Nevada
|
90-0547143
|
|
(State or other jurisdiction of incorporation or formation)
|
|
(I.R.S. employer identification number)
|
Large accelerated filer ¨
|
Accelerated filer ¨
|
|
Non-accelerated filer ¨
(Do not check if a smaller reporting company)
|
Smaller reporting company þ
|
PART I. FINANCIAL INFORMATION
|
Page
|
||
Item 1.
|
Financial Statements for the period ended June 30, 2013
|
3
|
|
Balance Sheets (unaudited)
|
4
|
||
Statement of Operations (unaudited)
|
5
|
||
Statement of Changes in Stockholders’ Equity/(Deficit)
|
6
|
||
Statements of Cash Flows (unaudited)
|
7
|
||
Notes to Unaudited Financial Statements
|
8-11
|
||
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
12
|
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
14
|
|
Item 4.
|
Controls and Procedures
|
15
|
|
PART II. OTHER INFORMATION
|
|||
Item 1.
|
Legal Proceedings
|
15
|
|
Item 1A.
|
Risk Factors
|
15
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
15
|
|
Item 3.
|
Defaults Upon Senior Securities
|
15
|
|
Item 4.
|
Mine Safety Disclosures
|
15
|
|
Item 5.
|
Other Information
|
15
|
|
Item 6.
|
Exhibits
|
16
|
|
Signatures
|
17
|
||
June 30,
|
September 30,
|
|||||||
2013
|
2012
|
|||||||
(Unaudited)
|
(Derived from
|
|||||||
audited financial
|
||||||||
statements)
|
||||||||
Assets
|
||||||||
Cash
|
$ | 910 | $ | 318 | ||||
Total Assets
|
$ | 910 | $ | 318 | ||||
Liabilities and Shareholders’ Deficit
|
||||||||
Liabilities:
|
||||||||
Accounts payable
|
$ | — | $ | 1,530 | ||||
Total Liabilities
|
— | 1,530 | ||||||
Commitments and Contingencies (Note 5)
|
||||||||
Shareholders’ Equity/(Deficit) (Notes 2 and 3):
|
||||||||
Common stock, $0.0001 par value; 20,000,000 shares authorized,
|
||||||||
2,840,864 and 2,840,864 shares issued and outstanding,
|
||||||||
respectively
|
284 | 284 | ||||||
Additional paid-in capital
|
3,913,829 | 3,897,675 | ||||||
Accumulated deficit prior to development stage
|
(3,910,365 | ) | (3,910,365 | ) | ||||
(Deficit)/equity accumulated during development stage
|
(2,838 | ) | 11,194 | |||||
Total Shareholders’ Equity/(Deficit)
|
910 | (1,212 | ) | |||||
Total Liabilities and Shareholders’ Equity/(Deficit)
|
$ | 910 | $ | 318 | ||||
March 12, 2001
|
||||||||||||||||||||
(Inception)
|
||||||||||||||||||||
For The Three Months Ended
|
For The Nine Months Ended
|
Through
|
||||||||||||||||||
June 30,
|
June 30,
|
June 30,
|
||||||||||||||||||
2013
|
2012
|
2013
|
2012
|
2013
|
||||||||||||||||
Revenue
|
$ | — | $ | — | — | $ | — | $ | — | |||||||||||
Operating expenses:
|
||||||||||||||||||||
General and administrative
|
4,775 | 3,841 | 14,032 | 18,942 | 155,707 | |||||||||||||||
Operating loss
|
(4,775 | ) | (3,841 | ) | (14,032 | ) | (18,942 | ) | (155,707 | ) | ||||||||||
Other income (expense):
|
||||||||||||||||||||
Gain on debt relief
|
— | — | — | — | 388,095 | |||||||||||||||
Interest expense
|
— | — | — | — | (235,226 | ) | ||||||||||||||
Total other income (expense)
|
— | — | — | — | 152,869 | |||||||||||||||
Income (loss) before income tax
|
(4,775 | ) | (3,841 | ) | (14,032 | ) | (18,942 | ) | (2,838 | ) | ||||||||||
Provision for income tax (Note 4)
|
— | — | — | — | — | |||||||||||||||
Net income (loss)
|
$ | (4,775 | ) | $ | (3,841 | ) | $ | (14,032 | ) | $ | (18,942 | ) | $ | (2,838 | ) | |||||
Basic and diluted income (loss) per share
|
$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | ||||||||
Weighted average number of common
|
||||||||||||||||||||
shares outstanding
|
2,840,864 | 2,840,864 | 2,840,864 | 2,840,864 | ||||||||||||||||
Accumulated
|
Equity
|
|||||||||||||||||||||||||||
Deficit
|
Accumulated
|
|||||||||||||||||||||||||||
Additional
|
Stock
|
Prior to
|
During
|
|||||||||||||||||||||||||
Common Stock
|
Paid-In
|
Subscription
|
Development
|
Development
|
||||||||||||||||||||||||
Shares
|
Par Value
|
Capital
|
Receivable
|
Stage
|
Stage
|
Total
|
||||||||||||||||||||||
Balance, March 12, 2001 (inception of
development stage) |
90,861 | $ | 9 | $ | 3,562,331 | $ | (15,000 | ) | $ | (3,910,365 | ) | $ | — | $ | (272,164 | ) | ||||||||||||
Net loss for period ended September 30, 2001
|
— | — | — | — | — | (27,487 | ) | (27,487 | ) | |||||||||||||||||||
Balance, September 30, 2001
|
90,861 | 9 | 3,562,331 | (15,000 | ) | (3,910,365 | ) | (27,487 | ) | (299,651 | ) | |||||||||||||||||
Net loss for year ended September 30, 2002
|
— | — | — | — | — | (60,100 | ) | (60,100 | ) | |||||||||||||||||||
Balance, September 30, 2002
|
90,861 | 9 | 3,562,331 | (15,000 | ) | (3,910,365 | ) | (87,587 | ) | (359,751 | ) | |||||||||||||||||
Fractional shares - reverse stock split
|
3 | — | — | — | — | — | 3 | |||||||||||||||||||||
Debt relief - repurchase obligation
|
— | — | 15,000 | 15,000 | — | — | 30,000 | |||||||||||||||||||||
Compensatory stock issuances
|
2,750,000 | 275 | 2,475 | — | — | — | 2,752,750 | |||||||||||||||||||||
Net loss for year ended September 30, 2003
|
— | — | — | — | — | (41,245 | ) | (41,245 | ) | |||||||||||||||||||
Balance, September 30, 2003
|
2,840,864 | 284 | 3,579,806 | — | (3,910,365 | ) | (128,832 | ) | 2,381,757 | |||||||||||||||||||
Net loss for year ended September 30, 2004
|
— | — | — | — | — | (31,996 | ) | (31,996 | ) | |||||||||||||||||||
Balance, September 30, 2004
|
2,840,864 | 284 | 3,579,806 | — | (3,910,365 | ) | (160,828 | ) | 2,349,761 | |||||||||||||||||||
Net loss for year ended September 30, 2005
|
— | — | — | — | — | (32,146 | ) | (32,146 | ) | |||||||||||||||||||
Balance, September 30, 2005
|
2,840,864 | 284 | 3,579,806 | — | (3,910,365 | ) | (192,974 | ) | 2,317,615 | |||||||||||||||||||
Net loss for year ended September 30, 2006
|
— | — | — | — | — | (32,146 | ) | (32,146 | ) | |||||||||||||||||||
Balance, September 30, 2006
|
2,840,864 | 284 | 3,579,806 | — | (3,910,365 | ) | (225,120 | ) | 2,285,469 | |||||||||||||||||||
Net loss for year ended September 30, 2007
|
— | — | — | — | — | (32,146 | ) | (32,146 | ) | |||||||||||||||||||
Balance, September 30, 2007
|
2,840,864 | 284 | 3,579,806 | — | (3,910,365 | ) | (257,266 | ) | 2,253,323 | |||||||||||||||||||
Net loss for year ended September 30, 2008
|
— | — | — | — | — | (43,841 | ) | (43,841 | ) | |||||||||||||||||||
Balance, September 30, 2008
|
2,840,864 | 284 | 3,579,806 | — | (3,910,365 | ) | (301,107 | ) | 2,209,482 | |||||||||||||||||||
Capital contributions by officer (Note 2)
|
— | — | 270,989 | — | — | — | 270,989 | |||||||||||||||||||||
Net loss for year ended September 30, 2009
|
— | — | — | — | — | 360,318 | 360,318 | |||||||||||||||||||||
Balance, September 30, 2009
|
2,840,864 | 284 | 3,850,795 | — | (3,910,365 | ) | 59,211 | 2,840,789 | ||||||||||||||||||||
Capital contributions by an officer and shareholders (Note 2)
|
— | — | 12,744 | — | — | — | 12,744 | |||||||||||||||||||||
Net loss for year ended September 30, 2010
|
— | — | — | — | — | (13,555 | ) | (13,555 | ) | |||||||||||||||||||
Balance, September 30, 2010
|
2,840,864 | 284 | 3,863,539 | — | (3,910,365 | ) | 45,656 | 2,839,978 | ||||||||||||||||||||
Capital contributions by an officer and shareholders (Note 2)
|
— | — | 12,792 | — | — | — | 12,792 | |||||||||||||||||||||
Net loss for year ended September 30, 2011
|
— | — | — | — | — | (11,908 | ) | (11,908 | ) | |||||||||||||||||||
Balance, September 30, 2011
|
2,840,864 | 284 | 3,876,331 | — | (3,910,365 | ) | 33,748 | 2,840,862 | ||||||||||||||||||||
Capital contributions by an officer
and shareholders (Note 2) |
— | — | 21,344 | — | — | — | 21,344 | |||||||||||||||||||||
Net loss for year ended September 30, 2012
|
— | — | — | — | — | (22,554 | ) | (22,554 | ) | |||||||||||||||||||
Balance, September 30, 2012
|
2,840,864 | 284 | $ | 3,897,675 | $ | — | (3,910,365 | ) | 11,194 | $ | 2,839,652 | |||||||||||||||||
Capital contributions by an officer and shareholders (unaudited) (Note 2)
|
— | — | 16,154 | — | — | — | 16,154 | |||||||||||||||||||||
Net loss for nine months ended June 30, 2013 (unaudited)
|
— | — | — | — | — | (14,032 | ) | (14,032 | ) | |||||||||||||||||||
Balance, June 30, 2013 (unaudited)
|
2,840,864 | 284 | $ | 3,913,829 | $ | — | (3,910,365 | ) | (2,838 | ) | $ | 2,841,774 |
March 12, 2001
|
||||||||||||
(Inception)
|
||||||||||||
For The Nine Months Ended
|
Through
|
|||||||||||
June 30,
|
June 30,
|
|||||||||||
2013
|
2012
|
2013
|
||||||||||
Cash flows (used in) operating activities:
|
||||||||||||
Net income (loss)
|
$ | (14,032 | ) | $ | (18,942 | ) | $ | (2,838 | ) | |||
Adjustments to reconcile net income/(loss) to net
|
||||||||||||
cash used in operating activities:
|
||||||||||||
Amortization and depreciation
|
— | — | 475 | |||||||||
Stock-based compensation
|
— | — | 2,750 | |||||||||
Loss on fixed asset disposal
|
— | — | 1,408 | |||||||||
Gain on debt relief
|
— | — | (388,095 | ) | ||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Bank overdraft
|
— | (2 | ) | — | ||||||||
Accounts payable
|
(1,530 | ) | — | 18,876 | ||||||||
Accrued expenses
|
— | — | 233,519 | |||||||||
Related party payables
|
— | — | 87,431 | |||||||||
Net cash provided by (used in)
|
||||||||||||
operating activities
|
(15,562 | ) | (18,944 | ) | (46,474 | ) | ||||||
Net cash provided by (used in)
|
||||||||||||
investing activities
|
— | — | — | |||||||||
Cash flows from financing activities:
|
||||||||||||
Capital contributed by related parties
|
16,154 | 19,272 | 63,034 | |||||||||
Notes payable - borrowings
|
— | — | 10,000 | |||||||||
Notes payable - payments
|
— | — | (25,650 | ) | ||||||||
Net cash provided by (used in)
|
||||||||||||
financing activities
|
16,154 | 19,272 | 47,384 | |||||||||
Net change in cash
|
592 | 328 | 910 | |||||||||
Cash, beginning of period
|
318 | — | — | |||||||||
Cash, end of period
|
$ | 910 | $ | 328 | $ | 910 | ||||||
Supplemental disclosure of cash flow information:
|
||||||||||||
Cash paid during the period for:
|
||||||||||||
Income taxes
|
$ | — | $ | — | $ | — | ||||||
Interest
|
$ | — | $ | — | $ | — |
Level 1:
|
Quoted prices in active markets for identical assets or liabilities.
|
|
Level 2:
|
Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.
|
|
Level 3:
|
Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
|
Exhibit
|
Description
|
|
Certification of CEO/CFO pursuant to Rule 13a-14(a) or Rule 15d-14(a) - Filed herewith electronically
|
||
Certification of CEO/CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Filed herewith electronically
|
||
101.1
|
Interactive Data File
|
FRANCHISE HOLDINGS INTERNATIONAL, INC.
|
||
Date: July 26, 2013
|
By:
|
|
A.J. Boisdrenghien, President and Chief Executive
and Financial Officer
|
A. J. Boisdrenghien
|
|
Chief Executive Officer and President
|
|
(principal executive officer and principal
|
|
financial and accounting officer) |
A. J. Boisdrenghien
|
|
Chief Executive Officer and President
|
|
(principal executive officer and principal
|
|
financial and accounting officer) |
Statements of Operations (USD $)
|
3 Months Ended | 9 Months Ended | 142 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
|
Statements Of Operations | |||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Operating expenses: | |||||
General and administrative | 4,775 | 3,841 | 14,032 | 18,942 | 155,707 |
Operating loss | (4,775) | (3,841) | (14,032) | (18,942) | (155,707) |
Other income (expense): | |||||
Gain on debt relief | 0 | 0 | 0 | 0 | 388,095 |
Interest expense | 0 | 0 | 0 | 0 | (235,226) |
Total other income (expense) | 0 | 0 | 0 | 0 | 152,869 |
Income (loss) before income tax | (4,775) | (3,841) | (14,032) | (18,942) | (2,838) |
Provision for income tax (Note 4) | 0 | 0 | 0 | 0 | 0 |
Net income (loss) | $ (4,775) | $ (3,841) | $ (14,032) | $ (18,942) | $ (2,838) |
Basic and diluted income (loss) per share | $ 0 | $ 0 | $ 0.00 | $ (0.01) | |
Weighted average number of common shares outstanding | 2,840,864 | 2,840,864 | 2,840,864 | 2,840,864 |
4. Income Taxes
|
9 Months Ended |
---|---|
Jun. 30, 2013
|
|
Income Tax Disclosure [Abstract] | |
Income Taxes | (4) Income Taxes
The Company has incurred net operating losses since inception resulting in a deferred tax asset, which has been fully allowed for; therefore, the net benefit and expense resulted in no income tax provision. |
2. Related Party Transactions
|
9 Months Ended |
---|---|
Jun. 30, 2013
|
|
Related Party Transactions [Abstract] | |
Related Party Transactions | (2) Related Party Transactions
During the nine months ended June 30, 2013, our president and two shareholders contributed $16,154 (unaudited) to us for working capital to support our development stage operations. These contributions are included in the accompanying financial statements as Additional paid-in capital.
During the year ended September 30, 2012, our president and two shareholders contributed $21,344 to us for working capital to support our development stage operations. These contributions are included in the accompanying financial statements as Additional paid-in capital.
During the year ended September 30, 2011, our president and two shareholders contributed $12,792 to us for working capital to support our development stage operations. These contributions are included in the accompanying financial statements as Additional paid-in capital.
During the year ended September 30, 2010, our president and two shareholders contributed $12,744 to us for working capital to support our development stage operations. These contributions are included in the accompanying financial statements as Additional paid-in capital.
During the year ended September 30, 2009, an officer contributed $82,260 to us for working capital to support our development stage operations. In addition, the officer gave 26,000 shares of his own stock in Franchise Holdings International, Inc. to other debtors in settlement of $18,000 in stock subscriptions payable and $170,729 in notes payable, which the officer then contributed to capital. Total contributions of $270,989 are included in the accompanying financial statements as Additional paid-in capital. |
5. Subsequent Events
|
9 Months Ended |
---|---|
Jun. 30, 2013
|
|
Subsequent Events [Abstract] | |
Subsequent Events | (5) Subsequent Events
We have evaluated the effects of all subsequent events from July 1, 2013 through July 25, 2013, the date the accompanying financial statements were available for use. There have been no subsequent events after June 30, 2013 for which disclosure is required. |
3. Notes Payable
|
9 Months Ended |
---|---|
Jun. 30, 2013
|
|
Notes Payable [Abstract] | |
Notes Payable | (3) Notes Payable
At September 30, 2008, we had $271,759 in notes payable outstanding to non-related parties, currently due, bearing interest at rates from 10 to 12 percent per annum, and convertible into common stock at $1 to $3 per share. Accrued interest payable under the notes at September 30, 2008 was $238,580. During 2009, the noteholders agreed to cancel the conversion feature and settle their notes upon payment of cumulative settlement amounts totaling $25,650 in cash and 20,000 common shares. The note settlements were finalized in the first quarter of fiscal year September 30, 2009. An officer provided (out of his personal shares in Franchise Holdings International, Inc.) the 20,000 shares for the note settlement. Pursuant to the note settlement, the noteholders, who were owed a total of $510,339, were given 20,000 of the Companys common shares (by an officer out of his personal holdings) in settlement of $170,729 and $25,650 in cash as full settlement, resulting in a gain on debt relief for the Company totaling $313,960.
In 2003, an $18,000 note with an automatic conversion feature was recorded as a stock subscription payable for 6,000 common shares upon conversion. During the year ended September 30, 2009, an officer provided (out of his personal shares in Franchise Holdings International, Inc.) the 6,000 shares to settle the stock subscription payable. |