This quarterly report contains forward-looking statements. These statements
relate to future events or our future financial performance. In some cases, you
can identify forward-looking statements by terminology such as "may", "should",
"expects", "plans", "anticipates", "believes", "estimates", "predicts",
"potential" or "continue" or the negative of these terms or other comparable
terminology. These statements are only predictions and involve known and unknown
risks, uncertainties and other factors that may cause our or our industry's
actual results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements.
Although we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, levels of
activity, performance or achievements. Except as required by applicable law
including the securities laws of the United States, we do not intend to update
any of the forward-looking statements to conform these statements to actual
results.
Unless otherwise specified our financial statements are expressed in United
States Dollars (US$) and are prepared in accordance with United States generally
accepted accounting principles.
In this quarterly report, unless otherwise specified, all dollar amounts are
expressed in United States dollars and all references to "common shares" refer
to the common shares in our capital stock.
Overview
3AM TECHNOLOGIES, INC. ("3AM Technologies", "we", or "the Company") was
incorporated in the State of Nevada as a for-profit Company on March 13, 2014.
We are a development-stage Company which intends to be in the business of
sourcing products, design and manufacturing services for North American
retailers, distributors and OEM (original equipment manufacturing) of products
that include cables and printed circuit boards. We have signed a letter of
intent to acquire 3AM Enterprises, Inc. which currently operates in that space.
The completion of the acquisition is subject to 3AM Technologies obtaining its
trading symbol and having operating capital satisfactory to 3AM Enterprises.
We intend to continue and grow the existing operations of 3AM Enterprises, Inc.
Our President is a former employee of 3AM Enterprises, Inc. and has extensive
knowledge of the business operations. 3AM Enterprises currently provides its
products and services to a wide range of manufacturers and retailers including
manufacturers of satellite TV receivers and retailers of audio cables. If, for
any reason, we are unable to complete our acquisition of 3AM Enterprises, we
intend to develop a competing business.
We intend to generate revenue by assisting technology manufacturers and
retailers to reduce their costs by sourcing their product design, development
and manufacturing
The Company intends to compete with other similar companies, but aims to develop
a website to promote its services and engage in a more comprehensive marketing
program. 3AM Technologies does not currently have a website. The company
currently relies on direct selling and referrals to source new clients. However,
there can be no assurance that our efforts to expand the marketing effort of 3AM
Technologies will succeed, or that we will be able to successfully market the
proposed website, if developed. We believe that there is significant growth
potential in 3AM Enterprises that can be achieved by expanding the company's
marketing efforts.
While the Company has enough funds to operate now, management believes the
company's best chance for long term growth is to complete the acquisition of 3AM
Enterprises, Inc. and put significant investment into additional marketing.
If we are unable to raise sufficient funds to complete the acquisition of 3AM
Enterprises, this may prevent us from accomplishing a large portion of our
business plan.
Our business office is located at 129 The Queensway, Barrie, ON, Canada L4M 0B1.
Our telephone number is 1-702-446-0810. Our United States and registered
statutory office is located at 2360 Corporate Circle, Suite 400, Henderson, NV
89074-7722.
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Plan of Operation
Our goal is to acquire 3AM Enterprises Inc., which is in the business of
sourcing products, design and manufacturing services for North American
retailers, distributors and OEM (original equipment manufacturing) of products
that includes cables and printed circuit boards. We have signed a letter of
intent to acquire 3AM Enterprises Inc. We intend to generate revenue through the
sale, design and manufacturing sourcing of components and products for North
American retailers OEM technology products. The initial focus of our business
will service retailers of cables and printed circuit boards.
Management expects to invest in ongoing development and expansion of the
Company's services in order to remain competitive.
If we are unable to complete our acquisition of 3AM Enterprises, this may
prevent us from accomplishing our business plan.
Results of Operations
For the Six Months Ended November 30, 2019 and 2018
For the Six For the Six
Months Ended Months Ended
November 30, November 30,
2019 2018
Revenues $ Nil $ Nil
Total operating expenses 10,943 14,060
Net loss (10,943) $ (14,060)
Revenues
For the six months ended November 30, 2019 and November 30, 2018, we generated
no revenues.
Operating Expenses
We incurred total operating expenses of $10,943 for the six months ended
November 30, 2019 compared to $14,060 for the six months ended November 30,
2018, which consisted of general and administrative expenses for both periods.
Our general and administrative expenses were comprised of $14,000 in
professional fees, and $60 in other general and administrative expenses for the
period ended November 30, 2018.
Our general and administrative expenses were comprised of $10,721 in
professional fees, and $222 in other general and administrative expenses for the
period ended November 30, 2019.
Net Loss
We had a net loss of $10,943 for the six months ended November 30, 2019 due to
incurred operating expenses and no revenues.
Our revenue for the six months ended November 30, 2019 was $Nil, and expenses
for the six months ended November 30, 2019 were $10,943, resulting in a net loss
of $10,943.
We had a net loss of $14,060 for the six months ended November 30, 2018 due to
incurred operating expenses and no revenues.
Capital Resources and Liquidity
As of November 30, 2019, we had $1,499 in cash.
Our Company has a minimum cash burn rate of $3,000 per month mainly for legal
and accounting expenses. Our founders have committed to lend the Company
sufficient funds as required to continue operations for the next 6 months. We
hope to raise capital from this offering to continue our operations and start
generate revenues. If our Company does not realize revenues, then our Company
intends to secure additional financing through the sale of its securities,
however, there can be no assurance that our Company will be successful in
selling its securities or the terms will be favorable to our Company.
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Management may decide, based on market conditions, to seek future private
placements if management believes such private placements are in the best
interests of our Company. We believe we will be able to generate advertising
sales revenue within one hundred and twenty (120) days of the launch of our
website.
We estimate that we will need to raise at least $100,000 to develop a first
version of our planned website and fund our planned operations, including public
company reporting costs, for twelve months from the date of the prospectus.
We do not anticipate researching any further products or services nor the
purchase or sale of any significant equipment. We also do not expect any
significant additions to the number of employees other than those noted above.
If we are unable to raise sufficient funds to pay for the development of our
website, this may prevent us from accomplishing our business plan.
Off-balance sheet arrangements
Our Company has no off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect or change on our Company's financial
condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources that are material to investors. The term
"off-balance sheet arrangement" generally means any transaction, agreement or
other contractual arrangement to which an entity unconsolidated with our Company
is a party, under which our Company has (i) any obligation arising under a
guarantee contract, derivative instrument or variable interest; or (ii) a
retained or contingent interest in assets transferred to such entity or similar
arrangement that serves as credit, liquidity or market risk support for such
assets.
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