Attached files
| file | filename |
|---|---|
| EX-32 - EXHIBIT 32 - INTERDYNE CO | ex32.htm |
| EX-31.2 - EXHIBIT 31.2 - INTERDYNE CO | ex31_2.htm |
| EX-31.1 - EXHIBIT 31.1 - INTERDYNE CO | ex31_1.htm |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended June 30, 2017
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File No. 0-4454
INTERDYNE COMPANY
(Exact name of registrant as specified in its charter)
|
California
|
95-2563023
|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
26 Briarwood
|
||
|
Irvine, CA
|
92604
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Registrant's telephone number, including area code: (805) 322-3883
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Common Stock, no par value
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ☐ No ☒
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes ☐ No ☒
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.
Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, 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 ☒ No ☐
Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-K contained in this form, and no disclosure will be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
|
Large accelerated Filer ☐
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company ☒
|
| Emerging growth company ☒ |
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. ☒
Indicate by check whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☒ No ☐
Total revenues for registrant’s fiscal year ended June 30, 2017 were zero.
The aggregate market value of voting Common Stock held by non-affiliates of the registrant on December 31, 2016 was $284,000.
As of September 13, 2017, there were 39,999,942 shares of Common Stock, no par value, issued and outstanding.
Transfer Agent for the Company is: OTR Inc., 1001 SW Fifth Ave., Suite 1550, Portland, OR 97204-1143, Tel: 503-225-0375.
FORM 10-K
INTERDYNE COMPANY
|
PART I
|
||
|
Item 1.
|
3
|
|
|
Item 2.
|
3
|
|
|
Item 3.
|
3
|
|
|
Item 4.
|
3
|
|
|
PART II
|
||
|
Item 5.
|
3
|
|
|
Item 6.
|
4
|
|
|
Item 7.
|
4
|
|
|
Item 7A.
|
5
|
|
|
Item 8.
|
5
|
|
|
Item 9.
|
13
|
|
|
Item 9A.
|
13
|
|
|
Item 9B.
|
14
|
|
|
PART III
|
||
|
Item 10.
|
14
|
|
|
Item 11.
|
15
|
|
|
Item 12.
|
15
|
|
|
Item 13.
|
15
|
|
|
Item 14.
|
16
|
|
|
Item 15.
|
16
|
|
|
17
|
||
For purposes of this report, unless otherwise indicated or the context otherwise requires, all references herein to “Interdyne Company”, “the Company”, “we,” “us,” and “our,” refer to Interdyne Company, a California corporation.
Forward-Looking Statements
The following discussion contains forward-looking statements regarding us, our business, prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Factors that may affect such forward-looking statements include, without limitation: our ability to successfully develop new products and services for new markets; the impact of competition on our revenues, changes in law or regulatory requirements that adversely affect or preclude clients from using us for certain applications; delays our introduction of new products or services; and our failure to keep pace with our competitors.
When used in this discussion, words such as “believes”, “anticipates”, “expects”, “intends” and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. Readers are urged to carefully review and consider the various disclosures made by us in this report and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business.
PART I
The Company is currently dormant and is looking for new opportunities.
The Company uses the home office of an officer. This officer charges the Company $6,000 per annum during fiscal years 2017 and 2016 for the use of his home office and for providing accounting and other services.
The Company is not a party to any pending legal proceedings and no such proceedings are known to be contemplated.
No matter was submitted to a vote of security holders of the Company during the fiscal year 2017.
PART II
The following table sets forth the range of low and high bid prices for the Company's common stock, for each fiscal quarter commencing July 1, 2014 and ending June 30, 2017. The prices for year ended June 30, 2017 were extracted from the Nasdaq website. Such quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and do not necessarily represent actual transactions.
|
2014
|
Low
|
High
|
||||||
|
Quarter ended September 30
|
$
|
0.015
|
$
|
0.018
|
||||
|
Quarter ended December 31
|
$
|
0.015
|
$
|
0.0186
|
||||
|
2015
|
||||||||
|
Quarter ended March 31
|
$
|
0.015
|
$
|
0.0156
|
||||
|
Quarter ended June 30
|
$
|
0.015
|
$
|
0.02
|
||||
|
Quarter ended September 30
|
$
|
0.0151
|
$
|
0.0171
|
||||
|
Quarter ended December 31
|
$
|
0.0085
|
$
|
0.02
|
||||
|
2016
|
||||||||
|
Quarter ended March 31
|
$
|
0.0085
|
$
|
0.0085
|
||||
|
Quarter ended June 30
|
$
|
0.0085
|
$
|
0.009
|
||||
|
Quarter ended September 30
|
$
|
0.009
|
$
|
0.009
|
||||
|
Quarter ended December 31
|
$
|
0.009
|
$
|
0.02
|
||||
|
2017
|
||||||||
|
Quarter ended March 31
|
$
|
0.011
|
$
|
0.02
|
||||
|
Quarter ended June 30
|
$
|
0.011
|
$
|
0.07
|
||||
As of August 31, 2017, the high and low bid prices for the Company's Common Stock were $0.015 and $0.015 respectively. There were approximately 1,620 record owners of such Common Stock. To management's knowledge, the Company has never paid dividends on its common stock. The Company does not intend to pay dividends in the foreseeable future.
Not applicable to smaller reporting companies.
The Company is currently dormant and is looking for new opportunities.
Results of Operations
The Company is currently dormant and therefore does not generate any revenue other than the interest income it earns from the advances to an affiliated company detailed below.
Between October 8, 1990 and June 30, 1991, the Company made advances to Acculogic, Inc., an affiliate, totaling $395,000. At June 30, 2017, there was no outstanding balance due from Acculogic, Inc. The advances bear interest at a rate of 8.5% per annum and is payable on demand. Interest earned from the affiliate was $1,100 and $16,180 for the years ended June 30, 2017 and 2016, respectively. On July 25, 2016, the outstanding amount of $195,204 due from Acculogic, Inc. was repaid in full.
For the year ended June 30, 2017, the following expenses were incurred:
| 1. |
Professional fees of $11,796 for auditing and $600 for tax preparation compared to $10,165 and $750, respectively, in the previous year;
|
| 2. |
General and administrative expenses totaled $10,222 compared to $9,217 in the previous year;
|
| 3. |
Management fee of $6,000 remained unchanged compared to the previous year’s.
|
As a result of a much lower interest income from Acculogic, Inc., $1,100 in this fiscal year compared to $16,180 in the previous year, the Company reported a higher net loss of $28,318 compared to a net loss of $10,752 in the previous year.
Liquidity and Capital Resources
For year ended June 30, 2017, Acculogic, Inc. repaid the Company the full amount outstanding of $195,204. As of June 30, 2017, the Company has a cash balance of $147,611. The Company has sufficient cash in hand to fund its operations for the next twelve months.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
Employees
The Company presently has no employees and is managed by the two incumbent directors: Sun Tze Whang, Chairman of the Board and Chief Executive Officer, and Kit Heng Tan, Chief Financial Officer/Principal Accounting Officer and Secretary. Kit Heng Tan charged the Company the sum of $6,000 per annum for fiscal years 2017 and 2016 for providing accounting and other services and also for the use of his home office. Neither of the Company's officers is currently represented by any labor union.
Not applicable to smaller reporting companies.
The audited financial statements as of June 30, 2017 and 2016 and for the years then ended are set forth on the following pages.
Report of Independent Registered Public Accounting Firm
Board of Directors and Stockholders
Interdyne Company
We have audited the accompanying balance sheets of Interdyne Company (the “Company”) as of June 30, 2017 and 2016, and the related statements of operations, stockholders’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the entity’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Interdyne Company as of June 30, 2017 and 2016, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
/s/ MaloneBailey, LLP
www.malonebailey.com
Houston, Texas
September 13, 2017
INTERDYNE COMPANY
BALANCE SHEETS
JUNE 30, 2017 AND 2016
|
ASSETS
|
2017
|
2016
|
||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash
|
$
|
147,611
|
$
|
2,065
|
||||
|
Due from related party
|
-
|
194,104
|
||||||
|
Total current assets
|
$
|
147,611
|
$
|
196,169
|
||||
|
TOTAL ASSETS
|
$
|
147,611
|
$
|
196,169
|
||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Accrued professional fees
|
$
|
7,100
|
$
|
6,600
|
||||
|
Due to related party
|
3,000
|
22,149
|
||||||
|
Other accrued expenses
|
2,375
|
3,966
|
||||||
|
Total current liabilities
|
12,475
|
32,715
|
||||||
|
STOCKHOLDERS' EQUITY:
|
||||||||
|
Preferred stock, no par value; 50,000,000 shares authorized; 0 shares issued and outstanding
|
-
|
-
|
||||||
|
Common stock, no par value; 100,000,000 shares authorized; 39,999,942 shares issued and outstanding as of June 30, 2017 and 2016
|
500,000
|
500,000
|
||||||
|
Accumulated deficit
|
(364,864
|
)
|
(336,546
|
)
|
||||
|
Total stockholders' equity
|
135,136
|
163,454
|
||||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
147,611
|
$
|
196,169
|
||||
See accompanying notes to financial statements.
INTERDYNE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED JUNE 30, 2017 AND 2016
|
2017
|
2016
|
|||||||
|
OPERATING EXPENSES:
|
||||||||
|
Professional fees
|
$
|
12,396
|
$
|
10,915
|
||||
|
General and administrative
|
10,222
|
9,217
|
||||||
|
Management fees to related party
|
6,000
|
6,000
|
||||||
|
Total expenses
|
28,618
|
26,132
|
||||||
|
OPERATING LOSS
|
(28,618
|
)
|
(26,132
|
)
|
||||
|
OTHER INCOME:
|
||||||||
|
Interest from related party
|
1,100
|
16,180
|
||||||
|
Total other income
|
1,100
|
16,180
|
||||||
|
LOSS BEFORE INCOME TAXES
|
(27,518
|
)
|
(9,952
|
)
|
||||
|
INCOME TAX EXPENSE
|
(800
|
)
|
(800
|
)
|
||||
|
NET LOSS
|
$
|
(28,318
|
)
|
$
|
(10,752
|
)
|
||
|
NET LOSS PER COMMON SHARE
|
||||||||
|
BASIC AND DILUTED
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
||
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
|
||||||||
|
BASIC AND DILUTED
|
39,999,942
|
39,999,942
|
||||||
See accompanying notes to financial statements.
INTERDYNE COMPANY
STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED JUNE 30, 2017 AND 2016
|
Common Stock
|
Additional
Paid-in
|
Accumulated
|
Total
Stockholders’
|
|||||||||||||||||
|
Shares
|
Amount
|
Capital
|
Deficit
|
Equity
|
||||||||||||||||
|
Balance, June 30, 2015
|
39,999,942
|
$
|
500,000
|
$
|
-
|
$
|
(325,794
|
)
|
$
|
174,206
|
||||||||||
|
Net Loss
|
(10,752
|
)
|
(10,752
|
)
|
||||||||||||||||
|
Balance, June 30, 2016
|
39,999,942
|
500,000
|
-
|
(336,546
|
)
|
163,454
|
||||||||||||||
|
Net Loss
|
(28,318
|
)
|
(28,318
|
)
|
||||||||||||||||
|
Balance, June 30, 2017
|
39,999,942
|
$
|
500,000
|
$
|
-
|
$
|
(364,864
|
)
|
$
|
135,136
|
||||||||||
See accompanying notes to financial statements.
INTERDYNE COMPANY
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2017 AND 2016
|
2017
|
2016
|
|||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
|
Net loss
|
$
|
(28,318
|
)
|
$
|
(10,752
|
)
|
||
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Interest due from related party
|
(1,100
|
)
|
(16,180
|
)
|
||||
|
Due to related party
|
(18,500
|
)
|
6,624
|
|||||
|
Accrued professional fees
|
500
|
(3,400
|
)
|
|||||
|
Other accrued expenses
|
(1,566
|
)
|
(767
|
)
|
||||
|
Net cash used in operating activities
|
(48,984
|
)
|
(24,475
|
)
|
||||
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
|
Cash received from related party
|
195,204
|
18,975
|
||||||
|
Net cash provided by investing activities
|
195,204
|
18,975
|
||||||
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
|
Repayment to related party
|
(674
|
)
|
-
|
|||||
|
Net cash used in financing activities
|
(674
|
)
|
-
|
|||||
|
Net increase/ (decrease) in cash
|
145,546
|
(5,500
|
)
|
|||||
|
CASH, BEGINNING OF YEAR
|
2,065
|
7,565
|
||||||
|
CASH, END OF YEAR
|
$
|
147,611
|
$
|
2,065
|
||||
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
|
||||||||
|
Income taxes paid
|
$
|
800
|
$
|
800
|
||||
|
Interest paid
|
$
|
-
|
$
|
-
|
||||
|
NON-CASH TRANSACTIONS
|
||||||||
|
Operation expenses paid by related party
|
$
|
25
|
$
|
25
|
||||
See accompanying notes to financial statements.
INTERDYNE COMPANY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2017 and 2016
|
1.
|
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
Nature of Business - Interdyne Company (the "Company") was incorporated in October 1946 in the state of California. The Company is a dormant shell currently seeking new opportunities. On November 22, 1988, the Company filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Central District of California. On May 17, 1990, the Company’s Amended Plan of Reorganization (the “Plan”) was confirmed by Bankruptcy Court, and the Plan became effective May 29, 1990. On July 20, 1990, the Bankruptcy Court approved a stipulation for nonmaterial modifications to the Plan. All claims and interest have been settled in accordance with the terms of the Plan. On August 22, 1990, the Board of Directors approved a change in the Company’s year-end to June 30, pursuant to the Plan.
Related party – The Company follows ASC 850, “Related Party Disclosure”, for the identification of related parties and disclosure of related party transactions. A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.
Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated.
Concentrations of Credit Risk – The Company does not have any asset that exposes it to credit risk.
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of a receivable due from an affiliate. Due to a guarantee of the amount by a different credit-worthy affiliate, an allowance for possible losses has not been made.
Income Taxes – The Company accounts for income taxes in accordance with the provisions of the Financial Accounting Standards Board (“FASB”) codified within Accounting Standards Codification (“ASC”) Topic No. 740-10, Income Taxes. Deferred income taxes are recognized for the temporary differences between the tax basis of assets and liabilities and their financial reporting amounts. The Company assesses, on an annual basis, the realizability of its deferred tax assets. A valuation allowance for deferred tax assets is established if, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized.
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 certain estimates and assumptions that affect the reported amounts and timing of revenues and expenses, the reported amounts and classification of assets and liabilities, and the disclosure of contingent assets and liabilities. These estimates and assumptions are based on the Company’s historical results as well as management’s future expectations. The Company’s actual results may vary from those estimates and assumptions.
Reclassifications – Certain prior year amounts have been reclassified to conform with the current year presentation. These reclassifications had no impact on net earnings and financial position.
Net Loss per Share – The Company adopted ASC No. 260, “Earnings Per Share”, that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (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. In accordance with ASC No. 260, “Earnings Per Share”, any anti-dilutive effects on net income (loss) per share are excluded. The Company has no potentially dilutive securities outstanding for any years presented. Weighted average shares for computing net loss per share were 39,999,942 for each of the years presented.
Fair value of Financial Instruments- The Company applies the provisions of accounting guidance, FASB Topic ASC 825 that requires all entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value, and defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties.
Fair value Measurement- Our financial instruments consist principally of cash, due from related party, accrued professional fee, due to related party and other accrued expenses. ASC 820, Fair Value Measurements and Disclosures and ASC 825, Financial Instruments establish a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements.
Fair Value Hierarchy
The Company has categorized its financial instruments, based on the priority of inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).
Financial assets and liabilities recorded on the balance sheet are categorized based on the inputs to the valuation techniques as follows:
| Level 1 |
Financial assets and liabilities for which values are based on unadjusted quoted prices for identical assets or liabilities in an active market that management has the ability to access.
|
| Level 2 |
Financial assets and liabilities for which values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability (commodity derivatives and interest rate swaps).
|
| Level 3 |
Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
|
When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. The carrying amounts of cash, accrued professional fees and other accrued expenses approximate fair value because of the short-term nature of these items. Per ASC Topic 820 framework these are considered Level 3 inputs where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company.
It is not, however, practical to determine the fair value of amounts due from related party and due to related party because the transactions cannot be assumed to have been consummated at arm’s length, the terms are not deemed to be market terms, there are no quoted values available for these instruments, and an independent valuation would not be practical due to the lack of data regarding similar instruments, if any, and the associated potential costs.
Recent Accounting Pronouncements –Management has reviewed all recent accounting pronouncements and determined that none will have a material impact on the Company’s present or future financial statements.
|
2.
|
RELATED PARTY TRANSACTIONS
|
In prior years, the Company made advances to Acculogic, Inc., an affiliated company through common ownership and management. The advances bear interest at a rate of 8.5% per annum, payable on demand. The balance including interest was guaranteed by AMT Datasouth Corp., an affiliated company controlled by the Chief Executive Officer of the Company. The balance due from Acculogic Inc. as of June 30, 2016 was $194,104 including interests. On July 25, 2016, the total amount due from Acculogic, Inc. has been repaid in full and consequently the guarantee ceased to be valid.
An officer of the Company charged a management fee totaling $6,000 for each of the years ended June 30, 2017 and 2016 for the use of a home office, accounting and other services. During the years ended June 30, 2017 and 2016, the officer also paid operating expense of $25 and $25, respectively, on behalf of the Company to support the Company’s operation. During the year ended June 30, 2017, the Company repaid $674 to this officer for the expense paid on behalf of the Company. The balance due to this officer was $3,000 and $22,149 as of June 30, 2017 and June 30, 2016, respectively. The amounts due to this officer are unsecured, bearing no interest and are repayable on demand.
| 3. |
INCOME TAXES
|
Income taxes for the years ended June 30, 2017 and 2016 represent state minimum franchise tax of $800. The Company had net operating loss carryovers for federal income tax purposes totaling approximately $98,797 and $70,480, as of the years ended June 30, 2017 and 2016, respectively. The ultimate realization of such loss carryovers will be dependent on the Company attaining future taxable earnings. Based on the level of historical operating results and projections of future taxable earnings, management believes that it is more likely than not that the Company will not be able to utilize the benefits of these carryovers. Therefore, a full valuation allowance has been recorded against the gross deferred tax assets arising from the June 30, 2017 and 2016 loss carryovers based on 34% enacted federal tax rate in the amount of $33,591 and $23,964, respectively. If not utilized, the carryovers expire beginning in fiscal 2026.
The Company files income tax returns in the U.S. federal jurisdiction and in the state of California. With few exceptions, the Company is no longer subject to U.S. federal and state tax examinations by tax authorities for the years ending June 30, 2011 and earlier. According to Section 382 of the Internal Revenue Code of 1986, as amended (the "Code"), ownership changes may limit the amount of the NOL carry forwards that can be utilized annually to offset future taxable income and tax, respectively.
| 4. |
Commitments and Contingencies
|
In March 2017, the Company received a letter from the County of Santa Clara, California, which claimed that the Company is delinquent on its property taxes relating to tax year 1988/1989 in the amount of $80,238.07 including penalties which should be paid immediately. The Company believes that these property taxes were related to the period prior to the filing of the reorganization of the Company under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Central District of California on November 22, 1988 and the eventual confirmation of the Company’s Amended Plan of Reorganization (the “Plan”) by the Bankruptcy Court on May 17, 1990, and thus have been settled in accordance with the terms of the Plan and are therefore invalid. The Company has informed the County of Santa Clara that if it wants to assert its claim, it would have to petition to the Bankruptcy Court for relief. The Company does not recognize the said claim and therefore has not recorded any tax liabilities related to this claim. If the County of Santa Clara claim is adjudicated to be valid and the Company is liable, the tax liabilities imposed could have a material effect on the Company’s result of operations and financial position.
None.
Disclosure Controls - The Company’s management, comprising the Chief Executive Officer and Chief Financial Officer/Principal Accounting Officer, is responsible for establishing and maintaining disclosure controls and procedures for the Company. Management has designed such disclosure controls and procedures to ensure that material information is made known to them, particularly during the period in which this report was prepared. As of the end of the period covered by this report, our management carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (or Exchange Act)). Based on this evaluation, as of the end of the period covered by this report, our management has concluded that our disclosure controls and procedures are not effective considering the fact that the Company, being dormant, has only one person on staff, the Chief Financial Officer/Principal Accounting Officer, to (1) handle all accounting transactions (consisting of primarily collecting funds from a related party and paying all expenses, including fees to this same officer); (2) reconcile the bank account, and (3) prepare all financial statement disclosures. The above duties have no supervision or review to insure proper segregation of duties and review of disclosures. As a result, material weaknesses over disclosure controls and procedures exist.
Management's Report on Internal Control Over Financial Reporting – The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). The Company’s management conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of June 30, 2017 based on the criteria set forth in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organization of the Treadway Commission. Based on this evaluation, our management has concluded that our internal control over financial reporting was not effective as of June 30, 2017 because of the following material weakness as of June 30, 2017: (i) lack of supervision or review to insure proper internal control over financial reporting, (ii) inadequate segregation of duties and effective risk assessment, (iii) lack of well-established procedures to authorize and approve related party transactions. As a result, material weakness over internal control over financial reporting exists.
This annual report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our independent registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only management’s report in this annual report on Form 10-K.
Changes in Internal Controls - During the year ended June 30, 2017, there has not been any change in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
None
PART III
The following table sets forth the names and ages of the directors and executive officers of the Company as of the date of this report, and indicates all positions and offices with the Company held by each person:
|
Name
|
Age
|
Position
|
|
Dr. Sun Tze Whang
|
73
|
Chairman of the Board and Chief Executive Officer
|
|
Kit Heng Tan
|
67
|
Chief Financial Officer/Principal Accounting Officer and Secretary
|
The terms of office of each director of the Company ends at the next annual meeting of the Company's shareholders or when his or her successor is elected and qualified. No date for the next annual meeting of shareholders has been fixed by the Board of Directors. The term of office of each officer of the Company ends at the next annual meeting of the Company's Board of Directors which is expected to take place immediately after the next annual meeting of shareholders. Except as otherwise indicated below, no organization by which any officer or director previously has been employed is an affiliate, parent, or subsidiary of the Company. The Company's Bylaws provide that the number of directors of the Company shall be not less than five nor more than nine. The exact number of directors is set at five unless changed within the foregoing limits by a bylaw adopted by the Board of Directors or the shareholders. At present, there are two persons serving as directors and three vacancies on the Board of Directors.
Dr. Sun Tze Whang has been Chairman of the Board and Chief Executive Officer since August 17, 1990. From December 1994 to the present, Dr. Whang has been a director of Metal Containers Pte Ltd ("Metal Containers"), a company incorporated in the Republic of Singapore, engaged in the manufacturing and sale of metal containers and in investment activities. Metal Containers is the ultimate parent company of Acculogic, Inc. From January 1985 to the present, Dr. Whang has also been a director of Riviera Development Pte. Ltd. ("Riviera"), a company incorporated in the Republic of Singapore, whose principal business is investment holding. Riviera is a 53.2% owned subsidiary of Metal Containers. From May 1985 to the present, Dr. Whang has also been the Chairman and a director of Carlee Electronics Pte. Ltd. ("Carlee Electronics"), a company incorporated in the Republic of Singapore, whose principal business is the manufacture and sale of industrial electronic products. Carlee is a 64.3% owned subsidiary of Riviera and the controlling shareholder of the Company. From October 1972 to the present, Dr. Whang has been a director of Lam Soon (Hong Kong) Limited, a company incorporated in Hong Kong and listed on the Stock Exchange of Hong Kong. From October 1984 to the present, Dr. Whang has been a director of AMT Datasouth Corp. (previously known as Advanced Matrix Technology, Inc.), a California corporation, which is an affiliate of Metal Containers.
Kit Heng Tan has been Chief Financial Officer/Principal Accounting Officer, Secretary and a director of the Company since August 17, 1990. On June 8, 2006, Mr. Tan was appointed as director of Metal Containers. From October 1989 to the present, Mr. Tan has been a director and also the Chief Financial Officer of Acculogic, Inc., a California corporation, which is an affiliate of Metal Containers. From April 1990 to the present, Mr. Tan has been the Chief Financial Officer and a director of AMT Datasouth Corp. (previously known as Advanced Matrix Technology, Inc.), a California corporation, which is an affiliate of Metal Containers. Mr. Tan is a Chartered Accountant of England & Wales and a Chartered Accountant of Singapore.
For the fiscal years ended June 30, 2017 and 2016, there was no cash compensation paid to executive officers of the Company other than a sum of $6,000 per annum charged by an officer of the Company for each of the fiscal years 2017 and 2016 for providing accounting and other services and for the use of a home office.
|
ITEM 12.
|
The following sets forth information, as of June 30, 2017, with respect to the beneficial ownership of the Company's Common Stock, no par value, by each person known by the Company to be the beneficial owner of more than five percent (5%) of the outstanding Common Stock, by each of the Com-pany's directors, and by the officers and directors of the Company as a group:
|
Beneficial Owner
|
Shares Owned
Beneficially
and of Record
|
Percent of Class
|
||||||
|
Carlee Electronics Pte. Ltd.
159 Gul Circle
Singapore 629617
|
25,800,000
|
64.5%
|
||||||
|
Officers and directors as a group (two persons)
|
(1)
|
(1)
|
||||||
(1) By virtue of Dr. Sun Tze Whang's direct and indirect ownership of Carlee Electronics Pte. Ltd., he may be deemed the beneficial owner of the shares held by Carlee Electronics Pte. Ltd. in the Company.
The Company is not aware of any voting trusts.
The Company's capital consists of 100,000,000 shares of Common Stock, no par value and 50,000,000 shares of Preferred Stock, no par value. As of the date hereof, 39,999,942 shares of Common Stock have been issued and are outstanding.
Between October 8, 1990 and June 30, 1991, the Company made advances to Acculogic, Inc., an affiliate, totaling $395,000. At June 30, 2017, there was no outstanding balance due from Acculogic, Inc. The advances bear interest at a rate of 8.5% per annum and is payable on demand. Interest earned from the affiliate was $1,100 and $16,180 for the years ended June 30, 2017 and 2016, respectively. On July 25, 2016, the total amount due from Acculogic, Inc. was repaid in full.
The Company uses the home office of an officer at 26 Briarwood, Irvine, CA 92604, and was charged management fees of $6,000 per annum by the officer for each of the fiscal years 2017 and 2016 for the use of the home office and for providing accounting and other services. During the year ended 2017 and 2016, the officer paid expenses in the amount of $25 and $25 on behalf of the Company to support the Company’s operation, respectively. The amounts due to the officer are unsecured, bearing no interest and are repayable on demand.
Dr. Sun Tze Whang may be considered to be the indirect beneficial owner of the shares of the Company's stock owned by Carlee Electronics, and thus Dr. Whang would be considered a control person of the Company.
Audit Fees
The aggregate fees billed to the Company for professional services rendered for the audit of the Company's annual financial statements, review of the Company's quarterly financial statements, and other services normally provided in connection with statutory and regulatory filings or engagements was $11,796 in the fiscal year ended June 30, 2017, and $10,165 in the fiscal year ended June 30, 2016.
Other Fees
Other fees billed to the Company by its independent registered public accounting firm for the preparation of its required federal and state income tax returns totaled $600 and $800 for the fiscal years ended June 30, 2017, and June 30, 2016 respectively.
| a. |
The following financial statements are filed as part of this report:
|
Report of Independent Registered Public Accounting Firm
Interdyne Company Balance Sheets at June 30, 2017 and 2016
Interdyne Company Statements of Operations for the Years Ended June 30, 2017 and 2016
Interdyne Company Statements of Stockholders’ Equity for the Years Ended June 30, 2017 and 2016
Interdyne Company Statements of Cash Flows for the Years Ended June 30, 2017 and 2016
Notes to Financial Statements
| b. |
No financial statement schedules are filed as part of this report.
|
| c. |
The following exhibits are filed as part of this report:
|
|
Exhibit No.
|
Description
|
|
|
Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002
|
||
|
Certification of Chief Financial Officer/ Principal Accounting Officer pursuant to Section302 of Sarbanes-Oxley Act of 2002
|
||
|
Section 1350 Certification
|
| d. |
The following XBRL documents are filed as part of this report:
|
|
101.INS
|
XBRL Instance Document
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
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 hereunto duly authorized.
Dated: September 13, 2017
|
INTERDYNE COMPANY
|
||
|
(Registrant)
|
||
|
By:
|
/s/ Kit H. Tan
|
|
|
Kit H. Tan
|
||
|
Chief Financial Officer/
|
||
|
Principal Accounting Officer
|
||
In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated.
|
Signature & Title
|
Capacity
|
Date
|
|
/s/ Sun Tze Whang
|
||
|
Sun Tze Whang
|
Director and
|
September 13, 2017
|
|
Chief Executive Officer
|
Chief Executive Officer
|
|
|
/s/ Kit H. Tan
|
||
|
Kit H. Tan
|
Director and
|
September 13, 2017
|
|
Chief Financial Officer/
|
Chief Financial Officer/
|
|
|
Principal Accounting Officer
|
Principal Accounting Officer
|
17