0001213900-13-004482.txt : 20130815 0001213900-13-004482.hdr.sgml : 20130815 20130815142033 ACCESSION NUMBER: 0001213900-13-004482 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20130630 FILED AS OF DATE: 20130815 DATE AS OF CHANGE: 20130815 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FREEBUTTON, INC. CENTRAL INDEX KEY: 0001432290 STANDARD INDUSTRIAL CLASSIFICATION: METAL DOORS, SASH, FRAMES, MOLDING & TRIM [3442] IRS NUMBER: 205982715 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-54009 FILM NUMBER: 131041763 BUSINESS ADDRESS: STREET 1: 545 SECOND STREET, #6 CITY: ENCINITAS STATE: CA ZIP: 92024 BUSINESS PHONE: 760-487-7772 MAIL ADDRESS: STREET 1: 545 SECOND STREET, #6 CITY: ENCINITAS STATE: CA ZIP: 92024 FORMER COMPANY: FORMER CONFORMED NAME: Secure Window Blinds, Inc. DATE OF NAME CHANGE: 20080414 10-Q 1 f10q0613_freebutton.htm QUARTERLY REPORT f10q0613_freebutton.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2013
or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to __________________

Commission File Number 000-54009

FREEBUTTON, INC.
(Exact name of registrant as specified in its charter)

Nevada
 
20-5982715
(State or other jurisdiction of
 
(I.R.S. Employer
incorporation or organization)
 
Identification No.)

545 Second Street, #6
Encinitas, CA 92024
(Address of principal executive offices) (Zip Code)

(760) 487-7772
(Registrant’s telephone number, including area code)

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 o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer o
 
Accelerated filer o
 
       
Non-accelerated filer o
(Do not check if a smaller reporting company)
Smaller reporting company x
 

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act). Yes o No x
 
As of August 9, 2013, the registrant had 33,544,260 shares of common stock, $0.001 par value, outstanding.

 
 

 
 
FREEBUTTON, INC.

QUARTERLY REPORT ON FORM 10-Q
June 30, 2013

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION  
     
Item 1.
Financial Statements
3
     
Item 2.
Management Discussion and Analysis of Financial Condition and Results of operations
4
     
Item 3.  
Qualitative and Quantitative Disclosures About Market Risk
6
     
Item 4.
Controls And Procedures
6
     
Part II. OTHER INFORMATION
7
     
Item 1.
Legal Proceedings
7
     
Item 1A.  
Risk Factors
7
     
Item 2.
Unregistered Sales of Equity Securities and Use Of Proceeds
7
     
Item 3.
Defaults Upon Senior Securities
8
     
Item 4.
Mine Safety Disclosures
8
     
Item 5.
Other Information
8
     
Item 6.
Exhibits
8
 
 
 

 

Use of Certain Defined Terms

Except as otherwise indicated by the context, references in this report to “we,” “us,” “our,” “our Company,” or “the Company” are to the combined business of FreeButton, Inc.

Forward-Looking Statements

This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements discuss matters that are not historical facts. Because they discuss future events or conditions, forward-looking statements may include words such as “anticipate,” “believe,” “estimate,” “intend,” “could,” “should,” “would,” “may,” “seek,” “plan,” “might,” “will,” “expect,” “anticipate,” “predict,” “project,” “forecast,” “potential,” “continue” negatives thereof or similar expressions. Forward-looking statements speak only as of the date they are made, are based on various underlying assumptions and current expectations about the future and are not guarantees. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance or achievement to be materially different from the results of operations or plans expressed or implied by such forward-looking statements.

We cannot predict all of the risks and uncertainties. Accordingly, such information should not be regarded as representations that the results or conditions described in such statements or that our objectives and plans will be achieved and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. These forward-looking statements are found at various places throughout this report and include information concerning possible or assumed future results of our operations, including statements about potential acquisition or merger targets; business strategies; future cash flows; financing plans; plans and objectives of management; any other statements regarding future acquisitions, future cash needs, future operations, business plans and future financial results, and any other statements that are not historical facts.

These forward-looking statements represent our intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors. Many of those factors are outside of our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of the report. All subsequent written and oral forward-looking statements concerning other matters addressed in this report and attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this report.

Except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise.
 
 
 

 
 
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements

FREEBUTTON, INC.
(Formerly Secured Window Blinds, Inc.)
 (A Development Stage Company)

FINANCIAL STATEMENTS
(Unaudited)
June 30, 2013
 
BALANCE SHEETS
F-1
   
STATEMENTS OF OPERATIONS
F-2
   
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
F-3
   
STATEMENTS OF CASH FLOWS
F-4
   
NOTES TO FINANCIAL STATEMENTS
F-5
 
 
3

 
 
FREEBUTTON, INC.
(Formerly Secured Window Blinds, Inc.)
(A Development Stage Company)

BALANCE SHEETS
 
   
June 30,
2013
   
December 31,
2012
 
   
(Unaudited)
       
ASSETS
 
             
CURRENT ASSETS
           
     Cash
  $ 2,615     $ 21,674  
     Prepaid
    1,344       -  
                 
TOTAL CURRENT ASSETS
    3,959       -  
                 
OFFICE EQUIPMENT, NET
    3,507       3,914  
WEB DEVELOPMENT COSTS
    18,845       18,845  
                 
TOTAL  ASSETS
  $ 26,311     $ 44,433  
   
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
 
                 
CURRENT LIABILITIES
               
Accounts payable and accrued liabilities
  $ 23,953     $ 16,343  
     Due to related party (Note 4)
    4,072       4,072  
     Promissory Note (Note 5)
    252,000       145,000  
                 
 TOTAL CURRENT LIABILITIES
    280,025       165,415  
                 
                 
                 
STOCKHOLDERS’ EQUITY (DEFICIT)
               
Capital stock (Note 3)
               
     Authorized
               
        75,000,000 shares of common stock, $0.001 par value,
               
Issued and outstanding
               
        33,407,000 shares of common stock (December 31, 2012 –33,300,000 )
    33,407       33,300  
     Additional paid-in capital
    76,265       46,942  
Deficit accumulated during the development stage
    (363,386 )     (201,224 )
                 
TOTAL  STOCKHOLDERS’ EQUITY (DEFICIT)
    (253,714 )     (120,982 )
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
  $ 26,311     $ 44,433  
 
 
Going Concern (Note 1)
 
The accompanying notes are an integral part of these financial statements.
 
 
F-1

 
 
FREEBUTTON, INC.
(A Development Stage Company)

STATEMENTS OF OPERATIONS
(Unaudited)
 
   
Three Months Ended
June 30
   
 
Six Months Ended
June 30
   
November 27, 2006 (inception) to June 30,
 
   
2013
   
2012
   
2013
   
2012
   
2013
 
                               
REVENUE
  $ -     $ -     $ -     $ -     $ -  
                                         
EXPENSES
                                       
     Office and general
  $ 33,440     $ 1,022     $ 56,276     $ 1,156     $ 94,005  
     Management fees
    22,500       -       55,500       -       100,500  
     Marketing expenses
    5,790       -       16,357       -       27,242  
     Professional fees
    4,488       3,862       26,312       8,362       139,535  
                                         
 TOTAL EXPENSES
    66,218       4,884       154,445       9,518       361,282  
                                         
NET OPERATING LOSS:
    (66,218 )     (4,884 )     (154,445 )     (9,518 )     (361,282 )
                                         
OTHER INCOME (EXPENSES)
                                       
     Exchange loss
    -       -       -       -       (620 )
     Loan interest
    (4,511 )     -       (7,717 )     -       (11,484 )
     Gain (loss) on debt settlement
    -       10,000       -       10,000       10,000  
                                         
 TOTAL OTHER INCOME (EXPENSES)
    (4,511 )     10,000       (7,717 )     10,000       (2,104 )
                                         
NET LOSS FOR THE YEAR
  $ (70,729 )   $ 5,116     $ (162,162 )   $ 482     $ (363,386 )
                                         
BASIC LOSS PER COMMON SHARE
  $ (0.00 )   $ 0.00     $ (0.00 )     0.00          
                                         
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-BASIC
      33,407,000      
159,300,000
     
33,373,895
     
159,300,000
         
 
The accompanying notes are an integral part of these financial statements.
 
 
F-2

 
 
FREEBUTTON, INC.
(Formerly Secured Window Blinds, Inc.)
(A Development Stage Company)

STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
FOR THE PERIOD FROM NOVEMBER 27, 2006 (INCEPTION) TO JUNE 30, 2013
(Unaudited)
 
   
Common Stock
   
Additional
   
Share
   
  Deficit Accumulated During the
       
   
Number of
shares
   
Amount
   
Paid-in
Capital
   
Subscription Receivable
   
Development
Stage
   
Total
 
Common shares issued for cash –
at $0.0000666 per share, December 15, 2006
      105,000,000     $ 105,000     $ (98,000               $  7,000  
Share subscription receivable
    -       -               (7,000 )           (7,000 )
                                               
Net loss for the year ended December 31, 2006
    -       -       -       -       (953 )     (953 )
Balance, December 31, 2006
    105,000,000       105,000       (98,000     (7,000     (953 )     (953
Subscription received, March 5, 2007
    -       -       -       7,000       -       7,000  
                                                 
Net loss for the year ended December 31, 2007
    -       -       -       -       (7,739 )     (7,739 )
Balance, December 31, 2007
    105,000,000       105,000       (98,000 )     -       (8,692 )     (1,692 )
                                                 
Common shares issued for cash –
at $0.001666 per share
    9,300,000       9,300       6,200       -       -       15,500  
Common shares issued for cash –
at $0.0000666 per share
    45,000,000       45,000       (42,000 )     -       -       3,000  
                                                 
Net loss for the year ended December 31, 2008
    -       -       -       -       (16,944 )     (16,944 )
Balance, December 31, 2008
    159,300,000       159,300       (133,800 )     -       (25,636 )     (136 )
Balance, December 31, 2009
    159,300,000       159,300       (133,800 )     -       (46,584 )     (21,084 )
Net loss for the year ended December 31, 2010
    -       -       -       -       (19,650 )     (19,650 )
Balance, December 31, 2010
    159,300,000       159,300       (133,800 )     -       (66,234 )     (40,734 )
Net loss for the year ended December 31, 2011
    -       -       -       -       (18,249 )     (18,249 )
Balance, December 31, 2011
    159,300,000       159,300       (133,800 )             (84,483 )     (58,983 )
                                                 
Debt forgiveness by related party (Note 3)
    -       -       54,742       -       -       54,742  
Shares cancelled – August 15, 2012
                                               
(Note 3)
    (126,000,000 )     (126,000 )     126,000       -       -       -  
                                                 
Net loss for the period ended December 31, 2012
    -       -       -       -       (116,741 )     (116,741 )
Balance, December 31, 2012
    33,300,000       33,300       46,942       -       (201,224 )     (120,982 )
                                                 
Common shares issued for cash at $0.25
    100,000       100       24,900               -       25,000  
Common shares issued for services (Note 3)
    7,000       7       4,423       -       -       4,430  
                                                 
Net loss for period ended June 30, 2013
    -       -       -       -      
(162,162
)    
(162,162
)
                                                 
Balance, June 30, 2013 (Unaudited)
    33,407,000     $ 33,407     $ 76,265     $ -     $
(363,386
)   $
(253,714
)
 
The accompanying notes are an integral part of these financial statements.
 
 
F-3

 
 
All share amounts have been restated to reflect the 15:1 forward split on August 22, 2012.

FREEBUTTON, INC.
(Formerly Secured Window Blinds, Inc.)
(A Development Stage Company)

 STATEMENTS OF CASH FLOWS
(Unaudited)
 
   
 
 
Six months
 ended
June 30,
 2013
   
 
 
Six months
 ended
June 30,
2012
   
 
November 27, 2006 (date of inception) to June 30,
 2013
 
                   
OPERATING ACTIVITIES
                 
Net loss for the period
  $ (162,162 )   $ 482     $ (363,386 )
Adjustments to reconcile net loss to net cash used in operating activities:
                       
      Gain on debt settlement
    -       (10,000 )     (10,000 )
      Depreciation expenses
    407       -       615  
      Common stock issued for service
    4,430       -       4,430  
  Changes in operating assets and liabilities:
                       
   Increase (decrease) in Accounts payables and accrued liabilities
    7,610       (18,884 )     33,953  
      Prepaid expenses
    (1,344 )     -       (1,344 )
                         
NET CASH USED IN OPERATING ACTIVITIES
    (151,059 )     (28,402 )     (335,732 )
                         
INVESTING ACTIVITIES
                       
  Furniture and Equipment
    -       -       (4,122 )
  Web development costs and acquisitions
    -       -       (18,845 )
                         
NET CASH USED IN INVESTING ACTIVITIES
    -       -       (22,967 )
                         
CASH FLOW FROM FINANCING ACTIVITIES
                       
Proceeds on sale of common stock
    25,000       -       50,500  
   Proceed from issuance of convertible promissory note
    107,000       -       252,000  
   Proceeds from  related parties
    -       28,400       58,814  
                         
NET CASH PROVIDED BY FINANCING ACTIVITIES
    132,000       28,400       361,314  
                         
NET INCREASE (DECREASE) IN CASH
    (19,059     (2 )     2,615  
                         
CASH, BEGINNING
    21,674       2       -  
                         
CASH, ENDING
  $ 2,615     $ -     $ 2,615  
                         
SUPPLEMENTAL CASH FLOW INFORMATION
                       
Cash paid during the period for:
                       
Interest
  $ -     $ -     $ -  
                         
Income taxes
  $ -     $ -     $ -  
                         
Non-cash investing and financing activities
                       
Common stock issued for service
  $ 4,430     $ -       4,430  
Debt forgiveness of related party
  $ -     $ 54,742     $ 54,742  
 
The accompanying notes are an integral part of these financial statements.
 
 
F-4

 
 
FREEBUTTON, INC.
(Formerly Secured Window Blinds, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 2013
 
NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION

The Company was incorporated on November 27, 2006 under the laws of the State of Nevada and extra-provincially registered under the laws of the Province of Ontario on February 2, 2007. On September 28, 2012, the Company with a majority of the shareholders and directors changed its name from Secured Window Blinds, Inc. to Freebutton, Inc.

Freebutton, Inc. has ceased the business of offering window blind system products and now intends to operate, through “TheFreeButton.com”, as an instant-win promotion online site where users can click the “Free Button” to instantly win the products offered on the Company’s homepage without entering their email.

Going concern
To date the Company has generated no revenues from its business operations and has incurred operating losses since inception of $363,386.  As at June 30, 2013, the Company has a working capital deficit of $276,066.  The Company requires additional funding to meet its ongoing obligations and to fund anticipated operating losses. The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company’s ability to continue as a going concern. The Company intends to continue to fund its business by way of private placements and advances from related parties as may be required. As of June 30, 2013 the Company has issued 150,000,000 founders shares at $0.0000667 per share for net proceeds of $10,000 to the Company and 9,300,000 private placement shares at $0.001666 per share for net proceeds of $15,500 and 100,000 private placement shares at $0.025 per share for net proceeds of $25,000 to the Company. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Unaudited Financial Statements
The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles for financial information and with the instructions to Form 10-Q.  They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements.  However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the year ended December 31, 2012 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.  The unaudited financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.

Segmented Reporting
FSAB ASC 280, “Disclosure about Segments of an Enterprise and Related Information”, changed the way public companies report information about segments of their business in their quarterly reports issued to shareholders.  It also requires entity-wide disclosures about the products and services the entity provides, the material countries in which it holds assets and reports revenues and its major customers.

Comprehensive Loss
“Reporting Comprehensive Income,” establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at June 30, 2013, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.

 
F-5

 

FREEBUTTON, INC.
(Formerly Secured Window Blinds, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 2013

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Use of Estimates and Assumptions
Preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain 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 revenues and expenses during the period.  Accordingly, actual results could differ from those estimates.

Financial Instruments
All significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practical the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.

Website Development Costs/Domain Names
The Company accounts for its Development Costs in accordance with ASC-350-50, “Accounting for Website Development Costs.” The Company’s website comprises multiple features and offerings that are currently developed with on-going refinements. In connection with the development of its products, the Company has incurred external costs for hardware, software, and consulting services, and internal costs for payroll and related expenses of its technology directly involved in the development.  All hardware costs are capitalized as fixed assets.  Purchased software will be capitalized in accordance with ASC codification 350-50-25 related to accounting for the costs of computer software developed or obtained for internal use.  All other costs are reviewed to determine whether they should be capitalized or expensed.

Pursuant to ASC 360, the Company periodically evaluates, at least annually, whether facts or circumstances indicate that the carrying value of its depreciable assets to be held and used may not be recoverable. Domain names are generally not amortized. If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived asset, or the appropriate grouping of assets, is compared to the carrying value to determine whether impairment exists. In the event that the carrying amount of long-lived assets exceeds the undiscounted future cash flows, then the carrying amount of such assets is adjusted to their fair value. The Company reports an impairment cost as a charge to operations at the time it is recognized.

Impairment of Long-Lived Assets
Long-lived assets, such as property and domain names and website development costs are reviewed for impairment when recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to estimated undiscounted future cash flows expecting an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset

Fixed Assets
Fixed assets are carried at cost less accumulated depreciation.  Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows:

 
Office equipment
5 years
 
 
The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. Accumulated depreciation to date on office equipment is $615.

Loss per Common Share
Basic earnings (loss) per share includes no dilution and is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Dilutive earnings (loss) per share reflect the potential dilution of securities that could share in the earnings of the Company. Because the Company does not have any potential dilutive securities, the accompanying presentation is only on the basic loss per share.

 
F-6

 

FREEBUTTON, INC.
(Formerly Secured Window Blinds, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 2013

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Income Taxes
The Company follows the liability method of accounting for income taxes.  Under this method, 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 balances and tax loss carry-forwards.  Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. 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.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.

Stock-based Compensation
The Company follows ASC 718-10, "Stock Compensation", which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 is a revision to SFAS No. 123, "Accounting for Stock-Based Compensation," and supersedes Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees," and its related implementation guidance. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. On February 25, 2013, the Board of Directors of the Company adopted a new equity incentive award plan, named the FreeButton, Inc. 2013 Equity Incentive Award Plan (the “2013 Plan”), which has been approved by a majority, or approximately 65% of outstanding shareholders of the Company on February 25, 2013.The new plan is an “omnibus plan” under which stock options, stock appreciation rights, performance share awards, restricted stock and restricted stock units can be awarded.  The 2013 Plan’s initial share reservation will be 3,500,000 shares.  The term of the plan is for 10 years from the date of its adoption. As of June 30, 2013 the Company has issue 7,000 common shares. (Refer Note 3)

Recent Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

NOTE 3 – STOCKHOLDERS’ EQUITY/DEFICIT

The Stockholders’ Equity/Deficit section of the Company contains the following classes of Capital Stock as of June 30, 2013.

-
Common stock $0.001 par value: 75,000,000 shares authorized: 33,407,000 shares issued and outstanding.

On December 15, 2006, the Company issued 105,000,000 common shares at $0.0000666 per share to the sole director and President of the Company for cash proceeds of $7,000.

On May 12, 2008, the Company issued 45,000,000 common shares at $0.0000666 per share to the sole director and President of the Company for cash proceeds of $3,000.

From September to August, 2008, the Company issued 9,300,000 shares through private placements at $0.001666 per share for net proceeds to the Company of $15,500.

On June 26, 2012, the President of the Company forgave all debts owing to him by the Company for all advances/shareholders loans totalling $54,742.  All these sums are reflected as a credit to additional-paid-in-capital.

On August 15, 2012, two shareholders of the Company returned 126,000,000 (pre-split 8,400,000) restricted shares of common stock to treasury and the shares were cancelled by the Company.  The shares were returned to treasury for no consideration to the shareholder.  Following the cancellation the Company now has 33,300,000 (pre-split 2,220,000 shares of common stock outstanding.
 
 
F-7

 
 
FREEBUTTON, INC.
(Formerly Secured Window Blinds, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 2013
 
NOTE 3 – STOCKHOLDERS’ EQUITY/DEFICIT (continued)

On August 22, 2012 a majority of shareholders and the directors approved a special resolution to undertake a forward split of the common stock of the Company on a 15 new shares for 1 old share, which was effected on October 1, 2012, increasing the outstanding shares from 2,220,000 to 33,300,000.

On February 25, 2013, the Company issued 100,000 common shares through a private placement at $0.25 per share for net proceeds to the Company of $25,000.

On February 25, 2013 the Company issued under the 2013 Plan a total of 7,000 common shares to one individual and two companies. Total value received for services rendered was $4,430 (refer Equity Incentive Award Plan)

All references in these financial statements to number of common shares, price per share and weighted average number of common shares outstanding prior to the 15:1 forward split have been adjusted to reflect the stock split on a retroactive basis, unless otherwise noted.

Equity Incentive Award Plan
On February 25, 2013, the Board of Directors of the Company adopted a new equity incentive award plan, named the FreeButton, Inc. 2013 Equity Incentive Award Plan (the “2013 Plan”), which has been approved by a majority, or approximately 65% of outstanding shareholders of the Company on February 25, 2013.

The new plan is an “omnibus plan” under which stock options, stock appreciation rights, performance share awards, restricted stock and restricted stock units can be awarded.  The 2013 Plan’s initial share reservation will be 3,500,000 shares.  The term of the plan is for 10 years from the date of its adoption.

On February 25, 2013 the Company issued under the 2013 Plan a total of 7,000 common shares to one individual and two companies. Total value received for services rendered was $4,430.

NOTE 4 – RELATED PARTY TRANSACTIONS

On December 15, 2006 the Company issued 105,000,000 shares of common stock at $0.0000666 per share to its sole director and President of the Company for cash proceeds of $7,000.  On May 12, 2008 the Company issued 45,000,000 shares of common stock at $0.0000666 per share to its sole director and President of the Company for cash proceeds of $3,000.  During the nine months ending September 30, 2012 the President of the Company paid outstanding payables owed by the Company of $28,400. On June 26, 2012, the President of the Company forgave all debts owing to him by the Company for all advances/shareholders loans totalling $54,742.  All these sums are reflected as a credit to additional-paid-in-capital.

On August 15, 2012, two shareholder of the Company returned 126,000,000 (pre-split 8,400,000) restricted shares of common stock to treasury and the shares were cancelled by the Company.  The shares were returned to treasury for no consideration to the shareholder.  Following the cancellation, as of December 31, 2012 there was 33,300,000 (pre-split 2,220,000)  shares of common stock outstanding.

As at June 30, 2013 the Company has a shareholders loan in the amount of $4,072 owed to the President of the Company. The amounts due to the related party are unsecured and non- interest-bearing with no set terms of repayment.

During the six month period ended June 30, 2013, the Company paid $55,500 in total to two managers as management fees.

 
F-8

 

FREEBUTTON, INC.
(Formerly Secured Window Blinds, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 2013
 
NOTE 5 – CONVERTIBLE PROMISSORY NOTE

On August 9, 2012 the Company signed a Convertible Promissory Note for $110,000, with an interest rate of 8% with a maturity date of August 9, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $1,000,000 at a differing price.

On November 20, 2012 the Company signed a Convertible Promissory Note for $25,000, with an interest rate of 8% with a maturity date of May 20, 2013. Maturity date has been extended to November 20, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $225,000 at a differing price.

On December 13, 2012 the Company signed a Convertible Promissory Note for $10,000, with an interest rate of 8% with a maturity date of June 13, 2013. Maturity date has been extended to December 12, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $90,000 at a differing price.

On January 7, 2013 the Company signed a Convertible Promissory Note for $13,500, with an interest rate of 8% with a maturity date of October 3, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $121,500 at a differing price.

On March 18, 2013 the Company signed a Convertible Promissory Note for $25,000, with an interest rate of 8% with a maturity date of September 18, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $225,000 at a differing price.

On April 3, 2013 the Company signed a Convertible Promissory Note for $13,500, with an interest rate of 8% with a maturity date of October 2, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $121,500 at a differing price.

On April 25, 2013 the Company signed a Convertible Promissory Note for $25,000, with an interest rate of 8% with a maturity date of October 25, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $225,000 at a differing price.

On May 24, 2013 the Company signed a Convertible Promissory Note for $30,000, with an interest rate of 8% with a maturity date of November 24, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $270,000 at a differing price.

 
F-9

 

FREEBUTTON, INC.
(Formerly Secured Window Blinds, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 2013
 
NOTE 6 – INCOME TAXES

The Company has adopted the FASB for reporting purposed. As of June 30, 2013 the Company had net operating loss carry forwards of approximately $363,386 that may be available to reduce future years’ taxable income and will expire beginning in 2026. Availability of loss usage is subject to change of ownership limitations under Internal Revenue Code 382. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the future tax loss carryforwards.

NOTE 7 – SUBSEQUENT EVENTS


On July 11, 2013, FreeButton, Inc. (the “Company”) entered into an Assets and Business Acquisition Agreement (the “Acquisition Agreement”) with Media Rhythm Group, Inc. (“Media Rhythm”) to acquire all of the assets in connection to the business of Media Rhythm (the “Assets”).

Media Rhythm operates a marketing and advertising business that primarily caters to sports media such as magazines and websites. James Lynch, President, Chief Executive Officer, Secretary, and Director of the Company, is President and the sole shareholder of Media Rhythm (James Lynch is also President and Chief Executive Officer of FreeButton, Inc.)

Pursuant to the Acquisition Agreement, the Company purchased the Assets for $420,000 (the “Purchase Price”), and in return, issued a promissory note dated July 11, 2013 to Media Rhythm with the principal amount equal to the Purchase Price (the “Note”). Under the Note, the Purchase Price shall be paid by the Company to Media Rhythm in twenty-four (24) equal monthly installments commencing on August 1, 2013 (On August 2, 2013 the commencement date was changed to September 1, 2013). The Note shall bear no interest. The Company may at any time prepay all or part of the unpaid principal of the Note. The Company’s payment obligation may become accelerated upon certain events of default, including failure to make past due payment within ten (10) days of a written notice from the holder, failure to cure any involuntary insolvency or bankruptcy proceeding within ninety (90) days of the commencement of such proceeding, and filing of any voluntary bankruptcy or insolvency proceeding. Media Rhythm is entitled to the right of setoff against all or part of the unpaid and past due payments under the Note or the Acquisition Agreement.
 
On July 11, 2013, the Company issued 100,000 common shares through a private placement at $0.25 per share for net proceeds to the Company of $25,000.
 
 
F-10

 
 
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation

This Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity, and certain other factors that may affect our future results. The following discussion and analysis should be read in conjunction with our consolidated financial statements and the accompanying notes thereto included in “Item 1. Financial Statements.” In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. See “Forward-Looking Statements.” Our results and the timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors.

Business Overview

We operate sweepstakes websites featuring free giveaways of premier consumer products to users who participate in online games. Our partner companies provide premier consumer products in various categories for free giveaway, such as sports, electronics, travel, gaming, style, bags, and in return, receive a series of benefits including product exposure, advertising space and sales leads. We also operate an eCommerce website where the users can purchase products of our partner companies.

The Company was engaged in the business of offering window blind system products and ceased such operation upon the consummation of a change of control in August 2012. Since then, current management has been building the Company to be a platform for marketing and advertising initiatives and a marketplace for consumer products.

Recent Development

On July 11, 2013, we entered into an Assets and Business Acquisition Agreement (the “Acquisition Agreement”) with Media Rhythm Group, Inc. (“Media Rhythm”) to acquire all of the assets in connection to the business of Media Rhythm (the “Assets”).

Media Rhythm operates a marketing and advertising business that primarily caters to sports media such as magazines and websites. James Lynch, President, Chief Executive Officer, Secretary, and Director of the Company, is President and the sole shareholder of Media Rhythm.

Pursuant to the Acquisition Agreement, the Company purchased the Assets for $420,000 (the “Purchase Price”), and in return, issued a promissory note dated July 11, 2013 to Media Rhythm with the principal amount equal to the Purchase Price (the “Note”). Under the Note, the Purchase Price shall be paid by the Company to Media Rhythm in twenty-four (24) equal monthly installments commencing on August 1, 2013. The Note shall bear no interest. The Company may at anytime prepay all or part of the unpaid principal of the Note.
 
 
4

 

Plan of Operations

During the next twelve months we anticipate implementing:

We plan to launch two additional websites, FreeButtonGaming.com & FreeButtonPlus.com.

FreeButtonPlus.com

FreeButtonPlus.com is designed to offer unique benefits to member users upon signing up our “Free+” program and paying for a fee. “Free+” program provides member users with benefits including, gifts with purchase, exclusive giveaways for members only, no CAPTCHA system prior to play, special offers from partner companies, ending- soon alerts, monthly attempt rewards, double donation values. We plan to launch FreeButtonPlus.com in the near future.

FreeButtonGaming.com.

FreeButtonGaming.com. is intended for giveaway events with enhanced changes of winning, to be participated by limited number of paid users playing skill-required games. The number of participating users and the amount each user required to pay will be determined depending on the cost of winnable items. The participating users will be sent a link to enter a skill-required online game, such as “breakout” or “jewel mania”. The user with the highest score in each game will win the product. Additionally, we plan to build an Application Programming Interface (API) and license the API to other website publishers to be utilized for their own “play-to-win” games. We plan to launch FreeButtonGaming.com in approximately October 2013.

Integration Site

We plan to integrate all four discussed websites into one main website FreeButton.com, upon completion of beta testing to our satisfaction. We estimate that we will complete the integration in approximately October 2013.

Our President, Chief Executive Officer and Secretary, James Lynch, builds partnerships with consumer products manufacturer, drives sales, perform other functions of an executive, managerial or administrative nature.

Our Vice President and Treasury, Dallas Steinberger, is responsible for our website construction and assist with marketing and generating traffic to our websites.
 
Results of Operation
 
Three Months Ended June 30, 2013 Compared to Three Months Ended June 30, 2012
 
We did not generate any revenue during the quarter ended June 30, 2013 and has not generated any revenue since inception November 27, 2006. Total expenses for the quarter ended June 30, 2013 were $66,218 resulting in an operating loss of $66,218 as compared to total expenses of $4,884 resulting in an operating loss of $4,884 for the quarter ended June 30, 2012. The increase in total expenses accompanied the commencement of our new business operation upon the consummation of a change of control occurred in August 2012. The operating loss for the quarter ended June 30, 2013 is a result of office and general expenses in the amount of $33,440, management fee of $22,500, marketing expenses of $5,790 and professional fees in the amount of $4,488 as compared to office and general expenses in the amount of $1,022, management fee of nil, marketing expenses of nil and professional fees in the amount of $3,862 for the quarter ended June 30, 2012. For the quarter ended June 30, 2013, we incurred a loan interest of $4,511 as compared to loan interest of nil for the quarter ended June 30, 2012.
 
Six Months Ended June 30, 2013 Compared to Six Months Ended June 30, 2012

We did not generate any revenue during for the six months ended June 30, 2013 and has not generated any revenue since inception November 27, 2006. Total expenses for the six months ended June 30, 2013 were $154,445 resulting in an operating loss of $154,445 as compared to total expenses of $9,518 resulting in an operating loss of $9,518 for the six months ended June 30, 2012. The increase in total expenses accompanied the commencement of our new business operation upon the consummation of a change of control occurred in August 2012. The operating loss for the six months ended June 30, 2013 is a result of office and general expenses in the amount of $56,276, management fee of $55,500, marketing expenses of $16,357 and professional fees in the amount of $26,312 as compared to office and general expenses in the amount of $1,156, management fee of nil, marketing expenses of nil and professional fees in the amount of $8,362 for the six months ended June 30, 2012. For the six months ended June 30, 2013, we incurred a loan interest of $7,717 as compared to loan interest of nil for the six months ended June 30, 2012.
 
 
5

 
 
Capital Resources and Liquidity
 
As of June 30, 2013, we had $2,615 of cash as compared to $21,674 of cash for the year ended December 31, 2012. We anticipate that our current cash and cash equivalents and cash generated from financing activities will be insufficient to satisfy our liquidity requirements for the next 12 months. To date the Company has generated no revenues from its business operations and has incurred operating losses since inception of $363,386. As at June 30, 2013, the Company has a working capital deficit of $276,066.
 
The Company requires additional funding to meet its ongoing obligations and to fund anticipated operating losses. Our auditor has expressed substantial doubt about our ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

We expect to incur product development, marketing and professional and administrative expenses as well expenses associated with maintaining our SEC filings. We will require additional funds during this time and will seek to raise the necessary additional capital. If we are unable to obtain additional financing, we may be required to reduce the scope of our business development activities, which could harm our business plans, financial condition and operating results. Additional funding may not be available on favorable terms, if at all. The Company intends to continue to fund its business by way of equity or debt financing and advances from related parties.
If we raise additional capital through the issuance of equity or convertible debt securities, the percentage ownership of our company held by existing shareholders will be reduced and those shareholders may experience significant dilution. In addition, new securities may contain certain rights, preferences or privileges that are senior to those of our common stock. In the event we are unsuccessful in raising additional capital through the issuance of equity or convertible debt securities, we will seek to raise additional capital through the issuance of debt or its equivalents. Issuance of debt or its equivalents will result in increased interest expense.

We are a development stage company with no revenues to date, and therefore we may have to pay high cost in securing a financing. We cannot assure you that we will be able to raise the working capital as needed in the future on terms acceptable to us, if at all. Any delay to raise capital as needed would have a material adverse effect on our business, financial condition and results of operations.

If we cannot raise additional fund, we will have to cease business operations. As a result, investors in the Company’s common stock would lose all of their investment.

Off Balance Sheet Arrangements

There are no off-balance sheet arrangements currently contemplated by management or in place that are reasonably likely to have future effect on the business, financial condition, revenue or expenses and/or result of operations.

Recent Accounting Pronouncements

We have implemented all new accounting pronouncements that are in effect and that may impact its financial statements. We do not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
 
ITEM 3. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

Smaller reporting companies are not required to provide the information required by this item.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures
 
Our management, including our principal executive officer and principal accounting officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act as of the end of the period covered by this report. Our management does not expect that our disclosure controls and procedures will prevent all error and all fraud. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
 
 
6

 
 
Based on the evaluation as of June 30, 2013, for the reasons set forth below, our principal executive officer and principal accounting officer concluded that our disclosure controls and procedures were not effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.
 
 
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis. In its assessment of the effectiveness of internal control our financial reporting as of June 30, 2013, the Company determined that the following items constituted a material weakness:

The Company does not have an independent audit committee in place, which would provide oversight of the Company’s officers, operations and financial reporting function.

The Company’s disclosure controls and procedures do not provide adequate segregation of duties;

The Company does not have effective controls over period end financial disclosure and reporting processes.

Management believes that the above material weaknesses could result in a material misstatement in our financial statements in future periods.

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 will continue to monitor and evaluate the effectiveness of our internal controls and procedures and our internal controls over financial reporting on an ongoing basis and are committed to taking further action and implementing additional enhancements or improvements when our financial position permits.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f)) during the quarter ended June 30, 2013 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

To the best of our knowledge, there are no material pending legal proceedings to which we are a party or of which any of our property is the subject.
 
ITEM 1A. RISK FACTORS

Smaller reporting companies are not required to provide the information required by this item.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On April 3, 2013 the Company issued a six-month promissory note of a principal amount of $13,500, with an interest of 8%. The holder is entitled to convert any portion of the outstanding and unpaid amount into our common stock at conversion price of $0.10 per share, subject to adjustments if the Company issues shares in a financing for gross proceeds exceeding $121,500 within the term of the note. The issuance of these shares was exempt from the registration requirements of the Securities Act, pursuant to Section 4(2) thereof as a transaction by an issuer not involving a public offering.

On April 25, 2013, the Company issued a six-month promissory note of a principal amount of $25,000, with an interest of 8%. The holder is entitled to convert any portion of the outstanding and unpaid amount into our common stock at conversion price of $0.10 per share, subject to adjustments if the Company issues shares in a financing for gross proceeds exceeding $225,000 within the term of the note. The issuance of these shares was exempt from the registration requirements of the Securities Act, pursuant to Section 4(2) thereof as a transaction by an issuer not involving a public offering.
 
 
7

 

On May 24, 2013, the Company issued a promissory note of a principal amount of $30,000, with a maturity date of November 24, 2013 and an interest of 8%. The holder is entitled to convert any portion of the outstanding and unpaid amount into our common stock at conversion price of $0.10 per share, subject to adjustments if the Company issues shares in a financing for gross proceeds exceeding $270,000 within the term of the note. The issuance of these shares was exempt from the registration requirements of the Securities Act, pursuant to Section 4(2) thereof as a transaction by an issuer not involving a public offering.

On July 11, 2013, the Company issued 100,000 shares of the Company’s commons stock to an investor at a price of $0.25 per share, in exchange for proceeds of $25,000. The issuance of these shares was exempt from the registration requirements of the Securities Act pursuant to Section 4(2) thereof as a transaction by an issuer not involving a public offering.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information of the promissory notes issued on April 3, 2013, April 25, 2013, and May 24, 2013, respectively, contained under Item 2 of Part II above is incorporated herein by reference in response to this item.
 
ITEM 6. EXHIBITS
 
10.1†
 
Assets and Business Acquisition Agreement between the Company and Media Rhythm, dated July 11, 2013, incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed on August 1, 2013.
     
31.1
 
Certification of Principal Executive Officer and Principal Accounting Officer pursuant to 18 U.S.C 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
32.1*
 
Certification of Principal Executive Officer and Principal Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
     
101.INS*
 
XBRL Instance Document
     
101.SCH*
 
XBRL Taxonomy Extension Schema Document
     
101.CAL*
 
XBRL Taxonomy Extension Calculation Linkbase Document
     
101.DEF*
 
XBRL Taxonomy Extension Definition Linkbase Document
     
101.LAB*
 
XBRL Taxonomy Extension Label Linkbase Document
     
101.PRE*
 
XBRL Taxonomy Extension Presentation Linkbase Document
 
† Management contract or compensatory plan arrangement
*In accordance with the SEC Release 33-8238, deemed being furnished and not filed.
**Furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise not subject to liability under these sections.
 
 
8

 

SIGNATURES

Pursuant to the requirements of the Exchange Act or 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
FreeButton, Inc.
 
       
Dated: August 14, 2013
By:
/s/ James Edward Lynch, Jr.
 
   
James Edward Lynch, Jr.
 
   
President, Chief Executive Officer and Secretary
 
   
(Duly Authorized Officer, Principal Executive Officer and Principal Accounting Officer)
 

 
9
EX-31.1 2 f10q0613ex31i_freebutton.htm CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL ACCOUNTING OFFICER f10q0613ex31i_freebutton.htm
Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL ACCOUNTING OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James Edward Lynch, Jr., certify that:

1.
I have reviewed this quarterly report on Form 10-Q of FreeButton Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
(d)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
 
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
 
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 14, 2013
 
By:
/s/ James Edward Lynch, Jr.
   
James Edward Lynch, Jr.
   
President and Chief Executive Officer
   
(Principal Executive Officer and Principal Accounting Officer)






 
EX-32.1 3 f10q0613ex32i_freebutton.htm CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL ACCOUNTING OFFICER f10q0613ex32i_freebutton.htm
Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL ACCOUNTING OFFICER PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, James Edward Lynch, Jr., President and Chief Executive Officer of FreeButton, Inc., hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)
the quarterly report on Form 10-Q of FreeButton Inc. for the quarter ended June 30, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of FreeButton, Inc.

Dated: August 14, 2013
 
     
 
By:
/s/ James Edward Lynch, Jr.
   
James Edward Lynch, Jr.
   
President and Chief Executive Officer
   
(Principal Executive Officer and Principal Accounting Officer)



 
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Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2008
Dec. 31, 2007
Jun. 30, 2013
Feb. 25, 2013
Private Placement [Member]
Jun. 30, 2013
Private Placement [Member]
Aug. 31, 2008
Private Placement [Member]
Jun. 30, 2013
Private Placement One [Member]
Nature of Operations and Basis of Presentation (Textual)                                
Shares issued to founders for cash       150,000,000                   9,300,000   100,000
Per share value of shares issued to founders       $ 0.0000667                 $ 0.25 $ 0.001666 $ 0.001666 $ 0.025
Value of shares issued to founders for cash       $ 10,000                   $ 15,500   $ 25,000
Net Loss (953) (70,729) 5,116 (162,162) 482 (116,741) (18,249) (19,650)    (16,944) (7,739) (363,386)        
Working capital deficit       $ 276,066               $ 276,066        
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Statements of Operations (Unaudited) (USD $)
3 Months Ended 6 Months Ended 79 Months Ended
Mar. 31, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Statements Of Operations [Abstract]          
REVENUE               
EXPENSES          
Office and general 33,440 1,022 56,276 1,156 94,005
Management fees 22,500    55,500    100,500
Marketing expenses 5,790    16,357    27,242
Professional fees 4,488 3,862 26,312 8,362 139,535
TOTAL EXPENSES 66,218 4,884 154,445 9,518 361,282
NET OPERATING LOSS: (66,218) (4,884) (154,445) (9,518) (361,282)
OTHER INCOME (EXPENSES)          
Exchange loss             (620)
Loan interest (4,511)    (7,717)    (11,484)
Gain (loss) on debt settlement    10,000    10,000 10,000
TOTAL OTHER INCOME (EXPENSES) (4,511) 10,000 (7,717) 10,000 (2,104)
NET LOSS FOR THE YEAR $ (70,729) $ 5,116 $ (162,162) $ 482 $ (363,386)
BASIC LOSS PER COMMON SHARE $ 0.00 $ 0.00 $ 0.00 $ 0.00  
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-BASIC 33,407,000 159,300,000 33,373,895 159,300,000  
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Stockholders' Equity/Deficit
6 Months Ended
Jun. 30, 2013
Stockholders' Equity Deficit [Abstract]  
STOCKHOLDERS' EQUITY/DEFICIT
NOTE 3 – STOCKHOLDERS’ EQUITY/DEFICIT
 
The Stockholders’ Equity/Deficit section of the Company contains the following classes of Capital Stock as of June 30, 2013.
 
-
Common stock $0.001 par value: 75,000,000 shares authorized: 33,407,000 shares issued and outstanding.
 
On December 15, 2006, the Company issued 105,000,000 common shares at $0.0000666 per share to the sole director and President of the Company for cash proceeds of $7,000.
 
On May 12, 2008, the Company issued 45,000,000 common shares at $0.0000666 per share to the sole director and President of the Company for cash proceeds of $3,000.
 
From September to August, 2008, the Company issued 9,300,000 shares through private placements at $0.001666 per share for net proceeds to the Company of $15,500.
 
On June 26, 2012, the President of the Company forgave all debts owing to him by the Company for all advances/shareholders loans totalling $54,742.  All these sums are reflected as a credit to additional-paid-in-capital.
 
On August 15, 2012, two shareholders of the Company returned 126,000,000 (pre-split 8,400,000) restricted shares of common stock to treasury and the shares were cancelled by the Company.  The shares were returned to treasury for no consideration to the shareholder.  Following the cancellation the Company now has 33,300,000 (pre-split 2,220,000 shares of common stock outstanding.
 
On August 22, 2012 a majority of shareholders and the directors approved a special resolution to undertake a forward split of the common stock of the Company on a 15 new shares for 1 old share, which was effected on October 1, 2012, increasing the outstanding shares from 2,220,000 to 33,300,000.
 
On February 25, 2013, the Company issued 100,000 common shares through a private placement at $0.25 per share for net proceeds to the Company of $25,000.
 
On February 25, 2013 the Company issued under the 2013 Plan a total of 7,000 common shares to one individual and two companies. Total value received for services rendered was $4,430 (refer Equity Incentive Award Plan)
 
All references in these financial statements to number of common shares, price per share and weighted average number of common shares outstanding prior to the 15:1 forward split have been adjusted to reflect the stock split on a retroactive basis, unless otherwise noted.
 
Equity Incentive Award Plan
On February 25, 2013, the Board of Directors of the Company adopted a new equity incentive award plan, named the FreeButton, Inc. 2013 Equity Incentive Award Plan (the “2013 Plan”), which has been approved by a majority, or approximately 65% of outstanding shareholders of the Company on February 25, 2013.
 
The new plan is an “omnibus plan” under which stock options, stock appreciation rights, performance share awards, restricted stock and restricted stock units can be awarded.  The 2013 Plan’s initial share reservation will be 3,500,000 shares.  The term of the plan is for 10 years from the date of its adoption.
 
On February 25, 2013 the Company issued under the 2013 Plan a total of 7,000 common shares to one individual and two companies. Total value received for services rendered was $4,430.
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Subsequent Events (Details) (USD $)
1 Months Ended 6 Months Ended 12 Months Ended 0 Months Ended 6 Months Ended 12 Months Ended 0 Months Ended
Dec. 31, 2006
Jun. 30, 2013
Dec. 31, 2008
Feb. 25, 2013
Private Placement [Member]
Jun. 30, 2013
Private Placement [Member]
Aug. 31, 2008
Private Placement [Member]
Jul. 11, 2013
Subsequent Event [Member]
Installment
Jul. 11, 2013
Subsequent Event [Member]
Private Placement [Member]
Subsequent Events (Textual)                
Asset purchase price             $ 420,000  
Number of installment for payment of asset purchase price             24  
Business combination, payment obligation description             The Company's payment obligation may become accelerated upon certain events of default, including failure to make past due payment within ten (10) days of a written notice from the holder, failure to cure any involuntary insolvency or bankruptcy proceeding within ninety (90) days of the commencement of such proceeding, and filing of any voluntary bankruptcy or insolvency proceeding.  
Shares issued in private placement       100,000   9,300,000   100,000
Per share value of shares   $ 0.0000667   $ 0.25 $ 0.001666 $ 0.001666   $ 0.25
Value of shares issued in private placement $ 7,000   $ 3,000 $ 25,000   $ 15,500   $ 25,000
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Summary of Significant Accounting Policies (Details) (Office equipment [Member])
6 Months Ended
Jun. 30, 2013
Office equipment [Member]
 
Estimated useful lives of the plant and equipment  
Estimated useful lives 5 years
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Statements of Stockholders' Equity (Deficit) (Unaudited) (Parenthetical) (USD $)
1 Months Ended 12 Months Ended
Dec. 31, 2006
Dec. 31, 2008
Statement Of Stockholders' Equity (Deficit) [Abstract]    
Common shares issued for cash price per share $ 0.0000666 $ 0.0000666
Common shares issued for cash price per share one   $ 0.001666
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Nature of Operations and Basis of Presentation
6 Months Ended
Jun. 30, 2013
Nature Of Operations and Basis Of Presentation [Abstract]  
NATURE OF OPERATIONS AND BASIS OF PRESENTATION
NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION
 
The Company was incorporated on November 27, 2006 under the laws of the State of Nevada and extra-provincially registered under the laws of the Province of Ontario on February 2, 2007. On September 28, 2012, the Company with a majority of the shareholders and directors changed its name from Secured Window Blinds, Inc. to Freebutton, Inc.
 
Freebutton, Inc. has ceased the business of offering window blind system products and now intends to operate, through “TheFreeButton.com”, as an instant-win promotion online site where users can click the “Free Button” to instantly win the products offered on the Company’s homepage without entering their email.
 
Going concern
To date the Company has generated no revenues from its business operations and has incurred operating losses since inception of $363,386.  As at June 30, 2013, the Company has a working capital deficit of $276,066.  The Company requires additional funding to meet its ongoing obligations and to fund anticipated operating losses. The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company’s ability to continue as a going concern. The Company intends to continue to fund its business by way of private placements and advances from related parties as may be required. As of June 30, 2013 the Company has issued 150,000,000 founders shares at $0.0000667 per share for net proceeds of $10,000 to the Company and 9,300,000 private placement shares at $0.001666 per share for net proceeds of $15,500 and 100,000 private placement shares at $0.025 per share for net proceeds of $25,000 to the Company. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.
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Related Party Transactions
6 Months Ended
Jun. 30, 2013
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
NOTE 4 – RELATED PARTY TRANSACTIONS
 
On December 15, 2006 the Company issued 105,000,000 shares of common stock at $0.0000666 per share to its sole director and President of the Company for cash proceeds of $7,000.  On May 12, 2008 the Company issued 45,000,000 shares of common stock at $0.0000666 per share to its sole director and President of the Company for cash proceeds of $3,000.  During the nine months ending September 30, 2012 the President of the Company paid outstanding payables owed by the Company of $28,400. On June 26, 2012, the President of the Company forgave all debts owing to him by the Company for all advances/shareholders loans totalling $54,742.  All these sums are reflected as a credit to additional-paid-in-capital.
 
On August 15, 2012, two shareholder of the Company returned 126,000,000 (pre-split 8,400,000) restricted shares of common stock to treasury and the shares were cancelled by the Company.  The shares were returned to treasury for no consideration to the shareholder.  Following the cancellation, as of December 31, 2012 there was 33,300,000 (pre-split 2,220,000)  shares of common stock outstanding.
 
As at June 30, 2013 the Company has a shareholders loan in the amount of $4,072 owed to the President of the Company. The amounts due to the related party are unsecured and non- interest-bearing with no set terms of repayment.
 
During the six month period ended June 30, 2013, the Company paid $55,500 in total to two managers as management fees.
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Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2013
Summary Of Significant Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Basis of Presentation
 
Unaudited Financial Statements
The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles for financial information and with the instructions to Form 10-Q.  They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements.  However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the year ended December 31, 2012 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.  The unaudited financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.
 
Segmented Reporting
FSAB ASC 280, “Disclosure about Segments of an Enterprise and Related Information”, changed the way public companies report information about segments of their business in their quarterly reports issued to shareholders.  It also requires entity-wide disclosures about the products and services the entity provides, the material countries in which it holds assets and reports revenues and its major customers.
 
Comprehensive Loss
“Reporting Comprehensive Income,” establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at June 30, 2013, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.

Use of Estimates and Assumptions
Preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain 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 revenues and expenses during the period.  Accordingly, actual results could differ from those estimates.
 
Financial Instruments
All significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practical the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.
 
Website Development Costs/Domain Names
The Company accounts for its Development Costs in accordance with ASC-350-50, “Accounting for Website Development Costs.” The Company’s website comprises multiple features and offerings that are currently developed with on-going refinements. In connection with the development of its products, the Company has incurred external costs for hardware, software, and consulting services, and internal costs for payroll and related expenses of its technology directly involved in the development.  All hardware costs are capitalized as fixed assets.  Purchased software will be capitalized in accordance with ASC codification 350-50-25 related to accounting for the costs of computer software developed or obtained for internal use.  All other costs are reviewed to determine whether they should be capitalized or expensed.
 
Pursuant to ASC 360, the Company periodically evaluates, at least annually, whether facts or circumstances indicate that the carrying value of its depreciable assets to be held and used may not be recoverable. Domain names are generally not amortized. If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived asset, or the appropriate grouping of assets, is compared to the carrying value to determine whether impairment exists. In the event that the carrying amount of long-lived assets exceeds the undiscounted future cash flows, then the carrying amount of such assets is adjusted to their fair value. The Company reports an impairment cost as a charge to operations at the time it is recognized.
 
Impairment of Long-Lived Assets
Long-lived assets, such as property and domain names and website development costs are reviewed for impairment when recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to estimated undiscounted future cash flows expecting an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset
 
Fixed Assets
Fixed assets are carried at cost less accumulated depreciation.  Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows:
 
 
Office equipment
5 years
 
 
The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. Accumulated depreciation to date on office equipment is $615.
 
Loss per Common Share
Basic earnings (loss) per share includes no dilution and is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Dilutive earnings (loss) per share reflect the potential dilution of securities that could share in the earnings of the Company. Because the Company does not have any potential dilutive securities, the accompanying presentation is only on the basic loss per share.
 
 
Income Taxes
The Company follows the liability method of accounting for income taxes.  Under this method, 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 balances and tax loss carry-forwards.  Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. 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.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.
 
Stock-based Compensation
The Company follows ASC 718-10, "Stock Compensation", which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 is a revision to SFAS No. 123, "Accounting for Stock-Based Compensation," and supersedes Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees," and its related implementation guidance. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. On February 25, 2013, the Board of Directors of the Company adopted a new equity incentive award plan, named the FreeButton, Inc. 2013 Equity Incentive Award Plan (the “2013 Plan”), which has been approved by a majority, or approximately 65% of outstanding shareholders of the Company on February 25, 2013.The new plan is an “omnibus plan” under which stock options, stock appreciation rights, performance share awards, restricted stock and restricted stock units can be awarded.  The 2013 Plan’s initial share reservation will be 3,500,000 shares.  The term of the plan is for 10 years from the date of its adoption. As of June 30, 2013 the Company has issue 7,000 common shares. (Refer Note 3)
 
Recent Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
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Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2013
Dec. 31, 2012
Balance Sheets [Abstract]    
Capital stock, Authorized shares 75,000,000 75,000,000
Capital stock, Par value per share $ 0.001 $ 0.001
Capital stock, Issued shares 33,407,000 33,300,000
Capital stock, Outstanding shares 33,407,000 33,300,000
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Subsequent Events
6 Months Ended
Jun. 30, 2013
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
NOTE 7 – SUBSEQUENT EVENTS
 
On July 11, 2013, FreeButton, Inc. (the “Company”) entered into an Assets and Business Acquisition Agreement (the “Acquisition Agreement”) with Media Rhythm Group, Inc. (“Media Rhythm”) to acquire all of the assets in connection to the business of Media Rhythm (the “Assets”).
 
Media Rhythm operates a marketing and advertising business that primarily caters to sports media such as magazines and websites. James Lynch, President, Chief Executive Officer, Secretary, and Director of the Company, is President and the sole shareholder of Media Rhythm (James Lynch is also President and Chief Executive Officer of FreeButton, Inc.)
 
Pursuant to the Acquisition Agreement, the Company purchased the Assets for $420,000 (the “Purchase Price”), and in return, issued a promissory note dated July 11, 2013 to Media Rhythm with the principal amount equal to the Purchase Price (the “Note”). Under the Note, the Purchase Price shall be paid by the Company to Media Rhythm in twenty-four (24) equal monthly installments commencing on August 1, 2013 (On August 2, 2013 the commencement date was changed to September 1, 2013). The Note shall bear no interest. The Company may at any time prepay all or part of the unpaid principal of the Note. The Company’s payment obligation may become accelerated upon certain events of default, including failure to make past due payment within ten (10) days of a written notice from the holder, failure to cure any involuntary insolvency or bankruptcy proceeding within ninety (90) days of the commencement of such proceeding, and filing of any voluntary bankruptcy or insolvency proceeding. Media Rhythm is entitled to the right of setoff against all or part of the unpaid and past due payments under the Note or the Acquisition Agreement.
 
On July 11, 2013, the Company issued 100,000 common shares through a private placement at $0.25 per share for net proceeds to the Company of $25,000.
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Statements of Stockholders' Equity (Deficit) (Unaudited) (USD $)
Total
Common Stock
Additional Paid-in Capital
Share Subscription Receivable
Deficit Accumulated During the Development Stage
Balance at Nov. 27, 2006               
Common shares issued for cash - at $0.0000666 per share 7,000 105,000 (98,000)    
Common shares issued for cash - at $0.0000666 per share, shares   105,000,000      
Share subscription receivable (7,000)     (7,000)  
Net loss for the period (953)       (953)
Balance at Dec. 31, 2006 (953) 105,000 (98,000) (7,000) (953)
Balance, shares at Dec. 31, 2006   105,000,000      
Share subscription receivable 7,000     7,000  
Net loss for the period (7,739)       (7,739)
Balance at Dec. 31, 2007 (1,692) 105,000 (98,000)   (8,692)
Balance, shares at Dec. 31, 2007   105,000,000      
Common shares issued for cash - at $0.001666 per share 15,500 9,300 6,200      
Common shares issued for cash - at $0.001666 per share, shares   9,300,000      
Common shares issued for cash - at $0.0000666 per share 3,000 45,000 (42,000)      
Common shares issued for cash - at $0.0000666 per share, shares   45,000,000      
Net loss for the period (16,944)       (16,944)
Balance at Dec. 31, 2008 (136) 159,300 (133,800)    (25,636)
Balance, shares at Dec. 31, 2008   159,300,000      
Net loss for the period            
Balance at Dec. 31, 2009 (21,084) 159,300 (133,800)   (46,584)
Balance, shares at Dec. 31, 2009   159,300,000      
Net loss for the period (19,650)       (19,650)
Balance at Dec. 31, 2010 (40,734)       (66,234)
Net loss for the period (18,249)       (18,249)
Balance at Dec. 31, 2011 (58,983) 159,300 (133,800)    (84,483)
Balance, shares at Dec. 31, 2011   159,300,000      
Debt forgiveness of related party 54,742    54,742      
Shares cancelled - August 15, 2012 (Note 3)    (126,000) 126,000      
Shares cancelled - August 15, 2012 (Note 3), shares   (126,000,000)      
Net loss for the period (116,741)       (116,741)
Balance at Dec. 31, 2012 (120,982) 33,300 46,942    (201,224)
Balance, shares at Dec. 31, 2012   33,300,000      
Debt forgiveness of related party           
Common shares issued for cash at $0.25 25,000 100 24,900    
Common shares issued for cash at $0.25, shares   100,000      
Common shares issued for services (Note 3) 4,430 7 4,423    
Common shares issued for services (Note 3), shares   7,000      
Net loss for the period (162,162)       (162,162)
Balance at Jun. 30, 2013 $ (253,714) $ 33,407 $ 76,265   $ (363,386)
Balance, shares at Jun. 30, 2013   33,407,000      
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Balance Sheets (USD $)
Jun. 30, 2013
Dec. 31, 2012
CURRENT ASSETS    
Cash $ 2,615 $ 21,674
Prepaid 1,344   
TOTAL CURRENT ASSETS 3,959   
OFFICE EQUIPMENT, NET 3,507 3,914
WEB DEVELOPMENT COSTS 18,845 18,845
TOTAL ASSETS 26,311 44,433
CURRENT LIABILITIES    
Accounts payable and accrued liabilities 23,953 16,343
Due to related party (Note 4) 4,072 4,072
Promissory Note (Note 5) 252,000 145,000
TOTAL CURRENT LIABILITIES 280,025 165,415
STOCKHOLDERS' EQUITY (DEFICIT)    
Capital stock (Note 3) Authorized 75,000,000 shares of common stock, $0.001 par value, Issued and outstanding 33,407,000 shares of common stock (December 31, 2012 - 33,300,000 ) 33,407 33,300
Additional paid-in capital 76,265 46,942
Deficit accumulated during the development stage (363,386) (201,224)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (253,714) (120,982)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 26,311 $ 44,433
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Income Taxes (Details) (USD $)
6 Months Ended
Jun. 30, 2013
Income Taxes (Textual)  
Operating loss carryforwards $ 363,386
Expiration dates of operating loss carry forwards Beginning in 2026.
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Income Taxes
6 Months Ended
Jun. 30, 2013
Income Taxes [Abstract]  
INCOME TAXES
NOTE 6 – INCOME TAXES
 
The Company has adopted the FASB for reporting purposed. As of June 30, 2013 the Company had net operating loss carry forwards of approximately $363,386 that may be available to reduce future years’ taxable income and will expire beginning in 2026. Availability of loss usage is subject to change of ownership limitations under Internal Revenue Code 382. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the future tax loss carryforwards.
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    Summary of Significant Accounting Policies (Tables)
    6 Months Ended
    Jun. 30, 2013
    Summary Of Significant Accounting Policies [Abstract]  
    Estimated useful lives of the plant and equipment
    Office equipment
    5 years
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    Convertible Promissory Note
    6 Months Ended
    Jun. 30, 2013
    Convertible Promissory Note [Abstract]  
    CONVERTIBLE PROMISSORY NOTE
    NOTE 5 – CONVERTIBLE PROMISSORY NOTE
     
    On August 9, 2012 the Company signed a Convertible Promissory Note for $110,000, with an interest rate of 8% with a maturity date of August 9, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $1,000,000 at a differing price.
     
    On November 20, 2012 the Company signed a Convertible Promissory Note for $25,000, with an interest rate of 8% with a maturity date of May 20, 2013. Maturity date has been extended to November 20, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $225,000 at a differing price.
     
    On December 13, 2012 the Company signed a Convertible Promissory Note for $10,000, with an interest rate of 8% with a maturity date of June 13, 2013. Maturity date has been extended to December 12, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $90,000 at a differing price.
     
    On January 7, 2013 the Company signed a Convertible Promissory Note for $13,500, with an interest rate of 8% with a maturity date of October 3, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $121,500 at a differing price.
     
    On March 18, 2013 the Company signed a Convertible Promissory Note for $25,000, with an interest rate of 8% with a maturity date of September 18, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $225,000 at a differing price.
     
    On April 3, 2013 the Company signed a Convertible Promissory Note for $13,500, with an interest rate of 8% with a maturity date of October 2, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $121,500 at a differing price.
     
    On April 25, 2013 the Company signed a Convertible Promissory Note for $25,000, with an interest rate of 8% with a maturity date of October 25, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $225,000 at a differing price.
     
    On May 24, 2013 the Company signed a Convertible Promissory Note for $30,000, with an interest rate of 8% with a maturity date of November 24, 2013. The issuer of the Convertible Promissory Note has the option to convert all or portion of the Promissory Note into common shares of the Company. The Conversion price share would be $0.10, unless the Company has, between the issue date of the Promissory Note and its Maturity date, sold its capital stock in financing in which the Company received gross proceeds of an excess of $270,000 at a differing price.
    XML 51 R7.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Statements of Cash Flows (Unaudited) (USD $)
    6 Months Ended 79 Months Ended
    Jun. 30, 2013
    Jun. 30, 2012
    Jun. 30, 2013
    OPERATING ACTIVITIES      
    Net loss for the period $ (162,162) $ 482 $ (363,386)
    Adjustments to reconcile net loss to net cash used in operating activities:      
    Gain on debt settlement    (10,000) 10,000
    Depreciation expenses 407    615
    Common stock issued for service 4,430    (4,430)
    Changes in operating assets and liabilities:      
    Increase (decrease) in Accounts payables and accrued liabilities 7,610 (18,884) 33.953
    Prepaid expenses (1,344)   1,344
    NET CASH USED IN OPERATING ACTIVITIES (151,059) (28,402) (335,732)
    INVESTING ACTIVITIES      
    Furniture and Equipment       (4,122)
    Web development costs and acquisitions       (18,845)
    NET CASH USED IN INVESTING ACTIVITIES       (22,967)
    CASH FLOW FROM FINANCING ACTIVITIES      
    Proceeds on sale of common stock 25,000    50,500
    Proceed from issuance of convertible promissory note 107,000    252,000
    Proceeds from related parties    28,400 58,814
    NET CASH PROVIDED BY FINANCING ACTIVITIES 132,000 28,400 361,314
    NET INCREASE (DECREASE) IN CASH (19,059) (2) 2,615
    CASH, BEGINNING 21,674 2   
    CASH, ENDING 2,615    2,615
    Cash paid during the period for:      
    Interest         
    Income taxes         
    Non-cash investing and financing activities      
    Common stock issued for service (4,430)    4,430
    Debt forgiveness of related party    $ 54,742 $ 54,742
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    Summary of Significant Accounting Policies (Details Textual) (USD $)
    6 Months Ended
    Jun. 30, 2013
    Summary of Significant Accounting Policies (Textual)  
    Accumulated depreciation $ 615
    Majority percentage of outstanding shareholders voted for approval Equity Incentive Award Plan 65.00%
    2013 Plan's initial share reserve for future issuance 3,500,000
    Term of Equity Incentive Award Plan 10 years
    Shares issued under 2013 Equity Incentive Award Plan 7,000
    XML 56 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Summary of Significant Accounting Policies (Policy)
    6 Months Ended
    Jun. 30, 2013
    Summary Of Significant Accounting Policies [Abstract]  
    Basis of Presentation
    Basis of Presentation
     
    Unaudited Financial Statements
    The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles for financial information and with the instructions to Form 10-Q.  They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements.  However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the year ended December 31, 2012 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.  The unaudited financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.
    Segmented Reporting
    Segmented Reporting
    FSAB ASC 280, “Disclosure about Segments of an Enterprise and Related Information”, changed the way public companies report information about segments of their business in their quarterly reports issued to shareholders.  It also requires entity-wide disclosures about the products and services the entity provides, the material countries in which it holds assets and reports revenues and its major customers.
    Comprehensive Loss
    Comprehensive Loss
    “Reporting Comprehensive Income,” establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at June 30, 2013, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.
    Use of Estimates and Assumptions
    Use of Estimates and Assumptions
    Preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain 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 revenues and expenses during the period.  Accordingly, actual results could differ from those estimates.
    Financial Instruments
    Financial Instruments
    All significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practical the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.
    Website Development Costs/Domain Names
    Website Development Costs/Domain Names
    The Company accounts for its Development Costs in accordance with ASC-350-50, “Accounting for Website Development Costs.” The Company’s website comprises multiple features and offerings that are currently developed with on-going refinements. In connection with the development of its products, the Company has incurred external costs for hardware, software, and consulting services, and internal costs for payroll and related expenses of its technology directly involved in the development.  All hardware costs are capitalized as fixed assets.  Purchased software will be capitalized in accordance with ASC codification 350-50-25 related to accounting for the costs of computer software developed or obtained for internal use.  All other costs are reviewed to determine whether they should be capitalized or expensed.
     
    Pursuant to ASC 360, the Company periodically evaluates, at least annually, whether facts or circumstances indicate that the carrying value of its depreciable assets to be held and used may not be recoverable. Domain names are generally not amortized. If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived asset, or the appropriate grouping of assets, is compared to the carrying value to determine whether impairment exists. In the event that the carrying amount of long-lived assets exceeds the undiscounted future cash flows, then the carrying amount of such assets is adjusted to their fair value. The Company reports an impairment cost as a charge to operations at the time it is recognized.
    Impairment of Long-Lived Assets
    Impairment of Long-Lived Assets
    Long-lived assets, such as property and domain names and website development costs are reviewed for impairment when recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to estimated undiscounted future cash flows expecting an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset
     
    Fixed Assets
    Fixed Assets
    Fixed assets are carried at cost less accumulated depreciation.  Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows:
     
     
    Office equipment
    5 years
     
     
    The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. Accumulated depreciation to date on office equipment is $615.
    Loss per Common Share
    Loss per Common Share
    Basic earnings (loss) per share includes no dilution and is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Dilutive earnings (loss) per share reflect the potential dilution of securities that could share in the earnings of the Company. Because the Company does not have any potential dilutive securities, the accompanying presentation is only on the basic loss per share.
    Income Taxes
    Income Taxes
    The Company follows the liability method of accounting for income taxes.  Under this method, 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 balances and tax loss carry-forwards.  Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. 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.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.
    Stock-based Compensation
    Stock-based Compensation
    The Company follows ASC 718-10, "Stock Compensation", which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 is a revision to SFAS No. 123, "Accounting for Stock-Based Compensation," and supersedes Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees," and its related implementation guidance. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. On February 25, 2013, the Board of Directors of the Company adopted a new equity incentive award plan, named the FreeButton, Inc. 2013 Equity Incentive Award Plan (the “2013 Plan”), which has been approved by a majority, or approximately 65% of outstanding shareholders of the Company on February 25, 2013.The new plan is an “omnibus plan” under which stock options, stock appreciation rights, performance share awards, restricted stock and restricted stock units can be awarded.  The 2013 Plan’s initial share reservation will be 3,500,000 shares.  The term of the plan is for 10 years from the date of its adoption. As of June 30, 2013 the Company has issue 7,000 common shares. (Refer Note 3)
    Recent Accounting Pronouncements
    Recent Accounting Pronouncements
    The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
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    Convertible Promissory Note (Details) (USD $)
    0 Months Ended
    May 24, 2013
    Apr. 25, 2013
    Apr. 03, 2013
    Mar. 18, 2013
    Jan. 07, 2013
    Dec. 13, 2012
    Nov. 20, 2012
    Aug. 09, 2012
    Jun. 30, 2013
    Dec. 31, 2012
    Convertible Promissory Note (Textual)                    
    Convertible promissory note $ 30,000 $ 25,000 $ 13,500 $ 25,000 $ 13,500 $ 10,000 $ 25,000 $ 110,000 $ 252,000 $ 145,000
    Interest rate on Convertible Promissory Note 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%    
    Convertible Promissory Note, maturity date Nov. 24, 2013 Oct. 25, 2013 Oct. 02, 2013 Sep. 18, 2013 Oct. 03, 2013 Jun. 13, 2013 May 20, 2013 Aug. 09, 2013    
    Convertible Promissory Note, conversion price $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10    
    Company received gross proceeds of an excess $ 270,000 $ 225,000 $ 121,500 $ 225,000 $ 121,500 $ 90,000 $ 225,000 $ 1,000,000    
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    Shareholder
    Jun. 26, 2012
    Dec. 31, 2006
    Jun. 30, 2013
    Jun. 30, 2012
    Dec. 31, 2012
    Dec. 31, 2008
    Jun. 30, 2013
    Feb. 25, 2013
    2013 Equity Incentive Award Plan [Member]
    Company
    Shareholder
    May 12, 2008
    Director and President [Member]
    Dec. 15, 2006
    Director and President [Member]
    Feb. 25, 2013
    Private Placement [Member]
    Jun. 30, 2013
    Private Placement [Member]
    Aug. 31, 2008
    Private Placement [Member]
    Stockholders' Equity/Deficit (Textual)                            
    Shares issued in private placement                   45,000,000 105,000,000 100,000   9,300,000
    Per share value of shares       $ 0.0000667           $ 0.0000666 $ 0.0000666 $ 0.25 $ 0.001666 $ 0.001666
    Value of shares issued in private placement     $ 7,000       $ 3,000     $ 3,000 $ 7,000 $ 25,000   $ 15,500
    Shares issued under 2013 Equity Incentive Award Plan       7,000         7,000          
    Number of individuals received shares in equity plan                 1          
    Number of companies received shares in equity plan                 2          
    Value of shares issued under 2013 Equity Incentive Award Plan                 4,430          
    Capital stock, Par value per share       $ 0.001   $ 0.001   $ 0.001            
    Capital stock, Authorized shares       75,000,000   75,000,000   75,000,000            
    Capital stock, Issued shares       33,407,000   33,300,000   33,407,000            
    Capital stock, Outstanding shares       33,407,000   33,300,000   33,407,000            
    Common stock shares issued and outstanding, pre-split 2,220,000                          
    Debt forgiven by President   $ 54,742      $ 54,742 $ 54,742   $ 54,742            
    Number of shareholders returned restricted shares 2                          
    Restricted shares returned to treasury 126,000,000                          
    Restricted shares returned to treasury pre-split 8,400,000                          
    Description of forward stock split 15 new shares for 1 old share                          
    Majority percentage of outstanding shareholders voted for approval Equity Incentive Award Plan       65.00%       65.00%            
    2013 Plan's initial share reserve for future issuance       3,500,000       3,500,000            
    Term of Equity Incentive Award Plan       10 years                    
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    Document and Entity Information
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    Jun. 30, 2013
    Aug. 09, 2013
    Document and Entity Information [Abstract]    
    Entity Registrant Name FREEBUTTON, INC.  
    Entity Central Index Key 0001432290  
    Amendment Flag false  
    Current Fiscal Year End Date --12-31  
    Document Type 10-Q  
    Document Period End Date Jun. 30, 2013  
    Document Fiscal Year Focus 2013  
    Document Fiscal Period Focus Q2  
    Entity Filer Category Smaller Reporting Company  
    Entity Common Stock, Shares Outstanding   33,544,260
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    Related Party Transactions (Details) (USD $)
    0 Months Ended 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 79 Months Ended 0 Months Ended
    Aug. 15, 2012
    Shareholder
    Jun. 26, 2012
    Dec. 31, 2006
    Mar. 31, 2013
    Jun. 30, 2012
    Jun. 30, 2013
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    Dec. 31, 2012
    Dec. 31, 2008
    Jun. 30, 2013
    Sep. 30, 2012
    May 12, 2008
    Director and President [Member]
    Dec. 15, 2006
    Director and President [Member]
    Related Party Transactions (Textual)                          
    Shares issued in private placement                       45,000,000 105,000,000
    Per share value of shares           $ 0.0000667           $ 0.0000666 $ 0.0000666
    Value of shares issued in private placement     $ 7,000           $ 3,000     $ 3,000 $ 7,000
    Notes payable to President                     28,400    
    Debt forgiven by President   54,742          54,742 54,742   54,742      
    Number of shareholders returned restricted shares 2                        
    Restricted shares returned to treasury 126,000,000                        
    Restricted shares returned to treasury pre-split 8,400,000                        
    Capital stock, Outstanding shares           33,407,000   33,300,000   33,407,000      
    Shareholders loan           4,072   4,072   4,072      
    Management fees       $ 22,500    $ 55,500        $ 100,500      
    Number of managers           2              
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