News Column

MODERN PVC INC - 10-Q - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

July 8, 2014

General

We were incorporated in the State of Nevada on October 14, 2011. We are in the business of installation stretch ceiling and re-selling of stretch fabric membrane. We plan to purchase inventory of stretch PVC fabric membrane directly from manufacturers and re-sell them to private and commercial buyers. We plan to develop a website that will display a variety of stretch PVC fabric membranes and describe where customers can use that membrane and our installation prices.

We have not generated any revenues and the only operation we have engaged in to date is executing a subcontractor agreement with European Home Development Inc.

Our principal office address is located at 51-01 39 th Avenue Unit HH-12, Queens, NY 11104. Our telephone number is (347) 960 6497. Our plan of operation is forward-looking and there is no assurance that we will ever reach profitable operations. We are a development stage company and have not earned any revenue to date.

Product



Stretch Ceiling is a suspended ceiling system consisting of two basic components - a perimeter track and lightweight fabric membrane made from PVC that stretches and clips into the track. In addition to ceilings the system can be used for wall coverings, light diffusers, floating panels, exhibitions and creative shapes. Advantage of installing stretch ceiling: Blends with traditional and modern decor, can be installed quickly; is leak proof, water proof & stain resistant; is durable, and don't crack or peel. Additionally:

1. Meets fire regulations 2. Easy to clean 3. Performs well in humid environments 4. Lightweight 5. Resists bacteria and mold growth 6. Improve thermal & sound insulation 7. Emits no odor or fumes 8. Requires no special cleaning techniques



Fabric is made from Polyvinyl Chloride, commonly abbreviated PVC; it is a thermoplastic polymer. PVC is widely used in construction because it is cheap, durable, and easy to assemble. PVC production is expected to exceed 40 million tons by 2016 (en.wikipedia.org). The material comes in a vast array of Colors and Finishes including Matt, Satin, Lacquer (mirror like), Metallic, Perforated, and Translucent for lighting diffusers, backlighting & projection. The material can be printed or painted for additional effects, is entirely waterproof, washable and impermeable to vapors. The Material is maintenance free, non-corrosive, hygienic, non-toxic and non-flammable. Track is typically the aluminum or PVC semi-concealed track is the preferred choice for most architects and designers, enabling curves, domes, vaults and many other shapes to be formed with ease. Installing stretch ceiling is relatively quick and simple for trained installers. To install a stretch ceiling, a wall-rail is mounted around the perimeter of the room, on either flat or curved surfaces. There's no need for interior tracks or supports. Rails are available in a variety of styles, and can be either visible or fully concealed. Once the rail is installed, custom-cut film stretched into place, starting with the

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corners. Its semi-rigid edge is fitted into the wall rail, securing the film without intermediate supports. Lighting fixtures, alarms, sprinklers and ventilation equipment can all be accommodated. Installing the system in a typical room or small office takes about two to four hours, depending on the complexity of the room.

The versatility of the stretch ceiling system makes it suitable for use in a wide range of environments.

Residential



Stretch Ceilings are also able to achieve similar appearance as conventional ceilings within the home while providing many additional benefits such as approximately 81% light reflection and improved acoustics. The product is extremely quick to install as panel sizes can be fabricated up to 50 sq. meters and being a finished product which will require no further decoration.

Any type of light fitting or aperture can be accommodated within the Stretch Ceiling material, such as speakers, grilles, extractor fans and sensors. The material is also resistant to moisture making it ideal for bathroom areas, kitchens, steam rooms and swimming pools, whilst also being water impermeable and will therefore act as a containment membrane in the event of a water leak.

Commercial

With superb range of colors and ability to form shapes, Stretch Ceilings allow to create exceptional feature ceilings as well as conventional flat designs.

Suitable for all types of applications including offices, retail, outlets, bars, restaurants, leisure centers, cinemas, galleries, theatres, museums, churches, shopping centers and many more. We are planning to compete on North American and European markets.

Agreement with European Home Development Inc.

Modern PVC Inc. has executed an agreement with European Home Development Inc.European Home Development Inc. will use time to time Modern PVC Inc. as independent contractor for installing stretch ceiling in European Home Development Inc. constructed property. European Home Development Inc. is independent construction company which is in the business of constructing residential and commercial property. During the period we incorporated the company, prepared a business plan and executed an Agreement with European Home Development Inc. ("EHDI") Agreements are filed as exhibits to this registration statement, the main terms are:

1. Contractor shall furnish all labor and materials to install the PVC stretch ceiling on the Owner property.

2. Owner shall pay Contractor for all labor and materials the sum of $17 per square feet. Upon completing Contractor's

services under this Agreement, Contractor shall submit an invoice. Owner shall pay Contractor within 30 days from the date of Contractor's invoice.

3. Time of Completion. The work to be performed under this Agreement shall commence on time to time basis and as needed by Owner.

4. Contractor warrants that all work shall be completed in a good workmanlike manner and in compliance with all building codes and other applicable laws.

5. Contractor is an independent contractor, not Owner's employee. Contractor's employees or subcontractors are not Owner's employees. Contractor has the right to perform services for others during the term of this Agreement.

6. With reasonable cause, either Owner or Contractor may terminate this Agreement effective immediately by giving written notice of cause for termination. Reasonable cause includes: nonpayment of Contractor's compensation after 20 days written demand for payment. Contractor shall be entitled to full payment for services performed prior to the effective date of termination.

7. If a dispute arises under this Agreement, any party may take the matter to court. If any court action is necessary to enforce this Agreement, the prevailing party shall be entitled to reasonable attorney fees, costs and expenses in addition to any other relief to which he or she may be entitled. The work to be performed under this Agreement shall commence on time to time basis and as needed by Owner.

EMPLOYEES AND EMPLOYMENT AGREEMENTS

At present, we have no employees other than our officer and director. We presently do not have pension, health, annuity, insurance, stock options, profit sharing or similar benefit plans; however, we may adopt such plans in the future. There are presently no personal benefits available to any officers, directors or employees.

10 Results of Operation



Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.

We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

Three Months Ended April 30, 2014 and 2013

Our net loss for the three month periods ended April 30, 2014 and 2013 were $4,904 and $11,354. During the three month periods ended April 30, 2014 we did not generate any revenue compared to $984 generated in the same period during the prior year.

During the three month periods ended April 30, 2014 and 2013, our operating expenses were professional fees, bank fees and general administrative expenses.

The weighted average number of shares outstanding were 6,400,000 during the three months ended April 30, 2014 and 4,000,000 during the nine months ended April 30, 2013.

Liquidity and Capital Resources

Three Months Period Ended April 30, 2014

As at April 30, 2014, our total assets were $111 compared to $165 in total assets at January 31, 2014. Total assets were comprised of $111 in cash. As at April 30, 2014, our current liabilities were $18,649. Stockholders' equity was $18,539 as of April 30, 2014 compare to stockholders' equity of $13,365 as of January 31, 2014.

Cash Flows from Operating Activities

We have not generated positive cash flows from operating activities. For the three month period ended April 30, 2014, net cash flows used in operating activities was $(3,654). For the period from inception (July 12, 2011) to April 30, 2014, net cash flows from operating activities was $(48,039).

Cash Flows from Investing Activities

For the three month periods ended April 30, 2014 and 2013, the company has not generated any cash flows.

Cash Flows from Financing Activities

For the three month period ended April 30, 2014, the Company generated $3,600 in loans from shareholder. For the nine months period ended April 30, 2013, the company did not generate any loans from shareholder. From July 12, 2011 (Inception) to April 30, 2014, the company generated $28,000 in proceeds from sale of common stock and $17,399 in loans from shareholder.

Plan of Operation and Funding

We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

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Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next three months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations. We will have to raise additional funds in the next twelve months in order to sustain and expand our operations. We currently do not have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of equity financing from the sale of our common stock. We have and will continue to seek to obtain short-term loans from our directors, although no future arrangement for additional loans has been made. We do not have any agreements with our directors concerning these loans. We do not have any arrangements in place for any future equity financing.

Off-Balance Sheet Arrangements

As of the date of this Quarterly Report, 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 of operations, liquidity, capital expenditures or capital resources that are material to investors.

Going Concern

The independent auditors' review report accompanying our January 31, 2014 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.


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Source: Edgar Glimpses


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