Delaware
|
20-4378866
|
|
(State
or Other Jurisdiction of Incorporation)
|
(I.R.S.
Employer
|
|
Or
Organization)
|
Identification
No.
|
|
1177
High Ridge Road, Stamford, CT
|
06905
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
TABLE
OF CONTENTS
|
PAGE
|
|
PART
I – FINANCIAL INFORMATION
|
3
|
|
ITEM
1. Financial Statements
|
||
Unaudited
Balance Sheet as of September 30, 2008 and
Audited Balance Sheets as of June 30, 2008
|
3
|
|
|
||
Unaudited
Statements of Operations for the three months ended September 30,
2008 and 2007 and
from inception December 15, 2005 to September 30,
2008.
|
4
|
|
Unaudited
Statements of Stockholders Deficiency for the period December 15,
2005
(Inception) to September 30, 2008.
|
5 | |
|
||
Unaudited
Statements of Cash Flows the three months ended September 30, 2008
and 2007 and
from inception December 15, 2005 to September 30,
2008.
|
6-7
|
|
Unaudited
Notes to Financial Statements
|
8-10
|
|
ITEM
2. Management’s Discussion and Analysis and Results of
Operations
|
11
|
|
ITEM
3. Quantitative and Qualitative Disclosure About Market
Risk.
|
17
|
|
ITEM
4. Controls and Procedures
|
17
|
|
PART
II – OTHER INFORMATION
|
18 | |
ITEM
1. Legal Proceedings
|
18
|
|
ITEM
1A. Risk Factors
|
18 | |
ITEM
2. Unregistered Sales of Equity Securities and Use of
Proceeds
|
19
|
|
ITEM
3. Defaults Upon Senior Securities
|
19
|
|
ITEM
4. Submission of Matters to a Vote of Security Holders
|
19
|
|
ITEM
5. Other Information
|
19
|
|
ITEM
6. Exhibits
|
19
|
|
SIGNATURES
|
20 | |
Certifications
|
September
30, 2008
|
June
30. 2008
|
||||||
(Unaudited)
|
(Audited)
|
||||||
ASSETS
|
|||||||
Current
Assets:
|
|
|
|||||
|
|
|
|||||
Cash
and Cash Equivalents
|
$
|
1,305
|
$
|
6,149
|
|||
|
|||||||
Total
Current Assets
|
1,305
|
6,149
|
|||||
|
|||||||
Property
and Equipment, Net
|
715
|
954
|
|||||
|
|||||||
Total
Assets
|
$
|
2,020
|
$
|
7,103
|
|||
LIABILITIES
AND STOCKHOLDERS’ DEFICIENCY
|
|||||||
Current
Liabilities:
|
|||||||
Convertible
Debentures
|
$
|
500,000
|
$
|
500,000
|
|||
Notes
Payable
|
201,960
|
201,960
|
|||||
Loan
Payable-Related Party
|
64,000
|
64,000
|
|||||
Accrued
Expenses
|
32,150
|
2,150
|
|||||
Accrued
Liquidated Damages
|
106,667
|
106,667
|
|||||
Accrued
Interest
|
176,186
|
152,588
|
|||||
|
|||||||
Total
Current Liabilities
|
1,080,963
|
1,027,365
|
|||||
|
|||||||
Commitments
and Contingencies
|
|||||||
|
|||||||
Stockholder’s
Deficiency:
|
|||||||
Preferred
Stock, $.0001 par value; 10,000,000 shares authorized,
|
|||||||
none
issued and outstanding
|
-
|
- | |||||
Common
Stock, $.0001 par value; 250,000,000 shares authorized,
|
|||||||
16,761,597
issued and outstanding
|
1,676
|
1,676
|
|||||
Additional
Paid in Capital
|
290,394
|
290,394
|
|||||
Deficit
Accumulated During the Development Stage
|
(1,371,013
|
)
|
(1,312,332
|
)
|
|||
|
|||||||
Total
Stockholders’ Deficiency
|
(1,078,9433
|
)
|
(1,020,262
|
)
|
|||
|
|||||||
Total
Liabilities and Stockholders’ Deficiency
|
$
|
2,020
|
$
|
7,103
|
For the Period
|
||||||||||
For
the Three
|
For
the Three
|
December
15, 2005
|
||||||||
Months
Ended
|
Months
Ended
|
(Inception)
to
|
||||||||
September
30,
|
September
30,
|
September
30,
|
||||||||
2008
|
2007
|
2008
|
||||||||
Net
Revenues
|
$ |
-
|
$ |
-
|
$ |
-
|
||||
Costs
and Expenses:
|
||||||||||
Officers
Compensation
|
-
|
45,000
|
286,573
|
|||||||
Software
Development
|
-
|
42,000
|
228,985
|
|||||||
Other
General and Administrative Expenses
|
35,083
|
32,653
|
272,243
|
|||||||
Total
Costs and Expenses
|
35,083
|
119,653
|
787,801
|
|||||||
Loss
from Operations
|
(35,083
|
) |
(119,653
|
)
|
(787,801
|
) | ||||
Other
Expenses:
|
||||||||||
Amortization
of Deferred Finance Costs
|
-
|
(58,726
|
) |
(240,113
|
)
|
|||||
Amortization
of Deferred Debt Discount
|
-
|
(37,654
|
)
|
(60,246
|
)
|
|||||
Interest
Expense
|
(23,598
|
)
|
(17,352
|
)
|
(176,186
|
)
|
||||
Liquidated
Damages
|
-
|
-
|
(106,667
|
)
|
||||||
Total
Other Expenses
|
(23,598
|
)
|
(113,732
|
)
|
(583,212
|
)
|
||||
Net
Loss
|
$
|
(58,681
|
)
|
$
|
(233,385
|
)
|
$
|
(1,371,013
|
)
|
|
Weighted
Average Common Shares
|
||||||||||
Outstanding
– Basic and Diluted
|
16,761,597
|
16,761,597
|
||||||||
Net
Loss Per Common Share
|
$
|
(.00
|
)
|
$
|
(.01
|
)
|
|
|
|
|
|
|
|
|
Deficit
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
Additional
|
|
Deferred
|
|
During
the
|
|
|
|
||||||||
|
|
Preferred
Stock
|
|
Common
Stock
|
|
Paid-In
|
|
Finance
|
|
Development
|
|
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Costs
|
|
Stage
|
|
Total
|
|||||||||
Common
Stock issued to Founders
|
-
|
$
|
-
|
4,510,000
|
$
|
451
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
451
|
|||||||||||
Common
Stock Issued for Software
|
|||||||||||||||||||||||||
Development
- at Par Value
|
-
|
-
|
9,700,000
|
970
|
-
|
-
|
-
|
970
|
|||||||||||||||||
Common
Stock Issued to a Private
|
|||||||||||||||||||||||||
Investor
- at $.024 Per Share
|
-
|
-
|
2,083,333
|
208
|
49,792
|
-
|
-
|
50,000
|
|||||||||||||||||
Commissions
on Sale of Common
Stock
|
-
|
-
|
-
|
-
|
(5,000
|
)
|
-
|
-
|
(5,000
|
)
|
|||||||||||||||
Net
Loss for the Period
|
-
|
-
|
-
|
-
|
-
|
-
|
(210,104
|
)
|
(210,104
|
)
|
|||||||||||||||
Balance
- June 30, 2007
|
-
|
-
|
16,293,333
|
1,629
|
44,792
|
-
|
(210,104
|
)
|
(163,683
|
)
|
|||||||||||||||
Common
Stock Issued Pursuant to a Private
|
|||||||||||||||||||||||||
Placement
at $.12
Per Share
|
-
|
-
|
468,264
|
47
|
56,143
|
-
|
-
|
56,190
|
|||||||||||||||||
Common
Stock Warrants Issued as Deferred
|
|||||||||||||||||||||||||
Finance
Costs on Note Payable - 83,111
|
|||||||||||||||||||||||||
at
$.116 Per Warrant
|
-
|
-
|
-
|
-
|
9,641
|
(9,641
|
)
|
-
|
-
|
||||||||||||||||
Debt
Discount on Loan Payable
|
-
|
-
|
-
|
-
|
43,246
|
-
|
-
|
43,246
|
|||||||||||||||||
Amortization
of Deferred Finance Costs
|
-
|
-
|
-
|
-
|
-
|
3,615
|
-
|
3,615
|
|||||||||||||||||
Net
Loss for the Year Ended
|
|||||||||||||||||||||||||
June
30, 2007
|
-
|
-
|
-
|
-
|
-
|
-
|
(762,986
|
)
|
(762,986
|
)
|
|||||||||||||||
Balance
- June 30, 2007
|
-
|
-
|
16,761,597
|
1,676
|
153,822
|
(6,026
|
)
|
(973,090
|
)
|
(823,618
|
)
|
||||||||||||||
Amortization
of Deferred
|
|||||||||||||||||||||||||
Finance
Costs
|
-
|
-
|
-
|
-
|
-
|
6,026
|
-
|
6,026
|
|||||||||||||||||
Debt
Forgiven by CEO
|
-
|
-
|
-
|
-
|
136,572
|
-
|
-
|
136,572
|
|||||||||||||||||
Net
Loss for the Year Ended
|
|||||||||||||||||||||||||
June
30, 2008
|
-
|
-
|
-
|
-
|
-
|
-
|
(339,242
|
)
|
(339,242
|
)
|
|||||||||||||||
Balance
- June 30, 2008
|
-
|
-
|
|
16,761,597
|
|
1,676
|
|
290,394
|
-
|
|
(1,312,332
|
)
|
|
(1,020,262
|
)
|
||||||||||
Net Loss for the Three Months Ended | |||||||||||||||||||||||||
September
30, 2008
|
-
|
-
|
-
|
-
|
-
|
-
|
|
(
58,681
|
)
|
|
(
58,681
|
)
|
|||||||||||||
Balance
September 30, 2008
|
-
|
-
|
$
|
16,761,597
|
$
|
1,676
|
$
|
290,394
|
-
|
$
|
(1,371,013
|
)
|
$
|
(1,078,943
|
)
|
For the Period
|
||||||||||
For
the Three
|
For
the Three
|
December
15, 2005
|
||||||||
Months
Ended
|
Months
Ended
|
(Inception)
to
|
||||||||
September
30,
|
September
30,
|
September
30,
|
||||||||
2008
|
2007
|
2008
|
||||||||
Cash
flows from Operating Activities:
|
||||||||||
Net
Loss
|
$
|
(58,681
|
)
|
$
|
(233,385
|
)
|
$
|
(1,371,013
|
)
|
|
Adjustments
to Reconcile Net Loss to
|
||||||||||
Net
Cash (Used) in Operating Activities:
|
||||||||||
Amortization
of Debt Discount
|
-
|
37,654
|
60,246
|
|||||||
Amortization
of Deferred Finance Costs
|
-
|
58,726
|
240,113
|
|||||||
Depreciation
Expense
|
239
|
239
|
2,147
|
|||||||
Common
Stock Issued for Software Development
|
-
|
-
|
970
|
|||||||
Changes
in Assets and Liabilities:
|
||||||||||
Increase
in Accrued Expenses
|
30,000
|
62,542
|
168,723
|
|||||||
Increase
in Accrued Interest
|
23,598
|
17,352
|
176,186
|
|||||||
Increase
in Accrued Liquidated Damages
|
-
|
-
|
106,667
|
|||||||
Net
Cash Used in Operating Activities
|
(4,844
|
)
|
(56,872
|
)
|
(615,961
|
)
|
||||
Cash
Flows from Investing Activities:
|
||||||||||
Purchase
of Equipment
|
-
|
-
|
(2,862
|
)
|
||||||
Net
Cash Used in Investing Activities
|
-
|
-
|
(2,862
|
)
|
||||||
Cash
Flows from Financing Activities:
|
||||||||||
Decrease
in Stock Subscription Receivable
|
-
|
-
|
451
|
|||||||
Proceeds
from Issuance of Convertible Debentures
|
-
|
-
|
500,000
|
|||||||
Proceeds
from Issuance of Notes Payable
|
-
|
-
|
170,000
|
|||||||
Payments
of Finance Costs
|
-
|
-
|
(215,513
|
)
|
||||||
Proceeds
from Issuance of Common Stock
|
-
|
-
|
106,190
|
|||||||
Expense
on Sale of Common Stock
|
-
|
-
|
(5,000
|
)
|
||||||
Proceeds
of Loan Payable – Related Party
|
-
|
-
|
64,000
|
|||||||
Net
Cash Provided by Financial Activities
|
-
|
-
|
620,128
|
|||||||
Increase
(Decrease) in Cash
|
(4,844
|
)
|
(56,872
|
)
|
1,305
|
|||||
Cash
– Beginning of Period
|
6,149
|
60,624
|
-
|
|||||||
Cash
– End of Period
|
$
|
1,305
|
$
|
3,752
|
$
|
1,305
|
For the Period
|
||||||||||
For
the Three
|
For
the Three
|
December
15, 2005
|
||||||||
Months
Ended
|
Months
Ended
|
(Inception)
to
|
||||||||
September
30,
|
September
30,
|
September
30,
|
||||||||
2008
|
2007
|
2008
|
||||||||
Supplemental
Cash Flow Information:
|
||||||||||
Cash
Paid for Interest
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Cash
Paid for Income Taxes
|
$
|
-
|
$
|
-
|
$
|
500
|
||||
Supplemental
Non-Cash Financing Activities:
|
||||||||||
Subscription
Receivable on Sale of
|
||||||||||
Common
Stock
|
$
|
-
|
$
|
-
|
$
|
451
|
||||
Common
Stock Warrants Issued as
|
||||||||||
Deferred
Finance Costs
|
$
|
-
|
$
|
-
|
$
|
9,641
|
||||
Debt
Discount Attributable to Common
|
||||||||||
Stock
Warrants on Notes Payable
|
$
|
-
|
$
|
-
|
$
|
43,246
|
||||
Note
Payable Issued as Payment of
|
||||||||||
Deferred
Finance Costs
|
$
|
-
|
$
|
-
|
$
|
14,960
|
||||
Exchange
Related Party Debt to
|
||||||||||
Contributed
Capital
|
$
|
-
|
$
|
-
|
$
|
136,572
|
o |
being
a development stage company with very limited operating
history;
|
31.1 |
Certification
of President and Chief Executive Officer and Interim Chief Financial
Officer (one person) pursuant to Rule 13a-14(a)/15d-14(a) of the
Exchange
Act
|
32.1 |
Certification
of President and Chief Executive Officer and Interim Chief Financial
Officer (one person) pursuant to 18 U.S.C. Section 1350 as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
APRECIA,
INC.
|
|
November
18, 2008
|
By:
/s/Isidore Sobkowski
|
Isidore
Sobkowski, President, Chief Executive Officer
|
|
And
Interim Chief Financial Officer
|