UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_______
FORM 10-Q
(Mark One)
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2012
OR
¨ | TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ___________________________ to ___________________________
Commission file number: 333-164788
ACTIVE HEALTH FOODS, INC.
(Exact Name of Registrant as Specified in Its Charter)
California |
| 26-1736663 |
(State or Other Jurisdiction of Incorporation or Organization) |
| (I.R.S. Employer Identification Number) |
|
|
|
6185 Magnolia Ave., Suite 403 |
| Riverside, CA 92506 |
(Address of Principal Executive Offices) |
| (City, State and Zip Code) |
(951) 360-9970
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report)
Copies to:
NBDC
5070 Arville St., Suite 7
Las Vegas, Nevada 89118
Voice and Fax (702) 988-4250
Email: nbdc@onebox.com
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
1
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No x
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” "non-accelerated filer" and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer | o |
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 ¨ No x
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date:
As of November 13, 2012, there were 666,958,000 shares of common stock, par value $0.001 per share, outstanding and no shares of preferred stock outstanding.
TABLE OF CONTENTS
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| Page |
PART I – FINANCIAL INFORMATION |
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Item 1. | Financial Statements | 4 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Plan of Operations | 13 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 17 |
Item 4. | Controls and Procedures | 17 |
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PART II – OTHER INFORMATION |
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Item 1. | Legal Proceedings | 18 |
Item 1A. | Risk Factors | 18 |
Item 2. | Unregistered Sale of Equity Securities and Use of Proceeds | 18 |
Item 3. | Defaults Upon Senior Securities | 21 |
Item 4. | Submission of Matters to a Vote of Security Holders | 21 |
Item 5. | Other Information | 21 |
Item 6. | Exhibits | 21 |
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SIGNATURES |
| 21 |
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CERTIFICATIONS
| Exhibit 31.1 Management Certification |
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| Exhibit 32.2 Sarbanes-Oxley Act |
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PART I
FINANCIAL INFORMATION
Item 1. Financial Statements.
[INSERT FINANCIAL STATEMENTS HERE
]
ACTIVE HEALTH FOODS, INC. | ||||||||
(A Development Stage Company) | ||||||||
Condensed Balance Sheets | ||||||||
ASSETS | ||||||||
September 30, | December 31, | |||||||
2012 | 2011 | |||||||
(Unaudited) |
| |||||||
CURRENT ASSETS | ||||||||
Cash | $ | 5,738 | $ | 1,130 | ||||
Accounts receivable | 28,062 | - | ||||||
Inventory | 83,198 | 33,476 | ||||||
Deposits |
| - |
| 10,512 | ||||
Total Current Assets |
| 116,998 |
| 45,118 | ||||
TOTAL ASSETS | $ | 116,998 | $ | 45,118 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable and accrued expenses | $ | 50,659 | $ | 10,000 | ||||
Related-party payables | 224,503 | 230,416 | ||||||
Interest payable | 1,975 | - | ||||||
Convertible debt, net | 33,204 | - | ||||||
Derivative liability | 214,727 | - | ||||||
Notes payable |
| 64,361 |
| 84,000 | ||||
Total Current Liabilities |
| 589,429 |
| 324,416 | ||||
TOTAL LIABILITIES |
| 589,429 |
| 324,416 | ||||
STOCKHOLDERS' DEFICIT | ||||||||
Preferred stock; 100,000,000 shares authorized, | ||||||||
at $0.001 par value, 25,000,000 and 25,000,000 | ||||||||
shares issued and outstanding, respectively | 25,000 |
| 25,000 | |||||
Common stock; 2,000,000,000 shares authorized, | ||||||||
at $0.001 par value, 381,958,000 and 800,350,000 | ||||||||
shares issued and outstanding, respectively | 381,958 | 800,350 | ||||||
Stock subscription payable | 13,000 | - | ||||||
Additional paid-in capital | 3,992,212 | (728,050) | ||||||
Deficit accumulated during the development stage |
| (4,884,601) |
| (376,598) | ||||
Total Stockholders' Deficit |
| (472,431) |
| (279,298) | ||||
TOTAL LIABILITIES AND |
|
| ||||||
STOCKHOLDERS' DEFICIT | $ | 116,998 | $ | 45,118 | ||||
The accompanying notes are an integral part of these condensed financial statements. |
ACTIVE HEALTH FOODS, INC. | |||||||||||||||||
(A Development Stage Company) | |||||||||||||||||
Condensed Statements of Operations | |||||||||||||||||
(Unaudited) | |||||||||||||||||
| From Inception on | ||||||||||||||||
|
|
| January 9, | ||||||||||||||
For the Three Months Ended | For the Nine Months Ended | 2008 Through | |||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | |||||||||||||
REVENUES | $ | 30,917 | $ | - | $ | 64,822 | $ | - | $ | 81,586 | |||||||
COST OF SALES |
| 21,441 |
| - |
| 42,059 |
| - |
| 69,637 | |||||||
GROSS PROFIT |
| 9,476 |
| - |
| 22,763 |
| - | 11,949 | ||||||||
OPERATING EXPENSES | |||||||||||||||||
Impairment of intangible assets | - | - | - | - | 64,592 | ||||||||||||
Advertising expense | 1,383 | - | 6,557 | 243 | 33,007 | ||||||||||||
Professional fees | 49,730 | 17,805 | 3,621,038 | 30,046 | 3,785,185 | ||||||||||||
General and administrative |
| 807,399 |
| 6,721 |
| 826,969 |
| 13,825 |
| 897,055 | |||||||
Total Operating Expenses |
| 858,512 |
| 24,526 |
| 4,454,564 |
| 44,114 |
| 4,779,839 | |||||||
LOSS FROM OPERATIONS |
| (849,036) |
| (24,526) |
| (4,431,801) |
| (44,114) |
| (4,767,890) | |||||||
OTHER EXPENSE | |||||||||||||||||
Gain or loss on derivative | 39,269 | - | 57,752 | - | 57,752 | ||||||||||||
Interest expense |
| (103,217) |
| - |
| (133,954) |
| - |
| (174,463) | |||||||
Total Other Expense |
| (63,948) |
| - |
| (76,202) |
| - |
| (116,711) | |||||||
LOSS BEFORE INCOME TAXES | (912,984) | (24,526) | (4,508,003) | (44,114) | (4,884,601) | ||||||||||||
PROVISION FOR INCOME TAXES |
| - |
| - |
| - |
| - |
| - | |||||||
NET LOSS | $ | (912,984) | $ | (24,526) | $ | (4,508,003) | $ | (44,114) | $ | (4,884,601) | |||||||
BASIC AND DILUTED LOSS | |||||||||||||||||
PER SHARE | $ | (0.00) | $ | (0.00) | $ | (0.01) | $ | (0.00) | |||||||||
WEIGHTED AVERAGE NUMBER | |||||||||||||||||
OF COMMON SHARES OUTSTANDING |
| 693,560,891 |
| 2,300,250,000 |
| 577,087,051 |
| 2,291,336,300 | |||||||||
The accompanying notes are an integral part of these condensed financial statements |
ACTIVE HEALTH FOODS, INC. | ||||||||||||
(A Development Stage Company) | ||||||||||||
Condensed Statements of Cash Flows | ||||||||||||
(Unaudited) | ||||||||||||
| From Inception on | |||||||||||
|
| January 9, | ||||||||||
For the Nine Months Ended | 2008 Through | |||||||||||
September 30, | September 30, | |||||||||||
2012 | 2011 | 2012 | ||||||||||
OPERATING ACTIVITIES | ||||||||||||
Net loss | $ | (4,508,003) | $ | (44,114) |
| $ | (4,884,601) | |||||
Adjustments to reconcile net loss to net cash | ||||||||||||
used by operating activities: | ||||||||||||
Common stock issued for services | 4,244,870 | - | 4,316,820 | |||||||||
Impairment of intangible assets | - | - | 64,592 | |||||||||
Gain on re-measurement of derivative liability | (57,752) | - | (57,752) | |||||||||
Amortization of discount on notes payable | 165,183 | - | 205,692 | |||||||||
Operating expenses paid by shareholder | 27,821 | 1,243 | 32,320 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Inventory | (49,722) | (24,175) | (83,198) | |||||||||
Deposits | 10,512 | - | - | |||||||||
Accounts receivable | (28,062) | - | (28,062) | |||||||||
Interest payable | 1,975 | - | 1,975 | |||||||||
Accounts payable and accrued expenses |
| 40,659 |
| (142) |
|
| 50,659 | |||||
Net Cash Used in Operating Activities |
| (152,519) |
| (67,188) |
| (381,555) | ||||||
INVESTING ACTIVITIES | ||||||||||||
Purchase of intangible assets |
| - |
| - |
| (5,000) | ||||||
Net Cash Used in Investing Activities |
| - |
| - |
| (5,000) | ||||||
FINANCING ACTIVITIES | ||||||||||||
Repayment of notes payable | (12,639) | - | (28,639) | |||||||||
Proceeds from related-party loans | 230,078 | 68,459 | 588,950 | |||||||||
Proceeds from convertible debt | 140,500 | - | 140,500 | |||||||||
Sale of common stock | 50,000 | 25,250 | 75,250 | |||||||||
Subscription payable | 13,000 | - | 13,000 | |||||||||
Repayment of related-party loans |
| (263,812) |
| (22,701) |
| (396,768) | ||||||
Net Cash Provided by Financing Activities |
| 157,127 |
| 71,008 |
| 392,293 | ||||||
NET INCREASE IN CASH |
| 4,608 |
| 3,820 |
| 5,738 | ||||||
CASH AT BEGINNING OF PERIOD |
| 1,130 |
| 150 |
| - | ||||||
CASH AT END OF PERIOD | $ | 5,738 | $ | 3,970 | $ | 5,738 | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
| |||||||||||
CASH PAID FOR: | ||||||||||||
Interest | $ | - | $ | - | $ | - | ||||||
Income taxes | $ | - | $ | - | $ | - | ||||||
NON CASH FINANCING ACTIVITIES: | ||||||||||||
Common stock issued for assets | $ | - | $ | - | $ | 100 | ||||||
Debt assumed in acquisition of assets | $ | - | $ | - | $ | 100,000 | ||||||
Debt discount on derivative liability | $ | 140,500 | $ | - | $ | 140,500 | ||||||
Preferred stock issued upon conversion of common stock | $ | - | $ | - | $ | 85,100 | ||||||
Cancellation of common stock | $ | 1,124,742 | $ | - | $ | 1,184,842 | ||||||
Gain on forgiveness of debt by a related party | $ | 7,000 | $ | - | $ | 7,000 | ||||||
The accompanying notes are an integral part of these condensed financial statements. |
5
ACTIVE HEALTH FOODS, INC.
(A Development Stage Company)
Notes to Unaudited Condensed Financial Statements
September 30, 2012 and December 31, 2011
NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at September 30, 2012 and for all periods presented have been made.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2011 audited financial statements. The results of operations for the period ended September 30, 2012 and 2011 are not necessarily indicative of the operating results for the full years.
NOTE 2 - GOING CONCERN
The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company does not have significant cash or other current assets, nor does it have an established source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern. The Company is seeking to merge with or acquire an existing operating company.
The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish its merger and/or acquisition strategy, and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.
NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES
Reclassification
Certain balances in previously issued financial statements have been reclassified to be consistent with the current period presentation.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Inventory
In accordance with ASC 330, the Company’s inventories are recorded at the lower of cost or market. As of December 31, 2011 the Company’s inventory consisted of raw materials and packaging materials.
September 30, | December 31, | ||||
2012 | 2011 | ||||
Raw materials | $ | 3,479 | $ | 33,476 | |
Finished goods | 79,719 | - | |||
Inventory in transit | - | - | |||
Allowance for obsolete inventory | - | - | |||
Total | $ | 83,198 | $ | 33,476 |
NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES (Continued)
Recent Accounting Pronouncements
The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position or statements.
NOTE 4 – RELATED PARTY TRANSACTIONS
As of September 30, 2012 and December 31, 2011, respectively, the Company had borrowed a net total of $224,503 and $230,416 from an officer of the Company to finance the ongoing operations of the Company. These payables are non-interest bearing, unsecured, and are due on demand.
NOTE 5 – NOTES PAYABLE
At September 30, 2012, the Company was delinquent on its payments of two notes payable. The Company has recognized the full discount on the note as interest expense and has reclassified the entire note balance to current liabilities. As of September 30, 2012, the balance of the notes totaled $64,361. The notes are due on demand.
NOTE 6 – CONVERTIBLE NOTES PAYABLE
$37,500 Convertible Note - On June 26, 2012 the Company borrowed $37,500 from an unrelated third party entity in the form of a convertible note, $35,000 of which was received in cash and $2,500 of which was for legal fees. The note bears interest at a rate of 8.0 percent per annum, with principal and interest due in full on March 27, 2013.
The principal balance of the note along with accrued interest is convertible at any time, at the option of the note holder, into the Company's common stock at a price of 42 percent below the current market price. The current market price is defined as the average of the lowest three trading prices for the Common Stock during the ten day period on the latest complete trading day prior to the conversion date.
Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $37,500 on the note date. As of September 30, 2012 the Company had amortized $13,138 of the debt discount to interest expense, leaving $24,362 in unamortized debt discount at September 30, 2012.
$53,000 Convertible Note - On August 7, 2012 the Company borrowed $53,000 from an unrelated third party entity in the form of a convertible note, $50,000 of which was received in cash and $3,000 of which was for lawyer fees. The note bears interest at a rate of 8 percent per annum, with principal and interest due in full on May 9, 2013.
The principal balance of the note along with accrued interest is convertible at any time, at the option of the note holder, into the Company's common stock at a price of 42 percent below the current market price. The current market price is defined as the average of the lowest three trading prices for the Common Stock during the ten day period on the latest complete trading day prior to the conversion date.
Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $53,000 on the note date. As of September 30, 2012 the Company had amortized $10,407 of the debt discount to interest expense, leaving $42,593 in unamortized debt discount at September 30, 2012.
$50,000 Convertible Note - On August 10, 2012 the Company borrowed $50,000 from an unrelated third party entity in the form of a convertible note, $48,500 of which was received in cash and $1,500 of which was for lawyer fees. The note bears interest at a rate of 8 percent per annum, with principal and interest due in full on May 1, 2013.
NOTE 6 – CONVERTIBLE NOTES PAYABLE (Continued)
The principal balance of the note along with accrued interest is convertible at any time, at the option of the note holder, into the Company's common stock at a price of 50 percent below the current market price. The current market price is defined as the average of the lowest three trading prices for the Common Stock during the ten day period on the latest complete trading day prior to the conversion date.
Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $50,000 on the note date. As of September 30, 2012 the Company had amortized $9,659 of the debt discount to interest expense, leaving $40,341 in unamortized debt discount at September 30, 2012.
NOTE 7 – DERIVATIVE LIABILITY
On June 26, 2012 the Company executed a convertible note payable in the amount of $37,500 which is convertible at the holder’s option at 42 percent below the average of the lowest three daily closing prices per share for the previous 10 days on the date of conversion.
The fair value of the conversion option of the convertible note of $76,408 has been recognized as a derivative liability on the date of issuance with all future changes in the fair value of these conversion options being recognized in earnings in the Company’s statement of operations under the caption “Other income (expense) – Gain (loss) on derivative liability” until such time as the note is converted or the conversion feature expires.
The Company uses the Black-Scholes option pricing model to value the derivative liability and subsequent remeasurements. Included in the model are the following assumptions: stock price at valuation date of $0.0029, exercise price of $0.0017, dividend yield of zero, years to maturity of 0.49, risk free rate of 0.14 percent, and annualized volatility of 321 percent.
ASC 815 requires the Company to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value of the derivatives as gain (loss) on the income statements. At September 30, 2012 the derivative liability was revalued at $51,980, which led to the Company recording a gain on derivative liability in the amount of $24,427.
On August 7, 2012 the Company executed a convertible note payable in the amount of $53,000 which is convertible at the holder’s option at 42 percent below the average of the lowest three daily closing prices per share for the previous 10 days on the date of conversion.
The fair value of the conversion option of the convertible note of $94,962 has been recognized as a derivative liability on the date of issuance with all future changes in the fair value of these conversion options being recognized in earnings in the Company’s statement of operations under the caption “Other income (expense) – Gain (loss) on derivative liability” until such time as the note is converted or the conversion feature expires.
The Company uses the Black-Scholes option pricing model to value the derivative liability and subsequent remeasurements. Included in the model are the following assumptions: stock price at valuation date of $0.0029, exercise price of $0.0017, dividend yield of zero, years to maturity of 0.61, risk free rate of 0.17 percent, and annualized volatility of 319 percent.
ASC 815 requires the Company to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value of the derivatives as gain (loss) on the income statements. At September 30, 2012 the derivative liability was revalued at $76,664, which led to the Company recording a gain on derivative liability in the amount of $18,297.
On August 10, 2012 the Company executed a convertible note payable in the amount of $50,000 which is convertible at the holder’s option at 50 percent below the average of the lowest three daily closing prices per share for the previous 30 days on the date of conversion.
NOTE 7 – DERIVATIVE LIABILITY (Continued)
The fair value of the conversion option of the convertible note of $101,111 has been recognized as a derivative liability on the date of issuance with all future changes in the fair value of these conversion options being recognized in earnings in the Company’s statement of operations under the caption “Other income (expense) – Gain (loss) on derivative liability” until such time as the note is converted or the conversion feature expires.
The Company uses the Black-Scholes option pricing model to value the derivative liability and subsequent remeasurements. Included in the model are the following assumptions: stock price at valuation date of $0.0029, exercise price of $0.0014, dividend yield of zero, years to maturity of 0.58, risk free rate of 0.17 percent, and annualized volatility of 325 percent.
ASC 815 requires the Company to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value of the derivatives as gain (loss) on the income statements. At September 30, 2012 the derivative liability was revalued at $86,230, which led to the Company recording a gain on derivative liability in the amount of $14,882.
NOTE 8 – EQUITY TRANSACTIONS
Stock-Split
On October 12, 2011 the Company elected to perform a forward-split of its common stock at a ratio of 1:100 shares. All references to common stock in these financial statements, unless otherwise noted, have been retroactively restated to include the effect of this forward stock-split.
Common Stock Issuances
On April 6, 2011, the Company issued 6,900,000 shares of common for cash at $0.001 per share, for an aggregate total of $6,900.
On April 7, 2011, the Company issued 2,000,000 shares of common for cash at $0.001 per share, for an aggregate total of $2,000.
On April 8, 2011, the Company issued 16,350,000 shares of common for cash at $0.001 per share, for an aggregate total of $16,350.
On July 1, 2011, the Company issued 50,100,000 shares of common for services at $0.001 per share, for an aggregate total of $50,000.
On August 15, 2011, the Company cancelled 10,000,000 shares of common stock.
On September 7, 2011, the Company issued 200,000 shares of common for services at $0.001 per share, for an aggregate total of $200.
On October 1, 2011, the Company cancelled 50,100,000 shares of common stock.
On October 12, 2011 the Company issued 25,000,000 shares of preferred stock upon conversion of 1,490,000,000 shares of common stock.
On January 3, 2012, the Company cancelled 350,000,000 shares of the Company’s common stock.
On February 21, 2012, the Company received $13,000 in cash pursuant to a subscription payable to an unrelated third party investor.
On February 25, 2012, the Company cancelled 3,000,000 shares of the Company’s common stock.
NOTE 8 – EQUITY TRANSACTIONS (Continued)
On June 4, 2012, the Company issued 5,000,000 shares of the Company’s common stock for $50,000 in cash.
On June 4, 2012, the Company issued 447,650,000 shares of the Company’s common stock for services at $.0078 per share, for an aggregate total of $3,491,670.
On June 26, 2012, the Company cancelled 38,700,000 shares of the Company’s common stock.
On June 26, 2012, the Company issued 700,000 shares of the Company’s common stock for services at $.008 per share, for an aggregate total of $5,600.
On July 11, 2012 the Company issued 38,000,000 shares of common stock for services at $0.0027 per share, resulting in an aggregate total of $102,600.
On July 25, 2012 the Company received a gain on settlement of debt of $7,000 from a related party of the Company.
On August 3, 2012, the Company cancelled 135,000,000 shares of the Company’s common stock.
On August 9, 2012, the Company cancelled 383,042,000 shares of the Company’s common stock.
On September 6, 2012, the Company cancelled 498,351,000 shares of the Company’s common stock.
On September 6, 2012, the Company issued 215,000,000 shares of the Company’s common stock for services at $.0030 per share, for an aggregate total of $645,000.
On September 21, 2012, the Company cancelled 40,000,000 shares of the Company’s common stock.
NOTE 9 – SUBSEQUENT EVENTS
On October 3, 2012 the Company executed a convertible note payable in the amount of $37,500 which is convertible at the holder’s option at 42 percent below the average of the lowest three daily closing prices per share for the previous 10 days on the date of conversion.
On October 24, the Company increased the total number of authorized shares of voting common stock from 900,000,000 to 2,000,000,000.
On October 24, the Company increased the total number of authorized shares of preferred stock from 50,000,000 to 100,000,000.
On October 26, 2012 the Company issued 285,000,000 shares of the Company’s common stock.
On October 26, 2012 the Company issued 50,000,000 shares of the Company’s Preferred stock.
The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and has determined that there are no additional items to disclose.
6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes, and the other financial information included in this report.
Forward-Looking Statements
The following discussion and analysis should be read in conjunction with our financial statements and related notes thereto included elsewhere in this filing. Portions of this document that are not statements of historical or current fact are forward-looking statements that involve risk and uncertainties, such as statements of our plans, objectives, expectations and intentions. Any cautionary statements made herein should be read as applying to all related forward-looking statements wherever they appear. From time to time, we may publish forward-looking statements relative to such matters as anticipated financial performance, business prospects, technological developments and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. All statements other than statements of historical fact included in this section or elsewhere in this report are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Important factors that could cause actual results to differ materially from those discussed in such forward-looking statements include, but are not limited to, the following: changes in the economy or in specific customer industry sectors; changes in customer procurement policies and practices; changes in product manufacturer sales policies and practices; the availability of product and labor; changes in operating expenses; the effect of price increases or decreases; the variability and timing of business opportunities including acquisitions, alliances, customer agreements and supplier authorizations; our ability to realize the anticipated benefits of acquisitions and other business strategies; the incurrence of debt and contingent liabilities in connection with acquisitions; changes in accounting policies and practices; the effect of organizational changes within the Company; the emergence of new competitors, including firms with greater financial resources than ours; adverse federal, state and/or local legislation and/or regulation; and the occurrence of extraordinary events, including natural events such as earthquakes, fires and floods, accidents and Acts of God. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
Forward-looking statements involve risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Factors and risks that could affect our results and achievements and cause them to materially differ from those contained in the forward-looking statements include those previously identified in prior SEC filings, as well as other factors that we are currently unable to identify or quantify, but that may exist in the future.
Readers are cautioned not to place undue reliance on any forward-looking statements contained herein, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements. You are advised, however, to consult any additional disclosures we make in our reports to the SEC. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in this Report.
Overview
Active Health Foods, Inc. (“AHF” or the “Company”), was incorporated in the State of California on January 9, 2008 under the same name.
Active Health Foods, Inc. is a California corporation with a principal business objective of providing competitively priced, premium quality, organic energy bars. Active Health Foods, Inc. has developed the brand name “Active XTM” for its energy bars. The term “Active XTM” was trademarked by the company on May 6, 2008. Active XTM energy bars are organic, moist and flavorful. Our energy bars are made from a proprietary formula developed by and exclusive to Active Health Foods, Inc. This proprietary blend only uses natural and organic ingredients. Active XTM energy bars come in four flavors:
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► Almond Chocolate Delight
► Peanut Butter Chocolate Joy
► Cashew Berry Dream
► Coconut Cocoa Passion
Each energy bar is 1.8 net ounces and comes wrapped in a distinctive, decorated full color wrapping. Each flavor is packaged into a full color decorated display box, which is specifically designed to be used as a counter display for the retailer. Each uniquely designed display box holds 16 bars. There are eight display boxes to a case, for a total of 128 bars per case.
Competition
Currently, the organic and health food industry is growing and the Company faces considerable competition from other companies worldwide. This business is replete with competition at all levels of geographic settings, expertise and ethical variances. Our ability to remain competitive is based on our ability to provide our customers with a broad range of quality products, competitively priced, with superior customer service. The prospective ability to develop cost effective products that provide superior value is an integral component of our ability to stay competitive. We believe that the breadth and quality of our existing product line, the infrastructure in place to effectively source our products and the skill and dedication of our management will allow us to successfully compete in our chosen marketplace.
No formal study has been commissioned or initiated to analyze the competition that the Company will or may face. The Company’s internal management competitor analysis reveals that the health food industry is a competitive business with competition coming from small locally owned companies, major big box stores labeling generic brands with their signature label, to the more popular selling organic bars such as “Clif” and “Luna”. None of these produce and sell 100% organic and 100% natural food bars like Active XTM energy bars and as such they lack the nutritional value of an Active XTM energy bar. All competitors’ bars are dry, bland and contain fillers and paste, resulting in more of a rice crispy type bar than a 100% organic and 100% natural moist and flavorful bar such as Active XTM.
All of our major competitors are generally better financed, have greater name recognition, an established customer loyalty base and a broader range of markets than we do presently. Our core philosophy of a 100% organic and 100% natural product, reliability of not only product quality but delivery as well, along with a fair price, we believe will distinguish our Company from the competition. Even with the competitive nature of the business, there is an opportunity for the Company to position itself for success by recognizing and catering to an increasingly demanding consumer. If the Company is unable to compete successfully against any of these competitors, then revenues could be negatively impacted, which would adversely affect the business, results of operations and financial condition of the Company.
Employees
The Company does not presently have any full or part-time employees. The sole officer and director of the Company is providing time and services as necessary for the development of the Company.
Active Health Foods, Inc. is currently in the development stage. During this development period, we plan to rely exclusively on the services of our sole officer and director to establish business operations and perform or supervise the minimal services required at this time. Our operations are currently on a small scale and, it is believed, manageable by the present management. The responsibilities are mainly administrative at this time, as our operations are minimal.
Recent Developments
None
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Results of Operations
Three Months Ended September 30, 2012
Revenues for the three months ended September 30, 2012 were $30,917, compared to $-0- for the three months ended September 30, 2011. The lack of revenues in 2011 can be attributed to our start-up nature and lack of operating funds.
Gross profit was $9,476 for the three months ended September 30, 2012, compared to $-0- for the three months ended September 30, 2011.
Operating expenses were $858,512 for the three months ended September 30, 2012, as compared to $24,526 for the three months ended September 30, 2011. The significant increase in operating expenses incurred during the current period relates primarily to an issuance of
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253,000,000 shares of common stock to the Company’s president during the period. These shares were valued at $
102
747,600, resulting in
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87 percent of the Company’s operating expenses during the period.
The Company has a net loss for the three month period ended September 30, 2012 of $912,984 as compared to $24,526 for the three month period ended September 30, 2011.
Nine Months Ended September 30, 2012
Revenues for the nine months ended September 30, 2012 were $64,822, compared to $-0- for the nine months ended September 30, 2011. The lack of revenues in 2011 can be attributed to our start-up nature and lack of operating funds.
Gross profit was $22,763 for the nine months ended September 30, 2012, compared to $-0- for the nine months ended September 30, 2011.
Operating expenses were $4,454,564 for the nine months ended September 30, 2012, as compared to $44,114 for the nine months ended September 30, 2011. The significant increase in operating expenses incurred during the current period relates primarily to an issuance of
485,650,000
701,350,000 shares of common stock to the Company’s president during the period. These shares were valued at $
3,594,270
4,244,870, resulting in 95 percent of the Company’s operating expenses during the period.
The Company has a net loss for the nine month period ended September 30, 2012 of $4,508,003 as compared to $44,114 for the nine month period ended September 30, 2011.
From Inception on January 9, 2008 through September 30, 2012
Revenues from inception on January 9, 2008 through September 30, 2012 were $81,586. Gross profit for the same time period was $11,949.
Operating expenses from inception on January 9, 2008 through September 30, 2012 were $4,779,839. The vast majority of this amount relates to an issuance of
485,650
2,701,350,000 shares of common stock to the Company’s president during the period. These shares were valued at $4,264,870, resulting in
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89 percent of the Company’s operating expenses from inception through September 30, 2012.
The Company has a net loss for the period from inception on January 9, 2008 through September 30, 2012 of $4,884,601
Liquidity and Capital Resources
Liquidity
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For the nine months ended September 30, 2012, we experienced a net loss of approximately $4,508,003 compared to $44,114 for the nine months ended September 30, 2011. On September 30, 2012, we had approximately $5,738 in cash compared to approximately $1,130 in cash at December 31, 2011. Accounts receivable, net of allowances for doubtful accounts, totaled $28,062.
Our liquidity and capital resource planning is largely dependent on the generation of operating cash flows, which is highly sensitive to changes in demand in the market place, the general economic downturn and our own lack of operating funding. Our principal liquidity requirements are to finance current operations and fund future expansion. Currently, our primary source of liquidity to meet these needs is the cash generated by operations and the sale of our equity.
Cash Flow
For the nine months ended September 30, 2012, we had negative cash flow from operations of $152,519. For the nine months ended September 30, 2011, we had negative cash flow from operations of approximately $67,188. This negative cash flow is primarily due to the start-up nature of our business, the general economic downturn and our lack of operating capital.
There were no investment activities for either of the nine month periods ending September 30, 2012 or September 30, 2011.
For the nine months ended September 30, 2012, we had positive cash flows from financing of approximately $157,127. For the nine months ended September 30, 2011, we had positive cash flows from financing of approximately $71,008. This positive cash flow is primarily due the sale of common stock for cash, and the issuance of related-party and convertible debt.
Capital Resources
Line of Credit
The Company does not have any line of credit nor does it anticipate applying for any. However, should the current financial condition of the Company prove to be insufficient for the Company’s future requirements, the Company is willing to attempt entry into the capital markets to raise the necessary capital to meet its needs.
Long Term Notes
The Company does not have any long term notes and does not anticipate acquiring any.
Critical Accounting Estimates and Recently Issued Accounting Standards
Please refer to the Notes to the financial statements.
Inflation
In the opinion of management, inflation will not have any material impact on the Company’s financial condition and results of its operations.
Off-Balance Sheet Arrangements
We do not have any off balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that could reasonably be foreseen as material to any investor in our securities.
Seasonality
Our operating results are generally not materially affected by seasonality.
Other Considerations
There are numerous factors that impact or that can potentially impact our business and results of our operations. Sources of these factors include general economic and business conditions, federal, state and local regulation of business activities, the level of demand for product or services, the level and intensity of competition, the ability to develop new services and products based on new or evolving technology and the market’s acceptance of those new services or products, our ability to timely and effectively manage periodic product transitions, customer and geographic sales mix of any particular period, and our ability to continue to improve our infrastructure including personnel and systems to keep pace with our anticipated growth.
Additional Information
We file reports and other materials with the Securities and Exchange Commission. These documents may be inspected and copied at the Commission’s Public Reference Room located at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the Commission at 1-800-SEC-0330. The Commission maintains a web site at http://www.sec.gov that contains reports, proxy and information statements and other information regarding issuers that file electronically with the Commission.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
We do not hold any derivative instruments and do not engage in any hedging activities.
Item 4. Controls and Procedures.
Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules, regulations and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive and financial officers, as appropriate, to allow timely decisions regarding required disclosure.
Evaluation of Controls and Procedures
In accordance with Securities Exchange Act of 1934, Rules 13a-15(e) and 15d-15(e), our management is required to perform an evaluation under the supervision and with the participation of the Company’s management, including the Company’s principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the period. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective in ensuring that the information required to be filed or submitted under the Exchange Act is accumulated and communicated to our management, as appropriate, to allow timely decisions regarding required disclosure, recording, processing, summarizing and reporting as specified in the Securities and Exchange Commission’s rules and regulations.
Changes in Internal Controls
There were no changes in internal controls over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II
OTHER INFORMATION
Item 1. Legal Proceedings.
We are not a party to any legal proceedings, there are no known judgments against the Company, nor are there any known actions or suits filed or threatened against us or our officers and directors, in their capacities as such. We are not aware of any disputes involving the Company and the Company has no known claim, actions or inquiries from any federal, state or other government agency. We are not aware of any claims against the Company or any reputed claims against it at this time.
Item 1A. Risk Factors.
Any investment in our securities involves a high degree of risk. There have been no material changes to the risk factors previously disclosed in our public filings. However, all risk factors should be considered and consultation with appropriate legal and financial advisors is recommended.
When we become fully reporting, these additional risk factors should be considered:
Our Common Stock Is Subject to Penny Stock Regulation
Our shares are subject to the provisions of Section 15(g) and Rule 15g-9 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), commonly referred to as the "penny stock" rule. Section 15(g) sets forth certain requirements for transactions in penny stocks and Rule 15g-9(d)(1) incorporates the definition of penny stock as that used in Rule 3a51-1 of the Exchange Act. The Commission generally defines penny stock to be any equity security that has a market price less than $5.00 per share, subject to certain exceptions. Rule 3a51-1 provides that any equity security is considered to be penny stock unless that security is: registered and traded on a national securities exchange meeting specified criteria set by the Commission; authorized for quotation on the NASDAQ Stock Market; issued by a registered investment company; excluded from the definition on the basis of price (at least $5.00 per share) or the registrant's net tangible assets; or exempted from the definition by the Commission. Since our shares are deemed to be "penny stock", trading in the shares will be subject to additional sales practice requirements on broker/dealers who sell penny stock to persons other than established customers and accredited investors.
FINRA Sales Practice Requirements May Also Limit a Stockholder's Ability to Buy And Sell Our Stock
In addition to the “penny stock” rules described above, the Financial Industry Regulatory Authority (FINRA) has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer's financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers. FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares.
We May Not Have Access to Sufficient Capital to Pursue Our Business and Therefore Would Be Unable to Achieve Our Planned Future Growth
We intend to pursue a growth strategy that includes development of the Company’s business and technology assets. Currently we have limited capital which is insufficient to pursue our plans for development and growth. Our ability to implement our growth plans may depend primarily on our ability to obtain additional private or public equity or debt financing. We are currently seeking additional capital. Such financing may not be available at all, or we may be unable to locate and secure additional capital on terms and conditions that are acceptable to us. Our failure to obtain additional capital may have a material adverse effect on our business.
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If We Become Quoted on the OTCBB Instead of an Exchange or National Quotation System, Our Investors May Have a Tougher Time Selling Their Stock or Experience Negative Volatility on the Market Price of Our Stock
We anticipate our common stock will be traded on the OTCBB. The OTCBB is often highly illiquid. There is a greater chance of volatility for securities that trade on the OTCBB as compared to a national exchange or quotation system. This volatility may be caused by a variety of factors, including the lack of readily available price quotations, the absence of consistent administrative supervision of bid and ask quotations, lower trading volume, and market conditions. Investors in our common stock may experience high fluctuations in the market price and volume of the trading market for our securities. These fluctuations, when they occur, have a negative effect on the market price for our securities. Accordingly, our stockholders may not be able to realize a fair price from their shares when they determine to sell them or may have to hold them for a substantial period of time until the market for our common stock improves.
Failure to Achieve and Maintain Effective Internal Controls in Accordance with Section 404 Of The Sarbanes-Oxley Act Could Have a Material Adverse Effect on Our Business and Operating Results
It may be time consuming, difficult and costly for us to develop and implement the additional internal controls, processes and reporting procedures required by the Sarbanes-Oxley Act. We may need to hire additional financial reporting, internal auditing and other finance staff in order to develop and implement appropriate additional internal controls, processes and reporting procedures. If we are unable to comply with these requirements of the Sarbanes-Oxley Act, we may not be able to obtain the independent accountant certifications that the Sarbanes-Oxley Act requires of publicly traded companies.
If we fail to comply in a timely manner with the requirements of Section 404 of the Sarbanes-Oxley Act regarding internal control over financial reporting or to remedy any material weaknesses in our internal controls that we may identify, such failure could result in material misstatements in our financial statements, cause investors to lose confidence in our reported financial information and have a negative effect on the trading price of our common stock.
Pursuant to Section 404 of the Sarbanes-Oxley Act and current SEC regulations, we will be required to prepare assessments regarding internal controls over financial reporting and furnish a report by our management on our internal control over financial reporting. We have begun the process of documenting and testing our internal control procedures in order to satisfy these requirements, which is likely to result in increased general and administrative expenses and may shift management time and attention from revenue-generating activities to compliance activities. While our management is expending significant resources in an effort to complete this important project, there can be no assurance that we will be able to achieve our objective on a timely basis. There also can be no assurance that our auditors will be able to issue an unqualified opinion on management’s assessment of the effectiveness of our internal control over financial reporting. Failure to achieve and maintain an effective internal control environment or complete our Section 404 certifications could have a material adverse effect on our stock price.
In addition, in connection with our on-going assessment of the effectiveness of our internal control over financial reporting, we may discover “material weaknesses” in our internal controls as defined in standards established by the Public Company Accounting Oversight Board, or the PCAOB. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. The PCAOB defines “significant deficiency” as a deficiency that results in more than a remote likelihood that a misstatement of the financial statements that is more than inconsequential will not be prevented or detected.
In the event that a material weakness is identified, we will employ qualified personnel and adopt and implement policies and procedures to address any material weaknesses that we identify. However, the process of designing and implementing effective internal controls is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to expend significant resources to maintain a system of internal controls that is adequate to satisfy our reporting obligations as a public company. We cannot assure you that the measures we will take will remediate any material weaknesses that we may identify or that we will implement and maintain adequate controls over our financial process and reporting in the future.
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Any failure to complete our assessment of our internal control over financial reporting, to remediate any material weaknesses that we may identify or to implement new or improved controls, or difficulties encountered in their implementation, could harm our operating results, cause us to fail to meet our reporting obligations or result in material misstatements in our financial statements. Any such failure could also adversely affect the results of the periodic management evaluations of our internal controls and, in the case of a failure to remediate any material weaknesses that we may identify, would adversely affect the annual auditor attestation reports regarding the effectiveness of our internal control over financial reporting that are required under Section 404 of the Sarbanes-Oxley Act. Inadequate internal controls could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price of our common stock.
Operating History and Lack of Profits Could Lead to Wide Fluctuations in Our Share Price. The Price at Which You Purchase Our Common Shares May Not Be Indicative of the Price That Will Prevail in The Trading Market. You May Be Unable to Sell Your Common Shares at or above Your Purchase Price, Which May Result in Substantial Losses to You. The Market Price for Our Common Shares May Be Particularly Volatile Given Our Status as a Relatively Unknown Company.
The market for our common shares is characterized by significant price volatility when compared to seasoned issuers, and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future. The volatility in our share price is attributable to a number of factors. First, as noted above, our common shares are sporadically and thinly traded. As a consequence of this lack of liquidity, the trading of relatively small quantities of shares by our shareholders may disproportionately influence the price of those shares in either direction. The price for our shares could, for example, decline precipitously in the event that a large number of our common shares are sold on the market without commensurate demand, as compared to a seasoned issuer which could better absorb those sales without adverse impact on its share price. Secondly, we are a speculative or “risky” investment due to our limited operating history and lack of profits to date, and uncertainty of future market acceptance for our potential products. As a consequence of this enhanced risk, more risk-adverse investors may, under the fear of losing all or most of their investment in the event of negative news or lack of progress, be more inclined to sell their shares on the market more quickly and at greater discounts than would be the case with the stock of a seasoned issuer. Many of these factors are beyond our control and may decrease the market price of our common shares, regardless of our operating performance. We cannot make any predictions or projections as to what the prevailing market price for our common shares will be at any time, including as to whether our common shares will sustain their current market prices, or as to what effect that the sale of shares or the availability of common shares for sale at any time will have on the prevailing market price.
Shareholders should be aware that, according to SEC Release No. 34-29093, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include (1) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (2) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (3) boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (4) excessive and undisclosed bid-ask differential and markups by selling broker-dealers; and (5) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses. Our management is aware of the abuses that have occurred historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities. The occurrence of these patterns or practices could increase the volatility of our share price.
Volatility in Our Common Share Price May Subject Us to Securities Litigation, Thereby Diverting Our Resources That May Have a Material Effect on Our Profitability and Results of Operations
As discussed in the preceding risk factors, the market for our common shares is characterized by significant price volatility when compared to seasoned issuers, and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future. In the past, plaintiffs have often initiated securities class action litigation against a company following periods of volatility in the market price of its securities. We may in the
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future be the target of similar litigation. Securities litigation could result in substantial costs and liabilities and could divert management’s attention and resources.
Item 2. Unregistered Sale of Equity Securities and Use of Proceeds.
The Company has not engaged in the sale of any unregistered securities.
Item 3. Defaults Upon Senior Securities.
There were no defaults upon senior securities of during this reporting period.
Item 4. Submission of Matters to a Vote of Security Holders.
No matters have been submitted to a vote of the security holders.
Item 5. Other Information.
None
Item 6. Exhibits.
Exhibit No. |
| Description |
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31.1 |
| Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act |
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32.1 |
| Certification Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act |
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, there unto duly authorized.
| ACTIVE HEALTH FOODS, INC. |
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Dated: November 13, 2012 | By: | /s/ Gregory Manos |
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| Gregory Manos |
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| Chief Executive Officer, President and Chairman (Principal Executive Officer) (Principal Financial/Accounting Officer) |
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Exhibit 31.1
CERTIFICATION PURSUANT TORULE 13a-14(a)/15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934,AS ADOPTED PURSUANT TOSECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
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I, Gregory Manos, Chief Executive Officer and Chief Financial Officer of the Active Health Foods, Inc., certify that:
1. | I have reviewed this Quarterly report on Form 10-Q of Active Health Foods, Inc.; |
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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; |
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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 small business issuer as of, and for, the periods presented in this report; |
4. | The small business issuer'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 small business issuer 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 small business issuer, 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; |
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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 small business issuer’s disclosure 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 evaluations: and |
d. | Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and |
5. | The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer'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 small business issuer's internal control over financial reporting. |
Registrant Date: November 13, 2012
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| Active Health Foods, Inc.
By: /s/ Gregory Manos |
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| ____________________________________________ Gregory Manos |
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| Chief Executive Officer (Principal Executive Officer) Chief Financial Officer (Principal Financial Officer) |
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
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In connection with the Quarterly Report of Active Health Foods, Inc. (the "Company") on Form 10-Q for the period ending September 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Gregory Manos, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
Registrant Date: November 13, 2012
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| Active Health Foods, Inc.
By: /s/ Gregory Manos |
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| _____________________________________ Gregory Manos |
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| Chief Executive Officer (Principal Executive Officer) Chief Financial Officer (Principal Financial Officer) |
Note 5 - Notes Payable
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3 Months Ended |
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Sep. 30, 2012
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Note 5 - Notes Payable: | |
Note 5 - Notes Payable | NOTE 5 NOTES PAYABLE
At September 30, 2012, the Company was delinquent on its payments of two notes payable. The Company has recognized the full discount on the note as interest expense and has reclassified the entire note balance to current liabilities. As of September 30, 2012, the balance of the notes totaled $64,361. The notes are due on demand. |