NOTES TO FINANCIAL STATEMENTS
March 31, 2013 (Unaudited)
(1) Unaudited Financial Statements
The balance sheet as of March 31, 2013, the statements of operations and the statements of cash flows for the three months ended March 31, 2013 and 2012, have been prepared by Fona, Inc. (the Company) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures, normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted as allowed by such rules and regulations, and the Company believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in financial position at March 31, 2013 and for all periods presented, have been made.
It is suggested that these statements be read in conjunction with the December 31, 2012 audited financial statements and the accompanying notes included in the Company's Registration on Form 10-K, filed with the Securities and Exchange Commission.
(2) Basis of Presentation
The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America, which contemplates continuation of the Company as a going concern. However, the Company has negative working capital and stockholders deficits and no active business operations, which raises substantial doubt about its ability to continue as a going concern.
In view of these matters, realization of certain of the assets in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to meet its financial requirements, raise additional capital, and the success of its future operations. However, the Company has sustained losses from operations and has net capital and working capital deficits, which raises substantial doubt about its ability to continue as a going concern.
Management has opted to resume the filing of Securities and Exchange Commission (SEC) reporting documentation and then to seek a business combination. Management believes that this plan provides an opportunity for the Company to continue as a going concern.
(3) Development Stage Company
Based upon the Companys business plan, it is a development stage enterprise since planned principal operations have not yet commenced. Accordingly, the Company presents its financial statements in conformity with the accounting principles generally accepted in the United States of America that apply in establishing operating enterprises. As a development stage enterprise, the Company discloses the deficit accumulated during the development stage and the cumulative statements of operations and cash flows from commencement of development stage to the current balance sheet date. The development stage began August 1, 2008 when it commenced activities to become a reporting company with the Securities and Exchange Commission with the intention of becoming a publicly traded company.
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FONA, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
March 31, 2013 (Unaudited)
(4) Common Stock
Pursuant to the Articles of Incorporation as amended, the Company is authorized to issue 780,000,000 common shares with $.001 par value. As of March 31, 2013, there were 7,894,111 shares of common stock issued and outstanding.
(5) Related Party Transactions
At March 31, 2013 and December 31, 2012, the Company owed $65,292 and $62,817, respectively, to related parties for expenses of the Company. The advances are loans that are uncollateralized, bear no interest and are due on demand. Imputed interest of $1,058 was recorded for the period ended March 31, 2013.
The Company uses the offices of its President for its mailing address and minimal office facility needs for no consideration. No provision for these costs has been provided since it has been determined that they are minimal.
(6) Subsequent Events
The Company has evaluated events subsequent to March 31, 2013 and through the date the financial statements were available to be issued, to assess the need for potential recognition or disclosure in this report. No events were noted that require recognition or disclosure in the financial statements.
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