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 January 31, 2012 | |
[ ] | Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from __________ to__________ | |
Commission File Number: 333-145794 |
Harmonic Energy, Inc.
(Exact name of registrant as specified in its charter)
Nevada | 26-0164981 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
3rd Floor, 207 Regent Street, London, United Kingdom, W1B 3HH |
(Address of principal executive offices) |
+44 (0) 207-617-7300 |
(Registrant’s telephone number) |
Lower Ground Floor, 37 Brunswick Square, Hove, East Sussex, BN3 1ED, United Kingdom |
(Former name, former address and former fiscal year, if changed since last report) |
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.
[ ] Large accelerated filer Accelerated filer | [ ] Non-accelerated filer |
[X] Smaller reporting company |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [X] Yes [ ] No
State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 62,370,595 as of March 20, 2012.
TABLE OF CONTENTS | ||
Page | ||
PART I – FINANCIAL INFORMATION | ||
Item 1: | Financial Statements | 3 |
Item 2: | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 4 |
Item 3: | Quantitative and Qualitative Disclosures About Market Risk | 5 |
Item 4: | Controls and Procedures | 5 |
PART II – OTHER INFORMATION | ||
Item 1: | Legal Proceedings | 6 |
Item 1A: | Risk Factors | 6 |
Item 2: | Unregistered Sales of Equity Securities and Use of Proceeds | 6 |
Item 3: | Defaults Upon Senior Securities | 6 |
Item 4: | Mine Safety Disclosures | 6 |
Item 5: | Other Information | 6 |
Item 6: | Exhibits | 6 |
2 |
PART I - FINANCIAL INFORMATION
Our financial statements included in this Form 10-Q are as follows:
These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended January 31, 2012 are not necessarily indicative of the results that can be expected for the full year.
3 |
HARMONIC ENERGY, INC.
(A DEVELOPMENT STAGE COMPANY)
As of January 31, 2012 and July 31, 2011
ASSETS | January 31, 2012 | July 31, 2011 | |||||
Current Assets | |||||||
Cash | $ | - | $ | - | |||
Total Current Assets | - | - | |||||
TOTAL ASSETS | $ | - | $ | - | |||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||
Liabilities | |||||||
Current Liabilities | |||||||
Accrued expenses | $ | 47,082 | $ | 43,582 | |||
Accrued interest-related party | 1,954 | 1,354 | |||||
Note payable- related party | 20,000 | 20,000 | |||||
Total Liabilities | 69,036 | 64,936 | |||||
STOCKHOLDERS’ DEFICIT | |||||||
Common stock, $.001 par value, 100,000,000 shares authorized, 54,724,119 shares issued and outstanding | 54,724 | 54,724 | |||||
Additional paid in capital | 27,711 | 27,711 | |||||
Deficit accumulated during the development stage | (151,471 | ) | (147,371 | ) | |||
Total Stockholders’ Deficit | (69,036 | ) | (64,936 | ) | |||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | - | $ | - |
See accompanying notes to financial statements.
F-1 |
HARMONIC ENERGY, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS (Unaudited)
For the three months and six months ended January 31, 2012 and 2011
For the period from May 1, 2007 (Date of Inception) through January 31, 2012
|
Three months ended January 31, 2012 |
|
|
Three months ended January 31, 2011 |
|
|
Six months ended January 31, 2012 |
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|
Six months ended January 31, 2011 |
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|
Period from May 1, 2007 (Inception) to January 31, 2012 |
|
|||||
Revenues | $ | - | $ | - | $ | - | $ | - | $ | 200 | |||||||||
General and administrative expenses: | |||||||||||||||||||
Professional fees | 2,100 | 8,382 | 3,500 | 8,382 | 222,147 | ||||||||||||||
Website development | - | - | - | - | 9,000 | ||||||||||||||
Office and miscellaneous | - | 132 | - | 857 | 5,108 | ||||||||||||||
Total general and administrative expenses | 2,100 | 8,514 | 3,500 | 9,239 | 236,255 | ||||||||||||||
Loss from operations | (2,100 | ) | (8,514 | ) | (3,500 | ) | (9,239 | ) | (236,255 | ) | |||||||||
Other expenses | |||||||||||||||||||
Gain on settlement of accrued expense | - | - | - | - | 86,748 | ||||||||||||||
Interest expense | (300 | ) | (296 | ) | (600 | ) | (592 | ) | (2,164 | ) | |||||||||
Total other income (expense) | (300 | ) | (296 | ) | (600 | ) | (592 | ) | 84,584 | ||||||||||
Net income (loss) for the period | $ | (2,400 | ) | $ | (8,810 | ) | $ | (4,100 | ) | $ | (9,831 | ) | $ | (151,471 | ) | ||||
Net loss per share: | |||||||||||||||||||
Basic and diluted | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||||
Basic and diluted | 4,724,119 | 4,724,119 | 54,724,119 | 4,724,119 |
See accompanying notes to financial statements.
F-2 |
HARMONIC ENERGY, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS (Unaudited)
For the six months ended January 31, 2012 and 2011
For the period from May 1, 2007 (Date of Inception) through January 31, 2012
Six months ended January 31, 2012 | Six months ended January 31, 2011 | Period from May 1, 2007 (Inception) to January 31, 2012 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income (loss) and comprehensive loss | $ | (4,100 | ) | $ | (9,831 | ) | $ | (151,471 | ) | ||
Change in non-cash working capital items | |||||||||||
Conversion of related party accrued interest | - | - | 210 | ||||||||
Gain on settlement of debt | - | - | (86,748 | ) | |||||||
Changes in operating assets and liabilities: | |||||||||||
Increase in accounts payable and accrued expenses | 3,500 | 99 | 133,830 | ||||||||
Increase in accrued interest-related party | 600 | 592 | 1,954 | ||||||||
CASH FLOWS USED IN OPERATING ACTIVITIES | - | (9,140 | ) | (102,225 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from sale of common stock | - | - | 81,225 | ||||||||
Proceeds from note payable- related party | - | - | 21,000 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | - | - | 102,225 | ||||||||
NET INCREASE (DECREASE) IN CASH | - | (9,140 | ) | - | |||||||
Cash, beginning of period | - | 10,983 | - | ||||||||
Cash, end of period | $ | - | $ | 1,843 | $ | - | |||||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||
Interest paid | $ | - | $ | - | |||||||
Income taxes paid | $ | - | $ | - | |||||||
NON-CASH FINANCING ACTIVITIES | |||||||||||
Contributed capital | $ | - | $ | - |
See accompanying notes to financial statements.
F-3 |
HARMONIC ENERGY, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
January 31, 2012
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
Harmonic Energy, Inc. (the Company), formerly known as Aviation Surveillance Systems, Inc. and Fairytale Ventures, Inc., was incorporated in the State of Nevada on May 1, 2007. The Company is currently seeking to acquire oil and gas prospects and/or producing oil and gas properties in the United States and internationally. The Company has not realized significant revenues to date and therefore is classified as a development stage company.
Development Stage Company
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development-stage companies. A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from.
Basis of Presentation
The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K filed with the SEC as of and for the period ended July 31, 2011. In the opinion of management, all adjustments necessary for the financial statements to be not misleading for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The Company has adopted a July 31 fiscal year end.
Fair Value of Financial Instruments
The Company’s financial instruments consist of cash and cash equivalents, accrued expenses and accrued interest – related party. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.
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 the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
F-4 |
HARMONIC ENERGY, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
January 31, 2012
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basic (Loss) per Common Share
Basic (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of January 31, 2012.
Revenue Recognition
The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.
Advertising Costs
The Company’s policy regarding advertising is to expense advertising when incurred. The Company has not incurred any advertising expense as of January 31, 2012 and 2011.
Cash and Cash Equivalents
For purposes of the Statement of Cash Flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.
Reclassifications
Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.
Income Taxes
Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.
Stock-Based Compensation
Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. As of July 31, 2011, the Company has not issued any stock-based payments to its employees.
F-5 |
HARMONIC ENERGY, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
January 31, 2012
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Recent Accounting Pronouncements
Harmonic Energy does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.
NOTE 2 – LOAN PAYABLE – RELATED PARTY
On June 14, 2010, the Company signed a promissory note for $20,000 with an officer. The loan was due on June 14, 2011, bears 6% interest and is unsecured. The terms of the loan were revised to adjust maturity to due on demand during the year ended July 31, 2011. Interest expense on this loan was $300 and $296 for the three months ended January 31, 2012 and 2011. Total accrued interest owed at January 31, 2012 and 2011 was $1,954 and $1,354, respectively.
NOTE 3 – PREFERRED AND COMMON STOCK
The Company has 10,000,000 preferred shares and 90,000,000 common shares of $0.001 par value stock authorized.
On May 14, 2007, the Company received $4,000 from its founders for 7,374,252 shares of its common stock. On June 22, 2007, the Company completed an unregistered private offering under the Securities Act of 1933, as amended, relying upon the exemption from registration
afforded by Rule 504 of Regulation D promulgated there under. The Company sold 2,931,265 shares of its $0.001 par value common stock at a price of $0.004 per share for $11,925 in cash.
On July 21, 2008, the Company’s shares of common stock were forward split on the basis of 1.84356289 shares for 1.
On May 1, 2009, the Company’s shares of common stock were forward split on the basis of 1.6 shares for 1. The forward stock split has been recognized in the Company’s financial statements on a retroactive basis.
On March 15, 2010, the Company sold 38,235,294 shares of common stock for total cash proceeds of $65,000.
As of January 31, 2012, the Company has 54,724,119 shares of common stock issued and outstanding.
F-6 |
HARMONIC ENERGY, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
January 31, 2012
NOTE 3 – PREFERRED AND COMMON STOCK
The Company has 10,000,000 preferred shares and 90,000,000 common shares of $0.001 par value stock authorized.
On May 14, 2007, the Company received $4,000 from its founders for 7,374,252 shares of its common stock. On June 22, 2007, the Company completed an unregistered private offering under the Securities Act of 1933, as amended, relying upon the exemption from registration afforded by Rule 504 of Regulation D promulgated there under. The Company sold 2,931,265 shares of its $0.001 par value common stock at a price of $0.004 per share for $11,925 in cash.
On July 21, 2008, the Company’s shares of common stock were forward split on the basis of 1.84356289 shares for 1.
On May 1, 2009, the Company’s shares of common stock were forward split on the basis of 1.6 shares for 1. The forward stock split has been recognized in the Company’s financial statements on a retroactive basis.
On March 15, 2010, the Company sold 38,235,294 shares of common stock for total cash proceeds of $65,000.
As of January 31, 2012, the Company has 54,724,119 shares of common stock issued and outstanding.
NOTE 4 – GOING CONCERN
The accompanying financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern. However, the Company has accumulated deficit of $151,471 as of January 31, 2012. The Company currently has limited liquidity, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time.
Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.
F-7 |
HARMONIC ENERGY, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
January 31, 2012
NOTE 5 – INCOME TAXES
As of January 31, 2012, the Company had net operating loss carry forwards of approximately $151,470 that may be available to reduce future years’ taxable income in various amounts through 2031. 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 valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.
The provision for Federal income tax consists of the following:
January 31, 2012 | January, 31, 2011 | ||||||
Federal income tax benefits attributable to: | |||||||
Current Operations | $ | 1,394 | $ | 12,874 | |||
Less: valuation allowance | (1,394 | ) | (12,874 | ) | |||
Net provision for Federal income taxes | $ | - | $ | - |
The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:
January 31, 2012 | July 31, 2011 | |||||||
Deferred tax asset attributable to: | ||||||||
Net operating loss carryover | $ | 51,500 | $ | 50,106 | ||||
Less: valuation allowance | (51,500 | ) | (50,106 | ) | ||||
Net deferred tax asset | $ | - | $ | - |
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $151,470 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.
F-8 |
HARMONIC ENERGY, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
January 31, 2012
NOTE 6 – COMMITMENTS AND CONTINGENCIES
Harmonic Energy neither owns nor leases any real or personal property. An officer has provided office services without charge. There is no obligation for this arrangement to continue. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.
NOTE 7 – SUBSEQUENT EVENTS
On February 22, 2012, an officer of the Company surrendered to treasury for voluntary cancellation, 40,000,000 shares of common stock of the Company.
On March 12, 2012, the Company adopted a forward 5 for 1 split of the issued and outstanding common stock of the Company.
Management has evaluated subsequent events to the date these financial statements were issued, and has determined it does not have any additional material subsequent events to disclose.
F-9 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements.” These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.
Company Overview
We are a Nevada corporation, formed May 1, 2007. Currently, we do not have any active business operations. Our management is currently developing plans to launch a new business which will provide a comprehensive solution for the disposition and recycling of scrap tires through tire re-manufacturing and carbonization of scrap tire components. Tire re-manufacturing is a process that takes high quality used tires, removes the old tread and sidewall markings, and then applies new rubber to the tread and sidewall. The used casing along with the new rubber is vulcanized under high pressure and heat to produce a new tire. This is the same process used by new tire manufacturers except that they make the casing (the most costly part of the tire). Carbonization is a technology that heats tires in an oxygen free environment and turns spent tire casings into diesel fuel, carbon black and syn-gas.
We have recently concluded negotiations with Kouei International, a Japanese engineering company, for an exclusive license to the rights in North America and Europe for use of their patented Tyrolysis™ carbonization technology. The Tyrolysis™ technology is a comprehensive ‘closed-loop’ solution for the management of scrap tires, which allows for all scrap tires to be either re-manufactured into new tires or reduced into marketable chemical products.
Management is currently evaluating facilities locations in Europe. We plan for our facilities to collect scrap tires and produce both re-manufactured tires and commodity chemicals produced through the Tyrolysis™ carbonization technology. We hope to have 6 to 10 plants operational in Europe and North America within the next 5 years.
Management estimates that approximately $50 million in new equity will be required in order to procure the necessary equipment, facilities, and supplies for our planned business and to commence our planned tire recycling operations. We currently do not have any firm arrangements for equity or debt financing and we may not be able to obtain financing when required, in the amount necessary to commence our planned operations, or on terms which are feasible in the opinion of management.
Results of operations for the three and six months ended January 31, 2012 and 2011, and for the period from May 1, 2007 (date of inception) through January 31, 2012.
We have not earned significant revenues since the inception of our business and we earned no revenues during the three and six months ended January 31, 2012 and 2011. We are presently in the development stage of our business and we can provide no assurance that we will produce significant revenues or, if revenues are earned, that we will be profitable.
We incurred net losses in the amount of $151,471 from our inception on May 1, 2007 through the period ending January 31, 2012. During the three months ended January 31, 2012, we incurred expenses and a net loss of $2,400, compared to expenses and a net loss of $8,810 for the three months ended January 31, 2011. We experienced expenses and a net loss of $4,100 during the six months ended January 31, 2012, compared to expenses and a net loss of $9,831 for the six months ended January 31, 2012. Our losses are attributable to our operating expenses combined with a lack of significant revenues during our current stage of development.
4 |
Liquidity and Capital Resources
As of January 31, 2012, we had no current assets, no cash, and current liabilities of $69,036. Thus, we had a working capital deficit of $69,036 as of January 31, 2012.
We have not established profitable operations and will be dependent upon obtaining financing to pursue a long-term business plan. As discussed above, we will require substantial new equity financing in order to pursue our planned tire recycling operations. We currently do not have any arrangements for financing and we may not be able to obtain financing when required. For these reasons our auditors stated in their report that they have substantial doubt we will be able to continue as a going concern.
Off Balance Sheet Arrangements
As of January 31, 2012, there were no off balance sheet arrangements.
Going Concern
We have negative working capital, have incurred losses since inception, and not yet established a source of revenues. These factors create substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustment that might be necessary if we are unable to continue as a going concern.
Our ability to continue as a going concern is dependent on generating cash from the sale of our common stock and/or obtaining debt financing and attaining future profitable operations. Management’s plans include selling our equity securities and obtaining debt financing to fund our capital requirement and ongoing operations; however, there can be no assurance we will be successful in these efforts.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
A smaller reporting company is not required to provide the information required by this Item.
Item 4. Controls and Procedures
We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of January 31, 2012. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, Jamie Mann. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of January 31, 2012, our disclosure controls and procedures are not effective. There have been no changes in our internal controls over financial reporting during the quarter ended January 31, 2012.
Management determined that the material weaknesses that resulted in controls being ineffective are primarily due to lack of resources and number of employees. Material weaknesses exist in the segregation of duties required for effective controls and various reconciliation and control procedures not regularly performed due to the lack of staff and resources.
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.
5 |
Limitations on the Effectiveness of Internal Controls
Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the internal control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.
PART II – OTHER INFORMATION
We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.
A smaller reporting company is not required to provide the information required by this Item.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None
Item 3. Defaults upon Senior Securities
None
Item 4. Mine Safety Disclosures
Not applicable.
None
6 |
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.
Harmonic Energy, Inc. | |
Date: | March 21, 2012 |
By: | /s/ Jamie Mann |
Title: | Jamie Mann, Chief Executive Officer |
7 |
CERTIFICATIONS
I, Jamie Mann, certify that;
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended January 31, 2012 of Harmonic Energy, Inc (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: March 21, 2012
/s/ Jamie Mann
By: Jamie Mann
Title: Chief Executive Officer
CERTIFICATIONS
I, Jamie Mann, certify that;
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended January 31, 2012 of Harmonic Energy, Inc (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: March 21, 2012
/s/ Jamie Mann
By: Jamie Mann
Title: Chief Financial Officer
CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND
CHIEF FINANCIAL OFFICER
PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the quarterly Report of Harmonic Energy, Inc (the “Company”) on Form 10-Q for the quarter ended January 31, 2012 filed with the Securities and Exchange Commission (the “Report”), I, Jamie Mann, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
1. The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and the consolidated result of operations of the Company for the periods presented.
By: | /s/ Jamie Mann |
Name: | Jamie Mann |
Title: | Principal Executive Officer, Principal Financial Officer and Director |
Date: | March 21, 2012 |
This certification has been furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
GOING CONCERN
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3 Months Ended |
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Jan. 31, 2012
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Notes to Financial Statements | |
GOING CONCERN | The accompanying financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern. However, the Company has accumulated deficit of $151,471 as of January 31, 2012. The Company currently has limited liquidity, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time.
Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of managements efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern. |