UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2011
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE TRANSITION PERIOD FROM _________ TO _________
COMMISSION FILE NUMBER: 333-172417
NEUTRA CORP.
------------
(Exact name of registrant as specified in its charter)
Florida 27-4505461
------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Ms. Sarah Keck
3572 Shady Brook Lane, Sarasota, FL 34243
941-544-7035
-----------------------------------------
(Registrant's telephone number, including area code)
Not Applicable
--------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of "large accelerated filer," "accelerated filer"
and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer [ ] Accelerated filer [ ]
Non-accelerated filer [ ] Smaller reporting company [X]
(Do not check if smaller reporting company)
Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act) Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date. 9,000,000 shares of
common stock are issued and outstanding as of April 30, 2011.
TABLE OF CONTENTS
Page
No.
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets .................................................... 4
Statements of Operations .......................................... 5
Statements of Stockholders' Equity (Deficiency) ................... 6
Statements of Cash Flows........................................... 7
Notes to Financial Statements (unaudited) ......................... 8
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations. .......................................... 11
Item 3. Quantitative and Qualitative Disclosures About Market Risk. ....... 11
Item 4T. Controls and Procedures. .......................................... 12
PART II - OTHER INFORMATION
Item 1. Legal Proceedings. ................................................ 14
Item 1A. Risk Factors. ..................................................... 14
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. ...... 14
Item 3. Defaults Upon Senior Securities. .................................. 14
Item 4. Submission of Matters to a Vote of Security Holders. .............. 14
Item 5. Other Information. ................................................ 14
Item 6. Exhibits. ......................................................... 14
2
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this report contain or may contain forward-looking
statements. These statements, identified by words such as "plan", "anticipate",
"believe", "estimate", "should", "expect" and similar expressions include our
expectations and objectives regarding our future financial position, operating
results and business strategy. These statements are subject to known and unknown
risks, uncertainties and other factors which may cause actual results,
performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by such forward - looking
statements. These forward-looking statements were based on various factors and
were derived utilizing numerous assumptions and other factors that could cause
our actual results to differ materially from those in the forward-looking
statements. These factors include, but are not limited to, our ability to secure
suitable financing to continue with our existing business or change our business
and conclude a merger, acquisition or combination with a business prospect,
economic, political and market conditions and fluctuations, government and
industry regulation, interest rate risk, U.S. and global competition, and other
factors. Most of these factors are difficult to predict accurately and are
generally beyond our control. You should consider the areas of risk described in
connection with any forward-looking statements that may be made herein. Readers
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date of this report. Readers should carefully review
this report in its entirety, including but not limited to our financial
statements and the notes thereto and the risks described in our Annual Report on
Form 10-K for the fiscal year ended January 31, 2011. We advise you to carefully
review the reports and documents we file from time to time with the Securities
and Exchange Commission (the "SEC"), particularly our quarterly reports on Form
10-Q and our current reports on Form 8-K. Except for our ongoing obligations to
disclose material information under the Federal securities laws, we undertake no
obligation to release publicly any revisions to any forward-looking statements,
to report events or to report the occurrence of unanticipated events.
OTHER PERTINENT INFORMATION
When used in this report, the terms, "we," the "Company," "our," and "us" refers
to Neutra Corp. a Florida corporation.
3
NEUTRA CORP.
(A Development Stage Company)
Balance Sheets
ASSETS
------
AS OF
-------------------------
APRIL 30, JANUARY 31,
2011 2011
(UNAUDITED) (AUDITED)
---------- ----------
CURRENT ASSETS
Cash and cash equivalents ........................ $ 6,335 $ 8,900
---------- ----------
Total current assets ........................... 6,335 8,900
---------- ----------
---------- ----------
TOTAL ASSETS ................................... $ 6,335 $ 8,900
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Accounts payable & Accrued liabilities ........... $ 600 $ 2,500
---------- ----------
Total liabilities .............................. 600 2,500
========== ==========
STOCKHOLDERS' EQUITY
Capital Stock (Note 4)
Authorized:
100,000,000 common shares, $0.0001 par value
Issued and outstanding shares:
9,000,000 ...................................... $ 900 $ 900
Additional paid-in capital ....................... 8,100 8,100
Deficit accumulated during the development stage . (3,265) (2,600)
---------- ----------
Total Stockholders' Equity ..................... 5,735 6,400
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ..... $ 6,335 $ 8,900
========== ==========
The accompanying notes are an integral part of the financial statements.
4
NEUTRA CORP.
(A Development Stage Company)
Statement of Operations
FOR THE PERIOD
THREE MONTHS FROM INCEPTION
ENDED JANUARY 11, 2011
APRIL 30, 2011 TO
(UNAUDITED) APRIL 30, 2011
-------------- ----------------
REVENUES .................................... $ - $ -
-------------- ---------------
EXPENSES
General & Administrative .................. 65 165
Professional Fees ......................... $ 500 $ 3,100
-------------- ---------------
Loss Before Income Taxes .................... $ (565) $ (3,265)
-------------- ---------------
Provision for Income Taxes .................. - -
-------------- ---------------
Net Loss .................................... $ (565) $ (3,265)
============== ===============
PER SHARE DATA:
Basic and diluted loss per common share ... $ - $ -
============== ===============
Basic and diluted weighted average
common shares outstanding ................ 9,000,000 9,000,000
============== ===============
The accompanying notes are an integral part of the financial statements.
5
NEUTRA CORP.
(A Development Stage Company)
Statement of Stockholders' Equity (Deficiency)
Deficit
Accumulated
Common Stock Additional During the
----------------- Paid-in Development
Shares Amount Capital Stage Total
--------- ------ ---------- ----------- ---------
Inception - January 11, 2011 ..... -- $ -- $ -- $ -- $ --
Common shares issued to Founder
for cash at $0.001 per share
(par value $0.0001) on
January 11, 2011 ............... 9,000,000 900 8,100 -- 9,000
Loss for the period from
inception on January 11, 2011 to
January 31, 2011 ............... -- -- -- (2,600) (2,600)
--------- ------ ---------- ---------- --------
Balance - January 31, 2011 ....... 9,000,000 900 8,100 (2,600) 6,400
========= ====== ========== ========== ========
Loss for the quarter ended
April 30, 2011 ................. -- -- -- (665) (3,265)
--------- ------ ---------- ---------- --------
Balance - April 30, 2011 ......... 9,000,000 900 8,100 (3,265) 5,735
========= ====== ========== ========== ========
The accompanying notes are an integral part of the financial statements.
6
NEUTRA CORP.
(A Development Stage Company)
Statement of Cash Flow
FOR THE PERIOD
FROM INCEPTION
THREE MONTHS JANUARY 11, 2011
ENDED TO
APRIL 30, 2011 APRIL 30, 2011
-------------- ----------------
OPERATING ACTIVITIES
Net Loss .................................. $ (565) $ (3,265)
-------------- ---------------
Changes in Operating Assets and
Liabilities:
Increase (decrease) in accounts payable
and accrued liabilities ................ (2,000) 600
-------------- ---------------
Net cash used in operating activities ..... (2,565) (2,665)
-------------- ---------------
FINANCING ACTIVITIES
Capital Stock ............................. -- 900
Paid In Capital ........................... -- 8,100
-------------- ---------------
Net cash provided by financing activities . -- 9,000
-------------- ---------------
INCREASE IN CASH AND CASH EQUIVALENTS ....... (2,565) 6,335
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD ..................................... 8,900 --
-------------- ---------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD .. $ 6,335 $ 6,335
============== ===============
Supplemental Cash Flow Disclosures:
Cash paid for:
Interest expense ........................ $ -- $ --
============== ===============
Income taxes ............................ $ -- $ --
============== ===============
The accompanying notes are an integral part of the financial statements.
7
Neutra Corp.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(April 30, 2011)
NOTE 1. GENERAL ORGANIZATION AND BUSINESS
We are a development stage company and were incorporated in the State of Florida
on January 11, 2011, as a for-profit company, and an established fiscal year end
of January 31. We intend to market and sell nutraceutical supplement products to
health practitioners. Nutraceutical natural medicine is an alternative system
that focuses on natural remedies and the bodies vital ability to heal and
maintain itself. We intend to entrust the manufacturing to a nutraceutical
contractor to private label all of our products and to sell them under our
unique brand. To date, we have not approached a contractor to have any of our
intended private label brand supplement products.
Our intended strategy is to build brand recognition by providing the healthcare
practitioners with education and support and in turn the healthcare practitioner
with education and support will hopefully recommend our products to their
patients. We intend to accomplish this education and support process providing
regular and frequent access to educational tools, such as webinars and live
seminars. Although practitioners may have several supplement brands in their
dispensary when it comes to the moment of choice for that difficult patient and
others, we are hoping that our strategy of providing good service and
educational support they choose us.
We have not generated any revenue to date and our activities have been limited
to developing the Business Plan. We will not have the necessary capital to
develop our Business Plan until we are able to secure Financing. Neutra Corp. is
in the early stage of developing its business plan. The Company does not have
any products, customers and has not generated any revenues. The Company must
complete the business plan, develop the product and attract customers before it
can start generating revenues.
Through April 30, 2011 the Company was in the development stage and has not
carried on any significant operations and has not generated any revenues. The
Company has incurred losses since inception aggregating $3,265. The accompanying
financial statements have been prepared assuming that the Company will continue
as a going concern. These matters, among others, raise substantial doubt about
the ability of the Company to continue as a going concern. These financial
statements do not include any adjustments to the amounts and classification of
assets and liabilities that may be necessary should the Company be unable to
continue as a going concern.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES
Accounting Basis
----------------
The Company is currently a development stage enterprise reporting under the
provisions of Accounting Standards Codification ("ASC") 915 "Development Stage
Enties", which was previously Statement of Financial Accounting Standards
("SFAS") No. 7.
8
Neutra Corp.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(April 30, 2011)
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles in the United States of America
for interim financial information and with the instructions to Form 10-Q and
Regulation S-X. Accordingly, the financial statements do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments
considered necessary for a fair presentation have been included and such
statements are of a normal recurring nature. These financial statements should
be read in conjunction with the financial statements for the year ended January
30, 2011 and notes thereto and other pertinent information contained in our Form
S-1/A the Company has filed with the Securities and Exchange Commission
(the"SEC"). The results of operations for the three-month period ending April
30, 2011 are not necessarily indicative of the results for the full fiscal year
ending January 31, 2012.
Cash and Cash Equivalents
-------------------------
For the purpose of the financial statements cash equivalents include all highly
liquid investments with maturity of three months or less.
Earnings (Loss) per Share
-------------------------
The basic earnings (loss) per share are calculated by dividing the Company's net
income available to common shareholders by the weighted average number of common
shares outstanding during the year. The diluted earnings (loss) per share are
calculated by dividing the Company's net income (loss) available to common
Shareholders by the diluted weighted average number of shares outstanding during
the year. The diluted weighted average number of shares outstanding is the basic
weighted number of shares adjusted as of the first of the year for any
potentially dilutive debt or equity. There are no diluted shares outstanding for
any periods reported.
Dividends
---------
The Company has not adopted any policy regarding payment of dividends. No
dividends have been paid during the periods shown, and none are contemplated in
the near future.
Income Taxes
------------
The Company adopted FASB ASC 740, Income Taxes, at its inception deferred tax
assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of
existing assets and liabilities and their respective tax bases. Deferred tax
assets, including tax loss and credit carryforwards, and liabilities are
measured using enacted tax rates expected to apply to taxable income in the
years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax
rates is recognized in income in the period that includes the enactment date.
9
Neutra Corp.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(April 30, 2011)
Deferred income tax expense represents the change during the period in the
deferred tax assets and deferred tax liabilities. The components of the deferred
tax assets and liabilities are individually classified as current and
non-current based on their characteristics. Deferred tax assets are reduced by a
valuation allowance when, in the opinion of management, it is more likely than
not that some portion or all of the deferred tax assets will not be realized. No
deferred tax assets or liabilities were recognized as of April 30, 2011.
Advertising
-----------
The Company will expense advertising as incurred. The advertising since
inception has been $0.
Use of Estimates
----------------
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates.
Revenue and Cost Recognition
----------------------------
The Company has no current source of revenue; therefore the Company has not yet
adopted any policy regarding the recognition of revenue or cost.
Property
--------
The company does not own any real estate or other properties. The company's
office is located 3572 Shady Brook Lane, Sarasota, FL 34243. Our contact number
is 941 544 7035. The business office is located at the home of Sarah Keck, the
CEO of the company at no charge to the company.
Recently Issued Accounting Pronouncements
-----------------------------------------
The Company has adopted all recently issued accounting pronouncements. The
adoption of the accounting pronouncements, including those not yet effective, is
not anticipated to have a material effect on the financial position or results
of operations of the Company.
NOTE 3. SUBSEQUENT EVENTS
We have evaluated events and transactions that occurred subsequent to April 30,
2011 through the date the financial statements were available to be issued, for
potential recognition or disclosure in the accompanying financial statements.
Other than the disclosures above, we did not identify any events or transactions
that should be recognized or disclosed in the accompanying financial statements.
10
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATION
Overview
Neutra Corp. is a development stage company and was incorporated in Florida on
January 11, 2011 to market and sell nutraceutical supplement products to health
practitioners. Nutraceutical natural medicine is an alternative system that
focuses on natural remedies and the bodies vital ability to heal and maintain
itself. We intend to entrust the manufacturing to a nutraceutical contractor to
private label all of our products and to sell them under our unique brand. To
date, we have not approached a contractor to have any of our intended private
label brand supplement products. We have no operations and in accordance with
SFAS #7 is considered to be in the development stage.
Results of Operations
---------------------
The following discussion should be read in conjunction with the condensed
financial statements and segment data and in conjunction with the Company's S-1
and amended S-1/A's. Results or interim periods may not be indicative of results
for the full year.
During the three months of the fiscal year 2012, the Company was focused on
preparing the documentation required to be filed with the Securities and
Exchange Commission (SEC) and with the Financial Industry Regulatory Authority
(FINRA). On February 24, 2011 the Company filed a Registration Form S-1 and also
filed S-1/A Amendments on April 4, 2011 and April 11, 2011 with the SEC.
Results of Operations
The Company did not generate any revenue during the three months ended April 30,
2011.
Total expenses the three (3) months ending April 30, 2011 were $565 resulting in
an operating loss for the period of $565. Basic net loss per share amounting to
$.00 for the three (3) months ending April 30, 2011.
General and Administrative expenses consisted primarily of filing and
professional fees for the three (3) months ending April 30, 2011 and were $565.
Liquidity and Capital Resources
-------------------------------
At April 30, 2011 we had working capital of $5,735 consisting of cash on hand of
$6,335 as compared to working capital of $6,400 at January 31, 2011 and cash of
$8,900.
Net cash used in operating activities for the three months ended April 30, 2011
was $2,565 as compared to $2,665 for the period from inception on January 11,
2011 through April 30, 2011.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not applicable to a smaller reporting company.
11
ITEM 4T. CONTROLS AND PROCEDURES
Management's Report On Internal Control Over Financial Reporting
----------------------------------------------------------------
Our management is responsible for establishing and maintaining adequate internal
control over financial reporting. Internal control over financial reporting is
defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange
Act of 1934 as a process designed by, or under the supervision of, the company's
principal executive and principal financial officers and effected by the
company's board of directors, management and other personnel, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
accounting principles generally accepted in the United States of America and
includes those policies and procedures that:
- Pertain to the maintenance of records that in reasonable detail accurately
and fairly reflect the transactions and dispositions of the assets of the
company;
- Provide reasonable assurance that transactions are recorded as necessary
to permit preparation of financial statements in accordance with
accounting principles generally accepted in the United States of America
and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company;
and
- Provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the company's assets that
could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting
may not prevent or detect misstatements. Projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate. All internal control systems,
no matter how well designed, have inherent limitations. Therefore, even those
systems determined to be effective can provide only reasonable assurance with
respect to financial statement preparation and presentation. Because of the
inherent limitations of internal control, there is a risk that material
misstatements may not be prevented or detected on a timely basis by internal
control over financial reporting. However, these inherent limitations are known
features of the financial reporting process. Therefore, it is possible to design
into the process safeguards to reduce, though not eliminate, this risk.
As of April 30, 2011 management assessed the effectiveness of our internal
control over financial reporting based on the criteria for effective internal
control over financial reporting established in Internal Control--Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission ("COSO") and SEC guidance on conducting such assessments. Based on
that evaluation, they concluded that, during the period covered by this report,
such internal controls and procedures were not effective to detect the
inappropriate application of US GAAP rules as more fully described below. This
was due to deficiencies that existed in the design or operation of our internal
controls over financial reporting that adversely affected our internal controls
and that may be considered to be material weaknesses.
12
The matters involving internal controls and procedures that our management
considered to be material weaknesses under the standards of the Public Company
Accounting Oversight Board were: (1) lack of a functioning audit committee due
to a lack of a majority of independent members and a lack of a majority of
outside directors on our board of directors, resulting in ineffective oversight
in the establishment and monitoring of required internal controls and
procedures; (2) inadequate segregation of duties consistent with control
objectives; and (3) ineffective controls over period end financial disclosure
and reporting processes. The aforementioned material weaknesses were identified
by our Chief Executive Officer in connection with the review of our financial
statements as of April 30, 2011.
Management believes that the material weaknesses set forth in items (2) and (3)
above did not have an effect on our financial results. However, management
believes that the lack of a functioning audit committee and the lack of a
majority of outside directors on our board of directors results in ineffective
oversight in the establishment and monitoring of required internal controls and
procedures, which could result in a material misstatement in our financial
statements in future periods.
Management's Remediation Initiatives
------------------------------------
In an effort to remediate the identified material weaknesses and other
deficiencies and enhance our internal controls, we have initiated, or plan to
initiate, the following series of measures:
We will create a position to segregate duties consistent with control objectives
and will increase our personnel resources and technical accounting expertise
within the accounting function when funds are available to us. And, we plan to
appoint one or more outside directors to our board of directors who shall be
appointed to an audit committee resulting in a fully functioning audit committee
who will undertake the oversight in the establishment and monitoring of required
internal controls and procedures such as reviewing and approving estimates and
assumptions made by management when funds are available to us.
Management believes that the appointment of one or more outside directors, who
shall be appointed to a fully functioning audit committee, will remedy the lack
of a functioning audit committee and a lack of a majority of outside directors
on our Board.
We anticipate that these initiatives will be at least partially, if not fully,
implemented by December 31, 2011. Additionally, we plan to test our updated
controls and remediate our deficiencies by April 30, 2012.
Changes in internal controls over financial reporting
-----------------------------------------------------
There was no change in our internal controls over financial reporting that
occurred during the period covered by this report, which has materially
affected, or is reasonably likely to materially affect, our internal controls
over financial reporting.
13
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
None.
ITEM 1A. RISK FACTORS.
Not applicable to a smaller reporting company.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION.
None.
ITEM 6. EXHIBITS.
31.1 Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive
officer
31.2 Rule 13(a)-14(a)/15(d)-14(a) Certification of principal financial and
accounting officer
32.1 Section 1350 Certification of principal executive officer and principal
financial and accounting officer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Neutra Corp.
Date: May 20, 2011 BY: /s/ Sarah Keck
------------------
Sarah Keck
President, Secretary, Treasurer,
Principal Executive Officer,
Principal Financial and Accounting
Officer and Sole Director
14