0001079974-15-000357.txt : 20150514 0001079974-15-000357.hdr.sgml : 20150514 20150514155208 ACCESSION NUMBER: 0001079974-15-000357 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20150331 FILED AS OF DATE: 20150514 DATE AS OF CHANGE: 20150514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SPATIALIZER AUDIO LABORATORIES INC CENTRAL INDEX KEY: 0000890821 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 954484725 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-26460 FILM NUMBER: 15862651 BUSINESS ADDRESS: STREET 1: 2025 GATEWAY PLACE STREET 2: SUITE 365 CITY: SAN JOSE STATE: CA ZIP: 95110 BUSINESS PHONE: 3102273370 MAIL ADDRESS: STREET 1: 2625 TOWNSGATE ROAD STREET 2: SUITE 330 CITY: WESTLAKE VILLAGE STATE: CA ZIP: 91361 10-Q 1 spzr10q3312015.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
x
QUARTERLY REPORT UNDER SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended March 31, 2015
   
o
TRANSITION REPORT UNDER SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from                to                .
 
Commission File Number 000-26460  
 
SPATIALIZER AUDIO LABORATORIES, INC.
(Name of registrant in its charter)
     
DELAWARE
 
95-4484725
(State or other jurisdiction of  incorporation or organization)
 
(I.R.S. Employer Identification Number)
     
53 Forest Avenue, First Floor, Old Greenwich, Connecticut 
 
06870
(Address of principal executive offices)
 
(Zip Code)
     
(203) 489-9500
(Issuer’s telephone number, including area code)  
 
 
(Former name, former address and former fiscal year, if changed since last report.)
 
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 twelve 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 ninety days.     YES  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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  YES  NO
 
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” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o
 
Accelerated filer o
Non-accelerated filer o
(Do not check if a smaller reporting company)
 
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.):    x YES o NO
 

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 15,409,999 shares of Common Stock, $0.01 par value, as of May 8, 2015.
 
 

 
 
 
SPATIALIZER AUDIO LABORATORIES, INC.
Quarterly Report on Form 10-Q
For the Three Months Ended March 31, 2015
INDEX

PART I. FINANCIAL INFORMATION
2
     
Item 1.
Unaudited Financial Statements
2
     
 
Balance Sheets as of March 31, 2015 and December 31, 2014
 2
 
 
Statements of Operations for the Three Months Ended March 31, 2015 and March 31, 2014
3
 
 
Statements of Cash Flows for the Three Months Ended March 31, 2015 and March 31, 2014
4
 
 
Notes to Unaudited Financial Statements
5-7
     
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
8-9
     
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
9
     
Item 4.
Risk Controls and Procedures
9
     
PART II. OTHER INFORMATION
 
 
Item 1.
Legal Proceedings
10
 
Item 1a.
Risk Factors
10
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
10
 
Item 3.
Defaults Upon Senior Securities
10
 
Item 4.
Mine Safety Disclosures
10
 
Item 5.
Other Information
10
 
Item 6.
Exhibits
11
     
Signatures
12
   
Exhibits
13

- 1 -


 
 
PART I. FINANCIAL INFORMATION

Item 1.   Financial Statements


SPATIALIZER AUDIO LABORATORIES, INC.
UNAUDITED BALANCE SHEETS
 
 
 
March 31,
2015
   
December 31,
2014
 
ASSETS
 
 
 
   
 
Current Assets:
 
   
 
Cash and Cash Equivalents
 
$
3,898
   
$
5,085
 
 
               
Total Current Assets
   
3,898
     
5,085
 
 
               
Total Assets
 
$
3,898
   
$
5,085
 
 
               
LIABILITIES AND STOCKHOLDERS' DEFICIT
 
 
               
Current Liabilities:
               
Accounts Payable and Accrued Liabilities
 
$
10,344
   
$
8,956
 
 
               
Total Current Liabilities
   
10,344
     
8,956
 
 
               
Commitments and Contingencies
               
 
               
Stockholders' Equity (Deficit):
               
Preferred shares, $.01 par value, 1,000,000 shares authorized, none issued and outstanding
   
--
     
--
 
Common shares, $.01 par value, 300,000,000 shares authorized, 15,409,999 shares issued and outstanding
   
154,099
     
154,099
 
Additional Paid-In Capital
   
47,268,208
     
47,268,208
 
Accumulated Deficit
   
(47,428,753
)
   
(47,426,178
)
 
               
Total Stockholders' Deficit
   
(6,446
)
   
(3,871
)
 
               
Total Liabilities and Stockholders' Deficit
 
$
3,898
   
$
5,085
 
 
The accompanying notes are an integral part of these statements.
 
- 2 -

 
 
 
 SPATIALIZER AUDIO LABORATORIES, INC.
UNAUDITED STATEMENTS OF OPERATIONS
 
 
 
Three Months Ended March 31,
 
 
 
2015
   
2014
 
Operating Expenses :
 
   
 
General and Administrative
 
$
2,300
   
$
7,584
 
 
               
Operating Loss
   
(2,300
)
   
(7,584
)
 
               
Loss Before Income Taxes
   
(2,300
)
   
(7,584
)
Income Taxes
   
275
     
283
 
 
               
Net Loss
 
$
(2,575
)
 
$
(7,867
)
Basic and Diluted Loss Per Share
 
$
(0.00
)
 
$
(0.00
)
Weighted Average Shares Outstanding – Basic and Diluted
   
15,409,999
     
14,901,647
 
 
The accompanying notes are an integral part of these statements.
 
- 3 -

 

 
SPATIALIZER AUDIO LABORATORIES, INC.
UNAUDITED STATEMENTS OF CASH FLOWS
 
 
 
Three Months Ended March 31,
 
 
 
2015
   
2014
 
Cash Flows from Operating Activities:
 
   
 
Net Loss
 
$
(2,575
)
 
$
(7,867
)
Adjustments to reconcile net loss to net cash used in operating activities:
               
Net Change in Assets and Liabilities:
               
Accounts Payable and Accrued Liabilities
   
1,388
     
(19,912
)
Net Cash Used In Operating Activities
   
(1,187
)
   
(27,779
)
 
               
Cash Flows from Financing Activities:
               
Issuance of Common Stock
   
-
     
50,000
 
Net Cash Provided from Financing Activities
   
-
     
50,000
 
 
               
Increase (decrease) in Cash and Cash Equivalents
   
(1,187
)
   
22,221
 
 
               
Cash and Cash Equivalents, Beginning of Period
   
5,085
     
249
 
Cash and Cash Equivalents, End of Period
 
$
3,898
   
$
22,470
 
Supplemental Disclosure of Cash Flow Information:
               
Cash paid during the period for:
               
Interest
 
$
-
   
$
-
 
Income Taxes
   
275
     
1,732
 
 
The accompanying notes are an integral part of these statements.
 
- 4 -


 
SPATIALIZER AUDIO LABORATORIES, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
March 31, 2015

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations
Spatializer Audio Laboratories, Inc. (the "Company") was incorporated under the laws of Delaware in 1994.  Until 2007, the Company was a developer, licensor and marketer of next generation technologies for the consumer electronics, personal computing, entertainment and cellular telephone markets. The principal business of the Company was closed down in 2007, and the Company has no further operating activities and is now a shell company.

Going Concern
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has concluded that it should look for acquisitions or identify a merger partner.  There can be no assurances that the Company will be successful in completing such a transaction or be able to maintain sufficient liquidity over a period of time that will allow it to carry out these actions, in which case the Company might be forced to liquidate or seek protection under the Federal bankruptcy statutes, or both.

The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.

The Company is quoted on the OTCQB of the OTC Marketplace under the symbol "SPZR".

Basis of presentation
The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with instructions to Form 10-Q. Accordingly they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2014.

Accounting Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires that management 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 may differ from those estimates.

Cash Equivalents
For the purposes of the statements of cash flows, the Company considers all highly liquid cash investments that mature in three months or less when purchased, to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value.

Stock Options
Compensation cost relating to stock-based payments, including grants of employee stock options, is recognized in financial statements based on the fair value of the equity instruments issued on the grant date.  The Company recognized the fair value of stock-based compensation awards as compensation expense in its statement of operations on a straight line basis, over the vesting period.
- 5 -




SPATIALIZER AUDIO LABORATORIES, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
March 31, 2015

Income Taxes
Income taxes are provided under the asset and liability method and reflect the net tax effects of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The Company establishes valuation allowances when the realization of specific deferred tax assets is subject to significant uncertainty. The Company records no tax benefits on its operating losses, as the losses will have to be carried forward and realization of any benefit is uncertain.

Earnings Per Share
Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Since the Company generated net losses in each of the periods presented, outstanding stock options would have been anti-dilutive and were not considered in these calculations.

Fair Value of Financial Instruments
The carrying values of the Company's current assets and liabilities approximated fair value due to their short maturity or nature.

Recently Issued Accounting Pronouncements
In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which provides guidance under U.S. GAAP about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The ASU is effective for all entities and for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The adoption of ASU No. 2014-15 is not expected to have a significant impact on the Company's financial statements and related disclosures.


2. INCOME TAXES

At March 31, 2015, the Company had net operating loss carry-forwards for Federal income tax purposes of which may be available to offset future Federal taxable income, if any. These net operating loss carry forwards are subject to an annual limitation and utilization of these loss carryforwards is subject to further limitation as a result of change in ownership of the Company, as defined by Federal tax law. Management believes these loss-carryforwards will likely not be fully realized.

The Company's income tax returns remain subject to examination for the years 2011 through 2014 for federal and state purposes.

 

3. STOCK OPTION PLAN

There are no outstanding stock options as of March 31, 2015.
- 6 -




SPATIALIZER AUDIO LABORATORIES, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
March 31, 2015



4. STOCKHOLDERS' EQUITY

On January 15, 2014, the Company issued 3,267,974 shares of common stock to Lone Star Value Investors, LP, an entity controlled by a former director and officer of the Company, for cash proceeds of $50,000.  The proceeds of this issuance are used to assist in funding the Company's operating expenses.


 5. SUBSEQUENT EVENTS

On April 17, 2015, the Company issued a Promissory Note (the "Note") in the principal amount of $50,000 to Lone Star Value Investors, LP. Under the terms of the Note, interest on the outstanding principal amount accrues at a rate of 10% per annum, and all amounts outstanding under this Note are due and payable on or before April 30, 2020. The Company intends to use the proceeds for legal and operating expenses.

 On April 20, 2015, the Board of Directors of the Company was granted discretionary authority to implement a reverse stock split of the outstanding shares of common stock on the basis of one post-reverse split share for up to every 18 pre-reverse split shares to occur as soon as practicable, with the exact time of the reverse stock split and the exchange ratio of the reverse split to be determined by the Board of Directors of the Company.  A proposed 1-for-18 reverse stock split of the outstanding shares of common stock would reduce the outstanding shares of common stock from 15,409,999 shares to approximately 875,000 shares.

The Board of Directors was also granted discretionary authority to file a Certificate of Amendment of the Certificate of Incorporation that will decrease the authorized number of shares of the Company's common stock to 100,000,000 shares. The Board was also granted discretionary authority to file a Certificate of Amendment of the Certificate of Incorporation that will change the name of the Company to AMERI Holdings, Inc. Further the Board of Directors was granted discretionary authority to adopt the 2015 Equity Incentive Award Plan (the "Plan") and granted discretionary authority to the executive officers to implement and administer the Plan.


- 7 -



SPATIALIZER AUDIO LABORATORIES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
March 31, 2015
 
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
 
FORWARD-LOOKING STATEMENTS

This Management's Discussion and Analysis and other parts of this report contain forward-looking statements that involve risks and uncertainties, as well as current expectations and assumptions. From time to time, the Company may publish forward-looking statements, including those that are contained in this report, relating to such matters as anticipated financial performance, business prospects, technological developments, new products, research and development activities and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. The risks and uncertainties that may affect the operations, performance, development and results of the Company's business include, but are not limited to, its ability to maintain sufficient working capital, adverse changes in the economy, the ability to attract and maintain key personnel, its ability to identify or complete an acceptable merger or acquisition, and future results related to acquisition, merger or investment activities. The Company's actual results could differ materially from those anticipated in these forward-looking statements, including those set forth elsewhere in this report. The Company assumes no obligation to update any such forward-looking statements.

CRITICAL ACCOUNTING POLICIES AND COMMENTS RELATED TO OPERATIONS

This discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.

There have been no material changes or developments in the Company's evaluation of the accounting estimates and the underlying assumptions or methodologies that it believes to be Critical Accounting Policies and Estimates as disclosed in its Form 10-K for the year ended December 31, 2014.

Management's Discussion included in the Form 10-K for the year ended December 31, 2014 includes discussion of various factors and items related to the Company's results of operations and liquidity. There have been no other significant changes in most of the factors discussed in the Form 10-K other than those indicated within the section "Subsequent Events" within Item 1 above. Many of the items discussed in the Form 10-K are relevant to 2015 operations; thus the reader of this report should read Management's Discussion included in Form 10-K for the year ended December 31, 2014 and Informational Statements filed in May 2015.
 
RESULTS OF OPERATIONS

Revenues
Revenues for the three months ended March 31, 2015 were zero, since all operations were discontinued as of September 30, 2007.

General and Administrative
General and administrative expenses for the three months ended March 31, 2015 and March 31, 2014 were $2,300 and $7,584, respectively.  The decrease is due to decreased legal fees.
- 8 -




SPATIALIZER AUDIO LABORATORIES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
March 31, 2015
 

LIQUIDITY AND CAPITAL RESOURCES

The Company has undertaken steps to reduce its expenses and improve the Company's liquidity, including the previous sale and discontinuance of all operations.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. However, the Company currently has no operating activities. There can be no assurances that the Company will be able to successfully complete a merger or acquisition or be able to maintain sufficient liquidity to continue to seek a merger or acquisition, in which case the Company might be forced to liquidate or seek protection under the Federal bankruptcy statutes, or both.

Net cash used by operating activities during the three months ended March 31, 2015 was $1,187 compared to $27,779 in the comparable period of 2014. The decrease was due to a decrease in accounts payable and accrued liabilities during the quarterly period ended March 31, 2014 and a decrease in the net loss in 2015 as compared to 2014.


Item 3.   Quantitative and Qualitative Disclosures About Market Risk
 

Not applicable.


Item 4.   Risk Controls and Procedures
 

(a) Evaluation of Disclosure Controls and Procedures.  The Principal Executive Officer and Principal Financial Officer evaluated the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer concluded that the disclosure controls and procedures as of the end of the period covered by this report were effective such that the information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (ii) accumulated and communicated to the Principal Executive Officer and Principal Financial Officer to allow timely decisions regarding disclosure. A controls system cannot provide absolute assurance, however, that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

(b) Changes in Internal Control over Financial Reporting. There were no changes in the Company's internal controls over financial reporting, known to the Principal Executive Officer and Principal Financial Officer,that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

- 9 -



SPATIALIZER AUDIO LABORATORIES, INC.
OTHER INFORMATION
March 31, 2015
PART II - OTHER INFORMATION


Item 1. Legal Proceedings

None.
 

Item 1a. Risk Factors

In addition to the other information set forth in this Quarterly Report, stockholders should carefully consider the factors discussed in Item 1A, Risk Factors, of our Annual Report on Form 10-K for the year ended December 31, 2014, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

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

None.
 

Item 3. Defaults Upon Senior Securities

None.
 

Item 4. Mine Safety Disclosures

Not applicable.
 

Item 5. Other Information

On April 17, 2015, the Company issued a Promissory Note (the "Note") in the principal amount of $50,000 to Lone Star Value Investors, LP. Under the terms of the Note, interest on the outstanding principal amount accrues at a rate of 10% per annum, and all amounts outstanding under this Note are due and payable on or before April 30, 2020. The Company intends to use the proceeds for legal and operating expenses.

 On April 20, 2015, the Board of Directors of the Company was granted discretionary authority to implement a reverse stock split of the outstanding shares of common stock on the basis of one post-reverse split share for up to every 18 pre-reverse split shares to occur as soon as practicable, with the exact time of the reverse stock split and the exchange ratio of the reverse split to be determined by the Board of Directors of the Company.  A proposed 1-for-18 reverse stock split of the outstanding shares of common stock would reduce the outstanding shares of common stock from 15,409,999 shares to approximately 875,000 shares.

The Board of Directors was also granted discretionary authority to file a Certificate of Amendment of the Certificate of Incorporation that will decrease the authorized number of shares of the Company's common stock to 100,000,000 shares. The Board was also granted discretionary authority to file a Certificate of Amendment of the Certificate of Incorporation that will change the name of the Company to AMERI Holdings, Inc. Further the Board of Directors was granted discretionary authority to adopt the 2015 Equity Incentive Award Plan (the "Plan") and granted discretionary authority to the executive officers to implement and administer the Plan.
- 10 -




Many of the items discussed in the Schedule 14C are relevant to shareholder's ownership and rights; thus the reader of this report should fully read the information contained within the Schedule 14C filed on May 6, 2015.
 
 
Item  6.
Exhibits:
 
The following exhibits are filed as part of this report:

31.1
  
CEO Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as Amended.
 
 
 
31.2
  
CFO Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as Amended.
 
 
 
32.1
  
CEO Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 
 
32.2
  
CFO Certification Pursuant to 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: (i) the Balance Sheets, (ii) the Statements of Operations, (iii) the Statements of Cash Flows and (iv) the Notes to Consolidated Financial Statements, tagged as blocks of text and in detail (XBRL).
 

- 11 -

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.

   
SPATIALIZER AUDIO LABORATORIES, INC.
(Registrant)
May 14, 2015
 
 
 
 
/s/ Kyle Hartley
   
Kyle Hartley
   
President and Chief Executive Officer
   
 
 
 
/s/ Kyle Hartley
   
Kyle Hartley
   
Chief Financial Officer
 




.
- 12 -




INDEX TO EXHIBITS
 
 

Exhibit No.
 
Description
 
 
 
31.1
  
CEO Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as Amended.
 
 
 
31.2
  
CFO Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as Amended.
 
 
 
32.1
  
CEO Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 
 
32.2
  
CFO Certification Pursuant to 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: (i) the Balance Sheets, (ii) the Statements of Operations, (iii) the Statements of Cash Flows and (iv) the Notes to Consolidated Financial Statements, tagged as blocks of text and in detail (XBRL).
                     
 
** 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.
 

- 13 -

EX-31.1 2 ex31_1.htm ex31_1.htm
Exhibit 31.1

CERTIFICATION BY KYLE HARTLEY PURSUANT TO SECURITIES EXCHANGE ACT RULE 13(A)-14(A)

I, Kyle Hartley, certify that:
 
 
1.
I have reviewed this quarterly report on Form 10-Q of Spatializer Audio Laboratories, Inc. for the period ended March 31, 2015 ;
 
 
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
 
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for the periods presented in this report;
 
 
4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
 
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within that entity, 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 preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
 
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
 
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
 
5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
 
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
 
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 

Dated  May 14, 2015
 
 
 
 
/s/   Kyle Hartley
 
Kyle Hartley
 
Chief Executive Officer and Principal Executive Officer
 

 
EX-31.2 3 ex31_2.htm ex31_2.htm

Exhibit 31.2

CERTIFICATION BY KYLE HARTLEY PURSUANT TO SECURITIES EXCHANGE ACT RULE 13(A)-14(A)

I, Kyle Hartley, certify that:

 
1.
I have reviewed this quarterly report on Form 10-Q of Spatializer Audio Laboratories, Inc. for the period ended March 31, 2015 ;
 
 
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
 
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for the periods presented in this report;
 
 
4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
 
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within that entity, 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 preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
 
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
 
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
 
5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
 
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
 
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


 Date: May 14, 2015
 
 
 
/s/  Kyle Hartley
 
Kyle Hartley
 
Chief Financial Officer and Principal Financial Officer
 

EX-32.1 4 ex32_1.htm ex32_1.htm

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

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of Title 18, United States Code), the undersigned officer of Spatializer Audio Laboratories, Inc. (the “Company”) hereby certifies with respect to the Quarterly Report on Form 10-Q of the Company for the quarter ended March 31, 2015 as filed with the Securities and Exchange Commission (the “Report”) 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: May 14, 2015
 
 
 
/s/ Kyle Hartley
 
Kyle Hartley
 
Chief Executive Officer and Principal Executive Officer
 

EX-32 5 ex32_2.htm ex32_2.htm

Exhibit 32.2
 
 
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of Title 18, United States Code), the undersigned officer of Spatializer Audio Laboratories, Inc. (the “Company”) hereby certifies with respect to the Quarterly Report on Form 10-Q of the Company for the quarter ended March 31, 2015 as filed with the Securities and Exchange Commission (the “Report”) 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: May 14, 2015
 
 
 
/s/ Kyle Hartley
 
Kyle Hartley
 
Chief Financial Officer and Principal Financial Officer
 


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Is Entity a Voluntary Filer? Is Entity's Reporting Status Current? 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Basic and Diluted Statement of Cash Flows [Abstract] Cash Flows from Operating Activities: Net Loss Adjustments to reconcile net loss to net cash used in operating activities: Net Change in Assets and Liabilities: Accounts Payable and Accrued Liabilities Net Cash Used In Operating Activities Cash Flows from Financing Activities: Issuance of Common Stock Net Cash Provided by Financing Activities Increase (decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Period Cash and Cash Equivalents, End of Period Supplemental Disclosure of Cash Flow Information: Cash paid during the period for: Interest Income Taxes Notes to Financial Statements Note 1 - OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Note 2 - Income Taxes Equity [Abstract] Note 3 - STOCK OPTION PLAN Note 4 - STOCKHOLDERS' EQUITY Subsequent Events [Abstract] SUBSEQUENT EVENTS Operations And Summary Of Significant Accounting Policies Policies Nature of Operations Going Concern Basis of presentation Accounting Estimates Cash Equivalents Stock Options Income Taxes Earnings Per Share Fair Value of Financial Instruments Recently Issued Accounting Pronouncements Shares issued for cash Cash proceeds from issuance of stock Principal amount of Promissory Note issued by Company Interest rate per annum Due date of Note A proposed 1-for-18 reverse stock split of the outstanding shares of common stock Assets, Current Assets Liabilities, Current Stockholders' Equity Attributable to Parent Liabilities and Equity Operating Income (Loss) Increase (Decrease) in Accounts Payable and Accrued Liabilities Net Cash Provided by (Used in) Operating Activities Net Cash Provided by (Used in) Financing Activities Income Taxes Paid Income Tax, Policy [Policy Text Block] EX-101.PRE 10 spzr-20150331_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE EX-101.SCH 11 spzr-20150331.xsd XBRL TAXONOMY EXTENSION SCHEMA 00000001 - 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STOCKHOLDERS' EQUITY
3 Months Ended
Mar. 31, 2015
Notes to Financial Statements  
Note 4 - STOCKHOLDERS' EQUITY

4. STOCKHOLDERS' EQUITY

 

On January 15, 2014, the Company issued 3,267,974 shares of common stock to Lone Star Value Investors, LP, an entity controlled by a former director and officer of the Company, for cash proceeds of $50,000.  The proceeds of this issuance are used to assist in funding the Company's operating expenses.

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STOCK OPTION PLAN
3 Months Ended
Mar. 31, 2015
Equity [Abstract]  
Note 3 - STOCK OPTION PLAN

3. STOCK OPTION PLAN

 

There are no outstanding stock options as of March 31, 2015.

XML 18 R2.htm IDEA: XBRL DOCUMENT v2.4.1.9
UNAUDITED BALANCE SHEETS (USD $)
Mar. 31, 2015
Dec. 31, 2014
Current Assets:    
Cash and Cash Equivalents $ 3,898us-gaap_CashAndCashEquivalentsAtCarryingValue $ 5,085us-gaap_CashAndCashEquivalentsAtCarryingValue
Total Current Assets 3,898us-gaap_AssetsCurrent 5,085us-gaap_AssetsCurrent
Total Assets 3,898us-gaap_Assets 5,085us-gaap_Assets
Current Liabilities:    
Accounts Payable and Accrued Liabilities 10,344us-gaap_AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent 8,956us-gaap_AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent
Total Current Liabilities 10,344us-gaap_LiabilitiesCurrent 8,956us-gaap_LiabilitiesCurrent
Stockholders' Equity (Deficit):    
Preferred shares, $.01 par value, 1,000,000 shares authorized, none issued and outstanding      
Common shares, $.01 par value, 300,000,000 shares authorized, 15,409,999 shares issued and outstanding 154,099us-gaap_CommonStockValue 154,099us-gaap_CommonStockValue
Additional Paid-In Capital 47,268,208us-gaap_AdditionalPaidInCapitalCommonStock 47,268,208us-gaap_AdditionalPaidInCapitalCommonStock
Accumulated Deficit (47,428,753)us-gaap_RetainedEarningsAccumulatedDeficit (47,426,178)us-gaap_RetainedEarningsAccumulatedDeficit
Total Stockholders' Deficit (6,446)us-gaap_StockholdersEquity (3,871)us-gaap_StockholdersEquity
Total Liabilities and Stockholders' Deficit $ 3,898us-gaap_LiabilitiesAndStockholdersEquity $ 5,085us-gaap_LiabilitiesAndStockholdersEquity
XML 19 R6.htm IDEA: XBRL DOCUMENT v2.4.1.9
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Mar. 31, 2015
Notes to Financial Statements  
Note 1 - OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Nature of Operations

Spatializer Audio Laboratories, Inc. (the "Company") was incorporated under the laws of Delaware in 1994.  Until 2007, the Company was a developer, licensor and marketer of next generation technologies for the consumer electronics, personal computing, entertainment and cellular telephone markets. The principal business of the Company was closed down in 2007, and the Company has no further operating activities and is now a shell company.

 

Going Concern

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has concluded that it should look for acquisitions or identify a merger partner.  There can be no assurances that the Company will be successful in completing such a transaction or be able to maintain sufficient liquidity over a period of time that will allow it to carry out these actions, in which case the Company might be forced to liquidate or seek protection under the Federal bankruptcy statutes, or both.

 

The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.

 

The Company is quoted on the OTCQB of the OTC Marketplace under the symbol "SPZR".

 

Basis of presentation

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with instructions to Form 10-Q. Accordingly they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

 

For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2014.

 

Accounting Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires that management 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 may differ from those estimates.

 

Cash Equivalents

For the purposes of the statements of cash flows, the Company considers all highly liquid cash investments that mature in three months or less when purchased, to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value.

 

Stock Options

Compensation cost relating to stock-based payments, including grants of employee stock options, is recognized in financial statements based on the fair value of the equity instruments issued on the grant date.  The Company recognized the fair value of stock-based compensation awards as compensation expense in its statement of operations on a straight line basis, over the vesting period.

 

Income Taxes

Income taxes are provided under the asset and liability method and reflect the net tax effects of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The Company establishes valuation allowances when the realization of specific deferred tax assets is subject to significant uncertainty. The Company records no tax benefits on its operating losses, as the losses will have to be carried forward and realization of any benefit is uncertain.

 

Earnings Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Since the Company generated net losses in each of the periods presented, outstanding stock options would have been anti-dilutive and were not considered in these calculations.

 

Fair Value of Financial Instruments

The carrying values of the Company's current assets and liabilities approximated fair value due to their short maturity or nature.

 

Recently Issued Accounting Pronouncements

In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which provides guidance under U.S. GAAP about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The ASU is effective for all entities and for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The adoption of ASU No. 2014-15 is not expected to have a significant impact on the Company's financial statements and related disclosures.

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INCOME TAXES
3 Months Ended
Mar. 31, 2015
Notes to Financial Statements  
Note 2 - Income Taxes

2. INCOME TAXES

 

At March 31, 2015, the Company had net operating loss carry-forwards for Federal income tax purposes of which may be available to offset future Federal taxable income, if any. These net operating loss carry forwards are subject to an annual limitation and utilization of these loss carryforwards is subject to further limitation as a result of change in ownership of the Company, as defined by Federal tax law. Management believes these loss-carryforwards will likely not be fully realized.

 

The Company's income tax returns remain subject to examination for the years 2011 through 2014 for federal and state purposes.

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UNAUDITED BALANCE SHEETS (Parenthetical) (USD $)
Mar. 31, 2015
Dec. 31, 2014
Stockholders' Equity (Deficit):    
Preferred stock, par value $ 0.01us-gaap_PreferredStockParOrStatedValuePerShare $ 0.01us-gaap_PreferredStockParOrStatedValuePerShare
Preferred stock, authorized shares 1,000,000us-gaap_PreferredStockSharesAuthorized 1,000,000us-gaap_PreferredStockSharesAuthorized
Preferred stock, issued shares 0us-gaap_PreferredStockSharesIssued 0us-gaap_PreferredStockSharesIssued
Preferred stock, outstanding shares 0us-gaap_PreferredStockSharesOutstanding 0us-gaap_PreferredStockSharesOutstanding
Common stock, par value $ 0.01us-gaap_CommonStockParOrStatedValuePerShare $ 0.01us-gaap_CommonStockParOrStatedValuePerShare
Common stock, authorized shares 300,000,000us-gaap_CommonStockSharesAuthorized 300,000,000us-gaap_CommonStockSharesAuthorized
Common stock, issued shares 15,409,999us-gaap_CommonStockSharesIssued 15,409,999us-gaap_CommonStockSharesIssued
Common stock, outstanding shares 15,409,999us-gaap_CommonStockSharesOutstanding 15,409,999us-gaap_CommonStockSharesOutstanding
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Document and Entity Information
3 Months Ended
Mar. 31, 2015
May 08, 2015
Document And Entity Information    
Entity Registrant Name SPATIALIZER AUDIO LABORATORIES INC  
Entity Central Index Key 0000890821  
Document Type 10-Q  
Document Period End Date Mar. 31, 2015  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Is Entity a Well-known Seasoned Issuer? No  
Is Entity a Voluntary Filer? No  
Is Entity's Reporting Status Current? Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   15,409,999dei_EntityCommonStockSharesOutstanding
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2015  
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UNAUDITED STATEMENTS OF OPERATIONS (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Operating Expenses :    
General and Administrative $ 2,300us-gaap_GeneralAndAdministrativeExpense $ 7,584us-gaap_GeneralAndAdministrativeExpense
Operating Loss (2,300)us-gaap_OperatingIncomeLoss (7,584)us-gaap_OperatingIncomeLoss
Loss Before Income Taxes (2,300)us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments (7,584)us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
Income Taxes 275us-gaap_IncomeTaxExpenseBenefit 283us-gaap_IncomeTaxExpenseBenefit
Net Loss $ (2,575)us-gaap_NetIncomeLoss $ (7,867)us-gaap_NetIncomeLoss
Basic and Diluted Loss Per Share $ 0.00us-gaap_EarningsPerShareBasicAndDiluted $ 0.00us-gaap_EarningsPerShareBasicAndDiluted
Weighted Average Shares Outstanding - Basic and Diluted 15,409,999us-gaap_WeightedAverageNumberOfSharesOutstandingBasic 14,901,647us-gaap_WeightedAverageNumberOfSharesOutstandingBasic
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STOCKHOLDERS' EQUITY (Details Narrative) (USD $)
3 Months Ended
Mar. 31, 2015
Equity [Abstract]  
Shares issued for cash 3,267,974us-gaap_StockIssuedDuringPeriodSharesIssuedForCash
Cash proceeds from issuance of stock $ 50,000us-gaap_ProceedsFromIssuanceOrSaleOfEquity
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OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Mar. 31, 2015
Operations And Summary Of Significant Accounting Policies Policies  
Nature of Operations

Spatializer Audio Laboratories, Inc. (“Spatializer” or the “Company”) was incorporated under the laws of Delaware in 1994. Until 2007, the Company was a developer, licensor and marketer of next generation technologies for the consumer electronics, personal computing, entertainment and cellular telephone markets. The principal business of the Company was closed down in 2007, and the Company has no further operating activities and is now a shell company.

Going Concern

Going Concern

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has concluded that it should look for acquisitions or identify a merger partner.  There can be no assurances that the Company will be successful in completing such a transaction or be able to maintain sufficient liquidity over a period of time that will allow it to carry out these actions, in which case the Company might be forced to liquidate or seek protection under the Federal bankruptcy statutes, or both.

 

The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.

 

The Company is quoted on the OTCQB of the OTC Marketplace under the symbol “SPZR”.

Basis of presentation

Basis of presentation

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with instructions to Form 10-Q. Accordingly they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

 

For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2014.

Accounting Estimates

Accounting Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires that management 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 may differ from those estimates.

Cash Equivalents

Cash Equivalents

For the purposes of the statements of cash flows, the Company considers all highly liquid cash investments that mature in three months or less when purchased, to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value.

Stock Options

Stock Options

Compensation cost relating to stock-based payments, including grants of employee stock options, is recognized in financial statements based on the fair value of the equity instruments issued on the grant date.  The Company recognized the fair value of stock-based compensation awards as compensation expense in its statement of operations on a straight line basis, over the vesting period.

Income Taxes

Income Taxes

Income taxes are provided under the asset and liability method and reflect the net tax effects of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The Company establishes valuation allowances when the realization of specific deferred tax assets is subject to significant uncertainty. The Company records no tax benefits on its operating losses, as the losses will have to be carried forward and realization of any benefit is uncertain.

Earnings Per Share

Earnings Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Since the Company generated net losses in each of the periods presented, outstanding stock options would have been anti-dilutive and were not considered in these calculations.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying values of the Company’s current assets and liabilities approximated fair value due to their short maturity or nature.

 

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which provides guidance under U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The ASU is effective for all entities and for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The adoption of ASU No. 2014-15 is not expected to have a significant impact on the Company’s financial statements and related disclosures.

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SUBSEQUENT EVENTS (Details Narrative) (USD $)
3 Months Ended
Mar. 31, 2015
Subsequent Events [Abstract]  
Principal amount of Promissory Note issued by Company $ 50,000us-gaap_ProceedsFromLoans
Interest rate per annum 10.00%us-gaap_DebtInstrumentInterestRateStatedPercentage
Due date of Note Apr. 30, 2020
A proposed 1-for-18 reverse stock split of the outstanding shares of common stock A proposed 1-for-18 reverse stock split of the outstanding shares of common stock would reduce the outstanding shares of common stock from 160;15,409,999 shares to approximately 875,000 shares.
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UNAUDITED STATEMENTS OF CASH FLOWS (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Cash Flows from Operating Activities:    
Net Loss $ (2,575)us-gaap_NetIncomeLoss $ (7,867)us-gaap_NetIncomeLoss
Net Change in Assets and Liabilities:    
Accounts Payable and Accrued Liabilities 1,388us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities (19,912)us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
Net Cash Used In Operating Activities (1,187)us-gaap_NetCashProvidedByUsedInOperatingActivities (27,779)us-gaap_NetCashProvidedByUsedInOperatingActivities
Cash Flows from Financing Activities:    
Issuance of Common Stock    50,000us-gaap_ProceedsFromIssuanceOfCommonStock
Net Cash Provided by Financing Activities    50,000us-gaap_NetCashProvidedByUsedInFinancingActivities
Increase (decrease) in Cash and Cash Equivalents (1,187)us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease 22,221us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease
Cash and Cash Equivalents, Beginning of Period 5,085us-gaap_CashAndCashEquivalentsAtCarryingValue 249us-gaap_CashAndCashEquivalentsAtCarryingValue
Cash and Cash Equivalents, End of Period 3,898us-gaap_CashAndCashEquivalentsAtCarryingValue 22,470us-gaap_CashAndCashEquivalentsAtCarryingValue
Cash paid during the period for:    
Interest      
Income Taxes $ 275us-gaap_IncomeTaxesPaid $ 1,732us-gaap_IncomeTaxesPaid
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SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2015
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

5. SUBSEQUENT EVENTS

 


On April 17, 2015, the Company issued a Promissory Note (the "Note") in the principal amount of $50,000 to Lone Star Value Investors, LP. Under the terms of the Note, interest on the outstanding principal amount accrues at a rate of 10% per annum, and all amounts outstanding under this Note are due and payable on or before April 30, 2020. The Company intends to use the proceeds for legal and operating expenses.

 

 On April 20, 2015, the Board of Directors of the Company was granted discretionary authority to implement a reverse stock split of the outstanding shares of common stock on the basis of one post-reverse split share for up to every 18 pre-reverse split shares to occur as soon as practicable, with the exact time of the reverse stock split and the exchange ratio of the reverse split to be determined by the Board of Directors of the Company.  A proposed 1-for-18 reverse stock split of the outstanding shares of common stock would reduce the outstanding shares of common stock from 15,409,999 shares to approximately 875,000 shares.

 

The Board of Directors was also granted discretionary authority to file a Certificate of Amendment of the Certificate of Incorporation that will decrease the authorized number of shares of the Company's common stock to 100,000,000 shares. The Board was also granted discretionary authority to file a Certificate of Amendment of the Certificate of Incorporation that will change the name of the Company to AMERI Holdings, Inc. Further the Board of Directors was granted discretionary authority to adopt the 2015 Equity Incentive Award Plan (the "Plan") and granted discretionary authority to the executive officers to implement and administer the Plan.

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