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JOLLEY MARKETING INC - 10-Q - Management's Discussion and Analysis of Financial Condition and Results of Operations

August 8, 2014

Forward-Looking Statement Notice

This Form 10-Q contains certain forward-looking statements. For this purpose any statements contained in this Form 10-Q that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "may," "expect," "believe," "anticipate," "estimate" or "continue" or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within our control. These factors include but are not limited to economic conditions generally and in the industries in which we may participate; competition within our chosen industry, including competition from much larger competitors; changes in rules or regulations relating to shell companies; technological advances and failure to successfully develop business relationships.

Overview General



Jolley Marketing, Inc. was incorporated on December 3, 1998, in the State of Nevada. Our company has assets of nominal value and we have generated no revenue since September 2008. We are a "shell company" as defined pursuant to Rule 12b-2 under the Securities Exchange Act of 1934 (the "Exchange Act"). We intend to seek to acquire the assets or voting securities of one or more other companies that are actively engaged in a business that generates revenues in exchange for securities of our company, or to be acquired by such a company. We have not identified a particular acquisition target or entered into any negotiations regarding any acquisition.

Our company currently intends to remain a shell company until a merger or acquisition is consummated. We currently anticipate that our company's cash requirements will be minimal until we complete such a merger or acquisition and that our sole director and officer, or his affiliates, will provide the financing that may be required for our limited operations prior to completing such a transaction. We currently have no employees. Our sole director and officer has agreed to allocate a portion of his time to the activities of our company, without cash compensation. He anticipates that we can implement our business plan by devoting a portion of his available time to our business affairs.

Three Month Periods Ended June 30, 2014 and 2013

Revenue

Our revenues for the three months ended June 30, 2014 and 2013, were $0 and $0, respectively.

Operating Expenses



For the three months ended June 30, 2014, operating expenses were $5,741, consisting of $3,535 in professional fees, interest expense of $2,106, and other general and administrative costs of $100. For the three months ended June 30, 2013, operating expenses were $5,740, consisting of $3,886 in professional fees, interest expense of $1,745, and other general and administrative costs of $100. The Company's interest expense increased during the three months ended June 30, 2014 as compared to the three months ended June 30, 2013, due to an increase in the notes payable.

Net Loss



Our net losses for the three months ended June 30, 2014 and 2013 were $5,741 and $5,740, respectively, which resulted in a net loss per share of $0.00 for each period.

Six Month Periods Ended June 30, 2014 and 2013

Revenue

Our revenues for the six months ended June 30, 2014 and 2013, were $0 and $0, respectively.

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Operating Expenses

For the six months ended June 30, 2014, operating expenses were $15,756, consisting of $11,499 in professional fees, interest expense of $4,082, and other general and administrative expenses of $175. For the six months ended June 30, 2013, operating expenses were $15,789, consisting of $12,340 in professional fees, interest expense of $3,349, and other general and administrative expenses of $100.

Net Loss



Our net losses for the six months ended June 30, 2014 and 2013 were $15,756 and $15,789, respectively, which resulted in a net loss per share of $0.00 for each period.

Liquidity and Capital Resources

The Company's balance sheet as of June 30, 2014, reflects total current assets of $1,289, consisting of cash. As of June 30, 2014, our current liabilities were $142,076 which included $10,422 in accounts payable, $108,350 in notes payable to related parties, and $23,304 in interest payable.

We anticipate our expenses to be limited to accounting, auditing, legal and filing fees associated with continuing our reporting status with the Securities and Exchange Commission along with miscellaneous expenses related to our corporate existence. We estimate our ongoing expenses to be $20,000 per year. We do not have any commitments for capital expenditures nor do we anticipate entering into any such commitments. We will likely need additional funds to cover our expenses for the next year.

In the past we have relied on advances from a related party to cover our operating costs. Management anticipates that we will receive sufficient advances to meet our needs through the next 12 months. However, there can be no assurances to that effect. Our need for capital may change dramatically if we acquire an interest in a business opportunity during that period. At present, we have no understandings, commitments or agreements with respect to the acquisition of any business venture, and there can be no assurance that we will identify a business venture suitable for acquisition in the future. Further, we cannot assure that we will be successful in consummating any acquisition on favorable terms or that we will be able to profitably manage any business venture we acquire. Should we require additional capital, we may seek additional advances from officers, sell common stock or find other forms of debt financing.

The Company has no other assets or line of credit, other than that which present management may agree to extend to or invest in the Company, nor does it expect to have one before a merger is affected. The Company will carry out its business plan as discussed above. The Company cannot predict to what extent its liquidity and capital resources will be diminished prior to the consummation of a business combination or whether its capital will be further depleted by the operating losses (if any) of the business entity which the Company may eventually acquire.

Our current operating plan is to continue searching for potential businesses, products, technologies and companies for acquisition and to handle the administrative and reporting requirements of a public company.


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Source: Edgar Glimpses


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