BUSINESS MARKETING SERVICES INC - 10-K - Management's Discussion and Analysis of Financial Condition and Results of Operations
(Edgar Glimpses Via Acquire Media NewsEdge) Introduction
You should read the following discussion in conjunction with our audited
financial statements, which are included elsewhere in this Form 10-K, and the
special note on Forward Looking Statements appearing before Item 1. Business.
Management's Discussion and Analysis and its plans of operation contain
statements that are forward-looking. These statements are based on current
expectations and assumptions, which are subject to risk, uncertainties and other
factors. Actual results may differ materially because of the factors discussed
in the subsection titled "Risk Factors," which are located in Item 1A.
Business Marketing Services, Inc.'s ("BMSV" or the "Company") is a development
stage company. We focus on early-stage business activities.
We believe that we can create value for businesses in the entertainment industry
and value for end users by making enforcement of copyright more efficient and by
lowering costs of delivery of digital content.
We are planning to obtain license agreements for digital content. We are
planning partnerships to access state-of-the-art technology for storage and
delivery of digital content to consumers. We are planning to make strategic
acquisitions to realize our plans.
We might alter our plans if we do not succeed in raising funds to start the
projects or if we do not succeed in obtaining license agreements that are
essential for the business we envisage.
Recent Developments and Changes to Business Plan
On January 19, 2010, Hans Pandeya, our current CEO and director, acquired the
majority of the issued and outstanding common stock of the Company, from Doug
Black, in accordance with a common stock purchase agreement (the "Stock Purchase
Agreement") between Hans Pandeya, Doug Black and the Company. On the Closing
Date, pursuant to the terms of the Stock Purchase Agreement, Hans Pandeya
acquired fifteen million (15,000,000) shares of the Company's issued and
outstanding common stock representing approximately 78% of the Company's issued
and outstanding common stock, for a total purchase price of Three Hundred
Twenty-Five Thousand dollars ($325,000).
On January 7, 2013, Mrs Majken Hummel-Gumaelius was appointed as President,
Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and
Director of the Company. Mrs. Hummel-Gumaelius has not been appointed to any
committees of the Board, as the Board does not presently have any committees.
Critical Accounting Policies
Our discussion and analysis of our financial condition and results of operation
is based upon our audited financial statements, which have been prepared in
accordance with Generally Accepted Accounting Principles ("U.S. GAAP"). The
preparation of these financial statements requires us to make estimates,
judgments and assumptions that affect the reported amounts of assets,
liabilities, revenues and expenses, and the related disclosure of contingent
assets and liabilities. We base our estimates on historical experience and on
various other assumptions that we believe are reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates.
An accounting policy is considered to be critical if it requires an accounting
estimate to be made based on assumptions about matters that are highly uncertain
at the time the estimate is made, and if different estimates reasonably could
have been used, or changes in the accounting estimate that are reasonably likely
to occur, could materially impact the condensed consolidated financial
statements. We believe that the following critical accounting policies reflect
the more significant estimates and assumption used in the preparation of the
condensed consolidated financial statements.
Management has discussed the development and selection of these critical
accounting estimates with the Audit Committee of our Board. In addition, there
are other items within our financial statements that require estimation, but are
not deemed critical as defined above. Changes in estimates used in these other
items could have a material impact on our financial statements.
--------------------------------------------------------------------------------Loss Per Share
Basic loss per share is presented on the face of the statements of operations.
Basic loss per share is calculated as the loss attributable to common
stockholders divided by the weighted average number of shares outstanding during
each period. Basic (loss) per share is computed using the weighted average
number of shares outstanding during the period. Due to the Company's losses from
continuing operations, dilutive potential common shares in the form of warrants
and unvested common stock awards were excluded from the computation of diluted
loss per share, as inclusion would be anti-dilutive for the periods presented.
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S.
GAAP requires management to make estimates and assumptions that affect the
amounts reported in the condensed consolidated financial statements and
accompanying notes. Such estimates and assumptions impact, among others, the
following: the amount of uncollectible accounts receivable, the amount to be
paid for the settlement of liabilities related to cost of sales, the estimated
useful lives for property and equipment, value assigned to the warrants granted
in connection with the various financing arrangements and calculation for stock
compensation expense. Actual results could differ from those estimates.
Results of Operations
The following table sets forth, for the periods indicated, the Statements of
Operations that is used in the following discussions of our results of
The Company generated revenue of $ 59,562 for the year ended December 31, 2013,
compared to $ 317,508 for the year ended December 31, 2012.
The Company operating expenses for 2013 was $45,078 as compared to $ 257,575 in
2012. Our operating decrease in revenues was due to divestment of our shares
holding in Adcore ApS.
The Company had other (income) expenses of $503 for the year ended December 31,
2013, compared to $ 9,893 for the year ended December 31, 2012.
The following table summarizes the Company's Statement of Cash Flows:
Net cash provided (used) by operating activities Twelve Months Ended December 31,
Operating Activities (15,144) 97,604
Investing Activities - -
Financing Activities (98,099) (34,136)
We believe that with our current cashflow for our operation and cash on hand we
have sufficient capital to operate for the next 12 months.
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