to stock issued for services. When stock is issued as payment for past services provided, accordingly, all shares issued are fully vested, and there is no unrecognized compensation associated with these transactions. If stock is issued in advance of service performance expense is recognized ratably over the requisite service period.
As of December 31, 2012 there was $0 of unrecognized expense related to non-vested stock-based compensation arrangements granted and no stock based compensation.
Note 2 – Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the period from inception through December 31, 2012, the Company has had limited operations. As of December 31, 2012, the Company has not emerged from the development stage. In view of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to commence a commercially viable operation and to achieve a level of profitability. The Company intends on financing its future development activities and its working capital needs largely from the sale of public equity securities with some additional funding from other traditional financing sources, including term notes until such time that funds provided by operations are sufficient to fund working capital requirements. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.
Note 3 – Federal Income Taxes:
The Financial Accounting Standards Board (FASB) has issued Statement of Financial Accounting Standards Number 109 (“SFAS 109”). “Accounting for Income Taxes”, which requires a change from the deferred method to the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities.
Income tax provision/(benefit)
Income tax benefit at federal and state rates (38)%
Less valuation allowance 38 %
Income tax benefit recorded 0 %
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial statement purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax liabilities and assets as of December 31, 2012 are as follows:
Deferred tax assets:
Federal and state net operating loss
$
23,204
Equity instruments issued for compensation
-
Total deferred tax assets
23,204
Less valuation allowance
(23,204)
$ --====
Under the Internal Revenue Code of 1986, as amended, these losses can be carried forward twenty years. As of December 31, 2012 the Company has net operating loss carry forwards that start expiring in 2027.
The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending December 31, 2007 through 2012. The Company state income tax returns are open to audit under the statute of limitations for the years ending December 31, 2007 through 2012.
The Company recognizes interest and penalties related to income taxes in income tax expense. The Company had incurred no penalties and interest for the years ended December 31, 2012 and 2011.
Note 4 – Capital Stock:
On January 26, 2012 the Company amended its articles of incorporation, increasing the authorized shares of common stock, no par, to 4,000,000. Additionally, the Company authorized 1,000,000 shares of no par preferred stock. The preferred shares carry voting rights of 20 votes per share. No preferred shares have been issued, as of December 31, 2012.
Transactions:
The Company issued 500,000 shares of common stock for a cash consideration of $75 in 2007.
During 2011 the Company issued 151,000 shares of common stock for cash totaling $14,300. The amount recorded in the original December 31, 2011 Form 10-K was 143,000 shares. During the first quarter of 2012, the typographical error was recognized in the total number of shares reported. The additional 8,000 shares previously issued were reported in the Financial Statements and corresponding notes from that point forward. Changes to previously filed numbers are noted as adjusted (Adj.) in prior periods on the face of the current financial statements where applicable.
In May of 2012 the Company issued 3,000 shares of common stock for a cash consideration of $300.
Note 5 – Related Party Transactions
The Company is presently funding its operating expense through the support of the majority shareholder. These advances, which are non-interest bearing and due on demand, are considered temporary in nature. The majority shareholder does not have a commitment to fund future operations.
The sole officer and director of the Company is involved in other business activities and may, in the future, become involved in other business opportunities that become available. He may face a
conflict in selecting between the Company and other business interests. The Company has not formulated a policy for the resolution of such conflicts.
The Company has limited need for office space. The Company does not own or lease property or lease office space. The office space used by the Company was arranged by the sole officer and director of the Company to use at no charge.
The above transactions may not reflect the results had the terms and conditions been incurred with unrelated parties.
Note 6 – Financial Accounting Developments:
Recently Issued Accounting Pronouncements
Accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.
Note 7 - Subsequent Events
Management has evaluated subsequent events through the date the financial statements were issued. Based on our evaluation no events have occurred requiring adjustment or disclosure.