Attached files

file filename
EXCEL - IDEA: XBRL DOCUMENT - Digital Development Partners, Inc.Financial_Report.xls
EX-31.2 - EXHIBIT 31.2 - Digital Development Partners, Inc.v410441_ex31-2.htm
EX-32 - EXHIBIT 32 - Digital Development Partners, Inc.v410441_ex32.htm
EX-31.1 - EXHIBIT 31.1 - Digital Development Partners, Inc.v410441_ex31-1.htm

 

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 March 31, 2015

 

o Transition Report Under Section 13 or 15(d) of the Securities Exchange Act Of 1934

 

For the transition period from __________ to __________

 

Commission File Number:    000-52828

 

DIGITAL DEVELOPMENT PARTNERS, INC.

(Exact name of registrant as specified in its charter)

 

NEVADA   98-0521119
(State or other jurisdiction of
incorporation or organization)
  (I.R.S. Employer Identification No.)

 

17800 Castleton St., Suite 300

City of Industry, CA 91748
(Address of principal executive offices, including Zip Code)

 

(626) 581-3335

(Issuer’s telephone number, including area code)

 

(Former name or former address if changed since last report)

 

Check whether the issuer (1) has filed all reports required to be filed by section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes x    No ¨

 

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 small reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ¨ Accelerated filer ¨
Non-accelerated filer ¨ Smaller reporting company x

 

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

 

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 85,970,665 shares of common stock as of April 30, 2015.

 

 
 

 

Digital Development Partners, Inc.
Balance Sheets
as of

 

   March 31,   December 31, 
   2015 (Unaudited)   2014 
         
ASSETS          
Current Assets          
Cash   15,825    22,628 
           
Total Assets  $15,825   $22,628 
           
LIABILITIES AND STOCKHOLDERS' DEFICIT          
Current Liabilities          
Accounts Payable   95,485    91,594 
           
Loan Payable – Related Party   520,000    500,000 
           
Total Liabilities   615,485    591,594 
           
Stockholders' Deficit          
Common Stock, $0.001 par value; authorized 225,000,000 shares; issued and outstanding 85,970,665 shares as of March 31, 2015,   85,970,665 shares as of December 31, 2014   85,971    85,971 
Additional Paid-In Capital   7,488,946    7,488,946 
Accumulated Deficit   (8,174,577)   (8,143,883)
           
Total Stockholders' Deficit   (599,660)   (568,966)
           
Total Liabilities and Stockholders' Deficit  $15,825   $22,628 

 

The accompanying notes are an integral part of these unaudited financial statements.

 

F - 1
 

 

DIGITAL DEVELOPMENT PARTNERS, INC.
Statements of Operations
 

 

   For the 
   Three Months Ended 
   March 31 (Unaudited), 
   2015   2014 
         
Operating Expenses   24,429    21,611 
Loss from Operations   (24,429)   (21,611)
           
Interest Expense   6,265    5,261 
           
Net Loss   (30,694)   (26,872)
           
Loss Per Common Share:          
Basic and Diluted  $(0.00)  $(0.00)
           
Weighted Average Shares Outstanding,          
Basic and Diluted:   85,970,665    85,970,665 

 

The accompanying notes are an integral part of these unaudited financial statements.

 

F - 2
 

 

DIGITAL DEVELOPMENT PARTNERS, INC.
Statements of Cash Flows

 

   For the 
   Three Months Ended 
   March 31 (Unaudited), 
   2015   2014 
Cash flows from operating activities:          
Net loss  $(30,694)  $(26,872)
Adjustments to reconcile net loss to net cash used by operating activities:          
Change in operating assets and liabilities:          
Accounts payable, accrued liabilities   3,891    305 
           
Net cash provided (used) by operating activities   (26,803)   (26,567)
           
Cash flows from financing activities:          
Proceeds of loan payable from related party   20,000    20,000 
           
Net cash provided by financing activities   20,000    20,000 
           
Net increase (decrease) in cash   (6,803)   (6,567)
           
Cash, beginning of the period   22,628    24,184 
           
Cash, end of the period  $15,825   $17,617 
           
Supplemental cash flow disclosure:          
Interest paid  $-   $- 
Taxes paid  $-   $- 

 

The accompanying notes are an integral part of these unaudited financial statements.

 

F - 3
 

 

DIGITAL DEVELOPMENT PARTNERS INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

 

1.Basis of Presentation and Nature of Operations

 

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required by GAAP for complete annual financial statement presentation.

 

These condensed financial statements as of and for the three months ended March 31, 2015 and 2014, reflect all adjustments which, in the opinion of management, are necessary to fairly present the Company’s financial position and the results of its operations for the periods presented, in accordance with the accounting principles generally accepted in the United States of America. Operating results for the three months period ended March 31, 2015, are not necessarily indicative of the results to be expected for other interim periods or for the full year ending December 31, 2015. These unaudited condensed financial statements should be read in conjunction with the financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the Securities Exchange Commission.

 

2.Going Concern

 

The Company’s financial statements are prepared using generally accepted accounting principles 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 yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The Company also has a working capital deficit as of March 31, 2015. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

The Company’s activities will necessitate significant uses of working capital beyond 2015. Additionally, the Company’s capital requirements will depend on many factors, including the success of the Company’s researching for new markets. The Company plans to continue financing its operations with cash received from financing activities, more specifically from related party loans.

 

While the Company strongly believes that its capital resources will be sufficient in the near term, there is no assurance that the Company’s activities will generate sufficient revenues to sustain its operations without additional capital or if additional capital is needed, that such funds, if available, will be obtainable on terms satisfactory to the Company.

 

F - 4
 

 

3. Related Party Transactions

 

   March 31,   December 31, 
   2015   2014 
   (Unaudited)     
           
Loan payable to related party – EFT Holdings, Inc.  $520,000   $500,000 

 

A promissory note for $500,000 was issued May 13, 2010 to EFT   A series of advances was received from EFT during the fiscal year ended December 31, 2011 totaling $300,000. The note bears annual interest of 5%, requires no monthly payments, and matured November 13, 2010. The note was extended indefinitely. The note was paid down to $300,000 in January, 2011. A further $40,000 was advanced during 2012, increasing the loan balance to 340,000 as of December 31, 2012.  During 2013 a further $80,000 was advanced, which bears interest at 5% per year and is due and payable in one year, increasing the loan balance to $420,000.  During 2014 a further $80,000 was advanced, which bears interest at 5% per year and is due and payable in one year, increasing the loan balance to $500,000. During the three months ended March 31, 2015, an additional $20,000 was advanced, increasing the loan balance to $520,000 at March 31, 2015 under the same terms and conditions.

 

F - 5
 

 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation

 

The Company was incorporated in December 2006.

 

In January 2007, the Company leased ten mining claims from an unrelated third party. These claims were located in Piute County, Utah. The mining lease was for a twenty-year term and required the Company to pay a royalty to the lessor equal to 2.5% of the net smelter returns from the sale of any minerals extracted from the claims. Minimum royalty payments of $4,500 were also required each year during the term of the lease.

 

On November 1, 2008, the mining lease was terminated by the mutual agreement of the Company and the lessor.

 

Between November 2008 and August 2009 the Company was inactive.

 

On August 3, 2009, the Company acquired all of the outstanding shares of 4gDeals for 15,495,000 shares of the Company’s common stock.

 

On December 18, 2009, 4gDeal’s articles of incorporation were amended to change the name of 4gDeals to YuDeal.

 

In February 2010, the Company determined that its existing capital structure would impair its ability to raise the capital required to further the development of YuDeal’s network. Accordingly, the Company adopted a reorganization plan which:

 

·involved the distribution of its shares in YuDeal to the Company’s shareholders; and

 

·the acquisition of new line of technology which has the prospect of being the core of a commercially viable business.

 

Consistent with its reorganization plan, on February 18, 2010 the Company’s directors approved an agreement between the Company and EFT Holdings, Inc., now named EFT Holdings, Inc., (“EFT”), whereby EFT agreed to assign its worldwide distribution and servicing rights to a product known as the “EFT-Phone” in exchange for 79,265,000 shares of the Company’s common stock.

 

EFT markets its products through a direct sales organization.  Once a customer of EFT’s makes a minimum purchase of $600 (plus $60 for shipping and handling fees), the customer becomes an “affiliate”.

 

The EFT-Phone is a cell phone which uses the Android Operating System. The phone is manufactured by an unrelated third party. The EFT-Phone has an application that allows EFT’s affiliate base to access all of their back office sites including their Funds Management Account where the affiliate is able to deposit, withdraw and transfer money to another EFT account or to another EFT Affiliate at no cost for the transfer. The EFT-Phone has educational applications and PowerPoint presentation capability for training new affiliates anywhere in the world.

 

6
 

 

The worldwide distribution and servicing rights to the EFT-Phone include the right to sell the EFT-Phone to EFT’s affiliates and others. Servicing includes the collection of service fees for all EFT-Phones worldwide, including monthly fees, usage fees, as well as call forwarding, call waiting, text messaging and video fees. The Company also acquired the rights to distribute all EFT-Phone accessories.

 

Results of Operations

 

The Company did not receive any orders for the EFT phone during the year ended December 31, 2014 or the three months ended March 31, 2015. The Company has been advised by EFT that due to a significant drop in demand for the EFT phone, EFT has not placed any new orders with the Company. It is the Company’s understanding that EFT has inventory previously purchased from the Company and until sales increase, EFT will not be placing any new orders from the Company. The Company is very concerned regarding this news and is investigating other sources of revenue to mitigate the significant drop in revenue.

 

Other than the foregoing, the Company does not know of any trends, events or uncertainties that will have, or are reasonably expected to have, a material impact on sales, revenues, expenses or results of operations.

 

Liquidity and Capital Resources

 

The Company does not have any firm commitments from any person to provide the Company with any additional capital. While the Company strongly believes that its capital resources will be sufficient in the near term, there is no assurance that the Company’s activities will generate sufficient revenues to sustain its operations without additional capital or if additional capital is needed, that such funds, if available, will be obtainable on terms satisfactory to the Company.

 

Item 4. Controls and Procedures.

 

(a)         The Company maintains a system of controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended (“1934 Act”), is recorded, processed, summarized and reported, within time periods specified in the SEC's rules and forms and to ensure that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act, is accumulated and communicated to the Company’s management, including its Principal Executive and Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of March 31, 2015, the Company’s Principal Executive and Financial Officer evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, the Principal Executive and Financial Officer concluded that the Company’s disclosure controls and procedures were effective.

 

(b)         Changes in Internal Controls. There were no changes in the Company’s internal control over financial reporting during the quarter ended March 31, 2015, that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

 

7
 

 

PART II

 

Item 6. Exhibits

 

Exhibits  
   
31.1 Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
31.2 Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
32 Certification pursuant to Section 906 of the Sarbanes-Oxley Act.
   
101.INS XBRL Instance Document
   
101.SCH XBRL Taxonomy Extension Schema
   
101.CAL XBRL Taxonomy Extension Calculation Linkbase
   
101.DEF XBRL Taxonomy Extension Definition Linkbase
   
101.LAB XBRL Taxonomy Extension Label Linkbase
   
101.PRE XBRL Taxonomy Extension Presentation Linkbase

 

8
 

 

SIGNATURES

 

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.

 

  DIGITAL DEVELOPMENT PARTNERS, INC.
     
May 15, 2015  By: /s/ Jack Jie Qin
    Jack Jie Qin, Principal Executive Officer
     
  By: /s/ William E. Sluss
    William E. Sluss, Principal Financial and Accounting Officer

 

9