XOTC:MDRME Quarterly Report 10-Q Filing - 3/31/2012

Effective Date 3/31/2012

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended March 31, 2012

 

or

 

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

 

For the transition period from                    to                   

 

Commission File Number: 333-168983

 

Modern Mobility Aids, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

Nevada   27- 4677038

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

     
 1235 Bay St, Suite 400, Toronto, Ontario    M5R 3K4
(Address of Principal Executive Offices)   (Zip Code)

  

Registrant’s telephone number including area code: (586) 530-5605

 

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

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files.  Yes ¨  No  x

 

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.

 

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 ¨

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING

THE PRECEDING FIVE YEARS:

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ¨ No ¨

  

Applicable Only to Corporate Issuers:

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

 

Class   Outstanding as of February 15, 2011
Common Stock, $0.001 par value   195,480,000

 

 
 

 

MODERN MOBILITY AIDS, INC.

 

TABLE OF CONTENTS

 

  Page
PART I - FINANCIAL INFORMATION  
   
Item 1. Financial Statements 3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 14
Item 3. Quantitative and Qualitative Disclosures About Market Risk 16
Item 4. Controls and Procedures 16
   
PART II - OTHER INFORMATION  
   
Item 1. Legal Proceedings 17
Item 1A. Risk Factors 17
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 17
Item 3. Defaults Upon Senior Securities 17
Item 4. [Removed and Reserved] 17
Item 5. Other Information 17
Item 6. Exhibits 17
SIGNATURES 19

 

2
 

 

PART 1 – FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

MODERN MOBILITY AIDS, INC.

(A DEVELOPMENT STAGE COMPANY)

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2012

(Unaudited)

 

Consolidated Financial Statements  
   
Consolidated Balance Sheets as of March 31, 2012, and June 30, 2011 4
   
Consolidated Statements of Operations for the nine and three months ended March 31, 2012 and 2011, and Cumulative from Inception 5
   
Consolidated Statement of Stockholders’ (Deficit) for the period from Inception through March 31, 2012 6
   
Consolidated Statements of Cash Flows for the nine month Ended March 31, 2012 and 2011, and Cumulative from Inception 7
   
Notes to Consolidated Financial Statements March 31, 2012 8

 

3
 

 

MODERN MOBILITY AIDS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONSOLIDATED BALANCE SHEETS (Note 1)

(Unaudited)

 

   March 31,   June 30, 
   2012   2011 
ASSETS 
           
Current Assets:          
Cash  $1,412   $182 
Prepaid expenses   35,833    35,833 
Total current assets   37,245    36,015 
           
Total Assets  $37,245   $36,015 
           
LIABILITIES AND STOCKHOLDER'S ( DEFICIT) 
           
Current Liabilities:          
           
Accounts payable and accrued liabilities  $240,483   $55,639 
           
Due to related parties   3,403    3,403 
           
Loan from shareholders   231,435    60,525 
           
Total current liabilities   475,321    119,567 
           
Total liabilities   475,321    119,567 
           
Commitments and Contingencies          
           
Stockholders' (Deficit):          
           
Common stock, par value $0.001 per share, 200,000,000 shares authorized; 195,480,000 shares issued and outstanding in 2011, (2010: 130,000,000 shares)   9,774    9,774 
           
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized 0 issued and outstanding   -    - 
           
Additional paid in capital   55,493    55,493 
           
(Deficit) accumulated during the development stage   (503,344)   (148,819)
           
Total stockholders' (deficit)   (438,077)   (83,552)
           
Total Liabilities and Stockholder's (Deficit)  $37,245   $36,015 

 

The accompanying notes to financial statements are

an integral part of these statements.

 

4
 

 

MODERN MOBILITY AIDS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONSOLIDATED STATEMENTS OF OPERATIONS (NOTE 1)

FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2012 AND 2011, AND

CUMULATIVE FROM INCEPTION (DECEMBER 19, 2007) THROUGH

MARCH 31, 2012

(Unaudited)

 

                   Cumulative 
                   From
Inception
 
           (December 19,
2007)
 
   Three Months Ended
March 31,
   Nine Months Ended
March 31,
   Through
March 31,
 
   2012   2011   2012   2011   2012 
                     
Revenues, net  $-   $-   $-   $1,656   $9,506 
                          
Cost of Revenues   -    -    -    938    6,096 
                          
Gross Profit   -    -    -    718    3,410 
                          
Expenses:                         
                          
General and administrative-                         
                          
Accounting and audit fees   1,000    4,500    11,700    12,250    30,950 
                          
Bank charges   150    -    540    -    540 
                          
Officer compensation   -    1,500    -    4,500    6,920 
                          
Other   6,748    1,497    6,748    9,253    63,064 
                          
Consulting   77,003    -    173,058    5,500    177,679 
                          
Legal   -    -    57,339    3,220    105,863 
                          
Legal - Organization costs   88,518    -    94,729    -    90,935 
                          
Transfer agent   -    600    10,410    12,155    30,802 
                          
Total operating expenses   173,420    8,097    354,524    46,878    506,754 
                          
(Loss) from Operations   (173,420)   (8,097)   (354,524)   (46,160)   (503,344)
    -    -                
Other Income (Expense)   -    -    -         - 
                          
Provision for Income Taxes   -    -    -         - 
                          
Net (Loss)  $(173,420)  $(8,097)  $(354,524)  $(46,160)  $(503,344)
                          
(Loss) Per Common Share:                         
(Loss) per common share - Basic and Diluted  $(0.00)  $(0.00)  $(0.00)  $(0.01)     
                          
Weighted Average Number of Common Shares Outstanding - Basic and Diluted   195,480,000    8,111,043    195,480,000    7,305,522      

   

The accompanying notes to financial statements are

an integral part of these statements.

 

5
 

 

MODERN MOBILITY AIDS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONSOLIDATED STATEMENT OF STOCKHOLDERS' (DEFICIT) (NOTE 1)

FOR THE PERIOD FROM INCEPTION (DECEMBER 19, 2007)

THROUGH MARCH 31, 2012

(Unaudited)

 

               (Deficit)     
               Accumulated     
           Additional   During the     
   Common stock    Paid-in   Development     
Description  Shares   Amount   Capital   Stage   Total 
                     
Balance - December 19, 2007   -   $-   $-   $-   $- 
                          
Net (loss) for the period   -    -    -    (1,106)   (1,106)
                          
Balance - June 30, 2008   -    -    -    (1,106)   (1,106)
                          
Net (loss) for the year   -    -    -    (661)   (661)
                          
Balance - June 30, 2009   -    -    -    (1,767)   (1,767)
                          
Common stock issued for cash at $0.001 per share   130,000,000    6,500    -    -    6,500 
                          
Net (loss) for the year   -    -    -    (8,777)   (8,777)
                          
Balance - June 30, 2010   130,000,000    6,500    -    (10,544)   (4,044)
                          
Common stock issued for cash at $0.0125 per share   65,480,000    3,274    55,493    -    58,767 
                          
Net (loss) for the year   -    -    -    (138,275)   (138,275)
                          
Balance - June 30, 2011 (Forward split 20 for 1)   195,480,000    9,774    55,493    (148,819)   (83,552)
                          
Net (loss) for the period - Sept 30   -    -    -    (128,366)   (128,366)
                          
Net (loss) for the period - Dec 31   -    -    -    (52,739)   (52,739)
                          
Net (loss) for the period - Mar 31   -    -    -    (173,420)   (173,420)
                          
Balance - March 31, 2012   195,480,000    9,774    55,493   $(503,344)  $(438,077)

  

The accompanying notes to financial statements are

an integral part of this statement.

 

6
 

 

MODERN MOBILITY AIDS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONSOLIDATED STATEMENTS OF CASH FLOW (NOTE 1)

FOR THE NINE MONTH PERIOD ENDED MARCH 31, 2012 AND 2011, AND

CUMULATIVE FROM INCEPTION (DECEMBER 19, 2007) THROUGH

MARCH 31, 2012

(Unaudited)

 

       Cumulative 
       From Inception 
   Nine Months Ended   (December 19, 2007) 
   March 31,   Through Mar 31, 
   2012   2011   2012 
             
Operating Activities:               
Net (loss)  $(354,524)  $(46,160)  $(503,344)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:               
Changes in Current Assets and Liabilities-               
                
Prepaid expenses   -    -    (35,833)
                
Accounts payable and accrued liabilities   184,844    (1,045)   240,483 
                
Net Cash (Used in) Operating Activities   (169,680)   (47,205)   (298,694)
                
Investing Activities:               
                
Purchases of property and equipment   -    -    - 
                
Net Cash (Used in) Investing Activities   -    -    - 
                
Financing Activities:               
                
Contributions from related party   -    -    17,842 
                
Proceeds from issurance of common stock   -    40,925    47,425 
                
Loan from shareholders   170,910    -    133,305 
                
Deferred offering costs   -         98,131 
                
Due to related parties   -    4,500    3,403 
                
Net Cash Provided by Financing Activities   170,910    45,425    300,106 
                
Net Increase (decrease) in Cash   1,230    (1,780)   1,412 
                
Cash - Beginning of Period   182    2,902    - 
                
Cash - End of Period  $1,412   $1,122   $1,412 
                
Supplemental Disclosure of Cash Flow Information:               
Cash paid during the period for:               
                
Interest  $-   $-   $- 
                
Income taxes  $-   $-   $- 

 

The accompanying notes to financial statements are

an integral part of these statements.

 

7
 

 

MODERN MOBILITY AIDS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2012

(Unaudited)

 

1.Summary of Significant Accounting Policies

 

Basis of Presentation and Organization

 

Modern Mobility Aids, Inc. (the “Company”) is a Nevada corporation in the development stage. The Company was incorporated under the laws of the State of Nevada on December 19, 2007 under the name Glider Inc. with a business plan to sell and distribute products for mobility challenged individuals. The Company changed its name to Modern Mobility Aids, Inc. on April 22, 2010 with an initial plan to distribute products for mobility challenged individuals.

 

In May of 2011, the business focus of the Company evolved with a rapid expansion strategy in the life sciences and healthcare industry.  A mandate was created to acquire companies within the biopharma sector, targeting innovative research and development as well as scalable manufacturing capacity in three niche market segments:

 

1.CRAM – Contract Research and Manufacturing for Life Sciences Companies
2.HEALTHCARE INNOVATION – Novel Drug and Device Delivery Format Packaging
3.BIOPHARMA PARTNERSHIPS – Strategic Development and Production Alliances

 

The Company has abandoned its historic business which has generated little operating revenue and has had limited operations to date. Its Board of Directors has determined that the Company will seek to acquire business assets or stock in companies that either have existing operations or are in the development stage with the potential for successful operations.

 

Unaudited Financial Statements

 

The accompanying financial statements of Modern Mobility Aids, Inc. as of March 31, 2012, and June, 2011, and for the nine and three months ended March 31, 2012, and 2011 and cumulative from inception, are unaudited. However, in the opinion of management, the financial statements include all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company’s financial position as of March 31, 2012, and June 30, 2011, and the results of its operations for the nine and three months and its cash flows for the nine months ended March 31, 2012 and 2011, and cumulative from inception. These results are not necessarily indicative of the results expected for the fiscal year ending June 30, 2012.  The accompanying financial statements and notes thereto do not reflect all disclosures required under accounting principles generally accepted in the United States of America.  Refer to the Company’s audited financial statements as of June 30, 2011, filed with the SEC for additional information, including significant accounting policies.

 

Principles of Consolidation

 

The Company's consolidated financial statements for the three and nine months ended March 31, 2012, include the accounts of its wholly owned subsidiaries Modern Mobility Aids, Inc., an Ontario, Canada, based company and MDRM Group (Canada) Ltd. an Ontario, Canada based company. Modern Mobility Aids, Inc. was incorporated on September 2, 2009, during the year ended June 30, 2011. MDRM Group (Canada) Ltd. was incorporated on July 14, 2011. All significant intercompany balances and transactions have been eliminated on consolidation.

 

Cash and Cash Equivalents

 

For purposes of reporting within the statements of cash flows, the Company considers all cash on hand, cash accounts not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash and cash equivalents.

 

8
 

  

MODERN MOBILITY AIDS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2012

(Unaudited)

 

Revenue Recognition

 

The Company is in the development stage and has realized minimal revenues from operations. The Company recognizes revenues when the sale and/or distribution of products is complete, risk of loss and title to the products have transferred to the customer, there is persuasive evidence of an agreement, acceptance has been approved by its customer, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is probable. Net revenues are comprised of gross revenues less expected returns, trade discounts, and customer allowances that include costs associated with off-invoice markdowns and other price reductions, as well as trade promotions and coupons. These incentive costs are recognized at the later of the date on which the Company recognized the related revenue or the date on which the Company offers the incentive.

 

Loss per Common Share

 

Basic loss per share is computed by dividing the net loss attributable to the common stockholders by the weighted average number of shares of common stock outstanding during the periods. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There were no dilutive financial instruments issued or outstanding for the periods ended March 31, 2012 and for the period from inception (December 19, 2007) through March 31, 2012.

 

Income Taxes

 

The Company accounts for income taxes pursuant to SFAS No. 109, “Accounting for Income Taxes” (“SFAS No. 109”). Under SFAS No. 109, now encompassed under ASC 740, deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences.

 

The Company maintains a valuation allowance with respect to deferred tax assets. Modern Mobility Aids establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carryforward period under the Federal tax laws.

 

Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate.

 

Fair Value of Financial Instruments

 

The Company estimates the fair value of financial instruments using the available market information and valuation methods. Considerable judgment is required in estimating fair value. Accordingly, the estimates of fair value may not be indicative of the amounts Modern Mobility Aids could realize in a current market exchange. As of March 31, 2012, the carrying value of the Company’s financial instruments approximated fair value due to the short-term nature and maturity of these instruments.

 

9
 

 

MODERN MOBILITY AIDS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2012

(Unaudited)

 

Deferred Offering Costs

 

The Company defers as other assets the direct incremental costs of raising capital until such time as the offering is completed. At the time of the completion of the offering, the costs are charged against the capital raised. Should the offering be terminated, deferred offering costs are charged to operations during the period in which the offering is terminated.

 

Impairment of Long-lived Assets

 

Capital assets are reviewed for impairment in accordance with SFAS No. 144, “Accounting for the Impairment of Disposal of Long-lived Assets,” which was adopted effective January 1, 2002. Under SFAS No. 144, now encompassed under ASC 350, these assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. An impairment charge is recognized for the amount, if any, which the carrying value of the asset exceeds the fair value. For the three month periods ended March 31, 2012, and 2011 and for the period from inception (December 19, 2007) through March 31, 2012, no events or circumstances occurred for which an evaluation of the recoverability of long-lived assets was required.

 

Advertising and Promotion

 

The Company expenses all advertising and promotion costs as incurred. The Company did not incur advertising and promotion costs during the nine month periods ended March 31, 2012, and 2011.

 

Common Stock Registration Expenses

 

The Company considers incremental costs and expenses related to the registration of equity securities with the SEC, whether by contractual arrangement as of a certain date or by demand, to be unrelated to original issuance transactions. As such, subsequent registration costs and expenses are reflected in the accompanying financial statements as general and administrative expenses, and are expensed as incurred.

 

Estimates

 

The accompanying financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment. Actual results may vary from these estimates.

 

2.         Development Stage Activities and Going Concern

 

The Company is in the development stage. During the period from December 19, 2007, through March 31, 2012, the Company was organized and incorporated, conducted a capital formation activity to raise $47,425 through the issuance of 195,480,000 (post forward split) shares of common stock, and realized $9,506 in revenues from sales.

 

During the year ended June 30, 2011, the Company’s Registration Statement on the Form S-1/A filed with the Securities and Exchange Commission was declared effective. The Company sold 65,480,000 (post forward split) common shares at $0.0125 per share for total proceeds of $40,925 pursuant to this Registration Statement. Company intends to conduct additional capital formation activities through the issuance of its common stock and to further conduct its operations.

 

10
 

 

MODERN MOBILITY AIDS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2012

(Unaudited) 

 

The Company has abandoned its historic business which has generated little operating revenue and has had limited operations to date. Its Board of Directors has determined that the Company will seek to acquire business assets or stock in companies that either have existing operations or are in the development stage with the potential for successful operations. The Company will require financing to make such acquisitions. There can be no assurance it can secure such financing or that it will be able to make such acquisitions even if financing is available. Moreover, even if it acquires business assets or a business, there can be no assurance that the acquisitions will be successfully accomplished and that our operations thereafter will be profitable.

 

While management of the Company believes that the Company will be successful in its planned operating activities under its business plan and capital formation activities, there can be no assurance that it will be successful in implementation of its business plan or the formation of sufficient capital such that it will generate adequate revenues to earn a profit or sustain its operations.

 

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United State of America, which contemplate continuation of the Company as a going concern. The Company has not established a source of revenues sufficient to cover its operating costs, and as such, has incurred an operating loss since inception. Further, as of March 31, 2012, and June 30, 2011, the Company had a working capital deficiency of $(438,077), and $(83,552), respectively. These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments or classifications that may result from the possible inability of the Company to continue as a going concern.

 

3.         Capital Stock

 

The total number of common shares authorized that may be issued by the Company is 200,000,000 shares with a par value of $0.001 per share, and 1,000,000 shares of preferred stock at par value of $0.001 per share.

 

During the year ended June 30, 2010, the Company issued 130,000,000 (post forward split) shares of common stock at $0.001 per share to its Directors for total proceeds of $6,500.

 

During the year ended June 30, 2011 the Company sold 65,480,000 (post forward split) common shares at $0.0125 per share for total proceeds of $40,925.

 

On August 18, 2011, the Company implemented a 20 for 1 forward stock split whereby each shareholder of record received an additional 19 shares of common stock for every 1 share held of record. The total number of common stock issued and outstanding as of March 31, 2012 was amended for this forward stock split.

 

As of March 31, 2012, the Company had not issued any shares nor granted any stock options under share-based compensation transactions.

 

4.         Income Taxes

 

The provision (benefit) for income taxes for the nine months ended March 31, 2012 and June 30, 2011, were as follows (assuming a 15 percent effective tax rate):

 

11
 

 

MODERN MOBILITY AIDS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2012

(Unaudited) 

 

   Nine Months Ended 
   March 31,   March 31, 
   2012   2011 
         
Current Tax Provision:          
Federal          
Taxable income  $-   $- 
           
Total current tax provision  $-   $- 
           
Deferred Tax Provision:          
Federal          
Loss carryforwards  $354,524   $6,924 
Change in valuation allowance   (354,524)   (6,924)
           
Total deferred tax provision  $-   $- 

 

The Company had deferred income tax assets as of March 31, 2012 and June 30, 2011 as follows:

 

   March 31,   June 30, 
   2012   2011 
         
Loss carryforwards  $503,344   $148,819 
Less - Valuation allowance   (503,344)   (148,819)
           
Total net deferred tax assets  $-   $- 

 

As of March 31, 2012, the Company had approximately $503,344 in tax loss carry forwards that can be utilized in future periods to reduce taxable income, and begin to expire in the year 2028.

 

The Company provided a valuation allowance equal to the deferred income tax assets for the three months ended March 31, 2012 and June 30, 2011 because it is not presently known whether future taxable income will be sufficient to utilize the loss carry forwards.

 

5.         Shareholder Loan

 

The loan payable is payable on demand, unsecured and bears no interest. The loan shall be payable on demand within five (5) days from the date of request. In the event payment is not timely made, interest will accrue on the unpaid balance at the rate of 15% per annum, compounded monthly, from and after the date of such failure to pay. As of March 31, 2012, the loan consisted of $101,175 principal and accrued interest of $Nil.

 

6.         Related Party Transactions

 

During the nine months ended March 31, 2012, management services of $0 (March 31, 2011: $6,000) were charged to operations. Previously, a former President and Chief Financial Officer of the Company provided management services to the Company.

 

12
 

 

MODERN MOBILITY AIDS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2012

(Unaudited)

 

On May 26, 2011 the Company settled the amounts due to the former directors and officers of the company ($17,482) for management services and expenses incurred on behalf of the company and recorded this amount as contributed additional paid in capital.

 

As of March 31, 2012, the Company owed $3,403 to its former President for expenses incurred on behalf of the Company (June 30, 2011: $3,403). Such amounts are unsecured, non-interest bearing, and payable on demand.

 

7.         Recent Accounting Pronouncements

 

In May 2011, the FASB issued the FASB Accounting Standards Update No. 2011-04 “Fair Value Measurement” (“ASU 2011-04”). This amendment and guidance are the result of the work by the FASB and the IASB to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. GAAP and International Financial Reporting Standards (IFRSs).

 

This update does not modify the requirements for when fair value measurements apply; rather, they generally represent clarifications on how to measure and disclose fair value under ASC 820, Fair Value Measurement, including the following revisions:

 

·An entity that holds a group of financial assets and financial liabilities whose market risk (that is, interest rate risk, currency risk, or other price risk) and credit risk are managed on the basis of the entity’s net risk exposure may apply an exception to the fair value requirements in ASC 820 if certain criteria are met. The exception allows such financial instruments to be measured on the basis of the reporting entity’s net, rather than gross, exposure to those risks.

 

·In the absence of a Level 1 input, a reporting entity should apply premiums or discounts when market participants would do so when pricing the asset or liability consistent with the unit of account.

 

·Additional disclosures about fair value measurements.

 

The amendments in this Update are to be applied prospectively and are effective for public entity during interim and annual periods beginning after December 15, 2011.

 

In June 2011, the FASB issued the FASB Accounting Standards Update No. 2011-05 “ Comprehensive Income (“ASU 2011-05”), which was the result of a joint project with the IASB and amends the guidance in ASC 220, Comprehensive Income, by eliminating the option to present components of other comprehensive income (OCI) in the statement of stockholders’ equity. Instead, the new guidance now gives entities the option to present all nonowner changes in stockholders’ equity either as a single continuous statement of comprehensive income or as two separate but consecutive statements. Regardless of whether an entity chooses to present comprehensive income in a single continuous statement or in two separate but consecutive statements, the amendments require entities to present all reclassification adjustments from OCI to net income on the face of the statement of comprehensive income.

 

The amendments in this Update should be applied retrospectively and are effective for public entity for fiscal years, and interim periods within those years, beginning after December 15, 2011.

 

13
 

 

Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

 

Note 8 – Subsequent Events

 

The Company has evaluated all events that occurred after the balance sheet date through the date when the financial statements were issued to determine if they must be reported. The Management of the Company determined that there are no reportable events.

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Forward-Looking Statements and Associated Risks.

 

The following discussion should be read in conjunction with the financial statements and the notes to those statements included elsewhere in this Quarterly Report on Form 10-Q. This Quarterly Report on Form 10-Q contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements contained in the MD&A are forward-looking statements that involve risks and uncertainties. The forward-looking statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our industry, business and future financial results. Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those discussed in other sections of this Quarterly Report on Form 10-Q.

 

We have generated revenues of $9,506 since inception and have incurred $503,344 in operating expenses through March 31, 2012.

 

The following table provides selected financial data about our company for the periods ended March 31, 2012 and June 30, 2011.

 

 

Balance Sheet Data:  12/31/11   06/30/11 
         
Cash  $1,412   $182 
Total assets  $37,245   $36,015 
Total liabilities  $475,321   $119,567 
Shareholders' equity  $(438,077)  $(83,552)

 

Plan of Operation

 

The following discussion and analysis should be read in conjunction with our financial statements and notes thereto included elsewhere in this Form 10-Q. Except for the historical information contained herein, the discussion in this Form 10-Q contains certain forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. The cautionary statements made in this Form 10-Q should be read as being applicable to all related forward-looking statements wherever they appear in this Form 10-Q. The Company's actual results could differ materially from those discussed here.

 

Modern Mobility Aids, Inc. (the “Company”) is a Nevada corporation in the development stage and had been involved in selling and distribution of products for mobility challenged individuals.  The Company was incorporated under the laws of the State of Nevada on December 19, 2007 under the name Glider Inc. The Company changed its name to Modern Mobility Aids, Inc. on April 22, 2010. 

 

14
 

 

References in this Report to “Modern Mobility Aids” refer to Modern Mobility Aids Inc. and its subsidiaries, on a consolidated basis, unless otherwise indicated or the context otherwise requires.

 

The Company to date has funded its initial operations through the issuance of 9,774,000 shares of capital stock for net proceeds of $47,425 and revenue from sales of $9,506. Due to the uncertainty of our ability to generate sufficient revenues from our operating activities and/or to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal operations when they come due, in their report on our financial statements for the year ended June 30, 2011, our registered independent auditors included additional comments indicating concerns about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that led to this disclosure by our registered independent auditors. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Our current cash balance is $1,412. We expect to experience a shortage of funds. Our shareholders have been lending us funds to enable us to pay our operating expenses. There are no formal binding commitments or binding arrangements with them to advance or loan funds. There are no terms regarding repayment of any loans or capital contribution. If shareholders do not continue to advance us the funds necessary to enable us to pay our expenses, we will not be able to continue.

 

The Company has abandoned its historic business which has generated little operating revenue and has had limited operations to date. Our Board of Directors has determined that the Company will seek to acquire business assets or stock in companies that either have existing operations or are in the development stage with the potential for successful operations. We will require financing to make such acquisitions. There can be no assurance we can secure such financing or that we will be able to make such acquisitions even if financing is available. Moreover, even if we acquire business assets or a business, there can be no assurance that the acquisitions will be successfully accomplished and that our operations thereafter will be profitable.

 

Results of Operations

 

For the nine months ended March 31, 2012 compared to nine months ended March 31, 2011

 

Our results of operations, as reported in our consolidated financial statements, incorporate results of operations of our wholly owned Canadian subsidiary. All significant intercompany balances and transactions have been eliminated on consolidation.

 

During the nine months ended March 31, 2012 we have generated $0.00 (March 31, 2011: $0 in revenues from sales and incurred $354,524 (March 31, 2011: $46,160) in losses. During the period from December 19, 2007 (inception), through March 31, 2012, we have generated $9,506 in revenues from sales and incurred $503,344 in losses.

 

To date our revenue has been from sales of scooters and scooter accessories, uplift electric chairs, walkers and bikes. Our cost of revenues consisted of the cost of the items we had sold and freight expenses.

 

We purchased the products we sold from various independent resellers/suppliers in North America.

 

During the nine months ended March 31, 2012, we incurred $354,524 (March 31, 2011: $56,704) in operating costs including; $83,979 in legal fees; $77,003 in consulting fees and $1,679 for edgar fees.

 

Since inception, we have sold 6,500,000 shares (pre-split) of common stock at $0.001 per share to our Directors for total proceeds of $6,500. During the twelve months ended June 30, 2011, the Company’s Registration Statement on the Form S-1/A filed with the Securities and Exchange Commission was declared effective. The Company has sold 3,274,000 (pre the forward split) common shares at $0.0125 per share for total proceeds of $40,925 pursuant to the Registration Statement.

 

15
 

 

Liquidity and Capital Resources

 

We have incurred $503,344 in operating losses since inception. As of March 31, 2012, we had $1,412 in cash compared to $182 at June 30, 2011.  As of March 31, 2012, we had a working capital deficiency of $(438,077), compared to a working capital deficiency of $(83,552) as of June 30, 2011.

 

Net cash used in operating activities for the nine months ended March 31, 2012 was $169,680, compared with net cash used in operating activities of $47,205 for the prior year period.  The majority of the increase in net cash used was due to an increase in accounts payable. Net cash provided from financing activities during the nine months ended March 31, 2012 was $170,910, resulting from a loan from shareholders. Net cash provided by investing activities during the nine months ended March 31, 2011 was $45,425 primarily resulting from the proceeds from the sale of common stock. 

 

We must raise additional funds to initiate or acquire a business and to fund our continued operations.  We may not be successful in our efforts to raise additional funds or achieve profitable operations. Even if we are able to raise additional funds through the sale of our securities or through the issuance of debt securities, or loans from our directors or financial institutions, our cash needs could be greater than anticipated in which case we could be forced to raise additional capital.

 

In this regard we reference our contract to purchase the common stock of Lumigene. We do not have the funds necessary to consummate this acquisition. We will need to raise the funds necessary to complete this transaction and to fund the future cash requirements of Lumigene, which has generated no revenue to date. There can be no assurance we will be able to do so.

 

At the present time, we have no commitments for any additional financing, and there can be no assurance that, if needed, additional capital will be available to us on commercially acceptable terms or at all. These conditions raise substantial doubt as to our ability to continue as a going concern, which may make it more difficult for us to raise additional capital when needed. If we cannot get the needed capital, we may not be able to become profitable and may have to curtail or cease our operations.

 

Recent Accounting Pronouncements

 

See Note 7 to the Financial Statements.

 

Off Balance Sheet Arrangements

 

None.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we have conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as of the end of the period covered by this report.  Based on this evaluation, our principal executive officer and principal financial officer concluded as of the evaluation date that our disclosure controls and procedures were effective such that the material information required to be included in our Securities and Exchange Commission reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms relating to our company, particularly during the period when this report was being prepared.

 

16
 

 

Additionally, there were no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the evaluation date.  We have not identified any significant deficiencies or material weaknesses in our internal controls, and therefore there were no corrective actions taken.

 

PART II – OTHER INFORMATION

 

ITEM 1.  LEGAL PROCEEDINGS

 

Currently we are not involved in any pending litigation or legal proceeding.

 

ITEM 1A. RISK FACTORS

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item. 

 

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

 

None. 

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None. 

 

ITEM 4. [REMOVED AND RESERVED] 

 

None.

 

ITEM 5. OTHER INFORMATION

 

None.

 

ITEM 6. EXHIBITS
 
The following documents are filed as a part of this report or are incorporated by reference to previous filings, if so indicated:

   

Exhibit No.   Description
     
  3.1   Articles of Incorporation (i)**
  3.2   Bylaws (i)**
  3.3   Certificate of Amendment to Articles of Incorporation***
10.2               Share Purchase Agreement dated August 4, 2011 between MDRM Group (Canada) Ltd. (of the first part), Michalkoff Family Trust, Hrycyshyn Family Trust and Stolarchuk Family Trust (of the second part), Lumigene Technologies Inc. (of the third part) and Mark Michalkoff, Roman Hrycyshyn and Danylo Stolarchuk (of the fourth part). ****
10.3   Amendment to Share Purchase Agreement dated as of November 4, 2011 between MDRM Group (Canada) Ltd. (of the first part), Michalkoff Family Trust, Hrycyshyn Family Trust and Stolarchuk Family Trust (of the second part), Lumigene Technologies Inc. (of the third part) and Mark Michalkoff, Roman Hrycyshyn and Danylo Stolarchuk (of the fourth part). *****

 

17
 

 

10.4         Form of Amendment to Share Purchase Agreement dated as of March 2, 2012, between MDRM Group (Canada) Ltd. (of the first part), Michalkoff Family Trust, Hrycyshyn Family Trust and Stolarchuk Family Trust (of the second part), Lumigene Technologies Inc. (of the third part) and Mark Michalkoff, Roman Hrycyshyn and Danylo Stolarchuk (of the fourth part).
31.1   Section 302 Certification of Chief Executive Officer*
31.2   Section 302 Certification of Chief Financial Officer *
32.1   Section 906 Certification of Chief Executive Officer *
32.2   Section 906 Certification of Chief Financial Officer *

 

*   filed herewith
**   Included in our S-1 filing on August 23, 2010.
***   Included in our current report on Form 8-K filed with the Securities and Exchange Commission on August 18, 2011.
****   Included in our current report on Form 8-K filed with the Securities and Exchange Commission on August 10, 2011.
*****   Included in our current report on Form 8-K filed with the Securities and Exchange Commission on November 10, 2011.

 

18
 

 

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. 

 

May 18, 2012

  MODERN MOBILITY AIDS INC.
     
  By: /s/  Antonio Domingues
    Antonio Domingues
   

President, Acting Chief Financial Officer, Treasurer,
Secretary (Principal Executive Officer and Acting

Principal Accounting Officer)

 

19

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