0001493152-13-001630.txt : 20130816 0001493152-13-001630.hdr.sgml : 20130816 20130816153354 ACCESSION NUMBER: 0001493152-13-001630 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20130630 FILED AS OF DATE: 20130816 DATE AS OF CHANGE: 20130816 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ZEGARELLI GROUP INTERNATIONAL INC CENTRAL INDEX KEY: 0000867028 STANDARD INDUSTRIAL CLASSIFICATION: PERFUMES, COSMETICS & OTHER TOILET PREPARATIONS [2844] IRS NUMBER: 954040591 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-13126 FILM NUMBER: 131045191 BUSINESS ADDRESS: STREET 1: 80679 CAMINO SANTA ELISE CITY: INDIO STATE: CA ZIP: 92203 BUSINESS PHONE: (760) 345-9205 MAIL ADDRESS: STREET 1: 80679 CAMINO SANTA ELISE CITY: INDIO STATE: CA ZIP: 92203 FORMER COMPANY: FORMER CONFORMED NAME: COSMETIC GROUP USA INC /CA/ DATE OF NAME CHANGE: 19930814 FORMER COMPANY: FORMER CONFORMED NAME: K7 CAPITAL CORP DATE OF NAME CHANGE: 19930328 10-Q/A 1 form10qa.htm AMENDMENT

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q/A

 

(Mark One)
[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
 
[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______________ to ______________

 

Commission File No. 0-19227

 

ZEGARELLI GROUP INTERNATIONAL, INC.

(Exact name of small business issuer as specified in its charter)

 

CALIFORNIA   7929   95-4040591
(State or other jurisdiction of   (Primary Standard Industrial   (I.R.S. Employer
incorporation or organization)   Classification Code Number)   Identification No.)

 

80679 CAMINO SANTA ELISE

INDIO, CALIFORNIA 91352

(Address of principal executive offices)

 

(760) 345-9205

(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 [  ]

 

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 [  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer” and “large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer [  ] Accelerated filer [  ]
Non-accelerated filer [  ] Smaller reporting company [X]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes [X] No [  ]

 

The number of shares of Common Stock, no par value, of the registrant outstanding at August 13, 2013, was 22,248,337.

 

 

 

 
 

 

ITEMS AMENDED HEREBY

 

As used in this amended report, “Zegarelli Group International, Inc.” and the “Company” or “Us” or “We” or “Our” refer to Zegarelli Group International, Inc., a Nevada corporation, unless the context otherwise requires.

 

EXPLANATORY NOTE

 

The purpose of this Amendment (the “Amendment”) to our Form 10-Q for the Quarterly Period Ended June 30, 2013 (the “Form 10-Q”), as filed with the Securities and Exchange Commission (the “SEC”) on August 14, 2013, is solely to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.

 

Exhibit 101 to this report provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

 

This Amendment makes no other changes to the Form 10-Q as filed with the SEC on August 14, 2013 and no attempt has been made in this Amendment to modify or update the other disclosures presented in the Form 10-Q.

 

This Amendment does not reflect subsequent events occurring after the original filing of the Form 10-Q (i.e., those events occurring after August 14, 2013) or modify or update in any way those disclosures that may be affected by subsequent events.

 

Accordingly, this Amendment should be read in conjunction with the Form 10-Q and our other filings with the SEC.

 

2
 

 

ZEGARELLI GROUP INTERNATIONAL, INC.

FORM 10-Q/A

FOR THE QUARTER ENDED JUNE 30, 2013

 

INDEX

 

        Page
PART II OTHER INFORMATION    
         
Item 6 Exhibits   4
         
SIGNATURES   5
         
INDEX OF EXHIBITS   6

 

3
 

 

PART II — OTHER INFORMATION

 

Item 6. Exhibits.

 

See Index of Exhibits on Page 3.

 

4
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this amended report to be signed on its behalf by the undersigned thereunto duly authorized.

 

Date: August 16, 2013 ZEGARELLI GROUP INTERNATIONAL, INC.
   
  /s/ Alfred E. Booth
 

Alfred E. Booth, President

  (Principal Executive Officer)

 

5
 

 

INDEX OF EXHIBITS

 

Exhibit Number   Description
31.1   Certification of Chief Executive Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 (1)
     
31.2   Certification of Chief Financial Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 (1)
     
32.1   Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (1)
     
101.INS   XBRL Instance Document. (2)
     
101.SCH   XBRL Taxonomy Extension Schema Document. (2)
     
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document (2)
     
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document (2)
     
101.LAB   XBRL Taxonomy Extension Label Linkbase Document (2)
     
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document (2)

 


(1) These exhibits were previously included in the Registrant’s Form 10-Q for the Quarterly Period ended June 30, 2013, filed with the SEC on August 14, 2013.
 
(2) Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibits 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, and Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

 

6
 

 

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Statements of Operations (Unaudited) (USD $)
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Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Income Statement [Abstract]        
REVENUES            
EXPENSES        
Administrative 1,046    1,278  
Professional fees 3,069    13,656 475
TOTAL EXPENSES 4,115 0 14,934 475
OTHER EXPENSES        
Interest expenses 708    1,416  
LOSS BEFORE TAXES (4,823) 0 (16,350) (475)
INCOME TAX EXPENSE       800 800
NET LOSS $ (4,823) $ 0 $ (17,150) $ (1,275)
NET LOSS PER COMMON SHARE        
Basic and diluted            
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 22,248,337 22,248,337 22,248,337 22,248,337
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Convertible Note Payable
6 Months Ended
Jun. 30, 2013
Debt Disclosure [Abstract]  
Convertible Note Payable

5. CONVERTIBLE NOTE PAYABLE

 

On September 14, 2012, the Company acknowledged and formalized monies advanced to the Company over the past three years by entering into a 6% convertible promissory note in favor of Alfred Booth, Jr. in the principal amount of $47,199, which was the outstanding balance owed to Mr. Booth as of June 30, 2012. The entire note balance plus accrued interest of $3,041 was outstanding as of June 30, 2013.

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Operations and Basis of Presentation
6 Months Ended
Jun. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Operations and Basis of Presentation

1. OPERATIONS AND BASIS OF PRESENTATION

 

Zegarelli Group International, Inc. (the “Company”) was incorporated on February 27, 1990. The Company manufactured cosmetic products for private label distributions throughout the United States. The Company ceased operations and has been inactive since 2002. The Company was publicly-traded company listed on the OTC Bulletin Board (“pink-sheets”). On November 9, 1998, the Company filed a Form 15 with the Securities and Exchange Commission (“SEC”) terminating its registration under Section 12(g) of the Securities Act of 1934, which relieved the Company of its requirement to file reports with the SEC. Even though the Company has not made any further filings with the SEC since 1998, the Company has had some minimal stock trading activity.

 

The Company’s board is now considering merging with another entity that has viable operations. As such, the existing company is not going to continue as a going concern after any merger. The financial statements do not contain any adjustments that would be necessary should the Company not continue as a going concern.

 

During interim periods, we follow the accounting policies set forth in Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 and apply appropriate interim financial reporting standards for a fair statement of Company’s operating results and financial position in conformity with accounting principles generally accepted in the United States of America, as codified by the Financial Accounting Standards Board (FASB) in the Accounting Standards Codification (ASC) (referred to herein as U.S. GAAP), as indicated below. Users of financial information produced for interim periods are encouraged to read this Quarterly Report on Form 10-Q in conjunction with Company’s financial statements and notes thereto filed with the Securities and Exchange Commission (SEC) in Company’s 2012 Annual Report on Form 10-K.

 

Interim financial reporting standards require management to make estimates that are based on assumptions regarding the outcome of future events and circumstances not known at that time. Inevitably, some assumptions will not materialize, unanticipated events or circumstances may occur which vary from those estimates and such variations may significantly affect Company’s future results. 

 

The accompanying unaudited condensed financial statements have been prepared in accordance with the SEC’s requirements for Form 10-Q and, in the opinion of management, contain all adjustments, of a normal and recurring nature, which are necessary for a fair statement of; (i) the condensed statements of operations for the six month periods ended June 30, 2013 and 2012; (ii) the condensed balance sheets at June 30, 2013 and December 31, 2012; and (iii) the condensed statements of cash flows for the six month periods ended June 30, 2013 and 2012. However, the accompanying unaudited condensed financial statements do not include all information and notes required by U.S. GAAP. The condensed consolidated balance sheet, included in this report, as of December 31, 2012 was derived from Company’s 2012 audited financial statements, but does not include all disclosures required by U.S. GAAP.

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Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2013
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Use of EstimatesThe preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates.

 

Cash and Cash Equivalents – Cash equivalents consist of highly liquid investments with original maturities of three months or less.

 

Revenue Recognition – The Company recognizes revenue upon concluding that all of the fundamental criteria for revenue recognition have been met. The criteria are usually met at the time products are shipped. The Company performs ongoing credit evaluations of its customers’ financial condition and records a reserve for sales returns and allowances based on the historical rate of returns on its products.

 

Research and Development Costs – The Company expenses research and development costs as incurred. The Company had no such expenses for the six months period ended June 30, 2013 and 2012.

 

Advertising Costs – Costs incurred for producing and communicating advertising are expensed when incurred and included in selling general and administrative expenses. Advertising expense amounted to $0 for the six months ended June 30, 2013 and 2012, respectively.

 

Property and Equipment – Property and equipment are stated at cost. Major renewals and improvements are charged to the asset accounts while replacements, maintenance and repairs, which do not improve or extend the lives of the respective assets are expensed. At the time property and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to income. Property and equipment are depreciated over the useful lives of the asset using the straight line method.

 

Earnings Per ShareBasic earnings per share are computed by dividing earnings available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. For the six months ended June 30, 2013 and 2012, the Company has incurred losses; therefore the effect of any Common Stock equivalent would be anti-dilutive during those periods.

 

Impairment of Long-Lived Assets and Assets – The Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected future undiscounted cash flows is less that the carrying amount of the asset, an impairment loss is recorded. No impairment losses were recognized for the six months ended June 30, 2013 and 2012.

 

Income Taxes – The Company accounts for income taxes in accordance with FASB Codification, “Accounting for Income Taxes.” This statement requires an asset and liability approach for accounting for income taxes. The accounting principles generally accepted in the United States of America provides accounting and disclosure guidance about positions taken by an entity in its tax returns that might be uncertain.

 

The accounting principles generally accepted in the United States of America provides accounting and disclosure guidance about positions taken by an organization in its tax returns that might be uncertain. Management has considered its tax positions and believes that all of the positions taken by the Company in its Federal and State tax returns are more likely than not to be sustained upon examination. The Company files income tax returns in the U.S. and various state jurisdictions. The Company is subject to examinations by U.S. Federal and State tax authorities from 2010 to the present, generally for three years after they are filed.

 

Fair Value of Financial Instruments – The carrying values of cash equivalents, accounts receivable, accounts payable, short-term debt to a related party and accrued liabilities and those potentially subject to valuation risk at June 30, 2013 and December 31, 2012 approximated fair value due to their short maturity or nature.

 

Concentration of Credit Risk – Financial instruments, which potentially subject the company to concentrations of credit risk, consist principally of cash and cash equivalents. At June 30, 2013 and December 31, 2012 the Company had no cash and cash equivalents.

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Related Party Transactions
6 Months Ended
Jun. 30, 2013
Related Party Transactions [Abstract]  
Related Party Transactions

4. RELATED PARTY TRANSACTIONS

 

The majority stockholder has advanced the Company funds to bring it into compliance with various regulations and tax laws. During the six months period June 30, 2013 and 2012, this stockholder advanced $15,734 and $1,275, respectively. The advances are due upon demand and bear no interest.

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Jun. 30, 2013
Dec. 31, 2012
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value      
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Statements of Cash Flows (Unaudited) (USD $)
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (17,150) $ (1,275)
Changes in liabilities:    
Increase in accrued expenses 1,416   
Net cash used in operating activities (15,734) (1,275)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Advances from stockholder 15,734 1,275
Net cash provided by financing activities 15,734 1,275
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 0
Cash and cash equivalents at beginning of period      
Cash and cash equivalents at end of period      
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
Income taxes paid 800 800
Interest paid      
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Balance Sheets (USD $)
Jun. 30, 2013
Dec. 31, 2012
Statement of Financial Position [Abstract]    
ASSETS $ 0 $ 0
LIABILITIES AND STOCKHOLDERS' DEFICIT    
Advance from majority stockholder 32,962 17,228
Accrued interest expenses 3,041 1,625
Convertible note payable 47,199 47,199
TOTAL CURRENT LIABILITIES 83,202 66,052
COMMITMENTS AND CONTINGENCIES      
STOCKHOLDERS' DEFICIT    
Preferred stock - $.01 par value, 1,000,000 shares authorized, 0 shares issued and outstanding      
Common stock, no par value, 25,000,000 shares authorized, 22,248,337 shares issued and outstanding 7,436,101 7,436,101
Contributed capital 918,231 918,231
Accumulated deficit (8,437,534) (8,420,384)
TOTAL STOCKHOLDERS' DEFICIT (83,202) (66,052)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 0 $ 0
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Going Concern
6 Months Ended
Jun. 30, 2013
Going Concern  
Going Concern

2. GOING CONCERN

 

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States (GAAP) that contemplate continuation of the Company as a going concern. During the six months ended June 30, 2013 and 2012, the Company incurred a net loss of $12,327 and $800, respectively. In addition, the Company had an accumulated deficit of $8,437,534 as of June 30, 2013. The Company has not earned any significant revenues since inception. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

The Company’s ability to continue in existence is dependent on its ability to develop additional sources of capital, and/or achieve profitable operations and positive cash flows. Management’s plan is to aggressively pursue its present business plan. Since inception the Company has funded its operations through the issuance of common stock and related party loans and advances, and will seek additional debt or equity financing as required. However, there can be no assurance that the Company will be successful in raising such additional funds. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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Document and Entity Information
6 Months Ended
Jun. 30, 2013
Aug. 13, 2013
Document And Entity Information    
Entity Registrant Name ZEGARELLI GROUP INTERNATIONAL INC  
Entity Central Index Key 0000867028  
Document Type 10-Q  
Document Period End Date Jun. 30, 2013  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Is Entity's Reporting Status Current? Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   22,248,337
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2013  
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