Quarterly Report (10-q)

Date : 02/19/2019 @ 6:30PM
Source : Edgar (US Regulatory)
Stock : Interlink Plus (PC) (ITRK)
Quote : 0.0035  0.0 (0.00%) @ 9:09PM

Quarterly Report (10-q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549


FORM 10-Q


[X]

Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

 

For the quarterly period ended December 31, 2018

 

 

[  ]

Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934

 

 

 

For the transition period from to __________

 

 

 

Commission File Number: 000-55591


Interlink Plus, Inc.

(Exact name of registrant as specified in its charter)


Nevada

47-3975872

(State or other jurisdiction of

incorporation or organization)

(IRS Employer Identification No.)


4952 S Rainbow Blvd, Suite 326

Las Vegas, NV 89118

(Address of principal executive offices)


702-824-7047

(Registrant’s telephone number)


Indicate by check mark whether the registrant (1) has 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 registrant 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 has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [X] Yes [ ] No


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.


[ ]  Large accelerated filer

[ ]  Accelerated filer

[ ]  Non-accelerated filer

[X]  Smaller reporting company

 

[X]  Emerging growth company


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[ ] Yes [X] No


State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 67,373,008 common shares as of February 18, 2019





[ITRK10Q2.GIF]



TABLE OF CONTENTS

 

Page

 

 

PART I - FINANCIAL INFORMATION

Item 1: Financial Statements

3

Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations

4

Item 3: Quantitative and Qualitative Disclosures About Market Risk

7

Item 4: Controls and Procedures

7

 

 

PART II - OTHER INFORMATION

Item 1: Legal Proceedings

9

Item 1A: Risk Factors

9

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds

9

Item 3: Defaults Upon Senior Securities

9

Item 4: Mine Safety Disclosure

9

Item 5: Other Information

9

Item 6: Exhibits

9

















2




PART I - FINANCIAL INFORMATION


Item 1. Financial Statements


Our financial statements included in this Form 10-Q are as follows:


F-1

Balance Sheets as of December 31, 2018 (unaudited) and June 30, 2018;

F-2

Statement of Operations for the three and six months ended December 31, 2018 and 2017 (unaudited);

F-3

Statement of Stockholders’ Equity for the period ended December 31, 2018;

F-4

Statement of Cash Flows for the six months ended December 31, 2018 and 2017 (unaudited); and

F-5

Notes to Financial Statements.


These 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 December 31, 2018 are not necessarily indicative of the results that can be expected for the full year.

























3




INTERLINK PLUS, INC.

BALANCE SHEETS

(unaudited)


 

 

December 31,

 

June 30,

 

 

2018

 

2018

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

  Cash

 

$

15,549

 

$

11,494

  Accounts receivable

 

 

3,867

 

 

3,118

  Prepaid expenses

 

 

750

 

 

7,452

  Prepaid expenses - related party

 

 

-

 

 

3,500

    Total current assets

 

 

20,166

 

 

25,564

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

  Fixed assets, net

 

 

686

 

 

882

  Website, net

 

 

701

 

 

1,201

    Total other assets

 

 

1,387

 

 

2,083

 

 

 

 

 

 

 

Total assets

 

$

21,553

 

$

27,647

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

  Accounts payable

 

$

7,847

 

$

18,186

  Accounts payable - related party

 

 

31,056

 

 

14,729

  Customer deposits

 

 

-

 

 

3,320

  Notes payable

 

 

150,000

 

 

150,000

  Notes payable - related party

 

 

-

 

 

-

  Accrued interest payable

 

 

13,565

 

 

4,953

  Accrued interest payable - related party

 

 

-

 

 

-

  Convertible debt, net

 

 

19,000

 

 

19,000

  Convertible debt - related party, net

 

 

-

 

 

-

    Total current liabilities

 

 

221,468

 

 

210,188

 

 

 

 

 

 

 

       Total liabilities

 

 

221,468

 

 

210,188

 

 

 

 

 

 

 

Stockholders' equity (deficit):

 

 

 

 

 

 

  Series A Convertible Preferred stock, $0.0001 par value, 25,000,000 shares

    authorized, 2,700,000 and 2,700,000 shares issued and outstanding

    as of December 31, 2018 and June 30, 2018, respectively

 

 

270

 

 

270

  Common stock, $0.0001 par value, 475,000,000 shares

    authorized, 67,373,008 and 67,373,008 shares issued and outstanding

    as of December 31, 2018 and June 30, 2018, respectively

 

 

6,737

 

 

6,737

  Additional paid-in capital

 

 

70,179

 

 

70,179

  Retained deficit

 

 

(277,101)

 

 

(259,727)

    Total stockholders' equity (deficit)

 

 

(199,915)

 

 

(182,541)

 

 

 

 

 

 

 

Total liabilities and stockholders' equity (deficit)

 

$

21,553

 

$

27,647


See accompanying notes to financial statements.



F- 1




INTERLINK PLUS, INC.

STATEMENTS OF OPERATIONS

(unaudited)


 

 

For the

 

For the

 

For the

 

For the

 

 

three months

 

three months

 

six months

 

six months

 

 

ended

 

ended

 

ended

 

ended

 

 

December 31,

 

December 31,

 

December 31,

 

December 31,

 

 

2018

 

2017

 

2018

 

2017

 

 

 

 

 

 

 

 

 

Revenue

 

$

30,106

 

$

34,718

 

$

40,682

 

$

51,812

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

  General and administrative

 

 

1,476

 

 

5,654

 

 

3,925

 

 

11,862

  Depreciation and amortization

 

 

265

 

 

389

 

 

696

 

 

681

  Professional fees

 

 

9,012

 

 

26,463

 

 

26,823

 

 

39,046

  Professional fees - related party

 

 

9,000

 

 

9,000

 

 

18,000

 

 

18,000

 

 

 

 

 

 

 

 

 

 

 

 

 

    Total costs and expenses

 

 

19,753

 

 

41,506

 

 

49,444

 

 

69,589

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

10,353

 

 

(6,788)

 

 

(8,762)

 

 

(17,777)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

  Interest expense

 

 

(4,306)

 

 

(2,632)

 

 

(8,612)

 

 

(3,848)

  Interest expense - related party

 

 

-

 

 

(1,995)

 

 

-

 

 

(3,536)

  Loss of settlement of debt

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

    Total other expenses

 

 

(4,306)

 

 

(4,627)

 

 

(8,612)

 

 

(7,384)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

6,047

 

$

(11,415)

 

$

(17,374)

 

$

(25,161)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share - basic

 

$

0.00

 

$

(0.00)

 

$

(0.00)

 

$

(0.00)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share - diluted

 

$

0.00

 

$

(0.00)

 

$

(0.00)

 

$

(0.00)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares

  outstanding - basic

 

 

67,373,008

 

 

67,373,008

 

 

67,373,008

 

 

67,373,008

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares

  outstanding - diluted

 

 

343,487,483

 

 

67,373,008

 

 

67,373,008

 

 

67,373,008









See accompanying notes to financial statements.



F- 2




INTERLINK PLUS, INC.

STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)

(unaudited)


 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

Additional

 

 

 

Stockholders'

 

Preferred Shares

 

Common Shares

 

Paid-In

 

Retained

 

Equity

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Deficit

 

(Deficit)

Balance, June 30, 2018

2,700,000

 

$

270

 

67,373,008

 

$

6,737

 

$

70,179

 

$

(259,727)

 

$

(182,541)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

-

 

 

-

 

-

 

 

-

 

 

-

 

 

(17,374)

 

 

(17,374)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2018

2,700,000

 

$

270

 

67,373,008

 

$

6,737

 

$

70,179

 

$

(277,101)

 

$

(199,915)


























See accompanying notes to financial statements.



F- 3




INTERLINK PLUS, INC.

STATEMENTS OF CASH FLOWS

(unaudited)


 

 

For the

 

For the

 

 

six months

 

six months

 

 

ended

 

ended

 

 

December 31,

 

December 31,

 

 

2018

 

2017

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

  Net loss

 

$

(17,374)

 

$

(25,161)

  Adjustments to reconcile to net loss to net cash used in

    operating activities:

 

 

 

 

 

 

      Depreciation and amortization

 

 

697

 

 

681

      Amortization of debt discount

 

 

-

 

 

4,441

  Changes in operating assets and liabilities:

 

 

 

 

 

 

      (Increase) decrease in accounts receivable

 

 

(749)

 

 

7,658

      (Increase) decrease in prepaid expenses

 

 

6,702

 

 

(123,164)

      (Increase) decrease in prepaid expenses - related party

 

 

3,500

 

 

(6,817)

      Increase (decrease) in accounts payable

 

 

(10,340)

 

 

(11,688)

      Increase (decrease) in accounts payable - related party

 

 

16,327

 

 

-

      Increase (decrease) in accrued interest payable

 

 

8,612

 

 

3,014

      Increase in accrued interest payable - related party

 

 

-

 

 

(72)

      Increase (decrease) in customer deposits

 

 

(3,320)

 

 

150,334

    Net cash used in operating activities

 

 

4,055

 

 

(774)

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

  Purchase fixed assets

 

 

-

 

 

(1,176)

    Net cash used in operating activities

 

 

-

 

 

(1,176)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

  Proceeds from notes payable

 

 

-

 

 

15,000

  Donated capital

 

 

-

 

 

367

    Net cash provided by financing activities

 

 

-

 

 

15,367

 

 

 

 

 

 

 

NET CHANGE IN CASH

 

 

4,055

 

 

13,417

 

 

 

 

 

 

 

CASH AT BEGINNING OF PERIOD

 

 

11,494

 

 

12,201

CASH AT END OF PERIOD

 

$

15,549

 

$

25,618

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL INFORMATION:

 

 

 

 

 

 

  Interest paid

 

$

-

 

$

-

  Income taxes paid

 

$

-

 

$

-

 

 

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

 

 

 

  Amortization of debt discount

 

$

-

 

$

4,441




See accompanying notes to financial statements.



F- 4




INTERLINK PLUS, INC.

NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Basis of presentation

The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.


These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended June 30, 2018 and notes thereto included in the Company’s annual report. The Company follows the same accounting policies in the preparation of interim reports.


Results of operations for the interim period are not indicative of annual results.


Organization

The Company was incorporated on May 11, 2015 (Date of Inception) under the laws of the State of Nevada, as Interlink Plus, Inc.


Nature of operations

The Company provides services for oversea travel agents on hotel price quotation and negotiation, contract reviewing, detailed guests’ arrangements, hotel check-in assistance, as well as tradeshow services to domestic and international businesses.  Additionally, the Company offers marketing materials and other products for the tradeshows.


Year end

The Company’s year-end is June 30.


Cash and cash equivalents

For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value.


Accounts receivable

The allowance for uncollectible accounts receivables is determined principally on the basis of past collection experience as well as consideration of current economic conditions and changes in our customer collection trends.  Since the inception of the Company through today, the Company has had no material bad debt write offs and believes its current policy is reasonable.


Fixed assets

The Company records all property and equipment at cost less accumulated depreciation.  Improvements are capitalized while repairs and maintenance costs are expensed as incurred.  Depreciation is calculated using the straight-line method over the estimated useful life of the assets or the lease term, whichever is shorter.  Leasehold improvements include the cost of the Company’s internal development and construction department.  Depreciation periods are as follows:


Computer equipment 3 years




F- 5




INTERLINK PLUS, INC.

NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


Website

The Company capitalizes the costs associated with the development of the Company’s website pursuant to ASC Topic 350.  Other costs related to the maintenance of the website are expensed as incurred.  Amortization is provided over the estimated useful lives of 3 years using the straight-line method for financial statement purposes.   The Company plans to commence amortization upon completion and release of the Company’s fully operational website.


Revenue recognition

We recognize revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the product or service has been provided to the customer; (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of our fees is probable.


The Company will record revenue when it is realizable and earned and the services are completed as part of the service contract.


Advertising costs

Advertising costs are anticipated to be expensed as incurred; however there were no advertising costs included in general and administrative expenses for the six months ended December 31, 2018.


Fair value of financial instruments

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2018. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, prepaid expenses and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.


Level 1 : The preferred inputs to valuation efforts are “quoted prices in active markets for identical assets or liabilities,” with the caveat that the reporting entity must have access to that market.  Information at this level is based on direct observations of transactions involving the same assets and liabilities, not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade in active markets.


Level 2 : FASB acknowledged that active markets for identical assets and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. To deal with this shortage of direct data, the board provided a second level of inputs that can be applied in three situations.


Level 3 : If inputs from levels 1 and 2 are not available, FASB acknowledges that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as “unobservable,” and limits their use by saying they “shall be used to measure fair value to the extent that observable inputs are not available.” This category allows “for situations in which there is little, if any, market activity for the asset or liability at the measurement date”. Earlier in the standard, FASB explains that “observable inputs” are gathered from sources other than the reporting company and that they are expected to reflect assumptions made by market participants.






F- 6




INTERLINK PLUS, INC.

NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


Stock-based compensation

The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards.  This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.


The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.


Earnings per share

The Company follows ASC Topic 260 to account for the earnings per share. Basic earning per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earning per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.


Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates.


Recent pronouncements

The Company has evaluated the recent accounting pronouncements through February 2019 and believes that none of them will have a material effect on the company’s financial statements.


NOTE 2 - GOING CONCERN


The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. Since its inception, the Company has been engaged substantially in financing activities and developing its business plan and incurring start up costs and expenses. As a result, the Company had a retained deficit as of December 31, 2018 of ($277,101). In addition, the Company’s activities since inception have been financially sustained through debt and equity financing.


The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock and, ultimately, the achievement of significant operating revenues. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.






F- 7




INTERLINK PLUS, INC.

NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)


NOTE 3 - PREPAID EXPENSES


As of December 31, 2018, the Company had prepaid transfer agent expenses totaling $750.  The prepaid professional fees will be expensed on a straight-line basis over the remaining life of the service period.  During the six months ended December 31, 2018 the Company incurred an additional $750 of prepaid transfer agent fees and amortized transfer agent expenses of $375.


Additionally, the Company had prepaid expense related to deposits at hotels totaling $0.  The prepaid expenses will be reclassified against revenue when our clients complete their stay at the hotel.


NOTE 4 - FIXED ASSETS


The following is a summary of fixed asset costs:


 

 

December 31,

 

 

2018

Fixed asset

 

$

1,176

Less: accumulated amortization

 

 

(490)

Fixed asset, net

 

$

784


Depreciation expense for the six months ended December 31, 2018 was $196.


NOTE 5 - WEBSITE


The following is a summary of website costs:



 

 

December 31,

 

 

2018

Website

 

$

3,500

Less: accumulated amortization

 

 

(2,799)

Website, net

 

$

701


Amortization expense for the six months ended December 31, 2018 was $334.


NOTE 6 - NOTES PAYABLE


On June 15, 2018, the Company executed a promissory note with an entity for $150,000. The unsecured note bears interest at 10% per annum and is due in two business days after demand for payment. As of December 31, 2018, the principal balance is $150,000 and accrued interest is $8,301. The interest expense for the six months ended December 31, 2018 was $7,644.


NOTE 7 - CONVERTIBLE DEBT


On May 22, 2015, the Company executed a convertible promissory note with a related party for $4,000. The unsecured note bears interest at 10% per annum and is due on May 22, 2017. This note is convertible at $0.005 per share and can be converted on or before the maturity date of May 22, 2017. During July 2017, the partied agreed to extend the maturity date to July 31, 2018. On December 22, 2017, the note was sold to an unrelated third party. On March 14, 2018, the note was sold to another unrelated third party.




F- 8




INTERLINK PLUS, INC.

NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)


NOTE 7 - CONVERTIBLE DEBT (CONTINUED)


On April 25, 2016, the Company executed a convertible promissory note with an entity for $5,000. The unsecured note bears interest at 10% per annum and is due on April 25, 2017. This note is convertible at $0.005 per share and can be converted on or before the maturity date of April 25, 2017. During July 2017, the partied agreed to extend the maturity date to July 31, 2018. On December 22, 2017, the note was sold to an unrelated third party. On March 14, 2018, the note was sold to another unrelated third party.


On July 15, 2016, the Company executed a convertible promissory note with an entity for $5,000. The unsecured note bears interest at 10% per annum and is due on July 15, 2017. This note is convertible at $0.005 per share and can be converted on or before the maturity date of July 15, 2017. During July 2017, the partied agreed to extend the maturity date to July 31, 2018. On December 22, 2017, the note was sold to an unrelated third party. On March 14, 2018, the note was sold to another unrelated third party.


On August 18, 2016, the Company executed a convertible promissory note with an entity for $5,000. The unsecured note bears interest at 10% per annum and is due on August 18, 2017. This note is convertible at $0.005 per share and can be converted on or before the maturity date of September 27, 2018. On December 22, 2017, the note was sold to an unrelated third party. On March 14, 2018, the note was sold to another unrelated third party.


As of December 31, 2018, the balance of accrued interest was $5,263. The interest expense for the six months ended December 31, 2018 was $968.


NOTE 8 - STOCKHOLDERS’ EQUITY (DEFICIT)


The Company is authorized to issue 475,000,000 shares of its $0.0001 par value common stock and 25,000,000 shares of its $0.0001 par value preferred stock. The Series A convertible preferred stock have a liquidation preference of $0.10 per share, have super voting rights of 100 votes per share, and each share of Series A may be converted into 100 shares of common stock.


Preferred stock

During the six months ended December 31, 2018, there have been no other issuances of preferred stock.


Common stock

During the six months ended December 31, 2018, there have been no other issuances of common stock.


NOTE 9 - WARRANTS AND OPTIONS


As of December 31, 2018, there were no warrants or options outstanding to acquire any additional shares of common stock.


NOTE 10 - RELATED PARTY TRANSACTIONS


On July 1, 2017, the Company executed a consulting agreement Company owned and controlled with a former officer and director and current shareholder at a rate of $3,000 per month. The Company or entity may terminate with 30 days written notice. During the six months ended December 31, 2018, the Company had professional fees - related party totaling $18,000. As of December 31, 2018, there was prepaid expense - related party of $0 and accounts payable - related party balance was $11,500.


As of December 31, 2018, the Company owed a former officer and director and current shareholder a total of $19,556.





F- 9




Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations


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


Our business is divided into two major segments: travel agency assistance services and convention services.


We have signed services contracts with multiple travel agents to assist with hotel room price quotation and negotiation and communicating with hotels to ensure that accurate reservations are made with Chinese clientele. Through December 31, 2018, we have generated some revenue from our agreement with our clients. We earned $30,106 and $34,718 in revenues for the three months ended December 31, 2018 and 2017, respectively. We are also hopeful that we will engage in other contracts for the services outlined below.


We require additional capital necessary for us to grow our business. Our initial plans include: hiring necessary personnel, marketing our business, completing our website, purchasing equipment and software and further developing the service offering. Our business plan calls for capital of approximately $250,000 in the next twelve months. There is no assurance that we will be successful in these endeavors or that if we accomplish all of these steps we will be able to operate profitably. We intend to fulfill the service needs of our potential customers by utilizing resources and employees in the United States, but, as we grow, we believe we can reduce costs and increase margins by utilizing personnel in foreign countries, such as China, to fulfill the services on behalf of our customers.


Through our services, we believe that clients will be able to gain the advantage of maintaining their growth goals without the need to sacrifice precious resources to address standard business bottlenecks. Our goal is to allow firms to retain their entrepreneurial speed and agility, advantages they would otherwise sacrifice in dealing with logistics rather than the specific focus of the client’s business. We plan to allow clients to grow at a faster pace as they will be less constrained by large capital expenditures for people, training, equipment, or mistakes made from lack of experience in areas which are unrelated to the client’s specific business purpose.


Since our inception, we have been attempting to raise money to implement our business plan, and we have raised some funds lately, mostly through the sale of convertible debt, but have not been able to secure the funds necessary to fully implement our business plan. The lack of funds have prevented us from growing the business as we had hoped.





4



As we have been unable to raise the capital necessary to develop and market our services, we have recently been engaged in a search for other business opportunities which may benefit our shareholders and allow us to raise capital and operate. Recent negotiations with what we believe is a more viable business opportunity leads us to believe that we will be revising our business plan and focus over the next quarter. If this opportunity does not develop, however, we will continue to both seek new opportunities and look for capital to further our existing business plan.


Travel Agency Assistance


We provide services for overseas travel agents on hotel price quotation and negotiation, contract reviewing, detailed guests’ arrangements, hotel check-in assistance and tradeshow assistance. Overseas travel agents often encounter language barriers and time differences on office hours when dealing with U.S. based hotels and U.S. based conventions. We believe that our bilingual language services, flexible office hours, and reasonable fee structure will help our clients to increase accuracy and efficiency levels, and reduce costs.


Currently, we service 8 overseas and domestic travel agencies. These travel agencies work with exhibition service agents or travel groups in China to coordinate the travel plans of tour groups that plan on attending exhibitions in the U.S.  Depending on the event, these tour groups can range from 20 to over 700 people. It is vital for the travel agents and exhibition services agents to provide their clients - Chinese businesses who exhibit in the trade show, a seamless and worry-free trip.


Our role is to help the travel agencies communicate with hotels and convention staff timely and accurately, including finding and negotiating hotel rate, reviewing and updating contracts, submitting and revising guest lists, group check-in (pick up and sorting the room keys for different groups), communicating on bill differences, etc.  We currently have bilinguals that are fluent in English and Chinese. We plan to expand our staff of bilinguals to cater to other languages and countries other than China. Our main focus at the present time is to establish a presence in China and we intend to branch out to other Asian countries from there as resources permit.


In November 2016, we became a certified travel agency. Additionally, we became an affiliate partner with booking.com and the Expedia TAAP program. We hope these recent events will help us increase revenue in the future.


Convention Services


Our second business segment is catering to the individual exhibitors at the exhibitions. Exhibitors/ attendees often have temporary assistance needs at conventions and trade shows. We assist these clients on booth set up, tradeshow promotion material preparing, entourage interpreter and/or exhibitor booth personnel arrangements, including bilingual spokespersons, sales associates, narrators and demonstrators, hostesses/hosts, promoters and models.


We are also able to provide custom and pre-made booths, booth graphic design, and exhibit booth setup services to our clients. For clients looking for complete tradeshow exhibit booths, we provide turnkey solutions for sale. We offer top of the range Tablets, TV screens with stands, tables, and chairs, storage bins among others, to ensure that your tradeshow booth is highly inviting. We are able to work with clients on their required specifications and our staff is capable of delivery and assembly of attractive booth designs.


We have limited clients in this business segment. We plan to utilize our travel agency and exhibition service agent contacts to reach out to these exhibitors and establish direct connections for our exhibition services.  We may also work though these vital contacts as an extension of their services to these clientele.  Furthermore, because we have a U.S. presence, we plan to reach out to the U.S. exhibitions to offer our services to these clientele.


Results of operations for the three and six months ended December 31, 2018 and 2017


We have earned revenues of $30,106 for the three months ended December 31, 2018, as compared with $34,718 for the same period ended 2017. We have earned revenues of $40,682 for the six months ended December 31, 2018, as compared with $51,812 for the same period ended 2017.




5



We expect to continue to achieve steadily increasing revenues within the coming months. However, as we are a start-up, we have limited operating history to rely upon and we cannot guarantee that our business plan will be successful. To date, we only have 8 travel agencies as our main clients that we contracted to assist with hotel room price quotation and negotiation and communicating with hotels to ensure that accurate reservations are made with Chinese clientele. Our management is actively working to secure additional contracts to grow the business. We are also looking at other business opportunities that would better serve our shareholders.


Operating expenses were $19,753 for the three months ended December 31, 2018, as compared with $41,506 for the same period ended 2017. Operating expenses were $49,444 for the six months ended December 31, 2018, as compared with $69,589 for the same period ended 2017. Our operating expenses for the three and six months ended December 31, 2018 and 2017 mainly consisted of professional fees and related party professional fees.


We expect our operating expenses to increase as a result of increased operating activity to implement our business plan and the added expenses associated with reporting with the Securities and Exchange Commission.


We incurred other expense of $4,306 for the three months ended December 31, 2018, compared with other expense of $4,627 for the same period ended December 31, 2017.  We incurred other expense of $8,612 for the six months ended December 31, 2018, compared with other expense of $7,384 for the same period ended December 31, 2017.


Our other expenses for all periods consisted of interest expense and related party interest expense.  We expect that our other expenses will increase in 2019 as a result of our outstanding debt, and any additional debt we take on in our financing efforts.


We recorded a net income of $6,047 for the three months ended December 31, 2018, as compared with a net loss of $11,415 for the same period ended 2017. We recorded a net loss of $17,374 for the six months ended December 31, 2018, as compared with a net loss of $25,161 for the same period ended 2017.


Liquidity and Capital Resources


As of December 31, 2018, we had current assets of $20,166. Our total current liabilities as of December 31, 2018 were $221,468. As a result, we had working capital deficit of $201,302 as of December 31, 2018.


Operating activities provided $4,055 in cash for the six months ended December 31, 2018, as compared with cash used of $774 for the same period ended 2017. Our positive operating cash flow for the six months ended December 31, 2018 was mainly the result if an increase in customer deposits and related party accounts payable, offset mainly by our net loss for the period, and an increase in prepaid expenses. Our negative operating cash flow in 2017 was mainly the result of an increase in prepaid expenses of $123,164 and our net loss of $25,161, offset by increase in customer deposits of $150,334.


Investing activities used $0 in cash for the six months ended December 31, 2018, as compared with $1,176 for the same period ended 2017. Our negative investing cash flow for the six months ended December 31, 2017 was a result of the purchase of fixed assets.


We have no cash used or provided in financing activities for the six months ended December 31, 2018, as compared with $15,367 provided in financing activities for the six months ended December 31, 2017.


We were incorporated on May 11, 2015. Our operations, to date, have been devoted primarily to startup, development activities and obtaining our first contract. Because of our limited operating history, it is difficult to predict our capital needs on a monthly, quarterly or annual basis. We will have no capital available to us if we are unable to raise money from this offering or find alternate forms of financing, which we do not have in place at this time.


There can be no assurance that we will be successful in raising additional funding. If we are not able to secure additional funding, the implementation of our business plan will be impaired. There can be no assurance that such additional financing will be available to us on acceptable terms or at all.




6



Our plan specifies a minimum amount of $250,000 in additional operating capital to operate for the next twelve months. If we are unable to raise $250,000 from this offering, our business will be in jeopardy and we could be formed to suspend our operations or go out of business. As such, there can be no assurance that this offering will be successful. You may lose your entire investment.


Off Balance Sheet Arrangements


As of December 31, 2018, there were no off balance sheet arrangements.


Going Concern


The accompanying financial statements have been prepared assuming that we will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. As noted above, we are a start-up and, accordingly, have generated slight revenues from operations. Since our inception, we have been engaged substantially in financing activities and developing our business plan and incurring startup costs and expenses. As a result, we incurred accumulated net losses from Inception (May 11, 2015) through the period ended December 31, 2018 of ($277,101). In addition, our development activities since inception have been financially sustained through debt and equity financing.


Our ability to continue as a going concern is dependent upon our ability to raise additional capital from the sale of common stock and, ultimately, the achievement of significant operating revenues. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.


Item 3. Quantitative and Qualitative Disclosures About Market Risk


A smaller reporting company is not required to provide the information required by this Item.


Item 4. Controls and Procedures


Disclosure Controls and Procedures


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 December 31, 2018. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2018, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.


A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that, as of December 31, 2018, our disclosure controls and procedures were not effective: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.


Remediation Plan to Address the Material Weaknesses in Internal Control over Financial Reporting


Our company plans to take steps to enhance and improve the design of our internal controls over financial reporting. During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes during our fiscal year ending June 30, 2019: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.



7



We are unable to remedy our controls related to the inadequate segregation of duties and ineffective risk management until we receive financing to hire additional employees.


Changes in Internal Control over Financial Reporting


There were no changes in our internal control over financial reporting during the three months ended December 31, 2018 that have materially affected, or are reasonable likely to materially affect, our internal control over financial reporting.


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.   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.






















8




PART II - OTHER INFORMATION


Item 1. Legal Proceedings


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.


Item 1A. Risk Factors


See risk factors included in our Annual Report on Form 10-K for 2018.


Item 2. Unregistered Sales of Equity Securities and Use of Proceeds


None


Item 3. Defaults upon Senior Securities


None


Item 4. Mine Safety Disclosures


Not applicable.


Item 5. Other Information


None


Item 6. Exhibits


Exhibit

Number

Description of Exhibit

31.1 **

Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2 **

Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1 **

Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101**

The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2018 formatted in Extensible Business Reporting Language (XBRL).

**Provided herewith











9




SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


 

Interlink Plus, Inc.

 

 

Date:

February 19, 2019

 

 

By:

/s/ Duan Fu

Duan Fu

Title:

Chief Executive Officer and Director





























10


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