mainbody.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
10-Q
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[X]
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Quarterly
Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
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For
the quarterly period ended July 31,
2008
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[ ]
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Transition
Report pursuant to 13 or 15(d) of the Securities Exchange Act of
1934
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For
the transition period to __________
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Commission
File Number: 333-148922
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Jumpkicks,
Inc.
(Exact
name of small business issuer as specified in its charter)
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Delaware
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26-0690857
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(State
or other jurisdiction of incorporation or organization)
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(IRS
Employer Identification No.)
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1018 Klamath River
Avenue, Henderson, NV 89002
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(Address
of principal executive offices)
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888-283-1426
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(Issuer’s
telephone number)
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______________________________________________________
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(Former
name, former address and former fiscal year, if changed since last
report)
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Check
whether the issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the issuer was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days [X]
Yes [ ] No
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.
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[ ]
Large accelerated filer Accelerated filer
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[ ]
Non-accelerated filer
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[X]
Smaller reporting company
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Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). [X] Yes [ ] No
State the
number of shares outstanding of each of the issuer’s classes of common stock, as
of the latest practicable date: 10,860,000 common shares as of
September 1, 2008.
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Page
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PART I – FINANCIAL
INFORMATION
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PART II – OTHER
INFORMATION
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PART
I - FINANCIAL INFORMATION
These
unaudited financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America for interim
financial information and the SEC instructions to Form 10-Q. In the
opinion of management, all adjustments considered necessary for a fair
presentation have been included. Operating results for the interim
period ended July 31, 2008 are not necessarily indicative of the results that
can be expected for the full year.
JUMPKICKS,
INC.
(A Development Stage Company)
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ASSETS
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(unaudited)
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CURRENT
ASSETS
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Cash
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$ |
4,111 |
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$ |
17,732 |
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Inventory
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283 |
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- |
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Total
Current Assets
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4,394 |
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17,732 |
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FIXED
ASSETS, net
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5,038 |
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5,945 |
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TOTAL
ASSETS
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$ |
9,432 |
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$ |
23,677 |
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LIABILITIES AND STOCKHOLDERS'
EQUITY
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CURRENT
LIABILITIES
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Accounts
payable
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$ |
- |
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$ |
244 |
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Total
Current Liabilities
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- |
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244 |
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STOCKHOLDERS'
EQUITY
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Preferred
stock - $0.001 par value, 10,000,000 shares authorized; no shares
issued and outstanding
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- |
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- |
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Common
stock - $0.001 par value; 90,000,000 sharesauthorized; 10,860,000
shares issued and outstanding
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10,860 |
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10,860 |
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Additional
paid in capital
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16,340 |
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16,340 |
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Accumulated
deficit
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(17,768) |
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(3,767) |
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Total
Stockholders' Equity
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9,432 |
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23,433 |
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TOTAL
LIABILITIES AND
STOCKHOLDERS' EQUITY
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$ |
9,432 |
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$ |
23,677 |
The
accompanying notes are an integral part of these financial
statements.
JUMPKICKS,
INC.
(A Development Stage Company)
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For
the Three Months
Ended July
31, 2008
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From
Inception on August
3, 2007
Through July
31, 2008
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REVENUES
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$ |
- |
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$ |
140 |
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$ |
211 |
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COST
OF GOODS SOLD
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- |
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121 |
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166 |
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GROSS
MARGIN
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- |
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19 |
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45 |
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OPERATING
EXPENSES
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Depreciation
expense
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302 |
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907 |
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1,007 |
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Professional
fees
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4,494 |
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11,620 |
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12,430 |
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General
and administrative
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677 |
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1,611 |
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4,494 |
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Total
Operating Expenses
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5,473 |
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14,138 |
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17,931 |
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LOSS
FROM OPERATIONS
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(5,473) |
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(14,119) |
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(17,886) |
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OTHER
INCOME
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Interest
income
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118 |
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118 |
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118 |
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Total
Other Income
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118 |
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118 |
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118 |
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LOSS
BEFORE INCOME TAXES
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(5,355) |
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(14,001) |
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(17,768) |
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INCOME
TAX EXPENSE
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- |
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- |
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- |
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NET
LOSS
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$ |
(5,355) |
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$ |
(14,001) |
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$ |
(17,768) |
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BASIC
LOSS PER SHARE
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(0.00) |
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(0.00) |
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WEIGHTED
AVERAGE NUMBER OF SHARES OUTSTANDING
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10,860,000 |
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10,860,000 |
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The
accompanying notes are an integral part of these financial
statements.
JUMPKICKS,
INC.
(A Development Stage Company)
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Additional
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Total
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Common
Stock
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Paid-in
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Accumulated
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Stockholders'
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Shares
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Amount
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Capital
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Deficit
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Equity
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Balance
August 3, 2007
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- |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
- |
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Common
stock issued for cash at $0.001 per share
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10,000,000 |
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10,000 |
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- |
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- |
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10,000 |
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Common
stock issued for cash at $0.02 per share
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860,000 |
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860 |
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16,340 |
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- |
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17,200 |
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Net
loss from inception through October 31, 2007
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- |
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- |
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- |
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(3,767) |
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(3,767) |
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Balance,
October 31, 2007
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10,860,000 |
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10,860 |
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16,340 |
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(3,767) |
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23,433 |
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Net
loss for the nine months ended through July 31,
2008
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- |
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- |
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- |
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(14,001) |
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(14,001) |
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Balance,
July 31, 2008
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10,860,000 |
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$ |
10,860 |
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$ |
16,340 |
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$ |
(17,768) |
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$ |
9,432 |
The
accompanying notes are an integral part of these financial
statements.
JUMPKICKS,
INC.
(A Development Stage Company)
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From
Inception on August
3, 2007
Through July
31, 2008
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OPERATING
ACTIVITIES
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Net
Loss
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$ |
(14,001) |
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$ |
(17,768) |
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Adjustments
to reconcile net loss to
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net
cash used by operating activities:
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Depreciation
expense
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907 |
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1,007 |
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Changes
in operating assets and liabilities:
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Changes
in inventory
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(283) |
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(283) |
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Changes
in accounts payable
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(244) |
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- |
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Net
Cash Used by
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Operating
Activities
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(13,621) |
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(17,044) |
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INVESTING
ACTIVITIES
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Increase
in fixed assets and other assets
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- |
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(6,045) |
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Net
Cash Used by
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Operating
Activities
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- |
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(6,045) |
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FINANCING
ACTIVITIES
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Proceeds
from common stock issued
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- |
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27,200 |
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Net
Cash Provided by
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Financing
Activities
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- |
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27,200 |
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NET
DECREASE IN CASH
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(13,621) |
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4,111 |
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CASH
AT BEGINNING OF PERIOD
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17,732 |
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- |
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CASH
AT END OF PERIOD
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$ |
4,111 |
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$ |
4,111 |
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SUPPLIMENTAL
DISCLOSURES OF
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CASH
FLOW INFORMATION
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CASH
PAID FOR:
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Interest
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$ |
- |
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$ |
- |
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Income
Taxes
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$ |
- |
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$ |
- |
The
accompanying notes are an integral part of these financial
statements.
JUMPKICKS,
INC.
(A
Development Stage Company)
July 31,
2008 and October 31, 2007
NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The
accompanying financial statements have been prepared by the Company without
audit. In the opinion of management, all adjustments (which include
only normal recurring adjustments) necessary to present fairly the financial
position, results of operations, and cash flows at July 31, 2008, and for all
periods presented herein, have been made.
Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted in the
United States of America have been condensed or omitted. It is
suggested that these condensed financial statements be read in conjunction with
the financial statements and notes thereto included in the Company’s October 31,
2007 audited financial statements. The results of operations for the
periods ended July 31, 2008 are not necessarily indicative of the operating
results for the full years.
NOTE 2 - GOING CONCERN
The
Company’s financial statements are prepared using generally accepted accounting
principles in the United States of America applicable to a going concern which
contemplates the realization of assets and liquidation of liabilities in the
normal course of business. The Company has not yet established an ongoing source
of revenues sufficient to cover its operating costs and 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.
In order
to continue as a going concern, the Company will need, among other things,
additional capital resources. Management’s plan is to obtain such resources for
the Company by obtaining capital from management and significant shareholders
sufficient to meet its minimal operating expenses and seeking equity and/or debt
financing. However management cannot provide any assurances that the Company
will be successful in accomplishing any of its plans.
The
ability of the Company to continue as a going concern is dependent upon its
ability to successfully accomplish the plans described in the preceding
paragraph and eventually secure other sources of financing and attain profitable
operations. The accompanying financial statements do not include any adjustments
that might be necessary if the Company is unable to continue as a going
concern.
Forward-Looking
Statements
Certain
statements, other than purely historical information, including estimates,
projections, statements relating to our business plans, objectives, and expected
operating results, and the assumptions upon which those statements are based,
are “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of
1934. These forward-looking statements generally are identified
by the words “believes,” “project,” “expects,” “anticipates,” “estimates,”
“intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will
continue,” “will likely result,” and similar expressions. We intend
such forward-looking statements to be covered by the safe-harbor provisions for
forward-looking statements contained in the Private Securities Litigation Reform
Act of 1995, and are including this statement for purposes of complying with
those safe-harbor provisions. Forward-looking statements are based on
current expectations and assumptions that are subject to risks and uncertainties
which may cause actual results to differ materially from the forward-looking
statements. Our ability to predict results or the actual effect of future plans
or strategies is inherently uncertain. Factors which could have a
material adverse affect on our operations and future prospects on a consolidated
basis include, but are not limited to: changes in economic conditions,
legislative/regulatory changes, availability of capital, interest rates,
competition, and generally accepted accounting principles. These risks and
uncertainties should also be considered in evaluating forward-looking statements
and undue reliance should not be placed on such statements. We
undertake no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or
otherwise. Further information concerning our business, including
additional factors that could materially affect our financial results, is
included herein and in our other filings with the SEC.
Company
Overview
We were
incorporated as Jumpkicks, Inc. (“Jumpkicks”) in the State of Delaware on August
3, 2007. We are engaged in the business of online retailing. Specifically, we
have purchased and are developing a martial arts website (the “Site”). Through
the Site, we provide content of interest to martial artists and sell products,
such as uniforms, t-shirts, protective equipment, mats, and other equipment and
accessories of interest to martial arts practitioners and
instructors.
We draw
martial arts students and practitioners to our site by positioning ourselves as
a source of martial arts knowledge. We anticipate that a certain percentage of
visitors to our Site will become retail customers, purchasing the equipment we
display in our online catalog. We currently offer discounted retail pricing to
individual martial arts practitioners and students. In the future, we intend to
provide equipment to instructors, studio owners, and others who are in the
business of retailing martial arts equipment.
Our
offices are located at 1018 Klamath River Avenue, Henderson, Nevada 89002, and
our telephone number is (888) 283-1426. Our Internet Site can be found at
www.Jumpkicks.net. Information contained on our Web Site is not part of this
periodic report.
Richard
Douglas is our President, Secretary, Chief Executive Officer, Chief Financial
Officer, and sole director.
URL
During
May of 2008, an unknown third party changed the registration of our domain name,
www.jumpkicks.com, so that our Site became inaccessible. We have investigated
this change in registration, and we contracted with a third party to negotiate
the return of our domain name. However, we have been unable to re-acquire the
domain name www.jumpkicks.com.
We have
purchased additional domain names, www.jumpkicks.net, www.jumpkicks.org,
www.jumpkicks.us, and www.jumpkicks.info. We have uploaded our Site to these
domain names, so that we will remain operational while we work to regain control
of our original domain name.
Unfortunately,
the domain name www.jumpkicks.com lent significant value to our company. The
long history of the Site drew regular repeat traffic. We are now attempting to
draw traffic to the new domain names, but we have thus far been unable to do so
successfully. If we are not able to generate significant traffic, we will not be
able to generate significant revenue to support our operations.
Site
Development
We are
currently seeking to contract with a third party programmer to further develop
our Site. While the site is currently operational and publicly available, we
intend to include at least two new sections in the current redevelopment of the
Site. The first is a Tournaments section. This will include a schedule of
martial arts tournaments around the country. We hope that martial artists will
come to our Site to find information on local tournaments. After a tournament
has occurred, we will include photos from the tournament, so that participants
may log on to our Site to view and download photos of themselves and other
competitors. We feel that this strategy will draw a large number of viewers to
our Web Site.
The final
section we intend to include in the redeveloped Web Site is our Online Catalog.
We have already added a section to our Site containing a small list of products,
which we have been offering for sale to our Site visitors. However, we intend to
overwrite this temporary page with a permanent Online Catalog that will be
developed by our contracted Site developer. We intend to offer a variety of
martial arts supplies for sale through our Site, uniforms, t-shirts, protective
equipment, mats, and other equipment and accessories of interest to martial arts
practitioners and instructors. Our only current source and our only planned
source of revenue is the retail sales generated through our Online Catalog. The
other sections of the Site are intended to draw traffic to the Site. We
anticipate that a certain percentage of visitors to our Site will become retail
customers, purchasing the equipment we display in our online catalog. Thus, we
feel our revenue will depend, in part, upon the quality of the remaining four
sections of the Site. We have already created an early design of this section
and posted a limited number of items for sale.
Although
we have contacted several web site designers, we have not yet entered into a
contractual relationship with anyone to redevelop our Site. We anticipate that
the redevelopment of our Site will cost approximately $10,000. Much of this cost
is due to the complexity of designing and programming web sites for retail
sales. As part of the development, we will be required either to purchase
commercially available third party shopping cart software packages such as
Volusion E-commerce Solutions, or work with a company such as Intuit, designer
of QuickBooks. Intuit offers Web design solutions that will incorporate their
industry-standard accounting software into our Web Site.
At this
point in time, we do not have the financial resources to pay a web site designer
to redevelop our Site. If we are able to acquire additional capital through debt
or equity financing, we will then seek to contract with a web site designer.
However, we currently do not have a viable plan to raise the capital necessary
for a Site redesign.
Increase Product
Offerings
We
currently offer fewer than twenty unique products for sale through our Online
Catalog. As our orders increase, we intend to increase our inventory level to
reduce turnaround time for customers and to offer a greater number of products
for sale. By offering a greater selection to the online shopping public, we hope
to increase the volume of our sales and thereby increase our revenue and net
income. Our suppliers offer thousands of products, and we are currently working
with them to determine the most popular items, so we can incorporate them sooner
than others and achieve a high level of efficiency in our business
operations.
Refine Order
Fulfilment
We
currently have contracts with two major martial arts supply companies to
purchase products from them at a discounted wholesale rate – Century Martial
Arts Supply (“Century”) and Asian World of Martial Arts (“AWMA”). We plan to
manage our standing inventory in a manner that allows us to meet most small
orders immediately. This will allow us to be responsive to the majority of our
customers without tying up a significant amount of capital to maintain a larger
inventory level. We anticipate that the majority of our customers will initially
be individual practitioners and private instructors. Larger retail outlets and
studios will most likely have access to the same wholesale prices we pay, and
likely from the same suppliers as well. As we grow, we plan to switch from
purchasing wholesale from martial arts suppliers to purchasing directly from
manufacturers. This will allow us to then provide products directly to studio
owners and retailers at a wholesale price that allows both them and us to
realize a margin on the sale, while continuing our online retail sales with a
larger margin.
Marketing
Our plan
is to initially draw martial arts students and practitioners to our site by
positioning ourselves as a source of martial arts knowledge. While our previous
domain name had been used
as a
resource for martial artists around the world since 1996, we are now starting
over to generate interest in our new domain names. We hope to position the Site
to its position as a vital resource for instructors and students alike by
engaging in the following:
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Our
President plans to update the most popular section of the Web Site
regularly. A new Move of the Week will bring back repeat users each week
to learn a new technique for themselves or their
students;
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Working
with tournament promoters to cross promote our Web Site, providing
t-shirts and other door prizes with our logo and Site URL on them, as well
as promoting their tournaments on our
Site;
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Posting
photos of tournaments on our Web Site, drawing competitors, fans, and
promoters to our Site to view, save, and print the
photos;
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Working
with our Site developer to include meta tags and other design elements in
a fashion that will result in our Web Site being listed at or near the top
of search engine listings for phrases such as martial arts, karate,
self-defense techniques, martial arts supplies, rape prevention, karate
tournaments, etc.
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Plant
and Significant Equipment
We do not
intend to purchase or sell any plants or significant equipment in the next
twelve months.
Employees
We have
no significant employees other than our sole officer and director, Richard
Douglas.
Compliance
with Environmental Laws
We did
not incur any costs in connection with the compliance with any federal, state,
or local environmental laws.
Research
and Development Expenditures
We have
not incurred any research or development expenditures since our
inception.
Results
of Operations for the three and nine months ended July 31, 2008 and from August
3, 2007 (date of inception).
For the
three and nine months ended July 31, 2008, we generated gross revenue from sales
of $0 and $140, respectively. Our Cost of Goods Sold during the three month
period ended July 31, 2008 was $0 and our Operating Expenses equalled $5,473,
consisting of $302 in Depreciation expense, $4,494 in professional fees, and
$677 in General and Administrative Expenses. We also recorded interest income of
$118 during the period. We therefore, recorded a net loss of $5,355 for the
three months ended July 31, 2008. Our Cost of Goods Sold during the nine month
period ended July 31, 2008 was $121 and our Operating Expenses equalled $14,138,
consisting of $907 in Depreciation expense, $11,620 in professional fees, and
$1,611 in General and Administrative
Expenses.
We also recorded interest income of $118 during the period. We therefore,
recorded a net loss of $14,001 for the nine months ended July 31, 2008.
For the
period from August 3, 2007 (Date of Inception) until July 31, 2008, we generated
gross revenue from sales of $211. Our Cost of Goods Sold during this period was
$166 and our Operating Expenses equalled $17,931, consisting of $1,007 in
Depreciation expense, $12,430 in professional fees, and $4,494 in General and
Administrative Expenses. We also recorded interest income of $118 during the
period. We therefore, recorded a net loss of $17,768 for the period
from August 3, 2007 (Date of Inception) until July 31, 2008.
Liquidity
and Capital Resources
As of
July 31, 2008, we had
total current assets of $4,394, consisting entirely of $4,111 in Cash and $283
in inventory. Our total current liabilities as of July 31, 2008 were
$0. Thus, we have working capital of $4,394 as of July 31,
2008.
Operating
activities used $17,044 in cash for the period from August 3, 2007 (Date of
Inception) until July 31, 2008. Our net loss of $17,768 was the primary
component of our negative operating cash flow. Investing Activities used $6,045
in cash during the period from August 3, 2007 (Date of Inception) until July 31,
2008, as a result of an increase in fixed assets and other assets. Financing
Activities generated $27,200 in cash during the period from August 3, 2007 (Date
of Inception) until July 31, 2008, due to proceeds from common stock issued. Our
accounting, legal and administrative expenses for the next twelve months are
anticipated to be approximately $25,000. As of July 31, 2008, we had
$4,111 in cash. We have struggled to generate traffic and revenue thus far.
Therefore, we will need to raise additional funds during the next twelve months
in order to execute on our business plan.
Although
our principal has no legal obligation to infuse additional capital, it is
anticipated that our principal will do so as reasonably necessary by providing
short-term demand loans carrying a market interest rate should it become
necessary. We anticipate that we may have to raise additional capital
to meet our financial requirements over the next twelve months. We believe that
it will be easier to raise the requisite financing once our stock is traded on a
readily accessible exchange or national quotation system.
Off
Balance Sheet Arrangements
As of
July 31, 2008, there were no off balance sheet arrangements.
Going
Concern
Our
financial statements are prepared using generally accepted accounting principles
in the United States of America applicable to a going concern which contemplates
the realization of assets and liquidation of liabilities in the normal course of
business. We have not yet established an ongoing source of revenues sufficient
to cover our operating costs and allow us to continue as a going concern. Our
auditors have indicated that our ability to continue as a going concern is
dependent on our obtaining adequate capital to fund operating losses until we
become profitable. If we are unable to obtain adequate capital, we could be
forced to cease operations.
In order
to continue as a going concern, we will need, among other things, additional
capital resources. Management’s plan is to obtain such resources for the Company
by obtaining capital from management and significant shareholders sufficient to
meet our minimal operating expenses and seeking equity and/or debt financing.
However management cannot provide any assurances that will be successful in
accomplishing any of our plans.
Our
ability to continue as a going concern is dependent upon our ability to
successfully accomplish the plans described in the preceding paragraph and
eventually secure other sources of financing and attain profitable operations.
The accompanying financial statements do not include any adjustments that might
be necessary if we are unable to continue as a going concern.
A smaller
reporting company is not required to provide the information required by this
Item.
We
carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) as of July 31, 2008. This evaluation was
carried out under the supervision and with the participation of our Chief
Executive Officer and our Chief Financial Officer, Mr. Richard
Douglas. Based upon that evaluation, our Chief Executive Officer and
Chief Financial Officer concluded that, as of July 31, 2008, our disclosure
controls and procedures are effective. There have been no changes in
our internal controls over financial reporting during the quarter ended July 31,
2008.
Disclosure
controls and procedures are controls and other procedures that are designed to
ensure that information required to be disclosed in our reports filed or
submitted under the Exchange Act are recorded, processed, summarized and
reported, within the time periods specified in the SEC's rules and forms.
Disclosure controls and procedures include, without limitation, controls and
procedures designed to ensure that information required to be disclosed in our
reports filed under the Exchange Act is accumulated and communicated to
management, including our Chief Executive Officer and Chief Financial Officer,
to allow timely decisions regarding required disclosure.
Limitations on the
Effectiveness of Internal Controls
Our
management does not expect that our disclosure controls and procedures or our
internal control over financial reporting will necessarily prevent all fraud and
material error. Our disclosure controls and procedures are designed to provide
reasonable assurance of achieving our objectives and our Chief Executive Officer
and Chief Financial Officer concluded that our disclosure controls and
procedures are effective at that reasonable assurance level. Further,
the design of a control system must reflect the fact that there are resource
constraints, and the benefits of controls must be considered relative to their
costs. Because of the inherent limitations in all control systems, no evaluation
of controls can provide absolute assurance that all control issues and instances
of fraud, if any, within the Company have been detected. These inherent
limitations include the realities that judgments in decision-making can be
faulty, and that breakdowns can occur because of simple error or mistake.
Additionally, controls can be circumvented by the individual acts of some
persons, by collusion of two or more people, or by management override of the
internal control. The design of any system of controls also is based in part
upon certain assumptions about the likelihood of future events, and there can be
no assurance that any design will succeed in achieving its stated goals under
all potential future conditions. Over time, control may become inadequate
because of changes in conditions, or the degree of compliance with the policies
or procedures may deteriorate.
PART
II – OTHER INFORMATION
We are
not a party to any pending legal proceeding. We are not aware of any pending
legal proceeding to which any of our officers, directors, or any beneficial
holders of 5% or more of our voting securities are adverse to us or have a
material interest adverse to us.
A smaller
reporting company is not required to provide the information required by this
Item.
None
None
No
matters have been submitted to our security holders for a vote, through the
solicitation of proxies or otherwise, during the quarterly period ended July 31,
2008.
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Exhibit
Number
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Description
of Exhibit
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SIGNATURES
In
accordance with the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
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Jumpkicks,
Inc.
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Date:
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September
15, 2008
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By: /s/Richard
Douglas
Richard
Douglas
Title: Chief
Executive Officer and
Director
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