The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include those discussed below and elsewhere in this annual report. Our audited financial statements are stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles. Our auditor's report on our August 31, 2013 financial statements expresses an opinion that substantial doubt exists as to whether we can continue as an ongoing business. Since our officer and director may be unwilling or unable to loan or advance us additional capital, we believe that if we do not raise additional capital over the next 12 months, we may be required to suspend or cease the implementation of our business plans. See " August 31, 2013 Audited Financial Statements - Auditors Report." At August 31, 2013 , we had $0 cash on hand and in the bank compared to $0 in cash at August 31, 2013 . At August 31, 2013 , we had negative working capital of $18,793 compared to negative working capital of $31,501 at August 31, 2012 . This increase in negative working capital is primarily the result of legal, accounting fees and transfer agent fees. At August 31, 2013 , our total liabilities were $101,749 . Our total liabilities at August 31, 2021 were $82,956 . Management believes we are unable to satisfy our cash requirements for the next twelve months and we will be required to raise additional. We plan to satisfy our future cash requirements - primarily the working capital required for the development of our course guides and marketing campaign and to offset legal and accounting fees - by additional equity financing. This will likely be in the form of private placements of common stock. If we are unsuccessful in raising the additional proceeds through future equity financing we will then have to seek additional funds through debt financing, which would be highly difficult for a new development stage company to secure. Therefore, we are highly dependent upon the future equity financing and failure to obtain equity financing would result in our having to seek capital from other resources such as debt financing, which may not even be available to us. However, if such financing were available, because we are a development stage company with no operations to date, we would likely have to pay additional costs associated with high risk loans and be subject to an above market interest rate. At such time these funds are required, management would evaluate the terms of such debt financing and determine whether the business could sustain operations and growth and manage the debt load. If we cannot raise additional proceeds via future debt or equity financing we would be required to cease business operations. As a result, investors in our common stock would lose all of their investment. Also management believes if we cannot raise sufficient revenues or maintain our reporting status with the Securities and Exchange Commission we will have to cease all efforts directed towards the company. As such, any investment previously made would be lost in its entirety. We anticipate the development and marketing of our products to start over the next 12 months. We do not anticipate obtaining any further products or services. We did not generate any revenue during the fiscal year ended August 31, 2013 . Financing activities resulted in a net cash inflow of $19,604 for the one-year period ended August 31, 2013 compared to a net cash inflow of $25,500 for the one-year period ended August 31, 2012 . We incurred operating expenses in the amount of $18,793 in the fiscal year ended August 31, 2013 compared to operating expenses of $31,501 for the one-year period ended August 31, 2012 . These operating expenses were comprised of professional fees and office and general expenses. Since inception we have incurred operating expenses of $116,949 . 5 Alarming Devices has no current plans, preliminary or otherwise, to merge with any other entity. Off Balance Sheet Arrangements As of the date of this Annual Report, the current funds available to the Company will not be sufficient to continue operations. The cost to establish the Company and begin operations is estimated to be approximately $60,000 over the next twelve months and the cost of maintaining our reporting status is estimated to be $10,000 over this same period. The officer and director, Andre Luiz Nascimento Moreira , and Steel Pier Capital Advisors, LLC , a stock purchase vendee, have undertaken to provide the Company with operating capital to sustain our business over the next twelve month period as the expenses are incurred in the form of a non-secured loan. However, there is no contract in place or written agreement securing this agreement. Management believes that if the Company cannot raise sufficient revenues or maintain its reporting status with the SEC it will have to cease all efforts directed towards the Company. As such, any investment previously made would be lost in its entirety. Other than the above described situation the Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company's financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
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