Notes to the Financial Statements
August 31, 2015
(Unaudited)
1. NATURE
OF OPERATIONS
BEMAX
INC
. (“The Company”) was incorporated in the State of Nevada on November 28, 2012 to engage in the business of
exporting of disposable baby diapers and then distributing them throughout Europe and emerging African markets. The Company is
in the development stage with no revenues and limited operating history.
The
accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America and the rules of the Securities and Exchange commission (“SEC”) and should
be read in connection with the audited financial statements and notes thereto contained in the Company’s K-1 report filed
with the SEC. In the opinion of management, all adjustments consisting of normal recurring adjustments, necessary for a fair presentation
of financial position and the results of operations for the interim periods presented have been reflected herein. The results
of operations for our interim periods are not necessarily indicative of the results to be expected for the full year. Notes to
the financial statements that would substantially duplicate the disclosures in the audited financial statements, for the fiscal
2015, as reported, have been omitted.
The Company
has elected to adopt early application of Accounting Standards Update No. 2014-10,Development Stage Entities (Topic 915): Elimination
of Certain Financial Reporting Requirements; it no longer presents or discloses inception-to-date information and other disclosure
requirements of Topic 915.
NOTE
2 GOING CONCERN
These
financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets
and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred a loss since
inception resulting in an accumulated deficit of $((496,184)) as of August 31, 2015 and further losses are anticipated in the
development of its business raising substantial doubt about the Company’s ability to continue as a going concern. The ability
to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the
necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.
Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from directors and/or
private placement of common stock.
There
is no guarantee that the Company will be able to raise any capital through any type of offering.
NOTE
3 STOCKHOLDERS’ EQUITY
Between
October 14 and 24, 2014, the Company authorized and issued 1,175,000 shares of common stock to various investors, for net proceeds
to the Company of $58,750.
On
June 5, 2015, the Company decided to increase the authorized amount of common shares that can be issued from 70,000,000 to 500,000,000
with the same par value of $0.0001 per share. The Company also declared a Fifty (50) to One (1) forward stock split effective
immediately.
As
of August 31, 2015, there are 500,000,000 common shares at a par value of $0.0001 per share authorized and 258,750,000 issued
and outstanding.
9
BEMAX INC.
Notes
to the Financial Statements
August
31, 2015
(Unaudited)
NOTE 4 RELATED PARTY TRANSACTIONS
The President
of the Company provides management fees and office premises to the Company for a fee of $1,500 per month, the right to which the
President has agreed to assign to the Company until such a time as the Company closes on an Equity or Debt financing of not less
than $750,000. The assigned rights are valued at $1,000 per month for rent and $500 for executive compensation. A total of $13,500
for donated management fees was charged to Accounts Payable) for the period December 1, 2014 through August 31, 2015.
As of
August 31, 2015, there are loans from the majority shareholder and related party totalling $24,736. They were made in order to
assist in meeting general and administrative expenses. These advances are unsecured, due on demand and carry no interest or collateral.
NOTE
5 SUBSEQUENT EVENTS
In Accordance
with SFAS 165 (ASC 855-10) management has reviewed events through September, 2015, the date these financials were available to
be issued and it was determined that there are none to report.
ITEM 2. MANAGEMENT'S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward Looking Statements
This report on Form 10-Q contains
certain forward-looking statements. All statements other than statements of historical fact are "forward-looking statements"
for purposes of these provisions, including any projections of earnings, revenues, or other financial items; any statements of
the plans, strategies, and objectives of management for future operation; any statements concerning proposed new products, services,
or developments; any statements regarding future economic conditions or performance; statements of belief; and any statement of
assumptions underlying any of the foregoing. Such forward-looking statements are subject to inherent risks and uncertainties,
and actual results could differ materially from those anticipated by the forward-looking statements.
Business Overview
Bemax Inc. is new Nevada –based
company focusing on the distribution of disposable baby diapers made in North America and Asia by quality producers to wholesalers
and retailers in Europe and the emerging markets. We are a development stage corporation and have not generated or
realized any revenues from our business operations.
Liquidity and Capital Resources
10
Cash Flows
|
|
|
Three Months
Ended
August 31, 2015
$
|
|
|
Three Months
Ended
August 31, 2014
$
|
|
|
Net Cash Provided By(Used In) Operating Activities
|
|
|
(513
|
)
|
|
|
(2,507
|
)
|
|
Net Cash Used by Investing Activities
|
|
|
-
|
|
|
|
-
|
|
|
Net Cash Provided By(Used In) Financing Activities
|
|
|
-
|
|
|
|
-
|
|
|
CASH AT BEGINNING OF PERIOD
|
|
|
58,137
|
|
|
|
4,000
|
|
|
CASH AT END OF PERIOD
|
|
|
57,624
|
|
|
|
1,493
|
|
Through August 31, 2015, the Company has not carried on any significant operations and had no revenues.
We currently have minimal cash
reserves. To date, the Company has covered operating deficits primarily through loans from the sole director. Accordingly, our
ability to pursue our plan of operations is contingent on our being able to obtain funding for the development, marketing and
commercialization of our products and services. However, as a result of its lack of operating success, the Company may not be
able to raise additional funding to cover operating deficits.
The accompanying financial statements
have been prepared assuming that the Company will continue as a going concern. The Company has accumulated deficit of $496,184
since inception (November 28, 2012) to the period ended August 31, 2015 and is dependent on its ability to raise capital from
shareholders or other sources to sustain operations. However, these conditions raise substantial doubt about the Company's
ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome
of this uncertainty.
Results of Operations for
the Period Ended August 31, 2015
Revenue
Revenue for the period ended
August 31, 2015, and August 31, 2014 were $0
Deferred Revenue
Deferred revenue for the period
ended August 31, 2015 and August 31, 2014 were $507,722 and $0 respectively. Management anticipate deferred revenue will be recognized
within the next six months.
Net Loss
For the period ended August
31, 2015 and August 31, 2014 the Company incurred net losses of $10,113 and $4,807 respectively.
11
Expenses
Our total expenses for the period
ended August 31, 2015 were $10,113 which consisted of general and administrative expenses
Inflation
The amounts presented in the
financial statements do not provide for the effect of inflation on our operations or financial position. The net operating
losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts
that represent replacement costs or by using other inflation adjustments.
Off-Balance Sheet Arrangements
As of August 31, 2015, we had
no off balance sheet transactions that have or are reasonably likely to have a current or future effect on our financial condition,
changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURE ABOUT MARKET RISK
Not applicable.
ITEM 4. CONTROLS AND PROCEDURES
We maintain disclosure controls
and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), that are
designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act
is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules
and forms and that such information is accumulated and communicated to our sole officer, as appropriate to allow timely decisions
regarding required disclosure. We carried out an evaluation, under the supervision and with the participation of our sole officer,
of the effectiveness of the design and operation of our disclosure controls and procedures as of August 31, 2015.
Based on the evaluation of these
disclosure controls and procedures, our Chief Executive and Chief Financial Officer concluded that as of the end of the periods
covered by this report, we have identified the following material weakness of our internal controls: Lack of sufficient accounting
staff which results in a lack of segregation of duties necessary for a good system of internal control.
There were no changes in our
internal control or in other factors during the last fiscal quarter covered by this report that have materially affected, or are
likely to materially affect the Company's internal control over financial reporting
12
PART
II – OTHER INFORMATION
ITEM 1. LEGAL
PROCEEDINGS
Management
is not aware of any legal proceedings contemplated by any governmental authority or any other party against us. None
of our directors, officers or affiliates are (i) a party adverse to us in any legal proceedings, or (ii) have an adverse interest
to us in any legal proceedings. Management is not aware of any other legal proceedings that have been threatened against
us.
ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
10
ITEM
3. DEFAULTS UPON SENIOR SECURITIES
None.