COMPARISON OF RESULTS FOR THE THREE MONTHS ENDED OCTOBER 31, 2008 AND 2007
Revenues: We had no revenues for the three months ended October 31, 2008 compared to $6,875 for the three months ended October 31, 2007. The decrease in revenues was primarily the result of us determining not to pursue our current product lines
As of July 31, 2008, our sole business was to manufacture two products under the On The Go name: a padded training seat that helps toddlers with potty training, and a baby bath with a contoured shape to cradle babies 0-6 months old. As of July 31, 2008, these two products did not produced enough revenue for us to cover our expenses. After evaluating the market for baby care products, we determined that the industry does not offer enough opportunity for a small company to create products that are affordable to develop, price competitive for the consumer and that we can introduce into distribution channels without significant expense. As a result, we determined to not invest further funds developing our baby products line
Our current cash balance and cash flow from operating activities will not be sufficient to fund our operations or our overhead. Our cash flow from financing activities for the three months ended October 31, 2008 resulted in a surplus of $4,385. We believe we will need to raise capital of approximately $300,000 to $350,000 through either debt or equity instruments to fund our operations for the next 12 months. However, we may not be successful in raising the necessary capital to fund our operations. In addition to amounts needed to fund our operations, we may need to generate an additional $500,000 to cover our current liabilities for the next 12 months.
3. RELATED PARTY TRANSACTIONS
On October 2, 2008, the Company issued 10,000,000 restricted shares of common stock to Michael Levine, CEO, President and Chairman of the Board as a deposit on the acquisition of Den Packaging Inc. valued at $2,000,000.
(In reference to the restricted transactions)
With respect to the sales of our securities described above, we relied on the Section 4(2) exemption from securities registration under the federal securities laws for transactions not involving any public offering. No advertising or general solicitation was employed in offering the securities.
The securities were sold to accredited investors. The securities were offered for investment purposes only and not for the purpose of resale or distribution, and the transfer thereof was appropriately restricted by us.
(In reference to rents paid)
9. RELATED PARTY TRANSACTIONS
As of and for the fiscal years ended July 31, 2008 and 2007, the Company had purchases totaling $3,473 and $9,789, respectively, rent expense totaling $35,864 and $32,143, respectively, and outstanding payables totaling $70,508 and $33,746, respectively, with a vendor to which the Company's Chief Executive Officer has a majority ownership interest.
