The accompanying interim financial statements have
been prepared in accordance with the instructions to Form 10-Q. Therefore, they
do not include all information and footnotes necessary for a complete
presentation of financial position, results of operations, cash flows, and
stockholders’ equity in conformity with accounting principles generally
accepted in the United States of America. Except as disclosed herein, there has
been no material change in the information disclosed in the notes to the
financial statements included in the Company’s Annual Report on Form 10-K
for the year ended March 31, 2018. In the opinion of management, all
adjustments considered necessary for a fair presentation of the results of
operations and financial position have been included, and all such adjustments
are of a normal recurring nature. Operating results for the three months ended June
30, 2018 are not necessarily indicative of the results that can be expected for
the year ending March 31, 2019.
The accompanying notes are an integral part of these
unaudited financial statements.
The accompanying notes are an integral part of these
unaudited financial statements.
The accompanying notes are an integral part of these
unaudited financial statements.
NOTE
1 – NATURE OF OPERATIONS
Peptide
Technologies, Inc. (the “Company” or “Peptide”), was
incorporated in the State of Nevada, United States of America, on November 18,
2005.
The
Company’s business is to develop and market skincare products. Its plan
is to build a state-of-the-art online store with a direct marketing and sales funnel
aimed at targeted channels, using internet, social media, and content
marketing. The Company’s marketing approach uses vetted channels that
encompass several steps to gauge performance data from marketing tests against
other campaigns in real-time with the ability to modify content delivery to
targeted consumers immediately. The Company will engage a team with proprietary
algorithmic software to assist in making these marketing decisions. Management
believes this will provide the Company a distinct advantage over other
companies that outsource marketing and advertising efforts to third parties.
The skincare space
is well-suited for direct-to-consumer sales, and there are several channels
that the Company will leverage to introduce its unique branding and creative
advertising assets. Creating brand visibility, along with the back-end support
to process orders, is one of the Company’s key strengths over smaller
competitors in the space. In addition, the Company will create a brand that
allows visibility and awareness to be molded organically, thereby increasing
the brand’s value quickly.
The Company has
identified a cosmetic and skincare manufacturer and has agreed upon product
formulations, the design and sourcing of packaging, and product costs. The Company
does not intend to enter into a long-term master supply agreement with the
manufacturer. Rather, orders will be placed through individual purchase orders
as needed. The Company’s activities are subject to significant risks and
uncertainties, including the need for additional capital to carry out its plan
of operation and competition from existing consumer product companies.
The majority of manufacturing, distribution,
marketing, and sales operations will be outsourced. However, strategic planning
and development will be performed internally by the Company. This includes, but
is not limited to, developing our catalog of products, developing proprietary
skincare formulations, pricing our products, deciding which markets to target,
deciding which influencers to engage in marketing campaigns, developing sales
channels such as our e-commerce sites, determining which marketing initiatives
to pursue, and selecting strategic partners and suppliers to advance our
business plan.
NOTE 2 – BASIS OF PRESENTATION OF INTERIM
FINANCIAL STATEMENTS
The Company prepares its financial statements in
accordance with accounting principles generally accepted in the United States
of America. The accompanying interim unaudited financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information in accordance with the instructions to Form 10-Q
and Article 8 of Regulation S-X. In our opinion, all adjustments (consisting of
normal recurring adjustments) considered necessary for a fair presentation have
been included.
Operating results for the three months ended June 30,
2018 are not necessarily indicative of the results that may be expected for the
year ending March 31, 2019. Notes to the unaudited interim financial statements
that would substantially duplicate the disclosures contained in the audited
financial statements for the year ended March 31, 2018 have been omitted. This
report should be read in conjunction with the audited financial statements and
the footnotes thereto for the fiscal year ended March 31, 2018 included within
the Company’s Annual Report on Form 10-K as filed with the Securities and
Exchange Commission.
NOTE 3 – GOING
CONCERN
These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which contemplate the continuation of the Company as a going concern. The Company has incurred losses from operations and had an accumulated deficit of $1,198,755 as of June 30, 2018. The Company also has excess liabilities over assets of $339,679. These factors raise doubt about the Company’s ability to continue as a going concern.
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Management’s plans are to actively seek capital
to enable the Company to add new products and/or services to ultimately achieve
profitability. However, management cannot provide assurance that they can raise
sufficient capital and whether the Company will ultimately achieve
profitability, become cash flow positive, or raise additional debt and/or
equity capital. If the Company is unable to raise additional capital in the
near future or meet financing requirements, management expects that the Company
will need to curtail operations, seek additional capital on less favorable
terms, and/or pursue other remedial measures.
These financial statements do not include any
adjustments related to the recoverability and classification of assets or the
amounts and classification of liabilities that might be necessary should the
Company become unable to continue as a going concern.
NOTE 4 –SIGNIFICANT ACCOUNTING
POLICIES
Revenue Recognition
Revenue will be recognized on a gross basis upon shipment or upon receipt of products by the customer, depending on the agreed-upon terms, provided that: there are no uncertainties regarding customer acceptance; persuasive evidence of an agreement exists documenting the specific terms of the transaction; the sales price is fixed or determinable; and collectability is reasonably assured. Management will assess the business environment, the customer’s financial condition, historical collection experience, accounts receivable aging, and customer disputes to determine whether collectability is reasonably assured. If collectability is not considered reasonably assured at the time of sale, the Company does not recognize revenue until collection occurs. The Company plans to begin recognizing revenue by the third quarter of this fiscal year.
Website
Expenditures related to the planning and operation of
the Company’s website are expensed as incurred. Expenditures related to the
website application and infrastructure development are capitalized and
depreciated over the website’s estimated useful life of three (3) years.
Amortization for the three months ended June 30, 2018 and 2017 was $1,330 and
$0, respectively.
Recent
Accounting Pronouncements
The Financial Accounting Standards Board issues
Accounting Standards Updates (“ASU”) to amend the authoritative
literature in the Accounting Standards Codification (“ASC”). There
have been a number of ASUs to date that amend the original text of the ASC. The
Company believes those updates issued-to-date either (i) provide supplemental
guidance, (ii) are technical corrections, (iii) are not applicable to the
Company, or (iv) are not expected to have a significant impact on the Company.
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NOTE
5 – RELATED PARTY TRANSACTIONS
The Company’s Chief Financial
Officer (“CFO”) advanced $312 and $33,103 to the Company during the
three months ended June 30, 2018 and 2017, respectively, to pay for operating
expenses and website development costs. The advances are due on demand and
carry no interest. The related party advances totaled $67,425 and $67,113 as of
June 30, 2018 and March 31, 2018, respectively.
NOTE 6 –
COMMITMENTS AND CONTINGENCIES
The Company is not currently involved with and does
not have knowledge of any pending or threatened litigation against the Company
or any of its officers.
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