0001255294-13-000040.txt : 20130125 0001255294-13-000040.hdr.sgml : 20130125 20130125123134 ACCESSION NUMBER: 0001255294-13-000040 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20121031 FILED AS OF DATE: 20130125 DATE AS OF CHANGE: 20130125 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Avante Systems, Inc. CENTRAL INDEX KEY: 0001504388 STANDARD INDUSTRIAL CLASSIFICATION: HOUSEHOLD AUDIO & VIDEO EQUIPMENT [3651] IRS NUMBER: 000000000 STATE OF INCORPORATION: NV FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-171305 FILM NUMBER: 13547851 BUSINESS ADDRESS: STREET 1: 695-24-05 DESA KIARA, JALAN DAMASARA CITY: KUALA LUMPUR STATE: N8 ZIP: XXXXX BUSINESS PHONE: XXXXXXXXXX MAIL ADDRESS: STREET 1: 695-24-05 DESA KIARA, JALAN DAMASARA CITY: KUALA LUMPUR STATE: N8 ZIP: XXXXX 10-K 1 mainbody.htm MAINBODY

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-K

 

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

For the fiscal year ended October 31, 2012 

 
[  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from _________ to ________
 
Commission file number: 333-171305

 

Avante Systems, Inc.
(Exact name of registrant as specified in its charter)
 
Nevada 99-0362655
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
   

695-24-05 Desa Kiara,

Jalan Damasara

Kuala Lumpur, Malaysia

 

 

_________

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number: 86-075-2533705

 
Securities registered under Section 12(b) of the Exchange Act:
   
Title of each class Name of each exchange on which registered
none not applicable
   
Securities registered under Section 12(g) of the Exchange Act:
Title of class
none

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes [ ] No [X]

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes [X] No [ ]

 

Indicate by checkmark 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 [ ] No [X]

 

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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Yes [X] No [ ]

 

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

 

[ ] Large accelerated filer [ ] Accelerated filer
[ ] Non-accelerated filer [X] Smaller reporting company

 

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

 

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter. Not available

 

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. 2,625,000 as of January 22, 2013 

    

 

TABLE OF CONTENTS 

 

Page

PART I

 

Item 1. Business 3
Item 2. Properties 8
Item 3. Legal Proceedings 8
Item 4. Mine Safety Disclosures 8

 

PART II

 

Item 5. Market for Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities 8
Item 6. Selected Financial Data 10
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 10
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 11
Item 8. Financial Statements and Supplementary Data 12
Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 13
Item 9A(T). Controls and Procedures 13
Item 9B. Other Information 13

 

PART III

 

Item 10. Directors, Executive Officers and Corporate Governance 14
Item 11. Executive Compensation 15
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 17
Item 13. Certain Relationships and Related Transactions, and Director Independence 17
Item 14. Principal Accountant Fees and Services 17

 

PART IV

 

Item 15. Exhibits, Financial Statement Schedules 18

 

2

PART I

 

Item 1. Business


Company Overview

 

We were incorporated as “Avante Systems, Inc.” on August 12, 2010, in the State of Nevada for the purpose of developing, manufacturing, and selling a cellular video camera specifically for use in schools, child/eldercare facilities, and residences in Asia.

 

Business of Company

 

We are engaged in the business of developing, manufacturing, and selling a video camera integrated with a 3G mobile phone module specifically for use in schools, child/eldercare facilities, and residences in Asia (our "Product"). We intend that our Product will be versatile in function, so that it can be used either as a means of monitoring the care of a family member or as a home security device, or allowing remote surveillance of a residence. This Product will enable parents and guardians to visually and audibly monitor their child while they are in school, daycare, or at home with a nanny. Our product can also be used to monitor an elderly relative while they are in the care of a home nurse, nursing home, or other eldercare facility. Communication with the Product will be accomplished through a 3G mobile phone network. It will therefore be wireless and not require internet access as many of the remote monitoring devices presently available in the Asian market do.

 

We are currently in the process of designing and developing our Product, and we are continually refining our design through experiments, testing the visual and auditory quality and range of the device during production. When we are satisfied that our Product will compete effectively in the Surveillance Industry in Asia by being the most convenient, versatile, and user-friendly remote monitoring device, we will begin the manufacture and distribution of the Product to schools, child/eldercare facilities, and electronic surveillance wholesalers and retailers.

 

Our offices are located at 695-24-05 Desa Kiara, Jalan Damasara, Kuala Lumpur, Malaysia.

 

Third Generation Technology and Wideband Code Division Multiple Access

 

One of the most recent developments in mobile communications is the proliferation of third generation, or “3G” technology. Analog cellular technology is generation one and digital/PCS is generation two. 3G technology was developed to allow true multimedia features on mobile phones - typically smartphones. 3G technology provides the increased bandwidth and transfer rates to accommodate Web-based applications and phone-based audio and video files. 3G is a mobile phone network protocol, which comprises several cellular access technologies. Some common ones are:

 

  • WCDMA (UMTS) - Wideband Code Division Multiple Access

  • UMTS - Universal Mobile Telecommunication Service

  • CDMA2000 - based on 2G Code Division Multiple Access

  • TD-SCDMA - Time-division Synchronous Code-division Multiple Access

  • HSDPA - High-Speed Downlink Packet Access

  • EVDO - Evolution Data Maximized
3

    3G networks have potential transfer speeds of up to 3 Mbps, which for users means about 15 seconds to download a 3-minute MP3 song. For comparison, the fastest 2G phones can achieve up to 144Kbps (about 8 minutes to download a 3-minute song). 3G's high data rates are ideal for downloading information from the Internet and sending and receiving large multimedia files. 3G phones can accommodate broadband applications like video conferencing, receiving streaming video from the Web, sending and receiving faxes, and instantly downloading e-mail messages with attachments.

     

    CNBC reports that in Asia there is significant availability of the broadband access, which our products would require. The percentages of the population that had access to broadband as of November, 2010 are:

     

    • Korea 81%

    • Japan 80%

    • Singapore 80%

    • Hong Kong 70%

    • Malaysia 65%

    While the CNBC Report did not include China, the China Internet Network Information Center (CINIC) reports that there are over 364 million broadband users in China, which makes up 86.7% of the 420 million Internet users in the country as of June 30, 2010, as well as 27.4% of the 1.33 Billion citizens of China. This is supported by data provided by InternetWorldStats.com as well as reports by market research companies such as budde.com, which indicate China passed the U.S. in 2008 to become the largest broadband market in the world.

     

    Telecommunications companies are now promoting the current or pending roll out of fourth generation, or “4G” technology. As 3G comprised a variety technologies, so 4G includes both WiMax and LTE technologies. The new generation brings another significant jump in data transfer rates, allowing for even smoother use of large audio and video files. The 3 minute MP3 song discussed above that took 8 minutes to download with 2G and 15 seconds to download with 3G will download in less than 1 second utilizing 4G technology.

     

    Our current technology focuses on utilizing 3G to broadcast video and still images to parents. As the market penetration of 4G expands, we will be able to expand our product line by incorporating the faster technology to take advantage of the improved video quality that will result. Also, as the 4G technology spreads, we will be able to build the same 3G products for a reduced cost, and our customers will be able to operate them at a lower cost. By having both high-end and low-end options for our customers, we expect to be able to meet the needs or a wider customer base.

     

    Generation Approximate  Data Rate Stationary
    (can achieve higher rates at some locations)
    Approximate Data Rate Walking
    2G 144 Kbit per sec 144 Kbit per sec
    3G 2 Mbit per sec 384 kbit per sec
    4G 1 Gbit per sec  100 Mb per sec

     

    While the penetration rates listed for broadband above are relatively high, there remain large segments of the population that do not have this access. China is building fourth-generation (4G) network based on the long-term evolution (LTE) technology, which could take years to launch, as the country is still ramping up 3G services. China is largely rural and pricing for the technology would be steep giving the infrastructure costs. Given these and other penetration challenges in China and other Asian countries, there remains the possibility a significant portion of our potential customer base will not have access to the 3G (or 4G) signals (or wired broadband) that are necessary to use our products. If we find that a significant portion of our potential customer base (ie day cares) and their customers (ie parents) do not have access to the technology required to utilize our products, we may find that we are not able to sell enough products to remain a going concern.

    4

     

    Wideband Code Division Multiple Access

     

    Wideband Code Division Multiple Access, or “WCDMA,” is an air interface standard found in 3G mobile telecommunications networks. It is the basis of Japan's NTT DoCoMo's FOMA service, is the most-commonly used member of the UMTS family, and is sometimes used as a synonym for UMTS. It utilizes the DS-CDMA channel access method and the FDD duplexing method to achieve higher speeds and support more users compared to most time division multiple access (“TDMA”) schemes used today. WCDMA uses the same core network as the 2G GSM networks deployed worldwide, allowing dual-mode operation along with GSM/EDGE.

     

    The WCDMA system is a new design by NTT DoCoMo, and it differs in many aspects from CDMA2000. From an engineering point of view, WCDMA provides a different balance of trade-offs between cost, capacity, performance, and density. It also promises to achieve a benefit of reduced cost for video phone handsets. WCDMA may also be better suited for deployment in the very dense cities of Europe and Asia. WCDMA has been developed into a complete set of specifications, a detailed protocol that defines how a mobile phone communicates with the tower, how signals are modulated, how datagrams are structured, and how system interfaces are specified, allowing free competition on technology elements.

     

    Surveillance Industry in Asia

     

    The surveillance market has rapidly expanded over the past few years and gained great importance at the global level. It is expected that the surveillance market will grow at a compound annual growth rate (“CAGR”) of more than 22 percent from 2010, according to a recent report entitled "Global CCTV Market Analysis (2008-2012)" from RNCOS, a market research consulting Services Company. This growth rate clearly indicates that the global market has immense potential in this field.

     

    The RNCOS report also states that due to the rising security concerns and high economic growth in a number of Asian countries, the Asian surveillance market is projected to grow at a CAGR of around 28 percent from 2010 to 2013. Research analyst Frost & Sullivan reports that the annual security market growth rate in Asia-Pacific countries is 7.5%, reaching over US $3 billion by 2015.

     

    According to the A&S International magazine, over 85 percent of the world's security products are made in Asia. Ranging from video surveillance and access control to intrusion alarms, China, Japan, South Korea, Taiwan, Singapore, and Malaysia are the major supplying countries and regions for the global security markets.

     

    China is one of Asia's fastest growing security markets with cost-effective security solutions, R&D, and high-tech security products. China’s surveillance industry was estimated to be worth US $17.5 billion in 2008, equivalent to 0.8 per cent of GDP. For 2012, China’s surveillance industry is expected to reach US $51 billion%.

     

    Our Product

     

    The rising demand for versatile surveillance devices in Asia in general, as well as an increasing demand for effective ways to monitor care providers, has resulted in what we anticipate will be a highly receptive potential market for our Product. We feel that the public is demanding a product that will allow them to observe their loved one’s caretaker while they are away from them, monitor their pet sitters and housekeepers, or check on their house while they are away on vacation. Rising burglary rates and increasing incidents of child and elderly abuse by caregivers have resulted in a growing demand for products that can help prevent or expose such victimization. Advancements in both mobile phone and surveillance camera technology in concurrence with the increased use and consumer comfort level with both technologies has made remote monitoring by mobile phone a reality.

     

    We are in the process of developing a device integrating a 3G mobile phone module and a video camera specifically for use in schools, child/eldercare facilities, and residences in Asia. We intend for our Product to be versatile in function. We expect that it will be used as a means of monitoring the care of family members, or as a home security device allowing remote surveillance of a residence or business. Our Product will enable parents and guardians to visually and audibly monitor their child while they are in school, daycare, or at home with a nanny. Our Product can also be used to monitor an elderly relative while they are in the care of a home nurse, nursing home, or other eldercare facility. While this is our primary target market, we fully expect that our Product will also be used as a security device to monitor homes and businesses while owners are away.

    5

     

    Our Product will be operated through a 3G mobile phone network. Thus, it will not only be wireless, it won’t require internet access through WIFI – unlike many of the remote monitoring devices presently available in the Asian market. Our Product can be placed conspicuously to deter unwanted behavior, or it can be hidden to prevent detection.

     

    As an example, our Product may be installed on the wall of a preschool, constantly capturing a video image of the classroom. A mother could call the Product’s phone number and enter a password, and a real-time video image of her child’s classroom would be streamed to her smartphone. While she is monitoring her child, another child’s father could call and enter the password, and also receive the same real-time video image of the classroom. We intend to initially design the product to allow up to six separate individuals to call and receive images simultaneously. However, we may expand this number to increase the marketability of our Product. The ability to access this video surveillance via their phone regardless of the time and their location will provide increased peace of mind to parents, which becomes a marketing point for the preschool. Similarly, having a surveillance camera in the classroom in and of itself reduces the likelihood of any inappropriate behavior because teachers and other employees will be conscious of fact that children’s parents could be watching them at any moment.

     

    We are currently refining the design of our Product, which will be integral to its success. We are designing and developing our Product by conducting experiments to improve on quality and cost. These experiments include testing the video and audio quality and range of the device during use. We do not contract the development of our Product; rather, our officer and director, Xu Hai Bo, currently conducts the testing and development of our Product in Malaysia. With the time devoted to our company, he is searching for the lowest priced components available in the market in our efforts to reduce cost. He is also researching the benefits of adding more components to further improve our Product. Finally, he is investigating the possibility of improving our Product's essential qualities, such as versatility and resolution. Refining these qualities will ensure that our Product is practical, affordable, and user-friendly.

     

    Competition

     

    We compete with a number of established manufacturers, importers, and distributors who sell monitoring devices to schools, child/eldercare facilities, and electronic surveillance wholesalers and retailers. These companies enjoy brand recognition which exceeds that of our brand name. We compete with several manufacturers, importers, and distributors who have significantly greater financial, distribution, advertising, and marketing resources than we do, including:

     

    • Bioaccez Controls sells the MAGGIS 3G Wireless security camera, which can be accessed from a mobile phone by making a video call from a 3G / UMTS video-phone. MAGGIS is a video camera that allows the user to listen to and see what is happening in the light or in the dark where it is installed. The camera can be motion-activated, connecting a motion detector at the NC input contact, remaining off unless there is movement, at which time the camera activates and makes a video call to the user. Bioaccez advertises that MAGGIS is quickly installed, easy to use, and supports the UMTS network. It does not require an internet connection for camera use, nor does it require an IP server or extra software to be downloaded to the phone. The mobile phone used must have 3G connection and the ability to make video calls.

    • Shenzhen Ariza Electronic Co., Ltd., sells a 3G GSM alarm with SMS and monitoring functions. The product uses a USIM card and supports the WCDMA 3G network, has a built-in CMOS camera and infrared light, and offers remote control by mobile messaging. It also supports short message service (“SMS”), video call, and voice call alarming, and has 15 wireless alarm sensors.

    6

    • Witura Corporation’s wireless surveillance Camera, 3G EYE, has 3G compatibility. The WT-1041 3G camera is a 1.3 MP with T-flash stored in the multi-media card (“MMC”) & static image format; JPEG, that enables the user to view ‘LIVE’ video images captured from installed cameras or closed-circuit television (“CCTV”) systems. The camera comes bundled with master reset functions and password changes, photography, video and sound recording, loudspeakers, and a high quality recording microphone. The device also has infrared and night vision function capability, enables sharing of up to a maximum of 50 people, and comes complete with a built in lithium battery and external power supply.

    • Multisecu Electronics Co., Ltd., sells a security system that features the ability to connect to the user’s local 3G network, allowing broadcasts to the user’s phone while also allowing the user to remotely control the system while away from their home. Anywhere that the user has a signal on their mobile phone they can control their home security system as well as receive updates and alerts should anything trip the motion sensor or included magnet door/window alarm.

    • Tekstorm Holdings Limited sells a 3G video camera alarm system that uses a USIM card, supporting the CDMA 3G network. The matching CMOS camera and infrared led support 24-hour wireless monitoring. The product has a multimode alarm that can send alarm messages to the user’s mobile phone by SMS, video call, and voice call. A maximum of 15 wireless alarm sensors can be added to the product.

    These competing products offer a wide variety of features, many of which are similar to or more advanced than features we intend to offer. However, we intend to offer a combination of features designed specifically for constant surveillance of childcare and eldercare, whereas these competitors have features designed to maximize their functionality as security devices. We also intend to compete on the basis of quality, brand name recognition, the reduced physical size of our Product, and price. We believe that our success will depend upon our ability to remain competitive in our product areas. The failure to compete successfully in the future could result in a material deterioration of customer loyalty and our image and could have a material adverse effect on our business.

     

    Intellectual Property

     

    Once we determine the final design for our Product, we intend to file a patent on its unique design. We will file for patent pending status as we develop a design for our first device. We will apply for patent protection and/or copyright protection in Asia, the United States, and other jurisdictions.

     

    We intend to aggressively assert our rights under trade secret, unfair competition, trademark and copyright laws to protect our intellectual property, including product design, proprietary manufacturing processes and technologies, product research and concepts and recognized trademarks. These rights are protected through the acquisition of patents and trademark registrations, the maintenance of trade secrets, the development of trade dress, and, where appropriate, litigation against those who are, in our opinion, infringing these rights.

     

    While there can be no assurance that registered trademarks will protect our proprietary information, we intend to assert our intellectual property rights against any infringer. Although any assertion of our rights can result in a substantial cost to, and diversion of effort by, our company, management believes that the protection of our intellectual property rights is a key component of our operating strategy.

     

    Regulatory Matters

     

    We are unaware of and do not anticipate having to expend significant resources to comply with any governmental regulations of the surveillance industry in Asia. We are subject to the laws and regulations of those jurisdictions in which we plan to sell our product, which are generally applicable to business operations, such as business licensing requirements, income taxes and payroll taxes. In general, the development, manufacture, and sale of our Product in Asia is not subject to special regulatory and/or supervisory requirements. The requirements of governmental regulatory agencies regarding frequency usage are met by the manufacturers of the 3G components, which will be utilized in our Product.

    7

     

    Employees

     

    We have no other employees other than our officers and directors. Our President oversees all responsibilities in the areas of corporate administration, business development, and research. We intend to expand our current management to retain skilled directors, officers, and employees with experience relevant to our business focus. Our current management team is highly skilled in technical areas such as researching and developing our product, but not skilled in areas such as marketing our product and business management. Obtaining the assistance of individuals with and in-depth knowledge of operations and markets will allow us to build market share more effectively. We intend on employing sales representatives in China when our product is ready for production and shipping, and in various other countries when we are ready to expand internationally.

     

    Environmental Laws

     

    We have not incurred and do not anticipate incurring any expenses associated with environmental laws.

     

    Item 2. Properties

     

    We do not lease or own any real property. We maintain our operations office in 695-24-05 Desa Kiara, Jalan Damasara, Kuala Lumpur, Malaysia. This office space is being provided free of charge by our officer and director, Xu Hai Bo.

     

    Item 3. Legal Proceedings

     

    We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.

     

    Item 4. Mine Safety Disclosures

     

    Not applicable.

     

    PART II

     

    Item 5. Market for Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities

     

    Market Information

     

    Our common stock is quoted under the symbol “AVTS” on the OTCBB operated by the Financial Industry Regulatory Authority, Inc. (“FINRA”) and the OTCQB operated by OTC Markets Group, Inc.  Few market makers continue to participate in the OTCBB system because of high fees charged by FINRA.  Consequently, market makers that once quoted our shares on the OTCBB system may no longer be posting a quotation for our shares. The criteria for listing on either the OTCBB or OTCQB are similar and include that we remain current in our SEC reporting. Our reporting is presently current and, since inception, we have filed our SEC reports on time.

     

    Only a limited market exists for our securities. There is no assurance that a regular trading market will develop, or if developed, that it will be sustained. Therefore, a shareholder may be unable to resell his securities in our company.

    8

    The following tables set forth the range of high and low prices for our common stock for the each of the periods indicated as reported by the OTCQB. These quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.

     

    Fiscal Year Ending October 31, 2012
    Quarter Ended High $ Low $
    October 31, 2012 N/A N/A
    July 31, 2012 N/A N/A
    April 30, 2012 N/A N/A
    January 31, 2012 N/A N/A

     

    Fiscal Year Ending October 31, 2011
    Quarter Ended High $ Low $
    October 31, 2011 N/A N/A
    July 31, 2011 N/A N/A
    April 30, 2011 N/A N/A
    January 31, 2011 N/A N/A

     

    Penny Stock

     

    The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a market price of less than $5.00, other than securities registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the SEC, that: (a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading; (b) contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation of such duties or other requirements of the securities laws; (c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price; (d) contains a toll-free telephone number for inquiries on disciplinary actions; (e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and (f) contains such other information and is in such form, including language, type size and format, as the SEC shall require by rule or regulation.

     

    The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with (a) bid and offer quotations for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the transaction; (c) the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statement showing the market value of each penny stock held in the customer's account.

     

    In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement as to transactions involving penny stocks, and a signed and dated copy of a written suitability statement.

     

    These disclosure requirements may have the effect of reducing the trading activity for our common stock. Therefore, stockholders may have difficulty selling our securities.

     

    Holders of Our Common Stock

     

    As of October 31, 2012, we had 2,625,000 shares of our common stock issued and outstanding, held by 38 shareholders of record.

    9

     

    Dividends

     

    There are no restrictions in our articles of incorporation or bylaws that prevent us from declaring dividends. The Nevada Revised Statutes, however, do prohibit us from declaring dividends where after giving effect to the distribution of the dividend:

     

    1.we would not be able to pay our debts as they become due in the usual course of business, or;
    2.our total assets would be less than the sum of our total liabilities plus the amount that would be needed to satisfy the rights of shareholders who have preferential rights superior to those receiving the distribution.

     

    We have not declared any dividends and we do not plan to declare any dividends in the foreseeable future.

     

    Securities Authorized for Issuance under Equity Compensation Plans

     

    We do not have any equity compensation plans.

     

    Item 6. Selected Financial Data

     

    A smaller reporting company is not required to provide the information required by this Item.

     

    Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

     

    Forward-Looking Statements

     

    Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements.” These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

     

    Results of Operations for the Years Ended October 31, 2012 and 2011 and for the period from inception (August 12, 2010) to October 31, 2012

     

    We have not earned any revenues since our inception. We are presently in the development stage of our business and we can provide no assurance that we will develop a viable product, or if such product is developed, that we will be able to generate sufficient sales and enter into commercial production.

     

    Our operating expenses for the year ended October 31, 2012 consisted of professional fees in the amount of $20,715, as compared with professional fees in the amount of $37,268 for the year ended October 31, 2011. Our operating expenses for the period from inception (August 12, 2010) through October 31, 2012 consisted mainly of professional fees in the amount of $73,175.

     

    We had a net loss of $20,715 for the year ended October 31, 2012, as compared with a net loss of $37,268 for the year ended October 31, 2011. We had a net loss of $73,175 for the period from inception (August 12, 2010) to October 31, 2012.

    10

     

    Liquidity and Capital Resources

     

    As of October 31, 2012, we had total current assets of $675. Our total current liabilities as of October 31, 2012 were $21,350. Thus, we had a working capital deficit of $20,675 as of October 31, 2012.

     

    Operating activities used $25,459 in cash for the year ended October 31, 2012. Our net loss of $20,715 was the main reason for our negative operating cash flow. Cash flows provided by financing activities during year ended October 31, 2012 consisted of $15,400 as loans from our officer and director.

     

    The success of our business plan beyond the next 12 months is contingent upon us obtaining additional financing. We intend to fund operations through debt and/or equity financing arrangements, which may be insufficient to fund our capital expenditures, working capital, or other cash requirements. We do not have any formal commitments or arrangements for the sales of stock or the advancement or loan of funds at this time. There can be no assurance that such additional financing will be available to us on acceptable terms, or at all.

     

    Going Concern

     

    We have incurred losses since inception, have negative working capital, and have not yet received revenues from sales of products or services. These factors create substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustment that might be necessary if we are unable to continue as a going concern.

     

    Our ability to continue as a going concern is dependent on generating cash from the sale of our common stock and/or obtaining debt financing and attaining future profitable operations. Management’s plans include selling our equity securities and obtaining debt financing to fund our capital requirement and ongoing operations; however, there can be no assurance we will be successful in these efforts.

     

    Purchase or Sale of Equipment

     

    We do not expect to purchase or sell any plant or significant equipment.

     

    Critical Accounting Policies

     

    In December 2001, the SEC requested that all registrants list their most “critical accounting polices” in the Management Discussion and Analysis. The SEC indicated that a “critical accounting policy” is one which is both important to the portrayal of a company’s financial condition and results, and requires management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. We do not believe that any accounting policies currently fit this definition.

     

    Recently Issued Accounting Pronouncements

     

    We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow.

     

    Off Balance Sheet Arrangements

     

    As of October 31, 2012, there were no off balance sheet arrangements.

     

    Item 7A. Quantitative and Qualitative Disclosures About Market Risk

     

    A smaller reporting company is not required to provide the information required by this Item.

    11

     

    Item 8. Financial Statements and Supplementary Data

     

    Index to Financial Statements Required by Article 8 of Regulation S-X:

     

    Audited Financial Statements:
    F-1 Report of Independent Registered Public Accounting Firm
    F-2 Consolidated Balance Sheets as of October 31, 2012  and 2011
    F-3 Statements of Operations for the Years Ended October 31, 2012 and 2011 and period from inception (August 12, 2010) to October 31, 2012
    F-4 Statement of Stockholders’ Equity (Deficit) for period from inception (August 12, 2010) to October 31, 2012
    F-5 Statements of Cash Flows for the Years Ended October 31, 2012 and 2011 and period from inception (August 12, 2010) to October 31, 2012
    F-6 Notes to Financial Statements

    12

     

    Silberstein Ungar, PLLC CPAs and Business Advisors

    Phone (248) 203-0080

    Fax (248) 281-0940

    30600 Telegraph Road, Suite 2175

    Bingham Farms, MI 48025-4586

    www.sucpas.com

     

    Report of Independent Registered Public Accounting Firm

     

    To the Board of Directors of

    Avante Systems, Inc.

    Las Vegas, Nevada

     

    We have audited the accompanying balance sheets of Avante Systems, Inc. (the “Company”) as of October 31, 2012 and 2011 and the related statements of operations, stockholders’ equity (deficit), and cash flows for the years then ended and the period from August 12, 2010 (Date of Inception) through October 31, 2012. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

     

    We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

     

    In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Avante Systems, Inc. as of October 31, 2012 and 2011 and the results of its operations and its cash flows for the years then ended and the period from August 12, 2010 (Date of Inception) through October 31, 2012 in conformity with accounting principles generally accepted in the United States of America.

     

    The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 8 to the financial statements, the Company has negative working capital, has not yet received revenue from sales of products or services, and has incurred losses from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans with regard to these matters are described in Note 8. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

     

    /s/ Silberstein Ungar, PLLC

     

    Bingham Farms, Michigan

    January 22, 2013

     

    F-1

    AVANTE SYSTEMS, INC.

    (A DEVELOPMENT STAGE COMPANY)

    BALANCE SHEETS

    AS OF OCTOBER 31, 2012 AND 2011 

     

      2012  2011
    ASSETS         
    Current Assets         
    Cash and equivalents $0   $10,059 
    Prepaid expenses  675    0 
              
    TOTAL ASSETS $675   $10,059 
              
    LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)         
              
    Current Liabilities         
    Accrued expenses $4,450   $8,519 
    Due to officer  16,900    1,500 
    Total Liabilities  21,350    10,019 
              
    Stockholders’ Equity (Deficit)         
    Common Stock, $.001 par value, 100,000,000 shares authorized, 2,625,000 shares issued and outstanding  2,625    2,625 
    Preferred Stock, $.001 par value, 10,000,000 shares authorized, -0- shares issued and outstanding  0    0 
    Additional paid-in capital  49,875    49,875 
    Deficit accumulated during the development stage  (73,175)   (52,460)
    Total stockholders’ equity (deficit)  (20,675)   40 
              
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $675   $10,059 

     

    See accompanying notes to financial statements. 

    F-2

    AVANTE SYSTEMS, INC.

    (A DEVELOPMENT STAGE COMPANY)

    STATEMENTS OF OPERATIONS

    FOR THE YEARS ENDED OCTOBER 31, 2012 AND 2011

    FOR THE PERIOD FROM AUGUST 12, 2010 (INCEPTION) TO OCTOBER 31, 2012

     

      Year ended
    October 31, 2012
      Year ended
    October 31, 2011
      Period from
    August 12, 2010
    (Inception) to
    October 31, 2012
             
    REVENUES $0   $0   $0 
                   
    OPERATING EXPENSES              
    Organization costs  0    0    320 
    Bank charges  0    0    20 
    Professional fees  20,715    37,268    72,835 
    TOTAL OPERATING EXPENSES  20,715    37,268    73,175 
                   
    LOSS FROM OPERATIONS  (20,715)   (37,268)   (73,175)
                   
    PROVISION FOR INCOME TAXES  0    0    0 
                   
    NET LOSS $(20,715)  $(37,268)  $(73,175)
                   
    NET LOSS PER SHARE: BASIC AND DILUTED $(0.01)  $(0.01)     
                   
    WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED  2,625,000    2,625,000      

     

    See accompanying notes to financial statements.

    F-3

    AVANTE SYSTEMS, INC.

    (A DEVELOPMENT STAGE COMPANY)

    STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)

    FOR THE PERIOD FROM AUGUST 12, 2010 (INCEPTION) TO OCTOBER 31, 2012 

     

      Common stock  Additional
    paid-in
      Deficit
    accumulated
    during the
    development
       
      Shares  Amount  capital  stage  Total
    Issuance of common stock for cash @ $0.02  2,625,000   $2,625   $49,875   $—     $52,500 
                             
    Net loss for the period ended October 31, 2010  —      —      —      (15,192)   (15,192)
                             
    Balance, October 31, 2010  2,625,000    2,625    49,875    (15,192)   37,308 
                             
    Net loss for the year ended October 31, 2011  —      —      —      (37,268)   (37,268)
                             
    Balance, October 31, 2011  2,625,000    2,625    49,875    (52,460)   40 
                             
    Net loss for the year ended October 31, 2012  —      —      —      (20,715)   (20,715)
                             
    Balance, October 31, 2012  2,625,000   $2,625   $49,875   $(73,175)  $(20,675)

     

    See accompanying notes to financial statements.

    F-4

    AVANTE SYSTEMS, INC.

    (A DEVELOPMENT STAGE COMPANY)

    STATEMENTS OF CASH FLOWS

    FOR THE YEARS ENDED OCTOBER 31, 2012 AND 2011

    FOR THE PERIOD FROM AUGUST 12, 2010 (INCEPTION) TO OCTOBER 31, 2012 

     

      Year ended
    October 31, 2012
      Year ended
    October 31, 2011
      Period from
    August 12, 2010
    (Inception) to
    October 31, 2012
    CASH FLOWS FROM OPERATING ACTIVITIES              
    Net loss for the period $(20,715)  $(37,268)  $(73,175)
    Changes in assets and liabilities:              
    (Increase) decrease in prepaid expenses  (675)   4,000    (675)
    Increase (decrease) in accrued expenses  (4,069)   8,519    4,450 
    Net Cash Used by Operating Activities  (25,459)   (24,749)   (69,400)
                   
    CASH FLOWS FROM FINANCING ACTIVITIES              
    Proceeds from sales of common stock  0    0    52,500 
    Proceeds from officer loan  15,400    1,500    16,900 
    Net Cash Provided by Financing Activities  15,400    1,500    69,400 
                   
    Net Increase (Decrease) in Cash and Cash Equivalents  (10,059)   (23,249)   0 
                   
    Cash and cash equivalents, beginning of period  10,059    33,308    0 
    Cash and cash equivalents, end of period $0   $10,059   $0 
                   
    SUPPLEMENTAL CASH FLOW INFORMATION              
    Interest paid $0   $0   $0 
    Income taxes paid $0   $0   $0 

     

     See accompanying notes to financial statements. 

    F-5

    AVANTE SYSTEMS, INC.

    (A DEVELOPMENT STAGE COMPANY)

    NOTES TO THE FINANCIAL STATEMENTS

    OCTOBER 31, 2012

     

    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     

    Nature of Business

    Avante Systems, Inc. (“Avante” and the “Company”) is a development stage company and was incorporated in Nevada on August 12, 2010. The Company was formed for the purpose of developing, manufacturing, and selling a video camera integrated with a 3G mobile phone module specifically for use in schools, child/eldercare facilities, and residences in Asia.

     

    Development Stage Company

    The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development-stage companies. A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, and there has been no significant revenues there from.

     

    Basis of Presentation

    The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

     

    Accounting Basis

    The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting).  The Company has adopted an October 31 fiscal year end.

     

    Use of Estimates

    The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

     

    Cash and Cash Equivalents

    For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

     

    Fair Value of Financial Instruments

    Avante’s financial instruments consist of cash and cash equivalents, prepaid expenses, accrued expenses and an amount due to an officer. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

     

    Income Taxes

    Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

      

    F-6

    AVANTE SYSTEMS, INC.

    (A DEVELOPMENT STAGE COMPANY)

    NOTES TO THE FINANCIAL STATEMENTS

    OCTOBER 31, 2012

     

    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     

    Revenue Recognition

    The Company will recognize revenue when products are fully delivered or services have been provided and collection is reasonably assured.

     

    Loss Per Common Share

    Basic loss per share is calculated using the weighted-average number of common shares outstanding during each reporting period. Diluted loss per share includes potentially dilutive securities such as outstanding options and warrants, using various methods such as the treasury stock or modified treasury stock method in the determination of dilutive shares outstanding during each reporting period. The Company does not have any potentially dilutive instruments.

     

    Stock-Based Compensation

    Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options.

     

    As of October 31, 2012, the Company has not issued any stock-based payments to its employees.

     

    Recent Accounting Pronouncements

    Avante does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

     

    NOTE 2 – PREPAID EXPENSES

     

    Prepaid expenses at October 31, 2012 consisted of an advance paid to the Company’s attorney for services to be rendered for periods after the Company’s year-end.

     

    NOTE 3 – ACCRUED EXPENSES

     

    Accrued expenses consisted of the following at October 31, 2012 and 2011:

     

      2012  2011
    Audit fees $3,750   $4,000 
    Legal fees  0    3,079 
    Transfer agent fees  700    1,440 
    Total Accrued Expenses $4,450   $8,519 

     

    NOTE 4 – DUE TO OFFICER

     

    During the year ended October 31, 2011, an officer and shareholder loaned the Company $1,500 to help fund operations. The officer loaned an additional $15,400 during the year ended October 31, 2012. The balance due to the officer was $16,900 and $1,500 as of October 31, 2012 and 2011, respectively. The loans are non-interest bearing, unsecured and due upon demand.

     

    F-7

    AVANTE SYSTEMS, INC.

    (A DEVELOPMENT STAGE COMPANY)

    NOTES TO THE FINANCIAL STATEMENTS

    OCTOBER 31, 2012

     

    NOTE 5 – CAPITAL STOCK

     

    The Company has 100,000,000 shares of $0.001 par value common stock authorized and 10,000,000 shares of $0.001 par value preferred stock authorized.

     

    During the period ended October 31, 2010, the Company issued 2,625,000 shares of common stock at $0.02 per share for total cash proceeds of $52,500.

     

    There were no additional shares of common stock issued during the years ended October 31, 2012 and 2011, respectively.

     

    The Company has 2,625,000 shares of common stock issued and outstanding as of October 31, 2012. There are no shares of preferred stock issued and outstanding as of October 31, 2012.

     

    NOTE 6 – COMMITMENTS AND CONTINGENCIES

     

    Avante neither owns nor leases any real or personal property. An officer has provided office space without charge. There is no obligation for the officer to continue this arrangement. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.

     

    NOTE 7 – INCOME TAXES

     

    For the period ended October 31, 2012, Avante has incurred net losses and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $73,175 at October 31, 2012, and will expire beginning in the year 2031.

     

    The provision for Federal income tax consists of the following for the periods ended October 31:

     

      2012  2011
    Federal income tax benefit attributable to:         
    Current operations $7,043   $12,671 
    Less: valuation allowance  (7,043)   (12,671)
    Net provision for Federal income taxes $0   $0 

     

    The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

     

      2012  2011
    Deferred tax asset attributable to:         
    Net operating loss carryover $24,879   $17,836 
    Less: valuation allowance  (24,879)   (17,836)
    Net deferred tax asset $0   $0 

     

    Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $73,175 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.

     

    F-8

    AVANTE SYSTEMS, INC.

    (A DEVELOPMENT STAGE COMPANY)

    NOTES TO THE FINANCIAL STATEMENTS

    OCTOBER 31, 2012

     

    NOTE 8 – LIQUIDITY AND GOING CONCERN

     

    Avante has negative working capital, has not yet received revenues from sales of products or services, and has incurred operating losses since its inception. These factors create substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.

     

    The ability of Avante to continue as a going concern is dependent on the Company generating cash from the sale of its common stock and/or obtaining debt financing and attaining future profitable operations. Management’s plans include selling its equity securities and obtaining debt financing to fund its capital requirement and ongoing operations; however, there can be no assurance the Company will be successful in these efforts.

     

    NOTE 9 – SUBSEQUENT EVENTS

     

    In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to October 31, 2012 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements.

     

    F-9

     

    Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

     

    No events occurred requiring disclosure under Item 304 of Regulation S-K during the fiscal year ending October 31, 2012.

     

    Item 9A. Controls and Procedures

     

    As required by Rule 13a-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this annual report, being October 31, 2012. This evaluation was carried out under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer.

     

    Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our company’s reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

     

    Based upon that evaluation, including our Chief Executive Officer and Chief Financial Officer, we have concluded that our disclosure controls and procedures were ineffective as of the end of the period covered by this annual report.

     

    Management’s Report on Internal Control over Financial Reporting

     

    Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934). Management has assessed the effectiveness of our internal control over financial reporting as of October 31, 2012 based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. As a result of this assessment, management concluded that, as of October 31, 2012, our internal control over financial reporting was not effective. Our management identified the following material weaknesses in our internal control over financial reporting, which are indicative of many small companies with small staff: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.

     

    We plan to take steps to enhance and improve the design of our internal control over financial reporting. During the period covered by this annual report on Form 10-K, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we hope to implement the following changes during our fiscal year ending October 31, 2013: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out in (i) and (ii) are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.

     

    This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to an exemption for non-accelerated filers set forth in Section 989G of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

     

    Item 9B. Other Information

     

    None

    13

    PART III

     

    Item 10. Directors, Executive Officers and Corporate Governance

     

    The following information sets forth the names of our current directors and executive officers, their ages as of October 31, 2012 and their present positions.

     

    Name Age Position Held with the Company

    Xu Hai Bo

    Tian Bei W. Rd.

    Yung Guang Tian Di Ming Xing

    Ge, Unit 1503, Shenzhen, China

    32 President, Chief Executive Officer, Principal Executive Officer, Chief Financial Officer, Principal Financial Officer, Principal Accounting Officer, and Director

    Ran Hong Dan

    Tian Bei W. Rd.

    Yung Guang Tian Di Ming Xing

    Ge, Unit 1503, Shenzhen, China

    29 Director

     

     

     

     

    Set forth below is a brief description of the background and business experience of our executive officer and Directors.

     

    Xu Hai Bo is our President, Chief Executive Officer, Principal Executive Officer, Chief Financial Officer, Principal Financial Officer, Principal Accounting President and Director. Mr. Bo received his Bachelor of Science degree from Chengdu Institue of Technology located in Chengdu, Sichuan, China. Since 2002 he has been employed as an engineer for Pakka Co., Ltd.

     

    Ran Hong Dan is our Director. In 2004, Mr. Dan graduated with a Bachelor of Science degree from Chengdu Institute of Technology located in Chengdu, Sichuan, China. Since 2002 he has been employed as an engineer for Pakka Co., Ltd.

     

    Term of Office

     

    Our directors are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with our bylaws. Our officers are appointed by our board of directors and hold office until removed by the board.

     

    Significant Employees

     

    We do not currently have any significant employees aside from Xu Hai Bo.

     

    Family Relationships

     

    There are no family relationships between or among the directors, executive officers or persons nominated or chosen by us to become directors or executive officers.

     

    Involvement in Certain Legal Proceedings

     

    To the best of our knowledge, during the past ten years, none of the following occurred with respect to a present or former director, executive officer, or employee: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

    14

    Committees of the Board

     

    Our company currently does not have nominating, compensation or audit committees or committees performing similar functions nor does our company have a written nominating, compensation or audit committee charter. Our directors believe that it is not necessary to have such committees, at this time, because the functions of such committees can be adequately performed by the board of directors.

     

    Our company does not have any defined policy or procedural requirements for shareholders to submit recommendations or nominations for directors. The board of directors believes that, given the stage of our development, a specific nominating policy would be premature and of little assistance until our business operations develop to a more advanced level. Our company does not currently have any specific or minimum criteria for the election of nominees to the board of directors and we do not have any specific process or procedure for evaluating such nominees. The board of directors will assess all candidates, whether submitted by management or shareholders, and make recommendations for election or appointment.

     

    A shareholder who wishes to communicate with our board of directors may do so by directing a written request addressed to our President and director, Tee Kai Shen, at the address appearing on the first page of this annual report.

     

    Code of Ethics

     

    As of October 31, 2012, we had not adopted a Code of Ethics for Financial Executives, which would include our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

     

    Item 11. Executive Compensation

     

    Summary Compensation Table

     

    The table below summarizes all compensation awarded to, earned by, or paid to both to our officers and to our directors for all services rendered in all capacities to us for our fiscal years ended October 31, 2012 and 2011.

     

    SUMMARY COMPENSATION TABLE

    Name

    and

    principal

    position

    Year Salary ($)

    Bonus

    ($)

     

    Stock

    Awards

    ($)

    Option

    Awards

    ($)

    Non-Equity

    Incentive Plan

    Compensation

    ($)

    Nonqualified

    Deferred

    Compensation

    Earnings ($)

    All Other

    Compensation

    ($)

    Total

    ($)

    Xu Hai Bo, President, Chief Executive Officer, Principal Executive Officer,

    Chief Financial Officer, Principal Financial Officer,

    Principal Accounting Officer, and Director

    2012

    2011

     

    0

    0

     

    0

    0

     

    0

    0

     

    0

    0

     

    0

    0

     

    0

    0

     

    0

    0

     

    0

    0

     

     

    Narrative Disclosure to the Summary Compensation Table

     

    We have not entered into any employment agreement or consulting agreement with our executive officers. There are no arrangements or plans in which we provide pension, retirement or similar benefits for executive officers.

     

    Although we do not currently compensate our officers, we reserve the right to provide compensation at some time in the future. Our decision to compensate officers depends on the availability of our cash resources with respect to the need for cash to further our business purposes.

     

    Stock Option Grants

     

    We have not granted any stock options to the executive officers or directors since our inception.

    15

     

    Outstanding Equity Awards at Fiscal Year-End

     

    The table below summarizes all unexercised options, stock that has not vested, and equity incentive plan awards for each named executive officer as of October 31, 2012.

     

    OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END
    OPTION AWARDS STOCK AWARDS

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Name

     

     

     

     

     

     

     

     

     

    Number of

    Securities

    Underlying

    Unexercised

    Options

    (#)

    Exercisable

     

     

     

     

     

     

     

     

     

    Number of

    Securities

    Underlying

    Unexercised

    Options

    (#)

    Unexercisable

     

     

     

     

     

    Equity

    Incentive

    Plan

    Awards:

    Number of

    Securities

    Underlying

    Unexercised

    Unearned

    Options

    (#)

     

     

     

     

     

     

     

     

     

     

     

     

    Option

    Exercise

    Price

    ($)

     

     

     

     

     

     

     

     

     

     

     

     

    Option

    Expiration

    Date

     

     

     

     

     

     

    Number

    of

    Shares

    or Units

    of

    Stock That

    Have

    Not

    Vested

    (#)

     

     

     

    Market

    Value

    of

    Shares

    or

    Units

    of

    Stock

    That

    Have

    Not

    Vested

    ($)

     

    Equity

    Incentive

    Plan

    Awards:

    Number

    of

    Unearned

    Shares,

    Units or

    Other

    Rights

    That Have

    Not

    Vested

    (#)

    Equity

    Incentive

    Plan

    Awards:

    Market or

    Payout

    Value of

    Unearned

    Shares,

    Units or

    Other

    Rights

    That

    Have Not

    Vested

    (#)

    Xu Hai Bo - - - - - - - - -

     

    Director Compensation

     

    The table below summarizes all compensation of our directors as of October 31, 2012.

     

    DIRECTOR COMPENSATION

    Name

    Fees Earned or

    Paid in

    Cash

    ($)

     

     

    Stock Awards

    ($)

     

     

    Option Awards

    ($)

    Non-Equity

    Incentive

    Plan

    Compensation

    ($)

    Non-Qualified

    Deferred

    Compensation

    Earnings

    ($)

     

    All

    Other

    Compensation

    ($)

     

     

     

    Total

    ($)

    Xu Hai Bo - - - - - - -

     

    Narrative Disclosure to the Director Compensation Table

     

    We do not pay any compensation to our directors at this time. However, we reserve the right to compensate our directors in the future with cash, stock, options, or some combination of the above.

     

    Stock Option Plans

     

    We did not have a stock option plan in place as of October 31, 2012.

    16

     

    Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

     

    The following table sets forth, as of January 23, 2013, the beneficial ownership of our common stock by each executive officer and director, by each person known by us to beneficially own more than 5% of the our common stock and by the executive officers and directors as a group:

     

    Except as otherwise indicated, all Shares are owned directly and the percentage shown is based on 2,625,000 Shares of Common Stock issued and outstanding as of January 23, 2012.

     

    Name and Address of Beneficial Owners of Common Stock1 Title of Class Amount and Nature of
    Beneficial Ownership
    % of Common Stock2

    Xu Hai Bo

    695-24-05 Desa Kiara,

    Jalan Damasara

    Kuala Lumpur, Malaysia

     

    Common Stock

     

    637,500 Shares

     

    24%

    Ran Hong Dan

    695-24-05 Desa Kiara,

    Jalan Damasara

    Kuala Lumpur, Malaysia

    Common Stock 637,500 Shares 24%
    DIRECTORS AND OFFICERS – TOTAL 1,275,000 Shares 48%
     
    5% SHAREHOLDERS
    NONE Common Stock NONE NONE

     

    (1) As used in this table, "beneficial ownership" means the sole or shared power to vote, or to direct the voting of, a security, or the sole or shared investment power with respect to a security (i.e., the power to dispose of, or to direct the disposition of, a security). In addition, for purposes of this table, a person is deemed, as of any date, to have "beneficial ownership" of any security that such person has the right to acquire within 60 days after such date.

     

    Item 13. Certain Relationships and Related Transactions, and Director Independence

     

    None of our directors or executive officers, nor any proposed nominee for election as a director, nor any person who beneficially owns, directly or indirectly, shares carrying more than 5% of the voting rights attached to all of our outstanding shares, nor any members of the immediate family (including spouse, parents, children, siblings, and in-laws) of any of the foregoing persons has any material interest, direct or indirect, in any transaction over the last two years or in any presently proposed transaction which, in either case, has or will materially affect us.

     

    As of the date of this annual report, our common stock is traded on the OTC Bulletin Board (the “Bulletin Board”). The Bulletin Board does not impose on us standards relating to director independence or the makeup of committees with independent directors, or provide definitions of independence.

     

    Item 14. Principal Accounting Fees and Services

     

    Below is the table of Audit Fees (amounts in US$) billed by our auditor in connection with the audit of the Company’s annual financial statements for the years ended:

     

    Financial Statements for the Year Ended October 31 Audit Services Audit Related Fees Tax Fees Other Fees
    2012 $8,250 $0 $0 $0
    2011 $9,500 $0 $0 $0

     

    17

     

    PART IV

     

    Item 15. Exhibits, Financial Statements Schedules

     

    (a) Financial Statements and Schedules

     

    The following financial statements and schedules listed below are included in this Form 10-K.

     

    Financial Statements (See Item 8)

     

    (b) Exhibits

     

    Exhibit Number Description
    3.1 Articles of Incorporation, as amended (1)
    3.2 Bylaws, as amended (1)
    23.1 Consent of Maddox Ungar Silberstein, PLLC
    31.1 Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    31.2 Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    32.1 Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    101** The following materials from the Company’s Annual Report on Form 10-K for the year ended October 31, 2010 formatted in Extensible Business Reporting Language (XBRL).

     

    1Incorporated by reference to the Registration Statement on Form S-1 filed on December 21, 2010.

     

    18

     

    SIGNATURES

     

    Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

     

    Avante Systems, Inc.

     

    By: /s/ Xu Hai Bo

    Xu Hai Bo

    President, Chief Executive Officer, Principal Executive Officer,

    Chief Financial Officer, Principal Financial Officer, Principal Accounting Officer and Director

     

    January 25, 2013

     

    Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

     

    By: /s/ Xu Hai Bo

    Xu Hai Bo

    President, Chief Executive Officer, Principal Executive Officer,

    Chief Financial Officer, Principal Financial Officer, Principal Accounting Officer and Director

     

    January 25, 2013

     

    By: /s/ Ran Hong Dan

    Ran Hong Dan

    Director

     

    January 25, 2013

     

    19

    EX-31.1 2 ex31_1.htm EXHIBIT 31.1

    CERTIFICATIONS

     

    I, Xu Hai Bo, certify that;

     

    1. I have reviewed this annual report on Form 10-K for the year ended October 31, 2012 of Avante Systems, Inc (the “registrant”);

     

    2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

     

    3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

     

    4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

     

    a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

     

    b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

     

    c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

     

    d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

     

    5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

     

    a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

     

    b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

     

    Date: January 25, 2013

     

    /s/ Xu Hai Bo

    By: Xu Hai Bo

    Title: Chief Executive Officer

    EX-31.2 3 ex31_2.htm EXHIBIT 31.2

    CERTIFICATIONS

     

    I, Xu Hai Bo, certify that;

     

    1. I have reviewed this annual report on Form 10-K for the year ended October 31, 2012 of Avante Systems, Inc (the “registrant”);

     

    2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

     

    3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

     

    4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

     

    a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

     

    b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

     

    c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

     

    d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

     

    5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

     

    a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

     

    b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

     

    Date: January 25, 2013

     

    /s/ Xu Hai Bo

    By: Xu Hai Bo

    Title: Chief Financial Officer

    EX-32.1 4 ex32_1.htm EXHIBIT 32.1

    CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND

    CHIEF FINANCIAL OFFICER

    PURSUANT TO

    18 U.S.C. SECTION 1350,

    AS ADOPTED PURSUANT TO

    SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

     

    In connection with the annual Report of Avante Systems, Inc (the “Company”) on Form 10-K for the year ended October 31, 2012 filed with the Securities and Exchange Commission (the “Report”), I, Xu Hai Bo, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

     

    1.The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

     

    2.The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and the consolidated result of operations of the Company for the periods presented.

     

    By: /s/ Xu Hai Bo
    Name: Xu Hai Bo
    Title: Principal Executive Officer, Principal Financial Officer and Director
    Date: January 25, 2013

     

     

     

     

     

     

    This certification has been furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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    ACCRUED EXPENSES
    12 Months Ended
    Oct. 31, 2012
    Notes to Financial Statements  
    ACCRUED EXPENSES

    Accrued expenses consisted of the following at October 31, 2012 and 2011:

     

      2012   2011
    Audit fees $ 3,750     $ 4,000  
    Legal fees   0       3,079  
    Transfer agent fees   700       1,440  
    Total Accrued Expenses $ 4,450     $ 8,519  

     

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    PREPAID EXPENSES
    12 Months Ended
    Oct. 31, 2012
    Notes to Financial Statements  
    PREPAID EXPENSES

    Prepaid expenses at October 31, 2012 consisted of an advance paid to the Company’s attorney for services to be rendered for periods after the Company’s year-end.

    XML 15 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
    Balance Sheets (USD $)
    Oct. 31, 2012
    Oct. 31, 2011
    Current Assets    
    Cash and equivalents $ 0 $ 10,059
    Prepaid expenses 675 0
    TOTAL ASSETS 675 10,059
    LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)    
    Current Liabilities 21,350 10,019
    Accrued expenses 4,450 8,519
    Due to officer 16,900 1,500
    Total Liabilities 21,350 10,019
    Stockholders Equity (Deficit)    
    Common Stock, $.001 par value, 100,000,000 shares authorized, 2,625,000 shares issued and outstanding 2,625 2,625
    Preferred Stock, $.001 par value, 10,000,000 shares authorized, -0- shares issued and outstanding 0 0
    Additional paid-in capital 49,875 49,875
    Deficit accumulated during the development stage (73,175) (52,460)
    Total stockholders equity (deficit) (20,675) 40
    TOTAL LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT) $ 675 $ 10,059
    XML 16 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
    Statements of Cash Flows (USD $)
    3 Months Ended 12 Months Ended 27 Months Ended
    Oct. 31, 2010
    Oct. 31, 2012
    Oct. 31, 2011
    Oct. 31, 2012
    CASH FLOWS FROM OPERATING ACTIVITIES        
    Net loss for the period $ (15,192) $ (20,715) $ (37,268) $ (73,175)
    Changes in assets and liabilities:        
    (Increase) decrease in prepaid expenses   (675) 4,000 (675)
    Increase (decrease) in accrued expenses   (4,069) 8,519 4,450
    Net Cash Used by Operating Activities   (25,459) (24,749) (69,400)
    CASH FLOWS FROM FINANCING ACTIVITIES        
    Proceeds from sales of common stock   0 0 52,500
    Proceeds from officer loan   15,400 1,500 16,900
    Net Cash Provided by Financing Activities   15,400 1,500 69,400
    Net Increase (Decrease) in Cash and Cash Equivalents   (10,059) (23,249) 0
    Cash and cash equivalents, beginning of period 0 10,059 33,308 0
    Cash and cash equivalents, end of period 33,308 0 10,059 0
    SUPPLEMENTAL CASH FLOW INFORMATION        
    Interest paid   0 0 0
    Income taxes paid   $ 0 $ 0 $ 0
    XML 17 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
    INCOME TAXES - FEDERAL INCOME TAX (Details) (USD $)
    12 Months Ended
    Oct. 31, 2012
    Oct. 31, 2011
    Federal income tax benefit attributable to:    
    Current operations $ 7,043 $ 12,671
    Less: valuation allowance (7,043) (12,671)
    Net provision for Federal income taxes $ 0 $ 0
    XML 18 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
    INCOME TAXES (Details Narrative) (USD $)
    12 Months Ended
    Oct. 31, 2012
    Income Tax Disclosure [Abstract]  
    Operating Loss Carry Forward $ 73,175
    Carryforward Expiration Date Jan. 01, 2031
    Cumulative tax effect expected rate 34.00%
    XML 19 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.1.0.1 * */ var moreDialog = null; var Show = { Default:'raw', more:function( obj ){ var bClosed = false; if( moreDialog != null ) { try { bClosed = moreDialog.closed; } catch(e) { //Per article at http://support.microsoft.com/kb/244375 there is a problem with the WebBrowser control // that somtimes causes it to throw when checking the closed property on a child window that has been //closed. So if the exception occurs we assume the window is closed and move on from there. bClosed = true; } if( !bClosed ){ moreDialog.close(); } } obj = obj.parentNode.getElementsByTagName( 'pre' )[0]; var hasHtmlTag = false; var objHtml = ''; var raw = ''; //Check for raw HTML var nodes = obj.getElementsByTagName( '*' ); if( nodes.length ){ objHtml = obj.innerHTML; }else{ if( obj.innerText ){ raw = obj.innerText; }else{ raw = obj.textContent; } var matches = raw.match( /<\/?[a-zA-Z]{1}\w*[^>]*>/g ); if( matches && matches.length ){ objHtml = raw; //If there is an html node it will be 1st or 2nd, // but we can check a little further. var n = Math.min( 5, matches.length ); for( var i = 0; i < n; i++ ){ var el = matches[ i ].toString().toLowerCase(); if( el.indexOf( '= 0 ){ hasHtmlTag = true; break; } } } } if( objHtml.length ){ var html = ''; if( hasHtmlTag ){ html = objHtml; }else{ html = ''+ "\n"+''+ "\n"+' Report Preview Details'+ "\n"+' '+ "\n"+''+ "\n"+''+ objHtml + "\n"+''+ "\n"+''; } moreDialog = window.open("","More","width=700,height=650,status=0,resizable=yes,menubar=no,toolbar=no,scrollbars=yes"); moreDialog.document.write( html ); moreDialog.document.close(); if( !hasHtmlTag ){ moreDialog.document.body.style.margin = '0.5em'; } } else { //default view logic var lines = raw.split( "\n" ); var longest = 0; if( lines.length > 0 ){ for( var p = 0; p < lines.length; p++ ){ longest = Math.max( longest, lines[p].length ); } } //Decide on the default view this.Default = longest < 120 ? 'raw' : 'formatted'; //Build formatted view var text = raw.split( "\n\n" ) >= raw.split( "\r\n\r\n" ) ? raw.split( "\n\n" ) : raw.split( "\r\n\r\n" ) ; var formatted = ''; if( text.length > 0 ){ if( text.length == 1 ){ text = raw.split( "\n" ) >= raw.split( "\r\n" ) ? raw.split( "\n" ) : raw.split( "\r\n" ) ; formatted = "

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    XML 20 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    12 Months Ended
    Oct. 31, 2012
    Accounting Policies [Abstract]  
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    Nature of Business

    Avante Systems, Inc. (“Avante” and the “Company”) is a development stage company and was incorporated in Nevada on August 12, 2010. The Company was formed for the purpose of developing, manufacturing, and selling a video camera integrated with a 3G mobile phone module specifically for use in schools, child/eldercare facilities, and residences in Asia.

     

    Development Stage Company

    The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development-stage companies. A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, and there has been no significant revenues there from.

     

    Basis of Presentation

    The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

     

    Accounting Basis

    The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted an October 31 fiscal year end.

     

    Use of Estimates

    The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

     

    Cash and Cash Equivalents

    For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

     

    Fair Value of Financial Instruments

    Avante’s financial instruments consist of cash and cash equivalents, prepaid expenses, accrued expenses and an amount due to an officer. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

     

    Income Taxes

    Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

     

    Revenue Recognition

    The Company will recognize revenue when products are fully delivered or services have been provided and collection is reasonably assured.

     

    Loss Per Common Share

    Basic loss per share is calculated using the weighted-average number of common shares outstanding during each reporting period. Diluted loss per share includes potentially dilutive securities such as outstanding options and warrants, using various methods such as the treasury stock or modified treasury stock method in the determination of dilutive shares outstanding during each reporting period. The Company does not have any potentially dilutive instruments.

     

    Stock-Based Compensation

    Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options.

     

    As of October 31, 2012, the Company has not issued any stock-based payments to its employees.

     

    Recent Accounting Pronouncements

    Avante does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

    XML 21 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
    Balance Sheets (Parenthetical) (USD $)
    Oct. 31, 2012
    Oct. 31, 2011
    Statement of Financial Position [Abstract]    
    Common Stock, Par Value $ 0.001 $ 0.001
    Common Stock, Shares Authorized 100,000,000 100,000,000
    Common Stock, Issued 2,625,000 2,625,000
    Preferred Stock, Par Value $ 0.001 $ 0.001
    Preferred Stock, Shares Authorized 10,000,000 10,000,000
    Preferred Stock, Issued 0 0
    XML 22 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
    ACCRUED EXPENSES (Tables)
    12 Months Ended
    Oct. 31, 2012
    Notes to Financial Statements  
    ACCRUED EXPENSES
      2012   2011
    Audit fees $ 3,750     $ 4,000  
    Legal fees   0       3,079  
    Transfer agent fees   700       1,440  
    Total Accrued Expenses $ 4,450     $ 8,519  
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    Document and Entity Information (USD $)
    12 Months Ended
    Oct. 31, 2012
    Jan. 22, 2013
    Document And Entity Information    
    Entity Registrant Name Avante Systems, Inc.  
    Entity Central Index Key 0001504388  
    Document Type 10-K  
    Document Period End Date Oct. 31, 2012  
    Amendment Flag false  
    Current Fiscal Year End Date --10-31  
    Is Entity a Well-known Seasoned Issuer? No  
    Is Entity a Voluntary Filer? No  
    Is Entity's Reporting Status Current? Yes  
    Entity Filer Category Smaller Reporting Company  
    Entity Public Float   $ 0
    Entity Common Stock, Shares Outstanding   2,625,000
    Document Fiscal Period Focus FY  
    Document Fiscal Year Focus 2012  
    XML 25 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
    INCOME TAXES (Tables)
    12 Months Ended
    Oct. 31, 2012
    Income Tax Disclosure [Abstract]  
    Federal Income Tax
      2012   2011
    Federal income tax benefit attributable to:              
    Current operations $ 7,043     $ 12,671  
    Less: valuation allowance   (7,043 )     (12,671 )
    Net provision for Federal income taxes $ 0     $ 0  
    Deferred Tax Asset
      2012   2011
    Deferred tax asset attributable to:              
    Net operating loss carryover $ 24,879     $ 17,836  
    Less: valuation allowance   (24,879 )     (17,836 )
    Net deferred tax asset $ 0     $ 0  
    XML 26 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
    Statements of Operations (USD $)
    12 Months Ended 27 Months Ended
    Oct. 31, 2012
    Oct. 31, 2011
    Oct. 31, 2012
    Income Statement [Abstract]      
    REVENUES $ 0 $ 0 $ 0
    OPERATING EXPENSES      
    Organization costs 0 0 320
    Bank charges 0 0 20
    Professional fees 20,715 37,268 72,835
    TOTAL OPERATING EXPENSES 20,715 37,268 73,175
    LOSS FROM OPERATIONS (20,715) (37,268) (73,175)
    PROVISION FOR INCOME TAXES 0 0 0
    NET LOSS $ (20,715) $ (37,268) $ (73,175)
    NET LOSS PER SHARE: BASIC AND DILUTED $ (0.01) $ (0.01)  
    WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED 2,625,000 2,625,000  
    XML 27 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
    COMMITMENTS AND CONTINGENCIES
    12 Months Ended
    Oct. 31, 2012
    Commitments and Contingencies Disclosure [Abstract]  
    COMMITMENTS AND CONTINGENCIES

    Avante neither owns nor leases any real or personal property. An officer has provided office space without charge. There is no obligation for the officer to continue this arrangement. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.

    XML 28 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
    CAPITAL STOCK
    12 Months Ended
    Oct. 31, 2012
    Equity [Abstract]  
    CAPITAL STOCK

    The Company has 100,000,000 shares of $0.001 par value common stock authorized and 10,000,000 shares of $0.001 par value preferred stock authorized.

     

    During the period ended October 31, 2010, the Company issued 2,625,000 shares of common stock at $0.02 per share for total cash proceeds of $52,500.

     

    There were no additional shares of common stock issued during the years ended October 31, 2012 and 2011, respectively.

     

    The Company has 2,625,000 shares of common stock issued and outstanding as of October 31, 2012. There are no shares of preferred stock issued and outstanding as of October 31, 2012.

    XML 29 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
    INCOME TAXES - Deferred Tax Asset (Details) (USD $)
    Oct. 31, 2012
    Oct. 31, 2011
    Deferred tax asset attributable to:    
    Net operating loss carryover $ 24,879 $ 17,836
    Less: valuation allowance (24,879) (17,836)
    Net deferred tax asset $ 0 $ 0
    XML 30 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
    ACCRUED EXPENSES - ACCRUED EXPENSES (Details) (USD $)
    Oct. 31, 2012
    Oct. 31, 2011
    Notes to Financial Statements    
    Audit fees $ 3,750 $ 4,000
    Legal fees 0 3,079
    Transfer agent fees 700 1,440
    Total Accrued Expenses $ 4,450 $ 8,519
    XML 31 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
    SUBSEQUENT EVENTS
    12 Months Ended
    Oct. 31, 2012
    Subsequent Events [Abstract]  
    SUBSEQUENT EVENTS

    In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to October 31, 2012 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements.

    XML 32 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
    INCOME TAXES
    12 Months Ended
    Oct. 31, 2012
    Income Tax Disclosure [Abstract]  
    INCOME TAXES

    For the period ended October 31, 2012, Avante has incurred net losses and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $73,175 at October 31, 2012, and will expire beginning in the year 2031.

     

    The provision for Federal income tax consists of the following for the periods ended October 31:

     

      2012   2011
    Federal income tax benefit attributable to:              
    Current operations $ 7,043     $ 12,671  
    Less: valuation allowance   (7,043 )     (12,671 )
    Net provision for Federal income taxes $ 0     $ 0  

     

    The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

     

      2012   2011
    Deferred tax asset attributable to:              
    Net operating loss carryover $ 24,879     $ 17,836  
    Less: valuation allowance   (24,879 )     (17,836 )
    Net deferred tax asset $ 0     $ 0  

     

    Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $73,175 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.

    XML 33 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
    LIQUIDITY AND GOING CONCERN
    12 Months Ended
    Oct. 31, 2012
    Organization, Consolidation and Presentation of Financial Statements [Abstract]  
    LIQUIDITY AND GOING CONCERN

    Avante has negative working capital, has not yet received revenues from sales of products or services, and has incurred operating losses since its inception. These factors create substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.

     

    The ability of Avante to continue as a going concern is dependent on the Company generating cash from the sale of its common stock and/or obtaining debt financing and attaining future profitable operations. Management’s plans include selling its equity securities and obtaining debt financing to fund its capital requirement and ongoing operations; however, there can be no assurance the Company will be successful in these efforts.

    XML 34 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
    12 Months Ended
    Oct. 31, 2012
    Accounting Policies [Abstract]  
    Nature of Business

    Nature of Business

    Avante Systems, Inc. (“Avante” and the “Company”) is a development stage company and was incorporated in Nevada on August 12, 2010. The Company was formed for the purpose of developing, manufacturing, and selling a video camera integrated with a 3G mobile phone module specifically for use in schools, child/eldercare facilities, and residences in Asia.

    Development Stage Company

    Development Stage Company

    The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development-stage companies. A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, and there has been no significant revenues there from.

    Basis of Presentation

    Basis of Presentation

    The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

    Accounting Basis

    Accounting Basis

    The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted an October 31 fiscal year end.

    Use of Estimates

    Use of Estimates

    The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

    Cash and Cash Equivalents

    Cash and Cash Equivalents

    For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

    Fair Value of Financial Instruments

    Fair Value of Financial Instruments

    Avante’s financial instruments consist of cash and cash equivalents, prepaid expenses, accrued expenses and an amount due to an officer. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

    Income Taxes

    Income Taxes

    Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

    Loss Per Common Share

    Loss Per Common Share

    Basic loss per share is calculated using the weighted-average number of common shares outstanding during each reporting period. Diluted loss per share includes potentially dilutive securities such as outstanding options and warrants, using various methods such as the treasury stock or modified treasury stock method in the determination of dilutive shares outstanding during each reporting period. The Company does not have any potentially dilutive instruments.

    Stock-Based Compensation

    Stock-Based Compensation

    Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options.

     

    As of October 31, 2012, the Company has not issued any stock-based payments to its employees.

    Recent Accounting Pronouncements

    Recent Accounting Pronouncements

    Avante does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

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    CAPITAL STOCK (Details Narrative) (USD $)
    12 Months Ended 27 Months Ended
    Oct. 31, 2012
    Oct. 31, 2011
    Oct. 31, 2012
    Equity [Abstract]      
    Common Stock Shares Authorized 100,000,000 100,000,000 100,000,000
    Common Stock Par Value $ 0.001 $ 0.001 $ 0.001
    Preferred Stock Shares Authorized 10,000,000 10,000,000 10,000,000
    Preferred Stock Par Value $ 0.001 $ 0.001 $ 0.001
    Common Stock Shares Issued 2,625,000 2,625,000 2,625,000
    Common Stock Stated Value, Price Per Share Sold 0.02   0.02
    Proceeds From Issuance of Common Stock $ 0 $ 0 $ 52,500
    Preferred Stock Shares Issued 0 0 0
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    Shareholders Equity (USD $)
    Common Stock
    Additional Paid-In Capital
    Deficit accumulated during the development stage
    Total
    Beginning balance, amount at Aug. 11, 2010        
    Issuance of common stock for cash, shares 2,625,000      
    Issuance of common stock for cash, amount $ 2,625 $ 49,875   $ 52,500
    Net loss for the period     (15,192) (15,192)
    Ending balance, amount at Oct. 31, 2010 2,625 49,875 (15,192) 37,308
    Ending balance, shares at Oct. 31, 2010 2,625,000      
    Net loss for the period     (37,268) (37,268)
    Ending balance, amount at Oct. 31, 2011 2,625 49,875 (52,460) 40
    Ending balance, shares at Oct. 31, 2011 2,625,000      
    Net loss for the period     (20,715) (20,715)
    Ending balance, amount at Oct. 31, 2012 $ 2,625 $ 49,875 $ (73,175) $ (20,675)
    Ending balance, shares at Oct. 31, 2012 2,625,000      
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    DUE TO OFFICER
    12 Months Ended
    Oct. 31, 2012
    Related Party Transactions [Abstract]  
    DUE TO OFFICER

    During the year ended October 31, 2011, an officer and shareholder loaned the Company $1,500 to help fund operations. The officer loaned an additional $15,400 during the year ended October 31, 2012. The balance due to the officer was $16,900 and $1,500 as of October 31, 2012 and 2011, respectively. The loans are non-interest bearing, unsecured and due upon demand.

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    Oct. 31, 2012
    Oct. 31, 2011
    Oct. 31, 2012
    Related Party Transactions [Abstract]      
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