The following information should be read in conjunction with our financial statements and related notes appearing elsewhere in this Form 10-Q, together with the more detailed business information and the March 31, 2013 audited financial statements included in the Company's Registration Statement filed on Form S-1 Amendment No. 2 (File No. 333-188610), as filed with the SEC on July 23, 2013 . It also includes our detailed expenditures and milestones for our plan of operations described herein. Statements in this section and elsewhere in this Form 10-Q that are not statements of historical or current fact constitute "forward-looking" statements. GENERAL OVERVIEW Our Company was incorporated in the State of Nevada on February 25, 2013 to engage in the development and sale of electronic medical record ("EMR") software for small and medium sized physician offices and clinics. Our principal executive offices are located at Mlynska 28, 040 01 Kosice, Slovak Republic . Our phone number is (646) 875-5747. We are a development stage company, we only just completed our first fiscal year end on March 31 and we have no subsidiaries. We are in the early stages of developing our EMR software. We currently have no revenues, no operating history, and no users or revenues for our proposed software. Our plan of operations over the 12 month period is to gain support for our concept and create fully functional EMR software. This product, when completed, will be commercially viable and available for commercial sale. Initially, the EMR software is planned to be a software tool that will collect and capture patient data electronically, and store it in a format that enables efficient access and viewing, and distribution by printing or email. Our planned second phase product development will focus on interconnectivity of our EMR software with various third party vital signs monitors, such as blood pressure monitors or temperature monitors. We recently completed our registered offering and raised the maximum amount of $50,000 . During the quarter ended December 31, 2013 we also completed development and launched our website. You can view it at www.zlatoinc.com . We also commenced with the design and development of our basic EMR software and anticipate that it will be complete in 4-6 months. On December 27, 2013 we received our OTCBB trading symbol "ZFLO" which we believe will assist us in future equity raises and potentially provide liquidity to our stockholders. We cannot guarantee we will be successful in doing so or with planned our business operations. Our business is subject to all of the risks inherent in the establishment of a new business enterprise and we are at least 18-24 months away (from the date hereof) from generating any revenue, if at all. Our current funds are sufficient to allow us to operate for one year, and only sufficient to complete development of the basic EMR software. We currently estimate that we will require an additional $200,000 for the commercial launch of our basic EMR software and subsequent to the completion of the basic EMR software, another 8-10 months and $50,000 to develop the software development kit for interoperability with third parties. GOING CONCERN We have very limited operations and no revenues. We have incurred losses from operations since inception. No revenues are anticipated until we complete and successfully commercialize our planned EMR software. The ability of our Company to continue as a going concern is dependent on raising capital to fund our business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company's ability to continue as a going concern. Our activities to date have been financed from the proceeds of share subscriptions. From our inception to December 31, 2013 we have raised a total of $65,000 in gross proceeds from the issuance of our common stock. We require significant additional financing to develop our business. There is no guarantee that we will be able to raise any additional funds. 12 PLAN OF OPERATION Our plan of operations over the 12 month period following successful completion of our offering is to create fully functional and compliant EMR software. This product will be commercially viable, and available for purchase when completed. Initially, the EMR system is planned to be a software tool that will collect and capture patient data in electronic format. We are also planning to provide file output in PDF format, so it can be emailed by the user. The patient features that our EMR will include in this first phase are: Patient Profile: First & Last Name, Contacts (street / city / zip code / country / phone / email) Birthdate, Gender, Race, Weight, Height Government or private care provider health identification number Patient history including (family history Medication history Detailed appointment history Scheduling Patient next steps (Specialist? Pharmacy? Radiology? Routines? Other?) Billing All parameters will be PDF format enabled for printing and email, and will have a designated output directory associated with them for efficient clinical access and viewing. We are also planning to design all data fields with a text-based editor to allow for physician and any other user notes to be easily entered and captured on the patient file. In order to achieve our plan, we have established the following goals for this initial 12 month period: * Create product overview and slide deck for investors * Identify all security and compliance requirements for our target market * Test and analyze various platform architectures and operating systems to ensure support of the functional / security requirements * Develop software on all parameters including bug tracking and project management * Quality control tests on all software parameters * Prepare test data into prototype * Launch fully functional EMR software * Secure additional suitable financing to market our initial EMR software product and commence with the second phase of our product development. During the quarter ended December 31, 2013 we completed and launched our website and comemenced with the development of our basic EMR software. RESULTS OF OPERATIONS From the inception of our company on February 25, 2013 to March 31, 2013 (our first fiscal year end) we incurred a loss of $555 , all of which was incurred for the incorporation of our company. We incurred a loss of $16,372 and $25,942 for the three and nine month periods ended December 31, 2013 respectively. Comparisons are not meaningful because our company was only just incorporated on February 25, 2013 . This loss includes $6,338 for general and administrative costs (9 months - $8,158 ) and $10,034 (9 months - $17,784 ) for professional fees. General and administrative costs include $5,510 paid to the Company's transfer agent to act on our behalf for our stockholders. Professional fees include $3,434 for the design and launch of our logo and website and $4,800 for EMR software development. The balance includes audit, legal fees associated with our S-1 Registration Statement for our initial public offering and our ongoing reporting obligations as a public company. 13 From inception on February 25, 2013 to December 31, 2013 we have incurred cumulative losses of $26,497 . We believe we will continue to incur losses into the foreseeable future as we develop our business. REVENUES We did not generate any revenues from February 25, 2013 (inception) to December 31, 2013 . We will not be in a position to generate revenues for at least 18-24 months from the date hereof. Future revenue generation is dependent on the successful development and commercial launch of our EMR software. We currently estimate that we will require an additional financing of $200,000 to launch our product. LIQUIDITY AND CAPITAL RESOURCES Historically, we have financed our cash flow and operations solely from the sale of $65,000 of common stock. During the quarter we completed our registered offering and successfully raised $50,000 through the sale of 1,000,000 shares of our common stock to 31 non-affiliate shareholders. Of the $65,000 we have raised since inception, $26,615 was used for operating activities since our inception on February 25, 2013 . As of December 31, 2013 , our resultant cash balance was $38,385 and our net working capital balance was $38,503 . As of the date hereof, our net working capital balance is approximately $38,203 . We believe our current cash and net working capital balance is sufficient to cover our plan of operations for the next 12 months, including all regulatory reporting and development of our basic EMR software. We still must raise significant additional funding to continue with our business. Our planned offering is only sufficient to enable us to develop our basic EMR software. We believe we will require an additional $200,000 for marketing expenses for the commercial launch of our basic EMR software and another 8-10 months and $50,000 to develop the software development kit for interoperability with third party monitoring equipment manufacturers. These funds will have to be raised through equity financing, debt financing, or other sources, which may result in the dilution in the equity ownership of our shares. We will also need more funds if the costs of commercialization and further development are greater than we have budgeted. We will also require additional financing to sustain our business operations if we are ultimately not successful in earning revenues. We currently do not have any arrangements in place regarding our current offering or any subsequent offering for further financing and we may not be able to obtain financing when required. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments. There are no assurances that we will be able to obtain further funds required for our continued operations. Even if additional financing is available, it may not be available on terms we find favorable. At this time, there are no anticipated sources of additional funds in place. Failure to secure the needed additional financing will have an adverse effect on our ability to remain in business.
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