Note 5 – Note Payable
The Company has an unsecured note payable to an unrelated third party at June 30, 2012 in the
principal amount of $325,000. The note has an imputed interest rate of 6% per annum, the
effects of which are immaterial to the financial statements taken as a whole. The note is past
due, is currently payable on demand, and has a conversion into common shares feature.
RESULTS OF OPERATIONS – QUARTER ENDED June 30, 2012
Revenues
In 2006 and 2007 Unique Pizza and Subs Corp. entered into many different franchise
agreements with different franchisees that included monies upfront which encompassed a
variation of the initial franchise fee, stock and future royalty revenues. As a result of these
diverse deals and because of an internal restructuring plan, UPZS does not have revenue to
report for the Quarter Ended June 30, 2012.
Operating Expenses
We had operating expenses of $6,446.08 for the Quarter Ended June 30, 2012. Our
operating expenses include depreciation expense of $500 and other selling, general and
administrative expenses in the amount of $2,127.10 in traveling and entertainment
Liquidity and Capital Resources
We had - $ 530 cash at June 30, 2012.
Net cash flows used in operating activities were $1,027 for the Quarter Ended June 30,
2012. This is attributable to a net loss of $1,527 for the Quarter Ended June 30, 2012 less
depreciation expense of $500 for the Quarter Ended June 30, 2012.
There were no cash flows from investing activities for the Quarter Ended June 30, 2012.
There were no cash flows from financing activities for the Quarter Ended June 30,
2012.
Overall, we have funded all of our cash needs from inception through June 30, 2012
with proceeds from issuance of our common stock.
Item 5. Legal proceedings:
There are some current, past, pending and threatened legal proceedings and/or administrative
actions either by or against the issuer that could have a material effect on the issuer's business,
financial condition, or operations. UPZS has entered into agreements to pay, or judgments
against, or pending legal proceedings, with the following companies or individuals: nine
former employees from corporate office and call center include: J. Carroll $50,000 plus costs,
D. Sherbondy, A. Lazarchik, L. Lewis, B. Magill, K. Christy, L. Moss, L. Middleton, B.
Tuulaupua, we have judgments in the total amount of $59,500; Carol Harris Staffing, LLC has
a collection lawsuit pending for $17,986.02; US Food Service, Inc. has a default judgment for
$28,910.91 plus costs; the US Department of Labor, $28,276; Pick Up Stix, Inc. for $17,050.
AI
