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REDSTONE LITERARY AGENTS, INC. - 10-Q - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

August 14, 2014

FORWARD-LOOKING STATEMENTS

Some of the statements contained in this Form 10-Q that are not historical facts are "forward-looking statements" which can be identified by the use of terminology such as "estimates," "projects," "plans," "believes," "expects," "anticipates," "intends," or the negative or other variations, or by discussions of strategy that involve risks and uncertainties. We urge you to be cautious of the forward-looking statements, that such statements, which are contained in this Form 10-Q, reflect our current beliefs with respect to future events and involve known and unknown risks, uncertainties and other factors affecting our operations, market growth, services, products and licenses. No assurances can be given regarding the achievement of future results, as actual results may differ materially as a result of the risks we face, and actual events may differ from the assumptions underlying the statements that have been made regarding anticipated events.

All written forward-looking statements made in connection with this Form 10-Q that are attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Given the uncertainties that surround such statements, you are cautioned not to place undue reliance on such forward-looking statements.

RESULTS OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2014 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2013

REVENUE

We had no revenue for the three months ended June 30, 2014 and 2013 reflecting our status as a development stage company.

OPERATING EXPENSES

We incurred operating expenses of $9,134 and $3,271 for the three months ended June 30, 2014 and 2013, respectively. The increase in operating expenses between the two periods related primarily to the increase in filing and transfer agent fees.

NET LOSS

We incurred a net loss of $9,134 and $3,271 for the three months ended June 30, 2014 and 2013, respectively, due to the factors discussed above.

SIX MONTHS ENDED JUNE 30, 2014 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2013

REVENUE

We had no revenue for the six months ended June 30, 2014 and 2013 reflecting our status as a development stage company.

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OPERATING EXPENSES

We incurred operating expenses of $23,740 and $7,830 for the six months ended June 30, 2014 and 2013, respectively. The increase in operating expenses between the two periods related primarily to the increase in filing and transfer agent fees.

NET LOSS

We incurred a net loss of $23,740 and $7,830 for the six months ended June 30, 2014 and 2013, respectively, due to the factors discussed above.

LIQUIDITY AND CAPITAL RESOURCES

These financial statements have been prepared on a going concern basis which assumes that our company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. We have incurred losses since inception resulting in an accumulated deficit of $(69,602) as at June 30, 2014 and further losses are anticipated in the development of its business raising substantial doubt about our company's ability to continue as a going concern. The ability to continue as a going concern is dependent upon our company generating profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from directors and/or other related parties or raising additional capital through equity or debt financings.

The following table provides selected financial data about our company for the period ended June 30, 2014:

Balance Sheet Data June 30, 2014 ------------------ ------------- Cash $ 115 Total assets $ 115 Total liabilities $ 9,717 Shareholders' Deficit $(9,602)



As of June 30, 2014, our company had a loan outstanding with our of company's shareholders in the amount of $9,717. The loan bears an interest rate of 4%, due upon demand and unsecured.

We currently have no plans to hire additional employees in the next twelve months unless sales are sufficient to cover the cost.

CASH FLOW INFORMATION FOR THE SIX MONTHS ENDED JUNE 30, 2014 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2013

OPERATING ACTIVITIES

During the six months ended June 30, 2014 we used $23,550 in operating activities compared to $7,830 in the six months ended June 30, 2013. The increase between 2013 and 2014 primarily relates to the increase in net loss between the two periods.

13 INVESTING ACTIVITIES



During the six months ended June 30, 2014 and 2013, we neither generated, nor used, any funds from investing activities.

FINANCING ACTIVITIES

During the six months ended June 30, 2014, we neither generated, nor used, any funds from financing activities.

CURRENT BUSINESS AND PLAN OF OPERATION

While we continue attempting to advance our current business of representing authors to publishers, we will be concurrently seeking other business opportunities with established business entities for the merger or other form of business combination with our company.

LITERARY BUSINESS

As stated in our last quarterly report, we will be doing research about upcoming book fairs. We need to also secure a few vendor events that are low cost for us to be able to exhibit our services. If we are able to identify any authors, we will be working on draft transcripts for these authors and we will also be working with established authors to assist them in promoting their publications via marketing communications practices.

However, competition in the literary industry is fierce. If we cannot successfully compete, our business may be adversely affected. If we are able to establish our business we will compete against a large number of well-established companies with greater product and name recognition and with substantially greater financial, marketing and distribution capabilities than ours, as well as against a large number of small specialty producers. There can be no assurance that we can compete successfully in this complex and changing market.

OTHER BUSINESS OPPORTUNITIES

We will also be seeking new business opportunities with established business entities for the merger or other form of business combination with our company. We anticipate that any new acquisition or business opportunities that we may acquire will require additional financing. There can be no assurance, however, that we will be able to acquire the financing necessary to enable us to pursue our plan of operation and enter into such an agreement. If our company requires additional financing and we are unable to acquire such funds, our business may fail.

Even if we are able to enter into a business opportunity and obtain the necessary funding, there is no assurance that we will be able to generate any revenues and that any such revenues generated would be sufficient to provide a return to investors.

We may seek a business opportunity with entities that have recently commenced operations, or entities that wish to utilize the public marketplace in order to raise additional capital in order to expand business development activities, to develop a new product or service, or for other corporate purposes. We may acquire assets and establish wholly-owned subsidiaries in various businesses or acquire existing businesses as subsidiaries.

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In implementing a structure for a particular business acquisition or opportunity, we may become a party to a merger, consolidation, reorganization, joint venture, or licensing agreement with another corporation or entity. We may also acquire stock or assets of an existing business. Upon the consummation of a transaction, it is likely that our present management will no longer be in control of our company. In addition, it is likely that our sole officer and director will, as part of the terms of the acquisition transaction, resign and be replaced by one or more new officers and directors.

We anticipate that the selection of a business opportunity in which to participate will be complex and without certainty of success. We believe that there are numerous firms in various industries seeking the perceived benefits of being a publicly reporting corporation. 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 extremely difficult and complex. Business opportunities that we believe are in the best interests of our company may be scarce or we may be unable to obtain the ones that we want. We can provide no assurance that we will be able to locate compatible business opportunities.

CASH REQUIREMENTS

We anticipate that our cash on hand will not be sufficient to satisfy all of our cash requirements for the next twelve month period. We currently do not have committed sources of additional financing and may not be able to obtain additional financing, particularly, if the volatile conditions in the stock and financial markets persist. If we require any additional financing, we plan to raise any such additional capital primarily through equity or debt financing, provided that such funding continues to be available to our company. There is no assurance that we will be able to obtain further funds required for our continued operations or that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain additional financing as required on a timely basis, we will not be able to meet certain obligations as they become due and we will be forced to scale down or perhaps even cease our operations.

In their report on our financial statements for the year ended December 31, 2013, our independent auditors included an explanatory paragraph regarding the substantial doubt about our ability to continue as a going concern. We have not yet achieved profitable operations, have accumulated losses since our inception and expect to incur further losses in the development of our business, all of which raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon our ability to generate future profitable operations and/or to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

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 of operations, liquidity, capital expenditures or capital resources that are material to investors.


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Source: Edgar Glimpses


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