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. Ultimate Rack, Inc. (1540237) 10-Q published on Sep 22, 2014 at 3:17 pm
Reporting Period: Jul 30, 2014
Earnings per Share
Earnings per share ("EPS") is the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16 Basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants.
Pursuant to ASC Paragraphs 260-10-45-45-21 through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. The dilutive effect of outstanding call options and warrants (and their equivalents) issued by the reporting entity shall be reflected in diluted EPS by application of the treasury stock method unless the provisions of paragraphs 260-10-45-35 through 45-36 and 260-10-55-8 through 55-11 require that another method be applied. Equivalents of options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions (see paragraph 260–10–55–23). Anti-dilutive contracts, such as purchased put options and purchased call options, shall be excluded from diluted EPS. Under the treasury stock method: a. Exercise of options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued. b. The proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period. (See paragraphs 260-10-45-29 and 260-10-55-4 through 55-5.) c. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation.
We were incorporated in the State of Nevada on July 19, 2010 as Ultimate Rack Inc. and are based in Plano, Texas. We are a development stage company and have not yet commenced operations. However, we are proceeding with our new business plan. Ultimate Rack Inc. is a global holdings company created to acquire travel and leisure companies, marketing companies and technologies to elevate the way travel is sold around the world. Our "Blue Ocean" strategies for customer acquisition are powered by thirty plus years of online and offline experience in the worldwide travel space.
The Company's CEO, Robert Oblon, currently has elected to not take a salary in the first six months of business operations. During this time, if the Company receives any revenues, such revenues will be directed at the other costs of operations of the company. Such costs are potentially defined as expenses related to the execution of the Company’s business plan as well as the costs associated with the Company maintaining its public filing requirements.
On August 21, 2014, the Company entered into a consulting and Advisory agreement with Travopoly Travel, LLC. Travopoly is the largest shareholder of the Company and our current CEO and sole director is an affiliate. Engaging Travopoly Travel is a result of management’s decision to pursue a business model that enables a greater degree of success for the Company and its shareholders due to the experience and infrastructure possessed by Travopoly.