UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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[X] | QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2014 |
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OR |
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[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DANLAX, CORP.
(Exact name of registrant as specified in its charter)
Nevada
(State or Other Jurisdiction of Incorporation or Organization)
33-1229046 IRS Employer Identification Number | 7389 Primary Standard Industrial Classification Code Number |
Danlax, Corp.
Transportnaya Street, 58-7
Nizhneudinsk, Russia 665106
Tel. (702) 605-4427
(Address and telephone number of principal executive offices)
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 [X ] NO [ ]
State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date: 9,000,000 as of June 9, 2014.
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TABLE OF CONTENTS
PART I FINANCIAL INFORMATION |
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ITEM 1 | FINANCIAL STATEMENTS | 3 |
| BALANCE SHEETS | 3 |
| STATEMENTS OF OPERATIONS | 4 |
| STATEMENTS OF CASH FLOWS | 5 |
| NOTES TO FINANCIAL STATEMENTS | 6 |
ITEM 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 8 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 10 |
ITEM 4. | CONTROLS AND PROCEDURES | 10 |
PART II OTHER INFORMATION |
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ITEM 1 | LEGAL PROCEEDINGS | 11 |
ITEM 2. | 11 | |
ITEM 3 | DEFAULTS UPON SENIOR SECURITIES | 11 |
ITEM 4 | 11 | |
ITEM 5 | OTHER INFORMATION | 11 |
ITEM 6 | EXHIBITS | 11 |
| SIGNATURES | 12 |
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DANLAX, CORP. (A DEVELOPMENT STAGE COMPANY) CONDENSED BALANCE SHEETS | |||||
| APRIL 30, 2014 | JULY 31, 2013 | |||
ASSETS | (unaudited) |
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Current Assets |
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| Cash | $ 2,502 | $ 9,100 | ||
| Total current assets | 2,502 | 9,100 | ||
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Total assets | $ 2,502 | $ 9,100 | |||
LIABILITIES AND STOCKHOLDER'S EQUITY | |||||
Liabilities | |||||
Current liabilities | |||||
| Loans from Shareholders | 306 | 306 | ||
Total liabilities | 306 | 306 | |||
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Stockholders Equity | |||||
| Common stock, $0.001 par value, 75,000,000 shares authorized; |
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| 9,000,000 shares issued and outstanding | 9,000 | 9,000 | ||
| Additional paid-in-capital | - | - | ||
| Deficit accumulated during the development stage | (6,804) | (206) | ||
Total stockholders equity | 2,196 | 8,794 | |||
Total liabilities and stockholders equity | $ 2,502 | $ 9,100 |
The accompanying notes are an integral part of these condensed financial statements.
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DANLAX, CORP. (A DEVELOPMENT STAGE COMPANY) CONDENSED STATEMENTS OF OPERATIONS - (UNAUDITED) | |||||
| THREE MONTHS ENDED APRIL 30, 2014 | FOR THE PERIOD FROM INCEPTION (APRIL 10, 2013) to APRIL 30, 2013 | NINE MONTHS ENDED APRIL 30, 2014 | FOR THE PERIOD FROM INCEPTION (APRIL 10, 2013) to APRIL 30, 2013 | FOR THE PERIOD FROM INCEPTION (APRIL 10, 2013) to APRIL 30, 2014 |
Revenues | $ - | $ - | $ - | $ - | $ - |
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Operating Expenses |
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General and administrative expenses | 1,042 | 206 | 6,598 | 206 | 6,804 |
Total operating expenses | 1,042 | 206 | 6,598 | 206 | 6,804 |
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Net loss from operations | (1,042) | (206) | (6,598) | (206) | (6,804) |
Net loss | $ (1,042) | $ (206) | $ (6,598) | $ (206) | $ (6,804) |
Loss per common share Basic | (0.00) | - | (0.00) | - |
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Weighted Average Number of Common Shares Outstanding-Basic | 9,000,000 | - | 9,000,000 | - |
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The accompanying notes are an integral part of these condensed financial statements.
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DANLAX, CORP. (A DEVELOPMENT STAGE COMPANY) CONDENSED STATEMENTS OF CASH FLOWS - (UNAUDITED) | ||||
| NINE MONTHS ENDED APRIL 30, 2014 | FOR THE PERIOD FROM INCEPTION (APRIL 10, 2013) to APRIL 30, 2013 | FOR THE PERIOD FROM INCEPTION (APRIL 10, 2013) to APRIL 30, 2014 | |
Operating Activities |
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| Net loss | $ (6,598) | $ (206) | $ (6,804) |
| Net cash provided by (used in) operating activities | (6,598) | (206) | (6,804) |
Financing Activities |
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| Sale of common stock | - | - | 9,000 |
| Loans from Shareholders | - | 206 | 306 |
| Net cash provided by financing activities | - | 206 | 9,306 |
Net increase (decrease) in cash and equivalents | (6,598) | - | 2,502 | |
Cash and equivalents at beginning of the period | 9,100 | - | - | |
Cash and equivalents at end of the period | $ 2,502 | $ - | $ 2,502 | |
| Supplemental cash flow information: |
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| Cash paid for: |
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| Interest | $ - | $ - | $ - |
| Taxes | $ - | $ - | $ - |
Non-Cash Financing Activities | $ - | $ - | $ - |
The accompanying notes are an integral part of these condensed financial statements.
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DANLAX, CORP.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
APRIL 30, 2014
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Description of Business
DANLAX, CORP. (the Company) was incorporated under the laws of the State of Nevada, U.S. on April 10, 2013. The Company is in the development stage as defined under Statement on Financial Accounting Standards Accounting Standards Codification FASB ASC 915-205 "Development-Stage Entities. Since inception through April 30, 2014 the Company has not generated any revenue and has accumulated losses of $6,804. Company is in the business of mobile games development.
Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.
The Company's bank accounts are deposited in insured institutions. The funds are insured up to $250,000. At April 30, 2014 the Company's bank deposits did not exceed the insured amounts.
Basic Income (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.
Dividends
The Company has not adopted any policy regarding payment of dividends. No dividends have been paid during any of the periods shown.
Income Taxes
The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
Advertising Costs
The Companys policy regarding advertising is to expense advertising when incurred. The Company incurred advertising expense of $0 during the period ended April 30, 2014.
Accounting Basis
The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (GAAP accounting). The Company has adopted July 31 fiscal year end.
Impairment of Long-Lived Assets
The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.
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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.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Stock-Based Compensation
As of April 30, 2014 the Company has not issued any stock-based payments to its employees. Stock-based compensation is accounted for at fair value in accordance with SFAS No. 123 and 123(R) (ASC 718). To date, the Company has not adopted a stock option plan and has not granted any stock options.
Revenue Recognition
The Company will recognize revenue when products are fully delivered or services have been provided and collection is reasonably assured.
NOTE 2 - CONDENSED FINANCIAL STATEMENTS
The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial positions, results of operations, and cash flows on April 30, 2014, and for all periods presented herein, have been made.
Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Companys July 31, 2013 audited financial statements. The results of operations for the nine months ended April 30, 2014 are not necessarily indicative of the operating results for the full year.
NOTE 3 GOING CONCERN
The accompanying financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern. However, the Company had no revenues as of April 30, 2014. The Company currently has limited working capital, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time.
Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of managements efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.
NOTE 4 COMMON STOCK
The Company has 75,000,000 common shares authorized with a par value of $ 0.001 per share. On July 25, 2013, the Company issued 9,000,000 shares of its common stock at $0.001 per share for total proceeds of $9,000.
As of April 30, 2014, the Company had 9,000,000 shares issued and outstanding.
NOTE 5 RELATED PARTY TRANSACTIONS
On July 25, 2013, the Company sold 9,000,000 shares of common stock at a price of $0.001 per share to its director.
Since inception through April 30, 2014, the Director loaned $306 to the Company to pay for incorporation expenses. This loan is non-interest bearing, due upon demand and unsecured.
NOTE 6 SUBSEQUENT EVENTS
The Company has evaluated subsequent events from April 30, 2014 to the date the financial statements were issued and has determined that there are no items to disclose.
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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.
General
Danlax, Corp. was incorporated in the State of Nevada on April 10, 2013 and established a fiscal year end of July 31. We do not have revenues, have minimal assets and have incurred losses since inception. We are a development-stage company formed to develop and sell mobile games for the Apple and Android platforms. We have recently started our operation. As of today, we have developed our business plan and developed concepts of our first mobile game. We just started to develop a concept for our first mobile game and there is no guarantee that we ever develop this game. We will develop other mobile games when/if our first mobile game is successful and we have available funds for further development.
A mobile game is a video game played on a feature phone, smartphone PDA, tablet computer, portable media player or calculator. Mobile games are played using the technology present on the device itself. For networked games, there are various technologies in common use. Examples include text message (SMS), multimedia message (MMS) or GPS location identification. However, there are non-networked applications that simply use the device platform to run the game software. Mobile games are usually downloaded via the mobile operators network, but in some cases are also loaded in the mobile handsets when purchased, via infrared connection, Bluetooth, or memory card.
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.
THREE MONTH PERIOD ENDED APRIL 30, 2014 COMPARED TO THE PERIOD FROM INCEPTION (APRIL 10, 2013) TO APRIL 30, 2013
Our net loss for the three month period ended April 30, 2014 was $1,042 compared to a net loss of $206 during the period from inception (April 10, 2013) to Aril 30, 2013. During the three month period ended April 30, 2014 we did not generate any revenue.
During the three month period ended April 30, 2014, we incurred general and administrative expenses of $1,042 compared to $206 incurred during the period from inception (April 10, 2013) to Aril 30, 2013. General and administrative expenses incurred during the three month period ended April 30, 2014 were generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting, developmental costs, and marketing expenses.
NINE MONTH PERIOD ENDED APRIL 30, 2014 COMPARED TO THE PERIOD FROM INCEPTION (APRIL 10, 2013) TO APRIL 30, 2013
Our net loss for the nine month period ended April 30, 2014 was $6,598 compared to a net loss of $206 during the period from inception (April 10, 2013) to Aril 30, 2013. During the nine month period ended April 30, 2014 we did not generate any revenue.
During the nine month period ended April 30, 2014, we incurred general and administrative expenses of $6,598 compared to $206 incurred during the period from inception (April 10, 2013) to Aril 30, 2013. General and administrative expenses incurred during the nine month period ended April 30, 2014 were generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting, developmental costs, and marketing expenses.
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LIQUIDITY AND CAPITAL RESOURCES
NINE MONTH PERIOD ENDED APRIL 30, 2014
As of April 30, 2014, our current assets were $2,502 compared to $9,100 in current assets at July 31, 2013. Current assets were comprised of $2,502 in cash. As of April 30, 2014, our current liabilities were $306. Current liabilities were comprised of $306 in advances from a Director.
Stockholders equity was $2,196 as of April 30, 2014 compared to stockholders equity of $8,794 as of July 31, 2013.
CASH FLOWS FROM OPERATING ACTIVITIES
We have not generated positive cash flows from operating activities. For the nine month period ended April 30, 2014, net cash flows used in operating activities was $6,598 consisting of a net loss of $6,598. Net cash flows used in operating activities was $206 for the period from inception (April 10, 2013) to April 30, 2013.
CASH FLOWS FROM FINANCING ACTIVITIES
We have financed our operations primarily from either advances from shareholders or the issuance of equity instruments. For the nine month period ended April 30, 2014, we have not received any cash flow provided by financing activities. For the period from inception (April 10, 2013) to April 30, 2013, net cash provided by financing activities was $206 from proceeds from advances from a shareholder.
PLAN OF OPERATION AND FUNDING
We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.
Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next nine months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.
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MATERIAL COMMITMENTS
As of April 30, 2014, 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 July 31, 2013 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.
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 Commissions 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 issuers 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 April 30, 2014. 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 April 30, 2014 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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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.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS
Exhibits:
31.1 Certification of Chief Executive Officer and 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.
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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.
| DANLAX, CORP. |
Dated: June 9, 2014 | By: /s/ Ivan Krikun |
| Ivan Krikun President and Chief Executive Officer and Chief Financial Officer |
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Exhibit 31.1
CERTIFICATION
I, Ivan Krikun, President and Chief Executive Officer and Chief Financial Officer of DANLAX, CORP., certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of DANLAX, 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: June 9, 2014
/s/ Ivan Krikun
____________________________
Ivan Krikun, President,
Chief Executive Officer and Chief Financial Officer
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of DANLAX, CORP. (the "Company") on Form 10-Q for the period ended April 30, 2014 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: June 9, 2014
/s/ Ivan Krikun
Ivan Krikun, President,
Chief Executive Officer and
Chief Financial Officer
T;&@AJZ,8-P
Statement of Financial Position (USD $)
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Apr. 30, 2014
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Jul. 31, 2013
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Assets, Current | ||
Cash and Cash Equivalents, at Carrying Value | $ 2,502 | $ 9,100 |
Assets, Current | 2,502 | 9,100 |
Assets | 2,502 | 9,100 |
Liabilities, Noncurrent | ||
Due to Related Parties, Noncurrent | 306 | 306 |
Liabilities | 306 | 306 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | ||
Common Stock, Value, Issued | 9,000 | 9,000 |
Retained Earnings (Accumulated Deficit) | (6,804) | (206) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,196 | 8,794 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures | ||
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock, Shares Issued | 9,000,000 | 9,000,000 |
Liabilities and Equity | $ 2,502 | $ 9,100 |
Related Party Disclosures
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9 Months Ended |
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Apr. 30, 2014
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Related Party Disclosures: | |
Related Party Transactions Disclosure | RELATED PARTY TRANSACTIONS
On July 25, 2013, the Company sold 9,000,000 shares of common stock at a price of $0.001 per share to its director.
Since inception through April 30, 2014, the Director loaned $306 to the Company to pay for incorporation expenses. This loan is non-interest bearing, due upon demand and unsecured. |
Subsequent Events
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9 Months Ended |
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Apr. 30, 2014
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Subsequent Events: | |
Subsequent Events | SUBSEQUENT EVENTS
The Company has evaluated subsequent events from April 30, 2014 to the date the financial statements were issued and has determined that there are no items to disclose. |
Statement of Income (USD $)
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1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended |
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Apr. 30, 2013
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Apr. 30, 2014
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Apr. 30, 2014
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Apr. 30, 2014
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Operating Expenses | ||||
General and Administrative Expense | $ 206 | $ 1,042 | $ 6,598 | $ 6,804 |
Operating Expenses | 206 | 1,042 | 6,598 | 6,804 |
Operating Income (Loss) | (206) | (1,042) | (6,598) | (6,804) |
Net Income (Loss) Attributable to Parent | $ (206) | $ (1,042) | $ (6,598) | $ (6,804) |
Earnings Per Share | ||||
Earnings Per Share, Basic | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted Average Number of Shares Outstanding, Basic | 9,000,000 | 9,000,000 |
Document and Entity Information
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9 Months Ended |
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Apr. 30, 2014
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Document and Entity Information: | |
Entity Registrant Name | DANLAX, CORP. |
Document Type | 10-Q |
Document Period End Date | Apr. 30, 2014 |
Amendment Flag | false |
Entity Central Index Key | 0001584754 |
Current Fiscal Year End Date | --07-31 |
Entity Common Stock, Shares Outstanding | 9,000,000 |
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 | 2014 |
Document Fiscal Period Focus | Q3 |
Statement of Cash Flows (USD $)
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1 Months Ended | 9 Months Ended | 12 Months Ended |
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Apr. 30, 2013
|
Apr. 30, 2014
|
Apr. 30, 2014
|
|
Net Cash Provided by (Used in) Operating Activities | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (206) | $ (6,598) | $ (6,804) |
Net Cash Provided by (Used in) Operating Activities | (206) | (6,598) | (6,804) |
Net Cash Provided by (Used in) Financing Activities | |||
Proceeds from Issuance of Common Stock | 9,000 | ||
Proceeds from loans | 206 | 306 | |
Net Cash Provided by (Used in) Financing Activities | 206 | 0 | 9,306 |
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | (6,598) | 2,502 |
Cash and Cash Equivalents, at Carrying Value | 9,100 | ||
Cash and Cash Equivalents, at Carrying Value | $ 0 | $ 2,502 | $ 2,502 |
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Organization, Consolidation and Presentation of Financial Statements
|
9 Months Ended |
---|---|
Apr. 30, 2014
|
|
Organization, Consolidation and Presentation of Financial Statements: | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Description of Business DANLAX, CORP. (the Company) was incorporated under the laws of the State of Nevada, U.S. on April 10, 2013. The Company is in the development stage as defined under Statement on Financial Accounting Standards Accounting Standards Codification FASB ASC 915-205 "Development-Stage Entities. Since inception through April 30, 2014 the Company has not generated any revenue and has accumulated losses of $6,804. Company is in the business of mobile games development.
Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.
The Company's bank accounts are deposited in insured institutions. The funds are insured up to $250,000. At April 30, 2014 the Company's bank deposits did not exceed the insured amounts.
Basic Income (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.
Dividends The Company has not adopted any policy regarding payment of dividends. No dividends have been paid during any of the periods shown.
Income Taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
Advertising Costs The Companys policy regarding advertising is to expense advertising when incurred. The Company incurred advertising expense of $0 during the period ended April 30, 2014.
Accounting Basis The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (GAAP accounting). The Company has adopted July 31 fiscal year end.
Impairment of Long-Lived Assets The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.
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.
Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Stock-Based Compensation As of April 30, 2014 the Company has not issued any stock-based payments to its employees. Stock-based compensation is accounted for at fair value in accordance with SFAS No. 123 and 123(R) (ASC 718). To date, the Company has not adopted a stock option plan and has not granted any stock options.
Revenue Recognition The Company will recognize revenue when products are fully delivered or services have been provided and collection is reasonably assured.
CONDENSED FINANCIAL STATEMENTS
The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial positions, results of operations, and cash flows on April 30, 2014, and for all periods presented herein, have been made.
Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Companys July 31, 2013 audited financial statements. The results of operations for the nine months ended April 30, 2014 are not necessarily indicative of the operating results for the full year.
GOING CONCERN
The accompanying financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern. However, the Company had no revenues as of April 30, 2014. The Company currently has limited working capital, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time.
Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of managements efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.
COMMON STOCK
The Company has 75,000,000 common shares authorized with a par value of $ 0.001 per share. On July 25, 2013, the Company issued 9,000,000 shares of its common stock at $0.001 per share for total proceeds of $9,000.
As of April 30, 2014, the Company had 9,000,000 shares issued and outstanding. |