News Column


August 13, 2014

This report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objections of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements or belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words "may," "could," "estimate," "intend," "continue," "believe," "expect" or "anticipate" or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Except for ongoing securities laws, we do not intend, and undertake no obligation, to update any forward-looking statement. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any or our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. The factors impacting these risks and uncertainties include, but are not limited to; increased competitive pressures from existing competitors and new entrants; our ability to efficiently and effectively finance our operations; deterioration in general or regional economic conditions; adverse state or federal legislation or regulation that increases the costs of compliance; ability to achieve future sales levels or other operating results; the fact that our accounting policies and methods are fundamental to how we report our financial condition and results of operations, and they may require management to make estimates about matters that are inherently uncertain; the psychic services market; our ability to develop a fully-functioning web portal; changes in U.S. GAAP or in the legal, regulatory and legislative environments in the markets in which we operate; inability to efficiently manage our operations; the inability of management to effectively implement our strategies and business plans; and the other risks and uncertainties detailed in this report.

Throughout this report references to "we", "our", "us", "PFN", "the Company", and similar terms refer to Psychic Friends Network, Inc.



Psychic Friends Network, Inc. (OTC:PFNI) hereinafter, ("the Company") was incorporated in the State of Nevada on May 9, 2007 under the name "Web Wizard, Inc.". On February 17, 2012 the Company changed its name to "Psychic Friends Network, Inc." pursuant to the terms of an asset purchase agreement executed on January 27, 2012. As part of such agreement, all of the assets of PFN Holdings were purchased. These assets are an integral part of the Company's business development and ultimately the realization of the Company's anticipated cash flows.


The Company is in the business of providing daily horoscopes, astrological reports and live psychic advice by telephone, internet, or our soon to be released mobile application. Our latest development includes the launch of our newly updated website, where customers can now not only connect to the advisor of their choice by telephone, but by live audio and video chat as well. They can connect from computers, tablets or even mobile phones. Our website is First time customers are offered promotions and are able to choose their psychic friend by specialties, and by reading their bios and feedback. They also are able to establish an ongoing relationship with


their advisor, or they can choose to try someone new the next time they call. We will strive to stay on the cutting edge of technology in an effort to deliver our content. Currently this includes Facebook applications, and twitter pages, that can reward our customers with free credits towards readings for sharing, liking or tweeting about PFN. We will also soon be giving each of our psychics their own websites where we will incentivize them to find new customers.


The following discussion of the financial condition and results of operations should be read in conjunction with the unaudited interim financial statements included herewith. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future.



We generated $24 in revenue for the three months ended June 30, 2014 compared to $0 during the same period in 2013, and $1,735 in revenue for the nine months ended June 30, 2014 compared to $987 for the same period in 2013.

The Company commenced commercial operations as of September 30, 2013.

We do not anticipate earning significant revenues until such time that we have sufficient capital to market our services.


During the three months ended June 30, 2014, total operating expenses for the Company were $69,143 compared to $105,059 during the same period in 2013 and $234,550 in total operating expenses for the nine months ended June 30, 2014 compared to $374,611 for the same period in 2013. The decrease in expenses was due to the higher expense incurred in the 2013 periods primarily for website development and advertising.


Our net loss for the three months ended June 30, 2014 was $90,573 compared to $105,059 during the same period in 2013, and $263,168 net loss for the nine months ended June 30, 2014 compared to $374,956 for the same period in 2013. As we have incurred no substantial revenues, the net loss figures follow our operating expenses.


As of June 30, 2014, we have yet to generate any material revenues from our business operations as our website, while operational, has yet to be marketed.

As of June 30, 2014, we had $16,767 in cash and $51,171 in total assets, of which $34,329 is attributed to website development. Our total liabilities were $166,822.

In the nine months ended June 30, 2014, the Company has borrowed an aggregate of $106,000 in investor financing via the issuance of convertible promissory notes. See Note 4 "Convertible Note Payable" within the notes to our financial statements.


The Company believes it currently does not have sufficient funds to execute its business plan. We anticipate that additional capital will be required to implement our business plan to pay for marketing efforts to support revenue for 2014. In order to obtain the necessary capital, the Company may need to sell additional shares of common stock or borrow funds from private lenders.

Even if we are able to raise the funds required, it is possible that we could incur unexpected costs and expenses, fail to collect significant amounts owed to us or experience unexpected cash requirements that would force us to seek alternative financing. Further, if we issue additional equity or debt securities as a means of raising additional capital, stockholders may experience dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of common stock.




See Note 2 "Significant Accounting Policies" within the notes to our financial statements.

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Source: Edgar Glimpses

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