0001522538-11-000008.txt : 20111220 0001522538-11-000008.hdr.sgml : 20111220 20111219193345 ACCESSION NUMBER: 0001522538-11-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20110831 FILED AS OF DATE: 20111220 DATE AS OF CHANGE: 20111219 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RAINBOW INTERNATIONAL, CORP. CENTRAL INDEX KEY: 0001522538 STANDARD INDUSTRIAL CLASSIFICATION: GLASS PRODUCTS, MADE OF PURCHASED GLASS [3231] IRS NUMBER: 990366227 STATE OF INCORPORATION: NV FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-175337 FILM NUMBER: 111270482 BUSINESS ADDRESS: STREET 1: PEKARSKA 36 CITY: BRNO STATE: 2N ZIP: 60200 BUSINESS PHONE: 7029970504 MAIL ADDRESS: STREET 1: PEKARSKA 36 CITY: BRNO STATE: 2N ZIP: 60200 10-Q 1 f10qrainbow.htm FORM 10-Q 10-Q


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q


 

 

[X]

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

 

FOR THE QUARTERLY PERIOD ENDED AUGUST 31, 2011

 

 

OR

 

 

 

[ ]

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


Commission file number 333 -175337



RAINBOW INTERNATIONAL, CORP.

 (Exact name of registrant as specified in its charter)



 

 

 

 

 

Nevada

 

3231

 

None

(State or Other Jurisdiction of

 

(Primary Standard Industrial

 

(IRS Employer

Incorporation or Organization)

 

Classification Number)

 

Identification Number)

 

Rainbow International, Corp.

Pekarska 36

Brno

Czech Republic 60200.

+420 - 538880012 

(Address, including zip code, and telephone number, including area code,

of registrant’s principal executive offices)





1




Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days.
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. See the definitions of “large accelerated filer, “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.


LARGE ACCELERATED FILER [ ]

ACCELERATED FILER [ ]

NON-ACCELERATED FILER [ ]

SMALLER REPORTING COMPANY [X]


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


State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 3,540,000 as of December 19, 2011.




2




 

TABLE OF CONTENTS




PART I FINANCIAL INFORMATION

 

Item 1

Financial Statements (Unaudited)

4

   

                 Balance Sheets

4

      

                 Statements of Operations

5

 

                 Statements of Cash Flows

6

 

                 Notes to Financial Statements

7

Item 2.   

Management’s Discussion and Analysis of Financial Condition and Results of Operations

10

Item 3.   

Quantitative and Qualitative Disclosures About Market Risk

12

Item 4.

Controls and Procedures

13

PART II OTHER INFORMATION

 

Item 1   

Legal Proceedings

13

Item 2.  

Unregistered Sales of Equity Securities and Use of Proceeds

13

Item 3   

Defaults Upon Senior Securities

13

Item 4      

Submission of Matters to a Vote of Security Holders

13

Item 5  

Other Information

14

Item 6      

Exhibits

14

 

Signatures

14




3





RAINBOW INTERNATIONAL, CORP.

(A DEVELOPMENT STAGE COMPANY)

BALANCE SHEETS

 

 AUGUST 31, 2011

MAY 31, 2011

ASSETS

 

 

   Current Assets

 

 

       Cash

 $                       562

$              3,100

   Total Current Assets

562 

3,100

TOTAL ASSETS

$                       562 

$              3,100

LIABILITIES

 

 

    Loans from Shareholders

500 

500

TOTAL LIABILITIES

500 

500

STOCKHOLDER’S EQUITY

 

 

    Common stock, par value $0.001; 75,000,000 shares authorized,

3,000,000 shares issued and outstanding

3,000 

3,000

    Deficit accumulated during the development stage

(2,938) 

(400)

TOTAL STOCKHOLDER’S EQUITY

62 

2,600

TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY

$                     562 

$            3,100


See accompanying notes to financial statements



4








 

 

 

RAINBOW INTERNATIONAL, CORP.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF OPERATIONS

 

THREE MONTHS ENDED AUGUST 31, 2011

FOR THE PERIOD FROM APRIL 22, 2011  (INCEPTION) TO AUGUST 31, 2011

REVENUES

 $                                0

$                                 0

EXPENSES

 

 

General & Administrative Expenses

 2,538

2,938

TOTAL EXPENSES

2,538 

2,938

NET LOSS FROM OPERATIONS

(2,538) 

(2,938)

PROVISION FOR INCOME TAXES

0

NET LOSS

$                    (2,538) 

$                      (2,938)

NET LOSS PER SHARE: BASIC AND DILUTED

$                      (0.00) 

 

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED

3,000,000 

 


See accompanying notes to financial statements



5





RAINBOW INTERNATIONAL, CORP.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF CASH FLOWS

 

THREE MONTHS ENDED AUGUST 31, 2011

FOR THE PERIOD FROM APRIL 22, 2011  (INCEPTION) TO AUGUST 31, 2011

Cash Flows from (used in) Operating Activities

 

 

Net Income (Loss)

$                      (2,538)

$                 (2,938)

Net Cash provided by (used in) Operating Activities

(2,538)

(2,938)

Cash Flows from (used in) Financing Activities

 

 

Loans from Shareholders

0

500

Sale of Common Shares

0

3,000

Net Cash provided by (used in) Financing Activities

0

3,500

 

 

 

Increase (Decrease) in Cash and Cash Equivalents

(2,538)

562

Cash and Cash Equivalents at Beginning of Period

3,100

0

Cash and Cash Equivalents at End of Period

$                         562

$                       562

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

Interest paid

$                            0

$                            0

Income taxes paid

$                            0

$                            0


See accompanying notes to financial statements




6





RAINBOW INTERNATIONAL, CORP.

(A Development Stage Company)

Notes to Financial Statements

AUGUST 31, 2011


1. ORGANIZATION AND BUSINESS OPERATIONS

RAINBOW INTERNATIONAL, CORP. (“the Company”) was incorporated under the laws of the State of Nevada, U.S. on April 22, 2011.  Our business is the distribution of Bohemian Crystal produced in Czech Republic. The Company is in the development stage as defined under Accounting Codification Standard, Development Stage Entities (“ASC-915”). The Company has not generated any revenue to date and consequently its operations are subject to all risks inherent in the establishment of a new business enterprise.  For the period from inception on April 22, 2011 through August 31, 2011 the Company has accumulated losses of $2,938.


2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.  

Going Concern

The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future.  The Company has incurred losses since inception resulting in an accumulated deficit of $2,938 as of August 31, 2011 and further losses are anticipated in the development of its business raising substantial doubt about the Company’s ability to continue as a going concern.  The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and loans from directors and or private placement of common stock.  

Cash and Cash Equivalents

 The Company considers all highly liquid instruments with a maturity of  three months or less at the time of issuance to be cash equivalents.  The Company had $562 cash and $-0- cash equivalents as of August 31, 2011.

Use of Estimates and Assumptions

The  preparation  of  financial  statements  in conformity with accounting principles generally  accepted  in  the  United States 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  of  the  financial  statements  and the reported amounts of  revenues  and    expenses  during  the  reporting  period. Actual results could differ from those estimates. In management’s opinion, all adjustments necessary for a fair statement of the results for the interim periods have been made, and all adjustments are of a normal recurring nature.



7





Foreign Currency Translation

The Company's functional currency and its reporting currency is the United States dollar.

Financial Instruments

The carrying value of the Company's  financial  instruments  approximates their fair value because of the short maturity of these 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.


Income Taxes

 Income taxes are accounted for  under  the  assets  and liability method.  Deferred  tax  assets  and  liabilities are recognized for  the  estimated future tax consequences attributable  to differences between the financial  statement carrying amounts of existing  assets  and  liabilities and their respective  tax  bases and operating loss and tax credit  carry  forwards. Deferred tax assets  and  liabilities are measured using enacted tax rates  in effect for the year in which  those  temporary differences are expected to be recovered or settled.


 Basic and Diluted Loss Per Share

The Company computes loss per share in accordance with “ASC-260”, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period.  Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.

The Company has no potential dilutive instruments and accordingly basic loss and diluted loss per share are equal.


Fiscal Periods


The Company's fiscal year end is May 31.

Recent accounting pronouncements

We have reviewed all the recent accounting pronouncements issued to date of the issuance of these financial statements, and we do not believe any of these pronouncements will have a material impact on the company.

Advertising

The Company follows the policy of charging the costs of advertising to expenses incurred. The Company incurred $-0- in advertising costs during the period April 22, 2011 (inception) to August 31, 2011.




8




3. COMMON STOCK


The authorized capital of  the Company is 75,000,000 common shares with a  par value of $ 0.001 per share. On May 27, 2011, the Company issued 3,000,000  shares  of  common stock at a price of $0.001 per share for total cash proceeds of $3,000.


4. INCOME TAXES


As of August 31, 2011 the Company had net operating loss carry forwards of $2,938 that may be available to reduce future years’ taxable income through 2031. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.


5. RELATED PARTY TRANSACTIONS

On April 22, 2011 a Director had loaned the Company $75.On April 28, 2011 a Director had loaned the Company $325. On May 27, 2011 a Director had loaned the Company $100.

As of August 31, 2011 total  loan amount was $400. The loan is non-interest bearing, due upon demand and unsecured.

On May 27, 2011, the Company sold 3,000,000  shares  of  common stock at a price of $0.001 per share to its director.


6. SUBSEQUENT EVENTS


For the period from September 23, 2011 to November 21, 2011 the Company issued 540,000 shares of common stock at a price of $0.04 per share for total cash proceeds of $21,600.



9





ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION


FORWARD LOOKING STATEMENTS


Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.


INTRODUCTION


Our Company was incorporated in the State of Nevada on April 22, 2011.Our business is the distribution if Bohemian crystal produced in Czech Republic to Europe and North America.  We have not generated any revenues and our principal business activities to date consist of creating a business plan and entering into a Supply Agreement, dated June 30, 2011, with Autodily Rachot S.R.O., a Czech Republic limited liability company (“Autodily Rachot”), which is an established distributor of Bohemian crystal.  Autodily Rachot is a large and well-established supplier and distributor of Bohemian crystal of almost any kind in the Czech Republic.   

We will distribute our crystal in the European and North American markets to both retail and wholesale customers.  We do not intend to store inventory for any period of time.  The orders will be shipped to the customers depending on customers’ requests.   Customers will be responsible for the custom duties, taxes or any other additional charges that might incur.  All shipments will be 100% insured for the value of the shipping, and the insurance cost for risk of damage or loss will be customers’ responsibility.


RESULTS OF OPERATION


We are a development stage company and have not generated any revenue to date. We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation. We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.




10




THREE MONTH PERIOD ENDED AUGUST 31, 2011 COMPARED TO THE PERIOD FROM INCEPTION (APRIL 22, 2011) TO AUGUST 31, 2011


Our net loss for the three month period ended August 31, 2011 was $2,538  compared to a net loss of $2,938 during the period from inception (April 22, 2011) to August 31, 2011. During the three month period ended August 31, 2011, we did not generate any revenue.  

During the three month period ended August 31, 2011, we incurred general and administrative expenses $2,538 compared to $2,938  incurred during the period from inception (April 22, 2011) to August 31, 2011. General and administrative and professional fee expenses incurred during the three month period ended August 31, 2011 were generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting, developmental costs, and marketing expenses.

The weighted average number of shares outstanding was 3,000,000 for the three month period ended August 31, 2011.



LIQUIDITY AND CAPITAL RESOURCES


THREE MONTH PERIOD ENDED AUGUST 31, 2011  


As at August 31, 2011, our current assets were $562 compared to $3,100 in current assets at May 31, 2011. Current assets were comprised of $562  in cash. As at August 31, 2011, our current liabilities were $500. Current liabilities were comprised of $500 in loan from Director.

Stockholders’ equity was $62 as of August 31, 2011 compared to stockholders’ equity of $2,600 as of May 31, 2011.   


CASH FLOWS FROM OPERATING ACTIVITIES


We have not generated positive cash flows from operating activities. For the three month period ended August 31, 2011, net cash flows used in operating activities was $2,538 consisting of a net loss of $2,538. Net cash flows used in operating activities was $2,938 for the period from inception (April 22, 2011) to August 31, 2011.


CASH FLOWS FROM FINANCING ACTIVITIES

We have financed our operations primarily from either advancements or the issuance of equity and debt instruments. For the three month period ended August 31, 2011 we have not generated any cash flows from financing activities.  For the period from inception (April 22, 2011) to August 31, 2011, net cash provided by financing activities was $3,500 received from proceeds from issuance of common stock and loan from Director.





11




PLAN OF OPERATION AND FUNDING


Our cash reserves are not sufficient to meet our obligations for the next twelve month period. As a result, we will need to seek additional funding in the near future. We currently do not have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of equity financing from the sale of shares of our common stock. We may also seek to obtain short-term loans from our directors or unrelated parties, although no such arrangements have been made. We do not have any arrangements in place for any future equity financing.



MATERIAL COMMITMENTS


As of August 31, 2011, we had no material commitments.


PURCHASE OF SIGNIFICANT EQUIPMENT


We do not intend to purchase any significant equipment during the next twelve months.



OFF-BALANCE SHEET ARRANGEMENTS


As of the date of this Quarterly Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.


GOING CONCERN


The independent auditors' audit report accompanying our May 31, 2011 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.


No report required.





12




ITEM 4. CONTROLS AND PROCEDURES


Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.


An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of August 31, 2011. Based on that evaluation, our management concluded that our disclosure controls and procedures were effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Such officer also confirmed that there was no change in our internal control over financial reporting during the three-month period ended August 31, 2011 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.



PART II. OTHER INFORMATION



ITEM 1. LEGAL PROCEEDINGS


Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.


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


No report required.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES


No report required.



ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS


No report required.





13




ITEM 5. OTHER INFORMATION


No report required.



 

ITEM 6. EXHIBITS


Exhibits:



31.1 Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).


31.2 Certification of Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).


32.1 Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.


101 Interactive data files pursuant to Rule 405 of Regulation S-T. 





SIGNATURES


In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


 


RAINBOW INTERNATIONAL, CORP.

Dated: December 19, 2011

By: /s/ Vladimir Bibik

 

Vladimir Bibik, President and Chief Executive Officer and Chief Financial Officer




14



EX-31.1 2 certification311.htm ex 31.1

Exhibit 31.1


CERTIFICATION


I, Vladimir Bibik, President and Chief Executive Officer of RAINBOW INTERNATIONAL, CORP., certify that:


1.   I have reviewed this Quarterly Report on Form 10-Q of RAINBOW INTERNATIONAL, CORP.;


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


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


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


     a)   designed  such  disclosure  controls  and  procedures,  or caused such  disclosure   control  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;

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


5.   The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent 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: December 19, 2011



/s/ Vladimir Bibik

____________________________

Vladimir Bibik, President and

Chief Executive Officer




EX-31.2 3 certification312.htm 31.2

Exhibit 31.2


CERTIFICATION


I, Vladimir Bibik, Chief Financial Officer of RAINBOW INTERNATIONAL, CORP., certify that:


1.   I have reviewed this Quarterly Report on Form 10-Q of RAINBOW INTERNATIONAL, CORP.;


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


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


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


     a)   designed  such  disclosure  controls  and  procedures,  or caused such  disclosure   control  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;

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


5.   The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent 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: December 19, 2011



/s/ Vladimir Bibik

____________________________

Vladimir Bibik,

Chief Financial Officer




EX-32.1 4 certification321.htm 32.1

Exhibit 32.1


CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



In  connection  with the  Quarterly  Report of RAINBOW INTERNATIONAL, CORP. (the "Company")  on Form 10-Q for the period  ended  August 31,  2011 as filed with the Securities  and  Exchange  Commission  on the date  hereof (the  "Report"),  the undersigned,  in the  capacities  and  on  the  dates  indicated  below,  hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:


     1.   The Report fully complies with the  requirements  of Section 13(a) or 15(d) of the Securities Exchange Act of  1934; and


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


Date: December 19, 2011



/s/ Vladimir Bibik

__________________________

Vladimir Bibik, President,

Chief Executive Officer and

Chief Financial Officer




EX-101.INS 5 rnbi-20110831.xml 10-Q 2011-08-31 false RAINBOW INTERNATIONAL, CORP. 0001522538 --05-31 3000000 Smaller Reporting Company No No No 2012 Q1 562 562 562 500 500 3000 -2938 62 562 3100 3100 3100 500 500 3000 -400 2600 3100 2538 2938 2538 2938 -2538 -2938 0 3000000 -2538 -2938 500 3000 3500 -2538 562 0 0 0 0 500 500 <!--egx--><p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b><u>RAINBOW INTERNATIONAL, CORP.</u></b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b>(A Development Stage Company) </b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b>Notes to Financial Statements</b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b>AUGUST 31, 2011</b></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>1. ORGANIZATION AND BUSINESS OPERATIONS</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">RAINBOW INTERNATIONAL, CORP. (&#147;the Company&#148;) was incorporated under the laws of the State of Nevada, U.S. on April 22, 2011. &nbsp;Our business is the distribution of Bohemian Crystal produced in Czech Republic. The Company is in the development stage as defined under Accounting Codification Standard, Development Stage Entities (&#147;ASC-915&#148;). The Company has not generated any revenue to date and consequently its operations are subject to all risks inherent in the establishment of a new business enterprise. &nbsp;For the period from inception on April 22, 2011 through August 31, 2011 the Company has accumulated losses of $2,938.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><i>Basis of Presentation</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">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. &nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><i>Going Concern</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. &nbsp;The Company has incurred losses since inception resulting in an accumulated deficit of $2,938 as of August 31, 2011 and further losses are anticipated in the development of its business raising substantial doubt about the Company&#146;s ability to continue as a going concern. &nbsp;The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and loans from directors and or private placement of common stock. &nbsp;</p> <p style="MARGIN:0in 0in 0pt"><i>Cash and Cash Equivalents</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;The Company considers all highly liquid instruments with a maturity of &nbsp;three months or less at the time of issuance to be cash equivalents. &nbsp;The Company had $562 cash and $-0- cash equivalents as of August 31, 2011.</p> <p style="MARGIN:0in 0in 0pt"><i>Use of Estimates and Assumptions</i></p> <p style="MARGIN:0in 0in 0pt">The &nbsp;preparation &nbsp;of &nbsp;financial &nbsp;statements &nbsp;in conformity with accounting principles generally &nbsp;accepted &nbsp;in &nbsp;the &nbsp;United States requires &nbsp;management &nbsp;to &nbsp;make &nbsp;&nbsp;estimates and assumptions that &nbsp;affect &nbsp;the reported amounts of &nbsp;assets and liabilities and disclosure of contingent assets and liabilities at &nbsp;the &nbsp;date &nbsp;of &nbsp;the &nbsp;financial &nbsp;statements &nbsp;and the reported amounts of &nbsp;revenues &nbsp;and &nbsp;&nbsp;&nbsp;expenses &nbsp;during &nbsp;the &nbsp;reporting &nbsp;period. Actual results could differ from those estimates. In management&#146;s opinion, all adjustments necessary for a fair statement of the results for the interim periods have been made, and all adjustments are of a normal recurring nature.</p><br clear="all" style="PAGE-BREAK-BEFORE:always"></br> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><i>Foreign Currency Translation</i></p> <p style="MARGIN:0in 0in 0pt">The Company's functional currency and its reporting currency is the United States dollar.</p> <p style="MARGIN:0in 0in 0pt"><i>Financial Instruments</i></p> <p style="MARGIN:0in 0in 0pt">The carrying value of the Company's &nbsp;financial &nbsp;instruments &nbsp;approximates their fair value because of the short maturity of these instruments.</p> <p style="MARGIN:0in 0in 0pt"><i>Stock-based Compensation</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. &nbsp;To date, the Company has not adopted a stock option plan and has not granted any stock options.</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><i>Income Taxes</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;Income taxes are accounted for &nbsp;under &nbsp;the &nbsp;assets &nbsp;and liability method. &nbsp;Deferred &nbsp;tax &nbsp;assets &nbsp;and &nbsp;liabilities are recognized for &nbsp;the &nbsp;estimated future tax consequences attributable &nbsp;to differences between the financial &nbsp;statement carrying amounts of existing &nbsp;assets &nbsp;and &nbsp;liabilities and their respective &nbsp;tax &nbsp;bases and operating loss and tax credit &nbsp;carry &nbsp;forwards. Deferred tax assets &nbsp;and &nbsp;liabilities are measured using enacted tax rates &nbsp;in effect for the year in which &nbsp;those &nbsp;temporary differences are expected to be recovered or settled.</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;<i>Basic and Diluted Loss Per Share</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company computes loss per share in accordance with &#147;ASC-260&#148;, &#147;Earnings per Share&#148; which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. &nbsp;Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company has no potential dilutive instruments and accordingly basic loss and diluted loss per share are equal.</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><i>Fiscal Periods</i></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">The Company's fiscal year end is May 31.</p> <p style="MARGIN:0in 0in 0pt"><i>Recent accounting pronouncements</i></p> <p style="MARGIN:0in 0in 0pt">We have reviewed all the recent accounting pronouncements issued to date of the issuance of these financial statements, and we do not believe any of these pronouncements will have a material impact on the company.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><i>Advertising</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company follows the policy of charging the costs of advertising to expenses incurred. The Company incurred $-0- in advertising costs during the period April 22, 2011 (inception) to August 31, 2011.</p> <p style="MARGIN:8.4pt 0in 0pt">&nbsp;</p><b><br clear="all" style="PAGE-BREAK-BEFORE:always"></br></b> <p style="MARGIN:0in 0in 0pt"><b>3. COMMON STOCK</b></p> <p style="TEXT-ALIGN:justify; MARGIN:5.05pt 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The authorized capital of &nbsp;the Company is 75,000,000 common shares with a &nbsp;par value of $ 0.001 per share. On May 27, 2011, the Company issued 3,000,000 &nbsp;shares &nbsp;of &nbsp;common stock at a price of $0.001 per share for total cash proceeds of $3,000.</p> <p style="MARGIN:0in 0in 0pt"><b><br></br>4. INCOME TAXES</b></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">As of August 31, 2011 the Company had net operating loss carry forwards of $2,938 that may be available to reduce future years&#146; taxable income through 2031. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><b>5. RELATED PARTY TRANSACTIONS</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">On April 22, 2011 a Director had loaned the Company $75.On April 28, 2011 a Director had loaned the Company $325. On May 27, 2011 a Director had loaned the Company $100.</p> <p style="MARGIN:0in 0in 0pt">As of August 31, 2011 total &nbsp;loan amount was $400. The loan is non-interest bearing, due upon demand and unsecured.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">On May 27, 2011, the Company sold 3,000,000 &nbsp;shares &nbsp;of &nbsp;common stock at a price of $0.001 per share to its director.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>6. 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BALANCE SHEETS (USD $)
Aug. 31, 2011
May 31, 2011
Current Assets    
Cash and equivalents $ 562 $ 3,100
Total current assets 562 3,100
Total Assets 562 3,100
Current Liabilities:    
Loans from Shareholders 500 500
Total current liabilities 500 500
Total liabilities 500 500
Stockholders' Equity    
Common Stock, $0.001 par value, 75,000,000 shares authorized, 3,000,000 shares issued and outstanding 3,000 3,000
Deficit accumulated during the development stage (2,938) (400)
Total stockholders' equity 62 2,600
Total liabilities and stockholders' equity $ 562 $ 3,100
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XML 16 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
STATEMENTS OF OPERATIONS (USD $)
3 Months Ended 4 Months Ended
Aug. 31, 2011
Aug. 31, 2011
Expenses:    
General and Administrative Expenses $ 2,538 $ 2,938
Total Expense 2,538 2,938
Net (loss) $ (2,538) $ (2,938)
(Loss) per common share Basic $ 0  
Weighted Average Number of Common Shares Outstanding 3,000,000  
XML 17 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information
3 Months Ended
Aug. 31, 2011
Document and Entity Information  
Entity Registrant Name RAINBOW INTERNATIONAL, CORP.
Document Type 10-Q
Document Period End Date Aug. 31, 2011
Amendment Flag false
Entity Central Index Key 0001522538
Current Fiscal Year End Date --05-31
Entity Common Stock, Shares Outstanding 3,000,000
Entity Filer Category Smaller Reporting Company
Entity Current Reporting Status No
Entity Voluntary Filers No
Entity Well-known Seasoned Issuer No
Document Fiscal Year Focus 2012
Document Fiscal Period Focus Q1
XML 18 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
STATEMENTS OF CASH FLOWS (USD $)
3 Months Ended 4 Months Ended
Aug. 31, 2011
Aug. 31, 2011
Operating Activities    
Net (loss) $ (2,538) $ (2,938)
Net cash (used) for operating activities (2,538) (2,938)
Financing Activities    
Loan from Shareholders   500
Sale of Common Shares   3,000
Net cash provided by financing activities   3,500
Net increase (decrease) in cash and equivalents (2,538) 562
Cash and equivalents at beginning of the period 3,100  
Cash and equivalents at end of the period 562 562
Supplemental cash flow information:    
Interest paid 0 0
Income taxes paid $ 0 $ 0
XML 19 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
Organization, Consolidation and Presentation of Financial Statements
3 Months Ended
Aug. 31, 2011
Organization, Consolidation and Presentation of Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

RAINBOW INTERNATIONAL, CORP.

(A Development Stage Company)

Notes to Financial Statements

AUGUST 31, 2011

 

1. ORGANIZATION AND BUSINESS OPERATIONS

RAINBOW INTERNATIONAL, CORP. (“the Company”) was incorporated under the laws of the State of Nevada, U.S. on April 22, 2011.  Our business is the distribution of Bohemian Crystal produced in Czech Republic. The Company is in the development stage as defined under Accounting Codification Standard, Development Stage Entities (“ASC-915”). The Company has not generated any revenue to date and consequently its operations are subject to all risks inherent in the establishment of a new business enterprise.  For the period from inception on April 22, 2011 through August 31, 2011 the Company has accumulated losses of $2,938.

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.  

Going Concern

The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future.  The Company has incurred losses since inception resulting in an accumulated deficit of $2,938 as of August 31, 2011 and further losses are anticipated in the development of its business raising substantial doubt about the Company’s ability to continue as a going concern.  The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and loans from directors and or private placement of common stock.  

Cash and Cash Equivalents

 The Company considers all highly liquid instruments with a maturity of  three months or less at the time of issuance to be cash equivalents.  The Company had $562 cash and $-0- cash equivalents as of August 31, 2011.

Use of Estimates and Assumptions

The  preparation  of  financial  statements  in conformity with accounting principles generally  accepted  in  the  United States 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  of  the  financial  statements  and the reported amounts of  revenues  and    expenses  during  the  reporting  period. Actual results could differ from those estimates. In management’s opinion, all adjustments necessary for a fair statement of the results for the interim periods have been made, and all adjustments are of a normal recurring nature.



 

Foreign Currency Translation

The Company's functional currency and its reporting currency is the United States dollar.

Financial Instruments

The carrying value of the Company's  financial  instruments  approximates their fair value because of the short maturity of these 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.

 

Income Taxes

 Income taxes are accounted for  under  the  assets  and liability method.  Deferred  tax  assets  and  liabilities are recognized for  the  estimated future tax consequences attributable  to differences between the financial  statement carrying amounts of existing  assets  and  liabilities and their respective  tax  bases and operating loss and tax credit  carry  forwards. Deferred tax assets  and  liabilities are measured using enacted tax rates  in effect for the year in which  those  temporary differences are expected to be recovered or settled.

 

 Basic and Diluted Loss Per Share

The Company computes loss per share in accordance with “ASC-260”, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period.  Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.

The Company has no potential dilutive instruments and accordingly basic loss and diluted loss per share are equal.

 

Fiscal Periods

 

The Company's fiscal year end is May 31.

Recent accounting pronouncements

We have reviewed all the recent accounting pronouncements issued to date of the issuance of these financial statements, and we do not believe any of these pronouncements will have a material impact on the company.

Advertising

The Company follows the policy of charging the costs of advertising to expenses incurred. The Company incurred $-0- in advertising costs during the period April 22, 2011 (inception) to August 31, 2011.

 



3. COMMON STOCK

 

The authorized capital of  the Company is 75,000,000 common shares with a  par value of $ 0.001 per share. On May 27, 2011, the Company issued 3,000,000  shares  of  common stock at a price of $0.001 per share for total cash proceeds of $3,000.



4. INCOME TAXES

 

As of August 31, 2011 the Company had net operating loss carry forwards of $2,938 that may be available to reduce future years’ taxable income through 2031. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

 

5. RELATED PARTY TRANSACTIONS

On April 22, 2011 a Director had loaned the Company $75.On April 28, 2011 a Director had loaned the Company $325. On May 27, 2011 a Director had loaned the Company $100.

As of August 31, 2011 total  loan amount was $400. The loan is non-interest bearing, due upon demand and unsecured.

On May 27, 2011, the Company sold 3,000,000  shares  of  common stock at a price of $0.001 per share to its director.

 

6. SUBSEQUENT EVENTS

 

For the period from September 23, 2011 to November 21, 2011 the Company issued 540,000 shares of common stock at a price of $0.04 per share for total cash proceeds of $21,600.

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