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CROWN BAUS CAPITAL CORP. - 10-Q - : MANAGEMENT'S DISCUSSION AND ANALYSIS and PLAN OF OPERATION
[September 15, 2014]

CROWN BAUS CAPITAL CORP. - 10-Q - : MANAGEMENT'S DISCUSSION AND ANALYSIS and PLAN OF OPERATION


(Edgar Glimpses Via Acquire Media NewsEdge) The following discussion of our financial condition and results of operations should be read in conjunction with the financial statements and related notes to the financial statements included elsewhere in this filing as well as with Management's Discussion and Analysis or Plan of Operations contained in the Company's Report on Form 10-K, for the year ended April 30, 2014, filed with the Securities and Exchange Commission.



Forward Looking Statements Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

Plan of Operations Our business is advertising of products and services using SMS technology. We believe that traditional advertising has been undergoing a shift from being dominant; and mobile advertising is quickly becoming one of the most effective ways to reach target audiences anytime and anywhere.


We intend to offer the following services: · Mobile-friendly websites: A mobile optimized website is a website that is designed specifically for smartphones, not a desktop computer. This is important because the small screen is much different than a 17" screen. Mobile screen real estate is smaller and must be used much more strategically.

· A mobile optimized website doesn't require that someone scroll left/right. It doesn't require that someone pinch and zoom to read text, either. On a mobile site, the navigation is built for efficiency, the images are optimized for quick loading and the content is minimized to be most effective. Additionally, mobile-only functionality includes tap-to-call, tap-to-email and tap for Google Maps functionality, that respectfully allows mobile site visitors to call, send an email or show business location on an integrated Google maps application with only one click, without need to punch numbers or letters one by one, making it much more efficient and useful for a mobile website visitor.

4 · SMS text message marketing: Sending marketing offers through cellphones SMS (Short Message Service) that enable targeted marketing in the last minute. The Mobile Lads system relies on SMS technology with no real application needed in the mobile device. Only basic SMS support is required which is present in every mobile phone. From the users point of view the advertisement procedure starts when the user receives a Mobile Lads SMS ad with the advertised product, information and product identification code. The user then simply presents the product identification code at the register at the point of sale to receive mentioned discount or special offer.

· QR (Quick Response) codes: A QR code (quick response code) is a type of 2D bar code that is used to provide easy access to information through a smartphone application that is designed to read that bar code working in conjunction with the phone's camera. The reader interprets the code, which typically contains a call to action such as an invitation to download a mobile application, a link to view a video or an SMS message inviting the viewer to respond to a poll. The phone's owner can choose to act upon the call to action or click cancel and ignore the invitation.

We are not involved in developing a web based management system for our operations. We intend to use third party applications for our needs. We signed a web based terms and services agreement with Twilio Inc., and would act as a reseller of Twilio Inc services, (SMS messaging services). Twilio Inc itself does not work with retail businesses. It works only with marketers/resellers, who buy their credits/SMS in bulk.

Results of Operations for the three months ended July 31, 2014 and 2013 We did not generate any revenues for the three months ended July 31, 2014 and 2013.

General and administrative expense increased $1,945 to $2,016 for the three months ended July 31, 2014 from $71 for the three months ended July 31, 2013.

The increase in general and administrative expense is attributed to an increase in transfer agent fees.

Professional fees increased $8,498 to $10,998 for the three months ended July 31, 2014 from $2,500 for the three months ended July 31, 2013. The increase is a result of an increase in audit and legal fees.

Our net loss for the three months ended July 31, 2014 was $13,014 compared to $2,571 for the three months ended July 31, 2013.

Liquidity and Capital Resources Cash Flows from Operating Activities We have not generated positive cash flows from operating activities. For the three months ended July 31, 2014, net cash flows used in operating activities were $14,300 compared to $8,071 for the three months ended July 31, 2013.

Cash Flows from Investing Activities We have not generated any cash flows from investing activities.

5 Cash Flows from Financing Activities We have financed our operations primarily from either cash advances from officers and directors or the issuance of equity. For the three months ended July 31, 2014, cash flows from financing activities was $14,300. For the period from inception (March 26, 2013) to July 31, 2014, net cash provided by financing activities was $46,200.

We expect that working capital requirements will continue to be funded through a combination of loans and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

Additional cash advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next three months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations. We will have to raise additional funds in the next twelve months in order to sustain and expand our operations. We currently do not have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of equity financing from the sale of our common stock. We have and will continue to seek to obtain short-term loans from our directors, although no future arrangement for additional loans has been made. We do not have any agreements with our directors concerning these loans. We do not have any arrangements in place for any future equity financing.

Off-Balance Sheet Arrangements None Going Concern The accompanying financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has had no revenue as of July 31, 2014 and an accumulated deficit of $44,914. The Company currently has limited working capital, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time.

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