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 MARCH 31, 2012
Commission file number 333-178883
ALMAH, INC.
(Exact name of registrant as specified in its charter)
NEVADA
(State or other jurisdiction of incorporation or organization)
Pembroke House, 28-32 Pembroke St Upper, Dublin 2, Ireland
(Address of principal executive offices, including zip code.)
353-871536401
(Telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the last 90 days. YES [X] 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 (ss.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,"
"non-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 [ ]
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 4,000,000 shares as of May 1, 2012
ITEM 1. FINANCIAL STATEMENTS
ALMAH, INC.
(A Development Stage Company)
Balance Sheets
March 31, September 30,
2012 2011
-------- --------
(unaudited)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $ 5,048 $ 17,925
Prepaid Expense -- 99
-------- --------
TOTAL CURRENT ASSETS $ 5,048 $ 18,024
======== ========
LIABILITIES AND STOCKHOLDERS EQUITY
CURRENT LIABILITIES
Note payable - Related party $ 61 $ 61
Accrued expenses -- 3,000
-------- --------
TOTAL CURRENT LIABILITIES 61 3,061
======== ========
SHAREHOLDERS' EQUITY
Common Stock - $0.001 par value; 75,000,000 shares authorized; 4,000 4,000
4,000,000 shares issued and outstanding
Additional paid-in-capital 16,000 16,000
Deficit accumulated during development stage (15,013) (5,037)
-------- --------
TOTAL STOCKHOLDERS' EQUITY 4,987 14,963
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,048 $ 18,024
======== ========
See accompanying notes to financial statements
2
ALMAH, INC.
(A Development Stage Company)
Statement of Operations
(unaudited)
Cumulative from
Six Months Six Months Three Months Three Months September 16, 2009
Ended Ended Ended Ended (Inception) to
March 31, March 31, March 31, March 31, March 31,
2012 2011 2012 2011 2012
---------- ---------- ---------- ---------- ----------
REVENUES $ -- $ -- $ -- $ -- $ --
---------- ---------- ---------- ---------- ----------
OPERATING EXPENSES
General & administrative expenses 9,976 -- 9,108 -- 15,013
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 9,976 9,108 15,013
LOSS BEFORE INCOME TAX EXPENSE (9,976) -- (9,108) -- (15,013)
---------- ---------- ---------- ---------- ----------
Income tax expense -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net loss $ (9,976) $ -- $ (9,108) $ -- $ (15,013)
---------- ---------- ---------- ---------- ----------
Basic and diluted net loss per share $ (0.00) $ -- $ (0.00) $ --
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 4,000,000 $ -- 4,000,000 $ --
========== ========== ========== ==========
See accompanying notes to financial statements
3
ALMAH, INC.
(A Development Stage Company)
Statements of Cash Flows
(unaudited)
Cumulative from
Six Months Six Months Three Months Three Months September 16, 2009
Ended Ended Ended Ended (Inception) to
March 31, March 31, March 31, March 31, March 31,
2012 2011 2012 2011 2012
-------- -------- -------- -------- --------
CASH FLOWS FROM OPERATIING ACTIVITIES:
Net (Loss) $ (9,976) $ -- $ (9,108) $ -- $(15,013)
Changes in operating assets and liabilities
Prepaid Expenses 99 --
Accrued expenses (3,000) --
-------- -------- -------- -------- --------
NET CASH USED IN OPERATING ACTIVITIES (12,877) -- (9,108) -- (15,013)
-------- -------- -------- -------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Note payable - related party -- 61
Proceeds from sale of common stock 20,000
-------- -------- -------- -------- --------
NET CASH PROVIDED BY FINANCING ACTIVITIES -- -- -- -- 20,061
-------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (12,877) -- (9,108) -- 5,048
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 17,925 -- 14,156 -- --
-------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 5,048 $ -- $ 5,048 $ -- $ 5,048
======== ======== ======== ======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest $ -- $ -- $ -- $ -- $ --
-------- -------- -------- -------- --------
Income Taxes $ -- $ -- $ -- $ -- $ --
-------- -------- -------- -------- --------
See accompanying notes to financial statements
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1. BASIS OF PRESENTATION
The accompanying unaudited financial statements of Almah, Inc. (the "Company")
reflect all material adjustments consisting of only normal recurring adjustments
which, in the opinion of management, are necessary for a fair presentation of
results for the interim periods. Certain information and footnote disclosures
required under accounting principles generally accepted in the United States of
America have been condensed or omitted pursuant to the rules and regulations of
the Securities and Exchange Commission, although the Company believes that the
disclosures are adequate to make the information presented not misleading. These
financial statements should be read in conjunction with the financial statements
and notes thereto for the year ended September 30, 2011.
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.
Estimates that are particularly susceptible to change include assumptions used
in determining the fair value of securities owned and non-readily marketable
securities.
The results of operations for the six months ended March 31, 2012 are not
necessarily indicative of the results to be expected for the entire year or for
any other period.
2. BUSINESS
The Company was incorporated under the laws of the State of Nevada on September
16, 2009.The company is in the development stage and it intends distribute
automobile spare parts online.
The Company has not generated any revenue to date and consequently its
operations are subject to all risks inherent in the establishment of a new
business enterprise. For the period from inception, September 16, 2009 through
March 31, 2012 the Company has accumulated losses of $15,013.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INCOME TAXES
Deferred income taxes are determined using the liability method under which
deferred tax assets and liabilities are based upon temporary differences between
the carrying amounts of assets and liabilities for financial and tax reporting
purposes and the effect of net operating loss carry-forwards. Deferred tax
assets are evaluated to determine if it is more likely than not that they will
be realized. Valuation allowances have been established to reduce the carrying
value of deferred tax assets in recognition of significant uncertainties
regarding their ultimate realization.
RECENT ACCOUNTING PRONOUNCEMENTS
From time to time, new accounting pronouncements are issued by the Financial
Accounting Standards Board or other standard setting bodies that may have an
impact on the Company's accounting and reporting. The Company believes that such
recently issued accounting pronouncements and other authoritative guidance for
which the effective date is in the future either will not have an impact on its
accounting or reporting or that such impact will not be material to its
financial position, results of operations, and cash flows when implemented
4. NOTE PAYABLE - RELATED PARTY
On January 6, 2011, a Director and President, Joey Power loaned the Company
$61.The loan is non-interest bearing, unsecured and due upon demand.
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5. INCOME TAXES
As of March 31, 2012 the Company had net operating loss carry forwards of
approximately $15,013 that may be available to reduce future years' taxable
income through 2027. Future tax benefits which may arise as a result of these
losses have not been recognized in these financial statements, as their
realization is determined not likely to occur and accordingly, the Company has
recorded a full valuation allowance for the deferred tax asset relating to these
tax loss carry-forwards.
The components of the deferred tax asset, the statutory tax rate, the effective
tax rate and the elected amount of the valuation allowance are indicated below:
From
September 16, 2009
(Inception) to
March 31,
2012
--------
Net Operating Loss 15,013
Statutory Tax Rate 34%
Deferred Tax Asset 5,104
Valuation Allowance (5,104)
--------
Net Deferred Tax Asset $ --
========
6. GOING CONCERN
The Company's financial statements are prepared on a going concern basis, which
contemplates the realization of assets and the satisfaction of obligations in
the normal course of business. However, the Company has not generated any
revenues to date and has accumulated losses to date. The Company does not
currently have any revenue generating operations. These conditions, among
others, raise substantial doubt about the ability of the Company to continue as
a going concern.
In view of these matters, continuation as a going concern is dependent upon
continued operations of the Company, which in turn is dependent upon the
Company's ability to, meets its financial requirements, raise additional
capital, and the success of its future operations. The financial statements do
not include any adjustments to the amount and classification of assets and
liabilities that may be necessary should the Company not continue as a going
concern.
Management plans to fund operations of the Company through advances from
existing shareholders, private placement of restricted securities or the
issuance of stock in lieu of cash for payment of services until such a time as a
business combination or other profitable investment may be achieved. There are
no written agreements in place for such funding or issuance of securities and
there can be no assurance that such will be available in the future. Management
believes that this plan provides an opportunity for the Company to continue as a
going concern.
7. RELATED PARTY TRANSACTIONS
The Company neither owns nor leases any real or personal property. Mr. Joey
Power, sole officer and director of the Company, will provide the Company with
use of office space and services free of charge. The Company's sole officer and
director is involved in other business activities and may in the future, become
involved in other business opportunities as they become available.
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Mr. Power, sole officer and director of the Company, will not be paid for any
underwriting services that he performs on behalf of the Company with respect to
the Company's upcoming S-1 offering. He will also not receive any interest on
any funds that he advances to the Company for offering expenses prior to the
offering being closed which will be repaid from the proceeds of the offering.
8. SUBSEQUENT EVENTS
The Company has evaluated events subsequent to March 31, 2012 to assess the need
for potential recognition or disclosure in this report. Such events were
evaluated through the date these financial statements were available to be
issued. Based upon this evaluation, it was determined that no subsequent events
occurred that require recognition or disclosure in the financial statements.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
FORWARD LOOKING STATEMENTS
Some of the statements contained in this Form 10-Q that are not historical facts
are "forward-looking statements" which can be identified by the use of
terminology such as "estimates," "projects," "plans," "believes," "expects,"
"anticipates," "intends," or the negative or other variations, or by discussions
of strategy that involve risks and uncertainties. We urge you to be cautious of
the forward-looking statements, that such statements, which are contained in
this Form 10-Q, reflect our current beliefs with respect to future events and
involve known and unknown risks, uncertainties and other factors affecting our
operations, market growth, services, products and licenses. No assurances can be
given regarding the achievement of future results, as actual results may differ
materially as a result of the risks we face, and actual events may differ from
the assumptions underlying the statements that have been made regarding
anticipated events.
All written forward-looking statements made in connection with this Form 10-Q
that are attributable to us, or persons acting on our behalf, are expressly
qualified in their entirety by these cautionary statements. Given the
uncertainties that surround such statements, you are cautioned not to place
undue reliance on such forward-looking statements.
RESULTS OF OPERATIONS
We are still in our development stage and have generated no revenues to date.
We incurred operating expenses of $9,108 for the three month period ended March
31, 2012. We incurred operating expenses of $9,976 for the six month period
ended March 31, 2012. These expenses consisted of general operating expenses
incurred in connection with the day to day operation of our business and the
preparation and filing of our periodic reports.
Our net loss for the three months ended March 31, 2012 and 2011 was $9,108 and
$0, respectively, with no revenues for either period. Our net loss for the six
months ended March 31, 2012 and 2011 was $9,976 and $0, respectively, with no
revenues for either period. Our net loss from inception through March 31, 2012
was $15,013.
As of March 31, 2012, there is a total of $61 in a note payable that is owed by
the company to Joey Power, an officer and director, for expenses that he has
paid on behalf of the company. The note is interest free and payable on demand.
Cash provided by financing activities from inception through the period ended
March 31, 2012 was $20,000 resulting from the sale of common stock on July 11,
2008 to our director, Mr. Power, who purchased 4,000,000 shares of our Common
Stock at $0.005 per share.
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LIQUIDITY AND CAPITAL RESOURCES
We had $5,048 in cash at March 31, 2012, and there were outstanding liabilities
of $61. Our director has verbally agreed to continue to loan the company funds
for operating expenses in a limited scenario, but he has no legal obligation to
do so. We are a development stage company and have generated no revenue since
inception to March 31, 2012.
PLAN OF OPERATION
At present management will concentrate on the completion of our Offering
pursuant to the Registration Statement on Form S-1 that was declared effective
on March 2, 2012 and also utilize this time to begin putting together a database
of potential customers.
COMPLETE OUR PUBLIC OFFERING:
We expect to complete our public offering within 150 days after our Registration
Statement is declared effective by the Securities and Exchange Commission. We
intend to concentrate all our efforts on raising capital during this period. We
do not plan to begin business operations until we complete our public offering.
Once we have completed our offering, our specific business plan for the six
months thereafter is as follows:
FINALIZE WEBSITE (1 MONTH):
Some initial work will take place on the website as current funds allow as we
prepare our Registration Statement and complete our public offering. Once we
have completed our public offering, we will focus on the completion of a
user-friendly website that will be the primary sales point for Almah. In
addition to the creation of our corporate website we will procure expertise to
optimize out placing in search engines through SEO. Our reserved domain is
www.almahautoparts.com.
BEGIN MARKETING AND SALES EFFORTS:
Our marketing efforts will primarily be related to assuring we are easily found
on search engine requests but we have budgeted $10,450 for the initial six
months of marketing efforts. We intend to use this to place advertisements in
local newspapers and `buy/sell' automotive magazines. We feel people that are
looking for parts will be those who currently own an older vehicle or are
looking in a `buy/sell' magazine to find a replacement. We believe we will have
additional funds left over for additional methods of marketing if an opportunity
presents itself.
Once our site is live and we have begun initial SEO work and print marketing we
believe sales will be generated through our website. The website will be set up
to record all details automatically including:
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Product information
Purchaser information
Delivery location
Sales price (price purchaser paid to Almah)
Cost (internal cost for Almah to purchase part from VALE or Reborda)
Pre-tax profit (difference between `Sales price' and `Cost')
In addition to the information being captured we intend to have the website set
up so that once the transaction is completed on our website an order request
with the product and delivery location will be simultaneously sent to VALE or
Reborda. This system will allow for us to employ as little staff as possible,
maintain efficient delivery time, and keep records for both accounting and
direct client marketing.
Successful implementation of our business strategy depends on factors specific
to the retail automotive parts industry and numerous other factors that may be
beyond our control. Adverse changes in the following factors could undermine our
business strategy and have a material adverse affect on our business, financial
condition, results of operations and cash flow:
* The competive environment in the automotive aftermarket parts and
accessories retail sector that may force us to reduce prices below our
desired pricing level or increase promotional spending;
* Our ability to anticipate changes in consumer preferences and to meet
customers' needs for automotive products (particularly parts
availability) in a timely manner; and
* Our ability to establish, maintain and eventually grow market share.
For parts that are manufactured globally, geopolitical changes, changes in trade
regulations, currency fluctuations, shipping-related issues, natural disasters,
pandemics and other factors beyond our control may increase the cost of items we
purchase, create shortages or render product delivery difficult which could have
a material adverse effect on our sales and profitability.
We estimate sales to begin in within 90 days after the completion of our
offering. Because our business is customer-driven, our revenue requirements will
be reviewed and adjusted based on sales. We cannot guarantee that we will have
sales and the amount raised in this offering may not be enough to meet the
operating expenditures of the Company. We may be required to raise additional
funding or apply for loans in the next 12 months, however we have no plans to do
so at this time.
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Based on raising $40,000 from our offering, we have budgeted the following
amounts over the next 12 months:
Advertising and Marketing $10,450
Website design $ 6,000
Accounting, Auditing and Legal $10,450
Office and Administration $ 5,000
Working Capital $ 8,100
These amounts may be adjusted based upon sales and revenue.
SUMMARY
In summary, we intend to begin web development, and marketing our products
within 150 days of completing our offering. Until we have reached a breakeven
level of clientele we do not believe our operations will be profitable. If we
are unable to attract new clients to purchase our products we may have to
suspend or cease operations. If we cannot generate sufficient revenues to
continue operations, we will suspend or cease operations. If we cease
operations, we do not know what we will do and we do not have any plans to do
anything else.
OFF-BALANCE SHEET ARRANGEMENTS
We do not have any 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 is material to investors.
ITEM 4. CONTROLS AND PROCEDURES
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Management maintains "disclosure controls and procedures," as such term is
defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the
"Exchange Act"), that are designed to ensure that information required to be
disclosed in our Exchange Act reports is recorded, processed, summarized and
reported within the time periods specified in the Securities and Exchange
Commission rules and forms, and that such information is accumulated and
communicated to management, including our Chief Executive Officer and Chief
Financial Officer, as appropriate, to allow timely decisions regarding required
disclosure.
In connection with the preparation of this quarterly report on Form 10-Q, an
evaluation was carried out by management, with the participation of the Chief
Executive Officer and the Chief Financial Officer, of the effectiveness of our
disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
under the Exchange Act) as of March 31, 2012.
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Based on that evaluation, management concluded, as of the end of the period
covered by this report, that our disclosure controls and procedures were
effective in recording, processing, summarizing, and reporting information
required to be disclosed, within the time periods specified in the Securities
and Exchange Commission's rules and forms.
CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING
As of the end of the period covered by this report, there have been no changes
in the internal controls over financial reporting during the quarter ended March
31, 2012, that materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting subsequent to the date of
management's last evaluation.
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PART II. OTHER INFORMATION
ITEM 6. EXHIBITS
The following exhibits are included with this quarterly filing. Those marked
with an asterisk and required to be filed hereunder, are incorporated by
reference and can be found in their entirety in our original Form SB-2
Registration Statement, filed under SEC File Number 333-178883, at the SEC
website at www.sec.gov:
Exhibit No. Description
----------- -----------
3.1 Articles of Incorporation*
3.2 Bylaws*
31.1 Sec. 302 Certification of Principal Executive Officer
31.2 Sec. 302 Certification of Principal Financial Officer
32.1 Sec. 906 Certification of Principal Executive Officer
32.2 Sec. 906 Certification of Principal Financial Officer
101 Interactive data files pursuant to Rule 405 of Regulation S-T
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.
Almah, Inc.
Registrant
Date: May 1, 2012 By: /s/ Joey Power
--------------------------------------
Joey Power
(Principal Executive Officer,
Principal Financial Officer,
Principal Accounting Officer &
Sole Director)
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