Quarterly Report (10-q)
August 14 2017 - 4:54PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C.
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
June 30, 2017
¨
Transition Report Under Section 13 or 15(d) of the Securities Exchange Act
Of 1934
For the transition
period from __________ to __________
Commission File
Number: 000-52828
DIGITAL
DEVELOPMENT PARTNERS, INC.
(Exact name of registrant
as specified in its charter)
NEVADA
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98-0521119
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(State or
other jurisdiction of
incorporation
or organization)
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(I.R.S. Employer Identification
No.)
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17800 Castleton
St., Suite 300
City
of Industry, CA 91748
(Address of principal executive offices, including Zip Code)
(626) 581-3335
(Issuer’s
telephone number, including area code)
(Former
name or former address if changed since last report)
Check
whether the issuer (1) has filed all reports required to be filed by section 13 or 15(d) of the Exchange Act during the past 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. Yes
x
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). Yes
x
No
¨
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth
company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting
company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer
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¨
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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x
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Emerging growth company
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¨
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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 equity, as of the latest practicable date: 85,970,665 shares
of common stock as of August 11, 2017.
Digital Development Partners, Inc.
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Balance Sheets
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(Unaudited)
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June 30,
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December 31,
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2017
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2016
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ASSETS
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Current Assets
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Cash
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$
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4,222
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$
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14,513
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Total current assets
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4,222
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14,513
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Total Assets
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$
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4,222
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$
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14,513
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LIABILITIES AND STOCKHOLDERS' DEFICIT
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Current Liabilities
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Accounts payable and accrued liabilities
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$
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165,937
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$
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152,217
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Related Party Loan Payable
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677,000
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650,000
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Total current liabilities
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842,937
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802,217
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Total Liabilities
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842,937
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802,217
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Stockholders' Deficit
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Common Stock, $0.001 par value; authorized 225,000,000 shares; issued and
outstanding 85,970,665 shares as at June 30, 2017 and December 31, 2016
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85,971
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85,971
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Additional Paid-In Capital
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7,488,946
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7,488,946
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Accumulated Deficit
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(8,413,632
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)
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(8,362,621
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)
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Total Stockholders' Deficit
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(838,715
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)
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(787,704
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)
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Total Liabilities and Stockholders' Deficit
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$
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4,222
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$
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14,513
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The accompanying
notes are an integral part of these unaudited financial statements.
DIGITAL DEVELOPMENT
PARTNERS, INC.
Statements of Operations
(Unaudited)
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For
the
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For
the
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Three
Months Ended
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Six
Months Ended
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June
30,
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June
30,
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2017
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2016
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2017
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2016
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Operating Expenses
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General
and administrative expenses
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$
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15,255
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$
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16,448
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$
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34,432
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$
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38,114
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Loss
from Operations
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(15,255
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)
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(16,448
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)
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(34,432
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)
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(38,114
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)
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Other expense
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Interest
expense
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(8,398
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(7,521
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(16,579
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)
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(
14,713
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)
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Total other expense
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(8,398
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)
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(7,521
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(16,579
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)
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(14,713
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Net
Loss
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$
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(23,653
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$
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(23,969
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$
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(51,011
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$
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(52,827
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Net Loss Per Common Share:
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Basic
and Diluted
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$
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(0.00
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)
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$
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(0.00
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$
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(0.00
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)
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$
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(0.00
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)
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Weighted Average Common Shares
Outstanding,
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Basic
and Diluted:
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85,970,665
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85,970,665
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85,970,665
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85,970,665
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The accompanying
notes are an integral part of these unaudited financial statements.
DIGITAL
DEVELOPMENT PARTNERS, INC.
Statement
of Cash Flows
(Unaudited)
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For the
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Six Months Ended
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June 30,
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2017
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2016
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Cash flows from operating activities:
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Net loss
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$
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(51,011
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$
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(52,827
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Adjustments to reconcile net loss to net cash used in operating activities:
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Change in operating assets and liabilities:
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Accounts payable and accrued liabilities
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13,720
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9,651
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Net cash used in by operating activities
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(37,291
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(43,176
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Cash flows from financing activities:
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Proceeds from related party loans
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27,000
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50,000
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Net cash provided by financing activities
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27,000
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50,000
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Net increase (decrease) in cash
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(10,291
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6,824
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Cash, beginning of the period
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14,513
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12,455
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Cash, end of the period
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$
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4,222
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$
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19,279
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Supplemental cash flow disclosure:
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Interest paid
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$
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-
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$
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-
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Taxes paid
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$
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-
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$
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-
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The accompanying
notes are an integral part of these unaudited financial statements.
DIGITAL DEVELOPMENT PARTNERS INC.
NOTES TO FINANCIAL
STATEMENTS
(UNAUDITED)
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1.
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Basis
of Presentation and Nature of Operations
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The accompanying unaudited interim financial
statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for
interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required
by GAAP for complete annual financial statement presentation.
These unaudited interim financial statements,
as of June 30, 2017 and for the six months ended June 30, 2017 and 2016, reflect all adjustments consisting of normal recurring
adjustments, which, in the opinion of management, are necessary to fairly present the Company’s financial position and the
results of its operations for the periods presented, in accordance with the accounting principles generally accepted in the United
States of America. Operating results for the six months ended June 30, 2017, are not necessarily indicative of the results to
be expected for other interim periods or for the full year ending December 31, 2017. These unaudited interim financial statements
should be read in conjunction with the financial statements and accompanying notes thereto included in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities Exchange Commission.
The Company’s unaudited interim 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 Company also has a working capital deficit as of June 30, 2017. These factors raise substantial doubt about the Company’s
ability to continue as a going concern.
The Company’s capital requirements
will depend on many factors, including the success of the Company’s researching for new markets. The Company plans to continue
financing its operations with cash received from financing activities, more specifically from related party loans.
While the Company strongly believes that
its capital resources will be sufficient in the near term, there is no assurance that the Company’s future activities will
generate sufficient revenues to sustain its operations without additional capital or if additional capital is needed, that such
funds, if available, will be obtainable on terms satisfactory to the Company. The accompanying financial statements do not include
any adjustments that might result from the outcome of this uncertainty.
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3.
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Related
Party Transactions
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June 30,
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December 31,
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2017
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2016
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Loan payable to related party – EFT Holdings, Inc.
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$
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677,000
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$
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650,000
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As of June 30, 2017 the Company owed EFT Holdings Inc. $677,000. Advances of $27,000 were received from
EFT Holdings during the six months ended June 30, 2017. With the exemption of the recent $10,000 advance, all amounts due EFT Holdings
bear interest at 5% per year, are unsecured and are due on demand. The $27,000 loaned during the six months ended June 30, 2017
bears interest at 5% per year, is due in twelve months, and is secured by all of the Company’s future income and receivables.
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Item 2.
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Management's Discussion
and Analysis of Financial Condition and Results of Operation
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On February 18,
2010 the Company’s directors approved an agreement between the Company and EFT Holdings, Inc., (“EFT”), whereby
EFT agreed to assign its worldwide distribution and servicing rights to a product known as the “EFT-Phone” in exchange
for 79,265,000 shares of the Company’s common stock.
EFT
markets its products through a direct sales organization. Once a customer of EFT’s makes a minimum purchase of
$600 (plus $60 for shipping and handling fees), the customer becomes an “affiliate”.
The EFT-Phone is
a cell phone which uses the Android Operating System. The phone is manufactured by an unrelated third party. The EFT-Phone has
an application that allows EFT’s affiliate base to access all of their back office sites including their Funds Management
Account where the affiliate is able to deposit, withdraw and transfer money to another EFT account or to another EFT Affiliate
at no cost for the transfer. The EFT-Phone has educational applications and PowerPoint presentation capability for training new
affiliates anywhere in the world.
The worldwide distribution
and servicing rights to the EFT-Phone include the right to sell the EFT-Phone to EFT’s affiliates and others. Servicing
includes the collection of service fees for all EFT-Phones worldwide, including monthly fees, usage fees, as well as call forwarding,
call waiting, text messaging and video fees. The Company also acquired the rights to distribute all EFT-Phone accessories.
The Company did
not receive any orders for the EFT phone during the year ended December 31, 2016 or the six months ended June 30, 2017. The Company
has been advised by EFT that due to a significant drop in demand for the EFT phone, EFT has not placed any new orders with the
Company. It is the Company’s understanding that EFT has inventory previously purchased from the Company and until sales
increase, EFT will not be placing any new orders from the Company. The Company is very concerned regarding this news and is investigating
other sources of revenue to mitigate its lack of revenue.
Other than the
foregoing, the Company does not know of any trends, events or uncertainties that will have, or are reasonably expected to have,
a material impact on sales, revenues, expenses or results of operations.
Liquidity and
Capital Resources
The Company does
not have any firm commitments from any person to provide the Company with any additional capital. While the Company strongly believes
that its capital resources will be sufficient in the near term, there is no assurance that the Company’s activities will
generate sufficient revenues to sustain its operations without additional capital or if additional capital is needed, that such
funds, if available, will be obtainable on terms satisfactory to the Company.
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Item 4.
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Controls and Procedures.
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(a) The
Company maintains a system of controls and procedures designed to ensure that information required to be disclosed in reports
filed or submitted under the Securities Exchange Act of 1934, as amended (“1934 Act”), is recorded, processed, summarized
and reported, within time periods specified in the SEC's rules and forms and to ensure that information required to be disclosed
by the Company in the reports that it files or submits under the 1934 Act, is accumulated and communicated to the Company’s
management, including its Principal Executive and Financial Officer, as appropriate to allow timely decisions regarding required
disclosure. As of June 30, 2017, the Company’s Principal Executive and Financial Officer evaluated the effectiveness of
the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, the Principal Executive
and Financial Officer concluded that the Company’s disclosure controls and procedures were not effective.
(b)
Changes
in Internal Control
. There were no changes in the Company’s internal control over financial reporting during the quarter
ended June 30, 2017, that materially affected, or are reasonably likely to materially affect, its internal control over financial
reporting.
PART II
Exhibits
31.1
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Certification pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002.
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31.2
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Certification pursuant to Section
302 of the Sarbanes-Oxley Act of 2002.
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32
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Certification pursuant to Section
906 of the Sarbanes-Oxley Act.
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101.INS
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XBRL Instance Document
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101.SCH
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XBRL Taxonomy Extension Schema
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101.CAL
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XBRL Taxonomy Extension Calculation
Linkbase
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101.DEF
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XBRL Taxonomy Extension Definition
Linkbase
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101.LAB
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XBRL Taxonomy Extension Label
Linkbase
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101.PRE
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XBRL Taxonomy Extension Presentation
Linkbase
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SIGNATURES
Pursuant
to the requirements of the Securities 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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DIGITAL
DEVELOPMENT PARTNERS, INC.
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August 14, 2017
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By:
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/s/ Jack Jie Qin
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Jack Jie Qin, Principal Executive Officer
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By:
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/s/
William
E. Sluss
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William E. Sluss, Principal Financial and
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Accounting Officer
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