-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NwNsz4OlI0FW6tGqxUp4e+xp5WSJHqEQS1GzP9WLIZj83iEufwLWoIcp9utMDRFf 0tQp8nDybu0C9LFd6eWGQA== 0001144204-10-043774.txt : 20100813 0001144204-10-043774.hdr.sgml : 20100813 20100813171806 ACCESSION NUMBER: 0001144204-10-043774 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100630 FILED AS OF DATE: 20100813 DATE AS OF CHANGE: 20100813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Max Cash Media Inc CENTRAL INDEX KEY: 0001423107 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 020811868 STATE OF INCORPORATION: NV FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-148722 FILM NUMBER: 101016247 BUSINESS ADDRESS: STREET 1: 50 BROMPTON ROAD STREET 2: APT 1X CITY: GREAT NECK STATE: NY ZIP: 11201 BUSINESS PHONE: 646 303-6840 MAIL ADDRESS: STREET 1: 50 BROMPTON ROAD STREET 2: APT 1X CITY: GREAT NECK STATE: NY ZIP: 11201 10-Q 1 v193564_10q.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 10-Q
(Mark One)
 
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2010

 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number:  333-148722

MAX CASH MEDIA, INC.
(Exact name of registrant as specified in its charter)

Nevada
02-0811868
(State or other jurisdiction of incorporation)
(I.R.S. Employer Identification No.)

50 Brompton Road, Apt. 1X
Great Neck, NY  11021
(Address of principal executive offices)

(646) 303-6840
(Registrant’s telephone number, including area code)

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  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 (§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 ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ¨
 
Accelerated filer  ¨
 
 Non-accelerated filer  ¨
 
Smaller reporting company  x
       
(Do not check if a smaller
Reporting company)
   

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

There were 6,370,000 shares of the registrant’s common stock, $0.001 par value per share, outstanding as of August 10, 2010.

 
 

 

MAX CASH MEDIA, INC.

FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2010

TABLE OF CONTENTS

   
Page
     
PART I - FINANCIAL INFORMATION
3
     
Item 1.
Financial Statements
3
     
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
13
     
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
17
     
Item 4T.
Controls and Procedures
17
     
PART II - OTHER INFORMATION
18
     
Item 1.
Legal Proceedings
18
     
Item 1A.
Risk Factors
18
     
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
18
     
Item 3.
Defaults Upon Senior Securities
18
     
Item 4.
(Removed and Reserved)
19
     
Item 5.
Other Information
19
     
Item 6.
Exhibits
19
     
SIGNATURES
20

 
2

 

PART I – FINANCIAL INFORMATION
 
Item 1.       Financial Statements
 
 
PAGE
   
Condensed Balance Sheets as of June 30, 2010 (Unaudited) and September 30, 2009
4
   
Condensed Statements of Operations for the three and nine months ended June 30, 2010 and 2009, and for the period from July 9, 2007 (inception) to June 30, 2010 (unaudited).
5
   
Condensed Statement of Changes in Stockholders’ Equity/(Deficiency) for the period from July 9, 2007 (inception) to June 30, 2010 (unaudited)
6
   
Condensed Statements of Cash Flows for the nine months ended June 30, 2010 and 2009, and for the period from July 9, 2007 (inception) to June 30, 2010 (unaudited)
7
   
Notes to Condensed Financial Statements (Unaudited)
8

 
3

 

Max Cash Media, Inc.
(A Development Stage Company)
Condensed Balance Sheets
             
   
June 30,
   
September 30,
 
   
2010
   
2009
 
   
(Unaudited)
       
ASSETS
           
             
Current Assets
           
Cash
  $ 55,557     $ 22,545  
Total Assets
  $ 55,557     $ 22,545  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
               
                 
Current Liabilities
               
Accounts Payable
  $ 32,797     $ 4,186  
Accrued Interest Payable
    5,050       777  
Convertible Note Payable
    50,000       -  
Current  Liabilities
    87,847       4,963  
                 
Long Term Liabilities
               
Convertible Note Payable
    -       50,000  
Note Payable
    65,000       -  
                 
Total Liabilities
    152,847       54,963  
                 
Commitments and Contingencies
    -       -  
                 
Stockholders' Deficiency
               
Preferred stock, $0.001 par value; 10,000,000 shares authorized, none issued  and outstanding
    -       -  
Common stock, $0.001 par value; 100,000,000 shares authorized, 6,370,000 shares issued and outstanding, respectively
    6,370       6,370  
Additional paid-in capital
    148,373       146,423  
Deficit accumulated during the development stage
    (252,033 )     (185,211 )
Total Stockholders' Deficiency
    (97,290 )     (32,418 )
                 
Total Liabilities and Stockholders' Deficiency
  $ 55,557     $ 22,545  

See accompanying notes to condensed financial statements.

 
4

 

Max Cash Media, Inc.
(A Development Stage Company)
Condensed Statements of Operations
(Unaudited)

   
For the Three Months Ended
   
For the Nine Months Ended
   
For the period from
July 9, 2007 (inception)
 
   
June 30, 2010
   
June 30, 2009
   
June 30, 2010
   
June 30, 2009
   
to June 30, 2010
 
Operating Expenses
                             
Professional fees
  $ 9,185     $ 3,909     $ 58,322     $ 15,186     $ 214,156  
General and administrative
    1,323       1,230       4,235       8,944       33,700  
Total Operating Expenses
    10,508       5,139       62,557       24,130       247,856  
                                         
Loss from Operations
    (10,508 )     (5,139 )     (62,557 )     (24,130 )     (247,856 )
                                         
Other Income / (Expense)
                                       
Interest Income
    5       -       8       -       873  
Interest Expense
    (2,029 )     -       (4,273 )     -       (5,050 )
                                         
Total Other Income / (Expense) - net
    (2,024 )             (4,265 )     -       (4,177 )
                                         
LOSS FROM OPERATIONS BEFORE INCOME TAXES
    (12,532 )     (5,139 )     (66,822 )     (24,130 )     (252,033 )
                                         
Provision for Income Taxes
    -       -       -       -       -  
                                         
NET LOSS
  $ (12,532 )   $ (5,139 )   $ (66,822 )   $ (24,130 )   $ (252,033 )
                                         
Net Loss Per Share  - Basic and Diluted
  $ (0.00 )   $ (0.00 )   $ (0.01 )   $ (0.00 )        
                                         
Weighted average number of shares outstanding during the period - Basic and Diluted
    6,370,000       6,370,000       6,370,000       6,370,000          

See accompanying notes to condensed financial statements.

 
5

 

Max Cash Media, Inc.
(A Development Stage Company)
Condensed Statement of Changes in Stockholders' Equity/(Deficiency)
For the period from July 9, 2007 (Inception) to June 30, 2010
(Unaudited)

                                 
Deficit
             
   
Preferred Stock
   
Common stock
   
 
   
accumulated
during the
         
Total
Stockholder's
 
                           
Additional paid-in
   
development
   
Subscription
   
Equity/
 
   
Shares
   
Amount
   
Shares
   
Amount
   
capital
   
stage
   
Receivable
   
(Deficiency)
 
                                                 
Balance, July 9, 2007
    -     $ -       -     $ -     $ -     $ -     $ -     $ -  
                                                                 
Common stock issued for services to founder ($0.001)
    -       -       5,000,000       5,000       -       -       -       5,000  
                                                                 
Common stock issued for cash ($0.10/ per share)
    -       -       255,000       255       25,245       -       (25,500 )     -  
                                                                 
In kind contribution of services
    -       -       -       -       593       -       -       593  
                                                                 
Net loss for the period July 9, 2007 (inception) to September 30, 2007
    -       -       -       -       -       (16,593 )     -       (16,593 )
                                                                 
Balance, September 30, 2007
    -       -       5,255,000       5,255       25,838       (16,593 )     (25,500 )     (11,000 )
                                                                 
Common stock issued for cash ($0.10/ per share)
    -       -       1,115,000       1,115       110,385       -       -       111,500  
                                                                 
Cash received for subscription receivable
    -       -       -       -       -       -       25,500       25,500  
                                                                 
In kind contribution of services
    -       -       -       -       2,600       -       -       2,600  
                                                                 
Net loss for the year ended September 30, 2008
    -       -       -       -       -       (127,900 )     -       (127,900 )
                                                                 
Balance, September 30, 2008
    -       -       6,370,000       6,370       138,823       (144,493 )     -       700  
                                                                 
In kind contribution of services
    -       -       -       -       2,600       -       -       2,600  
                                                                 
Forgiveness of a third party account payable
    -       -       -       -       5,000       -       -       5,000  
                                                                 
Net loss for the year ended September 30, 2009
    -       -       -       -       -       (40,718 )     -       (40,718 )
                                                                 
Balance, September 30, 2009
    -       -       6,370,000       6,370       146,423       (185,211 )     -       (32,418 )
                                                                 
In kind contribution of services
    -       -       -       -       1,950       -       -       1,950  
                                                                 
Net loss for the nine months ended June 30, 2010
    -       -       -       -       -       (66,822 )     -       (66,822 )
                                                                 
Balance, June 30, 2010
    -     $ -       6,370,000     $ 6,370     $ 148,373     $ (252,033 )   $ -     $ (97,290 )

See accompanying notes to condensed financial statements.

 
6

 

Max Cash Media, Inc.
(A Development Stage Company)
Condensed Statements of Cash Flows
(Unaudited)

   
For the Nine Months Ended
   
For the Period from
July 9, 2007 (Inception)
 
   
June 30, 2010
   
June 30, 2009
   
to June 30, 2010
 
Cash Flows Used in Operating Activities:
                 
Net Loss
  $ (66,822 )   $ (24,130 )   $ (252,033 )
Adjustments to reconcile net loss to net cash used in operations
                       
In-kind contribution of services
    1,950       1,950       7,743  
Shares issued to founder for services
    -       -       5,000  
Changes in operating assets and liabilities:
                       
Increase in prepaid expenses
    -       4,167       -  
Increase in accounts payable and accrued expenses
    28,611       10,858       37,797  
Increase in accrued interest payable
    4,273       -       5,050  
Net Cash Used In Operating Activities
    (31,988 )     (7,155 )     (196,443 )
                         
Cash Flows From Financing Activities:
                       
Proceeds from note payable
    65,000       4,585       69,585  
Repayment of note payable
    -       -       (4,585 )
Proceeds from loan payable- Related party
    -       -       1,100  
Repayment of loan payable - Related party
    -       -       (1,100 )
Proceeds from convertible note payable
    -       -       50,000  
Proceeds from issuance of common stock
    -       -       137,000  
Net Cash Provided by Financing Activities
    65,000       4,585       252,000  
                         
Net Increase/(Decrease) in Cash
    33,012       (2,570 )     55,557  
                         
Cash at Beginning of Period
    22,545       3,033       -  
                         
Cash at End of Period
  $ 55,557     $ 463     $ 55,557  
                         
Supplemental disclosure of cash flow information:
                       
                         
Cash paid for interest
  $ -     $ -     $ -  
Cash paid for taxes
  $ -     $ 120     $ -  
                         
Supplemental disclosure of non-cash investing and financing activities:
                       
                         
Forgiveness of Related Party Accounts Payable
  $ -     $ 5,000     $ 5,000  

See accompanying notes to condensed financial statements.

 
7

 

MAX CASH MEDIA, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED FINANCIAL STATEMENTS
AS OF JUNE 30, 2010
(UNAUDITED)

NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION

(A) Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in The United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information.  Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations.

It is management's opinion, however that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statements presentation.  The results for the interim period are not necessarily indicative of the results to be expected for the year.

Activities during the development stage include developing the business plan and raising capital.

(B) Use of Estimates

In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period.  Actual results could differ from those estimates.

(C) Cash and Cash Equivalents

The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents.  At June 30, 2010 and September 30, 2009, the Company had no cash equivalents.

(D) Loss Per Share

Basic and diluted net loss per common share is computed based upon the weighted average common shares outstanding as defined by FASB Accounting Standards Codification Topic 260, “Earnings Per Share.”  As of June 30, 2010 and 2009 there were no common share equivalents outstanding.

 
8

 

MAX CASH MEDIA, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED FINANCIAL STATEMENTS
AS OF JUNE 30, 2010
(UNAUDITED)

(E) Income Taxes

The Company accounts for income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”).  Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

(F) Business Segments

The Company operates in one segment and therefore segment information is not presented.

(G) Revenue Recognition

The Company will recognize revenue on arrangements in accordance with FASB ASC No. 605, “Revenue Recognition”.  In all cases, revenue is recognized only when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service is performed and collectability of the resulting receivable is reasonably assured.

(H) Reclassification

Certain amounts from prior period have been reclassified to conform to the current period presentation.

(I) Financial Instruments

The carrying amounts reported in the balance sheet for accounts payable, convertible note payable and note payable approximate fair value based on the short-term maturity of these instruments.

NOTE 2
STOCKHOLDERS’ EQUITY

(A) Common Stock Issued for Cash

During October 2007, the Company issued 1,115,000 shares of common stock for $111,500 ($0.10/share).

 
9

 

MAX CASH MEDIA, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED FINANCIAL STATEMENTS
AS OF JUNE 30, 2010
(UNAUDITED)

During October 2007, the Company collected $25,500 ($0.10/share) for the sale of 255,000 shares of common stock made during the period from July 9, 2007 (inception) through September 30, 2007.

(B) In-Kind Contribution

Effective December 31, 2008, a related party forgave accounts payable in the amount of $5,000 for services provided.  The payable was reclassified to additional paid in capital as an in kind contribution of services (See Notes 3, 6 and 7).

For the nine months ended June 30, 2010, a shareholder of the Company contributed services having a fair value of $1,950 (See Note 7).

For the year ended September 30, 2009, a shareholder of the Company contributed services having a fair value of $2,600 (See Note 7).

For the year ended September 30, 2008, a shareholder of the Company contributed services having a fair value of $2,600 (See Note 7).

For the year ended September 30, 2007 a shareholder of the Company contributed services having a fair value of $593. (See Note 7)

(C) Stock Issued for Services

On July 9, 2007, the Company issued 5,000,000 shares of common stock to its founder having a fair value of $5,000 ($0.001/share) in exchange for services provided (See Note 7).

NOTE 3       FORGIVENESS OF A PAYABLE

Effective December 31, 2008, a related party forgave accounts payable in the amount of $5,000 for services provided.  The payable was reclassified to additional paid in capital as an in kind contribution of services (See Notes 2, 6 and 7).

NOTE 4       NOTE PAYABLE

On May 10, 2010, the Company issued a promissory note in the amount of $65,000due  November 9, 2011 and bearing interest at a rate of 10% per annum.

During 2009, the Company owed $4,585 to an unrelated third party for expenses paid on behalf of the Company.  The loan was repaid in full during August 2009.

 
10

 

MAX CASH MEDIA, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED FINANCIAL STATEMENTS
AS OF JUNE 30, 2010
(UNAUDITED)

NOTE 5       CONVERTIBLE NOTE PAYABLE

On July 29, 2009, the Company issued a convertible promissory note in the amount of $50,000due January 28, 2011 and bearing interest at a rate of 9% per annum.  All debt can be converted into shares at a conversion price to be mutually determined by the Company and the holder of the note.

NOTE 6       COMMITMENTS

On October 15, 2007, the Company entered into a consulting agreement with a related party to receive administrative and other miscellaneous services.  The Company is required to pay $7,500 a month.  The agreement was to remain in effect unless either party desired to cancel the agreement.   This agreement has been terminated as of July 31, 2008.  In addition, the payment due for the month of July has been reduced to $5,000 by mutual agreement of both parties.  Effective December 31, 2008, the amount of $5,000 was forgiven (See Notes 2(B) and 3 and 7).

NOTE 7       RELATED PARTY TRANSACTIONS

For the nine months ended June 30, 2010, a shareholder of the Company contributed services having a fair value of $1,950 (See Note 2(B)).

For the year ended September 30, 2009, a shareholder of the Company contributed services having a fair value of $2,600 (See Note 2(B)).

For the year ended September 30, 2008 a shareholder of the Company contributed services having a fair value of $2,600 (See Note 2(B)).

Effective December 31, 2008, a related party forgave accounts payable in the amount of $5,000 for services provided.  The payable was reclassified to additional paid in capital as an in kind contribution of services (See Notes 3, 6 and 7).

For the year ended September 30, 2007, the Company received $1,100 from a principal stockholder. Pursuant to the terms of the loan, the loan is non interest bearing, unsecured and due on demand.  The loan was repaid on October 23, 2007.

For the year ended September 30, 2007, a shareholder of the Company contributed services having a fair value of $593 (See Note 2(B)).

On July 9, 2007, the Company issued 5,000,000 shares of common stock to its founder having a fair value of $5,000 ($0.001/share) in exchange for services provided (See Note 2B)).

 
11

 

MAX CASH MEDIA, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED FINANCIAL STATEMENTS
AS OF JUNE 30, 2010
(UNAUDITED)

NOTE 8       GOING CONCERN

As reflected in the accompanying financial statements, the Company is in the development stage and has accumulated losses of $252,033 and used cash in operations of $196,443 since inception.  The Company also has a working capital deficiency of $32,290.  This raises substantial doubt about its ability to continue as a going concern.  The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan.  The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern.

 
12

 

ITEM 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations

Statement Regarding Forward-Looking Information

This report contains forward-looking statements. All statements other than statements of historical facts included in this Quarterly Report on Form 10-Q, including without limitation, statements in this Management’s Discussion and Analysis of Financial Condition and Results of Operations regarding our financial position, estimated working capital, business strategy, the plans and objectives of our management for future operations and those statements preceded by, followed by or that otherwise include the words “believe,” “expects,” “anticipates,” “intends,” “estimates,” “projects,” “target,” “goal,” “plans,” “objective,” “should,” or similar expressions or variations on such expressions are forward-looking statements. We can give no assurances that the assumptions upon which the forward-looking statements are based will prove to be correct. Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements.

Actual operations and results may materially differ from present plans and projections due to changes in economic conditions, new business opportunities, changed business conditions, and other developments. Other factors that could cause results to differ materially are described in our filings with the Securities and Exchange Commission.

The following are factors that could cause actual results or events to differ materially from those anticipated, and include, but are not limited to general economic, financial and business conditions, changes in and compliance with governmental laws and regulations, including various state and federal environmental regulations, our ability to obtain additional financing from outside investors and/or bank and mezzanine lenders; and our ability to generate sufficient revenues to cover operating losses and position us to achieve positive cash flow.

Readers are cautioned not to place undue reliance on the forward-looking statements contained herein, which speak only as of the date hereof. We believe the information contained in this Form 10-Q to be accurate as of the date hereof. Changes may occur after that date. We will not update that information except as required by law in the normal course of its public disclosure practices.

Additionally, the following discussion regarding our financial condition and results of operations should be read in conjunction with the financial statements and accompanying notes included in Item 1 of Part I of this Quarterly Report on Form 10-Q and with the Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and accompanying notes included our Annual Report on Form 10-K for the fiscal year ended September 30, 2009, filed with the Securities and Exchange Commission.
 
Limited Operating History

We have not begun operations, and we require outside capital to implement our business model.

 
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We have not previously demonstrated that we will be able to expand our business through increased investment marketing. We cannot guarantee that the expansion efforts described in this report will be successful.  Our business is subject to risks inherent in growing an enterprise, including limited capital resources and possible rejection of our acquired properties.

Future financing may not be available to us on acceptable terms.  If financing is not available on satisfactory terms, we may be unable to continue expanding our operations.  Equity financing will result in a dilution to existing shareholders.
 
Material Changes in Results of Operations

We have not generated any revenues from operations for the period from July 9, 2007 (date of inception) through June 30, 2010.

Three Months Ended June 30, 2010 

We incurred an operating loss of $10,508 for the three month period ended June 30, 2010, compared to an operating loss of $5,139 for the three month period ended June 30, 2009.  The increase in operating loss for the three month period ended June 30, 2010 was mainly due to increased professional fees related to our financial reporting obligations, partially offset by lower general and administrative expenses.

Net loss for the three month period ended June 30, 2010 was $12,532, compared to a net loss of $5,139 for the three month period ended June 30, 2009.   Expenses in the three month period ended June 30, 2010 were comprised of professional fees of $9,185, general and administrative expenses of $1,323, and net interest expenses of $2,024.

Interest expenses related to the promissory notes that we issued on July 29, 2009 and May 10, 2010 were $2,029 for the three months ended June 30, 2010.  The convertible promissory note issued on July 29, 2009 is in the principal amount of $50,000, it bears interest at an annual rate of 9%, it is due on January 28, 2011 and it may be converted into shares of our common stock at a conversion price per share to be agreed by the Company and the note holder.  The promissory note issued on May 10, 2010 is in the principal amount of $65,000, it bears interest at an annual rate of 10% and it is due on November 9, 2011.

Nine Months Ended June 30, 2010 

We incurred an operating loss of $62,557 for the nine month period ended June 30, 2010, compared to an operating loss of $24,130 for the nine month period ended June 30, 2009.  The increase in operating losses for the nine months ended June 30, 2010 was mainly due to increased professional fees related to our financial reporting obligations, partially offset by lower general and administrative expenses.

Net losses for the nine month period ended June 30, 2010 amounted to $66,822, compared to net losses of $24,130 for the nine month period ended June 30, 2009.  Expenses in the period ended June 30, 2010 comprised of professional fees of $58,322, general and administrative expenses of $4,235, and net interest expenses of $4,265.

 
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Period from Inception to June 30, 2010

We incurred an operating loss of $247,856 for the period from July 9, 2007 (inception) through June 30, 2010, and we have not generated any operating revenues since inception.  We anticipate that we will not generate any operating revenues until we are able to raise additional capital to fund our operations.

Net losses for the period from July 9, 2007 (inception) through June 30, 2010 amounted to $252,033.   Expenses in that period were comprised of professional fees of $214,156, general and administrative expenses of $33,700, and net interest expenses of $4,177.

Material Changes in Financial Condition

As of June 30, 2010, we had total assets of $55,557 consisting of cash.  As of September 30, 2009, we had total assets of $22,545 consisting of cash.  Total current liabilities at June 30, 2010 were $87,847, consisting of accounts payable of $32,797, accrued interest of $5,050 and a convertible note payable of $50,000, as compared to $4,963 at September 30, 2009.  Long term liabilities, consisting of the promissory note described above was $65,000 at June 30, 2010 and $50,000 at September 30, 2009.
 
We will need additional funding to satisfy our cash requirements for the next twelve months. Completion of our plan of operation is subject to attaining adequate revenue. We cannot assure investors that additional financing will be available. In the absence of additional financing, we may be unable to proceed with our plan of operations.
 
We will need substantial amounts of capital to implement our planned business strategies.  Given the currently unsettled state of the capital markets and credit markets, there is no assurance that we will be able to raise the amount of capital that we seek for potential acquisitions or for operating expenses.  If we are unable to raise the necessary capital at the times we require such funding, we may have to materially change our business plan, delaying implementation of aspects of our business plan or curtailing or abandoning our business plan.  Investing in us is a speculative investment and investors may lose all of their investment.

Since our inception, we have been financed primarily by loans and private placements of our common stock.  We raised $25,500 from July 9, 2007 (inception) through September 30, 2007 and $111,500 in October 2007 from sales of common stock.  The total net funds raised of $252,000 since inception through June 30, 2010 have been used principally as follows: (a) $33,700 in general and administrative expenses, and (b) $214,156 in professional fees in connection with the filing of a registration statement and our financial reporting requirements.  At June 30, 2010, we had available cash balances of $55,557 which are held in interest bearing bank accounts.

 
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We anticipate that our operational and general and administrative expenses for the next 12 months will total approximately $67,000. We do not anticipate the purchase or sale of any significant equipment. We also do not expect any significant additions to the number of employees. The foregoing represents our best estimate of our cash needs based on current planning and business conditions. The exact allocation, purposes and timing of any monies raised in subsequent private financings may vary significantly depending upon the exact amount of funds raised and our progress with the execution of our business plan. We anticipate that depending on market conditions and our plan of operations, we may incur operating losses in the foreseeable future. Therefore, our auditors have raised substantial doubt about our ability to continue as a going concern.
 
As reflected in the accompanying financial statements, we are in the development stage with no operations, we have used net cash in operations of $196,443 from inception, and have a net loss since inception of $252,033. The Company also has a working capital deficiency of $32,290 and a stockholders’ deficiency of $97,290 as of June 30, 2010.  This raises substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent on our ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

Management believes that actions presently being taken to obtain additional funding and implement our strategic plans provide the opportunity for us to continue as a going concern.  However at this time, we do not believe that our current cash is sufficient for our operations for the next 12 months.

Net Cash Used in Operating Activities

Cash utilized in operating activities was $31,988 for the nine months ended June 30, 2010, as compared to $7,155 for the nine months ended June 30, 2009.  The increase was primarily due to increases in professional fees.  During the period from July 9, 2007 (date of inception) through June 30, 2010, we used net cash in operating activities of $196,443 mainly for professional fees and general and administrative expenses as discussed and quantified above.

Net Cash Provided by Financing Activities

We generated $65,000 through financing activities during the nine months ended June 30, 2010, through the issuance of a promissory note.  During the nine months ended June 30, 2010, we did not generate any financing from the issuance of common stock.  During the period from July 9, 2007 (date of inception) through June 30, 2010, we received net cash provided by financing activities of $252,000 from private placements and issuance of promissory notes.

 
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Critical Accounting Policies

Our financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States (“GAAP”). GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenues and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.
 
Our significant accounting policies are summarized in Note 1 of our financial statements. While all these significant accounting policies impact its financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our results of operations, financial position or liquidity for the periods presented in this report.
 
Off Balance Sheet Transactions

None.
 
Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4T.  Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 (“Exchange Act”) is 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 by us in the reports that we file under the Exchange Act is accumulated and communicated to our management, as appropriate to allow timely decisions regarding required disclosure.

Pursuant to Rule 13a-15(b) under the Exchange Act, the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) (the Company’s principal financial and accounting officer), of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

 
17

 

Our management, including our Chief Executive Officer and Chief Financial Officer (Principal Financial Officer), does not expect that our disclosure controls and procedures or our internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. 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, but are not limited to, 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 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, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Changes in internal control over financial reporting. There have been no changes in our internal control over financial reporting that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 PART II – OTHER INFORMATION

Item 1. Legal Proceedings.
 
Currently we are not aware of any litigation pending or threatened by or against the Company.

Item 1A. Risk Factors

Not applicable.
 
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
 
We issued no equity securities during the quarter ended June 30, 2010.
 
Item 3. Defaults Upon Senior Securities.
 
None.

 
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Item 4. (Removed and Reserved)
 
Item 5. Other Information.
 
None.
 
Item 6. Exhibits.
 
31.1
Certification of Principal Executive Officer and Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002
 
32.1
Certification of Chief Executive Officer and Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 
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SIGNATURES

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

August 13, 2010
 
MAX CASH MEDIA, INC.
       
   
By:
/s/ Noah Levinson
   
Noah Levinson, Chief Executive Officer and
Chief Financial Officer

 
 

 
EX-31.1 2 v193564_ex31-1.htm
Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE AND FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Noah Levinson, Principal Executive Officer and Principal Financial Officer of Max Cash Media, Inc., certify that:

1.            I have reviewed this quarterly report on Form 10-Q of Max Cash Media, Inc. for the quarterly period ended June 30, 2010;
 
2.            Based on my knowledge, the quarterly report does not contain any untrue statement of 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 quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods present in this report;

4.            I am 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 my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this quarterly report is being prepared;

(b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my 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 my 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 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.            I have disclosed, based on my 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 function):

(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 controls.

Date:  August 13, 2010
 
/s/ Noah Levinson
   
Noah Levinson, Principal Executive and Financial
Officer

 
 

 
EX-32.1 3 v193564_ex32-1.htm
Exhibit 32.1

CERTIFICATION 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 Max Cash Media, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2010 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Noah Levinson, Chief Executive Officer and Chief Financial 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) or 15(d) of the Securities Exchange Act of 1934; and

(2)           The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Date:  August 13, 2010
/s/ Noah Levinson
 
Noah Levinson, Chief Executive and Financial
Officer

 
 

 
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