News Column

ACEWAY CORP. - 10-K - Management's Discussion and Analysis of Financial Condition and Results of Operations.

August 19, 2014

Except for historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties, including, among other things, statements regarding our business strategy, future revenues and anticipated costs and expenses. Such forward-looking statements include, among others, those statements including the words "expects," "anticipates," "intends," "believes" and similar language. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed herein as well as in the "Description of Business - Risk Factors" section in our Form S-1 Amendment No. 3, as filed on November 27, 2013. You should carefully review the risks described in our Prospectus and in other documents we file from time to time with the Securities and Exchange Commission. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. We undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or circumstances after the date of this document. Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements.



All references in this Form 10-Q to the "Company," "Aceway," "we," "us," or "our" are to Aceway Corp.

Corporate Overview

We were incorporated under the laws of the state of Nevada on April 1, 2013 and intend to engage in the distribution of electronic equipment throughout South America. Our fiscal year end is June 30. Our business address is Ave. Aquilino De La Guardia y Calle 47, Ocean Business Plaza Building, Suite 1604, Panama City, Panama. The address of our agent for service in Nevada and registered corporate office is c/o Corp 95, LLC, 2620 Regatta Dr., Suite 102, Las Vegas, NV 89128. Our telephone number is 1-888-475-4489. 10 -------------------------------------------------------------------------------- We intend to import and market Chinese produced electronic accessories into the South American market via our website: www.shopaceway.com. We anticipate that these products will be sold directly to end users through our website, but we may also develop a distribution network to provide our products to retailers. We anticipate initially offering our products in Panama and Costa Rica.



Results of Operations

The period ended June 30, 2013 is comprised of 62 days as compared to an entire year for June 30, 2014.

We have generated no revenues since inception (April 1, 2013) and have incurred $44,108 in expenses through June 30, 2014.

The following table provides selected financial data about our company for the year ended June 30, 2014 and the year ended June 30, 2013.

Balance Sheet Date June 30, 2014June 30, 2013

Cash $ 18,705$ 23,667 Total Assets $ 18,705$ 24,367 Total Liabilities $ 7,813 $ 4,813 Stockholders' Equity $ 10,892$ 19,554



The following summary of our results of operations, for year ended June 30, 2014, should be read in conjunction with our financial statements, as included in this Form 10-K.

April 1, 2013 Year Ended Year Ended (inception) through June 30, 2014 June 30, 2013 June 30, 2014 REVENUES: $ - $ - $ - OPERATING EXPENSES: General and administrative 3,213 947 4,160 Professional fees 35,449 4,499 39,948 Total Operating Expenses 38,662 5,446 44,108 Net loss from operations $ (38,662 )$ (5,446 )$ (44,108 ) Revenue



We have generated no revenues since inception on April 1, 2013.

Expenses

We have a net loss of $44,108 since inception on April 1, 2013 through June 30, 2014. Total expenses were comprised of professional fees of 39,948 and general and administrative costs of $4,160. 11 -------------------------------------------------------------------------------- Operating expenses for the year ended June 30, 2014 increased by $33,216 from $5,446 for the period ended June 30, 2013. The increase in expenses can be attributed to increased professional fees, general and administrative expenses as we had a full year of operations for 2014 as compared to 62 days for the period from inception to June 30, 2013. Our professional fees of $39,948 were primarily due to legal and accounting fees related to our recent S-1 registration statement and other regulatory costs.



Liquidity and Financial Condition

Currently we only have sufficient capital to cover our ongoing regulatory costs for the next 12 months. We do not have sufficient funds for any our business development over the next 12 months.



Working Capital

As At June 30, (Decrease)/ 2014 2013 Increase



Current Assets $ 18,705$ 24,367$ (5,662 ) Current Liabilities 7,813 4,813

3,000 Working Capital $ 10,892$ 19,554$ (8,662 ) April 1, 2013 Cash Flows Year Ended Year Ended (inception) June 30, 2014 June 30, through 2013 June 30, 2014 Net cash used in operating activities $ (34,962 )$ (2,646 )$ (37,608 ) Net Cash Used in Investing Activities - - - Net cash provided by financing activities 30,000 26,313 56,313 Net increase in cash and cash equivalents $ (4,962 ) $



23,667 $ 18,705

Cash Flow from Operating Activities

During the year ended June 30, 2014, our company used $34,962 in cash from operating activities compared to the use of $2,646 of cash for operating activities during the period ended June 30, 2013. The increase in cash used for operating activities was primarily attributed to professional fees related to our recent S-1 offering and other regulatory requirements.



Cash Flow from Investing Activities

From inception through to June 30, 2014, we did not have any cash flows from investing activities.

Cash Flow from Financing Activities

During the year ended June 30, 2014, our company received $30,000 in cash in financing activities primarily from proceeds from the issuance of common shares to unaffiliated investors, compared to cash provided by financing activities of $26,313 for the period ended June 30, 2013, for $25,000 cash received from an officer for purchase of common shares and $1,313 non-interest bearing demand loan received from an officer.



We had no material commitments for capital expenditures as at June 30, 2014 and 2013.

12 --------------------------------------------------------------------------------



We have no known demands or commitments, and we are not aware of any events or uncertainties as at June 30, 2014 that will result in or that is reasonably likely to materially increase or decrease our current liquidity.

Going Concern

Our auditors have issued a going concern opinion. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay for our expenses. This is because we have not generated any revenues and no sales are yet possible. There is no assurance we will ever reach this point. Accordingly, we must raise sufficient capital from sources. Our only other source for cash at this time is investment by our sole director and officer. We must raise cash to stay in business. In response to these problems, management intends to raise additional funds through public or private placement offerings. At this time, however, the Company does not have plans or intentions to raise additional funds by way of the sale of additional securities, other than pursuant to our current Offering.



Plan of Operation

Our business objectives for the next 12 months, provided the necessary funding is available, are to generally expand upon our business, with a focus on the development of our website and development of a customer base. We believe that we will be able to generate revenue once we have developed our website to the point where it can accept orders and payment. We will require $130,000 in order to carry out our anticipated business operations for the next 12 months. There can also be no assurance that we will be able to raise the additional capital we require to operate our business for the next 12 months.



The following chart provides an overview of our budgeted expenditures for the 12 months. The expenditures are categorized by significant area of activity.

Legal and Accounting $ 20,000 Website Development $ 35,000 Marketing $ 50,000 Development of Supply Chain $ 25,000 General and Administrative - $ 20,000 As of June 30, 2014 cash in hand - $18,705$ 150,000



In order to fully carry out our business plan, we need additional financing of approximately $130,000 for the next 12 months. In order to improve our liquidity, we intend to pursue additional equity financing from private placement sales of our equity securities or shareholders' loans. We do not presently have sufficient financing to undertake our planned business activities. Issuances of additional shares will result in dilution to our existing shareholders.

We currently do not have any arrangements in place for the completion of any further private placement financings and there is no assurance that we will be successful in completing any further private placement financings. If we are unable to achieve the necessary additional financing, then we plan to reduce the amounts that we spend on our business activities and administrative expenses in order to be within the amount of capital resources that are available to us. 13 --------------------------------------------------------------------------------



Limited Operating History; Need for Additional Capital

There is no historical financial information about us on which to base an evaluation of our performance. We are a development stage company and have generated no revenues from operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, possible delays in developing our website, and possible cost overruns due to the price and cost increases in supplies and services.



At present, we only have enough cash on hand to cover operating costs and for the next 12 months.

If we are unable to meet our needs for cash from either our operations, or possible alternative sources, then we may be unable to continue, develop, or expand our operations.

Liquidity and Capital Resources

To meet our need for cash we raised money from our recent Offering. On December 6, 2013, the Company's Registration Statement on Form S-1 was declared effective, which the Company sought to raise $60,000 under the Offering. As of the date of this report the Company has sold 10,000,020 at $0.003 per share for $30,000 cash. To date we have not developed our business and principal plan of operations and thus our expenses have been primarily for professional fees related to our registration statement and ongoing regulatory expenses.



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 is material to investors.



Critical Accounting Policies and Estimates

We prepare our financial statements in conformity with GAAP, which requires management to make certain estimates and apply judgments. We base our estimates and judgments on historical experience, current trends and other factors that management believes to be important at the time the condensed consolidated financial statements are prepared. On a regular basis, we review our accounting policies and how they are applied and disclosed in our condensed consolidated financial statements.



While we believe that the historical experience, current trends and other factors considered support the preparation of our condensed consolidated financial statements in conformity with GAAP, actual results could differ from our estimates and such differences could be material.

14



--------------------------------------------------------------------------------


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Edgar Glimpses


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters