$GFMH - Plan of Operations
We have not yet enjoyed any revenues. In the nine months ending January 31, 2012, notes payable in the amount of $38,000 was advanced by a related party, in addition $72,500 was raised from the sale of stock were advanced from business prospects for future business projects with the Company. The note carries three percent interest and is due on October 27, 2013.
We had a loss of $100,104 not including interest expense for the nine months ended January 31, 2012. For the nine month period ended January 31, 2012 we had total expenses of $99,519 which included $43,718 of professional fees, $18,000 in stock based compensation, $12,000 in consulting services costs, $6,600 for advertising, $8,006 for rent, website setup in the amount of $7,000, and $4,195 of other operating expenses, primarily travel and entertainment costs. In fiscal 2012, we expect to begin to generate revenues from the distribution of films we plan to develop or license during the year.
Our cash needs in the year ended April 30, 2012 are estimated to be $200,000. This budget is based on the assumption that we will carry out one project at a time for which we will need about $50,000 in working capital; general and administrative expenses of $150,000 for the costs related to being public, and miscellaneous office expenses. We sold 241,667 shares for net proceeds of $72,500 in offerings conducted in the nine months ended January 31, 2012 and raised $38,000 through a related party note. As we move forward with our business plan we will need to raise additional capital either through the sale of stock or funding from shares and or officers and directors to cover our cash needs through the end of the 2012 fiscal year.
Information included in this report includes forward looking statements, which can be identified by the use of forward-looking terminology such as may, expect, anticipate, believe, estimate, or continue, or the negative thereof or other variations thereon or comparable terminology. The statements in "Risk Factors" and other statements and disclaimers in this report constitute cautionary statements identifying important factors, including risks and uncertainties, relating to the forward-looking statements that could cause actual results to differ materially from those reflected in the forward-looking statements.
Since we have not yet generated any revenues, we were a development stage company as that term is defined in Section 915 - Development Stage Entities, of the FASB Accounting Standards Codification. Our activities have mostly been devoted to seeking capital; seeking supply contracts and development of a business plan. Our auditors have included an explanatory paragraph in their report on our financial statements, relating to the uncertainty of our business as a going concern, due to our lack of operating history or current revenues, its nature as a start up business, management's limited experience and limited funds. We do not believe that conventional financing, such as bank loans, is available to us due to these factors. We have no bank line of credit available to us. Management believes that it will be able to raise the required funds for operations from one or more future offerings, in order to affect our business plan.
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