News Column

IIM GLOBAL CORP - 10-Q - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

August 14, 2014

As of June 30, 2014, IIM Global had not generated revenues in 2014 and had accumulated a net loss of $1,796,454 since inception.

In August 2013 IIM Global officially entered into a business combination with Innovation in Motion, Inc., a private company operating in two technology fields: the handheld identification market and mobile payment market. Innovation In Motion, Inc. brought a range of state-of-the-art products in these fields and has begun serious market penetration with the sale and placement of units.

IIM Global is further looking to enter into a business combination with other target companies with which IIM Global may effect a business combination thus seeking the perceived benefits of a reporting corporation. Such perceived benefits may

include facilitating or improving the terms on which additional equity financing may be sought, providing liquidity for incentive stock options or similar benefits to key employees, increasing the opportunity to use securities for acquisitions, providing liquidity for shareholders and other factors. Business opportunities may be available in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities difficult and complex.

In analyzing prospective a business combination, the Company may consider such matters as the available technical, financial and managerial resources; working capital and other financial requirements; history of operations, if any; prospects for the future; nature of present and expected competition; the quality and experience of management services which may be available and the depth of that management; the potential for further research, development, or exploration; specific risk factors not now foreseeable but which may be anticipated; the potential for growth or expansion; the potential for profit; the perceived public recognition or acceptance of products, services, or trades; name identification; and other relevant factors. This discussion of the proposed criteria is not meant to be restrictive of the virtually unlimited discretion of the Company to search for and enter into potential business opportunities.

The search for a target company will not be restricted to any specific kind of business entities, but may acquire a venture which is in its preliminary or development stage, which is already in operation, or in essentially any stage of its business life. It is impossible to predict at this time the status of any business in which the Company may become engaged, whether such business may need to seek additional capital, may desire to have its shares publicly traded, or may seek other perceived advantages which the Company may offer.

It is anticipated that any securities issued in any such business combination would be issued in reliance upon exemption from registration under applicable federal and state securities laws. In some circumstances, however, as a negotiated element of its transaction, the Company may agree to register all or a part of such securities immediately after the transaction is consummated or at specified times thereafter. If such registration occurs, it will be undertaken by the surviving entity after the Company has entered into an agreement for a business combination or has consummated a business combination. The issuance of additional securities and their potential sale into any trading market which may develop in the Company's securities may depress the market value of the Company's securities in the future if such a market develops, of which there is no assurance.

While the terms of a business transaction to which the Company may be a party cannot be predicted, it is expected that the parties to the business transaction will desire to avoid the creation of a taxable event and thereby structure the acquisition in a tax-free reorganization under Sections 351 or 368 of the Internal Revenue Code of 1986, as amended.

13 THREE AND SIX MONTHS ENDED JUNE 30, 2014 COMPARED TO THE THREE AND SIX MONTHS ENDED JUNE 30, 2013 Three months ended June 30, Six months ended June 30, 2014 2013 2014 2013 Net Revenues $ - $ - $ - $ - Cost of sales - - - - Operating Expenses: Depreciation and amortization 11,891 - 23,516 - General and administrative 149,495 8,801 250,154 8,871 Total operating expenses 161,386 8,801 273,670 8,871 Loss from operation (161,396) (8,801) (273,670) (8,871) Total other income (expense) (22,500) - (32,050) - Net income (loss) $ (183,886)$ (8,801)$ (305,720)$ (8,871)



Six Month Period Ended June 30, 2014

Revenues



During the six month period ended June 30, 2014 and for the prior fiscal year we had no revenue

Depreciation and amortization expense. For the six months ended June 30, 2014, depreciation and amortization expense was $23,516 as compared to $0 for the six months ended June 30, 2013. The increase in depreciation and amortization expense is due to the reverse merger of Innovation In Motion and investments in further developing the HDR Intelligent Accessory Platform.

General and Administrative Expenses. For the six months ended June 30, 2014 general and administrative expenses were $250,154 as compared to $8,871 for the six months ended June 30, 2013, an increase of $241,293. For the six months ended June 30, 2014 and 2013 general and administrative expenses consisted of the following:

Six Months Ended Six Months Ended June 30, 2014 June 30, 2013 Occupancy $ 22,899 $ - Employee compensation 65,913 - Professional fees 125,956 6,539 Internet/Phone 8,715 - Travel/Entertainment 5,104 563 Marketing 8,143 - Other 13,424 1,769 $ 250,154 $ 8,871 · For the six months ended June 30, 2014, Occupancy expense increased to $22,899 as compared to $0. · For the six months ended June 30, 2014, salaries and related expenses increased to $65,913 as compared to $0. · For the six months ended June 30, 2014, Professional fee expense increased to $125,956 as compared to $6,539. · For the six months ended June 30, 2014, travel and entertainment expense increased to $5,104 as compared to $563. · For the six months ended June 30, 2014, marketing expense increased to $8,143 as compared to $0. · For the six months ended June 30, 2014, Internet and Telephone expense amounted to $8,715 as compared to $0 for the six months ended June 30, 2013. · For the six months ended June 30, 2014, Other expense amounted to $13,424 as compared to $1,769 for the six months ended June 30, 2013.



Three Month Period Ended June 30, 2014

During the three months ended June 30, 2014 and for the prior fiscal year we had no revenue.

General and administrative expense. For the three months ended June 30, 2014, general and administrative expenses were $149,495 as compared to $8,801 for the three months ended June 30, 2013, an increase of $140,694. For the three months ended June 30, 2014 and 2013 general and administrative expenses consisted of the following:

Three Months Ended Three Months Ended June 30, 2014 June 30, 2013 Occupancy $ 10,904 $ - Employee compensation 48,955 - Professional fees 76,100 6,469 Internet/Phone 4,355 - Travel/Entertainment 3,566 563 Marketing 3,395 - Other 2,220 1,769 $ 149,495 $ 8,801



· For the three months ended June 30, 2014, Occupancy expense increased to

$10,904 as compared to $0.

· For the three months ended June 30, 2014, salaries and related expenses

increased to $48,955 as compared to $0. The increase is due to increased

headcount.

· For the three months ended June 30, 2014, Professional fee expense increased

to $76,100 as compared to $6,469.

· For the three months ended June 30, 2014, travel and entertainment expense

increased to $3,566 as compared to $563.

· For the three months ended June 30, 2014, marketing expense increased to

$3,395 as compared to $0.

· For the three months ended June 30, 2014, Internet and Telephone expense

amounted to $4,355 as compared to $0 for the three months ended June 30, 2013.

· For the three months ended June 30, 2014, Other expense amounted to $2,220 as

compared to $1,769 for the three months ended June 30, 2013.



Liquidity and Capital Resources

As of June 30, 2014, we had total current assets of $21,199 and we had total current liabilities of $973,668.

Operating activities used $173,210 in cash for the six months ended June 30, 2014, as compared to using $263,242 in cash for the six months ended June 30, 2013. Our net loss of $305,720 for the six months ended June 30, 2014, was offset by depreciation and amortization expense of $23,516, and a decrease in other assets of $112,000, offset by a decrease in accounts payable of $3,006.

Investing activities for the six months ended June 30, 2014 totaled $496,960, and included the purchase of fixed assets of $419,266, and the investment in intangible assets of $77,694. Financing activities for the six months ended June 30, 2014 totaled $685,385, and was comprised of notes payable.

As of June 30, 2014 and the date of this report, we have insufficient cash to operate our business at the current level for the next twelve months and insufficient cash to achieve our business goals. The success of our business plan is contingent upon us obtaining additional financing. We intend to fund operations through debt and/or equity financing arrangements, which may be insufficient to fund our capital expenditures, working capital, or other cash requirements. We do not have any formal commitments or arrangements for the sales of stock or the advancement or loan of funds at this time. There can be no assurance that such

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additional financing will be available to us on acceptable terms, or at all. Our failure to obtain financing would have a material adverse effect on our business.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements that 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 is deemed by our management to be material to investors.

Contractual Obligations None.



Seasonal Aspects of the Business

There are no seasonal aspects of the business that have a material effect on the financial condition or results of the operation.

Recent Accounting Policies



The recent material accounting policies that may be the most critical to understanding of the financial results and conditions are discussed in Note 2 of the unaudited financial statements.


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Source: Edgar Glimpses


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