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EX-32.1 - EXHIBIT 32.1 SECTION 906 CERTIFICATION - BCI HOLDING INCf10q033114_ex32z1.htm
EX-31.1 - EXHIBIT 31.1 SECTION 302 CERTIFICATION - BCI HOLDING INCf10q033114_ex31z1.htm


U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


FORM 10-Q

(Mark One)


  X . Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2014


      . Transition Report under Section 13 or 15(d) of the Exchange Act

For the Transition Period from ________to __________


Commission File Number: 333-169960


ASSET PROTECTION OF AMERICA, INC.

(Exact Name of Registrant as Specified in its Charter)


NEVADA

27-3387893

(State of other jurisdiction of

incorporation or organization)

(I.R.S. Employer Identification Number)


9500 W. Flamingo Rd. Suite 205 Las Vegas, NV

89147

(Address of principal executive offices)

(Zip Code)


Registrant's Phone: (800) 581-1522


Bauman Estate Planning, Inc.

(Former name, former address and former fiscal year, if changed since last report)


Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section13 or 15(d) of the Exchange Act of 1934 during the past 12 months (or 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      .   No  X .  .


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

      . (Do not check if a smaller reporting company)

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      . No  X .


As of November 11, 2015, the issuer had 11,548,000 shares of common stock issued and outstanding.







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

Page

 

 

 

 

PART I–FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements

3

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operation

10

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

12

Item 4.

Controls and Procedures

12

 

 

 

 

PART II–OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

 

 

13

Item 1A.

Risk Factors

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

13

Item 3.

Defaults Upon Senior Securities

13

Item 4.

Mine Safety Disclosures

13

Item 5.

Other Information

13

Item 6.

Exhibits

13




2





ITEM 1. FINANCIAL STATEMENTS


Asset Protection of America, Inc.

Condensed Balance Sheets


 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

2014

 

2013

 

 

(unaudited)

 

 

ASSETS

 

$

 

$

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Cash

 

45,106

 

30,889

Accounts receivable

 

-

 

825

Total Current Assets

 

45,106

 

31,714

 Fixed Assets, net

 

5,743

 

-

TOTAL ASSETS

 

50,849

 

31,714

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Accounts payable

 

2,010

 

-

Taxes payable

 

386

 

386

Related party loans

 

1,888

 

2,238

Total Current Liabilities

 

4,284

 

2,624

 

 

 

 

 

Total Liabilities

 

4,284

 

2,624

 

 

 

 

 

STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

Common stock: $0.001 par value, 75,000,000 shares authorized 11,548,000 and 11,130,000 shares issued and outstanding as of March 31, 2014 (unaudited) and December 31, 2013

 

11,483

 

11,130

Additional paid-in capital

 

29,817

 

15,770

Subscription receivable

 

3,250

 

-

Retained earnings

 

2,015

 

2,190

Total Stockholders' Equity

 

46,565

 

29,090

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

50,849

 

31,714


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



3




Asset Protection of America, Inc.

Condensed Statements of Operations (unaudited)


 

 

 

 

 

 

 

 

For Three Months Ended

 

 

 

March 31,

 

 

 

2014

 

2013

 

 

 

$

 

$

 

 

 

 

 

 

 

SERVICE REVENUES

 

6,550

 

28,093

 

Cost of Revenue

 

600

 

-

 

Gross Profit

 

5,950

 

28,093

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

General and administrative

 

5,624

 

13,997

 

Professional fees

 

500

 

1,333

 

Total operating expenses

 

6,124

 

15,330

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

(174)

 

12,763

 

 

 

 

 

 

 

Tax expense

 

-

 

-

 

 

 

 

 

 

 

Net Income (Loss)

 

(174)

 

12,763

 

 

 

 

 

 

 

Net Income (Loss) Per Share - Basic and Diluted

 

(0.00)

*

0.00

*

 

 

 

 

 

 

Weighted Average Shares Outstanding -

 

 

 

 

 

Basic and Diluted

 

11,310,044

 

10,800,000

 

 

 

 

 

 

 

* denotes income (loss) of less than $0.01 per share

 


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



4




Asset Protection of America, Inc.

Condensed Statements of Cash Flows (unaudited)


 

 

 

 

 

 

 

For Three Months Ended

 

 

March 31,

 

 

2014

 

2013

 

 

$

 

$

OPERATING ACTIVITIES

 

 

 

 

Net income (loss)

 

(174)

 

12,763

Adjustments to reconcile net loss to net cash

provided by operating activities:

 

 

 

 

Depreciation

 

428

 

-

Changes in operating assets and liabilities:

 

 

 

 

Decrease / (Increase) in accounts receivable

 

825

 

(7,925)

(Decrease) / Increase in accounts payable

 

2,010

 

(1,599)

Net Cash Provided by Operating Activities

 

3,089

 

3,239

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

Capital expenditures

 

(6,172)

 

-

Net Cash (Used in) Investing Activities

 

(6,172)

 

-

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

Cash from issuance of common stock

 

17,650

 

-

Repayment on related party debt

 

(350)

 

(378)

Net Cash Provided by (Used in) Financing Activities

 

17,300

 

(378)

 

 

 

 

 

Increase in cash

 

14,217

 

2,860

 

 

 

 

 

Cash - Beginning of Period

 

30,889

 

3,598

 

 

 

 

 

Cash - End of Period

 

45,106

 

6,459

 

 

 

 

 

Non Cash Financing and Investing Activities:

 

 

 

 

Supplemental Disclosures:

 

 

 

 

Interest paid

 

-

 

-

Income Taxes Paid

 

-

 

-


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



5




Asset Protection of America, Inc.


NOTES TO CONDENSED UNAUDITED FINANCIAL STATEMENTS

FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2014 AND 2013



NOTE 1 - ORGANIZATION AND BUSINESS OPERATIONS


Asset Protection of America, Inc. (“the Company”, “we”, “us” or “our”) was incorporated in the state of Nevada on August 27, 2010. Prior to March 28, 2014, the Company’s name was Bauman Estate Planning, Inc. The Company engages in the business of estate planning. The Company is a one-stop, full service estate planning and an asset protection company. The Company’s staff of professional, dedicated, experienced, knowledgeable and highly competent personnel are trained and licensed to offer a broad range of estate planning services. The Company can assist their customers from minimizing or eliminating probate and/or federal estate taxes to highly sophisticated estate planning tools. The Company’s fiscal year is December 31.


NOTE 2 - GOING CONCERN


These financial statements have been prepared on a going concern basis, which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has yet to achieve a sustainable, profitable business, resulting in retained earnings of $2,015 as at March 31, 2014, and further losses are anticipated in the development of its business, raising substantial doubt about the Company’s ability to continue as a going concern.  The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from directors or stockholders or through debt or equity financings.


NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES


Accounting Basis


The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting).  The Company has adopted a December 31 fiscal year end.


Interim Financial Statements


The accompanying financial statements have been prepared by the Company without audit in accordance with SEC rules for quarterly reports on form 10-Q. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at March 31, 2014 and 2013.


Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2013 audited financial statements. The results of operations for the periods ended March 31, 2014 and 2013 are not necessarily indicative of the operating results for the full years.


Use of Estimates


The preparation of financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. We regularly evaluate estimates and assumptions related to the useful life and recoverability of long-lived assets and deferred income tax asset valuation allowances. We base our estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by us may differ materially and adversely from our estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.



6




Cash and Cash Equivalents


Cash and cash equivalents include cash on deposit in overnight deposit accounts and investments in money market accounts. At March 31, 2014 and December 31, 2013, we had no cash equivalents.


Accounts Receivable


Accounts receivable are carried at the expected net realizable value. The allowance for doubtful accounts, if deem necessary, is based on management's assessment of the collectability of specific customer accounts and the aging of the accounts receivables. If there were a deterioration of a major customer's creditworthiness, or actual defaults were higher than historical experience, our estimates of the recoverability of the amounts due to us could be overstated, which could have a negative impact on operations. There was $0 and $825 in accounts receivable as of March 31, 2014 and December 31, 2013, respectively.


Financial Instruments


ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820"), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements.  Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs.  ASC 820 defines the hierarchy as follows:


Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange.


Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date.  The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs.


Level 3 – Significant inputs to pricing that are unobservable as of the reporting date.  The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights.


Our financial instruments consist of cash, accounts receivable, accounts payable and advances, related party which approximate their fair value due to their short maturities.


Fixed Assets


Fixed assets are stated at historical cost less accumulated depreciation and amortization. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Depreciation is provided on a straight-line basis over the assets' estimated useful lives. The useful lives of the assets are as follows office equipment 3 years and leasehold improvements use the shorter of the estimated useful life or the remaining term of the agreements, generally ranging from 3 to 15 years. Additions and improvements are capitalized while routine repairs and maintenance are charged to expense as incurred. Upon sale or disposition, the historically recorded asset cost and accumulated depreciation are removed from the accounts and the net amount less proceeds from disposal is charged or credited to other income / expense.


Long-Lived Assets


We account for our long-lived assets in accordance with ASC Topic 360-10-05, “Accounting for the Impairment or Disposal of Long-Lived Assets.” ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. We assess recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value. As of March 31, 2014 and December 31, 2013, we had $5,744 and $0 long-lived assets, respectively.



7




Income Taxes


Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely that not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.


Revenue Recognition


Revenue is recognized when persuasive evidence of an arrangement exists, the price is fixed, services are rendered, and there is reasonable assurance of collection.


Concentration of Business and Credit Risk


No single customer represents more than 5% of our total sales


Advertising, Promotion and Marketing


We recognize advertising, promotion and marketing costs as incurred. The amount of advertising, promotion and marketing expense recognized for the three month periods ended March 31, 2014 and 2013 were $2,753 and $12,647, respectively.


Basic and Diluted Net Income (Loss) Per Share


The Company computes income loss per share in accordance with “ASC-260”, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic income loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period.  Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.


No potential dilutive debt or equity instruments were issued or outstanding during the three month periods ended March 31, 2014 and 2013.


Recent Pronouncements


The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial condition or the results of its operations.


Subsequent Events


In accordance with FASB ASC 855, Subsequent Events, we evaluated subsequent events from March 31, 2014 to the date the financial statements were available for issue.


NOTE 4 – FIXED ASSETS


Fixed assets comprise of the following at March 31, 2014 and December 31, 2013.

 

 

 

March 31, 2014

 

 

December 31, 2013

 

 

 

(Unaudited)

 

 

 

 

Fixed assets – office equipment

 

 

6,172

 

 

 

-

 

Less accumulated depreciation

 

 

(429)

 

 

 

-

 

Total

 

$

5,743

 

 

$

-

 

 

For the three months ending March 31, 2014 and 2013, depreciation expense was $429 and $0, respectively.



8




NOTE 5 - RELATED PARTY TRANSACTIONS


In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders.  Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.  


During the three months ended March 31, 2014 and 2013 the President was (repaid) or advanced to the Company $(350) and $(378) respectively. As of March 31, 2014 and December 31, 2013 the balances on the advances were $1,888 and $2,238 respectively. The advances are non-interest bearing, unsecured and due on demand.


The President provided office space for the Company to operate free of charge.


NOTE 6 – COMMON STOCK


In The Company is authorized by its Article of Incorporation and Bylaws to issue up to 75,000,000 Common Stock.


As at March 31, 2014, there were 11,548,000 shares of common stock issued and outstanding.


Between September 9, 2013 and December 12, 2013 the Company sold 330,000 shares of its $0.001 par value common stock at $0.05 per share to 14 investors for consideration of $16,500 in cash.


Between January 15, 2014 and March 24, 2014 the Company sold 418,000 shares of its $0.001 par value common stock at $0.05 per share to 24 investors for consideration of $20,900 in cash. $3,250 was received in the following quarter and accounted for as subscription receivable at March 31, 2014.


As at November 11, 2015, there were 11,548,000 shares of common stock issued and outstanding.




9




ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


FORWARD-LOOKING STATEMENTS


This Form 10-Q includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated by reference in this Form 10-Q which address activities, events or developments which the Company expects or anticipates will or may occur in the future, including such things as future capital expenditures (including the amount and nature thereof); finding suitable merger or acquisition candidates; expansion and growth of the Company's business and operations; and other such matters are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. However, whether actual results or developments will conform with the Company's expectations and predictions is subject to a number of risks and uncertainties, including general economic, market and business conditions; the business opportunities (or lack thereof) that may be presented to and pursued by the Company; changes in laws or regulation; and other factors, most of which are beyond the control of the Company.


These forward-looking statements can be identified by the use of predictive, future-tense or forward-looking terminology, such as "believes," "anticipates," "expects," "estimates," "plans," "may," "will," or similar terms. These statements appear in a number of places in this Filing and include statements regarding the intent, belief or current expectations of the Company, and its directors or its officers with respect to, among other things: (i) trends affecting the Company's financial condition or results of operations for its limited history; (ii) the Company's business and growth strategies; and, (iii) the Company's financing plans. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Such factors that could adversely affect actual results and performance include, but are not limited to, the Company's limited operating history, potential fluctuations in quarterly operating results and expenses, government regulation, technological change and competition.


Consequently, all of the forward-looking statements made in this Form 10-Q are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequence to or effects on the Company or its business or operations. The Company assumes no obligations to update any such forward-looking statements.

 

The Company has a limited operating history upon which an evaluation of the Company, its current business and its prospects can be based. The Company's prospects must be considered in light of the risks, uncertainties, expenses and difficulties frequently encountered by companies in their early stages of development. Such risks include inadequate funding the company's inability to anticipate and adapt to a developing market, the failure of the company's infrastructure, changes in laws that adversely affect the company's business, the ability of the Company to manage its operations, including the amount and timing of capital expenditures and other costs relating to the expansion of the company's operations, the introduction and development of different or more extensive communities by direct and indirect competitors of the Company, including those with greater financial, technical and marketing resources, the inability of the Company to attract, retain and motivate qualified personnel and general economic conditions.


The Company expects that its operating expenses will increase significantly, especially as it implements its business plan. To the extent that increases in its operating expenses precede or are not followed by commensurate increases in revenues, or that the Company is unable to adjust operating expense levels accordingly, the Company's business, results of operations and financial condition would be materially and adversely affected. There can be no assurances that the Company can achieve or sustain profitability or that the Company's operating losses will not increase in the future.


GENERAL DESCRIPTION OF BUSINESS


Asset Protection of America, Inc. (“APA”) was formed in August 2010. APA is a unique, full service, one-stop, and estate planning and asset protection company. Our team of dedicated, experienced and knowledgeable personnel is trained to offer a broad range of estate planning and asset protection services. We can assist you from minimizing or eliminating probate, and/or federal estate taxes to highly sophisticated asset protection tools. Our number one priority is to protect what you have.

 



10




RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2014 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2013


Revenue


During the three month period ended March 31, 2014, we generated $6,550 in revenues (2013 - $28,093) the decrease in sales between the two periods was due to the decrease in advertising and a decrease in referrals from outside sources.


Cost of revenue


Our cost of revenue was $600 for the three months ended March 31, 2014 (2013 - $0). We recognized cost of revenue in the three months ended March 31, 2014 because cost of revenue is only incurred on complex trust that require outside legal assistance and county recorder expenses. Most simple trusts do not require legal assistance.


Operating Expenses


During the three month period ended March 31, 2014, we incurred $6,124 in operating expenses (2013 - $15,330). During the period ended March 31, 2014, our operating expenses consisted of: $2,753 (2013 - $12,647) in advertising and marketing expenses and $500 (2013 - $1,333) in professional fees.


Net Income (Loss)


Our net income (loss) for the three months ended March 31, 2014 was $(174) compared to $12,763 for the three months ended March, 31, 2013, a variance of $12,937 due to the factors discussed above.


LIQUIDITY AND CAPITAL RESOURCES


As of March 31, 2014, we had $45,106 in current assets compared to $31,714 at December 31, 2013. Current liabilities at March 31, 2014 totaled $4,284 compared to $2,624 at December 31, 2013.


These financial statements have been prepared on a going concern basis, which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has yet to achieve a sustainable, profitable business, resulting in retained earnings of $2,015 as at March 31, 2014, and further losses are anticipated in the development of its business, raising substantial doubt about the Company’s ability to continue as a going concern.  The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from directors or stockholders or through debt or equity financings.


Cash Flows from Operating Activities


For the period ended March 31, 2014, net cash flows provided by operating activities was $3,089 compared to $3,239 provided by operating activities for the period ended March 31, 2013.  During the three month period ended March 31, 2014, the Company generated a net loss of $174, which was offset for cash flow purposes by a decrease in accounts receivable of $975 and an increase in accounts payable of $2,010. By comparison during the three month period ended March 31, 2013 the Company generated income of $12,763 which was offset for cash flow purposes by an increase in accounts receivable of $7,925 and a decrease in accounts payable of $1,599. 


Cash Flows from Investing Activities


We used $6,172 and $0 for investing activities during the three month periods ended March 31, 2014 or 2013, respectively. The $6,172 spent was for the purchase of office equipment.


Cash Flows from Financing Activities


During the three month period ended March 31, 2014, the Company received $17,650 from the sale of common stock and repaid $350 to related parties while there were was $378 repaid to related parties during the three months ended March 31, 2013.



11




CRITICAL ACCOUNTING POLICIES


In Financial Reporting release No. 60, "CAUTIONARY ADVICE REGARDING DISCLOSURE ABOUT CRITICAL ACCOUNTING POLICIES" ("FRR 60"), the Securities and Exchange Commission suggested that companies provide additional disclosure and commentary on their most critical accounting policies. In FRR 60, the SEC defined the most critical accounting policies as the ones that are most important to the portrayal of a company's financial condition and operating results, and require management to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, our most critical accounting policies include: non-cash compensation valuation that affects the total expenses reported in the current period and the valuation of shares. The methods, estimates and judgments we use in applying these most critical accounting policies have a significant impact on the results we report in our financial statements.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


As a "smaller  reporting  company" as defined by Item 10 of Regulation  S-K, the Company is not required to provide information required by this Item.


CONTROLS AND PROCEDURES


ITEM 4. CONTROLS AND PROCEDURES


EVALUATION OF 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 (also our principal executive officer) and our secretary, treasurer and chief financial officer (also our principal financial and accounting officer) to allow for timely decisions regarding required disclosure.


As of March 31, 2014 we carried out an evaluation, under the supervision and with the participation of our president (also our principal executive officer and our chief financial officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our President and Chief Financial Officer concluded that our disclosure controls and procedures were not effective in providing reasonable assurance in the reliability of our corporate reporting as of the end of the period covered by this Quarterly Report due to certain deficiencies that existed in the design or operation of our internal controls over financial reporting and that may be considered to be material weaknesses.


CHANGES IN INTERNAL CONTROLS.


There was no change in our internal controls or in other factors that could affect these controls during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect our internal control over financial reporting.



12




PART II OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS


The Company was not subject to any legal proceedings during the three month periods ended March 31, 2014 or 2013 and, to the best of its knowledge; no legal proceedings are pending or threatened.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS


There were no sales of unregistered equity securities during the three periods ended March 31, 2014 or 2013.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES


There were no senior securities issued or outstanding during the three month periods ended March 31, 2014 or 2013.


ITEM 4.  MINE SAFETY DISCLOSURES


Not applicable to our Company.


ITEM 5. OTHER INFORMATION


None.


ITEM 6. EXHIBITS


The following documents are included or incorporated by reference as exhibits to this report.


Exhibit Number

Description

3.1

Amended Articles of Incorporation

31.1

Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002




13




SIGNATURES


In accordance with Section 13 or 15 (d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



Date: November 11, 2015


Asset Protection of America, Inc.

Registrant


By: /s/ Todd Bauman

Todd Bauman

Chief Executive Officer





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