UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2016

 

[  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

 

For the transition period from ______ to _______

 

Commission File Number 333-191618

 

ADM ENDEAVORS, INC.

(Exact name of registrant as specified in its charter)

 

Nevada		45-0459323
(State of incorporation)		(I.R.S. Employer Identification No.)

 

2021 N. 3^RD Street

Bismarck, North Dakota 58501

(Address of principal executive offices)

 

(701) 226-9058

(Registrant’s telephone number)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

[X] Yes [  ] 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).

[X] Yes [  ] No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer	[  ]		Accelerated Filer	[  ]
Non-Accelerated Filer	[  ]		Smaller Reporting Company	[X]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[  ] Yes [X] No

 

As of June 30, 2016, there were 123,170,000 shares of the registrant’s $0.001 par value common stock issued and outstanding.

 

 

 

ADM ENDEAVORS, INC.

 

TABLE OF CONTENTS		Page
PART I.	FINANCIAL INFORMATION	3
		3
ITEM 1.	FINANCIAL STATEMENTS	11
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	13
ITEM 3.	QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK	13
ITEM 4.	CONTROLS AND PROCEDURES	13
PART II.	OTHER INFORMATION	13
ITEM 1.	LEGAL PROCEEDINGS	13
ITEM 1A.	RISK FACTORS	13
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	14
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	14
ITEM 4.	MINE SAFETY DISCLOSURES	14
ITEM 5.	OTHER INFORMATION	14
ITEM 6.	EXHIBITS	14

 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

ADM ENDEAVORS, INC.

Consolidated Balance Sheets

(unaudited)

 

		June 30, 2016				December 31, 2015
Assets
Current assets
Cash		$	28,148			$	46,002
Accounts receivable			62				40,009
Total current assets			28,210				86,011
Properties and equipment, net			16,882				20,844
Total assets		$	45,092			$	106,855
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$	36,605			$	26,526
Accrued expenses			94,196				116,579
Due related party			45,970				31,203
Current portion of note payable			4,282				4,066
Total current liabilities			181,053				178,374
Note Payable, net of current portion			17,027				19,253
Total liabilities			198,080				197,627
Commitments and contingencies
Stockholders’ Equity
Preferred stock; par value $0.001 authorized 80,000,000 shares, none issued			-
Common stock; par value $0.001 authorized 800,000,000
shares, issued 123,170,000 and 123,170,000, respectively			125,395				124,468
Additional paid in capital			14,488,105				14,257,261
Accumulated deficit			(14,766,486	)			(14,472,501	)
Total stockholders’ equity (deficit)			(152,987	)			(90,772	)
Total liabilities and stockholders’ equity		$	45,093			$	106,855

 

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

 

 

ADM ENDEAVORS, INC.

Consolidated Statements of Operations

(unaudited)

 

		Three Months Ended June 30,								Six Months Ended June 30,
		2016				2015				2016				2015
Revenues		$	43,356			$	118,879			$	90,156			$	180,479
Cost of revenues			12,870				58,804				27,353				65,699
Gross margin			30,486				60,075				62,803				114,780
Operating expenses:
General and Administrative			44,526				16,739				67,300				44,644
Consulting expense			92,707				1,243,947				231,770				1,243,947
Officer Compensation			18,000				24,122				36,000				52,035
Travel			11,077				2,797				18,715				10,936
Total operating expenses			166,310				1,287,605				353,785				1,351,562
Operating Income (Loss)			(135,824	)			(1,227,530	)			(290,982	)			(1,236,782	)
Other expenses
Interest Expense			1,043				3,652				3,005				3,943
Total expenses			1,043				3,652				3,005				3,943
Loss before taxes			(136,867	)			(1,231,182	)			(293,987	)			(1,240,725	)
Income Tax Provision			-				-				-				-
Net Income (Loss)		$	(136,867	)		$	(1,231,182	)		$	(293,987	)		$	(1,240,725	)
Gain (Loss) per share, basic and diluted		$	0.00			$	(0.01	)		$	(0.00	)		$	(0.01	)
Weighted average shares outstanding			124,655,368				119,459,286				124,983,416				118,631,740

 

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

 

 

ADM ENDEAVORS, INC.

Consolidated Statements of Stockholders’ Deficit

(Unaudited)

 

		Common Shares				Common Stock				Additional Paid In Capital				Accumulated Deficit				Total
Balance December 31, 2015			124,467,916			$	124,468			$	14,257,261			$	(14,472,501	)		$	(90,772	)
Stock to be issued for services			556,252				556				138,507				-				139,063
Net loss for the period ended			-				-				-				(157,120	)			(157,120	)
Balance March 31, 2016			125,024,168			$	125,024			$	14,395,768			$	(14,629,621	)		$	(108,829	)
Stock to be issued for services			370,829				371				92,337				-				92,707
Net loss for the period ended			-				-				-				(136,865	)			(136,865	)
Balance June 30, 2016			125,394,997			$	125,395			$	14,488,105			$	(14,766,486	)		$	(152,987	)

 

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

 

 

ADM ENDEAVORS, INC.

Consolidated Statements of Cash Flow

(unaudited)

 

		For the Six Months Ended June 30,
		2016				2015
CASH FLOW FROM OPERATING ACTIVITIES:
Net Loss for the period		$	(293,985	)		$	(1,240,725	)
Adjustments to reconcile net loss to net cash used by operating activities:
Common stock issued for services			231,770				1,243,946
Depreciation			3,962				3,963
Change in operating assets and liabilities:
(Increase) in accounts receivable			39,947				(72,698	)
Due related party			-				27,626
Increase in accounts payable			10,079				38,307
Increase in accrued expenses			(22,384	)			-
Cash Flows provided by (used) in operating activities			(30,611	)			419
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on note payable			(2,010	)			-
Proceeds from Shareholder Loan			14,767				(1,939	)
Net cash provided by (used in) financing activities			12,757				(1,939	)
Net increase (decrease) in cash			(17,854	)			(1,520	)
Cash at beginning of period			46,002				11,009
Cash at end of period		$	28,148			$	9,489
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest		$	1,159			$	3943
Franchise and income taxes		$	-			$	-

 

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

 

 

ADM ENDEAVORS, INC.

Notes to the Consolidated Financial Statements

June 30, 2016

 

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

 

We began operations in 1988, under the ownership and control of Ardell Mees, who provided installation services to grocery decor design companies. As our reputation has grown, we have expanded our operations to serve a larger geographic region. On January 4, 2001, we incorporated in North Dakota as ADM Enterprises, Inc. On May 9, 2006, the Company changed both its name to ADM Endeavors and its domicile to the state of Nevada. On July 1, 2008, the Company acquired all of the assets of ADM Enterprises, LLC, a sole proprietorship owned by Ardell and Tammera Mees, in exchange for 10,000,000 newly issued shares of our common stock. As a result, ADM Enterprises, LLC became a wholly owned subsidiary of the Company. Even though the Company was incorporated on January 4, 2001, it had no operations until the share exchange agreement with ADM Enterprises, LLC on July 1, 2008. All business operations are those solely of the Company’s wholly owned subsidiary ADM Enterprises, LLC.

 

Basis of presentation

 

The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of Consolidation

 

The accompanying consolidated financial statements include all of the accounts of the Company and its wholly-owned subsidiary AMD Enterprises, LLC at June 30, 2016 and December 31, 2015 for the periods then ended. All intercompany balances and transactions have been eliminated.

 

Going Concern

 

The Company has generated limited profits and may experience losses in the near term. We continue to be dependent on sales of our equity securities and debt financing to meet our cash requirements for the future proposed expansion of operations. . The Company needs to maintain a steady operating structure, ensuring that expenses are contained such that profits are consistently achieved. In order to expand the Company’s business, the Company would likely require additional financing. Management of the Company must continually develop and refine its strategies and goals in order to execute the business plan of the Company on a broad scale and expand the business.

 

Failure to raise adequate capital and generate adequate revenues could result in the Company having to curtail or cease operations. The Company’s ability to raise additional capital through the future issuances of the common stock or debt is unknown. Additionally, even if the Company does raise sufficient capital to support its operating expenses and generate adequate revenues, there can be no assurances that the revenue will be sufficient to enable it to develop to a level where it will generate profits and cash flows from operations. These matters raise substantial doubt about the Company’s ability to continue as a going concern; however, the accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classifications of the liabilities that might be necessary should the Company be unable to continue as a going concern.

 

Use of estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles 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 period. Accordingly, actual results could differ from those estimates. Such estimates include management’s assessments of the carrying value of certain assets, useful lives of assets, and related depreciation methods applied.

 

 

Cash equivalents

 

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. At June 30, 2016 and December 31, 2015, the Company had no cash equivalents.

 

Fair value of financial instruments

 

The Company adopted the provisions of FASB ASC 820 (the “Fair Value Topic”) which defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosures about fair value measurements.

 

The Fair Value Topic defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. It also establishes a fair value hierarchy, which prioritizes the valuation inputs into three broad levels.

 

The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

 

A) Market approach—Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Prices may be indicated by pricing guides, sale transactions, market trades, or other sources;

 

B) Cost approach—Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost); and

 

C) Income approach—Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about the future amounts (includes present value techniques, and option-pricing models). Net present value is an income approach where a stream of expected cash flows is discounted at an appropriate market interest rate.

 

Level 1: Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. An active market for an asset or liability is a market in which transactions for the asset or liability occur with significant frequency and volume to provide pricing information on an ongoing basis.

 

Level 2: Observable inputs other than Level 1 inputs. Example of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.

 

Level 3: Unobservable inputs based on the Company’s assessment of the assumptions that are market participants would use in pricing the asset or liability.

 

The carrying amount of the Company’s financial assets and liabilities, such as cash, accounts receivable, prepaid consulting expense, accounts payable, and note payable approximate their fair value because of the short maturity of those instruments. The Company’s note payable approximate the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements at June 30, 2016 and December 31, 2015.

 

The Company had no assets and/or liabilities measured at fair value on a recurring basis at June 30, 2016 and December 31, 2015.

 

Property and Equipment

 

Property and equipment are recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is computed by the straight-line method over the assets estimated useful life of three (3) years for equipment, (5) years for automobile, and (7) years for furniture and fixtures. Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in statements of operations.

 

 

Impairment of long-lived assets

 

The Company follows paragraph 360-10-05-4 of the FASB Accounting Standards Codification for its long-lived assets. The Company’s long-lived assets, such as intellectual property, are required to be reviewed for impairment annually, or whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

 

The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives.

 

The Company determined that there were no impairments of long-lived assets at June 30, 2016 and December 31, 2015.

 

Revenue recognition

 

The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. In addition, the Company records allowances for accounts receivable that are estimated to not be collectible.

 

Stock-Based Compensation

 

In December 2004, the FASB issued FASB Accounting Standards Codification No. 718, Compensation – Stock Compensation. Under FASB Accounting Standards Codification No. 718, companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services. Share-based compensation arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As such, compensation cost is measured on the date of grant at their fair value. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. The Company applies this statement prospectively.

 

Equity instruments (“instruments”) issued to other than employees are recorded on the basis of the fair value of the instruments, as required by FASB Accounting Standards Codification No. 718. FASB Accounting Standards Codification No. 505, Equity Based Payments to Non-Employees defines the measurement date and recognition period for such instruments. In general, the measurement date is when either a (a) performance commitment, as defined, is reached or (b) the earlier of (i) the non-employee performance is complete or (ii) the instruments are vested. The measured value related to the instruments is recognized over a period based on the facts and circumstances of each particular grant as defined in the FASB Accounting Standards Codification.

 

Net income (loss) per share

 

The Company computes basic and diluted earnings per share amounts pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic earnings per share is computed by dividing net income (loss) available to common shareholders, by the weighted average number of shares of common stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted earnings per share is computed by dividing net income (loss) available to common shareholders by the diluted weighted average number of shares of common stock during the period. The diluted weighted average number of common shares outstanding is the basic weighted number of shares adjusted as of the first day of the year for any potentially diluted debt or equity.

 

There were potentially no dilutive shares outstanding at June 30, 2016 and December 31, 2015.

 

Recently issued accounting pronouncements

 

Company management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

 

 

NOTE 3 – PROPERTY AND EQUIPMENT

 

Fixed assets, stated at cost, less accumulated depreciation at June 30, 2016 and December 31, 2015 consisted of the following:

 

		June 30, 2016				December 31, 2015
Equipment		$	14,825			$	14,825
Trucks			89,125				89,125
Less: Accumulated Depreciation			(87,068	)			(83,106	)
Property and Equipment, net		$	16,882			$	20,844

 

Depreciation expense

 

Depreciation expense for the six months ended June 30, 2016 and 2015 was $3,962 and $3,963 respectively.

 

NOTE 4 – NOTE PAYABLE

 

On March 3, 2014, the Company purchased a vehicle to use for projects that require management to work extended stays on location. The Company paid $5,000 as a down payment and financed $30,015 with 4.122% APR due on March 10, 2021. The loan calls for monthly payments of $412.

 

As of June 30, 2016 and December 31, 2015, the Company has a note payable balance of $21,309 and $23,319, respectively.

 

NOTE 5 – RELATED PARTY TRANSACTIONS

 

The Company has been provided office space by its chief executive officer, Ardell Mees, at no cost. Management has determined that such cost is nominal and did not recognize the rent expense in its financial statements. During the six months ended June 30, 2016 and the year ended December 31, 2015, the Chief Executive Officer advanced the Company $45,970 and $31,203.

 

Employment Agreement

 

On January 3, 2015, the Company executed a two-year employment agreement with Ardell D. Mees, the Company’s Chief Executive Officer and Chief Financial Officer. As compensation for services, Mr. Mees is to receive an annual base salary of $72,000.

 

NOTE 6 – STOCKHOLDERS’ EQUITY

 

Our Articles of Incorporation authorize the issuance of 800,000,000 shares of common stock and 80,000,000 shares of preferred stock, both $0.001 par value per share. There were 125,394,997 and 124,467,916 outstanding shares of common stock and no outstanding shares of Preferred stock at June 30, 2016 and December 31, 2015, respectively.

 

Common shares to be issued during the second quarter of 2016

 

On May 30, 2016, the Company granted 2,225,000 common shares valued at $556,250 or $0.25 per share for consulting services to a related party. The $556,250 is being amortized over the one-year term on the contract. During the quarter ended June 30, 2016 the Company incurred consulting services expense of $92,708 related to this grant.

 

NOTE 7 – CONCENTRATION OF CUSTOMER

 

For the six months ended June 30, 2016 the Company has one customer which amounted to 100% of their sales

 

For the six months ended June 30, 2015 the Company has one customers which amounted to approximately 82% of their sales.

 

NOTE 8 – SUBSEQUENT EVENTS

 

On July 26, 2016, the Company issued 350,000 shares of common stock valued at $87,500, or $0.25 per share, for consulting services.

 

On October 24, 2016, the Company issued 2,225,000 shares of common stock related to the grant on May 30, 2015 pursuant to a consulting agreement.

 

Management has evaluated subsequent events pursuant to the requirements of ASC Topic 855 and has determined that no other material subsequent events exist.

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION

 

FORWARD-LOOKING STATEMENTS

 

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, or implied, by those forward-looking statements. You can identify forward-looking statements by the use of the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms. These statements are only predictions. In evaluating these statements, you should consider various factors which may cause our actual results to differ materially from any forward-looking statements. Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

 

RESULTS OF OPERATIONS

 

Working Capital

		June 30, 2016				December 31, 2015
		$				$
Current Assets			28,210				86,011
Current Liabilities			181,053				178,374
Working Capital (Deficit)			(152,843	)			(92,363	)

 

Cash Flows

		Six months ended June 30, 2015				Six months ended June 30, 2015
		$				$
Cash Flows provided by (used in) Operating Activities			(30,611	)			419
Cash Flows from (used in) Investing Activities			-				-
Cash Flows from (used in) Financing Activities			12,757				(1,939	)
Net increase (decrease) in Cash During Period			(17,854	)			(1,520	)

 

Operating Revenues

 

For the six months ended June 30, 2016, the Company earned revenues of $90,156 compared with $180,479 for the six months ended June 30, 2015. For the three months ended June 30, 2016, the company earned revenues of $43,356 compared with $118,879 for the three months ended June 30, 2015.

 

Operating Expenses and Net Income (Loss)

 

For the six months ended June 30, 2016, the Company incurred operating expenses of $353,785 compared with $1,351,562 for the six months ended June 30, 2015. The decrease of $997,777 is due largely to a decrease in consulting expenses.

 

For the three months ended June 30, 2016, the Company incurred operating expenses of $166,310 compared with $1,287,605 for the three months ended June 30, 2015. The decrease of $1,121,295 is due largely to a decrease in consulting expenses.

 

For the six months ended June 30, 2016, the Company realized a net loss of $293,987 compared with a net loss of $1,240,725 for the six months ended June 30, 2015.

 

During the six months ended June 30, 2016, the Company recorded net loss per share of $0.00 compared with a loss per share of $0.01 for the six months ended June 30, 2015.

 

 

Liquidity and Capital Resources

 

As at June 30, 2016, the Company had cash and total assets of $28,148 and $45,092, respectively, compared with cash of $46,002 and total assets of $106,855 as at December 31, 2015. The decrease in total assets was attributed to a decrease in accounts receivable.

 

As at June 30, 2016, the Company had total liabilities of $198,080 compared with total liabilities of $197,627 at December 31, 2015. The nominal increase in total liabilities was attributed to an increase of $10,079 in accounts payable and offset by a decrease of $22,383 of accrued expenses.

 

As at June 30, 2016, the Company had a working capital deficit of $152,843 compared with a working capital deficit of $92,363 as at December 31, 2015. The increase in working capital deficit was due to a decrease in accounts receivable.

 

Cash Flow from Operating Activities

 

During the period ended June 30, 2016, the Company used $30,611 in cash for operating activities compared to $419 of cash provided by operating activities during the period ended June 30, 2015. The decrease in net cash provided by operating activities was due to a decrease in accounts payable.

 

Cash Flow from Investing Activities

 

During the period ended June 30, 2016, the Company did not use or accumulate cash related to investing activities.

 

Cash Flow from Financing Activities

 

During the period ended June 30, 2016, financing activities provided the Company with $12,757 in cash compared to $1,939 in cash used for the period ended June 30, 2015.

 

Going Concern

 

We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.

 

Future Financings

 

We will continue to rely on equity sales of our Common Shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund our operations and other activities.

 

Off-Balance Sheet Arrangements

 

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

 

Critical Accounting Policies

 

Our financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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.

 

We regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. A complete summary of these policies is included in the notes to our financial statements. In general, management’s estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

 

 

Recently Issued Accounting Pronouncements

 

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by our company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our management carried out an evaluation under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (“Exchange Act”). Based upon that evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were not effective as of June 30, 2016, due to the material weaknesses resulting from the Board of Directors not currently having any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K, and controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements.

 

Changes in Internal Control over Financial Reporting

 

Our management has also evaluated our internal control over financial reporting, and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of our last evaluation.

 

The Company is not required by current SEC rules to include, and does not include, an auditor’s attestation report. The Company’s registered public accounting firm has not attested to Management’s reports on the Company’s internal control over financial reporting.

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS.

 

We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which our director, officer or any affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

 

ITEM 1A. RISK FACTORS.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

 

 

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

 

1. Quarterly Issuances:

 

Other than as previously disclosed, we did not issue any unregistered securities during the quarter.

 

2. Subsequent Issuances:

 

Other than as previously disclosed, we did not issue any unregistered securities subsequent to the quarter.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES.

 

Not Applicable.

 

ITEM 5. OTHER INFORMATION.

 

None.

 

ITEM 6. EXHIBITS

 

Exhibit Number		Description of Exhibit		Filing
3.1		Articles of Incorporation		Filed with the SEC on October 8, 2013 as part of our Registration Statement on Form S-1.
3.2		Bylaws		Filed with the SEC on October 8, 2013 as part of our Registration Statement on Form S-1.
10.1		Share Purchase Agreement		Filed with the SEC on October 8, 2013 as part of our Registration Statement on Form S-1.
10.3		Employment agreement with Ardell Mees dated January 3, 2011		Filed with the SEC on January 23, 2014 as part of our Registration Statement on Form S-1.
10.4		Employment agreement with Ardell Mees dated January 3, 2013		Filed with the SEC on January 23, 2014 as part of our Registration Statement on Form S-1.
10.5		Consulting agreement with Calvin Mees dated May 20, 2012		Filed with the SEC on January 23, 2014 as part of our Registration Statement on Form S-1.
10.6		Consulting agreement with Calvin Mees dated May 20, 2013		Filed with the SEC on January 23, 2014 as part of our Registration Statement on Form S-1.
10.7		Amendment to employment agreement, Exhibit 10.4		Filed with the SEC on March 19, 2014 as part of our Registration Statement on Form S-1.
31.1		Certification of Principal Executive Officer Pursuant to Rule 13a-14		Filed herewith.
31.2		Certification of Principal Financial Officer Pursuant to Rule 13a-14		Filed herewith.
32.1		CEO and CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act		Filed herewith.

 

 *Pursuant to Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

 

 

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.

 

	ADM ENDEAVORS, INC.
Dated: February 13, 2017	By:	/s/ Ardell Mees
	Name:	Ardell Mees
	Its:	Chief Executive Officer, Chief Financial Officer, Treasurer, and Director

 

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the Company and in the capacities and on the dates indicated.

 

Dated: February 13, 2017	By:	/s/ Tammy Mees
	Name:	Tammy Mees
	Its:	Secretary, Principal Accounting Officer, and Director