1324 Chemin de Chambly, Longueil, Quebec Canada J4J 3X3
(Address of principal executive offices) (Zip Code)
Issuer's telephone number
Former name, former address and former fiscal year, if changed since last report:
7000 Chemin Cote de Liesse Suite 8
Montreal, Quebec, H4T 1E7
Check whether the registrant (1) filed all reports required to be filed by sections 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 .
Check 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 filed . Smaller reporting company X .
Check whether the registrant is a shell company, as defined in Rule 12b-2 of the Exchange Act.
Yes . No X .
State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date:
As of November 23, 2015 the registrants outstanding common stock consisted of 270,817,339 shares.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The interim financial statements included herein are unaudited but reflect, in management's opinion, all adjustments, consisting only of normal recurring adjustments that are necessary for a fair presentation of our financial position and the results of our operations for the interim periods presented. Because of the nature of our business, the results of operations for the quarterly period ended September 30, 2015 are not necessarily indicative of the results that may be expected for the full fiscal year.
EARTH LIFE SCIENCES INC.
September 30, 2015
December 31, 2014
Total Current Assets
Accounts payable and accrued liabilities
Convertible Note payable
Common Stock, at par value
Additional Paid in Capital
Total Stockholders' Deficit
Total Liabilities and Stockholders' Deficit
The Accompanying notes are integral part of these unaudited financial statements.
EARTH LIFE SCIENCES INC.
UNAUDITED STATEMENTS OF OPERATIONS
Nine Months Ended
Three Months Ended
Sept 30, 2015
Sept 30, 2014
Sept 30, 2015
Sept 30, 2014
Office and Administration
NET INCOME (LOSS) FROM OPERATIONS
Other Income and Expenses
Unrealized Foreign Exchange Gain (Loss)
Total Other Income and Expenses
NET INCOME (LOSS)
Total Comprehensive income (loss)
Basic and diluted loss per share
Weighted average # of shares outstanding
The Accompanying notes are integral part of these unaudited financial statements.
EARTH LIFE SCIENCES INC.
UNAUDITED STATEMENTS OF CASH FLOW
Nine Months Ended
Sept 30, 2015
Sept 30, 2014
Net income (loss) for the period
Adjustment for non-cash expenses
Accounts payable and accrued liabilities
Cash used in operating activities
Cash used in Investing Activities
Cash from Financing Activities
INCREASE (DECREASE) IN CASH FOR PERIOD
Cash, beginning of period
Cash (overdraft), end of period
The Accompanying notes are integral part of these unaudited financial statements.
EARTH LIFE SCIENCES INC.
(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2015
NOTE 1 - NATURE OF BUSINESS
Nature of Business
Altus Explorations, Inc. (the "Company") was incorporated in the state of Nevada on November 2, 2001.
On October 1, 2010, Altus entered into a Share Exchange Agreement (the "Agreement") with UWD Unitas World Development Inc. ("UWD"), a privately held Canadian incorporated company. Pursuant to the Agreement, Altus issued 80,000,000 shares of common stock for the acquisition of 450 shares of common stock of The Canadian Tactical Training Academy Inc., representing 100% of the issued and outstanding shares of common stock, which were held by UWD. Further, Altus changed its name to Canadian Tactical Training Academy Inc. and increased the authorized share capital from 40,000,000 to 250,000,000 shares of common stock and then further from 250,000,000 to 450,000,000. The Company assumed the business Canadian Tactical Training Academy Inc., which is the training of law enforcement, security, investigation and protection for officers and individuals.
On June 2, 2014 the Company changed its name to Earth Life Sciences Inc. On June 12, 2015, the Company, through an option agreement, issued 225,000,000 shares to Mr. Song Bo, to earn the mineral rights for the White Channel mineral claims located in British Columbia.
These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future. At December 31, 2014, the Company has not yet achieved profitable operations and has accumulated losses of $6,941,324 (2013 - $6,935,744) since its inception and has a working capital deficiency of $703,564 (2013 - $752,984). The continuation of the Company as a going concern and the ability of the Company to emerge from the Development stage are dependent upon management's successful efforts to raise additional equity financing to continue operations and generate sustainable significant revenues.
These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company will require significant additional financial resources and will be dependent on future financings to fund its ongoing operations as well as other working capital requirements. There is no guarantee that management will be able to raise adequate equity financings or generate profits from operations. These factors raise substantial doubt regarding the Company's ability to continue as a going concern.
Management of the Company has undertaken steps as part of a plan with the goal of sustaining Company operations for the next twelve months and beyond. These steps include: (a) continuing efforts to raise additional capital and/or other forms of financing; and (b) controlling overhead and expenses. Management is aware that material uncertainties exist, related to current economic conditions, which could cast a doubt about the Company's ability to continue to finance its activities. It is to be expected that the Company may incur further losses in the Development of its business and there can be no assurance that any of these efforts will be successful.
NOTE 2 - SUMMARY OF ACCOUNTING POLICIES
Basis of Presentation
The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") and are expressed in U.S. dollars. The Company's fiscal year-end is December 31.
Use of Estimates
The preparation of financial statements in conformity with US GAAP 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, and the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates and assumptions. Significant areas requiring the use of management estimates relate to the determination of impairment of long lived assets, expected tax rates for future income tax recoveries and determining the fair values of financial instruments.
Equipment is recorded at cost. Additions are capitalized and maintenance and repairs are charged to expense as incurred. Gains and losses on dispositions of equipment are reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets which is three years for computers.
Impairment of Assets
The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value cost of the 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.
Other Comprehensive Income
The Company reports and displays comprehensive income and its components in the financial statements. During the years ended December 31, 2014 and 2013, the Company had no components that would cause comprehensive income to be different than net loss.
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of 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 Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting this standard, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority.
Basic and Diluted Loss per Share
Basic loss per share is computed using the weighted average number of common shares outstanding during the year. Diluted earnings per share reflect the potential dilution that could occur if potentially dilutive securities were exercised or converted to common stock. The dilutive effect of options and warrants and their equivalent is computed by application of the treasury stock method and the effect of convertible securities by the "if converted" method. For the years presented, diluted loss per share is equal to basic loss per share as the effect of the computations are anti-dilutive.
The carrying value of the Company's financial instruments, consisting of cash, accounts payable, convertible loans and subscriptions received in advance approximates their fair value. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.
Compensation cost related to share-based payments, such as stock options and employee stock purchase plans, are recognized in the financial statements based on the grant-date fair value of the award. The compensation cost associated with the issuance of stock options will be recognized over its vesting period based on the estimated grant-date fair value.
Stock awards outstanding under the Company's current plans are fully vested, therefore there is no unrecognized compensation cost related to non vested options. No options were granted or exercised during the years ended December 31, 2014 and 2013.
Recent Accounting Pronouncements
In May 2009, the Financial Accounting Standards Board ("FASB") issued guidance that establishes general 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 entitys 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.
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 awards 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 consolidated 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 Entitys 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 entitys 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 entitys liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, Presentation of Financial StatementsLiquidation Basis of Accounting. Even when an entitys liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entitys 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.
We have reviewed the FASB issued Accounting Standards Update (ASU) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporations reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.
NOTE 3 ACCOUNTS AND LOANS PAYABLE
As at December 31, 2014, the Company had received advances from significant shareholders totalling $152,686. These loans are unsecured, non-interest bearing and have no set terms for repayment.
As at December 31, 2014, the Company had made a loan to significant shareholders of $24,107. These loans are unsecured, non-interest bearing and have no set terms for repayment.
As at December 31, 2014, the Company had accounts payable of $90,950 to a significant shareholder.
All related party transactions are measured at the exchange amount which is determined by management to approximate their fair value.
NOTE 4 - CONVERTIBLE LOANS
At December 31, 2014, the Company had entered into Convertible Loan Agreements (the "Loans") in the amount of $102,984.
The Loans interest rates are 12% per annum payable in arrears and are due upon the maturity of the Loans.
The Loans are convertible at the shareholders' option into common stock at the lower of ten day average common share price immediately preceding the date of the Loans or the ten day average common share price immediately preceding the date that a Lender provides Notice of Conversion to the Company, but in no circumstance at a conversion rate of less than $0.001 per common share. The Loans are secured by the assets of the Company, and provide that in the occurrence of certain events the Loans' maturities are accelerated. The Company may prepay the Loans at any time without penalty or bonus.
The ten day average share price immediately preceding the date of the loan was equal to the share price on the agreement date. The conversion feature had no intrinsic value and accordingly no beneficial conversion feature was recorded.
As at December 31, 2014, the Company has not repaid all of the Loans, nor have the shareholders' provided a Notice of Conversion to the Company. On July 15, 2015, the Company converted $45,000 of Loans into 45,000,000 shares of the Company.
NOTE 5 - COMMON STOCK
On April 25, 2014, the Company converted $55,000 of its convertible debt into 184,371 shares of common stock of the Company. Pre-split, this equated to 55,000,000 shares.
On June 2, 2015, the Company completed a reverse stock split of 40:1.
On June 10, 2015, the Company completed a reverse stock split of 8:1.
NOTE 6 - INCOME TAXES
The Company is subject to United States federal and state income taxes at an approximate rate of 35% (2011 - 35%). The amount taken into income as deferred income tax assets must reflect that portion of the income tax loss carry forwards that is more likely-than-not to be realized from future operations. The Company has chosen to provide a full valuation allowance against all available income tax loss carry forwards, regardless of their time of expiry.
No provision for income taxes has been provided in these financial statements due to the net loss for the years ended December 31, 2014 and 2013. The potential tax benefit of these losses may be limited due to certain change in ownership provisions under Section 382 of the Internal Revenue Code and similar state provisions.
NOTE 7 SUBSEQUENT EVENTS
On June 2, 2015, the Company completed a 8:1 reverse stock split.
On June 19, 2015, the Company entered into an option agreement (Agreement) with Song Bo, a private mineral holder, to earn a 100% beneficial interest in certain mineral concessions known as the White Channel mineral claims (the Property). Under the terms of the Agreement the Company will have the right to purchase the right, title, and interest in the Property as well as enter onto the Property to conduct reconnaissance, exploration, and development work on the Property. In exchange, the Company issued 225,000,000 restricted shares and pay the sum of $180,000 payable in instalments of $30,000 on the 15th of every month commencing July 15, 2015 through December 15, 2015. In addition, the Company shall pay a further $50,000 on each anniversary of the Agreement for a period of four years commencing June 19, 2016 through June 19, 2019.
The Property is subject to a 4% NSR on precious metals, and also subject to royalty payments of $0.25 per tonne on the sale of pit run products or processed products; or $0.35 per tonne on the sale of processed mineral products where the selling price of the processed minerals products sell for a price in excess of $35 per tonne; or an amount of $1.00 per tonne on the same of processed mineral products where the selling price of the processed mineral products sell for a price in excess of $100 per tonne. 50% of the NSR can purchased by the Company for $1,000,000 at any time before the fifth year anniversary of the Agreement.
On July 2, 2015, the Company issued a total of 45,000,000 shares to satisfy certain outstanding convertible debt in the amount of $45,000.
ITEM 2 . MANAGEMENT DISCUSSION AND ANALYSIS AND PLAN OF OPERATION
RESULTS OF OPERATIONS
Three and nine Months Ended September 30, 2015 and 2014
Our net income for the nine months ended September 30, 2015 totalled $9,247. This compares with our net loss of $115 for the nine months ended September 30, 2014. General and administrative expenses for the nine months ended September 30, 2015 and 2014 were $21,931 and $57,357, respectively.
We incurred interest expense during the nine months ended September 30, 2015 and 2014 of $1,912 and $13,145, respectively. The Company had revenues during the nine months ended September 30, 2015 and 2014 of $33,090 and $57,242, respectively.
Our net gain for the three months ended September 30, 2015 totalled $4,182. This compares with our net gain of $4,590 for the three months ended September 30, 2014. General and administrative expenses for the three months ended September 30, 2015 and 2014 were $10,808 and $18,617, respectively.
We incurred interest expense during the three months ended September 30, 2015 and 2014 of $nil and $6,193, respectively. The Company had revenues during the three months ended September 30, 2015 and 2014 of $14,990 and $23,207, respectively.
LIQUIDITY AND CAPITAL RESOURCES
If we are unsuccessful in obtaining financing and fail to achieve and sustain a profitable level of operations, we may be unable to fully implement our business plans or continue operations. Future financing through equity, debt or other sources could result in the dilution of Company equity, increase our liabilities, and/or restrict the future availability and use of cash resources. Additionally, there can be no assurance that adequate financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we will be unable to execute our business plans, and will be required to scale back the pace and magnitude of our oil and gas prospects drilling and development initiatives. We also may not be able to meet our vendor and service provider obligations as they become due. In such event, we will be forced to cease our operations.
During the twelve month period ending December 31, 2015, we project cash requirements of approximately $250,000 as we continue to restructure our activities.
PURCHASE OF SIGNIFICANT EQUIPMENT
We do not intend to purchase any significant equipment over the next twelve months ending September 30, 2015.
In order to grow our new business the directors of the company have prepared the following business plan. The Company and its directors intend to execute this plan as soon as possible.
1. INTERNATIONAL MARKETING
The expansion of a corporation on the international spectrum is never a simple feat. At CTTA, the task begins with a thorough market study identifying the general and specific needs and requirements of a given region of the world regarding both public and private security training. Once the needs are identified, the market is approached and penetrated through the use of a winning combination of strategic partnerships, select sales agents, business development consultants and local public and private sector influential business liaisons. Whether obligatory by law or not, CTTA calls upon the assistance of local professionals in a region to help fully understand the realities of the markets we wish to enter.
2. COURSE DEVELOPMENT AND CUSTOMIZATION
In order to increase business, the team at CTTA is constantly evaluating both local and international market needs and requirements through fieldwork and the physical analysis of actual and potential clients known to require services such as those we offer. In addition, by staying in tune with the current state of affairs around the world, the highly experienced team of trainers and pedagogy professionals are regularly developing new and better adapted programs to tailor to the issues being faced by industry professionals today. Whether it has to do with proper Use of Force according to modern day tolerances and regulations, or the precise tactics of specialized Intervention teams, our experts are up to date and constantly producing solutions that better protect both the officers and the public they serve.
3. MANAGEMENT DISCUSSION AND ANALYSIS
Developing a game plan for growth at CTTA during the next 12 to 24 months includes the exploration of evolving yet expanding local and international security markets. Due to the fact that our fields of expertise cover a wide range of both general and specific Law enforcement and Security training, the need for what we can bring to an industry in constant need of upgrades and advanced up-to-date techniques, is obvious.
The main challenge for CTTA arises because we will be venturing into unchartered waters regarding never before seen quantities of public and private security professionals, requiring internationally accepted training in the fields of Crowd Management, Riot Control, Crisis Intervention, Special Event Security Management, Physical Intervention and Defensive Tactics. Seeing that the needs involve a multitude of jurisdictions around the world, a second challenge becomes the adaptation of our intellectual property to the realities of a targeted region in terms of language, governmental laws and regulations, as well as social, religious and cultural tolerances.
Proper management of the projected growth will come through the extensive international experience of the board of directors and the administration team of CTTA. In addition, a Business Development division is being created involving top industry and parallel industry performers, who with the guidance of our new board of advisors including international players of different nationalities and cultural backgrounds will effectively approach our targeted markets with un-measureable success.
After an extensive study of global tendencies, although every area in our world has its basic and specific security needs, the markets that CTTA will be focussing on are the following;
Security in Brazil will attain unprecedented levels of global importance due to the fact that this region of the world will be host to international events such as the Formula 1 race circuit, the 2014 World Cup soccer championships and the 2016 Olympic Games. CTTA will be working with Canadian government officials and local officials to encompass the specific training and management requirements presented to assist police, private security and military units in dealing with the increase in the need for public maintaining of order.
B. MIDDLE EAST (GULF)
In Tunisia, Egypt, Yemen, Bahrain, Syria a message to the world has already been sent, members of the population are taking to the streets in protest to voice their discontentment with government and the ruling class. The need for additional training in crowd control and effective intervention is clear. Improved security procedures stem from the adoption of both proven strategies and training, tailored to the specific realities of the environment in question.
CTTA has signed an MOU with a Kuwaiti partner projecting to begin training members of the National Police Force of Kuwait in the fall of 2011. Negotiations are also underway for a similar project in Qatar.
C. CANADA AND USA
Although local activities involve the specialized training of security and law enforcement personnel in an apparently saturated market, the constant global evolution in the industry forces the need for improvement locally. In a nearly immeasurable global market involving Tens of Billions of dollars, be it in the fields of Counter-Piracy, Counter-Terrorism, Executive Protection, Preventative Patrol Techniques and/or Defensive Tactics, more than ever, North American Security and Law Enforcement Operatives are active around the world sharing their Knowledge and "Savoir Faire" with co-patriots as well as allied forces trying to maintain peace and order.
A number of recognized Law Enforcement and Correctional Training Academies have already begun adopting CTTA programs into their curriculum.
MARKET AND COMPETITION
Economic instability, social conflicts, terrorism threats and crime are a big part of today's world. Therefore, police and private security forces, along with corporations and individuals have to face a lot of challenges when it comes to safety. Being well trained is often a major key in order to adequately face these challenges. Whether it is about learning new ways of doing things or practicing fundamentals skills, the private security and law enforcement training corporations are more and more solicited.
A very good side of our industry is, apart for firearm and some other specialized training, there are no training corporations either in Canada or United States that can be considered as THE school to go to. Although there are some big schools in the USA, it's a fragmented market and there are a lot of small training academies. Therefore, acquiring or partner up with other training corporations becomes an easy way of growing up.
CTTA FIELD OF EXPERTISE
CTTA offers various training programs for law enforcement, private security and civilians such as:
TACTICAL TRAINING: Defensive Tactics, Pressure Points, Handcuffing, Baton, Firearms and more.
BASIC TRAINING: Private security and investigation.
SPECIALIZED TRAINING: Executive Protection, Airport Security, Port Facilities Security, Crowd Control, Counter Terrorism and more.
CIVILIAN TRAINING: Corporate Safety Awareness, Street Survival and more.
Although CTTA is an international training academy, is primary market is North America. CTTA is composed by both American and Canadian directors and instructors, which gives a unique perspective for Law Enforcement training. United States is known to be very proactive with law enforcement training and Canada is known to be very strict with use of force and therefore, put prevention and de-escalation at first line. The synergy between the two countries gives amazing results and great training quality.
1. SECURITY MARKET ANALYSIS
Private law enforcement careers are rated among "the 30 best-paying fast-track careers".
Ontario employs approximately 70,000 private law enforcement professionals, versus 25,000 public police officers.
The US Bureau of Labor Statistics Reports Private Law Enforcement is projected to grow better than 20% by 2018.
The US Bureau of Labor Statistics reports the average income of a private investigator -with training- at $60,390.
Security directors, in the same report, average $77,000-$80,000 and security guards about $40,000.
LARGE INCREASE IN PRIVATE SECURITY PERSONNEL BETWEEN 2001 AND 2006
For many years, employment in the private security industry has exceeded that of public police officers (Chart 1). In 2006, this was the case for all provinces except Saskatchewan. There were about 102,000 private security personnel in Canada, compared to 68,000 police officers, representing about 3 private security personnel for every 2 police officers. Security guards made up 90% of private security personnel.
While the rate of both police officers and private security personnel per 100,000 population increased between 2001 and 2006, private security grew much faster, up 15% compared to 3% for police officers. The increase in private security personnel was due to the growth in the number of security guards.
Manitoba and Saskatchewan, which had the nation's highest crime rates, employed the most police per capita in 2006. Prince Edward Island and Newfoundland and Labrador, provinces with crime rates well below the national average, had the fewest number of police per capita.
Quebec reported the most security guards per capita among the provinces, while Alberta and Ontario had the most private investigators per capita.
There are several small security and tactical training academies in Quebec and Ontario especially, though few of them offer as many programs as CTTA does.
Ontario has the best growing potential in Canada and the training industry is not big enough to answer the needs. CTTA is planning to develop in Ontario this year.
There are a lot of security and tactical training academies in the USA.
There are some big names like Smith & Wesson Academy, Safariland Training Group and PPCT Management Systems to name a few, but the market is huge and still offers a lot of possibilities. Although often conservatives, Americans nowadays are more open to look for new training solutions.
Each province and one territory (Yukon) has regulations on place for the private security industry. In some of them, there are basic training requirements for the personnel. CTTA is currently working on to become a qualified academy to deliver that required training in Quebec and Ontario. As for the specialized training of law enforcement officers, there are many possibilities throughout Canada, but not in Quebec (provincial Police Act).
Each State has different standards to train peace and private security officers. CTTA is already operating with local partners both in the States of Louisiana and Florida and is looking to grow a lot in the USA in the next few years.
There are a lot of possibilities worldwide. CTTA is already involved in projects development in the Middle East (Kuwait and Qatar) and in Brazil. Other countries have also showed their interest in CTTA.
The accompanying financial statements have been prepared assuming we will continue as a going concern. We incurred a net income of $4,590 for the three months ended September 30, 2014 and a net loss of $54,306 for the same period in 2013.
The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.
There are no assurances that we will be able, over the next twelve months, to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings, bank financing or shareholder advances necessary to support Earth Life Sciences Inc. 's working capital requirements. To the extent that funds generated from operations and any private placements, public offerings or bank financing are insufficient, the Company will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to Earth Life Sciences Inc. If adequate working capital is not available, Earth Life Sciences Inc. may be required to cease its operations.
The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. These conditions raise substantial doubt about our ability to continue as a going concern. There are no definitive agreements or arrangements for future funding.
APPLICATION OF CRITICAL ACCOUNTING POLICIES
Our financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles in the United States. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management's application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our consolidated financial statements is critical to an understanding of our balance sheet, the statements of operations and stockholders' equity, and the cash flows statements included elsewhere in this filing.
ITEM 4 CONTROLS AND PROCEDURES
The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting, as required by Sarbanes-Oxley (SOX) Section 404 A. The Company's internal control over financial reporting is a process designed under the supervision of the Company's Principal Executive Officer who is also our Principal Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company's financial statements for external purposes in accordance with U.S. generally accepted accounting principles.
As of September 30, 2014, management assessed the effectiveness of the Company's internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control--Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") and SEC guidance on conducting such assessments. Based on that evaluation, they concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as more fully described below. This was due to deficiencies that existed in the design or operation of our internal control over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.
The matters involving internal controls and procedures that the Company's management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) inadequate segregation of duties consistent with control objectives; (2) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements; and (3) ineffective controls over period end financial disclosure and reporting processes. The aforementioned material weaknesses were identified by the Company's Principal Financial Officer in connection with the audit of our financial statements as of December 31, 2009 and communicated the matters to our management.
Management believes that the material weaknesses set forth in items (1), (2) and (3) above did not have an effect on the Company's financial results.
We are committed to improving our financial organization. As part of this commitment, we will i) create a position to segregate duties consistent with control objectives and will increase our personnel resources and technical accounting expertise within the accounting function when funds are available to the Company ii) preparing and implement sufficient written policies and checklists which will set forth procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements.
Management believes that preparing and implementing sufficient written policies and checklists will remedy the following material weaknesses (i) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements; and (ii) ineffective controls over period end financial close and reporting processes. Further, management believes that the hiring of additional personnel who have the technical expertise and knowledge will result proper segregation of duties and provide more checks and balances within the department. Additional personnel will also provide the cross training needed to support the Company if personnel turn over issues within the department occur.
We will continue to monitor and evaluate the effectiveness of our internal controls and procedures and our internal controls over financial reporting on an ongoing basis and are committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow. This annual report does not include an attestation report of the Company's registered accounting firm regarding internal control over financial reporting.
Management's report is not subject to attestation by the Company's registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission.
PART II OTHER INFORMATION
ITEM 6. EXHIBITS