PMX COMMUNITIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
| |
|
|
March 31,
|
December 31,
|
|
|
2017
|
2016
|
|
|
|
|
|
Assets
|
|
|
|
Total assets
|
$ -
|
$ -
|
|
|
|
|
|
Liabilities and Stockholders' Deficit
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
Accounts payable
|
$ 62,549
|
$ 62,549
|
|
Accrued interest
|
122,176
|
115,644
|
|
Notes payable
|
157,367
|
157,367
|
|
Total current liabilities
|
342,092
|
335,560
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
342,092
|
335,560
|
|
|
|
|
|
Stockholders' deficit
|
|
|
|
|
|
|
|
Preferred stock, $0.0001 par value; authorized 10,000,000 shares, no shares issued or outstanding
|
-
|
-
|
|
Common stock, $0.0001 par value; authorized 500,000,000 shares; issued and outstanding 118,015,124 and 118,015,124 shares as of March 31, 2017 and December 31, 2016, respectively
|
11,801
|
11,801
|
|
Additional paid-in capital
|
3,102,321
|
3,102,321
|
|
Accumulated deficit
|
(3,456,214)
|
(3,449,682)
|
|
Total stockholders' deficit
|
(342,092)
|
(335,560)
|
|
Total liabilities and stockholders' deficit
|
$ -
|
$ -
|
See accompanying notes to the unaudited consolidated financial statements.
4
PMX COMMUNITIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
| |
|
|
For the Three Months Ended March 31,
2017
|
For the Three Months Ended March 31, 2016
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
Depreciation
|
$ -
|
$ 7,756
|
|
|
|
|
|
Total operating expenses
|
-
|
7,756
|
|
Loss from operations
|
-
|
(7,756)
|
|
|
|
|
|
Other income (expense):
|
|
|
|
Interest expense
|
(6,532)
|
(5,773)
|
|
Gain on forgiveness of accounts payable
|
-
|
1,841
|
|
Total other income (expense)
|
(6,532)
|
(3,932)
|
|
|
|
|
|
Loss before income taxes
|
(6,532)
|
(11,688)
|
|
Income taxes
|
-
|
-
|
|
Net loss
|
$ (6,532)
|
$ (11,688)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per common share
|
$ (0.00)
|
$ (0.00)
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
|
Basic and diluted
|
118,015,124
|
97,115,124
|
See accompanying notes to the unaudited consolidated financial statements.
5
PMX COMMUNITIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
| |
|
|
For the Three Months Ended March 31,
2017
|
For the Three Months Ended March 31,
2016
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
Net loss
|
$ (6,532)
|
$ (11,688)
|
|
Adjustments to reconcile net loss to net
|
|
|
|
cash used in operating activities:
|
|
|
|
Depreciation
|
-
|
7,756
|
|
Change in assets and liabilities
|
|
|
|
Accounts payable
|
-
|
(1,841)
|
|
Accrued interest
|
6,532
|
5,773
|
|
Net cash used in operating activities
|
-
|
-
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
-
|
-
|
|
Cash and cash equivalents,
beginning of period
|
-
|
-
|
|
Cash and cash equivalents,
end of period
|
$ -
|
$ -
|
|
|
|
|
|
Supplementary information:
|
|
|
|
Cash paid for :
|
|
|
|
Interest
|
$ -
|
$ -
|
|
Income taxes
|
$ -
|
$ -
|
See accompanying notes to the unaudited consolidated financial statements.
6
PMX COMMUNITIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2017 AND 2016
(UNAUDITED)
NOTE 1 – DESCRIPTION OF BUSINESS
PMX Communities, Inc. "PMX" was organized under the laws of the State of Nevada on December 29, 2004 under the name Merge II, Inc. and changed its name to PMX Communities, Inc. effective February 10, 2009. PMX's year end is December 31.
On September 28, 2010, PMX formed PMX Gold, LLC, (“PMX Gold”) a Florida limited liability company as a wholly owned subsidiary of the Company to assist with evaluating and pursuing opportunities within the Gold Mining and Retail Gold Sales Industries.
On September 28, 2011, PMX formed PMX Gold Bullion Sales Inc. (“PMX Bullion”), a Florida corporation as a wholly owned subsidiary of the Company.
PMX, (through its wholly owned subsidiaries PMX Gold, LLC and PMX Gold Bullion Sales Inc.) focuses on the development of leveraged opportunities within the Retail Gold Sales and Gold Mining Industries.
PMX Communities, Inc. and its wholly-owned subsidiaries are hereafter referred to as “the Company”.
NOTE 2 - GOING CONCERN
The accompanying unaudited interim consolidated financial statements have been prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As reflected in the accompanying condensed unaudited consolidated financial statements, the Company had a net loss of $6,532 and $11,688 for the three months ended March 31, 2017 and 2016, respectively. The Company has a working capital deficit of $342,092 and a stockholders' deficit of $342,092 at March 31, 2017.
Based on the above considerations, there is a substantial doubt about the ability of the Company to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company's ability to further implement its business plan and generate future
7
profits or attain working capital through debt or equity financing. Management hopes that the continued placement of precious metals machines in the U.S.A. and the potential of a global rollout of additional dispensing terminals will bring sufficient revenues and investment into the Company to sustain its growth and operations. Furthermore, management believes organic growth through a new strategy in the Company’s subsidiaries will assist the Company in achievement of its goals. There is no assurance that this series of events will be satisfactorily completed. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
Our financial statements are stated in United States dollars and have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP").
Interim Financial Statements
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with GAAP for interim financial information in accordance with Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. While we believe that the disclosures presented herein are adequate and not misleading, these unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements filed with the SEC in our Form 10K on May 2, 2017. Operating results for the interim periods presented are not necessarily indicative of the results for the full year.
NOTE 4 – NOTES PAYABLE
Promissory Notes carry outstanding principal balances of $157,367 and $157,367 as of March 31, 2017 and December 31, 2016, respectively. Related accrued interest was $122,176 and $115,644 as of March 31, 2017 and December 31, 2017, respectively. As of March 31, 2017, these notes are due on demand as their maturity dates have passed. These notes bear interest at a rate of 5% to 12% per annum.
8
NOTE 5 – RELATED PARTY TRANSACTIONS
The Company is currently using space at 2700 North Military Trail #130, Boca Raton, FL 33431, which has been provided by a majority shareholder free of charge.
During the year ended December 31, 2016 the Company borrowed $4,000 from shareholders. The loans bear interest at 5% and each has a six-month maturity. The balance as of March 31, 2017 and December 31, 2016 is $4,000 and $4,000, respectively.
During the year ended December 31, 2016, a related party shareholder paid $24,550 in expenses on the Company’s behalf. The amount is included in accounts payable as of March 31, 2017 and December 31, 2016.
The above related party transactions are not necessarily indicative of the terms and amounts that would have been incurred had comparable agreements been made with independent parties.
NOTE 6 – SUBSEQUENT EVENTS
During April 2017, a related party shareholder paid $6,000 in expenses on the Company’s behalf. The payable to the shareholder is unsecured, noninterest bearing and due on demand.
9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Trends and Uncertainties
The registrant has developed its PMX Gold Bullion Dispensing Terminal prototype called the MGIV and deployed the first prototype in Boca Raton, Florida, U.S.A. The terminal is an unmanned dispenser, which allows for gold dispensing and deposit and account management functions. The terminal also incorporated conventional ATM and touch-screen technology. After a successful six months test, the MGIV was removed in July 2013 from the first location.
The registrant has been assigned the ownership rights to two U.S. Provisional Patent Applications and a final International Patent Application Number PCT/US2012/020486 (“Unattended Precious Metal Distribution System, Methods and Apparatus”), and has filed next stage patent applications for its proprietary precious metals machine, in Australia, South Africa and the United States of America.
During 2017, we continued to look for opportunities for the company dispensing terminals. As precious metals become more valuable in the marketplace we hope a return to placing the terminals in venues such as malls.
Results of Operations for the three months ended March 31, 2017 and 2016
For the three months ended March 31, 2017, we did not record any revenues. We recorded interest expense of $6,532, resulting in a net loss of $6,532 for the period.
Comparatively, for the three months ended March 31, 2016, we did not record any revenues. We recorded depreciation expenses of $7,756, interest expenses of $5,773, and recorded a gain on the forgiveness of accounts payable of $1,841. As a result, we had a net loss of $11,688 for the three months ended March 31, 2016.
The decrease in net loss of $5,156 is due primarily to the Company decreasing operations while they seek out new business opportunities.
Liquidity and Capital Resources
The audit report filed with the SEC on the annual report on Form 10-K contained going concern notice, and no changes have been made to the Company that would change that notice. The Company does not currently have a cash balance.
Based on the above considerations, there is a substantial doubt about the ability of the Company to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company's ability to further implement its business plan and generate future profits or attain working capital through debt or equity financing. Management hopes that the
10
continued placement of precious metals machines in the U.S.A. and the potential of a global rollout of additional dispensing terminals will bring sufficient revenues and investment into the Company to sustain its growth and operations. Furthermore, management believes organic growth through a new strategy in the Company’s subsidiaries will assist the Company in achievement of its goals. There is no assurance that this series of events will be satisfactorily completed. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
Cash Flows for the three months ended March 31, 2017 and 2016
Operating Activities
During the three months ended March 31, 2017, we incurred a net loss of $6,532. We recorded accrued interest of $6,532. As a result, we had net cash used in operating activities of $0 for the period.
During the three months ended March 31, 2016, we incurred a net loss of $11,688. We recorded a positive adjustment of $7,756 due to depreciation. We had a negative change of $1,841 due to accounts payable and a positive change of $5,773 due to accrued interest, resulting in net cash used in operating activities of $0 for the period.
Investing Activities
For the three months ended March 31, 2017 and 2016, we did not pursue any investing activities.
Financing Activities
For the three months ended March 31, 2017 and 2016, we did not pursue any financing activities
Our internal and external sources of liquidity have included proceeds raised from subscription agreements and private placements and advances from related parties. We are currently not aware of any trends that are reasonably likely to have a material impact on our liquidity. We are currently exploring new relationships for the Company in order to pursue new courses of business.
Going Concern
To date, the registrant has incurred significant losses. The registrant’s viability is dependent upon its ability to obtain future financing and the success of its future operations. These factors raise substantial doubt as to the registrant’s ability to continue as a going concern.
Off-Balance Sheet Arrangements
The registrant had no material off-balance sheet arrangements as of March 31, 2017.
11
Critical Accounting Policies and Estimates
Management’s discussion and analysis of its financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles.
The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to the reported amounts of revenues and expenses and the valuation of our assets and contingencies. We believe our estimates and assumptions to be reasonable under the circumstances. However, actual results could differ from those estimates under different assumptions or conditions. Our financial statements are based on the assumption that we will continue as a going concern. If we are unable to continue as a going concern we would experience additional losses from the write-down of assets.
The registrant uses the fair value recognition provision of ASC 718, “Compensation-Stock Compensation,” which requires the registrant to expense the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of such instruments. The registrant uses the Black-Scholes option pricing model to calculate the fair value of any equity instruments on the grant date.
The registrant also uses the provisions of ASC 505-50, “Equity Based Payments to Non-Employees,” to account for stock-based compensation awards issued to non-employees for services. Such awards for services are recorded at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in ASC 505-50.
New Accounting Pronouncements
The registrant has adopted all recently issued accounting pronouncements. The adoption of the accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the registrant.