Attached files
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EX-32.1 - EX-32.1 - SweeGen, Inc. | ex-32_1.htm |
EX-31.1 - EX-31.1 - SweeGen, Inc. | ex-31_1.htm |
EXCEL - IDEA: XBRL DOCUMENT - SweeGen, Inc. | Financial_Report.xls |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10–Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 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: 333-190547
Aceway Corp.
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(Exact name of registrant as specified in its charter)
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Nevada
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27-1679428
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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2620 Regatta Drive, Ste 102, Las Vegas, NV 89128
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(Address of principal executive offices)
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888-475-4489
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(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year, if changed since last report)
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]
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). Yes [X] 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 (Check one).
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Accelerated filer [ ]
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Non-accelerated filer [ ]
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Smaller reporting company [X]
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(Do not check if a smaller reporting company)
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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 November 7, 2014, there 35,000,020 shares of the issuer's common stock, par value $0.001, outstanding.
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2014
TABLE OF CONTENTS
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The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's form 10-K filed with the SEC on August 19, 2014. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented have been reflected herein. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year ending June 30, 2015.
ACEWAY CORP.
FINANCIAL STATEMENTS
April 1, 2013 (Inception) through September 30, 2014
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Page
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4
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5
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6
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7
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8
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3
ACEWAY CORP.
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September 30,
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June 30,
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2014
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2014
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ASSETS
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(Unaudited)
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Current Assets
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Cash and cash equivalents
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$
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6,472
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$
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18,705
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Total Current Assets
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6,472
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18,705
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TOTAL ASSETS
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$
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6,472
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$
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18,705
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LIABILITIES AND STOCKHOLDERS' EQUITY
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LIABILITIES
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Current Liabilities
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Accounts payable & accrued expenses
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$
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1,815
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$
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6,500
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Due to shareholder
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1,313
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1,313
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Total Current Liabilities
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3,128
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7,813
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TOTAL LIABILITIES
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3,128
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7,813
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STOCKHOLDERS' EQUITY
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Common Stock, 75,000,000 shares authorized; par value $0.001, 35,000,020 and 35,000,020 shares issued and outstanding, respectively
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35,000
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35,000
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Additional paid in capital
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20,000
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20,000
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Accumulated deficit
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(51,656
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)
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(44,108
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)
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Total Stockholders' Equity
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3,344
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10,892
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$
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6,472
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$
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18,705
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The accompanying notes are an integral part of these financial statements.
4
ACEWAY CORP
(Unaudited)
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Three Months Ended September 30, 2014
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Three Months Ended September 30, 2013
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REVENUES:
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$
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-
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$
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-
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OPERATING EXPENSES:
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General and administrative
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33
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2,942
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Professional fees
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7,515
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3,058
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Total Operating Expenses
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7,548
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6,000
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Net loss from operations
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$
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(7,548
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)
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$
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(6,000
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)
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OTHER INCOME AND EXPENSE
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Income taxes
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-
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-
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Net Loss
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$
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(7,548
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)
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$
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(6,000
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)
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Basic loss per share
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$
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(0.00
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)
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$
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(0.00
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)
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Weighted average number of shares outstanding
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35,000,020
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25,000,000
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The accompanying notes are an integral part of these financial statements.
5
ACEWAY CORP
For the period April 1, 2013 (date of inception) through September 30, 2014
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Common Stock
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Additional Paid in
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Accumulated Deficit During The
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Total Stockholder's
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|||||||||||||||||
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Shares
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Amount
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Capital
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Development Stage
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Deficit
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Balance as of April 1, 2013 (Inception)
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-
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$
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-
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$
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-
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$
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-
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$
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-
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Common shares issued for cash at $0.001 per share
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25,000,000
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25,000
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-
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-
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25,000
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Net loss
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-
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-
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-
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(5,446
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)
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-
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Balance, June 30, 2013
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25,000,000
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$
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25,000
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$
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-
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$
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(5,446
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)
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$
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19,554
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Common shares issued for cash at $0.01 per share
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10,000,020
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10,000
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20,000
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-
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30,000
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Net loss
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-
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-
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-
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(38,662
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)
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(38,662
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)
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Balance, June 30, 2014
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35,000,020
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$
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35,000
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$
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20,000
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$
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(44,108
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)
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$
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10,892
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Net loss
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-
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-
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-
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(7,548
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)
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(7,548
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)
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Balance, September 30, 2014
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35,000,020
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$
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35,000
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$
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20,000
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$
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(51,656
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)
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$
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3,344
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The accompanying notes are an integral part of these financial statements.
6
ACEWAY CORP
(Unaudited)
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Three Months Ended
September 30, 2014
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Three Months Ended
September 30, 2013
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CASH FLOWS FROM OPERATING ACTIVITIES
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Net loss
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$
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(7,548
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$
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(6,000
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)
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Adjustments to reconcile net loss to
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net cash used by operating activities:
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Changes in deposits
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-
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700
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Changes in accounts payable & accrued expenses
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(4,685
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)
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(950
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)
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Net cash used in operating activities
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(12,233
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)
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(6,250
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)
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Net Cash Used in Investing Activities
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-
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-
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CASH FLOWS FROM FINANCING ACTIVITIES
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Advances from related party
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-
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-
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Proceeds from issuance of common stock
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-
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-
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Net cash provided by financing activities
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-
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-
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Net increase in cash and cash equivalents
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(12,233
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)
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(6,250
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)
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Cash and cash equivalents, beginning of the year
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18,705
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23,667
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Cash and cash equivalents, end of the year
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$
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6,472
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$
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17,417
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Supplemental Cash Flow Disclosure:
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Cash paid for interest
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$
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-
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$
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-
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Cash paid for income taxes
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$
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-
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$
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-
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The accompanying notes are an integral part of these financial statements.
7
ACEWAY CORP
For the period April 1, 2013 (date of inception) through September 30, 2014
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
ACEWAY CORP (the "Company") is a Nevada corporation incorporated on April 1, 2013. It is based in Panama City. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America, and the Company's fiscal year end is June 30.
The Company is a development stage company that intends to establish itself as an all-inclusive online shopping and shipping website throughout South America for customers who wish to purchase US and Chinese made products. To date, the Company's activities have been limited to its formation and the raising of equity capital.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Financial Statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The Financial Statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles ("GAAP") of the United States.
In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.
Start-Up Costs
In accordance with ASC 720, "Start-up Costs", the Company expenses all costs incurred in connection with the start-up and organization of the Company.
Cash and Cash Equivalents
Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had $6,472 and $18,705 in cash and cash equivalents as of September 30, 2014 and June 30, 2014, respectively.
8
Net Loss Per Share of Common Stock
The Company has adopted ASC Topic 260, "Earnings per Share," ("EPS") which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.
The following table sets forth the computation of basic earnings per share:
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Three Months Ended September 30, 2014
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Three Months Ended September 30, 2013
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Net loss
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$
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(7,548
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)
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$
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(6,000
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)
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Weighted average common shares issued and
outstanding (Basic)
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35,000,020
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25,000,000
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Net loss per share, Basic
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$
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(0.00
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)
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$
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(0.00
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)
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The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding.
Share-based Expenses
ASC 718 "Compensation – Stock Compensation" prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).
The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, "Equity – Based Payments to Non-Employees." Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date.
There were no share-based expenses for the period ending September 30, 2014.
9
Deferred Income Taxes and Valuation Allowance
The Company accounts for income taxes under ASC 740 "Income Taxes." Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. No deferred tax assets or liabilities were recognized as of September 30, 2014.
Concentrations of Credit Risk
The Company's financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company's management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.
Financial Instruments
The Company follows ASC 820, "Fair Value Measurements and Disclosures", which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
Level 1
Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
Level 2
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.
Level 3
Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.
10
Revenue Recognition
The Company will recognize revenue from the sale of products and services in accordance with ASC 605,"Revenue Recognition." No revenue has been recognized since inception. However, the Company will recognize revenue only when all of the following criteria have been met:
Related Parties
The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. Related party transactions for the year ended June 30, 2013 totaled $26,313 and was comprised of a stock issuance for cash of 25,000 and 1,313 in cash advances. There were no related party transactions for the three months ended September 30, 2014.
Commitments and Contingencies
The Company follows ASC 450-20, Loss Contingencies, to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no commitments or contingencies as of September 30, 2014.
Recent Accounting Pronouncements
In June 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-10, which eliminated certain financial reporting requirements of companies previously identified as "Development Stage Entities" (Topic 915). The amendments in this ASU simplify accounting guidance by removing all incremental financial reporting requirements for development stage entities. The amendments also reduce data maintenance and, for those entities subject to audit, audit costs by eliminating the requirement for development stage entities to present inception-to-date information in the statements of income, cash flows, and shareholder equity. Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity's financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915. The Company has adopted this standard and future filings will reflect the removal of development stage reporting.
In May 2014, FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. The revenue recognition standard affects all entities that have contracts with customers, except for certain items. The new revenue recognition standard eliminates the transaction-and industry-specific revenue recognition guidance under current GAAP and replaces it with a principle-based approach for determining revenue recognition. Public entities are required to adopt the revenue recognition standard for reporting periods beginning after December 15, 2016, and interim and annual reporting periods thereafter. Early adoption is not permitted for public entities. The Company has reviewed the applicable ASU and due to the absence of revenues believes that there will be no material effect on the financial statements.
11
In June 2014, FASB issued Accounting Standards Update (ASU) No. 2014-12 Compensation — Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. A performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under Accounting Standards Codification (ASC) 718, Compensation — Stock Compensation. As a result, the target is not reflected in the estimation of the award's grant date fair value. Compensation cost would be recognized over the required service period, if it is probable that the performance condition will be achieved. The guidance is effective for annual periods beginning after 15 December 2015 and interim periods within those annual periods. Early adoption is permitted. Management has reviewed the ASU and believes that they currently account for these awards in a manner consistent with the new guidance, therefore there is no anticipation of any effect to the financial statements.
In August 2014, FASB issued Accounting Standards Update (ASU) No. 2014-15 Preparation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. Under generally accepted accounting principles (GAAP), continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity's liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity's liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, Presentation of Financial Statements—Liquidation Basis of Accounting. Even when an entity's liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity's ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in this Update should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company will evaluate the going concern considerations in this ASU, however, at the current period; management does not believe that it has met conditions which would subject these financial statements for additional disclosure.
Management has considered all recent accounting pronouncements issued since the last audit of our financial statements. The Company's management believes that these recent pronouncements will not have a material effect on the Company's financial statements.
NOTE 3 -GOING CONCERN
The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not established an ongoing source of revenues sufficient to cover its operating cost, and requires additional capital to commence its operating plan. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. These factors raise substantial doubt about its ability to continue as a going concern.
In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plan to obtain such resources for the Company include: sales of equity instruments; traditional financing, such as loans; and obtaining capital from management and significant stockholders sufficient to meet its minimal operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans.
12
There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
NOTE 4 - EQUITY
Authorized Stock
The Company has authorized 75,000,000 common shares, both with a par value of $0.001 per share. Each common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholders of the corporation is sought.
Common Shares
On May 24, 2013, the company issued 25,000,000 shares to an officer and director at $.001 per share for $25,000 cash.
From January, 2014 to April, 2014, the company issued 10,000,020 shares to 30 unaffiliated investors at $0.003 per share for $30,000 cash.
Preferred shares
No preferred shares have been authorized or issued.
Stock Options and Warrants
The Company has no stock option plan, warrants or other dilutive securities.
NOTE 5 -PROVISION FOR INCOME TAXES
The Company has not made provision for income taxes for the period April 1, 2013 (date of inception) through September 30, 2014, since the Company has the benefit of net operating losses in these periods.
Due to uncertainties surrounding the Company's ability to generate future taxable income to realize deferred income tax assets arising as a result of net operating losses carried forward, the Company has not recorded any deferred income tax asset as of September 30, 2014. The Company has incurred an operating loss of $7,548 for the period ending September 30, 2014. The net operating losses carryforward will begin to expire in varying amounts from year 2033 subject to its eligibility as determined by respective tax regulating authorities.
The Company is subject to taxation in the United States and certain state jurisdictions.
The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 34% to the net loss before provision for income taxes for the following reasons:
13
|
September 30, 2014
|
June 30,
2014
|
||||||
Income tax expense at statutory rate
|
$
|
(2,566
|
)
|
$
|
(13,145
|
)
|
||
Valuation allowance
|
2,566
|
13,145
|
||||||
Income tax expense per books
|
$
|
-
|
$
|
-
|
Net deferred tax assets consist of the following components as of:
|
September 30, 2014
|
June 30,
2014
|
||||||
NOL Carryover
|
$
|
17,563
|
$
|
14,997
|
||||
Valuation allowance
|
(17,563
|
)
|
(14,997
|
)
|
||||
Net deferred tax asset
|
$
|
-
|
$
|
-
|
NOTE 6 – RELATED PARTY TRANSACTIONS
On May 24, 2013, the company issued 25,000,000 shares of common stock to an officer and director at $.001 per share for $25,000 cash.
The director and officer has advanced funds to meet the Company's cash flow requirement. There is no written or expressed policy for continuation of future advances. The amounts advanced are considered payable upon demand and are non-interest bearing. As of September 30, 2014 the balance due to the director and officer is $1,313.
The Company does not own or lease property or lease office space. The office space used by the Company was arranged by the founder of the Company to use at no charge.
The Company does not have employment contracts with its key employees, including the controlling shareholder who is an officer of the Company.
The amounts and terms of the above transactions may not necessarily be indicative of the amounts and terms that would have been incurred had comparable transactions been entered into with independent third parties.
NOTE 7 – COMMITMENTS AND CONTINGENCIES
The Company has no commitments or contingencies as of September 30, 2014.
NOTE 8 -SUBSEQUENT EVENTS
Management has evaluated subsequent events through the date these financial statements were available to be issued. Based on our evaluation no events have occurred that require disclosure.
14
Forward-Looking Statements
Except for historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties, including, among other things, statements regarding our business strategy, future revenues and anticipated costs and expenses. Such forward-looking statements include, among others, those statements including the words "expects," "anticipates," "intends," "believes" and similar language. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed herein as well as in the "Description of Business – Risk Factors" section in our Form S-1 Amendment No. 3, as filed on November 27, 2013. You should carefully review the risks described in our Prospectus and in other documents we file from time to time with the Securities and Exchange Commission. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. We undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or circumstances after the date of this document.
Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements.
All references in this Form 10-Q to the "Company," "Aceway," "we," "us," or "our" are to Aceway Corp.
Corporate Overview
We were incorporated under the laws of the state of Nevada on April 1, 2013 and intend to engage in the distribution of electronic equipment throughout South America. Our fiscal year end is June 30. Our business address is Ave. Aquilino De La Guardia y Calle 47, Ocean Business Plaza Building, Suite 1604, Panama City, Panama. The address of our agent for service in Nevada and registered corporate office is c/o Corp 95, LLC, 2620 Regatta Dr., Suite 102, Las Vegas, NV 89128. Our telephone number is 1-888-475-4489.
We intend to import and market Chinese produced electronic accessories into the South American market via our website: www.shopaceway.com. We anticipate that these products will be sold directly to end users through our website, but we may also develop a distribution network to provide our products to retailers. We anticipate initially offering our products in Panama and Costa Rica.
Results of Operations
The following table provides selected financial data about our company for the period ended September 30, 2014 and the year ended June 30, 2014.
Balance Sheet Date
|
September 30, 2014
|
June 30, 2014
|
||||||
|
||||||||
Cash
|
$
|
6,472
|
$
|
18,705
|
||||
Total Assets
|
$
|
6,472
|
$
|
18,705
|
||||
Total Liabilities
|
$
|
3,128
|
$
|
7,813
|
||||
Stockholders' Equity
|
$
|
3,334
|
$
|
10,892
|
Our decrease in cash of $12,223 can be attributed to ongoing professional and regulatory fees.
15
The following summary of our results of operations, for the three months ended September 30, 2014 and 2013, should be read in conjunction with our financial statements, as included in this Form 10-Q.
|
Three Months Ended September 31,
|
Three Months Ended September 31,
|
||||||
|
2014
|
2013
|
||||||
Revenue
|
$
|
-
|
$
|
-
|
||||
Operating Expenses
|
||||||||
Selling, general and administrative
|
33
|
2,942
|
||||||
Professional fees
|
7,515
|
3,058
|
||||||
Total Operating expenses
|
7,548
|
6,000
|
||||||
Operating loss
|
(7,548
|
)
|
(6,000
|
)
|
||||
Provision for income tax
|
-
|
-
|
||||||
Net Loss
|
$
|
(7,548
|
)
|
$
|
(6,000
|
)
|
We have generated no revenues since inception on April 1, 2013 and have a net loss of $51,656 through September 30, 2014.
Three months ending September 30, 2014 and 2013:
For the three months ended September 30, 2014 and 2013, we incurred $33 and $2,942 in general and administrative expenses and $7,515 and 3,058 in professional fees, resulting in an operating and net loss of $7,548 and 6,000, respectively.
Liquidity and Capital Resources
To meet our need for cash we raised money from our Offering. On December 6, 2013, the Company's Registration Statement on Form S-1 was declared effective, which the Company sought to raise $60,000 under the Offering. We sold 10,000,020 at $0.003 per share for $30,000 cash. To date we have not developed our business and principal plan of operations and thus our expenses have been primarily for professional fees related to our registration statement and ongoing regulatory expenses.
Currently we do not have sufficient capital to fund our business development for the next 12 months. We anticipate that we will need $30,000 to fund the next 12 months of our operations. If we are unable to meet our needs for cash from either the money that we raise from future financings, or possible alternative sources, then we may be unable to continue, develop, or expand our operations. We do not currently have any plans to raise additional funds. Since the Company has no such arrangements or plans currently in effect, its inability to raise funds for the above purposes will have a severe negative impact on its ability to remain a viable company.
16
Working Capital
As at September 30, 2014
|
As at June 30, 2014
|
(Decrease)/Increase
|
||||||||||
Current Assets
|
$
|
6,472
|
$
|
18,705
|
$
|
(12,233
|
)
|
|||||
Current Liabilities
|
3,128
|
7,813
|
(4,685
|
)
|
||||||||
Working Capital
|
$
|
3,344
|
$
|
10,892
|
$
|
(7,548
|
)
|
Cash Flows
|
For The Three Months Ended September 30,
|
For The Three Months Ended September 30,
|
||||||
|
2014
|
2014
|
||||||
|
||||||||
Cash Flows provided by (used in) Operating Activities
|
$
|
(12,233
|
)
|
$
|
(6,250
|
)
|
||
Cash Flows used in Investing Activities
|
-
|
-
|
||||||
Cash Flows from Financing Activities
|
-
|
-
|
||||||
Net Increase (Decrease) in Cash During Period
|
$
|
(12,233
|
)
|
$
|
(6,250
|
)
|
As at September 30, 2014, our company's cash balance and total assets was $6,472 compared to $18,705 as at June 30, 2014. The decrease in cash and total assets was primarily due to ongoing professional fees and regulatory expenses.
As at September 30, 2014, our company had total liabilities of $3,128 compared with total liabilities of $7,813 as at June 30, 2014.
As at September 30, 2014, our company had working capital of $3,344 compared with a working capital of $10,892 as at June 30, 2014.
Cash Flow from Operating Activities
During the three months ended September 30, 2014, our company used $12,233 in cash from operating activities. The cash used from operating activities was attributed to professional fees and regulatory fees.
17
Cash Flow from Investing Activities
The company did not use any funds for investing activities in the three months ended September 30, 2014.
Cash Flow from Financing Activities
During the three months ended September 30, 2014, our company did not receive and funds financing activities.
We had no material commitments for capital expenditures as of September 30, 2014 and June 30, 2014.
We have no known demands or commitments, and we are not aware of any events or uncertainties as of September 30, 2014 that will result in or that are reasonably likely to materially increase or decrease our current liquidity.
Going Concern
Our auditors have issued a going concern opinion. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay for our expenses. This is because we have not generated any revenues and no sales are yet possible. There is no assurance we will ever reach this point. Accordingly, we must raise sufficient capital from sources. Our only other source for cash at this time is investment by our sole director and officer. We must raise cash to stay in business. In response to these problems, management intends to raise additional funds through public or private placement offerings. At this time, however, the Company does not have plans or intentions to raise additional funds by way of the sale of additional securities, other than pursuant to our current Offering.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.
Critical Accounting Policies and Estimates
We prepare our financial statements in conformity with GAAP, which requires management to make certain estimates and apply judgments. We base our estimates and judgments on historical experience, current trends and other factors that management believes to be important at the time the condensed consolidated financial statements are prepared. On a regular basis, we review our accounting policies and how they are applied and disclosed in our condensed consolidated financial statements.
While we believe that the historical experience, current trends and other factors considered support the preparation of our condensed consolidated financial statements in conformity with GAAP, actual results could differ from our estimates and such differences could be material.
18
As a "smaller reporting company", we are not required to provide the information required by this Item.
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 president (our principal executive officer, principal financial officer and principle accounting officer) to allow for timely decisions regarding required disclosure.
As of the end of the quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our president (our principal executive officer, principal financial officer and principle accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our president (our principal executive officer, principal financial officer and principle accounting officer) concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this quarterly report.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal controls over financial reporting that occurred during the quarter ended September 30, 2014, that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.
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 any of our directors, officers or affiliates, or any registered beneficial shareholder, is an adverse party or has a material interest adverse to our interest.
As a "smaller reporting company", we are not required to provide the information required by this Item.
We did not issue unregistered equity securities during the quarter ended September 30, 2014.
None.
Not applicable.
None.
19
The following exhibits are included as part of this report:
Exhibit No. Description
31.1 | Rule 13(a)-14(a)/15(d)-14(a) Certification of Principal Executive and Financial Officer |
32.1 Rule 1350 Certification of Principal Executive and Financial Officer
101.INS* XBRL Instance
101.SCH* XBRL Taxonomy Extension Schema
101.CAL* XBRL Taxonomy Extension Calculations
101.DEF* XBRL Taxonomy Extension Definitions
101.LAB* XBRL Taxonomy Extension Labels
101.PRE* XBRL Taxonomy Extension Presentation
* XBRL Information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
20
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
ACEWAY CORP.
|
|
(Registrant)
|
|
|
|
|
Dated: November 12, 2014
|
/s/ Armando Espinoza
|
|
Armando Espinoza
|
|
President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director
|
|
(Principal Executive, Financial, and Accounting Officer)
|
|
|