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EX-32 - EXHIBIT 32 SECTION 906 CERTIFICATION - Lockbox Link, Inc.10q063017_ex32.htm
EX-31 - EXHIBIT 31 SECTION 302 CERTIFICATION - Lockbox Link, Inc.10q063017_ex31.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended: June 30, 2017

 

Commission File Number:

 

LOCKBOX LINK, INC.

(Name of issuer in its charter)

 

Nevada

 

7372

 

46-5441197

(State or jurisdiction of incorporation or organization)

 

(Primary Standard Industrial Classification Code Number)

 

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

 

 

123 W. Nye Lane,

Suite 129

 

 

Carson City, NV 89706

 

 

858-353-9199

 

(Address and telephone number of principal executive offices and principal place of business

 

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). [   ] Yes [X] 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

[   ] (Do not check if a smaller reporting company)

Smaller reporting company

[X]

 

 

 

 

 

 

Emerging growth company

[X]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [X]

 

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

 

Class

 

Outstanding at June 30, 2017

Common stock, $0.001 par value

 

5,444,500


1


PART 1 –- FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature. Operating results for the six month period ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.


2


LOCKBOX LINK, INC.

CONDENSED BALANCE SHEET

As of June 30, 2017 and December 31, 2016

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

2016

ASSETS

 

 

Current assets

 

 

 

 

 

 

 

 

Cash in bank

 

 

 

$

1,181

$

4,004

 

 

 

Total assets

 

 

 

1,181

 

4,004

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' DEFICIT

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

12,690

 

10,285

 

Loans payable and accrued interest ($122)

 

7,668

 

-

 

 

 

Total liabilities

 

 

 

20,358

 

10,285

 

 

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' deficit

 

 

 

 

 

 

 

Preferred stock, 10,000,000 shares authorized,

 

 

 

 

 

 

0 issued and outstanding as of June 30, 2017

 

-

 

-

 

 

and December 31, 2016

 

 

 

 

 

 

 

Common stock, 100,000,000 shares, par value $0.001,

 

 

 

 

 

 

authorized, 5,444,500 issued and outstanding

 

 

 

 

 

 

as of June 30, 2017 and December 31, 2016

 

5,445

 

5,445

 

Additional paid in capital

 

 

 

83,955

 

83,955

 

Accumulated deficit

 

 

 

(108,577)

 

(95,681)

 

 

 

Total shareholders' deficit

 

 

(19,177)

 

(6,281)

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT

$

1,181

$

4,004

 

 

 

 

 

 

 

 

 

 

 

See notes to unaudited condensed financial statements.


3


LOCKBOX LINK, INC.

CONDENSED STATEMENT OF OPERATIONS

For the periods ended June 30, 2017 and 2016

(UNAUDITED)

 

 

 

 

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

$

-

 

$

-

 

$

-

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General expenses

 

 

 

 

 

 

 

 

 

 

 

 

Consulting fees

 

-

 

 

-

 

 

-

 

 

2,000

 

Professional fees

 

12,203

 

 

6,190

 

 

12,703

 

 

9,090

 

Operating expenses

 

36

 

 

1,334

 

 

72

 

 

1,520

 

 

Total general expenses

 

12,239

 

 

7,524

 

 

12,775

 

 

12,610

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income/expenses

 

 

 

 

 

 

 

 

 

 

 

 

Interest expenses

 

122

 

 

-

 

 

122

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss before taxes

 

(12,361)

 

 

(7,524)

 

 

(12,897)

 

 

(12,610)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

$

(12,361)

 

$

(7,524)

 

$

(12,897)

 

$

(12,610)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share

$

(0.00)

*

$

(0.00)

*

$

(0.00)

*

$

(0.00)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average of shares outstanding

 

5,444,500

 

 

5,444,500

 

 

5,444,500

 

 

5,444,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

Less than $0.01 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to unaudited condensed financial statements.


4


LOCKBOX LINK, INC.

CONDENSED STATEMENT OF SHAREHOLDERS DEFICITS

For the periods ended June 30, 2017 and 2016

(UNAUDITED)

 

 

Preferred stock

 

Common stock

 

Additional

 

 

 

 

 

 

 

 

 

 

 

 

 

Paid in

 

Accumulated

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

(Deficit)

 

Total

January 1, 2016

-

$

-

 

5,444,500

$

5,445

$

83,955

$

(59,484)

$

29,916

Net loss for the period ended

June 30, 2016

 

 

 

 

 

 

 

 

 

 

(12,610)

 

(12,610)

June 30, 2016

-

 

-

 

5,444,500

 

5,445

 

83,955

 

(72,094)

 

17,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2017

-

 

-

 

5,444,500

$

5,445

$

83,955

$

(95,681)

$

(6,281)

Net loss for the period ended

June 30, 2017

 

 

 

 

 

 

 

 

 

 

(12,897)

 

(12,897)

June 30, 2017

-

$

-

 

5,445,000

$

5,445

$

83,955

$

(108,578)

$

(19,178)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to unaudited condensed financial statements


5


LOCKBOX LINK, INC.

CONDENSED STATEMENT OF CASH FLOWS

For the periods ended June 30, 2017 and 2016

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

2017

 

2016

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

 

 

 

 

$

(12,897)

$

(12,610)

Adjustment to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in accounts payable and accrued expenses

 

2,406

 

3,360

 

Increase in loans payable and accrued interest

 

7,668

 

-

Net cash used in operating activities

 

 

 

(2,823)

 

(9,250)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows realized from financing activities:

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in cash and cash equivalents

 

 

 

(2,823)

 

(9,250)

 

 

 

 

 

 

 

 

 

 

 

 

Cash at the beginning of the period

 

 

 

4,004

 

15,651

 

 

 

 

 

 

 

 

 

 

 

 

Cash at end of period

 

 

 

$

1,181

$

6,401

 

See notes to unaudited condensed financial statements


6


Lockbox Link, Inc.

Notes to the Unaudited Condensed Financial Statements

June 30, 2017

 

1.Organization and basis of presentation 

 

LockBox Link, Inc. (the “Company”) is engaged in developing. producing, marketing and selling internet software applications to better facilitate transactions for the real estate industry. The Company was incorporated in the State of Nevada on April 10, 2014 with a principal office in Carson City. The Company is presently undertaking research and development in what will become its core line of products.

 

Basis of presentation

 

The accompanying interim condensed financial statements are unaudited, but in the opinion of management of Lockbox Link, Inc. (the Company), contain all adjustments, which include normal recurring adjustments, necessary to present fairly the financial position at June 30, 2017 and the results of operations and cash flows for the three and six months ended June 30, 2017. The balance sheet as of December 31, 2016 is derived from the Company’s audited financial statements.

 

Certain information and footnote disclosures normally included in financial statements that have been prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although management of the Company believes that the disclosures contained in these financial statements are adequate to make the information presented therein not misleading. For further information, refer to the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as filed with the Securities and Exchange Commission.

 

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, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expense during the reporting period. Actual results could differ from those estimates.

 

The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2017.

 

2.Summary of Significant Accounting Policies 

 

Election to be treated as an emerging growth company

 

In 2014, the Company elected to use the extended transition period now available for complying with new or revised accounting standards under Section 102(b) (1). This election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect 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 income and expenses during the reporting period. Actual results could differ from those estimates.


7


2.Summary of Significant Accounting Policies (continued) 

 

Cash and cash equivalents

 

For financial statement presentation purposes, the Company considers all short term investments with a maturity date of three months or less to be cash equivalents. The Company has no cash equivalents.

 

Recent Accounting Pronouncements

 

The Company reviewed all recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA and the SEC, and they did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

 

3.Going Concern. 

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, the company has no revenues, net accumulated losses since inception, and an accumulated deficit of $108,577. These factors raise substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the company’s ability to raise additional funds and implement its business plan. There can be no assurance that the Company will be able to obtain the additional capital resources necessary to implement its business plan or that any assumptions relating to its business plan will prove accurate.

 

These factors raise substantial doubt about our ability to continue as a going concern. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

4.Accounts payable and accrued liabilities 

 

As of June 30, 2017 and December 31, 2016, the Company has outstanding $12,690 and $10,285 in accounts payable and accrued expenses directly relating to operational expenses, legal fees, and compliance fees, respectively.

 

5.Notes payable and accrued interest 

 

During the month of April, 2017, we received loans from an unrelated party totaling $7,546 to pay for certain expenses. The loans are due in one year and bear simple interest of 8%. As of June 30, 2017 and December 31, 2016, the Company has outstanding $7,668, including $122 in accrued interest and $-0- in Notes payable and accrued interest.

 

As of June 30, 2017 and 2016, the Company has recorded $122 and $-0- in interest expense.

 

6.Stockholders’ Deficit 

 

Common Stock

 

The Company is currently authorized to issue 100,000,000 shares of common stock, par value $0.001 per share.

 

The Company has issued no shares of stock during the six months ended June 30, 2017 and the year ended December 31, 2016. As of June 30, 2017 and December 31, 2016, the company has 5,444,500 shares of common stock issued and outstanding.

 

Preferred Stock

 

The Company is currently authorized to issue 10,000,000 shares of preferred stock.

 

The Company issued no shares of preferred stock during the six months ended June 30, 2017 and the year ended December 31, 2016. As of June 30, 2017 and December 31, 2016, the company has no shares of preferred stock issued and outstanding.


8


7.Related party transactions 

 

The Company had an employment agreement with our sole representative Iryna Clark in 2016. That agreement was terminated as of March 31, 2016. We currently have no active employment agreements.

 

During the six month periods ended June 30, 2017 and 2016, the Company paid Ms. Clarke $-0- and $2,000 for her services, respectively.

 

8.Net loss per share 

 

Income (loss) per share is computed by dividing the net loss by the weighted average number of common shares of stock outstanding during the period. Diluted income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of the Company, subject to anti-dilution limitations. Basic and diluted (loss) per share were the same for the periods ended June 30, 2017 and 2016.

 

For the periods ended June 30, 2017 and 2016, the Company posted losses less than $0.01 per basic and diluted shares.


9


Item 2. Management’s Discussion and Analysis

 

THIS FILING CONTAINS FORWARD-LOOKING STATEMENTS. THE WORDS “ANTICIPATED,” “BELIEVE,” “EXPECT,” “PLAN,” “INTEND,” “SEEK,” “ESTIMATE,” “PROJECT,” “WILL,” “COULD,” “MAY,” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. THESE STATEMENTS INCLUDE, AMONG OTHERS, INFORMATION REGARDING FUTURE OPERATIONS, FUTURE CAPITAL EXPENDITURES, AND FUTURE NET CASH FLOW. SUCH STATEMENTS REFLECT THE COMPANY’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND FINANCIAL PERFORMANCE AND INVOLVE RISKS AND UNCERTAINTIES, INCLUDING, WITHOUT LIMITATION, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN FOREIGN, POLITICAL, SOCIAL, AND ECONOMIC CONDITIONS, REGULATORY INITIATIVES AND COMPLIANCE WITH GOVERNMENTAL REGULATIONS, THE ABILITY TO ACHIEVE FURTHER MARKET PENETRATION AND ADDITIONAL CUSTOMERS, AND VARIOUS OTHER MATTERS, MANY OF WHICH ARE BEYOND THE COMPANY’S CONTROL. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES OCCUR, OR SHOULD UNDERLYING ASSUMPTIONS PROVE TO BE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY AND ADVERSELY FROM THOSE ANTICIPATED, BELIEVED, ESTIMATED, OR OTHERWISE INDICATED. CONSEQUENTLY, ALL OF THE FORWARD-LOOKING STATEMENTS MADE IN THIS FILING ARE QUALIFIED BY THESE CAUTIONARY STATEMENTS AND THERE CAN BE NO ASSURANCE OF THE ACTUAL RESULTS OR DEVELOPMENTS.

 

The following discussion and analysis of our financial condition and plan of operations should be read in conjunction with our financial statements and related notes appearing elsewhere herein. This discussion and analysis contains forward-looking statements including information about possible or assumed results of our financial conditions, operations, plans, objectives and performance that involve risk, uncertainties and assumptions. The actual results may differ materially from those anticipated in such forward-looking statements. For example, when we indicate that we expect to increase our product sales and potentially establish additional license relationships, these are forward-looking statements. The words expect, anticipate, estimate or similar expressions are also used to indicate forward-looking statements. The following discussions should be read in conjunction with our financial statements and the notes thereto presented in “Item 1 – Financial Statements”.

 

GENERAL OVERVIEW

 

We were incorporated in the State of Nevada on April 10, 2014, as Lockbox Link, Inc. Our principal executive offices are located at 123 W. Nye Lane, Suite 129, Carson City, NV 89706. We intend to specialize in providing real estate agents in the United States the opportunity to increase customer satisfaction, improve productivity, and ensure business continuity by offering the agents’ clients a simplified, secure, and predictable home buying process. The company’s intended product is a cloud based software solution (SaaS) that is being developed to provide guidance and security to all the parties who participate in the home buying/selling process via limited control access and innovative user interface. Our proposed solution “Lockbox Link,” will be designed to take advantage of the structured flow and repeatability of existing real estate transaction processes. The Company has been doing business since April 10, 2014, when it was formed in the State of Nevada.

 

Lockbox Link is an “emerging growth company” within the meaning of the federal securities laws. For as long as we are an emerging growth company, we will not be required to comply with the requirements that are applicable to other public companies that are not “emerging growth companies” including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes Oxley Act, the reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and the exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. We intend to take advantage of these reporting exemptions until we are no longer an emerging growth company. Lockbox Link will continue to be an emerging growth company until the earliest to occur of (1) the last day of the fiscal year during which we had total annual gross revenues of at least $1 billion (as indexed for inflation), (2) the last day of the fiscal year following the fifth anniversary of the date of our initial public offering under this prospectus, (3) the date on which we have, during the previous three year period, issued more than $1 billion in nonconvertible debt and (4) the date on which we are deemed to be a “large accelerated filer,” as defined under the Securities Exchange Act of 1934, as amended (which we refer to as the “Exchange Act”). Lockbox Link also qualifies as a “smaller reporting company” under Rule 12b2 of the Securities Exchange Act of 1934, as amended, which is defined as a company with a public equity float of less than $75 million. To the extent that we remain a smaller reporting company at such time as we are no longer an emerging growth company, we will still have reduced disclosure requirements for our public filings some of which are similar to those of an emerging growth company including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes Oxley Act and the reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements.


10


Critical Accounting Policies

 

The accounting policies of the Company are in accordance with generally accepted accounting principles of the United States of America, and their basis of application is consistent. Outlined below are those policies considered particularly significant.

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. Actual results could differ from those estimates.

 

Research and Development

 

Research and development costs are charged to operations when incurred and are included in operating expenses.

 

Revenue Recognition

 

Sales will be recorded when users of the developed product subscribe to the service and payment is processed. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. No provision for discounts or rebates to customers, estimated returns and allowances or other adjustments have been recognized as of June 30, 2017. Our company has not made any sales as of June 30, 2017.

 

Results of Operations

 

Three Months Ended June 30, 2017 compared to the three months ended June 30, 2016.

 

At this time, we have not made any sales nor have we generated any revenue. The Company is still developing the software, which will be our core product.

 

Software development, general and administrative expenses, and legal and financial expenses were $12,239, with interest expense of $122, for a net loss of $12,361for the three months ending June 30, 2017. Our expenses for the three-month period ending June 30, 2016 were $7,524.

 

Six Months Ended June 30, 2017 compared to the six months ended June 30, 2016.

 

At this time, we have not made any sales nor have we generated any revenue. The Company is still developing the software, which will be our core product.

 

Software development, general and administrative expenses, and legal and financial expenses were $12,775, with interest expense of $122, for a net loss of $12,897 for the six months ending June 30, 2017. Our expenses for the six-month period ending June 30, 2016 were $12,610. The increase in losses year over year reflects an increase in costs of professional expenses, as well as increased accounts payable.


11


Liquidity and Capital Resources

 

The Company’s financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, the company has no revenues, net accumulated losses since inception, and an accumulated deficit of $108,577. These factors raise substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the company’s ability to raise additional funds and implement its business plan. There can be no assurance that the Company will be able to obtain the additional capital resources necessary to implement its business plan or that any assumptions relating to its business plan will prove accurate. The financial statements of the Company do not include any adjustments that might be necessary if the company is unable to continue as a going concern.

 

Since inception, the Company has financed its activities principally from shareholder equity investments. The Company intends on financing its future development activities and its working capital needs largely from the sale of equity securities, debt financing and loans from private individuals, until such time that funds provided by operations are sufficient to fund working capital requirements. There can be no assurance that the Company will be successful in achieving its financing goals at reasonably commercial terms, if at all.

 

Unpredictability of Future Revenues

 

As a result of our limited operating history, the continued development of our software, and whether the general public will accept that software, we are unable to accurately forecast future revenues. Our current and future expense levels are based largely on software development and professional fees. Such costs are to a significant extent fixed and expected to increase.

 

Sales and operating results generally depend on a number of factors, which are difficult to forecast. We may be unable to adjust spending in a timely manner to compensate for any unexpected revenue shortfall in the future, nor may we be able to anticipate significant obstacles to software development in a timely manner. Accordingly, any significant shortfall in future sales or unforeseen software development costs would have an immediate adverse effect on our business, prospects, financial condition and results of operations. Further, as a strategic response to changes in the competitive environment, we may from time to time make certain pricing, service or marketing decisions which could have a material adverse effect on our business, prospects, financial condition and results of operations.

 

We expect to experience significant fluctuations in our future quarterly operating results due to a variety of factors, some of which are outside of our control.

 

Off-Balance Sheet Arrangements

 

The Company is not currently engaged in any off-balance sheet arrangements, as defined by Item 303(c)(2) of Regulation S-B. The Company has not engaged in any off-balance sheet arrangements during the last fiscal year, and is not reasonably likely to engage in any off-balance sheet arrangements in the near future.

 

Emerging Growth Company

 

We are an “emerging growth company” under the federal securities laws and will be subject to reduced public company reporting requirements. In addition, Section 107 of the JOBS Act also provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We are choosing to take advantage of the extended transition period for complying with new or revised accounting standards. As a result, our financial statements may not be comparable to those of companies that comply with public company effective dates.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.


12


Item 4. Controls and Procedures

 

Management’s Report on Internal Control Over Financial Reporting

 

Management evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act), as of June 30, 2017, the end of the fiscal period covered by this Quarterly Report on Form 10-Q. SEC rules define the term “disclosure controls and procedures” to mean a company’s controls and other procedures that are designed to ensure that information required to be disclosed in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time period 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 a company in its reports filed under the Exchange Act is accumulated and communicated to the company’s 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, including the Chief Executive Officer and Chief Financial Officer (our principal executive officer and principal financial officer, respectively), carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of June 30, 2017 to ensure that the information required to be disclosed in the reports filed or submitted by us under the Exchange Act was recorded, processed, summarized and reported within the requisite time periods and that such information was accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow for timely decisions regarding required disclosure.

 

ITEM 4T. CONTROLS AND PROCEDURES.

 

(a) Evaluation of Disclosure Controls and Procedures. The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended). Management conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting based on the criteria set forth in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this evaluation, management has concluded that the Company’s internal control over financial reporting and procedures was not effective as of June 30, 2017. 

 

(b) Changes in Internal Control over Financial Reporting. There were no changes in the Company's internal controls over financial reporting, known to the chief executive officer or the chief financial officer that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, 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 any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

 

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

 

None.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Submission of Matters to a Vote of Security Holders.

 

None.

 

Item 5. Other Information

 

None.


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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

 

 

 

LOCKBOX LINK, INC.

 

 

(Registrant)

 

 

 

Date: August 2, 2017

By:

/s/ Iryna Clark

 

 

Iryna Clark

 

 

CEO

 

 

 


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