The financial data presented below should be read in conjunction with the more
detailed financial statements and related notes, which are included elsewhere in
this report. Information discussed herein, as well as elsewhere in this
quarterly report on Form 10-Q, includes forward-looking statements or opinions
regarding future events or the future financial performance of the Company, and
are subject to a number of risks and other factors which could cause the actual
results to differ materially from those contained in forward-looking statements.
Among such factors are general business and economic conditions, and risk
factors as listed in its Annual Report on Form 10-K or listed from time to time
in documents filed by the Company with the
Results of Operations - Q3 FY2014.
For the nine months ended
Our net operating losses consist primarily of ongoing costs of operating our website, as well as legal and accounting fees incurred in connection with ongoing
Since inception, we have not generated revenue. We intend for our service directory to go "live" during the course of this fiscal year, at which time we expect to begin generating revenue.
Liquidity and Capital Resources - Q3 FY2014.
Our cash at
Net cash used in operating activities in the nine months ended
Net cash used in operating activities from inception through
Net cash provided by financing activities for the six months ended
Net cash provided by financing activities from inception through
Plan of Operation - FY2014.
The following discussion of our plan of operation for the next 12 months and our discussion of our liquidity and capital resources should be read in conjunction with our financial statements and notes thereto, and the other financial data included in our previously filed annual report. We are including this Plan of Operation in recognition of the fact that we are a development stage company and have yet to achieve operating revenues.
Our plan of operation for the next twelve months is dependent upon our raising additional capital. As of
No assurance can be given however, that we will be able to sell shares of our common stock, and no member of our management is under any obligation to loan money to us. During the fiscal year ending
We have been successful in financing our operational and developmental activities to date by selling shares of our common stock and from advances from our President. However, we have no assurance that we will be able to continue in this way, and our current available cash balance as of
We have recently experienced delays in meeting certain target dates related to our business operations. The delays were principally caused by our need to synchronize the capabilities of our existing servers and to install fiber optic lines in our
We believe that in the 4th quarter of 2014, we will have a sufficient database to make our website marketable. We currently have 9 directory editors who work on a contract basis, research subjects for our directory, create new categories and add websites to our directory. Our average cost per directory consultant is approximately
We currently have five servers in operation - two in
In 2014, contingent on available funding, we intend to start building an administrative staff that will be needed to manage our business as we prepare to move from a developmental to operational mode. In this regard, we plan to add approximately six administrative personnel and expect to begin to incur related payroll costs of approximately
By late 2014, we anticipate that we will have sufficiently developed our database to the point where we can offer a product that will be receptive to potential customers. At that time, although we will continue to add to our database, we intend to start adding marketing personnel to develop and implement a plan to bring our product into the marketplace. We plan to add 2 marketing personnel per month beginning in late 2014 until we reach a total of 10 at an approximate monthly payroll cost of
We expect that our marketing team will be fully assembled by the third quarter of 2014. At that point, much of the effort of our marketing team will be directed to developing a national marketing effort and formulating a plan and cost projection to carry it out. Our national marketing effort is not expected to commence until after
A major portion of our anticipated revenues is expected to come from Pay Per Click fees which we expect will commence in late 2014. We are presently generating 245,000 clicks per month and we have no agreements in place at this time to convert clicks to cash. Our rate structure will be a flat
Banners will be sold on an annual basis, starting as soon as possible after
We intend to introduce a fixed "price per click" (as opposed to the highest bid strategy employed by all known competitors) which we expect to yield a following dedicated to true content matching rather than a ranking based on price. This plan will be modified to offer discounts to sites producing the highest click ratings. We believe this strategy is not yet in wide use and will require a series of modifications to test and prove the concept. In the opinion of management, the bidding concept for key words is not the proper, customer-centric way to determine the priority order of websites to be shown in search results. We believe that showing the most frequently accessed sites at the top of the results list produces a more practical result for users/searchers.
Off-Balance Sheet Arrangements.
We have no off-balance sheet arrangements.
Critical Accounting Policies.
We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our financial statements.
Development Stage Activities
The Company was incorporated in the state of
The Company measures and recognizes compensation expense for all share-based payment awards made to employees, consultants and directors based on their grant-date estimated fair values over the period in which the share-based awards are expected to vest.
Use of Estimates
The preparation of financial statements requires us to make assumptions, estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and disclosures of contingent assets and liabilities as of the date of the financial statements. On an ongoing basis, we evaluate our estimates, including those related to reserves; impairment of website development cost, value of our stock issued to consultants for services and deferred taxes. We base our estimates on assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions; however, we believe that our estimates, including those for the above-described items are reasonable.