0001204459-12-000295.txt : 20120214 0001204459-12-000295.hdr.sgml : 20120214 20120214130450 ACCESSION NUMBER: 0001204459-12-000295 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20111231 FILED AS OF DATE: 20120214 DATE AS OF CHANGE: 20120214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Baby Fox International, Inc. CENTRAL INDEX KEY: 0001434388 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-WOMEN'S CLOTHING STORES [5621] IRS NUMBER: 260775642 STATE OF INCORPORATION: NV FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-150835 FILM NUMBER: 12606881 BUSINESS ADDRESS: STREET 1: SUITE 6A02, HANWEI PLAZA, 7 GUANGHUA RD. CITY: BEIJING STATE: F4 ZIP: 100004 BUSINESS PHONE: 86 10 6562 9889 MAIL ADDRESS: STREET 1: SUITE 6A02, HANWEI PLAZA, 7 GUANGHUA RD. CITY: BEIJING STATE: F4 ZIP: 100004 10-Q 1 form10q.htm FORM 10-Q Baby Fox International, Inc.: Form 10-Q - Filed by newsfilecorp.com

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2011

[_] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to ____________

Commission file number 333-150835

BABY FOX INTERNATIONAL, INC.
(Exact name of small business issuer as specified in its charter)

Nevada 26-0775642
(State of other jurisdiction of (IRS Employer identification No.)
incorporation or organization)  
   
   
Suite 6A02, Hanwei Plaza, 7 Guanghua Rd.  
Beijing, China 100004
(Address of principal executive offices) (Zip Code)

+ 86 10 6562 9889
(Registrant’s telephone number, including area code)

Indicated by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the 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 [X]      No [_]

Indicate by check mark whether the registrant is a large accelerate filer, an accelerate filer, a non-accelerated filer, or a smaller reporting company. See the definition 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]


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [X]      No [_]

Number of shares of common stock outstanding as of February 13, 2012: 2,390,013


INDEX

                                                                                                                                                                                                                            Page No.
PART I FINANCIAL INFORMATION  
Item 1. Financial Statements (Unaudited) 1
  Balance Sheets as of December 31, 2011 and June 30, 2011 1
Statements of Operations and Other Comprehensive Income (Loss) for the Three and Six Months Ended December 31, 2011 and 2010 and from July 1, 2011 (Re-entrance into Development Stage) through December 31, 2011 2
Statement of Changes in Stockholders’ Equity (Deficit) from July 1, 2011 (re-entrance into Development Stage) through December 31, 2011 3
  Statements of Cash Flows for the Six Months Ended December 31, 2011 and 2010 and from July 1, 2011 through December 31, 2011 4
  Notes to Financial Statements 5
Item 2. Management’s Discussion and Analysis of Financial Condition And Results of Operations 9
Item 3. Quantitative and Qualitative Disclosure About Market Risk 11
Item 4. Controls and Procedures 11
PART II OTHER INFORMATION  
Item 1. Legal Proceedings 12
Item 1A. Risk Factors 12
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 12
Item 3. Defaults Upon Senior Securities 12
Item 5. Other Information 12
Item 6. Exhibits 13
SIGNATURES 14


FORWARD LOOKING STATEMENTS

Information included or incorporated by reference in this quarterly report may contain forward-looking statements. This information may involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "may," "should," "expect," "anticipate," "estimate," "believe," "intend" or "project" or the negative of these words or other variations on these words or comparable terminology.

This quarterly report contains forward-looking statements, including statements regarding, among other things, our intent to enter into a reverse acquisition transaction and/or obtain additional financing. These statements may be found under “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, as well as in this quarterly report generally. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including, without limitation, the risks outlined under "Risk Factors" in our prior annual report and matters described in this quarterly report generally. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this quarterly report will in fact occur.

Except as otherwise required by applicable laws, we undertake no obligation to publicly update or revise any forward-looking statements described in the quarterly report, whether as a result of new information, future events, changed circumstances or any other reason after the date of this quarterly report.


PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BABY FOX INTERNATIONAL, INC.
(A Development Stage Company)
BALANCE SHEETS
(Unaudited)

    December 31,     June 30,  
    2011     2011  
ASSETS    

CURRENT ASSETS:

           

Cash

$  11,150   $  16,549  

TOTAL CURRENT ASSETS AND TOTAL ASSETS

$  11,150   $  16,549  
             
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)   

CURRENT LIABILITIES:

           

Accrued liabilities

$  5,329   $  5,000  

Advances payable

  30,180     -  
TOTAL CURRENT LIABILITIES AND TOTAL LIABILITIES   35,509     5,000  
             

STOCKHOLDERS’ EQUITY (DEFICIT)

           

Preferred Stock, $0.001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding

  -     -  

Common Stock, $0.001 par value, 90,000,000 shares authorized, 2,390,013 shares issued and outstanding

  2,390     2,390  

Additional paid-in capital

  69,980     69,980  

Accumulated deficit

  (96,729 )   (60,821 )

TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)

  (24,359 )   11,549  

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

$  11,150   $  16,549  

See accompanying notes to financial statements.

1



BABY FOX INTERNATIONAL, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)

                            FROM JULY 1, 2011  
    FOR THE THREE               (RE-ENTRANCE INTO    
    MONTHS ENDED     FOR THE SIX MONTHS     DEVELOPMENT  
    DECEMBER 31,     ENDED DECEMBER 31,     STAGE) THROUGH  
    2011     2010     2011     2010     DECEMBER 31, 2011  
                               

REVENUE

$  -   $ -   $  -   $  -   $  -  
                               

OPERATING EXPENSES:

                             

General and administrative expenses

  12,430     25,378     35,908     263,416     35,908  
                               

TOTAL OPERATING EXPENSES

  12,430     25,378     35,908     263,416     35,908  
                               

NET INCOME (LOSS) FROM CONTINUING OPERATIONS

  (12,430 )   (25,378 )   (35,908 )   (263,416 )   (35,908 )
                               

DISCONTINUED OPERATIONS (NET OF TAXES)

                             

Income from discontinued operations

  -     869,965     -     1,371,385     -  
                               

NET INCOME (LOSS)

  (12,430 )   844,587     (35,908 )   1,107,969     (35,908 )
                               

OTHER COMPREHENSIVE LOSS:

                             

Foreign currency translation loss related to discontinued operations

  -     (60,841 )   -     (140,935 )    -  
                               

COMPREHENSIVE INCOME (LOSS)

$  (12,430 ) $  783,746   $  (35,908 ) $  967,034   $  (35,908 )
                               
                               

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE

                             

Continuing operations

$  (0.01 ) $  0.00   $  (0.02 ) $  (0.00 ) $  (0.02 )

Discontinued operations

  -     0.02     -     0.03     -  
Total $  (0.01 ) $  0.02   $  (0.02 ) $  0.03   $  (0.02 )
                               

BASIC AND DILUTED WEIGHTED AVERAGE

                             
                               

SHARES OUTSTANDING

  2,390,013     40,447,500     2,390,013     40,439,130     2,390,013  

See accompanying notes to financial statements.

2



BABY FOX INTERNATIONAL, INC.
(A Development Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)
(UNAUDITED)

                                        ACCUMULATED        
                                         OTHER     TOTAL  
          ADDITIONAL           COMPREHENSIVE     STOCKHOLDERS’   
    PREFERRED STOCK     COMMON STOCK     PAID-IN     ACCUMULATED      INCOME     EQUITY  
  Shares     Amount     Shares     Amount     CAPITAL      DEFICIT     (LOSS)     (DEFICIT)  

BALANCES - June 30, 2010

  -   $ -     40,427,500   $  40,427   $  -   $  (7,095,053 ) $  18,911   $  (7,035,715 )

Common stock issued for legal services

  -     -     20,000     20     69,980     -     -     70,000  
                                                 

Effect of reorganization

  -         (38,057,487 )   (38,057 )   -     8,694,563     314,754     8,971,260  
                                                 

Net loss

  -     -     -     -     -     (1,660,331 )   -     (1,660,331 )

Foreign currency translation adjustment

  -     -     -     -     -     -     (333,665 )   (333,665 )

BALANCES - June 30, 2011

  -     -      

2,390,013

    2,390     69,980     (60,821 )   -     11,549  
                                                 

Net loss

  -     -     -     -     -     (35,908 )   -     (35,908 )

BALANCES - December 31, 2011

- $ - 2,390,013 $ 2,390 $ 69,980 $ (96,729 ) $ - $ (24,359 )

See accompanying notes to financial statements.

3



BABY FOX INTERNATIONAL, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)

      FROM JULY 1, 2011
      (RE-ENTRANCE INTO
  FOR THE SIX MONTHS ENDED DEVELOPMENT
  DECEMBER 31, STAGE) THROUGH
  2011 2010 DECEMBER 31, 2011
       

OPERATING ACTIVITIES:

                 

Net income (loss)

$  (35,908 ) $  1,107,969 $  (35,908 )

Income from discontinued operations

  -     1,371,385     -  

Net loss from continuing operations

(35,908 ) (263,416 ) (35,908 )

Adjustments to reconcile net loss from continuing operations to net cash used in operating activities from continuing operations:

           

Common stock issued for legal services

- 70,000 -

Change in operating assets and liabilities:

                 

Accrued liabilities

329 191,921 329

NET CASH USED IN OPERATING ACTIVITIES

  (35,579 )   (1,495 )   (35,579 )
       

FINANCING ACTIVITIES:

                 

Proceeds from third party advances

30,180 - 30,180

NET CASH PROVIDED BY FINANCING ACTIVITIES

  30,180     -     30,180  
       

DECREASE IN CASH

  (5,399 )   (1,495 )   (5,399 )
       

CASH - BEGINNING OF THE PERIOD

  16,549     19,096     16,549  
       

CASH - END OF THE PERIOD

$  11,150   $  17,601   $  11,150  
       

DISCONTINUED OPERATIONS

                 

Net cash used in operating activities

$  - $  (2,580,612 ) $  -

Net cash used in investing activities

  -     (10,082 )   -  

Net cash provided by financing activities

- 2,680,844 -

DECREASE IN CASH FROM DISCONTINUED OPERATIONS

  -     90,150     -  

EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS

- 5,244 -

CASH - BEGINNING OF THE PERIOD FROM DISCONTINUED OPERATIONS

  -     161,380     -  

CASH - END OF THE PERIOD FROM DISCONTINUED OPERATIONS

$  - $  256,774 $  -

SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION

           

Income tax paid

$  - $  - $  -

Interest expense paid

$  -   $  -   $  -  

See accompanying notes to financial statements.

4



BABY FOX INTERNATIONAL, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
For the Three and Six Months Ended December 31, 2011 and 2010
(Unaudited)

NOTE 1 – INTERIM FINANCIAL STATEMENTS

The accompanying unaudited interim financial statements as of December 31, 2011, for the three and six months ended December 31, 2011 and 2010, and for the period from July 1, 2011 (re-entrance into development stage) through December 31, 2011 have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with instructions to Form 10-Q. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of December 31, 2011, the results of operations and cash flows for the three and six months ended December 31, 2011 and 2010, and for the period from July 1, 2011 (re-entrance into development stage) through December 31, 2011. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and six month periods ended December 31, 2011 and for the period from July 1, 2011 (Re-entrance into development stage) through December 31, 2011 are not necessarily indicative of the results to be expected for any subsequent quarter of the entire year ending June 30, 2012. The balance sheet at June 30, 2011 has been derived from the audited financial statements at that date.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended June 30, 2011 as included in our report on Form 10-K.

NOTE 2 – OPERATIONS

ORGANIZATION

Until June 30, 2011, Baby Fox International, Inc. (the “Company”), through its wholly-owned subsidiary Shanghai Baby Fox Fashion Co., Ltd. (“Shanghai Baby Fox”) was a specialty retailer, developer and designer of fashionable, value-priced women’s apparel and accessories. The Company primarily sold merchandise through its corporate-owned stores located within upscale shopping malls across China. The mall operator collected the proceeds of sales from customers and remitted the proceeds, net of rent and other charges, to the Company. In addition, the Company sold merchandise to licensed non-corporate owned stores which only carry the Baby Fox brand merchandise.

On June 30, 2011, the Company entered into and closed a reorganization agreement (the “Reorganization Agreement”), with Shanghai Baby Fox, Baby Fox Limited, Hitoshi Yoshida and BBFX Holding Corp. (“Newco”). Pursuant to the terms of the Reorganization Agreement, the Company transferred all of its ownership interest in Shanghai Baby Fox, its operating subsidiary, to Newco in exchange for all of the capital stock of Newco (the “Subsidiary Transfer”), and then transferred all of its ownership interest in Newco to Baby Fox Limited, its majority shareholder which is wholly owned by Hitoshi Yoshida (the “Disposition”). Accordingly, Baby Fox Limited and Hitoshi Yoshida canceled an aggregate of 38,057,487 shares of the Company’s common stock held by them, which shares constituted approximately 94% of the Company’s outstanding shares of common stock immediately before the cancellation. (the “Share Cancellation” and, together with the Subsidiary Transfer and the Disposition, the “Reorganization”).

On June 30, 2011, the Company entered into a novation agreement (the “Novation Agreement”) with Jieming Huang and Newco, pursuant to which Newco became the obligor and assumed all of the obligations and rights of the Company (the “Novation”) under that certain Loan Agreement dated February 18, 2008 (the “Original Loan Agreement”), pursuant to which Jieming Huang provided a loan with a principal amount of $810,160 and with a five percent annual interest rate to the Company. As a result of the Novation, the Company is no longer a party to the Original Loan Agreement and is no longer obligated to repay the related loan balance. At the time of entering into the Novation Agreement, Jieming Huang was the Chief Executive Officer and a director of the Company.

5



BABY FOX INTERNATIONAL, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
For the Three and Six Months Ended December 31, 2011 and 2010
(Unaudited)

As a result of the Reorganization, the Company changed from an operating company to a company in development stage on June 30, 2011. The current primary activity of the Company involves seeking a company or companies that it can acquire or with which it can merge.

GOING CONCERN

As reflected in the accompanying financial statements, the Company has a working capital deficiency, has no stabilized source of revenues and needs additional cash resources to maintain its operations. These factors raise substantial doubt about our ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on its ability to raise additional capital or obtain necessary debt financing. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management is currently working on a new business plan and looking for additional funding sources to support its ongoing business.

NOTE 3 – DISCONTINUED OPERATIONS

As discussed in Note 2, the Company completed its Reorganization on June 30, 2011. The Reorganization resulted in an addition of $8,694,563 to retained earnings, which was primarily comprised of net liabilities assumed by Newco and the recognition of the accumulated foreign currency translation gain of $314,754.

Shanghai Baby Fox has been reflected as discontinued operations for all periods presented in the Company’s financial statements. Accordingly, the revenue, costs, and expenses of Shanghai Baby Fox have been reported separately in the statements of operations and cash flows for the three and six months ended December 31, 2011. The results of discontinued operations do not reflect any allocation of corporate general and administrative expense. Interest expenses were $31,497 and $62,748 for the three and six months ended December 31, 2010, respectively, and were all allocated to discontinued operations as all debt outstanding on the Reorganization date was assumed by the Newco as a result of the Reorganization.

The amounts reported in income from discontinued operations for the three and six months ended December 31, 2010 were as follows:

    Three Months Ended     Six Months Ended  
    December 31, 2010     December 31, 2010  
             
Sales $  6,765,134   $  12,020,072  
Cost of goods sold   (3,003,546 )   (4,970,030 )
Gross profit   3,761,588     7,050,042  
Operating expenses   (2,862,257 )   (5,624,771 )
Operating income   899,331     1,425,271  
Other expenses-net   (29,366 )   (53,886 )
Income from discontinued operations (net of income taxes of $0) $ 869,965   $ 1,371,385  

6



BABY FOX INTERNATIONAL, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
For the Three and Six Months Ended December 31, 2011 and 2010
(Unaudited)

Related Party Transactions

Shanghai Baby Fox purchased 100% of its merchandise for the six months ended December 31, 2010 from Changzhou CTS Fashion Co., Ltd. (“CTS”) which was owned by the former majority shareholder and Chief Executive Officer (“CEO”) of the Company. Total purchases from CTS amounted to $6,992,875 for the six months ended December 31, 2010.

Shanghai Baby Fox also rented warehouse and office space from CTS and one of its former board directors, Ms. Fengling Wang. Total rent to CTS and Fengling Wang, respectively, were $17,147 and $4,473 for the six months ended December 31, 2010. Rent to related parties is included in the income from discontinued operations.

NOTE 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The unaudited interim financial statements include the accounts of the Company and its wholly-owned subsidiary, Shanghai Baby Fox. All significant inter-company balances and transactions have been eliminated. The financial statements for the six months ended December 31, 2010 were restated to reflect the discontinuation of Shanghai Baby Fox.

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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company includes in cash and cash equivalents all short-term, highly liquid investments that mature within three months of their acquisition date. Cash equivalents consist principally of investments in interest-bearing demand deposit accounts and liquidity funds with financial institutions and are stated at cost, which approximates fair value.

Income (Loss) per Share

Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of shares of common stock outstanding during the period including stock options or warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options or warrants), and convertible debt or convertible preferred stock, using the if-converted method. EPS excludes all potential dilutive shares of common stock if their effect is anti-dilutive.

For the three and six months ended December 31, 2011 and 2010, there were no potentially dilutive financial instruments outstanding. Basic and diluted income (loss) per share is computed as net income (loss) divided by the weighted-average number of common shares outstanding for the period.

7



BABY FOX INTERNATIONAL, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
For the Three and Six Months Ended December 31, 2011 and 2010
(Unaudited)

Recent accounting pronouncements

The Company does not expect that any recently issued accounting pronouncement will have a significant impact on the results of operations, financial position, or cash flows of the Company.

NOTE 5 – ADVANCES PAYABLE

As of December 31, 2011, the Company was indebted to a third party for cash advances of $30,180. The amount is unsecured, non-interest bearing and due on demand.

NOTE 6 – EQUITY TRANSACTIONS

On September 16, 2010, the Company issued 20,000 shares to The Crone Law Group for legal services valued at $70,000. The shares consisted of 10,000 shares for the firm’s work on the registration statement on Form S-1 and 10,000 shares for the reduced hourly rate offered for the firm’s on-going work. These shares were recorded by the Company on the grant date at their fair values.

In connection with the Reorganization (see Note 2), an aggregate of 38,057,487 shares of the Company’s Common Stock held by Baby Fox Limited and Hitoshi Yoshida were cancelled on June 30, 2011.

NOTE 7 – STOCK PURCHASE AGREEMENT

On November 30, 2011, the Company entered into a stock purchase agreement, or the “Stock Purchase Agreement”, by and among Mu Zhang, Catalpa Holdings, Inc., First Prestige, Inc., JD Infinity Holdings, Inc. and Favor Jumbo Enterprises Limited (the “Sellers”), Toby Investment Group (the “Original Purchaser”) and the Company. Pursuant to the terms of the Stock Purchase Agreement, the Sellers agreed to sell to the Original Purchaser an aggregate 1,899,051 shares (the “Shares”), or approximately 79.5%, of the Company’s outstanding common stock, for a purchase price of $275,000. Mu Zhang, one of the Sellers, is the sole officer and director and the majority shareholder of the Company. The closing of the sale of the Shares was subject to certain conditions, including the Company entering into certain ancillary agreements in connection with the closing.

On January 5, 2012, the Company, the Sellers, the Original Purchaser and IFMT, LLC (the “New Purchaser”) entered into a Novation and Amendment to Stock Purchase Agreement dated as of January 5, 2012, pursuant to which the parties agreed to a novation under the Stock Purchase Agreement of the New Purchaser for the Original Purchaser, as well as certain other minor amendments.

On January 20, 2012, the Sellers terminated the Stock Purchase Agreement with the New Purchaser due to the New Purchaser’s failure to satisfy the conditions to closing, including funding the purchase price.

8


ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward Looking Statements

The following discussion and analysis of the results of operations and financial condition of Baby Fox International, Inc. (“Baby Fox”) for the three and six months ended December 31, 2011 and 2010 should be read in conjunction with Baby Fox’ consolidated financial statements, and the notes to those financial statements that are included elsewhere in this quarterly report. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the Risk Factors and Business sections in our most recent annual report. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions to identify forward-looking statements.

Our Company

Baby Fox International, Inc. (“Baby Fox”, "we" or the “Company”) is a Nevada corporation organized on August 13, 2007 by Hitoshi Yoshida, a Japanese citizen, as a listing vehicle to acquire Shanghai Baby Fox Fashion Co., Ltd. (“Shanghai Baby Fox”) and to be quoted on the Over-The-Counter Bulletin Board (“OTCBB”). Shanghai Baby Fox, our former wholly owned China-based subsidiary, was originally founded by our former board director, Fengling Wang, in March 2006 under PRC laws. On September 20, 2007, we entered into an Equity Share Acquisition Agreement with Fengling Wang. Pursuant to the Equity Share Acquisition Agreement, we purchased 100% of the equity shares of Shanghai Baby Fox in exchange for RMB 5.72 million, approximately equivalent to $806,608. At the time of the acquisition Hitoshi Yoshida and Fengling Wang were married to each other, this transaction was deemed between entities under common control and the transaction was treated as a reverse merger and, accordingly, Shanghai Baby Fox was the accounting acquirer and Baby Fox was the legal acquirer. The acquisition was consummated on November 26, 2007 when we received the Certificate of Approval from the Shanghai Foreign Economic Relation & Trade Commission.

Until June 30, 2011, we were a specialty retailer, developer, and designer of fashionable, value-priced women’s apparel and accessories. On June 30, 2011, the Company entered into and closed a Reorganization Agreement with our former operating subsidiary Shanghai Baby Fox, Baby Fox Limited, Hitoshi Yoshida and BBFX Holding Corp. (“Newco”). Pursuant to the terms of the Reorganization Agreement, the Company transferred all of its ownership interest in Shanghai Baby Fox, its operating subsidiary, to Newco in exchange for all of the capital stock of Newco, and then transferred all of its ownership interest in Newco to Baby Fox Limited, its former majority shareholder which is wholly owned by Hitoshi Yoshida, and Hitoshi Yoshida, in consideration for Baby Fox Limited and Hitoshi Yoshida agreeing to cancelation of an aggregate of 38,057,487 shares of the Company’s Common Stock previously held by them, which shares constituted approximately 94% of the Company’s outstanding shares of Common Stock. As a result of the disposition of Newco and Shanghai Baby Fox, the Company currently has no subsidiaries and has disposed of nearly all of its operating assets other than a bank account with a small balance for current operating expenses.

The reorganization was structured with the intent that the operating company should be transferred from the Company to Baby Fox Limited and Mr. Yoshida in exchange for their cancellation of their shares in the Company while the remaining shareholders in the Company should receive the residual value in the Company as a shell company available to enter into some future transaction with another operating company.

On June 30, 2011, the Company entered into a novation agreement (the “Novation Agreement”) with Jieming Huang and Newco, pursuant to which Newco became the obligor and assumed all of the obligations and rights of the Company (the “Novation”) under that certain Loan Agreement dated February 18, 2008 (the “Original Loan Agreement”), pursuant to which Jieming Huang provided a loan with a principal amount of $810,160 and with a five percent annual interest rate to the Company. As a result of the Novation, the Company is no longer a party to the Original Loan Agreement and is no longer obligated to repay the related loan balance. At the time of entering into the Novation Agreement, Jieming Huang was the Chief Executive Officer and a director of the Company.

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Hitoshi Yoshida, the owner of Baby Fox Limited, our majority shareholder prior to the reorganization, was married to Fengling Wang but divorced in October 2008. Fengling Wang is the mother of Jieming Huang and Jieping Huang. Fengling Wang, Jieping Huang and Jieping Huang were the Company’s three directors at the time of the Reorganization, and Jieming Huang was the Company’s Chief Executive Officer, President and Chairman at the time of the Reorganization.

On June 30, 2011, the Company entered into a Termination Agreement (the “Termination Agreement”) with Beijing Allstar Business Consulting, Inc. (“Allstar”), pursuant to which the Company terminated its Consulting Agreement with Allstar dated May 18, 2007, as amended and restated on April 28, 2008 (the “Allstar Consulting Agreement”). The parties entered into the Termination Agreement in connection with the Reorganization. As a result of the closing of the reorganization, Baby Fox Limited and its owner Hitoshi Yoshida no longer own any of their previous holdings of 38,057,487 shares of the Company’s Common Stock, which shares previously constituted approximately 94% of the Company’s outstanding shares of Common Stock prior to the Reorganization. The board of directors prior to the Reorganization named Mu Zhang to be the sole officer and director of the Company effective from the time of effectiveness of the reorganization.

As reflected in the accompanying financial statements, the Company has no source of revenues and needs additional cash resources to maintain its operations. These factors raise substantial doubt about our ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on its ability to raise additional capital or obtain necessary debt financing. As discussed elsewhere, our current business plan is to seek and identify a privately-held operating company desiring to become a publicly held company by combining with us through a reverse merger or acquisition type transaction. We cannot predict when, if ever, we will be successful in this venture and, accordingly, we may be required to cease operations at any time, if we do not have sufficient working capital to pay our operating costs for the next 12 months and we will require additional funds to pay our legal, accounting and other fees associated with our company and its filing obligations under federal securities laws, as well as to pay our other accounts payable generated in the ordinary course of our business.

Our current business plan is to seek and identify a privately-held operating company desiring to become a publicly held company by combining with us through a reverse merger or acquisition type transaction. Private companies wishing to have their securities publicly traded may seek to merge or effect an exchange transaction with a shell company with a significant stockholder base. As a result of the merger or exchange transaction, the stockholders of the private company will hold a majority of the issued and outstanding shares of the shell company. Typically, the directors and officers of the private company become the directors and officers of the shell company. Often the name of the private company becomes the name of the shell company.

We have no capital and must depend on our controlling shareholders to provide us with the necessary funds to implement our business plan, although they are under no obligation to do so. Mu Zhang, our sole officer and director, will be primarily responsible for investigating acquisition opportunities with the assistance of certain major shareholders. However, we believe that business opportunities may also come to our attention from various sources, including our professional advisors such as attorneys and accountants, securities broker-dealers, venture capitalists, members of the financial community, and others who may present unsolicited proposals.

We can give no assurances that we will be successful in finding or acquiring a desirable business opportunity, given the limited funds that are expected to be available to us for implementation of our business plan. Furthermore, we can give no assurances that any acquisition, if it occurs, will be on terms that are favorable to us or our current stockholders.

Results of Operations

Comparison of Three Months and Six Months ended December 31, 2011 and 2010

The Company generated no revenue from continuing operations during the three and six months ended December 31, 2011. For a comparison, during the three and six months ended December 31, 2010, the Company had no revenue from continuing operations.

10


A total of $12,430 of operating expenses was incurred during the three months ended December 31, 2011. This compares to $25,378 in expenses during the three months ended December 31, 2010. The decrease in operating expenses was due to the decrease in professional and legal expenses as a result of the Company's transition from an operating company to a shell company.

A total of $35,908 of operating expenses was incurred during the six months ended December 31, 2011. This compares to $263,416 in total operating expenses during the six months ended December 31, 2010. The decrease in operating expenses was due to the decrease in professional and legal expenses as a result of the Company’s transition from an operating company to a shell company.

Liquidity and Capital Resources

As of December 31, 2011, we had $11,150 in cash compared to $16,549 as of June 30, 2011.

It is the belief of management that sufficient working capital necessary to support and preserve the integrity of the Company will be present for the foreseeable future. However, there is no legal obligation for either management or significant stockholders to provide additional future funding. Should the management and significant stockholders fail to provide financing, the Company has not identified any alternative sources. Consequently, there is substantial doubt about the Company’s ability to continue as a going concern.

The Company has no current plans, proposals, arrangements or understandings with respect to the sale or issuance of additional securities prior to the location of a merger or acquisition candidate. Accordingly, there can be no assurance that sufficient funds will be available to the Company to allow it to cover the expenses related to such activities.

The Company’s need for capital may change dramatically as a result of any business acquisition or combination transaction. There can be no assurance that the Company will identify any such business, product, technology or company suitable for acquisition in the future. Further, there can be no assurance that the Company would be successful in consummating any acquisition on favorable terms or that it will be able to profitably manage the business, product, technology or company it acquires.

Regardless of whether the Company’s cash assets prove to be inadequate to meet the Company’s operational needs, the Company might seek to compensate providers of services by issuances of stock in lieu of cash.

Off-Balance Sheet Arrangements

We currently do not have any off-balance sheet arrangements.

Recent Accounting Pronouncements

We continue to assess the effects of recently issued accounting standards. The impact of all recently adopted and issued accounting standards has been disclosed in the notes to the financial statements.

Critical Accounting Policies and Estimates

We are a shell company and, as such, we do not employ critical accounting estimates. Should we resume operations we will employ critical accounting estimates and will make any and all disclosures that are necessary and appropriate.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Not required.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

11


Our management, with the participation of our principal executive officer and principal financial officer, Mu Zhang, evaluated the effectiveness of our disclosure controls and procedures. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports, such as this report, that it 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. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on that evaluation, Ms. Zhang concluded that as of December 31, 2011, our disclosure controls and procedures were not effective due to the material weaknesses described in Management’s Report on Internal Control over Financial Reporting contained in the Company’s 2011 Annual Report on Form 10-K.

Changes in Internal Control Over Financial Reporting

During the quarter ended December 31, 2011, there were no changes in our internal control over financial reporting identified in connection with the evaluation performed during the fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

There has been no material change in the Company’s risk factors as previously disclosed in the Company’s Annual Report on Form 10-K filed with the SEC on September 28, 2011.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 5. OTHER INFORMATION

None.

12


ITEM 6. EXHIBITS

Exhibit No. Description

31.1

Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1 Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS XBRL Instance Document
101.SCH XBRL Taxonomy Extension Schema
101.CAL XBRL Taxonomy Extension Calculation Linkbase
101.DEF XBRL Taxonomy Extension Definition Linkbase
101.LAB XBRL Taxonomy Extension Label Linkbase
101.PRE XBRL Taxonomy Extension Presentation Linkbase

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SIGNATURES

In accordance with 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.

  BABY FOX INTERNATIONAL, INC.
   
Date: February 14, 2012
  By: /s/ Mu Zhang                                         
  Mu Zhang
Chief Executive Officer and Chief Financial Officer
(Principal Executive Officer and Principal Financial Officer)

14


EXHIBIT INDEX

Exhibit No. Description

31.1

Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1 Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C.  Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS XBRL Instance Document
101.SCH XBRL Taxonomy Extension Schema
101.CAL XBRL Taxonomy Extension Calculation Linkbase
101.DEF XBRL Taxonomy Extension Definition Linkbase
101.LAB XBRL Taxonomy Extension Label Linkbase
101.PRE XBRL Taxonomy Extension Presentation Linkbase

15


EX-31.1 2 exhibit31-1.htm EXHIBIT 31.1 Baby Fox International, Inc.: Exhibit 31.1 - Filed by newsfilecorp.com

EXHIBIT 31.1

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

I, Mu Zhang, certify that:

1. I have reviewed this report on Form 10-Q for the quarter ended December 31, 2011 of Baby Fox International, Inc.;

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(s) 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(s) 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 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 over financial reporting.


Date: February 14, 2012 By: /s/ Mu Zhang                             
  Mu Zhang
(Principal Executive Officer and
Principal Financial Officer)


EX-32.1 3 exhibit32-1.htm EXHIBIT 32.1 Baby Fox International, Inc.: Exhibit 32.1 - Filed by newsfilecorp.com

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 Baby Fox International, Inc. (the “Company”) on Form 10-Q for the quarter ended December 31, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mu Zhang, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(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.


Date: February 14, 2012 By: /s/ Mu Zhang                            
  Mu Zhang
(Principal Executive Officer and
Principal Financial Officer)


EX-101.INS 4 bbyf-20111231.xml XBRL INSTANCE DOCUMENT --06-30 bbyf Baby Fox International, Inc. 2011-12-31 0001434388 No Smaller Reporting Company No 10-Q false 2390013 Yes 2012 Q2 0001434388 2012-02-13 0001434388 2011-10-01 2011-12-31 0001434388 2011-12-31 0001434388 2011-06-30 0001434388 2010-10-01 2010-12-31 0001434388 2011-07-01 2011-12-31 0001434388 2010-07-01 2010-12-31 0001434388 us-gaap:CommonStockMember 2010-06-30 0001434388 us-gaap:RetainedEarningsMember 2010-06-30 0001434388 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2010-06-30 0001434388 2010-06-30 0001434388 us-gaap:CommonStockMember 2010-07-01 2011-06-30 0001434388 us-gaap:AdditionalPaidInCapitalMember 2010-07-01 2011-06-30 0001434388 2010-07-01 2011-06-30 0001434388 us-gaap:RetainedEarningsMember 2010-07-01 2011-06-30 0001434388 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2010-07-01 2011-06-30 0001434388 us-gaap:CommonStockMember 2011-06-30 0001434388 us-gaap:AdditionalPaidInCapitalMember 2011-06-30 0001434388 us-gaap:RetainedEarningsMember 2011-06-30 0001434388 us-gaap:RetainedEarningsMember 2011-07-01 2011-12-31 0001434388 us-gaap:CommonStockMember 2011-12-31 0001434388 us-gaap:AdditionalPaidInCapitalMember 2011-12-31 0001434388 us-gaap:RetainedEarningsMember 2011-12-31 0001434388 2010-12-31 shares iso4217:USD iso4217:USD shares 11150 16549 11150 16549 5329 5000 30180 0 35509 5000 0 0 2390 2390 69980 69980 -96729 -60821 -24359 11549 11150 16549 0.001 0.001 10000000 10000000 0 0 0 0 0.001 0.001 90000000 90000000 2390013 2390013 2390013 2390013 0 0 0 0 12430 25378 35908 263416 12430 25378 35908 263416 -12430 -25378 -35908 -263416 0 869965 0 1371385 -12430 844587 -35908 1107969 0 -60841 0 -140935 -12430 783746 -35908 967034 -0.01 0.00 -0.02 0.00 0.02 0.03 -0.01 0.02 -0.02 0.03 2390013 40447500 2390013 40439130 40427500 40427 -7095053 18911 -7035715 20000 20 69980 70000 -38057487 -38057 8694563 314754 8971260 -1660331 -1660331 -333665 -333665 2390013 2390 69980 -60821 -35908 2390013 2390 69980 -96729 0 70000 329 191921 -35579 -1495 30180 0 30180 0 -5399 -1495 19096 17601 0 -2580612 0 -10082 0 2680844 0 90150 0 5244 0 161380 0 256774 0 0 0 0 <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;"> <b>NOTE 1 &#8211; INTERIM FINANCIAL STATEMENTS</b> </font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">The accompanying unaudited interim financial statements as of December 31, 2011, for the three and six months ended December 31, 2011 and 2010, and for the period from July 1, 2011 (re-entrance into development stage) through December 31, 2011 have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with instructions to Form 10-Q. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of December 31, 2011, the results of operations and cash flows for the three and six months ended December 31, 2011 and 2010, and for the period from July 1, 2011 (re-entrance into development stage) through December 31, 2011. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and six month periods ended December 31, 2011 and for the period from July 1, 2011 (Re-entrance into development stage) through December 31, 2011 are not necessarily indicative of the results to be expected for any subsequent quarter of the entire year ending June 30, 2012. The balance sheet at June 30, 2011 has been derived from the audited financial statements at that date.</font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission&#8217;s rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended June 30, 2011 as included in our report on Form 10-K.</font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;"> <b>NOTE 2 &#8211; OPERATIONS</b> </font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;"> <b> <u>ORGANIZATION</u> </b> </font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">Until June 30, 2011, Baby Fox International, Inc. (the &#8220;Company&#8221;), through its wholly-owned subsidiary Shanghai Baby Fox Fashion Co., Ltd. (&#8220;Shanghai Baby Fox&#8221;) was a specialty retailer, developer and designer of fashionable, value-priced women&#8217;s apparel and accessories. The Company primarily sold merchandise through its corporate-owned stores located within upscale shopping malls across China. The mall operator collected the proceeds of sales from customers and remitted the proceeds, net of rent and other charges, to the Company. In addition, the Company sold merchandise to licensed non-corporate owned stores which only carry the Baby Fox brand merchandise.</font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">On June 30, 2011, the Company entered into and closed a reorganization agreement (the &#8220;Reorganization Agreement&#8221;), with Shanghai Baby Fox, Baby Fox Limited, Hitoshi Yoshida and BBFX Holding Corp. (&#8220;Newco&#8221;). Pursuant to the terms of the Reorganization Agreement, the Company transferred all of its ownership interest in Shanghai Baby Fox, its operating subsidiary, to Newco in exchange for all of the capital stock of Newco (the &#8220;Subsidiary Transfer&#8221;), and then transferred all of its ownership interest in Newco to Baby Fox Limited, its majority shareholder which is wholly owned by Hitoshi Yoshida (the &#8220;Disposition&#8221;). Accordingly, Baby Fox Limited and Hitoshi Yoshida canceled an aggregate of 38,057,487 shares of the Company&#8217;s common stock held by them, which shares constituted approximately 94% of the Company&#8217;s outstanding shares of common stock immediately before the cancellation. (the &#8220;Share Cancellation&#8221; and, together with the Subsidiary Transfer and the Disposition, the &#8220;Reorganization&#8221;).</font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">On June 30, 2011, the Company entered into a novation agreement (the &#8220;Novation Agreement&#8221;) with Jieming Huang and Newco, pursuant to which Newco became the obligor and assumed all of the obligations and rights of the Company (the &#8220;Novation&#8221;) under that certain Loan Agreement dated February 18, 2008 (the &#8220;Original Loan Agreement&#8221;), pursuant to which Jieming Huang provided a loan with a principal amount of $810,160 and with a five percent annual interest rate to the Company. As a result of the Novation, the Company is no longer a party to the Original Loan Agreement and is no longer obligated to repay the related loan balance. At the time of entering into the Novation Agreement, Jieming Huang was the Chief Executive Officer and a director of the Company.</font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">As a result of the Reorganization, the Company changed from an operating company to a company in development stage on June 30, 2011. The current primary activity of the Company involves seeking a company or companies that it can acquire or with which it can merge.</font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;"> <b> <u>GOING CONCERN</u> </b> </font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">As reflected in the accompanying financial statements, the Company has a working capital deficiency, has no stabilized source of revenues and needs additional cash resources to maintain its operations. These factors raise substantial doubt about our ability to continue as a going concern. The Company&#8217;s ability to continue as a going concern is dependent on its ability to raise additional capital or obtain necessary debt financing. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management is currently working on a new business plan and looking for additional funding sources to support its ongoing business.</font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"><font style="font-family: times new roman,times,serif;"><b>NOTE 3 &#8211; DISCONTINUED OPERATIONS</b> </font> </font></p> <p align="justify"> <font style="font-size: 10pt;"><font style="font-family: times new roman,times,serif;">As discussed in Note 2, the Company completed its Reorganization on June 30, 2011. The Reorganization resulted in an addition of $8,694,563 to retained earnings, which was primarily comprised of net liabilities assumed by Newco and the recognition of the accumulated foreign currency translation gain of $314,754.</font> </font></p> <p align="justify"> <font style="font-size: 10pt;"><font style="font-family: times new roman,times,serif;">Shanghai Baby Fox has been reflected as discontinued operations for all periods presented in the Company&#8217;s financial statements. Accordingly, the revenue, costs, and expenses of Shanghai Baby Fox have been reported separately in the statements of operations and cash flows for the three and six months ended December 31, 2011. The results of discontinued operations do not reflect any allocation of corporate general and administrative expense. Interest expenses were $31,497 and $62,748 for the three and six months ended December 31, 2010, respectively, and were all allocated to discontinued operations as all debt outstanding on the Reorganization date was assumed by the Newco as a result of the Reorganization.</font> </font></p> <p align="justify"> <font style="font-size: 10pt;"><font style="font-family: times new roman,times,serif;">The amounts reported in income from discontinued operations for the three and six months ended December 31, 2010 were as follows:</font> </font></p> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse;" width="100%"> <tr valign="top"> <td align="left"> &#160;</td> <td align="left" width="1%"> &#160;</td> <td align="center" nowrap="nowrap" width="12%"> <font style="font-size: 10pt;"><font style="font-family: times new roman,times,serif;">Three Months Ended</font> </font></td> <td align="center" nowrap="nowrap" width="2%"> &#160;</td> <td align="center" nowrap="nowrap" width="1%"> &#160;</td> <td align="center" nowrap="nowrap" width="12%"> <font style="font-size: 10pt;"><font style="font-family: times new roman,times,serif;">Six Months Ended</font> </font></td> <td align="left" width="2%"> &#160;</td> </tr> <tr valign="top"> <td align="left"> &#160;</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> &#160;</td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> <font style="font-size: 10pt;"><font style="font-family: times new roman,times,serif;">December 31, 2010</font> </font></td> <td align="center" nowrap="nowrap" width="2%"> &#160;</td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> &#160;</td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%"> <font style="font-size: 10pt;"><font style="font-family: times new 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valign="bottom" width="2%"> &#160;</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> <font style="font-size: 10pt;"><font style="font-family: times new roman,times,serif;">$</font> </font></td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="12%"> <font style="font-size: 10pt;"><font style="font-family: times new roman,times,serif;">1,371,385</font> </font></td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> &#160;</td> </tr> </table> <p align="justify"> <font style="font-size: 10pt;"><font style="font-family: times new roman,times,serif;"><b><u>Related Party Transactions</u> </b> </font> </font></p> <p align="justify"> <font style="font-size: 10pt;"><font style="font-family: times new roman,times,serif;">Shanghai Baby Fox purchased 100% of its merchandise for the six months ended December 31, 2010 from Changzhou CTS Fashion Co., Ltd. (&#8220;CTS&#8221;) which was owned by the former majority shareholder and Chief Executive Officer (&#8220;CEO&#8221;) of the Company. Total purchases from CTS amounted to $6,992,875 for the six months ended December 31, 2010.</font> </font></p> <p align="justify"> <font style="font-size: 10pt;"><font style="font-family: times new roman,times,serif;">Shanghai Baby Fox also rented warehouse and office space from CTS and one of its former board directors, Ms. Fengling Wang. Total rent to CTS and Fengling Wang, respectively, were $17,147 and $4,473 for the six months ended December 31, 2010. Rent to related parties is included in the income from discontinued operations.</font> </font></p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;"> <b>NOTE 4 &#8211; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b> </font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;"> <u>Principles of Consolidation</u> </font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">The unaudited interim financial statements include the accounts of the Company and its wholly-owned subsidiary, Shanghai Baby Fox. All significant inter-company balances and transactions have been eliminated. The financial statements for the six months ended December 31, 2010 were restated to reflect the discontinuation of Shanghai Baby Fox.</font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;"> <u>Use of Estimates</u> </font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.</font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;"> <u>Cash and Cash Equivalents</u> </font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">The Company includes in cash and cash equivalents all short-term, highly liquid investments that mature within three months of their acquisition date. Cash equivalents consist principally of investments in interest-bearing demand deposit accounts and liquidity funds with financial institutions and are stated at cost, which approximates fair value.</font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;"> <u>Income (Loss) per Share</u> </font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">Basic earnings per share (&#8220;EPS&#8221;) is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of shares of common stock outstanding during the period including stock options or warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options or warrants), and convertible debt or convertible preferred stock, using the if-converted method. EPS excludes all potential dilutive shares of common stock if their effect is anti-dilutive.</font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">For the three and six months ended December 31, 2011 and 2010, there were no potentially dilutive financial instruments outstanding. Basic and diluted income (loss) per share is computed as net income (loss) divided by the weighted-average number of common shares outstanding for the period.</font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;"> <u>Recent accounting pronouncements</u> </font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">The Company does not expect that any recently issued accounting pronouncement will have a significant impact on the results of operations, financial position, or cash flows of the Company.</font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;"> <b>NOTE 5 &#8211; ADVANCES PAYABLE</b> </font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">As of December 31, 2011, the Company was indebted to a third party for cash advances of $30,180. The amount is unsecured, non-interest bearing and due on demand.</font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;"> <b>NOTE 6 &#8211; EQUITY TRANSACTIONS</b> </font> </font> </p> <p align="justify"> <font style="font-size: 10pt;"> <font style="font-family: times new roman,times,serif;">On September 16, 2010, the Company issued 20,000 shares to The Crone Law Group for legal services valued at $70,000. The shares consisted of 10,000 shares for the firm&#8217;s work on the registration statement on Form S-1 and 10,000 shares for the reduced hourly rate offered for the firm&#8217;s on-going work. 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BEGINNING OF THE PERIOD CASH - END OF THE PERIOD DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS (NetCashProvidedByUsedInDiscontinuedOperationsAbstract) Net cash used in operating activities Net cash used in investing activities Net cash provided by financing activities DECREASE IN CASH FROM DISCONTINUED OPERATIONS DECREASE IN CASH FROM DISCONTINUED OPERATIONS EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS CASH - BEGINNING OF THE PERIOD FROM DISCONTINUED OPERATIONS CASH - BEGINNING OF THE PERIOD FROM DISCONTINUED OPERATIONS CASH - END OF THE PERIOD FROM DISCONTINUED OPERATIONS CASH - END OF THE PERIOD FROM DISCONTINUED OPERATIONS SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION Income tax paid Interest expense paid Statement, Equity Components [Axis] Statement, Equity Components [Domain] Statement of Stockholders Equity Beginning Balance Beginning Balance (Shares) Beginning Balance (Shares) Common stock issued for legal services Common stock issued for legal services (CommonStockIssuedForLegalServices) Common stock issued for legal services Common stock issued for legal services (Shares) Common stock issued for legal services (Shares) Shares Issued (Shares) Effect of reorganization Effect of reorganization Effect of reorganization (Shares) Net loss Foreign currency translation adjustment Ending Balance Ending Balance (Shares) Notes to the Financial Statements INTERIM FINANCIAL STATEMENTS [Text Block] OPERATIONS [Text Block] DISCONTINUED OPERATIONS [Text Block] SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block] ADVANCES PAYABLE [Text Block] Equity Transactions [Text Block] Stock Purchase Agreement [Text Block] Stock Purchase Agreement [Text Block] EX-101.PRE 9 bbyf-20111231_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 10 report.css IDEA: XBRL DOCUMENT /* Updated 2009-11-04 */ /* v2.2.0.24 */ /* DefRef Styles */ ..report table.authRefData{ background-color: #def; border: 2px solid #2F4497; font-size: 1em; position: absolute; } ..report table.authRefData a { display: block; font-weight: bold; } ..report table.authRefData p { margin-top: 0px; } ..report table.authRefData .hide { background-color: #2F4497; padding: 1px 3px 0px 0px; text-align: right; } ..report table.authRefData .hide a:hover { background-color: #2F4497; } ..report table.authRefData .body { height: 150px; overflow: auto; width: 400px; } ..report table.authRefData table{ font-size: 1em; } /* Report Styles */ ..pl a, .pl a:visited { color: black; text-decoration: none; } /* table */ ..report { background-color: white; border: 2px solid #acf; clear: both; color: black; font: normal 8pt Helvetica, Arial, san-serif; margin-bottom: 2em; } ..report hr { border: 1px solid #acf; } /* Top labels */ ..report th { background-color: #acf; color: black; font-weight: bold; text-align: center; } ..report th.void { background-color: transparent; color: #000000; font: bold 10pt Helvetica, Arial, san-serif; text-align: left; } ..report .pl { text-align: left; vertical-align: top; white-space: normal; width: 200px; word-wrap: break-word; } ..report td.pl a.a { cursor: pointer; display: block; width: 200px; } ..report td.pl div.a { width: 200px; } ..report td.pl a:hover { background-color: #ffc; } /* Header rows... */ ..report tr.rh { background-color: #acf; color: black; font-weight: bold; } /* Calendars... */ ..report .rc { background-color: #f0f0f0; } /* Even rows... */ ..report .re, .report .reu { background-color: #def; } ..report .reu td { border-bottom: 1px solid black; } /* Odd rows... */ ..report .ro, .report .rou { background-color: white; } ..report .rou td { border-bottom: 1px solid black; } ..report .rou table td, .report .reu table td { border-bottom: 0px solid black; } /* styles for footnote marker */ ..report .fn { white-space: nowrap; } /* styles for numeric types */ ..report .num, .report .nump { text-align: right; white-space: nowrap; } ..report .nump { padding-left: 2em; } ..report .nump { padding: 0px 0.4em 0px 2em; } /* styles for text types */ ..report .text { text-align: left; white-space: normal; } ..report .text .big { margin-bottom: 1em; width: 17em; } ..report .text .more { display: none; } ..report .text .note { font-style: italic; font-weight: bold; } ..report .text .small { width: 10em; } ..report sup { font-style: italic; } ..report .outerFootnotes { font-size: 1em; } XML 11 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6
DISCONTINUED OPERATIONS
3 Months Ended
Dec. 31, 2011
DISCONTINUED OPERATIONS [Text Block]

NOTE 3 – DISCONTINUED OPERATIONS

As discussed in Note 2, the Company completed its Reorganization on June 30, 2011. The Reorganization resulted in an addition of $8,694,563 to retained earnings, which was primarily comprised of net liabilities assumed by Newco and the recognition of the accumulated foreign currency translation gain of $314,754.

Shanghai Baby Fox has been reflected as discontinued operations for all periods presented in the Company’s financial statements. Accordingly, the revenue, costs, and expenses of Shanghai Baby Fox have been reported separately in the statements of operations and cash flows for the three and six months ended December 31, 2011. The results of discontinued operations do not reflect any allocation of corporate general and administrative expense. Interest expenses were $31,497 and $62,748 for the three and six months ended December 31, 2010, respectively, and were all allocated to discontinued operations as all debt outstanding on the Reorganization date was assumed by the Newco as a result of the Reorganization.

The amounts reported in income from discontinued operations for the three and six months ended December 31, 2010 were as follows:

    Three Months Ended     Six Months Ended  
    December 31, 2010     December 31, 2010  
             
Sales $  6,765,134   $  12,020,072  
Cost of goods sold   (3,003,546 )   (4,970,030 )
Gross profit   3,761,588     7,050,042  
Operating expenses   (2,862,257 )   (5,624,771 )
Operating income   899,331     1,425,271  
Other expenses-net   (29,366 )   (53,886 )
Income from discontinued operations (net of income taxes of $0) $  869,965   $ 1,371,385  

Related Party Transactions

Shanghai Baby Fox purchased 100% of its merchandise for the six months ended December 31, 2010 from Changzhou CTS Fashion Co., Ltd. (“CTS”) which was owned by the former majority shareholder and Chief Executive Officer (“CEO”) of the Company. Total purchases from CTS amounted to $6,992,875 for the six months ended December 31, 2010.

Shanghai Baby Fox also rented warehouse and office space from CTS and one of its former board directors, Ms. Fengling Wang. Total rent to CTS and Fengling Wang, respectively, were $17,147 and $4,473 for the six months ended December 31, 2010. Rent to related parties is included in the income from discontinued operations.

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OPERATIONS
3 Months Ended
Dec. 31, 2011
OPERATIONS [Text Block]

NOTE 2 – OPERATIONS

ORGANIZATION

Until June 30, 2011, Baby Fox International, Inc. (the “Company”), through its wholly-owned subsidiary Shanghai Baby Fox Fashion Co., Ltd. (“Shanghai Baby Fox”) was a specialty retailer, developer and designer of fashionable, value-priced women’s apparel and accessories. The Company primarily sold merchandise through its corporate-owned stores located within upscale shopping malls across China. The mall operator collected the proceeds of sales from customers and remitted the proceeds, net of rent and other charges, to the Company. In addition, the Company sold merchandise to licensed non-corporate owned stores which only carry the Baby Fox brand merchandise.

On June 30, 2011, the Company entered into and closed a reorganization agreement (the “Reorganization Agreement”), with Shanghai Baby Fox, Baby Fox Limited, Hitoshi Yoshida and BBFX Holding Corp. (“Newco”). Pursuant to the terms of the Reorganization Agreement, the Company transferred all of its ownership interest in Shanghai Baby Fox, its operating subsidiary, to Newco in exchange for all of the capital stock of Newco (the “Subsidiary Transfer”), and then transferred all of its ownership interest in Newco to Baby Fox Limited, its majority shareholder which is wholly owned by Hitoshi Yoshida (the “Disposition”). Accordingly, Baby Fox Limited and Hitoshi Yoshida canceled an aggregate of 38,057,487 shares of the Company’s common stock held by them, which shares constituted approximately 94% of the Company’s outstanding shares of common stock immediately before the cancellation. (the “Share Cancellation” and, together with the Subsidiary Transfer and the Disposition, the “Reorganization”).

On June 30, 2011, the Company entered into a novation agreement (the “Novation Agreement”) with Jieming Huang and Newco, pursuant to which Newco became the obligor and assumed all of the obligations and rights of the Company (the “Novation”) under that certain Loan Agreement dated February 18, 2008 (the “Original Loan Agreement”), pursuant to which Jieming Huang provided a loan with a principal amount of $810,160 and with a five percent annual interest rate to the Company. As a result of the Novation, the Company is no longer a party to the Original Loan Agreement and is no longer obligated to repay the related loan balance. At the time of entering into the Novation Agreement, Jieming Huang was the Chief Executive Officer and a director of the Company.

As a result of the Reorganization, the Company changed from an operating company to a company in development stage on June 30, 2011. The current primary activity of the Company involves seeking a company or companies that it can acquire or with which it can merge.

GOING CONCERN

As reflected in the accompanying financial statements, the Company has a working capital deficiency, has no stabilized source of revenues and needs additional cash resources to maintain its operations. These factors raise substantial doubt about our ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on its ability to raise additional capital or obtain necessary debt financing. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management is currently working on a new business plan and looking for additional funding sources to support its ongoing business.

XML 15 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
BALANCE SHEETS (Unaudited) (USD $)
Dec. 31, 2011
Jun. 30, 2011
CURRENT ASSETS:    
Cash $ 11,150 $ 16,549
TOTAL CURRENT ASSETS AND TOTAL ASSETS 11,150 16,549
CURRENT LIABILITIES:    
Accrued liabilities 5,329 5,000
Advances payable 30,180 0
TOTAL CURRENT LIABILITIES AND TOTAL LIABILITIES 35,509 5,000
STOCKHOLDERS' EQUITY (DEFICIT)    
Preferred Stock, $0.001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding 0 0
Common Stock, $0.001 par value, 90,000,000 shares authorized, 2,390,013 shares issued and outstanding 2,390 2,390
Additional paid-in capital 69,980 69,980
Accumulated deficit (96,729) (60,821)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (24,359) 11,549
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 11,150 $ 16,549
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Statement of Stockholders Equity (USD $)
COMMON STOCK [Member]
ADDITIONAL PAID-IN CAPITAL [Member]
ACCUMULATED DEFICIT [Member]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Member]
Total
Beginning Balance at Jun. 30, 2010 $ 40,427   $ (7,095,053) $ 18,911 $ (7,035,715)
Beginning Balance (Shares) at Jun. 30, 2010 40,427,500        
Common stock issued for legal services 20 69,980     70,000
Common stock issued for legal services (Shares) 20,000        
Effect of reorganization (38,057)   8,694,563 314,754 8,971,260
Effect of reorganization (Shares) (38,057,487)        
Net loss     (1,660,331)   (1,660,331)
Foreign currency translation adjustment       (333,665) (333,665)
Ending Balance at Jun. 30, 2011 2,390 69,980 (60,821)   11,549
Ending Balance (Shares) at Jun. 30, 2011 2,390,013        
Net loss     (35,908)   (35,908)
Ending Balance at Dec. 31, 2011 $ 2,390 $ 69,980 $ (96,729)   $ (24,359)
Ending Balance (Shares) at Dec. 31, 2011 2,390,013        
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XML 18 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
INTERIM FINANCIAL STATEMENTS
3 Months Ended
Dec. 31, 2011
INTERIM FINANCIAL STATEMENTS [Text Block]

NOTE 1 – INTERIM FINANCIAL STATEMENTS

The accompanying unaudited interim financial statements as of December 31, 2011, for the three and six months ended December 31, 2011 and 2010, and for the period from July 1, 2011 (re-entrance into development stage) through December 31, 2011 have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with instructions to Form 10-Q. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of December 31, 2011, the results of operations and cash flows for the three and six months ended December 31, 2011 and 2010, and for the period from July 1, 2011 (re-entrance into development stage) through December 31, 2011. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and six month periods ended December 31, 2011 and for the period from July 1, 2011 (Re-entrance into development stage) through December 31, 2011 are not necessarily indicative of the results to be expected for any subsequent quarter of the entire year ending June 30, 2012. The balance sheet at June 30, 2011 has been derived from the audited financial statements at that date.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended June 30, 2011 as included in our report on Form 10-K.

XML 19 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)
Dec. 31, 2011
Jun. 30, 2011
Preferred Stock, Par Value Per Share $ 0.001 $ 0.001
Preferred Stock, Shares Authorized 10,000,000 10,000,000
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Common Stock, Par Value Per Share $ 0.001 $ 0.001
Common Stock, Shares Authorized 90,000,000 90,000,000
Common Stock, Shares, Issued 2,390,013 2,390,013
Common Stock, Shares, Outstanding 2,390,013 2,390,013
XML 20 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information
3 Months Ended
Dec. 31, 2011
Feb. 13, 2012
Document and Entity Information    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Dec. 31, 2011  
Trading Symbol bbyf  
Entity Registrant Name Baby Fox International, Inc.  
Entity Central Index Key 0001434388  
Current Fiscal Year End Date --06-30  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   2,390,013
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well Known Seasoned Issuer No  
Document Fiscal Year Focus 2012  
Document Fiscal Period Focus Q2  
XML 21 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $)
3 Months Ended 6 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2011
Dec. 31, 2010
REVENUE $ 0 $ 0 $ 0 $ 0
OPERATING EXPENSES:        
General and administrative expenses 12,430 25,378 35,908 263,416
TOTAL OPERATING EXPENSES 12,430 25,378 35,908 263,416
NET INCOME (LOSS) FROM CONTINUING OPERATIONS (12,430) (25,378) (35,908) (263,416)
DISCONTINUED OPERATIONS (NET OF TAXES)        
Income from discontinued operations 0 869,965 0 1,371,385
NET INCOME (LOSS) (12,430) 844,587 (35,908) 1,107,969
OTHER COMPREHENSIVE LOSS:        
Foreign currency translation loss related to discontinued operations 0 (60,841) 0 (140,935)
COMPREHENSIVE INCOME (LOSS) $ (12,430) $ 783,746 $ (35,908) $ 967,034
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE        
Continuing operations $ (0.01) $ 0.00 $ (0.02) $ 0.00
Discontinued operations    $ 0.02    $ 0.03
Total $ (0.01) $ 0.02 $ (0.02) $ 0.03
SHARES OUTSTANDING 2,390,013 40,447,500 2,390,013 40,439,130
XML 22 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Equity Transactions
3 Months Ended
Dec. 31, 2011
Equity Transactions [Text Block]

NOTE 6 – EQUITY TRANSACTIONS

On September 16, 2010, the Company issued 20,000 shares to The Crone Law Group for legal services valued at $70,000. The shares consisted of 10,000 shares for the firm’s work on the registration statement on Form S-1 and 10,000 shares for the reduced hourly rate offered for the firm’s on-going work. These shares were recorded by the Company on the grant date at their fair values.

In connection with the Reorganization (see Note 2), an aggregate of 38,057,487 shares of the Company’s Common Stock held by Baby Fox Limited and Hitoshi Yoshida were cancelled on June 30, 2011.

XML 23 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
ADVANCES PAYABLE
3 Months Ended
Dec. 31, 2011
ADVANCES PAYABLE [Text Block]

NOTE 5 – ADVANCES PAYABLE

As of December 31, 2011, the Company was indebted to a third party for cash advances of $30,180. The amount is unsecured, non-interest bearing and due on demand.

XML 24 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stock Purchase Agreement
3 Months Ended
Dec. 31, 2011
Stock Purchase Agreement [Text Block]

NOTE 7 – STOCK PURCHASE AGREEMENT

On November 30, 2011, the Company entered into a stock purchase agreement, or the “Stock Purchase Agreement”, by and among Mu Zhang, Catalpa Holdings, Inc., First Prestige, Inc., JD Infinity Holdings, Inc. and Favor Jumbo Enterprises Limited (the “Sellers”), Toby Investment Group (the “Original Purchaser”) and the Company. Pursuant to the terms of the Stock Purchase Agreement, the Sellers agreed to sell to the Original Purchaser an aggregate 1,899,051 shares (the “Shares”), or approximately 79.5%, of the Company’s outstanding common stock, for a purchase price of $275,000. Mu Zhang, one of the Sellers, is the sole officer and director and the majority shareholder of the Company. The closing of the sale of the Shares was subject to certain conditions, including the Company entering into certain ancillary agreements in connection with the closing.

On January 5, 2012, the Company, the Sellers, the Original Purchaser and IFMT, LLC (the “New Purchaser”) entered into a Novation and Amendment to Stock Purchase Agreement dated as of January 5, 2012, pursuant to which the parties agreed to a novation under the Stock Purchase Agreement of the New Purchaser for the Original Purchaser, as well as certain other minor amendments.

On January 20, 2012, the Sellers terminated the Stock Purchase Agreement with the New Purchaser due to the New Purchaser’s failure to satisfy the conditions to closing, including funding the purchase price.

XML 25 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
6 Months Ended
Dec. 31, 2011
Dec. 31, 2010
OPERATING ACTIVITIES:    
Net income (loss) $ (35,908) $ 1,107,969
Income from discontinued operations 0 1,371,385
Net loss from continuing operations (35,908) (263,416)
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities from continuing operations:    
Common stock issued for legal services 0 70,000
Change in operating assets and liabilities:    
Accrued liabilities 329 191,921
NET CASH USED IN OPERATING ACTIVITIES (35,579) (1,495)
FINANCING ACTIVITIES:    
Proceeds from third party advances 30,180 0
NET CASH PROVIDED BY FINANCING ACTIVITIES 30,180 0
DECREASE IN CASH (5,399) (1,495)
CASH - BEGINNING OF THE PERIOD 16,549 19,096
CASH - END OF THE PERIOD 11,150 17,601
DISCONTINUED OPERATIONS    
Net cash used in operating activities 0 (2,580,612)
Net cash used in investing activities 0 (10,082)
Net cash provided by financing activities 0 2,680,844
DECREASE IN CASH FROM DISCONTINUED OPERATIONS 0 90,150
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS 0 5,244
CASH - BEGINNING OF THE PERIOD FROM DISCONTINUED OPERATIONS 0 161,380
CASH - END OF THE PERIOD FROM DISCONTINUED OPERATIONS 0 256,774
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION    
Income tax paid 0 0
Interest expense paid $ 0 $ 0
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Dec. 31, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block]

NOTE 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The unaudited interim financial statements include the accounts of the Company and its wholly-owned subsidiary, Shanghai Baby Fox. All significant inter-company balances and transactions have been eliminated. The financial statements for the six months ended December 31, 2010 were restated to reflect the discontinuation of Shanghai Baby Fox.

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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company includes in cash and cash equivalents all short-term, highly liquid investments that mature within three months of their acquisition date. Cash equivalents consist principally of investments in interest-bearing demand deposit accounts and liquidity funds with financial institutions and are stated at cost, which approximates fair value.

Income (Loss) per Share

Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of shares of common stock outstanding during the period including stock options or warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options or warrants), and convertible debt or convertible preferred stock, using the if-converted method. EPS excludes all potential dilutive shares of common stock if their effect is anti-dilutive.

For the three and six months ended December 31, 2011 and 2010, there were no potentially dilutive financial instruments outstanding. Basic and diluted income (loss) per share is computed as net income (loss) divided by the weighted-average number of common shares outstanding for the period.

Recent accounting pronouncements

The Company does not expect that any recently issued accounting pronouncement will have a significant impact on the results of operations, financial position, or cash flows of the Company.

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