News Column


May 20, 2014

The Company's discussion and analysis of its financial condition and results of operations are based upon the Company's consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues, costs and expenses during the reporting periods. Actual results could differ materially from these estimates.

Forward-Looking Statements

The Company from time to time may make written or oral "forward-looking statements" including statements contained in this report and in other communications by the Company, which are made in good faith by the Company pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include statements of the Company's plans, objectives, expectations, estimates and intentions, which are subject to change based on various important factors (some of which are beyond the Company's control). The following factors, in addition to others not listed, could cause the Company's actual results to differ materially from those expressed in forward looking statements: the strength of the domestic and local economies in which the Company conducts operations, the impact of current uncertainties in global economic conditions and the ongoing financial crisis affecting the domestic banking system and financial markets, including the impact on the Company's suppliers and customers, changes in client needs and consumer spending habits, the impact of competition and technological change on the Company, the Company's ability to manage its growth effectively, including its ability to successfully integrate any business which it might acquire, and currency fluctuations. All forward-looking statements in this report are based upon information available to the Company on the date of this report. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

The following discussion and analysis compares our results of operations for the three months ended March 31, 2014 and 2013. This discussion and analysis should be read in conjunction with the consolidated financial statements and notes thereto and the Company's Form 10-K filed with the Securities and Exchange Commission on April 15, 2014.

Our Business

We assist those who have lost hope and dreams of ever owning a home or owning a home again by providing a clear, step-by-step path on the road to home ownership. We identify sub-prime home buyers who are either currently renting or want to own a home and have been turned down at banks or finance companies and provide them tools to allow them to obtain traditional financing and ultimately achieve their dream of home ownership.

Overview of Current Operations

EZJR, Inc. ("Company") ("EZJR") is an Internet marketing company and real estate company in Georgia.

OwnerWiz Realty, Inc. ("OWR") is the Company's wholly-owned subsidiary. OWR was incorporated April 12, 2011. OW Marketing, Inc. ("OWM") is a wholly-owned subsidiary of OWR and was incorporated on October 23, 2011. On January 28, 2014, the Company acquired Leading Edge Financial ("LEF"), a private Florida corporation engaged in the business of personal credit management.

17 OWM's Business

OW Marketing, Inc., operates several websites which offer users several services. These services include credit monitoring, credit management, credit reports, and real estate listings. The Company receives fees from its users for its credit related products and records those fees as revenue as they are received. During the three months ended March 31, 2014 and 2013, the Company did not provide any credit related services other than credit management through LEF. Rather the Company referred the customer's information to third party companies. The Company received referral fees from these third party credit service providers. During 2014, it is management's intention to provide these services directly through our customers, by licensing the information necessary. Also, the Company has identified a number of additional businesses for which it could expand its product offerings and generate additional revenues. For the Company to fully execute on its business model for OWM, it will require substantial cash resources which are currently unavailable.

Credeze™ - Credit Monitoring Service. In March 2014, we launched Credeze on a test basis. The Credeze product is both a credit monitoring service as well as an identity protection program. Customers subscribe to Credeze Identity Protection Program and are charged on a recurring monthly basis. Credeze monitors each customer's credit daily through all three of the major credit bureaus, and immediately alerts the customer through our notification reports system in the case of a change in their credit score. Customers also have secure, 24 hour access to their credit reports from the major credit bureaus. Additionally, the Credeze Website has a variety of tools and resources to provide customers with the information for protecting their identity. Credeze began generating limited revenues in March 2014.

Listingswiz - Rent-to-Own Home Finder. Listingswiz is a Website designed to help the customer complete the process of buying a home. Customers pay a monthly fee for access to various tools to achieve that goal. They start with a personal profile that outlines the type of home they desire including number of bedrooms and bathrooms along with the targeted monthly payment. The site allows visitors to view home listings for free. However, paid subscribers may view detailed data and have access to the Company Home Resume service.

LEF's Business

LEF is a credit management company with licensed technology that helps our customers establish or re-establish a good credit history while providing ongoing training and support. LEF also provides our customers with up-to-date credit education material and a credit coach to assist in keeping the customer on the right credit path. Customers receive an analysis of their credit file that show which items are hurting their score the most. This analysis also highlights both the positive and negative items affecting their credit. This analysis is created using Point Deduction Technology software ("PDT"). PDT recognizes the many factors used in credit scoring and assigns a point deduction number per item on the credit report thus allowing the customer to understand which accounts are affecting the credit score the most.

The customer is also provided access to a Target Score Simulator ("TSS") which is an interactive tool that instructs the customer as to the best things to do and not to do to increase their credit score. The customer starts by selecting the credit bureau that they would like to simulate. The customer then enters a target score that they would like to achieve. They are then provided with a list of the most efficient recommendation to reach the target score. In some cases there may be a recommendation to use the credit line in order to gain credit score points or they may be required to have a creditor reporting agency correct the high credit amount on their credit report. These recommendations are calculated first before a pay down approach in order to save the customers the most amount of money possible. The simulator alerts the customer of the total points recovered and the cost to acquire those points to reach their target score to attain that score. Conversely, the customer is also able to manually simulate the results from various changes to their credit report. By making changes to their report, they can see what the change to their credit score will be.


LEF is not a Credit Repair company. Credit Repair companies focus only on negative credit items on your report. Their main modus operandi is to send letters to the credit bureaus highlighting certain items that either might not belong to you or are reported inaccurately. The idea is that if the lender or employer doesn't see any negative items it's a success. Unfortunately this does not necessarily increase the credit score and it will not stop the consumer from making the same mistakes over and over again.

OWR's Business

OwnerWiz Realty Inc. is a Georgia licensed real estate company that represents both buyers and sellers of homes.

OWR earns commission revenues when the sales transactions are complete from the buyer or seller. OWR generates revenues by selling realtor services to prospective homebuyers interested in residential properties. They focus on identifying rental properties that a prospective buyer can rent with an option to purchase the property at a later date. In some instances, these services will be provided by realtors employed or retained by our company. In other instances, OWR will refer these services to outside realtors. OWR will collect a fixed portion of the realtor commissions. In order to promote its realtor services, OWR will provide prospective homebuyers with comprehensive information on residential properties.

OWR's principal business activities include: promoting, marketing, and selling realtor services to prospective homebuyers interested in residential properties. During the three months ended March 31, 2014, and 2013, OWR did a minimal amount of business due to fiscal constraints. During 2014, the Company intends to reduce its real estate activities and concentrate on OWM's business. Ultimately, management believes that all operations related to OWR will cease.


In the opinion of management of the Company, the business areas in which it operates are subject to seasonal fluctuations. As such, past quarterly results are not indicative of future results and may be subject to seasonal fluctuations.

Results of Operations

Discussion of three months ended March 31, 2014 and 2013.


Revenues for the three months ended March 31, 2014 were $360,655 compared to $981,108 an decrease of 63.2%. The primary reason for the decrease was a decrease of $696,743 or 79.9% in referral fees. Also contributing to the decrease was a reduction in commission revenue of $2,625 (there were no product sales in 2014). This increase was offset by an increase in product sales of $78,915 or 73.8 %. The decrease in referral fees was a direct result of reduced affiliate activity and a significant reduction in online advertising. Going forward the company anticipates that referral fees will decrease dramatically as we shift to selling products provided by third parties directly to our customers.

19 Operating Expenses

Operating expenses for the three months ended March 31, 2014 were $510,717 compared to $855,603 an decrease of $350,441 or 40.3%. The primary reason for the decrease was a decrease in advertising expenses of $247,323 or 93.3% as the company made a strategic decision to preserve cash as a result of a decrease in the efficacy of its online advertising. Also contributing to the decrease was an a decrease in commission expenses paid to our affiliate network of $172,158 or 69.7% as affiliate activity has declined along with the decrease in advertising. Partially offsetting these decreases were an increase in general and administrative expense of $64,032 or 49.0% primarily due to increases in professional fees, rent, utilities and travel combined with an increase in sales expense of $10,563 or 5.0%. Included in sales expense is the cost of any services that we sell that are provided by third parties.

Loss from Operations

As a result of the foregoing factors we had a loss from operations of $150,062 for the three months ended March 31, 2014, compared to an operating profit of $125,505 for the same period in 2013, a decrease of $275,567.

Interest Expense

Interest expense for the three months ended March 31, 2014 was $1,245,290 compared to $4,118 for the same period in 2013. The primary reason for the increase was a non-cash charge of $1,212,500 related the issuance of 500,000 unregistered restricted shares of common stock in exchanged for a $100,000 promissory note payable and unpaid interest of $7,500. The remaining increase in interest expense is related to two notes payable and interest on credit cards.

Net Loss

As a result of the foregoing factors we had a net loss of $1,395,352 for the three months ended March 31, 2014, compared to a net profit of $121,387 for the same period in 2013.

Going Concern

Since inception through December 31, 2013, we have not generated sufficient revenues to achieve operating profitability. We have generated significant operating losses since our formation and expect to incur substantial losses and negative operating cash flows for the foreseeable future. For the year quarter March 31, 2014, our net loss was $1,395,352 and our accumulated deficit was $17,707,999. Accordingly, there can be no assurance that we will ever be able to achieve our sales goals or earn a profit.

Our ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and our ability to achieve and maintain profitable operations.

Therefore, management plans to raise equity capital to finance the operating and capital requirements of the Company. While the Company is devoting its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be available for operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

Liquidity and Capital Resources

As of March 31, 2014, EZJR had $27,635 in cash and cash equivalents, receivables of $22,756 and total current assets of $54,472. At the same date, EZJR had total current liabilities of $727,725, this includes: Accounts payable and accrued liabilities of $425,260, loan application fee liability of $64,020, deferred rent (current portion) of $4,383 related party advances of $109,062 and notes payable of $125,000.


During the three months ended March 31, 2014 we saw an increase in our revenues when compared to the prior quarter, however, compared to the same period in 2013 revenues decreased significantly. Subsequent to March 31, 2014 the Company has continued to experience an increase in revenues, however, there are no assurances that these increases will continue. Additionally as of March 31, 2014 we had a negative working capital of $673,253. As a result we intend to raise additional debt or equity financing to fund ongoing operations and necessary working capital. However, there is no assurance that such financing plans will be successful or be obtained in amounts sufficient to meet the Company's needs. There can be no assurance that such capital will be available and if not, the Company may be unable to meet its goals for future growth.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results or operations, liquidity, capital expenditures or capital resources that is material to investors.

Critical Accounting Policies and Estimates

Revenue Recognition: We recognize revenue from product sales and services once all of the following criteria for revenue recognition have been met: pervasive evidence that an agreement exists; the services have been rendered; the fee is fixed and determinable and not subject to refund or adjustment; and collection of the amount due is reasonably assured.

Recent Pronouncements

The Company's management has evaluated all the recently issued accounting pronouncements through the filing date of these financial statements and does not believe that any of these pronouncements will have a material impact on the Company's financial position and results of operations.


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Source: Edgar Glimpses

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