Attached files
file | filename |
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EX-32.1 - EXHIBIT 32.1 - Toshoan Holdings, Inc. | toshoanexhibit321.htm |
EX-31.1 - EXHIBIT 31.1 - Toshoan Holdings, Inc. | toshoanexhibit311.htm |
EXCEL - IDEA: XBRL DOCUMENT - Toshoan Holdings, Inc. | Financial_Report.xls |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2014
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
COMMISSION FILE NUMBER: 000-54893
Toshoan Holdings, Inc.
(Exact name of registrant as specified in its charter)
Delaware | 46-1778735 | ||
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | ||
1-1-36, Nishiawaji, Higashiyadogawa-ku Osaka, Japan |
533-0031 (Zip Code) |
||
(Address of Principal Executive Offices) |
Issuer's telephone number: +81-6-6325-5035
Fax number: +81-6325-5037
Email: info@toa-group.asia
Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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 (Section 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, or a non-accelerated filer or a small reporting company. See definition of large accelerated filer, accelerated filer and small reporting company in Rule 12b-2 of the Securities Exchange Act of 1934.
Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Small 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
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
As of June 3, 2014, there were approximately 70,000,000 shares of common stock and 1,000,000 shares of preferred stock issued and outstanding.
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INDEX
PART I-FINANCIAL INFORMATION
ITEM 1 | FINANCIAL STATEMENTS | F1 | |
CONDENSED Balance Sheets AT APRIL 30, 2014 (UNAUDITED) AND jANUARY 31, 2014 | F2 | ||
cONDENSED Statements of Operations FOR THE THREE MONTHS ENDED APRIL 30, 2014 AND 2013 AND FOR THE PERIOD FROM JANUARY 24, 2014 (DATE OF INCEPTION) THROUGH APRIL 30, 2014 (UNAUDITED) | F3 | ||
CONDENSED Statements of Cash Flows FOR THE THREE MONTHS ENDED APRIL 30, 2014 AND 2013 AND FOR THE PERIOD FROM JANAURY 24, 2014 (DATE OF INCEPTION) THROUGH APRIL 30, 2014 (UNAUDITED) | F4 | ||
Notes to CONDENSED UNAUDITED Financial Statements | F5 | ||
ITEM 2 | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS | 3 | |
ITEM 3 | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 3 | |
ITEM 4 | CONTROLS AND PROCEDURES. | 4 | |
PART II-OTHER INFORMATION | |||
ITEM 1 | LEGAL PROCEEDING | 5 | |
ITEM 1A | RISK FACTORS | ||
ITEM 2 | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | 5 | |
ITEM 3 | DEFAULTS UPON SENIOR SECURITIES | 5 | |
ITEM 4 | REMOVED AND RESERVED | 5 | |
ITEM 5 | OTHER INFORMATION | 5 | |
ITEM 6 | EXHIBITS | 5 | |
SIGNATURES | 6 |
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PART I-FINANCIAL INFORMATION
ITEM 1 | FINANCIAL STATEMENTS |
INDEX TO FINANCIAL STATEMENTS
Pages | ||
Balance Sheets | F2 | |
Statements of Operations | F3 | |
Statements of Cash Flows | F4 | |
Notes to Financial Statements | F5 |
-F1-
TOSHOAN HOLDINGS, INC. | |||||
(A DEVELOPMENT STAGE COMPANY) | |||||
CONSOLIDATED BALANCE SHEETS | |||||
(UNAUDITED) | |||||
As of | As of | ||||
April 30, 2014 | January 31, 2014 | ||||
ASSETS | |||||
Current Assets | |||||
Trade receivables - Related party | $ | 21,126 | $ | - | |
TOTAL CURRENT ASSETS | $ | 21,126 | $ | - | |
TOTAL ASSETS | $ | 21,126 | $ | - | |
LIABILITIES AND SHAREHOLDER EQUITY | |||||
Current Liabilities | |||||
Trade Payables - Related party | $ | 15,845 | $ | - | |
Accrued expenses | $ | - | $ | 4,672 | |
Account payables - Related Party | $ | 46,129 | $ | 29,815 | |
TOTAL CURRENT LIABILITIES | $ | 61,974 | $ | 34,487 | |
TOTAL LIABILITIES | $ | 61,974 | $ | 34,487 | |
Shareholders’ Equity (Deficit) | |||||
Preferred stock ($.0001 par value, 20,000,000 shares authorized, | |||||
1,000,000 share and none issued and outstanding | |||||
as of April 30, 2014 and January 31, 2014) | $ | 100 | $ | 100 | |
Common stock ($.0001 par value, 500,000,000 shares authorized, | |||||
70,000,000 shares and 20,000,000 shares issued and outstanding | |||||
as of April 30, 2014 and January 31, 2014) | $ | 7,000 | $ | 7,000 | |
Additional paid-in capital | $ | 2,438 | $ | 2,438 | |
Subscriptions receivables | $ | (2,505) | $ | (2,676) | |
Deficit accumulated during the development stage | $ | (48,841) | $ | (42,284) | |
Accumulated other comprehensive income | |||||
Foreign currency translation | $ | 960 | $ | 935 | |
TOTAL SHAREHOLDERS' EQUITY | $ | (40,848) | $ | (34,487) | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 21,126 | $ | - | |
The accompanying notes are an integral part of these unaudited financial statements |
-F2-
TOSHOAN HOLDINGS, INC. | |||||||
(A DEVELOPMENT STAGE COMPANY) | |||||||
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||
(UNAUDITED) | |||||||
Period from | |||||||
January 24, 2013 | |||||||
Three months | Three months | (Date of Inception) | |||||
Ended | Ended | through | |||||
April 30, 2014 | April 30, 2013 | April 30, 2014 | |||||
Revenues - Related party | $ | 21,110 | $ | - | $ | 28,614 | |
Cost of revenues - Related party | 15,833 | - | 21,605 | ||||
Gross profit | $ | 5,277 | $ | - | $ | 7,009 | |
General and Administrative Expenses | |||||||
Director's compensation | $ | - | $ | - | $ | 5,100 | |
General and administrative expenses | 11,834 | 2,000 | 50,750 | ||||
Total Expenses | $ | 11,834 | 2,000 | 55,850 | |||
NET INCOME (LOSS) BEFORE TAXES | $ | (6,557) | $ | (2,000) | $ | (48,841) | |
Income Tax Expenses | $ | - | $ | - | $ | - | |
NET INCOME (LOSS) | $ | (6,557) | $ | (2,000) | $ | (48,841) | |
OTHER COMHREHENSIVE INCOME | |||||||
Foreign currency translation adjustment | $ | 25 | $ | - | $ | 960 | |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ | (6,532) | $ | (2,000) | $ | (47,881) | |
WEIGHTED AVERAGE SHARES OUTSTANDING | 70,000,000 | 20,000,000 | |||||
NET INCOME(LOSS) PER SHARE | $ | (0.00) | $ | (0.00) | |||
The accompanying notes are an integral part of these unaudited financial statements |
-F3-
TOSHOAN HOLDINGS, INC. | |||||||
(A DEVELOPMENT STAGE COMPANY) | |||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
(UNAUDITED) | |||||||
Period from | |||||||
January 24, 2013 | |||||||
Three months | Three months | (Date of Inception) | |||||
Ended | Ended | through | |||||
April 30, 2014 | April 30, 2013 | April 30, 2014 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income (loss) | $ | (6,557) | $ | (2,000) | $ | (48,841) | |
Trade receivables - Related party | (21,126) | - | (21,126) | ||||
Trade payables - Related party | 15,845 | - | 15,845 | ||||
Prepaid Expenses | - | 2,000 | - | ||||
Accrued expenses | (4,672) | - | - | ||||
Stock issued for services rendered | - | - | 7,100 | ||||
Net cash provided by (used in) operating activities | $ | (16,510) | $ | - | $ | (47,022) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Loan from Director | $ | 16,314 | $ | - | $ | 45,891 | |
Decrease (increase) of Subscription receivables | 171 | - | 171 | ||||
Net cash provided by (used in) financing activities | $ | 16,485 | - | 46,062 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Net cash provided by (used in) investing activities | $ | - | $ | - | $ | - | |
Net effect of exchange rate changes on cash | $ | 25 | $ | - | $ | 960 | |
Net Change in Cash and Cash equivalents | - | - | - | ||||
Cash and cash equivalents - beginning of period | - | - | - | ||||
Cash and cash equivalents - end of period | - | - | - | ||||
NONCASH INVESTING AND FINANCING ACTIVITIES | |||||||
Subscription receivables | $ | - | - | 2,676 | |||
Contribution to capital by related party for write-off of accounts payable | - | - | 2,438 | ||||
SUPPLEMENTAL INFORMATION | |||||||
Interest paid | - | - | - | ||||
Income taxes paid | - | - | - | ||||
The accompanying notes are an integral part of these unaudited financial statements. |
-F4-
TOSHOAN HOLDINGS, INC
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED UNAUDITED FINANCIAL STATEMENTS
AS OF APRIL 30, 2014
(UNAUDITED)
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Toshoan Holdings, Inc. (the “Company”), a development stage company, was incorporated under the laws of the State of Delaware on January 24, 2013, with an objective to acquire, or merge with, an operating business. As of October 31, 2013, the Company had not yet commenced any operations.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements of Toshoan Holdings, Inc. (the “Company” ) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or the SEC, including the instructions to Form 10-Q and Regulation S-X. In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three month periods and for the period from the date of inception have been made. Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year. When used in these notes, the terms “Company”, “we”, “us” or “our” mean the Company. Certain information and note disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America has been condensed or omitted from these statements pursuant to such accounting principles and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements and should be read in conjunction with our audited financial statements for the year ended January 31, 2014.
The results of operations for the three month period ended April 30, 2014 are not necessarily indicative of the results for the full fiscal year ending January 31, 2015.
NOTE 3 - GOING CONCERN
The accompanying financial statements are prepared on a basis of accounting assuming that the Company is a going concern that contemplates realization of assets and satisfaction of liabilities in the normal course of business. The Company is considered a development stage company and has few current revenue sources. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s management plans to engage in very limited activities without incurring any liabilities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue- producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.
NOTE 4 - RELATED-PARTY TRANSACTIONS
At April 30, 2014 the Company owed a related party in the amount of $46,129 to Hajime Abe, sole director.
At April 30, 2014, the Company has $15,845 of related party trade payable due to Tsukiji Toa Suisan Co., Ltd. for the amount of cost of goods sold. Hajime Abe is a shareholder of Tsukiji Toa Suisan Co., Ltd..
At April 30, 2014, the Company has $21,126 of related party trade payable due to Toshoan Restaurant for the amount of cost of goods sold. Hajime Abe is owner of Toshoan Restaurant.
NOTE 5 - 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.
-F5-
ITEM 2 | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
Our cash balance is $0 as of April 30, 2014. Our cash balance is not sufficient to fund our limited levels of operations for any period of time. We have been utilizing and may utilize funds from Hajime Abe, our president and director, who has informally agreed to advance funds to allow us to pay for offering costs, filing fees, and professional fees. Hajime Abe, however, has no formal commitment, arrangement or legal obligation to advance or loan funds to the company. In order to implement our plan of operations for the next twelve-month period, we require a minimum of $1,000,000 of funding. Being a development stage company, we have very limited operating history. After a twelve-month period we may need additional financing but currently do not have any arrangements for such financing.
We are a development stage company and have generated few revenue to date.
If we do not receive any proceeds in the foreseeable future or the minimum amount of $1,000,000 that we require to operate for the next 12 months, Hajime Abe has informally agreed to advance us funds, however, he has no formal commitment, arrangement or legal obligation to advance or loan funds to the company.
If we need additional cash and cannot raise it, we will either have to suspend operations until we do raise the cash we need, or cease operations entirely.
ITEM 3 | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide the information required by this Item.
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ITEM 4 | CONTROLS AND PROCEDURES |
Management’s Report on Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934 , as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and our chief financial officer (who is acting as our principal executive officer, principal financial officer and principle accounting officer) to allow for timely decisions regarding required disclosure.
As of April 30, 2014, the end of the fiscal period covered by this report, we carried out an evaluation, under the supervision of our chief executive officer, with the participation of our chief financial officer, of the effectiveness of the design and the operation of our disclosure controls and procedures. The officers concluded that the disclosure controls and procedures were not effective as of the end of the period covered by this report due to material weaknesses identified below.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of internal control include providing management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management’s authorization and recorded properly to permit the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States. Our management assessed the effectiveness of our internal control over financial reporting as of April 30, 2014. 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. Our management has concluded that, as of April 30, 2014, our internal control over financial reporting was not effective as of the end of the period covered by this report due to identified material weaknesses. Inasmuch as we only have one individuals serving as our officer, and employee we have determined that the Company has inadequate controls and procedures over financial reporting due to the lack of segregation of duties and lack of a formal review process that includes multiple levels of review, resulting in several audit adjustments related to derivative accounting, accounting of the Company’s convertible debt instruments, and write-off of assets. Management recognizes that its controls and procedures would be substantially improved if there was a greater segregation of the duties of Chief Executive Officer and Chief Financial Officer and as such is actively seeking to remediate this issue. Management believes that the material weakness in its controls and procedures referenced did not have an effect on our financial results.
This quarterly report does not include an attestation report of our company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our Company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit our company to provide only management’s report in this annual report.
Inherent limitations on effectiveness of controls
Internal control over financial reporting has inherent limitations which include but is not limited to the use of independent professionals for advice and guidance, interpretation of existing and/or changing rules and principles, segregation of management duties, scale of organization, and personnel factors. Internal control over financial reporting is a process which involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a timely basis, however these inherent limitations are known features of the financial reporting process and it is possible to design into the process safeguards to reduce, though not eliminate, this risk. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. 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.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal controls over financial reporting that occurred during the period ended April 30, 2014 that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.
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PART II-OTHER INFORMATION
ITEM 1 | LEGAL PROCEEDINGS |
There are no legal proceedings against the Company and the Company is unaware of such proceedings contemplated against it.
ITEM 1A | RISK FACTORS |
As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide the information required by this Item.
ITEM 2 | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
On January 18, 2013 Jeffrey DeNunzio sold 20,000,000 shares of common stock to Hajime Abe.
On June 20, 2013, Jeffrey DeNunzio of 780 Reservoir Avenue, #123, Cranston, RI 02910, the sole shareholder of the Company, entered into a Share Purchase Agreement with Hajime Abe, C/O Toa Shoko, 1-1-36, Nishiawaji, Higashiyodogawa-ku, Osaka 533-0031, Japan. Pursuant to the Agreement, Mr. DeNunzio transferred to Hajime Abe, 20,000,000 shares of our common stock which represented all of our issued and outstanding shares.
On December 2, 2013, the Company issued 1,000,000 shares of restricted Series A preferred stock valued at $100 to Hajime Abe as director’s compensation.
On December 2, 2013, the Company issued 50,000,000 shares of restricted common stock valued at $5,000 to Hajime Abe as director’s compensation.
On December 11, 2013, Mr. Hajime Abe entered into stock purchase agreements with approximately 707 Japanese shareholders. Pursuant to these agreements, Mr. Abe sold 66,148,000 shares of common stock in the company to these individuals and received $6,615 as aggregate consideration.
We claim an exemption from registration afforded by Section 4(2) and/or Regulation S of the Securities Act of 1933, as amended ("Regulation S") for the above sales of the stock since the sales of the stock were made to non-U.S. persons (as defined under Rule 902 section (k)(2)(i) of Regulation S), pursuant to offshore transactions, and no directed selling efforts were made in the United States by the issuer, a distributor, any of their respective affiliates, or any person acting on behalf of any of the foregoing.
ITEM 3 | DEFAULTS UPON SENIOR SECURITIES |
None
ITEM 4 | MINE SAFETY DISCLOSURES |
Not applicable.
ITEM 5 | OTHER INFORMATION |
None
ITEM 6 | EXHIBITS |
(a) | Exhibits required by Item 601 of Regulation S-K. |
Exhibit No. |
Description | |
3.1 | Certificate of Incorporation. (1) | |
3.2 | By-laws. (1) | |
31.1 | Certification of the Company’s Principal Executive and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s report on Form 10-Q for the quarter ended March 31, 2014. (2) | |
32.1 | Certification of the Company’s Principal Executive and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (2) | |
101.INS | XBRL Instance Document (3) | |
101.SCH | XBRL Taxonomy Extension Schema (3) | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase (3) | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase (3) | |
101.LAB | XBRL Taxonomy Extension Label Linkbase (3) | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase (3) |
(1) | Filed as an exhibit to the Company's Registration Statement on Form 10, as filed with the SEC on November 7, 2013, and incorporated herein by this reference. |
(2) | Filed herewith. |
(3) | Users of this data are advised that, pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or Annual Report for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Exchange Act of 1934 and otherwise are not subject to liability. |
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SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, there unto duly authorized.
Toshoan Holdings Inc.
(Registrant)
By: /s/ Hajime Abe
Hajime Abe, President, Secretary and
Principal Financial Officer
Dated: June 3, 2014
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