Quarterly Report (10-q)
November 20 2017 - 9:42AM
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
September
30, 2017
o
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, or a small reporting company. See the definitions
of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act.
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 November 14, 2017.
Digital Development Partners, Inc.
Balance Sheets
(Unaudited)
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September 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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395
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$
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14,513
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Total current assets
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395
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14,513
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Total Assets
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$
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395
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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
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177,075
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152,217
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Related party loan payable
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683,750
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650,000
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Total current liabilities
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860,825
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802,217
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Total Liabilities
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860,825
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802,217
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Stockholders' Deficit
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Common Stock, $0.001 par value; authorized 225,000,000
shares; issued and outstanding 85,970,665 shares at September 30, 2017, and December 31, 2016
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85,971
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85,971
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Additional Paid-In Capital
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7,488,946
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7,488,946
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Accumulated Deficit
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(8,435,347
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)
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(8,362,621
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)
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Total Stockholders' Deficit
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(860,430
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)
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(787,704
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)
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Total Liabilities and Stockholders' Deficit
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$
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395
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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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Nine Months Ended
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September 30,
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September 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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13,227
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$
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19,700
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$
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47,659
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$
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57,814
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Loss from Operations
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(13,227
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)
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(19,700
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)
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(47,659
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)
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(57,814
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)
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Interest Expense
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(8,488
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)
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(7,803
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)
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(25,067
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)
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(22,516
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)
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Net Loss
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$
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(21,715
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)
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$
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(27,503
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)
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$
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(72,726
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)
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$
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(80,330
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)
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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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$
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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 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
.
Statements of Cash Flows
(Unaudited)
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For the
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Nine Months Ended
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September 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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(72,726
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)
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$
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(80,330
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)
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Adjustments to reconcile net loss to net cash used in operating activities:
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Changes in operating assets and liabilities:
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Accounts payable, accrued liabilities
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24,858
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17,805
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Net cash used in operating activities
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(47,868
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)
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(62,525
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)
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Cash flows from financing activities:
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Proceeds of loans - Related Party
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33,750
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70,000
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Net cash provided by financing activities
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33,750
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70,000
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Net increase (decrease) in cash
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(14,118
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)
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7,474
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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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395
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$
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19,930
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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)
1.
Basis of Presentation and Nature of Operations
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 September 30, 2017 and for the nine months ended September 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 nine months ended September 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.
2. Going Concern
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 September 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.
3. Related Party Transactions
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September 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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683,750
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$
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650,000
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As of September 30, 2017 the
Company owed EFT Holdings Inc., a Company with common officers, $683,750. Advances of $33,750 were received from EFT Holdings
during the nine months ended September 30, 2017. With the exceptions of the recent $33,750 advances, all amounts due EFT
Holdings bear interest at 5% per year, are unsecured and are due on demand. The $33,750 loaned during the nine months ended
September 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.
Item
2. Management's Discussion and Analysis of Financial Condition and Results of Operation
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.
Results of Operations
The Company did not receive any orders
for the EFT phone during the year ended December 31, 2016 or the nine months ended September 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.
Item 4. Controls and Procedures.
(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 September 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 September 30, 2017, that materially affected, or are reasonably likely to materially affect, its internal control over financial
reporting.
PART II
Item 6. Exhibits
Exhibits
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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
|
XBRL Taxonomy Extension Calculation Linkbase
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101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
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101.LAB
|
XBRL Taxonomy Extension Label Linkbase
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase
|
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.
|
DIGITAL DEVELOPMENT PARTNERS, INC.
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November 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 Accounting Officer
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