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HEALTH DIRECTORY INC. - 10-Q - Management's Discussion and Analysis of Financial Condition and Results of Operations.
(Edgar Glimpses Via Acquire Media NewsEdge) The following discussion provides information which management believes is
relevant to an assessment and understanding of our results of operations and
financial condition. The discussion should be read along with our financial
statements and notes thereto contained elsewhere in this Report. The following
discussion and analysis contains forward-looking statements, which involve risks
and uncertainties. Our actual results may differ significantly from the results,
expectations and plans discussed in these forward-looking statements.
Overview
We were incorporated in the State of Nevada on September 29, 2010 as Health
Directory, Inc. and are based in Falls Church, VA. We are a development stage
company and have not yet commenced operations. However, we are proceeding with
our stated business plan of creating and providing a health related online
directory. We have begun taking certain steps in furtherance of our business
plan, including the construction and implementation of our fully functioning
website. As part of our business plan, we seek to potentially link over fifty
advertisers who provide various medical services and gain commission on
everything sold based on the advertisers' products and services.
We are a health related online directory, linking over fifty advertisers who
provide various medical services. This online portal gains commission on
everything sold based on their products and services. A built in tracking system
cohesively tracks all clicks and sales generated by affiliates from our website.
Advertisers are responsible for any logistics from customer service to the
delivery of products. By providing this service to numerous advertising website
sub-domains, we believe we will be able to earn revenues through our one
website. Our health related online directory offers a network of alternative
medical services and products for customers who need natural, non-prescription
products through the internet.
We do not consider ourselves to be a blank check company and we do not have any
plan, arrangement, or understanding to engage in a merger or acquisition with
any other entity. Additionally, we have a specific business plan and have moved
forward with our business operations. Specifically, while in the development
stage, we are proceeding with our business plan by constructing and implementing
an online health related directory. We have taken certain steps in furtherance
of this business plan including establishing the website and programming. Our
website is fully functioning and is capable of accepting orders from customers.
We will earn a commission on each sale made through our website.
We anticipate that depending on market conditions and our plan of operations, we
may incur operating losses in the foreseeable future. Therefore, our auditors
have raised substantial doubt about our ability to continue as a going concern.
Business Strategy and Objectives
Our automated online health directory allows our customers to advertise through
our website, while keeping track of all sales generated through our directory.
In that regard, our online portal gains commission on all sales generated
through the website. A sophisticated tracking system cohesively works with our
website HTML code which tracks all clicks and sales generated by affiliates
linked to our website. Our website also provides a "Live Chat" option, allowing
visitors to pay a medical doctor by the minute for medical advice.
Our objective for the 2012 fiscal year is to become the leading online health
directory website. The Company expects to accomplish this objective by
implementing a well-built online marketing practice.
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--------------------------------------------------------------------------------We believe that the key to our success is based on a few key factors. First, the
website is maintained by HostGator. The website requires low maintenance, and
all customers are responsible for interacting and responding to their own
clients. Our customers are the product and service providers who would like
advertise their products and services on our website. Second, our website is
convenient for visitors because it provides information in one location that is
available 24 hours per day, 7 days per week. We also believe that we will obtain
a strong reputation in the field by our affiliation with companies that are
recognized as having the experience, credibility and dedication that visitors
seek. Finally, by using Pay-Per-Click, Search Engine Optimization and other
forms of online advertising, we expect that our website will maintain a monthly
marketing plan that will result in additional clients and revenues. Management
believes that the Company will be able to generate approximately $100,000 in
gross revenue between now and the fiscal year ending March 31, 2013.
Products and Services
We provide thirty sub-domain links where visitors can view, read, and buy
products and services by other affiliate companies. With these thirty sub-domain
links, Health Directory gains a certain amount of commission based on each
product or service. This is all tracked using a tracking system, which is on our
current domain. Our commissions earned are deposited directly into our bank
account by our customers. Our CEO reconciles the accounts once a week.
Our website is commission based. As such prices are controlled by our affiliate
partners and we generate revenues in the form of commissions from all sales
generated from our website. These sales are maintained and tracked through a
sales tracking system, which is linked through our HTML coding system. Our
commission rate varies based on the product or service sold.
Market Opportunity
We plan to link our website with thirty sub-domain websites, listed under
Products and Services, which we will receive all commission earnings from each
sale. By combining thirty sub-domain directories with Live Medical Chats,
monthly advertisers, and Google Ad sense, we hope that
healthdirectoryresults.com will become the portal to a diverse set of health
products and health information.
Website Marketing Strategy & Revenue Generation
We are a start-up company focused on building stable and long-term marketing
programs. As such, we are focused on a strategic Internet marketing campaign
consisting of Google Ad words. We provide thirty sub-domain links where visitors
can view, read, and buy products and services from other companies who use our
website as a platform to sell their products/services., instead of building and
maintaining their own website. We earn a certain amount of commission based on
each product sale. If a specific product/service is not selling, we can remove
this product from our site at any time.
Our website marketing strategies can be broken into 4 segments:
Google Ad-sense: Ad-sense is an application which is run by Google, by managing
our website text, images, and advertisements; by monetizing our content we
generate revenue by having our visitors click on these links.
Social Media Optimization: Due to the current Internet market focusing on Social
Media website, we will begin participating and creating a social status which
will bring forth more loyal customers, reliability, and image towards the
company.
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--------------------------------------------------------------------------------Search Engine Optimization: Search Engine Optimization otherwise known as SEO,
will make our website's content worthy of higher search engine ranking by being
more relevant and competent than our competitors. After a few months worth of
optimization, healthdirectoryresults.com's. goal is to begin ranking near our
competitors on search engines.
Blogs: Blogs are another current Internet strategy many companies are focusing
on. By blogging updates and affiliate products, Health Directory Inc. will be
engaging to future clients and visitors in an affable manner.
Competition
We are aware of other health directory related websites that provide similar
services as the ones we seek to provide. These websites include:
HealthBegin.com, Healthdirectorymoz.com, DirectoryHealthy.com, and
TheHealthLinks.com. We believe that Health Directory, Inc. will be able to
increase customer interest and improve recognition and acceptance of our
affiliate's products by investing in a strong marketing campaign, increasing our
monthly ad word budget and maintaining strong customer loyalty programs through
our affiliates.
We plan to provide an organized and professional website with working links to
actual products and services with few sub-domains with non-effective spam. We
believe that the avoidance of excessive advertising on our site will result in
greater customer loyalty.
Employees
As of February 14, 2012, we have one (1) employee. Our President and sole
officer and director spends approximately 20 hours per week on Company matters.
Results of Operations For the Quarterly Period Ended December 31, 2011
Revenues and Cost of Revenues. We have not generated any revenue or incurred any
related cost of revenue to date. We are in the formation stage as our business
was formed on September 29, 2010 and no revenue activities have yet begun.
General and Administrative. General and administrative expenses for the three
and nine month periods ended December 31, 2011 were $750 and $1,419,
respectively. The expense relates to office supplies and computer maintenance.
Professional Fees. Professional fees for the three and nine month periods ended
December 31, 2011 were $4,803 and $18,583, respectively. The expense relates to
legal and accounting fees as a result of being a public company.
Officer Compensation. Officer compensation paid for the three and nine month
periods ended December 31, 2011 was $51,500 and $54,000, respectively. On
December 1, 2011, the Company issued 1,000,000 common shares to its Chief
Executive Officer at $0.05 per share or $50,000 for compensation. Such amounts
were paid to our sole officer and CEO, Humaira Haider pursuant to the employment
agreement the Company has with Ms. Haider.
Liquidity and Capital Resources
Our cash and cash equivalents totaled approximately $25,000 at December 31,
2011. Our stock subscriptions receivable totaled $13,070 at December 31, 2011.
Net Cash Used in Operating Activities. Cash used in operating activities for the
nine months ended December 31, 2011 was $27,689.
Net Cash Provided By/Used in Investing Activities. We did not use cash in
investing activities for the nine months ended September 30, 2011.
Net Cash Provided By Financing Activities. Cash generated from financing
activities for the nine months ended December 31, 2011 was $38,070.
Critical Accounting Policies
None.
Recent Accounting Pronouncements
In May 2011, the FASB issued the FASB Accounting Standards Update No. 2011-04
"Fair Value Measurement" ("ASU 2011-04"). This amendment and guidance are the
result of the work by the FASB and the IASB to develop common requirements for
measuring fair value and for disclosing information about fair value
measurements in accordance with U.S. GAAP and International Financial Reporting
Standards (IFRSs).
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--------------------------------------------------------------------------------This update does not modify the requirements for when fair value measurements
apply; rather, they generally represent clarifications on how to measure and
disclose fair value under ASC 820, Fair Value Measurement, including the
following revisions:
· An entity that holds a group of financial assets and
financial liabilities whose market risk (that is,
interest rate risk, currency risk, or other price risk)
and credit risk are managed on the basis of the entity's
net risk exposure may apply an exception to the fair
value requirements in ASC 820 if certain criteria are
met. The exception allows such financial instruments to
be measured on the basis of the reporting entity's net,
rather than gross, exposure to those risks.
· In the absence of a Level 1 input, a reporting entity
should apply premiums or discounts when market
participants would do so when pricing the asset or
liability consistent with the unit of account.
· Additional disclosures about fair value measurements.
The amendments in this Update are to be applied prospectively and are effective
for public entity during interim and annual periods beginning after December 15,
2011.
In June 2011, the FASB issued the FASB Accounting Standards Update No. 2011-05
"Comprehensive Income" ("ASU 2011-05"), which was the result of a joint project
with the IASB and amends the guidance in ASC 220, Comprehensive Income, by
eliminating the option to present components of other comprehensive income (OCI)
in the statement of stockholders' equity. Instead, the new guidance now gives
entities the option to present all nonowner changes in stockholders' equity
either as a single continuous statement of comprehensive income or as two
separate but consecutive statements. Regardless of whether an entity chooses to
present comprehensive income in a single continuous statement or in two separate
but consecutive statements, the amendments require entities to present all
reclassification adjustments from OCI to net income on the face of the statement
of comprehensive income.
The amendments in this Update should be applied retrospectively and are
effective for public entity for fiscal years, and interim periods within those
years, beginning after December 15, 2011.
Management does not believe that any other recently issued, but not yet
effective accounting pronouncements, if adopted, would have a material effect on
the accompanying consolidated financial statements.
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