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ALARMING DEVICES, INC. - 10-Q - Management's Discussion and Analysis of Financial Condition and Results of Operation
(Edgar Glimpses Via Acquire Media NewsEdge) This section of this report includes a number of forward-looking statements that
reflect our current views with respect to future events and financial
performance. Forward looking statements are often identified by words like:
believe, expect, estimate, anticipate, intend, project and similar expressions
or words which, by their nature, refer to future events. You should not place
undue certainty on these forward-looking statements, which apply only as of the
date of this report. These forward looking statements are subject to certain
risks and uncertainties that could cause actual results to differ materially
from historical results or our predictions.
Overview
Alarming Devices, Inc. ("Alarming Devices", "the Company", "our" or "we") was
incorporated in the State of Nevada as a for-profit company on July 22, 2008. We
are a development stage company that intends to import from China and supply a
reliable and affordable home and commercial wireless alarm system to resellers
and distributors in North America. The company will import and distribute
through certified resellers that will install and provide end user support. The
company will also allow resellers to customer label the products so they could
have the opportunity to create their own "house" brand. The Company would import
and hold products with a shipping agent that would pick and ship for the company
contractually to help control fixed costs.
The Company intends to seek a master distributor in North America who already
supplies the alarm industry. The Master Distributor will have exclusive reseller
rights throughout the territory; product manufactured specifically for Alarming
Devices will be shipped directly from the manufacturer to the master
distributor.
Plan of Operation
The Company has not yet generated any revenue from its operations. As of
November 30, 2012, we had $0 of cash on hand. We incurred operating expenses in
the amount of $98,156 since July 22, 2008 to November 30, 2012. These operating
expenses were comprised of professional fees and office and general expenses.
Our current cash holdings will not satisfy our liquidity requirements and we
will require additional financing to pursue our planned business activities. We
have registered 2,000,000 of or our common stock for sale to the public. Our
registration statement became effective on November 30, 2009 and we are in the
process of seeking equity financing to fund our operations over the next 12
months.
Management believes that if subsequent private placements are successful, we
will generate sales revenue within the following twelve months thereof. However,
additional equity financing may not be available to us on acceptable terms or at
all, and thus we could fail to satisfy our future cash requirements.
If Alarming Devices is unsuccessful in raising the additional proceeds through a
private placement offering it will then have to seek additional funds through
debt financing, which would be very difficult for a new development stage
company to secure. Therefore, the company is highly dependent upon the success
of the anticipated private placement offering described herein and failure
thereof would result in Alarming Devices having to seek capital from other
resources such as debt financing, which may not even be available to the
company. However, if such financing were available, because Alarming Devices is
a development stage company with no operations to date, it would likely have to
pay additional costs associated with high risk loans and be subject to an above
market interest rate. At such time these funds are required, management would
evaluate the terms of such debt financing and determine whether the business
could sustain operations and growth and manage the debt load. If Alarming
Devices cannot raise additional proceeds via a private placement of its common
stock or secure debt financing it would be required to cease business
operations. As a result, investors in Alarming Devices common stock would lose
all of their investment.
Our specific goal is to import and supply an affordable wireless alarm system.
We intend to accomplish the foregoing through the following milestones:
1. Our president plans to begin secure a licensing/purchase agreement with a
company that owns some proprietary radio technology that would become the
backbone of the Company's product line. Then the President would contact
factories in China and then travel to negotiate prices, approve prototypes and
do all the necessary arrangements. We expect to complete this step within 120
days after we have raised enough funds.
13
2. We intend to search for a suitable location for storage, to order some of
alarms and have them shipped from China and stored for future sales. Even though
the Company would prefer to drop ship from our manufacturer in directly to our
distributors the Company will have to store some inventory back up in case of
manufacturing delays in China. We also intend to hire an outside web designer to
develop our website. We expect to have our products in stock and our website
ready within 300 days after we have raised enough funds.
3. As soon as our website is operational, we will begin to market our product on
TV commercials. Marketing is an ongoing matter that will continue during the
life of our operations.
In summary, we anticipate that we will be fully operational within 360 days
after we have raised enough funds.
As of the date of this filing, Alarming Devices has not yet generated enough
funds in order to start its plan of operations. We have not yet secured any
private placement offering or debt financing.
The Company incurred a net loss of $4,100 for the nine-month period ended
November 30, 2012, compared with a net loss of $4,035 for the nine month period
ended November 30, 2011.
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