Attached files

file filename
EX-31.1 - EXHIBIT 31.1 SECTION 302 CERTIFICATION - BLOCKHOLD CAPITAL CORPf10q093015_ex31z1.htm
EX-32.1 - EXHIBIT 32.1 SECTION 906 CERTIFICATION - BLOCKHOLD CAPITAL CORPf10q093015_ex32z1.htm
EX-31.2 - EXHIBIT 31.2 SECTION 302 CERTIFICATION - BLOCKHOLD CAPITAL CORPf10q093015_ex31z2.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: September 30, 2015

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: 000-55286


MOMS ONLINE, INC.

(Exact name of registrant as specified in its Charter)


Wyoming

46-3856798

(State or other Jurisdiction of Incorporation or organization)

(I.R.S. Employer Identification No.)


1828 Broadway, 2nd Floor, Suite C

Santa Monica, California 90404

(Address of Principal Executive Offices)


(813) 503-7584

(Registrant’s Telephone Number, including area code)


Indicate by check mark whether the Registrant (1) has 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. (1) 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      . The Company has no corporate Web site.


Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company:


Large accelerated filer

      .

Accelerated filer

      .

Non-accelerated filer

      .

Smaller reporting company

  X .

(Do not check if a smaller reporting company)

 

 


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


Applicable Only to Registrants Involved in Bankruptcy Proceedings During the Preceding Five Years


Not applicable.

Outstanding Shares


At November 3, 2015 there were 4,276,995 shares of the Registrant's Common Stock.







MOMS ONLINE, INC.

TABLE OF CONTENTS


 

 

 

 

 

Page

PART I. FINANCIAL INFORMATION

3

 

 

Item 1. Financial Statements

3

 

 

Unaudited Balance Sheets, as of September 30, 2015 and December 31, 2014

3

 

 

Unaudited Statements of Operations, for the Three and Nine Month Periods Ended September 30, 2015 and 2014

4

 

 

Unaudited Statements of Cash Flows, for the Nine Month Periods Ended September 30, 2015 and 2014

5

 

 

Notes to Unaudited Financial Statements

6

 

 

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

8

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risks

9

 

 

Item 4. Controls and Procedures

9

 

 

PART II. OTHER INFORMATION

10

 

 

SIGNATURES

11











2




PART I. FINANCIAL INFORMATION


ITEM 1. Financial Statements


MOMS ONLINE, INC.

BALANCE SHEETS

(UNAUDITED)


 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

 

 

2015

 

2014

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

 Cash

$

8,354

$

99

 

Total current assets

 

8,354

 

99

 

Intangible assets

 

 

 

 

 

 Moms Corner website

 

86,486

 

86,486

 

 Less: Accumulated amortization

 

(21,622)

 

-

 

Total Intangible assets

 

64,864

 

86,485

 

Total Assets

$

73,218

$

86,585

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

$

15,018

$

9,765

 

 

Due to related parties

 

25,000

 

-

 

 

Due to parent

 

162,723

 

94,185

 

Total Current Liabilities

 

202,741

 

103,950

 

Stockholders’ Deficit

 

 

 

 

 

 

Common Stock, $.001 par value, 75,000,000

 

 

 

 

 

 

   shares authorized, 4,276,995 and 4,265,995 issued

 

 

 

 

 

 

   and outstanding

 

4,277

 

4,266

 

 

Additional paid-in capital

 

329,897

 

301,762

 

 

Accumulated deficit

 

(463,697)

 

(323,393)

 

 

Total Stockholders’ Deficit

 

(129,523)

 

(17,365)

 

Total Liabilities and Stockholders’ Deficit

$

73,218

$

86,585

 

 

 

 

 

 

 


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









3




MOMS ONLINE, INC.

STATEMENTS OF OPERATIONS

(UNAUDITED)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30, 2015

 

Three Months Ended

 September 30, 2014

 

Nine Months

Ended

 September 30, 2015

 

Nine Months

Ended

 September 30, 2014

Operating Expenses

 

 

 

 

 

 

 

 

Platform lease

$

12,500

$

12,500

$

37,500

$

37,500

Website development and maintenance

 

10,851

 

9,638

 

19,495

 

12,207

Selling, general and administrative

 

9,200

 

2,196

 

29,201

 

6,519

Legal and professional

 

7,869

 

8,795

 

31,271

 

32,795

Amortization expense

 

7,207

 

-

 

21,622

 

-

Total operating expense

 

47,627

 

33,129

 

139,089

 

89,021

 

 

 

 

 

 

 

 

 

Operating loss

 

(47,627)

 

(33,129)

 

(139,089)

 

(89,021)

 

 

 

 

 

 

 

 

 

Other Expense

 

 

 

 

 

 

 

 

Interest expense

 

(589)

 

(155)

 

(1,215)

 

(634)

Total other expense

 

(589)

 

(155)

 

(1,215)

 

(634)

 

 

 

 

 

 

 

 

 

Net loss

$

(48,216)

$

(33,284)

$

(140,304)

$

(89,655)

 

 

 

 

 

 

 

 

 

Net loss per share – basic and diluted

$

(0.01)

$

(0.01)

$

(0.03)

$

(0.02)

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding - basic and diluted

 


4,271,060

 

4,265,995

 


4,269,476

 

4,265,995


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










4




MOMS ONLINE, INC.

STATEMENTS OF CASH FLOWS

(UNAUDITED)


 

 

 

 

 

 

 

 

 

 

 

 

Nine Months

Ended

 September 30, 2015

 

Nine Months

Ended

 September 30, 2014

 

 

 

 

 

 Cash Flows from Operating Activities:

 

 

 

 

 Net loss

$

(140,304)

$

(89,655)

 

 

 

 

 

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 Expenses paid by related party

 

18,646

 

58,437

 Amortization

 

21,622

 

-

 Changes in operating assets and liabilities:

 

 

 

 

 Accounts payable

 

5,253

 

5,460

 Due to related parties

 

25,000

 

1,031

 Net cash used in operating activities

 

(69,783)

 

(24,727)

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 Investment in website

 

-

 

(9,826)

 Net cash used in investing activities

 

-

 

(9,826)

 

 

 

 

 

 Cash Flows from Financing activities:

 

 

 

 

 Common stock sold for cash

 

9,500

 

-

 Advances from related party

 

68,538

 

34,553

 Net cash provided by financing activities

 

78,038

 

34,553

 

 

 

 

 

 Net increase in cash and cash equivalents

 

8,225

 

-

 Cash, beginning of period

 

99

 

-

 Cash, end of period

$

8,354

$

-

 

 

 

 

 

 Cash paid during the period for:

 

 

 

 

 Income taxes

$

-

$

-

 Interest

$

1,215

$

634


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









5




MOMS ONLINE, INC.

NOTES TO UNAUDITED FINANCIAL STATEMENTS


NOTE 1: BASIS OF PRESENTATION


Basis of Presentation


The unaudited interim financial statements of Moms Online, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information in accordance with Securities and Exchange Commission (SEC) Regulation S-X rule 8-03. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited interim financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position and the results of operations and cash flows for the interim periods presented herein. The financial data and other information disclosed in these notes to the interim financial statements related to the period are unaudited. The results for the three and nine month periods ended September 30, 2015 are not necessarily indicative of the results to be expected for any subsequent quarters or for the entire year ending December 31, 2015. These financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2014.


Reclassifications


Certain prior year amounts have been reclassified to conform with the current year presentation.


NOTE 2: GOING CONCERN


As shown in the accompanying financial statements, we have incurred losses in each year since inception and have an accumulated deficit of $463,697 and cash of only $8,354 as of September 30, 2015. These conditions raise substantial doubt as to our ability to continue as a going concern. In response to these conditions, we may raise additional capital through the sale of equity securities, through an offering of debt securities or through borrowings from financial institutions or individuals. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.


NOTE 3: RELATED PARTY TRANSACTIONS AND RELATIONSHIPS


During the nine months ended September 30, 2015 and 2014, ICE paid certain expenses for and on behalf of the Company of $68,538 and $34,553 respectively, which were accounted for as amounts due to parent and are due on demand. As of September 30, 2015 and December 31, 2014, the outstanding amounts due to parent were $162,723 and $94,185, respectively.


In addition, Social Quotient Inc., the company’s affiliate (sister corp.) paid $18,646 and $58,437 of expenses, respectively, for and in behalf of the Company, which were accounted for as contributions in additional paid-in capital.


WB Capital Inc., an affiliated company controlled by the Company’s two largest individual shareholders, provides potential Merger/Acquisition, strategic planning, and investor relations services for the Company through travel, communication and meetings with potential investors and/or suitors. As of September 30, 2015, the Company had a balance payable to WB Capital of $22,500.


The Company’s acting Chief Financial Officer, Scott E. Lybbert, is an independent contractor, minority shareholder and a Director. The Company paid $8,750 and $11,250 to Mr. Lybbert for the nine months ended September 30, 2015 and 2014, respectively. As of September 30, 2015, the Company had a balance payable to Mr. Lybbert of $2,500.


NOTE 4: WEBSITE AND INTANGIBLE ASSETS


Since inception, most of the Company’s resources have been focused on creating its business model and related website. Certain costs incurred in development of our website were capitalized with a total of $86,486 allocated to our website development by December 31, 2014. The Company capitalized no cost ($0) for the nine months ended September 30, 2015. The Company began amortizing its capitalized website costs over a three year period, beginning January 1, 2015 since development had been completed. Amortization expense for the nine months ended September 30, 2015 was $21,622.



6




NOTE 5: EQUITY


Common stock


The authorized capital stock of the Company consists of 75,000,000 shares of Common stock, par value $.001 per share, of which 4,276,995 were outstanding as of September 30, 2015.


The holders of Common Stock are entitled to one vote per share on each matter submitted to a vote at any rights and, therefore, a majority of the shares of outstanding Common Stock will be able to elect the entire board of directors and, if they do so, minority shareholders would not be able to elect any persons to the board of directors. Moms Online’s bylaws provide that a majority of the issued and outstanding shares of Moms Online constitutes a quorum for shareholders’ meetings.


Shareholders of Moms Online have no preemptive rights to acquire additional shares of Common Stock or other securities. The Common Stock is not subject to redemption and carries no subscription or conversion rights. In the event of liquidation of Moms Online, the shares of Common Stock are entitled to share equally in corporate assets after satisfaction of all liabilities.


Holders of Common Stock are entitled to receive such dividends, as the board of directors may from time to time declare out of funds legally available for the payment of dividends. Moms Online seeks growth and expansion of its business through the reinvestment of profits, if any, and does not anticipate that we will pay dividends in the foreseeable future.


On February 24, 2015 and September 30, 2015 the Company sold 5,000 shares and 6,000 shares of the Company’s common stock to an existing shareholder at $1.00 and $.75 per share, respectively, for aggregate cash proceeds of $9,500.









7




ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONS


The following discussion should be read in conjunction with the Consolidated Financial Statements and notes thereto. See "ITEM 1 FINANCIAL STATEMENTS".


Management's Discussion and Analysis:


Certain statements in this Report constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, among others, uncertainties relating to general economic and business conditions; industry trends; changes in demand for our products and services; uncertainties relating to customer plans and commitments and the timing of orders received from customers; announcements or changes in our pricing policies or that of our competitors; unanticipated delays in the development, market acceptance or installation of our products and services; changes in government regulations; availability of management and other key personnel; availability, terms and deployment of capital; relationships with third-party equipment suppliers; and worldwide political stability and economic growth. The words “believe,” “expect,” “anticipate,” “intend” and “plan” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made


Results of Operations


Three months ended September 30, 2015


Net loss for the three months ended September 30, 2015 increased $14,932, or 44.9%, over the $33,284 net loss for the three months ended September 30, 2014 due primarily to the following: a) a net increase in Selling, general and administrative costs of $7,004 or 318.9%, due mostly to an increase in amounts due to WB Capital Inc., a related party, of $7,500 or 100%, for business advisory and management services, over the $2,196 Selling, general and administrative costs incurred in the third quarter of 2014; and b) an increase in amortization expense of $7,207 or 100% versus no amortization expense incurred for the three months ended September 30, 2014.


Nine months ended September 30, 2015


Net loss for the nine months ended September 30, 2015 increased $50,649, or 56.5%, over the $89,655 net loss for the nine months ended September 30, 2014 due primarily to the following: a) an increase in Website development and maintenance of $7,288, or 59.7%, over the $12,207 incurred in the nine months ended September 30, 2014, due mostly to an increase of $6,000, or 100.0 %, of contracted development ; b) a net increase in Selling, general and administrative costs of $22,682 or 347.9%, over the $6,519 incurred over the same period in 2014, due mostly to an increase in amounts due to WB Capital Inc., a related party, of $22,500 or 100%, for business advisory and management services; and c) an increase in amortization expense of $21,622, or 100%, versus no amortization expense incurred for the nine months ended September 30, 2014.


Liquidity and Capital Resources:


At its current level of operations, the Company will need to raise additional capital during the next fiscal year. The Company has a nominal amount of cash and has depended upon ICE (its parent company) and Social Quotient (its sister company) for funding. It is management’s intent to have the Company break away from its dependencies and to be self-sufficient. The Company sold $5,000 of common stock on February 24, 2015 at $1.00 per share and $4,500 of common stock on September 30, 2015 at $.75 per share, and would need to continue to sell stock in order meet its needs for the year ended December 31, 2015.


The Company spent and capitalized $86,486 to its website through December 31, 2014. No costs were capitalized in the three or nine month periods ended September 30, 2015.


CURRENT PLAN OF OPERATIONS


The Company plans to sell stock to raise sufficient capital to begin marketing the website, grow its user base and website traffic in order to begin generating revenues. Additional personnel will be added and managed as they become affordable.


Management encourages its shareholders to communicate directly with the Company for its typical investor relations, including address changes and for general corporate information by calling or writing to the Company at its administrative offices or by posting a message to Management also encourages shareholders to keep their address current with the Company.



8




DISCLOSURE REGARDING FORWARD LOOKING STATEMENTS


This annual report includes forward looking statements which involve risks and uncertainties. Such statements can be identified by the use of forward-looking language such as "will likely result", "may", "are expected to", "is anticipated", "estimate", "believes", "projected", or similar words. All statements, other than statements of historical fact included in this section, are forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company's actual results could differ materially from those anticipated in any such forward-looking statements as a result of various risks, including, without limitation, the dependence on a single line of business; the failure to close proposed financing; rapid technological change; inability to attract and retain key personnel; the potential for significant fluctuations in operating results; the loss of a major customer; and the potential volatility of the Company's common stock.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


The company operates minimally and has no meaningful assets subject to market risk. Therefore, this item is not applicable given the company’s current operations.


ITEM 4. CONTROLS AND PROCEDURES


Disclosure Controls and Procedures


As of the end of the period covered by this quarterly report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”)), and management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures, which, by their nature, can provide only reasonable assurance regarding management’s control objectives. You should note that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and we cannot assure you that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote. Based upon the foregoing evaluation, our Chief Executive Officer and the Chief Financial Officer concluded that our disclosure controls and procedures over financial reporting were not effective. Our management identified the following material weaknesses in our internal control over financial reporting, which are indicative of many small companies with small staff:


We do not yet have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act as of the year ended December 31, 2014. Management evaluated the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness, and


We do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our size and nature, the segregation of all conflicting duties has not always been possible or economically feasible. To the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have sufficient segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.


Management will seek to provide sufficient resources toward the proper mitigation of these material control weaknesses.


Internal Control Over Financial Reporting


There were no changes in internal control over financial reporting that occurred during the third quarter of 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



9




PART II. OTHER INFORMATION


ITEM 1. Legal Proceedings


In the normal course of business, there may be various legal actions and proceedings pending which seek damages against the Company. As of September 30, 2015 there were no claims asserted or threatened against the Company.


ITEM 1A. Risk Factors


This item is not required of smaller reporting companies.


ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds


The company sold 6,000 shares of its common stock to an existing shareholder for $4,500 on September 30, 2015.


ITEM 3. Defaults on Senior Securities


None; not applicable.


ITEM 4. Mine Safety Disclosures


None; not applicable.


ITEM 5. Other Information.


None.


ITEM 6. Exhibits


Exhibit Number

Description

31.1

302 Certification

31.2

302 Certification

32.1

Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, Section 906 of the Sarbanes-Oxley Act of 2002








10




SIGNATURES


In accordance with the requirements of the Exchange Act, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Date: November 3, 2015


MOMS ONLINE, INC.

(Registrant)


By /s/ Scott Emerson Lybbert

     Scott Emerson Lybbert

     Principal Financial Officer








11