CORRESP 6 filename6.htm Unassociated Document
WILLIAMS LAW GROUP, P.A.
2503 W. Gardner Ct.
Tampa FL 33611
Phone:  813-831-9348
Fax:  813-832-5284
e-mail:  wmslaw@tampabay.rr.com

February 11, 2010

Ms. Stephani Bouvet
United States Securities and Exchange Commission
Division of Corporation Finance
100 F. St., N.E.
Washington, D.C. 20549-7010

Re:  Hyperera, Inc.
Registration Statement on Form S-1
Amendment No. 1.
File No. 333-163035

Dear Ms. Bouvet:

We have filed on EDGAR the above Amendment No. 1 and the related response table which is attached to this letter.
 
Thank you for your consideration.

 
Sincerely,
   
 
/s/ MICHAEL T. WILLIAMS, ESQ.
   
 
Michael T. Williams, Esq.

 
 
 

Comment
Number
  
Page[s]
  
Explanation
  
1    .
      
Language removed.  Confirmed that all shares have been issued.
  
2    .
      
Language concerning warrants removed.  There are no warrants.
  
3    .
      
Risk Factor concerning this potential conflict added.
  
4    .
      
Risk revised to clarify no revenues as of September 30, 2010.
  
5    .
      
Risk Factors separated and revised.
  
6    .
      
Disclosure added to clarify only material relationship is with our attorney.
  
7    .
      
Disclosure added to clarify that we conduct our business through our subsidiary in China and the we only intend to sell products of Beijing Chaoran.
  
8    .
      
Extensive disclosure of regulatory environment in China added.
  
9    .
      
Removed
  
10  .
      
Updated as requested
  
11  .
      
Updated as requested
  
12  .
      
As there have been recent sales at $.20 per share we believe this comment is addressed.
  
13  .
      
We have revised disclosure concerning this transaction as requested.
  
14  .
      
Besides the distribution agreement.  The purchase contracts Between Hyperera, Inc. and Beijing Chaoran are attached in exhibit.
  
15  .
      
We have filed the distribution agreement revised to correct these scrivener errors.
  
16  .
      
We have eliminated this undertaking.
  
17  .
      
Auditor report revised as requested.
  
18-24
      
See Accounting Comment Response below
  
 
          
 
          
 
          
 
          
 
          
 
          
  
          
25  .
      
Updated
  
 
          
 
          
 
          
 
          
 
          

 
 
 

Financial Statements

Independent Auditor’s Report on the Financial Statements

17. The auditor’s report was revised to add city and state where issued.
 
Note B- Significant Accounting Policies

Revenue Recognition, page F-10

18.
The revenue recognition will follow the guidance in SAB 104 and the arrangements contain a software element within the scope of SOP 97-2.  See revised Revenue Recognition.

19.
EITF 99-19: the analysis was disclosed and revised as follows:

In accordance with paragraph 7-19 of EITF 99-19, "Reporting Revenues Gross as a Principal versus Net as an Agent", the Company will recognize revenues on a gross basis.EITF 99-19 discusses whether revenues and cost of goods sold to arrive at gross profit and their corresponding assets and liabilities should be recorded at gross or net.
 
The following indicators of gross revenue recognition are existed in the Company:
 
 
·
Acts as principal in the transaction.
 
·
Has risk and rewards of ownership, such as general inventory risk, risk of loss for collection, delivery and returns, and
 
·
Takes title to the products,
 
·
Flexibility in pricing
 
·
Assumes credit risk;
 
·
The company can change the products or perform part of the service, and the Company is involved in the determination of products or service specifications, and the Company customizes the supplier’s software based on customer’s needs.

All the indicators of net revenue reporting (EITF 99-19, paragraph 15-19) are not existed in the Company.  The Company signed a distribution agreement on March 15, 2009 for 3 years with Beijing Chaoran Chuangshi Technology Co., Ltd (Beijing Chaoran) for the CIS software developed by Beijing Chaoran.  According to the Agreement, the Company may exclusively sell the Chaoran developed CIS systems, but if Chaoran discontinue the supply of CIS, the Company can select other suppliers or other CIS developers to provide the similar products to the customers.  Accordingly, an signed agreement will not affect the recognition of gross revenue reporting.

 
 
 

Note C – Related Party Transactions

Loans to Officers, page F-13

20.
The advanced $115,000 was to Mr. Zhiyong Li, Chairman and CEO of Hyperera, Inc.  The loan was paid without interest charge in full on February 27, 2010.

Note D – Shareholders’ Equity

21.
Please see below:

Under the Company’s Articles of Incorporation dated February 19, 2008, the Company is authorized to issue 200,000,000 shares of capital stock with a par value of $0.001.

On Feburary19, 2008, the Company was incorporated in the State of Nevada.

On February 19, 2008, , the Company issued 20,000,000 shares to three founders of the Company, Zhiyong Li, Wei Wu, and Huitao Zhou  at $0.001 per share or $ 20,000 for initial capital (stock subscription receivable).  Detail as follow:

Name
  
Share QTY
  
Purchase
Date
  
Amount ($0.001) Per
Share
  
Zhi Yong Li
     10,000,000  
2/19/2008
   $ 10,000  
Wei Wu
     5,000,000  
2/19/2008
   $ 5,000  
Hui Tao Zhou
     5,000,000  
2/19/2008
   $ 5,000  
Total
     20,000,000       $ 20,000  

On March 31, 2008, the Company issued total 5,200,000 shares to 52 shareholders at $0.03 per share or $156,000 for common stock (stock subscription receivable).
Detail list as follow:

 
 
 

Name
  
Share QTY
  
Purchase
Date
  
Amount ($0.03) Per
Share
  
Lian Cheng Li
     100,000  
3/19/2008
   $ 3,000  
Lian Rong Zhou
     100,000  
3/19/2008
   $ 3,000  
Xiao Zhang
     100,000  
3/19/2008
   $ 3,000  
Ya Jun Li
     100,000  
3/19/2008
   $ 3,000  
Jia Bin Fu
     100,000  
3/19/2008
   $ 3,000  
De Lu Zhang
     100,000  
3/19/2008
   $ 3,000  
Gui Yun Tian
     100,000  
3/19/2008
   $ 3,000  
Tong Xu
     100,000  
3/19/2008
   $ 3,000  
Pei Ji Wu
     100,000  
3/19/2008
   $ 3,000  
Lan Fen Wang
     100,000  
3/19/2008
   $ 3,000  
Lin Hua Shang
     100,000  
3/19/2008
   $ 3,000  
Jian Wu
     100,000  
3/19/2008
   $ 3,000  
Quan Wu
     100,000  
3/19/2008
   $ 3,000  
Qing Tian
     100,000  
3/19/2008
   $ 3,000  
Shu Zhi Zhang
     100,000  
3/19/2008
   $ 3,000  
Yu Fang Zhou
     100,000  
3/19/2008
   $ 3,000  
Yue Hui Zhou
     100,000  
3/19/2008
   $ 3,000  
Yue Ming Zhou
     100,000  
3/19/2008
   $ 3,000  
Xiang You Kong
     100,000  
3/19/2008
   $ 3,000  
Zhi Nan Zhou
     100,000  
3/19/2008
   $ 3,000  
Jian Zhong Zhang
     100,000  
3/19/2008
   $ 3,000  
Jian Guo Zhang
     100,000  
3/19/2008
   $ 3,000  
Jian Wu Zhang
     100,000  
3/19/2008
   $ 3,000  
Ling Fen Shang
     100,000  
3/19/2008
   $ 3,000  
Wen Zhang
     100,000  
3/19/2008
   $ 3,000  
Yan Yun Xi
     100,000  
3/20/2008
   $ 3,000  
Ling Luan
     100,000  
3/20/2008
   $ 3,000  

 
 
 

Qing Liang Chen
     100,000  
3/20/2008
   $ 3,000  
Yan Mei Du
     100,000  
3/20/2008
   $ 3,000  
Nan Su
     100,000  
3/20/2008
   $ 3,000  
Qing Di
     100,000  
3/20/2008
   $ 3,000  
Hong Tao Bai
     100,000  
3/20/2008
   $ 3,000  
Meng Xia Zhuang
     100,000  
3/20/2008
   $ 3,000  
Zhi Hui Zhang
     100,000  
3/20/2008
   $ 3,000  
Shu Ting Zhang
     100,000  
3/20/2008
   $ 3,000  
Wen Fang Dong
     100,000  
3/20/2008
   $ 3,000  
Yan Hu
     100,000  
3/20/2008
   $ 3,000  
Zhen Qin Wang
     100,000  
3/20/2008
   $ 3,000  
Wei Lin
     100,000  
3/22/2008
   $ 3,000  
Yi Xiong Wang
     100,000  
3/22/2008
   $ 3,000  
Yang Yu
     100,000  
3/22/2008
   $ 3,000  
Shu Jun Huang
     100,000  
3/22/2008
   $ 3,000  
Zheng Jie Hua
     100,000  
3/22/2008
   $ 3,000  
Ming Liu
     100,000  
3/22/2008
   $ 3,000  
Li Wen Shi
     100,000  
3/22/2008
   $ 3,000  
Zhong Huan Li
     100,000  
3/22/2008
   $ 3,000  
Ji Xiang Liu
     100,000  
3/22/2008
   $ 3,000  
Hou Qin Li
     100,000  
3/22/2008
   $ 3,000  
Hao Chen Liu
     100,000  
3/22/2008
   $ 3,000  
Da Liu
     100,000  
3/22/2008
   $ 3,000  
Yu Ming Zhou
     100,000  
3/22/2008
   $ 3,000  
Bao Shu Dai
     100,000  
3/22/2008
   $ 3,000  
Total
     5,200,000       $ 156,000  

 
 
 

On April 28, 2008, the Company issued additional 1,400,000 shares to 14 shareholders at $0.03 per share or $42,000 for common stock (stock subscription receivable). Detail as follow:

Name
  
Share QTY
  
Purchase
Date
  
Amount ($0.03) Per
Share
  
Jun Liu
     100,000  
4/28/2008
   $ 3,000  
Yu Yan Qin
     100,000  
4/28/2008
   $ 3,000  
Lian Sheng Zhou
     100,000  
4/28/2008
   $ 3,000  
Wen Hui Zhou
     100,000  
4/28/2008
   $ 3,000  
Yong Heng Hao
     100,000  
4/28/2008
   $ 3,000  
Mei Sheng
     100,000  
4/28/2008
   $ 3,000  
Wen Luan Hu
     100,000  
4/28/2008
   $ 3,000  
Guang Yue Shang
     100,000  
4/28/2008
   $ 3,000  
Ke Yan Liu
     100,000  
4/28/2008
   $ 3,000  
Li Fang Huang
     100,000  
4/28/2008
   $ 3,000  
Hui Li
     100,000  
4/28/2008
   $ 3,000  
Fu Jun Jia
     100,000  
4/28/2008
   $ 3,000  
Yong Yu Liu
     100,000  
4/28/2008
   $ 3,000  
Bao Yu Li
     100,000  
4/28/2008
   $ 3,000  
Total
     1,400,000       $ 42,000  

On July 20, 2008, additional 1,200,000 shares were issued to 7 shareholders at $ 0.03 per share, and the total proceeds of $36,000 were received. Detail as follow:

 
 
 


Name
  
Share
QTY
  
Purchase
Date
  
Amount ($0.03) Per
Share
  
Sen Chai
     100,000  
7/20/2008
   $ 3,000  
Qian Sun
     100,000  
7/20/2008
   $ 3,000  
Yun Sun
     100,000  
7/20/2008
   $ 3,000  
Wan Ting Li
     100,000  
7/20/2008
   $ 3,000  
Fu Xiang Tian
     200,000  
7/20/2008
   $ 6,000  
Zeng Zhao
     300,000  
7/20/2008
   $ 9,000  
Lie Rong Huang
     300,000  
7/20/2008
   $ 9,000  
Total
     1,200,000       $ 36,000  

On July 20, 2008, 139,000 shares were issued to Williams Law Group at $ 0.03 per share for the legal service value $4,170.

At December 15, 2009, additional 60,000 shares of common stocks were issued to 3 shareholders at $ 0.20 per share, and the total proceeds of $12,000 were received.  The 3 new shareholders are independent and no-affiliated to Hyperera, Inc.

The price of common stocks issued to all shareholders were simple market approach, all the company information was disclosed to share subscribers and the price was mutually agreed and negotiated, then accepted by both the Company and common share subscribers.

Interim Financial Statements

Statement of Cash Flows, page F-20

22.
See below:

On Feburary19, 2008, the Company was incorporated in the State of Nevada.

On February 19, 2008, , the Company issued 20,000,000 shares to three founders of the Company, Zhiyong Li, Wei Wu, and Huitao Zhou  at $0.001 per share or $ 20,000 for initial capital (stock subscription receivable as of June 30, 2009).

On March 31, 2008, the Company issued total 5,200,000 shares to 52 shareholders at $0.03 per share or $156,000 for common stock (stock subscription receivable as of June 30, 2009).

On April 28, 2008, the Company issued additional 1,400,000 shares to 14 shareholders at $0.03 per share or $42,000 for common stock (stock subscription receivable as of June 30, 2009

 
 
 

The total stock subscription receivable of $218,000 was received on July, 2009.  Therefore, as of December 31, 2008, there was no balance for stock subscription receivables and no amount would be shown on the Statement of Cash Flows as of December 31, 2008.

Note B-Significant Accounting Policies

Prepaid Expense to Supplier, page F-24

23.
Revised to disclose the prepaid of $207,998 to Beijing Chaoran, and the purchase contracts were attached.
24.
At November, 19, 2009, hardware sales revenue of $ 6,588 was recognized, and a cost of $ 5,968 was recorded too.

At December 28, 2009, hardware sales revenue of $ 59,430 was recognized, and a cost of $ 54,030 was incurred.

As of December, 31, 2009, a total revenue of $ 66,018 was earned; and the amount of $ 59,998 that prepaid to supplier on March, 2009 was become cost of good sold.  Therefore, the total prepaid amount was reduce to $148,000.00

Prepaid to Supplier:

3/9/2009
  
Prepaid to Chaoran
   $ 59,998  
3/18/2009
  
Prepaid to Chaoran
   $ 148,000  
9/30/2009
  
Total
   $ 207,998  
             
11/19/2009
  
COGS
   $ 5,968  
12/28/2009
  
COGS
   $ 54,030  
12/31/2009
  
Total COGS
   $ 59,998  
             
12/31/2009
  
Total Prepaid to Supplier
   $ 148,000  

25.
Prepaid of $207,998 was disclosed as related party transactions, and the related purchase contracts were attached as exhibit.

General

26.
Updated