10-Q 1 olyb-20140630_10q.htm ONLINE YEARBOOK, 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

 (Mark One)

 

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

 

For the quarterly period ended June 30, 2014

 

or

 

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

 

For the transition period from _____________ to _____________

 

Commission file number: 333-185046

 

Online Yearbook

(Name of registrant in its charter)

 

Nevada   46-0750094

(State or jurisdiction

of incorporation or organization) 

  (IRS Employer Identification No.) 

  

701 N. Green Valley Pkwy #200, Henderson, NV 89148

(Address of principal executive offices)

 

(702) 897-9997

(Registrant's telephone number, including area code) 

Not Applicable
(Former name, former address, and former fiscal year,
if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act: None

 

Securities registered pursuant to Section 12(g) of the Act:

 

Common Stock, par value $0.001

(Title of class)

  

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

 

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 (ss. 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X ] No [ ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one):

 

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

  

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

 

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

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

As of August 6, 2014 the registrant had 7,530,000 issued and outstanding shares of common stock.

 

 
 

 

ONLINE YEARBOOK

(A Development Stage Company)

  

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

The statements contained in this Quarterly Report on Form 10-Q that are not historical facts are "forward-looking statements." Forward-looking statements may include our statements regarding our goals, beliefs, strategies, objectives, plan, including product and service developments, future financial conditions, results or projections or current expectations. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as "believes," "estimates," "intends," "plan" "expects," "may," "will," "should," "predicts," "anticipates," "continues," or "potential," or the negative thereof or other variations thereon or comparable terminology, and similar expressions are intended to identify forward-looking statements. We remind readers that forward-looking statements are merely predictions and therefore inherently subject to uncertainties and other factors and involve known and unknown risks that could cause the actual results, performance, levels of activity, or our achievements, or industry results, to be materially different from any future results, performance, levels of activity, or our achievements, or industry results, expressed or implied by such forward-looking statements. Such forward-looking statements appear in Item 2 - "Management's Discussion and Analysis of Financial Condition and Results of Operations," as well as elsewhere in this Annual Report.

 

Our management has included projections and estimates in this Form 10-Q, which are based primarily on management’s experience in the industry, assessments of our results of operations, discussions and negotiations with third parties and a review of information filed by our competitors with the SEC or otherwise publicly available.  We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.  We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

 

Unless otherwise specified or required by context, as used in this Annual Report, the terms "we," "our," "us" and the "Company" refer collectively to Online Yearbook. The term "fiscal year" refers to our fiscal year ending September 30. Unless otherwise indicated, the term "common stock" refers to shares of our common stock.

 

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States generally accepted accounting principles (U.S. GAAP).

 

1
 

 

 

ONLINE YEARBOOK

(A Development Stage Company)

TABLE OF CONTENTS

  

PART I – FINANCIAL INFORMATION

 
ITEM 1.   FINANCIAL STATEMENTS   3
         
         
ITEM 2.   MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS   4
         
ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK              6
         
ITEM 4.   CONTROLS AND PROCEDURES                                            7
         
PART II OTHER INFORMATION
         
ITEM 1.   LEGAL PROCEEDINGS                                                    8
         
ITEM 1A.   RISK FACTORS    8
         
ITEM 2.   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS             8
         
ITEM 3.   DEFAULTS UPON SENIOR SECURITIES                                         8
         
ITEM 4.   MINE SAFETY DISCLOSURES                                                 8
         
ITEM 5.   OTHER INFORMATION      8
         
ITEM 6.   EXHIBITS   9

  

2
 

  

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

ONLINE YEARBOOK

(A Development Stage Company)

  

INDEX TO UNAUDITED FINANCIAL STATEMENT 

FINANCIAL STATEMENTS

June 30, 2014

  

      Page(s)
Unaudited Balance Sheets as of  June 30, 2014 and September 30, 2013     F-1
       
Unaudited Statements of Operations for the three and nine months ended June 30, 2014 and 2013 and  for the Periods from August 6, 2012 (Inception) to June 30, 2014     F-2
       
Unaudited Statement of Stockholders Equity for the period from inception, August 6, 2012 through June 30, 2014     F-3
       
Unaudited Statements of Cash Flows for the nine months ended June 30, 2014 and 2013 and for the Periods from inception, August 6, 2012 through June 30, 2014     F-4
       
Notes to Unaudited Financial Statements     F-5

 

3
 

 

Online Yearbook
(A Development Stage Enterprise)
Balance Sheet (Unaudited)
June 30, 2014 and September 30, 2013
       
   June 30, 2014  September 30, 2013
   (Unaudited)  (Audited)
ASSETS          
Current assets          
Cash  $7,703   $23,753 
Total current assets   7,703    23,753 
           
Intangible Assets          
Software, net   20,150    23,890 
           
Total assets  $27,853   $47,643 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current liabilities          
Accounts payable  $1,800   $750 
Loans payable -related party   7,200    7,200 
Total liabilities(All Current)   9,000    7,950 
           
Stockholders' Equity          
Common stock, $0.001 par value, 75,000,000 shares          
authorized, 7,530,000 and 7,530,000 shares issued and          
outstanding at June 30, 2014 and September 30, 2013   7,530    7,530 
Additional paid-in capital   63,838    63,838 
Deficit accumulated during the development stage   (52,515)   (31,675)
Total stockholders’ equity  $18,853   $39,693 
           
Total liabilities and stockholders’ equity  $27,853   $47,643 
           
The accompanying notes are an integral part of these financial statements.

 

F-1
 

 

Online Yearbook
(A Development Stage Enterprise)
Statement Of Operations (Unaudited)
For the three and nine months ended June 30, 2014 and June 30, 2013
For the periods from August 6, 2012 (Inception) to June 30, 2014
                
   For the three months ended June 30, 2014  For the three months ended June 30, 2013  For the nine months ended June 30, 2014  For the nine months ended June 30, 2013  From the Periods from August 6, 2012 (Inception ) to June 30, 2014
   (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
                
Revenue  $—     $—     $—     $—     $—   
                          
Expenses                         
General administrative   —      —      —      10,340    12,740 
Professional fees   1,800    2,550    6,100    7,100    23,425 
Amortization   1,247    —      3,740    —      4,850 
 Filing fees   —      —      11,000    —      11,500 
Total expenses  $3,047   $2,550   $20,840   $17,440   $52,515 
                          
Net income (loss)  $(3,047)  $(2,550)  $(20,840)  $(17,440)  $(52,515)
                          
Basic and diluted loss per common share  $0.00   $0.00   $0.00   $0.00      
                          
Weighted average shares outstanding   7,530,000    6,275,385    7,530,000    5,558,462      
                          
The accompanying notes are an integral part of these financial statements.

 

F-2
 

 

Online Yearbook
(A Development Stage Enterprise)
Statement of Stockholders' Equity (Unaudited)
For the periods from Inception (August 6, 2012) to June 30, 2014
                
            Deficit   
            Accumulated  Total
         Additional  During the  Stockholders'
   Common Stock  Paid-in  Development  Equity
   Shares  Amount  Capital  Stage  (Deficit)
                
Balance at August 6 , 2012  $—     $—     $—     $—     $—   
                          
Common stock issued for promoters                         
   at $0.005 per share   5,200,000    5,200    20,800    —      26,000 
                          
Net income (loss) from inception                         
 through September 30, 2012   —      —      —      (9,325)   (9,325)
                          
Balance at September 30, 2012   5,200,000    5,200    20,800    (9,325)   16,675 
                          
Common stock issued for cash                         
  at $0.02 per share   2,330,000    2,330    44,538    —      46,868 
Deferred Offering Cost             (1,500)        (1,500)
                          
Net income(loss) for the year ended                         
 September 30, 2013   —      —      —      (22,350)   (22,350)
                          
Balance at September 30, 2013   7,530,000    7,530    63,838    (31,675)   39,693 
                          
Net income(loss) for the nine months ended                         
 June 30, 2014   —      —      —      (20,840)   (20,840)
                          
Balance at June 30, 2014   7,530,000    7,530    63,838    (52,515)   18,853 
                          
The accompanying notes are an integral part of these financial statements.

  

F-3
 

 

Online Yearbook
(A Development Stage Enterprise)
Statement Of Cash Flows (Unaudited)
For the nine months ended June 30, 2014 and June 30, 2013
For the periods from August 6, 2012 (Inception) to June 30, 2014
          
   For the nine months ended June 30, 2014  For the nine months ended June 30, 2013  For the Periods from August 6, 2012 (Inception) to June 30, 2014
Cash flow from operating activities               
Net income (loss)  $(20,840)  $(17,440)  $(52,515)
Adjustments to reconcile net income to net cash               
used by operating activities:               
Amortization   3,740    —      4,850 
Deferred offering costs   —      1,500    —   
Accounts payable   1,050    8,400    1,800 
Net cash used in operating activities  $(16,050)  $(7,540)  $(45,865)
                
Cash flows from investing activities               
Acquired intangible asset   —      —      (25,000)
Net cash used in investing activities  $—     $—     $(25,000)
                
Cash flow from financing activities               
Proceeds from sale of stock   —      45,368    71,368 
Proceeds from related party debt   —      —      7,200 
Net cash provided by financing activities  $—     $45,368   $78,568 
                
Net increase/(decrease) in cash   (16,050)   37,828    7,703 
                
Cash at beginning of period   23,753    17,575    —   
                
Cash at end of period  $7,703   $55,403   $7,703 
                
Supplemental cash flow information               
Cash paid for interest  $—     $—     $—   
Cash paid for income taxes  $—     $—     $—   
                
The accompanying notes are an integral part of these financial statements.

 

 

F-4
 

 

ONLINE YEARBOOK

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

June 30, 2014

  

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

A summary of significant accounting policies of Online Yearbook (A Development Stage Company) (the Company) is presented to assist in understanding the Company’s financial statements. The accounting policies presented in these footnotes conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the accompanying financial statements. These financial statements and notes are representations of the Company’s management who are responsible for their integrity and objectivity. The Company has not realized revenues from its planned principal business purpose and is considered to be in its development stage in accordance with ASC 915, “Development Stage Entities”, formerly known as SFAS 7, “Accounting and Reporting by Development Stage Enterprises.”

 

Organization, Nature of Business and Trade Name

 

Online Yearbook (the Company) was incorporated in the State of Nevada on August 6, 2012. Online Yearbook is a development stage company with the principal business objective of developing and marketing an online yearbook.

 

Basis of Presentation

 

The unaudited financial statements for the period ended June 30, 2014 have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information in accordance with Securities and Exchange Commission (SEC) Regulation S-X rule 8-03. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of June 30, 2014 and the results of operations and cash flows for the periods then ended. The financial data and other information disclosed in these notes to the interim financial statements related to the period are unaudited. The results for the nine month ended June 30, 2014, are not necessarily indicative of the results to be expected for any subsequent quarters or for the entire year ending September 30, 2014. The balance sheet at September 30, 2013 has been derived from the audited financial statements at that date.

 

Property and Equipment

 

Property and equipment are carried at cost. Expenditures for maintenance and repairs are charged against operations. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.

 

Depreciation is computed for financial statement purposes on a straight-line basis over estimated useful lives of the related assets. The estimated useful lives of depreciable assets are:

  

  Estimated
  Useful Lives
Office Equipment 5-10 years
Copier 5-7  years
Vehicles 5-10 years

 

For federal income tax purposes, depreciation is computed under the modified accelerated cost recovery system. For financial statements purposes, depreciation is computed under the straight-line method.

 

The Company has been in the developmental stage since inception and has no operation to date. The Company currently does not have any property and equipment. The above accounting policies will be adopted when the Company maintains property and equipment.

 

F-5
 

 

ONLINE YEARBOOK

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

June 30, 2014

 

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers all short-term debt securities purchased with maturity of three months or less to be cash equivalents. 

 

Revenue and Cost Recognition

 

The Company has been in the developmental stage since inception and has no revenue to date. The Company currently does not have a means for generating revenue. Revenue and Cost Recognition procedures will be implemented based on the type of properties acquired and sale contract specifications.

 

Fair Value of Financial Instruments

 

The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

 

Level 1 – Quoted prices in active markets for identical assets or liabilities.

 

Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

 

Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

 

As of June 30, 2014 and September 30, 2013, the carrying value of accounts payable and loans that are required to be measured at fair value, approximated fair value due to the short-term nature and maturity of these instruments.

 

Advertising

 

Advertising expenses are recorded as general and administrative expenses when they are incurred.

 

Use of Estimates

 

The preparation of financial statements in accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities 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.  A change in managements’ estimates or assumptions could have a material impact on Online Yearbook’s financial condition and results of operations during the period in which such changes occurred. Actual results could differ from those estimates. Online Yearbook’s financial statements reflect all adjustments that management believes are necessary for the fair presentation of their financial condition and results of operations for the periods presented.

 

F-6
 

 

ONLINE YEARBOOK

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

June 30, 2014

 

Income Taxes

 

The Company recognizes the tax effects of transactions in the year in which such transactions enter into the determination of net income, regardless of when reported for tax purposes.

 

Recently Issued Accounting Pronouncements

 

Management believes recently issued accounting pronouncements will have no impact on the financial statements of the Company.

 

Intangible assets

 

Based on the useful life of the Intangible assets with definite lives as determined by the management are recorded at cost and amortized using the straight-line method over their estimated useful lives of 5 years.

 

NOTE B – GOING CONCERN

 

The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company does not have significant cash or other current assets, nor does it have an established source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern.

 

Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading, or seeking protection from creditors pursuant to laws or regulations. Accordingly, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business.

 

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the business plan and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.

 

During the next year, the Company’s foreseeable cash requirements will relate to continual development of the operations of its business, maintaining its good standing and making the requisite filings with the Securities and Exchange Commission, and the payment of expenses associated with research and development. The Company may experience a cash shortfall and be required to raise additional capital.

 

Historically, it has mostly relied upon internally generated funds and funds from the sale of shares of stock and from acquiring loans to finance its operations and growth. Management may raise additional capital through future public or private offerings of the Company’s stock or through loans from private investors, although there can be no assurance that it will be able to obtain such financing. The Company’s failure to do so could have a material and adverse affect upon it and its shareholders.

 

In the past year, the Company funded operations by using cash proceeds received through the issuance of common stock and proceeds from related party debt. For the coming year, the Company plans to continue to fund the Company through debt and securities sales and issuances until the company generates enough revenues through the operations as stated above.



F-7
 

 

ONLINE YEARBOOK

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

June 30, 2014

 

NOTE C – INTANGIBLE ASSETS

 

Intangible assets consisted of the following as at June 30, 2014 and September 30, 2013:

 

   June 30, 2014  September 30, 2013
Software, Gross   25,000    25,000 
Less: Accumulated amortization   4,850    1,110 
Software, Net   20,150    23,890 

 

Amortization expenses were $3,740 and $1,110 for the nine months ended June 30, 2014 and for the previous year ended September 30, 2013 respectively.

 

NOTE D – COMMON STOCK

 

On or about August 6, 2012, Salah Blal and El Maraana, officers and directors of the Company, each purchased 2,600,000 common share of the company’s common stock for $13,000 each or $0.005 per share.

 

Between May 16, 2013 and June 5, 2013 the company sold 2,330,000 shares of common stock under the S-1 registration at $0.02 per share to 37 investors. Cash generated through the sale is $45,368 net of deferred offering cost of $1,500

 

As of June 30, 2014, there were 7,530,000 shares of common stock issued and outstanding.

 

NOTE E – RELATED PARTY TRANSACTIONS

 

On August 6, 2012, Salah Blal and El Maraana, officers and directors of the Company, each purchased 2,600,000 common share of the company’s common stock for $13,000 each or $0.005 per share.

 

During the year ended September 30, 2013, EL Maraana, Director, paid the accounts payable outstanding of $7,200 to Shang Chein Yang.

  

As on June 30, 2014, related party payable outstanding to EL Maraana, Director is $7,200.

 

NOTE F – RIGHTS PURCHASE AGREEMENT.

 

On July 12, 2013, the Company entered into a purchase agreement with Yearbook Alive under which the company purchased all the software, data, documentation, written materials, files and training required to use operate and maintain the Online Yearbook Creator for $25,000.

 

NOTE G – SUBSEQUENT EVENT

 

The Company evaluated all events or transactions that occurred after June 30, 2014 through the date of this filing. The Company determined that it does not have any other subsequent event requiring recording or disclosure in the financial statements for the period ended June 30, 2014.

  

F-8
 

 

Item 2. Management's Discussion and Analysis of Financial Condition And Results Of Operations

 

THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH OUR AUDITED FINANCIAL STATEMENTS AND THE RELATED NOTES THAT APPEAR ELSEWHERE IN THIS ANNUAL REPORT. THE FOLLOWING DISCUSSION CONTAINS FORWARD-LOOKING STATEMENTS THAT REFLECT OUR PLANS, ESTIMATES AND BELIEFS. OUR ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE DISCUSSED IN THE FORWARD LOOKING STATEMENTS. FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE THOSE DISCUSSED BELOW AND ELSEWHERE IN THIS ANNUAL REPORT.

 

FORWARD-LOOKING STATEMENTS

 

Certain statements made in this report may constitute “forward-looking statements on our current expectations and projections about future events”. These forward-looking statements involve known or unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In some cases you can identify forward-looking statements by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions. These statements are based on our current beliefs, expectations, and assumptions and are subject to a number of risks and uncertainties. Although we believe that the expectations reflected-in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. These forward-looking statements are made as of the date of this report, and we assume no obligation to update these forward-looking statements whether as a result of new information, future events, or otherwise, other than as required by law. In light of these assumptions, risks, and uncertainties, the forward-looking events discussed in this report might not occur and actual results and events may vary significantly from those discussed in the forward-looking statements.

  

Overview 

 

Online Yearbook was formed on August 6, 2012. The Company will provide, produce, design and publish online yearbooks for schools, companies and government agencies. As yearbooks have been a staple of junior high and high schools in the United States going back several generations, the Company feels that its product will benefit from the familiarity of the basic concept. The Company will utilize social networking websites, search engine optimization, banner exchange and regular media for its marketing efforts. The Company has purchased software, data, documentation and training from Yearbook Alive to use, operate and maintain the Online Yearbook Creator.

 

Results of Operations

 

Comparison for the Three Months Ended June 30, 2014 and 2013

 

Revenues

 

During the three months period ended June 30, 2014 and 2013 we have not generated any revenue.

 

4
 

 

Operating Expenses 

 

The Company’s operating expenses for the three months ended June 30, 2014 is $3,047 and for the three month ended June 30, 2013 is $2,550. Operating expenses for the three months ended June 30, 2014 consisted of Amortization expense of $1,247 and Professional Fees of $1,800. Operating expenses for the three months ended June 30, 2013 consisted of Professional Fees $2,550.

 

Net Loss

 

During the three months ended June 30, 2014 and 2013 the Company recognized net losses of $3,047 and $2,550.

 

Comparison for the Nine Months Ended June 30, 2014 and 2013

 

Revenues

 

During the six months period ended June 30, 2014 and 2013 we have not generated any revenue.

 

Operating Expenses 

 

The Company’s operating expenses for the nine months ended June 30, 2014 is $20,840 and for the nine month ended June 30, 2013 is $17,440. Operating expenses for the nine months ended June 30, 2014 consisted of professional fees of $6,100, Filing fees of $11,000 and Amortization expense of $ 3,740. Operating expenses for the nine months ended June 30, 2013 consisted of Professional Fees $7,100 and General and Administrative expenses of $10,340.

 

Net Loss

 

During the six months ended June 30, 2014 and 2013 the Company recognized net losses of $20,840 and $17,440.

 

Analysis for the Periods from August 06, 2012 (Inception) to June 30, 2014

 

Revenues

 

We have limited operational history. From our inception on August 06, 2012 to June 30, 2014 we did not generate any revenues. We anticipate that we will incur substantial losses for the foreseeable future and our ability to generate any revenues in the next 12 months continues to be uncertain.

 

Operating Expenses 

 

The Company’s operating expenses for the periods from August 06, 2012 (Inception) to June 30, 2014 is $52,515. Operating expenses consisted of professional fees of $23,425, General and Administrative expenses of $12,740, Amortization expense of $ 4,850 and Filing fees of $ 11,500.

 

Net Loss

 

During the period from August 06, 2012 (Inception) to June 30, 2014 the Company recognized net losses of $52,515.

 

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Liquidity and Capital Resources

 

On June 30, 2014, we had total current assets of $7,703 in cash, total current liabilities of $9,000 and negative working capital of $1,297.

 

Historically, we have financed our cash flow and operations from the sale of common stock and from debt.  Net cash provided by financing activities from August 6, 2012 (date of inception) to June 30, 2014 was $ 78,568 consisting of proceeds from the sale of common stock ($71,368) and proceeds from related party debt ($7,200).  During the nine months ended June 30, 2014 and June 30, 2013 net cash provided by financing activities was $0 and $45,368, respectively.

 

We have not yet generated any revenue from our operations. We will require additional funds to fully implement our plans. These funds may be raised through equity financing, debt financing, or other sources, which may result in the dilution in the equity ownership of our shares. We currently do not have any arrangements for additional financing and we may not be able to obtain financing when required. Our future is dependent upon our ability to obtain financing, a successful marketing and promotion program and, further in the future, achieving a profitable level of operations. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.   We will require additional funds to maintain our reporting status with the SEC and remain in good standing with the state of Nevada.

 

Going Concern

 

We have incurred net losses since our inception on August 6, 2012 through June 30, 2014 totaling $52,515 and have completed only the preliminary stages of our business plan.  We anticipate incurring additional losses before realizing any revenues and will depend on additional financing in order to meet our continuing obligations and ultimately, to attain profitability.  Our ability to obtain additional financing, whether through the issuance of additional equity or through the assumption of debt, is uncertain.  Accordingly, our independent auditors’ report on our financial statements for the year ended September 30, 2013 includes an explanatory paragraph regarding concerns about our ability to continue as a going concern, including additional information contained in the notes to our financial statements describing the circumstances leading to this disclosure.  The financial statements do not include any adjustments that might result from the uncertainty about our ability to continue our business.

 

Recently Issued Accounting Pronouncements

 

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

 

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not Required

 

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Item 4. Controls and Procedures

 

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

 

As required by Rule 13a-15/15d-15 under the Securities and Exchange Act of 1934,as amended (the "Exchange Act"), as of June 30, 2014, we have carried out an evaluation of the effectiveness of the design and operation of our Company's disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of our Company's management, our President (Principal Executive Officer) and Treasurer (Principal Accounting Officer). Based upon the results of that evaluation, our management has concluded that, as of June 30, 2014, our Company's disclosure controls and procedures were effective and provide reasonable assurance that material information related to our Company 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 the SEC's rules and forms, and that such information is accumulated and communicated to management to allow timely decisions on required disclosure.

 

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

 

Management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control system is designed to provide reasonable assurance to our management and board of directors regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that:

 

·Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

 

·Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles in the United States of America, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

 

·Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.

 

Management assessed the effectiveness of our internal control over financial reporting as of June 30, 2014. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in INTERNAL CONTROL -- INTEGRATED FRAMEWORK.

 

Our management concluded that, as of June 30, 2014, our internal control over financial reporting was effective based on the criteria in INTERNAL CONTROL -- INTEGRATED FRAMEWORK issued by the COSO.

 

This quarterly report does not include an attestation report of the Company's independent registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's independent registered public accounting firm pursuant to rules of the SEC that permit the Company to provide only management's report in this quarterly report.

 

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CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

 

There were no changes in our internal control over financial reporting identified in connection with the evaluation described above during the third quarter ended June 30, 2014 that has materially affected or is reasonably likely to materially affect our internal controls over financial reporting.

  

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

We are not aware of any legal proceedings to which we are a party or of which our property is the subject. None of our directors, officers, affiliates, any owner of record or beneficially of more than 5% of our voting securities, or any associate of any such director, officer, affiliate or security holder are (i) a party adverse to us in any legal proceedings, or (ii) have a material interest adverse to us in any legal proceedings. We are not aware of any other legal proceedings that have been threatened against us.

 


Item 1A. Risk Factors

 

As a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act), we are not required to provide the information called for by this Item 1A.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

None.

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosure

 

None.

 


Item 5. Other Information

 

None.

 

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Item 6. Exhibits

 

Exhibit
Number
  Exhibit
Description
31.1   Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2   Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1   Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 
101.INS *   XBRL Instance Document
101.SCH *   XBRL Taxonomy Extension Schema Document
101.CAL *   XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF *   XBRL Taxonomy Extension Definition Linkbase Document
101.LAB *   XBRL Taxonomy Extension Label Linkbase Document
101.PRE *   XBRL Taxonomy Extension Presentation Linkbase Document

 

* XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  Online Yearbook
   
DATED: August 7, 2014 By: /s/ El Maraana
  El Maraana
  President
  CEO, and Director

  

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