Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. AAA CENTURY GROUP USA, INC. (1409014) 10-Q published on Nov 21, 2016 at 12:31 pm
(3) Authorizing the Board of Directors to effectuate a forward split of the Companys 22,564,000 currently issued and outstanding common shares of no less than two-for-one and no more than five-for-one, as and when determined by the Companys Board of Directors.
The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) and in conformity with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures included in these financial statements are adequate to make the information presented not misleading. The unaudited condensed financial statements included in this document have been prepared on the same basis as the annual financial statements, and in our opinion reflect all adjustments, which include normal recurring adjustments necessary for a fair presentation in accordance with US GAAP and SEC regulations for interim financial statements. The results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that we will have for any subsequent period. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and the notes to those statements for the year ended December 31, 2015 included in our Annual Report on Form 10-K.
The Company's unaudited condensed financial statements are prepared using the accrual method of accounting in accordance with U.S. GAAP, and have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The Company reported net income of $20,416 during the quarter ended September30, 2016, due almost entirely because of the cancellation of debt as part of the change of control in June 2016, but has an accumulated deficit of $339,395 since inception. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern.
The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.
On April 8, 2011, the Company entered into a Promissory note with Doug Brackin (a related party) for a total of $62,500. From time to time, Doug Brackin advanced to the Company funds to cover operating expenses. On April 25, 2015, the Company entered into a definitive agreement to sell all of the membership interests in Brackin OConnor, LLC to the original members of Brackin OConnor, LLC for $25,000 which was used to fully pay the remaining Note Payable principal balance and reduced accrued interest. As of December 31, 2015, Brackin was owed $25,720 in accrued interest. On June 30, 2016, the company wrote off the interest in complete fulfillment of all outstanding obligations.
On September 14, 2013, the Company entered into various promissory notes (Notes) for a total of $215,000 due on December 31, 2014. The Notes accrued interest at a rate of 1.0% per month. The Company entered into settlement agreements with the promissory noteholders. The total amount owed for principal was $215,000, of which $190,000 was paid off at the change in ownership. The remaining amount plus accrued interest was extinguished, resulting in a gain of $87,308. Interest expense totaled $5,360 and $16,081 for the nine months ended September 30, 2016 and 2015, respectively.