UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 2014
¨ TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE EXCHANGE ACT OF 1934
For the transition period from ___________ to _____________
Commission file number 333-158584
EHOUSE GLOBAL, INC. |
(Exact Name of Registrant as Specified in its Charter) |
Nevada | 90-1066766 | |
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) | |
9974 Scripps Ranch Road, #182 San Diego, CA |
92131 | |
(Address of Principal Executive Offices) | (Zip Code) |
858-459-0770 | ||
(Issuer's telephone number, including area code) |
Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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, a non-accelerated filer or a smaller reporting company 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 ¨ | (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 Securities Exchange Act of 1934) (check one):
Yes ¨ . No
x .
The number of shares of the Registrant’s Common Stock outstanding as of August 18, 2014 was 269,547,513, all of one class, $.001 par value per share
EHOUSE GLOBAL, INC.
Table of Contents
PART I-- FINANCIAL INFORMATION
Page | ||
Item 1. | Financial Statements | F-2 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 13 |
Item 3 | Quantitative and Qualitative Disclosures About Market Risk | 15 |
Item 4. | Control and Procedures | 15 |
PART II-- OTHER INFORMATION
Item 1 | Legal Proceedings | 16 |
Item 1A | Risk Factors | 16 |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 16 |
Item 3. | Defaults Upon Senior Securities | 16 |
Item 4. | Mine Safety Disclosures | 16 |
Item 5. | Other Information | 16 |
Item 6. | Exhibits | 17 |
EHOUSE GLOBAL, INC.
FINANCIAL STATEMENTS
TABLE OF CONTENTS
F-1 |
dba Nutraliquids
Balance Sheets
( unaudited )
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 100,292 | $ | 14,779 | ||||
Funds Receivable | 25,000 | |||||||
Prepaid expenses | 5,664 | 5,664 | ||||||
Debt offering costs | 9,714 | 3,122 | ||||||
Total current assets | 140,670 | 23,565 | ||||||
Furniture and Equipment | 1,033 | - | ||||||
Total assets | $ | 141,703 | $ | 23,565 | ||||
LIABILITIES | ||||||||
Current liabilities : | ||||||||
Accounts payable & accrued expenses | $ | 24,323 | $ | 30,600 | ||||
Notes Payable | $ | 100,000 | ||||||
Notes payable - related party | 75,000 | 75,000 | ||||||
Convertible Debt, Net of debt discount of $ 327,658 and $ 46,399 respectively | 232,678 | 6,601 | ||||||
Derivative Liabilities | 515,195 | 89,372 | ||||||
Total current liabilities | 847,196 | 301,573 | ||||||
STOCKHOLDERS' DEFICIT | ||||||||
Stockholders' Deficit: | ||||||||
Preferred Stock: $0.001 par value, 1,000,000 shares | ||||||||
authorized, 500,000 and 0 shares issued and outstanding | 500 | - | ||||||
Common stock: $0.001 par value, 2,500,000,000 shares | ||||||||
authorized; 246,372,528 and 99,800,000 shares issued and outstanding at June 30, 2014 and December 31, 2013 | 246,373 | 99,800 | ||||||
Additional paid- in capital | 814,637 | 20,000 | ||||||
Accumulated deficit | (1,767,003 | ) | (397,808 | ) | ||||
Total Stockholders' deficit | (705,493 | ) | (278,008 | ) | ||||
Total liabilities and stockholders' deficit | $ | 141,703 | $ | 23,565 |
The accompanying notes are an integral part of these Financial Statements
F-2 |
dba Nutraliquids
Statement of Operations
(unaudited)
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative expenses | $ | 209,144 | $ | 125 | $ | 635,176 | $ | 3,639 | ||||||||
Other expenses ( income) | (1,620 | ) | (11,632 | ) | (1,620 | ) | (11,632 | ) | ||||||||
Total operating expenses | 207,524 | (11,507 | ) | 633,556 | (7,993 | ) | ||||||||||
Other (Income) Expense | ||||||||||||||||
Interest expense | 223,104 | 310,747 | - | |||||||||||||
Derivative interest expense | 116,736 | 1,095,904 | - | |||||||||||||
Change in fair value of embedded derivative liabilities | (739,830 | ) | (671,012 | ) | - | |||||||||||
Total other (Income) expense | (399,990 | ) | 735,639 | - | ||||||||||||
Net Income ( Loss) before taxes | 192,466 | 11,507 | (1,369,195 | ) | 7,993 | |||||||||||
Income taxes | - | - | - | - | ||||||||||||
Net Income ( Loss ) | $ | 192,466 | $ | 11,507 | $ | (1,369,195 | ) | $ | 7,993 | |||||||
Net Income ( Loss) per common share : | ||||||||||||||||
basic | $ | 0.00 | $ | 0.00 | $ | -0.01 | $ | 0.00 | ||||||||
diluted | $ | 0.00 | $ | 0.00 | $ | -0.01 | $ | 0.00 | ||||||||
Weighted average number | ||||||||||||||||
of common shares outstanding: Basic | 187,032,012 | 98,800,000 | 152,844,420 | 98,800,000 | ||||||||||||
of common shares outstanding: Diluted | 649,387,287 | 98,800,000 | 615,199,695 | 98,800,000 |
* Gives retroactive effect to 34 for 1 forward stock split declared in January, 2013
The accompanying notes are an integral part of these Financial Statements
F-3 |
dba Nutraliquids
Statement of Stockholders Equity - Worksheet
(Unaudited)
Preferred | Common | Additional Paid-in | Accumulated | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | (Deficit) | Total | ||||||||||||||||||||||
Balances, December 31, 2013 | - | - | 99,800,000 | $ | 99,800 | $ | 20,000 | $ | (397,808 | ) | $ | (278,008 | ) | |||||||||||||||
Preferred Stock Issued for services | 500,000 | 500 | - | - | 190,631 | 0 | 191,131 | |||||||||||||||||||||
Common stock issued for services ($0.12/share) | 500,000 | 500 | 62,000 | 62,500 | ||||||||||||||||||||||||
Reclassification of derivative liability associated with convertible debt | 517,459 | 517,459 | ||||||||||||||||||||||||||
Convertible debt and accrued interest converted into common stock | 146,072,528 | 146,073 | 24,547 | 170,620 | ||||||||||||||||||||||||
Net Loss | (1,369,195 | ) | (1,369,195 | ) | ||||||||||||||||||||||||
Balances, June 30, 2014 | 500,000 | $ | 500 | 246,372,528 | $ | 246,373 | $ | 814,637 | $ | (1,767,003 | ) | $ | (705,493 | ) |
F-4 |
dba Nutraliquids
Statements of Cash Flows
For the Six Months Ended June 30, 2014 and 2013
(Unaudited)
2014 | 2013 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net Income ( loss ) | (1,369,195 | ) | $ | 7,993 | ||||
Settlement of Debt | - | (11,632 | ) | |||||
Adjustments to reconcile Net (Loss) to Net Cash | ||||||||
used in operating activities : | ||||||||
Common stock issued for services | 62,500 | - | ||||||
Preferred stock issued for services | 191,131 | - | ||||||
Depreciation expense | 147 | - | ||||||
Amortization of debt offering costs and discount | 293,245 | - | ||||||
Derivative interest expense | 1,095,904 | - | ||||||
Change in fair value of derivative liabilities | (671,012 | ) | - | |||||
Change in operating assets and liabilities | ||||||||
Prepaid expenses | - | - | ||||||
Accounts payable and accrued expenses | (6,277 | ) | 2,293 | |||||
Net Cash Used in Operating Activities | (403,557 | ) | (1,346 | ) | ||||
CASH FROM INVESTING ACTIVITIES | ||||||||
Purchase of Equipment | (1,180 | ) | - | |||||
Net cash provided by investing activities | (1,180 | ) | - | |||||
CASH FROM FINANCING ACTIVITIES - | ||||||||
Direct offering costs paid | (12,750 | ) | - | |||||
Issuance of Convertible Notes Payable | 503,000 | - | ||||||
Net Cash Provided by Financing Activities | $ | 490,250 | - | |||||
CHANGE IN CASH | $ | 85,513 | (1,346 | ) | ||||
CASH AT BEGINNING OF PERIOD | 14,779 | 1,606 | ||||||
CASH AT END OF PERIOD | $ | 100,292 | $ | 260 | ||||
Supplementary disclosure of non-cash financing activity: | ||||||||
Non-cash additions to convertible note balance | 37,336 | - | ||||||
Reclassification of derivative liability to additional paid-in-capital | 517,459 | - | ||||||
Note payable reclassified to convertible debt | 100,000 | - | ||||||
Shares issued in conversion of convertible debt and accrued interest | 170,620 | - | ||||||
Debt discount on convertible note accounted for as a derivative liability | 519,682 | - | ||||||
Supplementary disclosure of cash flow information | ||||||||
Cash paid during the period for: | ||||||||
Interest | - | - | ||||||
Income taxes | - | - |
See accompanying notes to Financial Statements.
F-5 |
dba Nutraliquids
Notes to Financial Statements
(Unaudited)
NOTE 1 - ACCOUNTING POLICIES AND BASIS OF PRESENTATION
Ehouse Global, Inc. (the “Company”) prepared these financial statements in accordance with both accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Therefore, the financial statements do not include all disclosures required by generally accepted accounting principles. However, the Company has recorded all transactions and adjustments necessary to present fairly the financial statements included in this Form 10-Q. The adjustments made are normal and recurring. The following notes describe only the material changes in accounting policies, account details or financial statement notes during the first three months of 2014. Therefore, please read these financial statements and notes to the financial statements together with the audited financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2013. The income statement for the six months ended June 30, 2014 cannot necessarily be used to project results for the full year.
NOTE 2 - BUSINESS OPERATIONS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in The United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations.
It is management's opinion, however, that all material adjustments (consisting of normal and recurring adjustments) have been made which are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of the results to be expected for the year.
Impact of New Accounting Standards
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.
Estimates
The preparation of financial statements in conformity with GAAP 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 reporting period. Actual results could differ from those estimates.
Furniture and Equipment
Furniture and equipment are stated at cost, less accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is provided using the straight-line method over the estimated useful life of three to five years.
Derivative Liabilities
We value derivative liabilities using a multinomial lattice model. The model is based on a probability weighted discounted cash flow model of future projections of various outcomes. Some of the key assumptions include the likelihood of future financing, stock price volatility, and discount rates.
Net Income (Loss) Per Common Share
Basic Net income (loss) per common share is computed pursuant to FASB ASC 260-10-45. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period.
F-6 |
EHOUSE GLOBAL, INC.
dba Nutraliquids
Notes to Financial Statements
(Unaudited)
The computation of diluted earnings per share at June 30, 2014 includes the common stock equivalents of the following potentially dilutive securities:
June 30, 2014 | ||||
Convertible Debt (Exercise price - $0.00168 - $0.0007/share) | 462,355,275 |
Subsequent Events
The Company follows the guidance in FASB ASC 855-10-50 for the disclosure of subsequent events. The Company evaluates subsequent events from the date of the balance sheet through the date when the financial statements are issued or available to be issued.
NOTE 3 - GOING CONCERN
The accompanying financial statements have been prepared assuming that we will continue as a going concern. As reflected in the accompanying financial statements, we have very limited financial resources, with working capital and net shareholder deficits and had generated no revenue through June 30, 2014.
We have actively developed and plan to introduce sixteen different liquid nutritional products into the market. While we are undertaking our business plan to generate additional revenues, our cash position may not be sufficient to support our basic business plan and product distribution efforts. Management believes that the actions presently underway to introduce our products to the marketplace have a realistic chance of succeeding. While we believe in the viability of our strategy to increase revenues and in our ability to raise additional funds, there can be no assurances to that effect. Our ability to continue as a going concern is dependent upon our ability to achieve profitable operations or obtain adequate financing.
The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.
NOTE 4 - Fair Value of Financial Instruments
The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts payable and accrued expenses, approximate their fair values because of the current nature of these instruments. Debt approximates fair value based on interest rates available for similar financial arrangements. Derivative liabilities which have been bifurcated from host convertible debt agreements are presented at fair value.
The following is the major category of liabilities measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013, using quoted prices in active markets for identical liabilities (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3):
June 30, 2014 | December 31, 2013 | |||||||||||
Derivative Liabilities | Level 3 | $ | 515,195 | $ | 89,372 |
F-7 |
EHOUSE GLOBAL, INC.
dba Nutraliquids
Notes to Financial Statements
(Unaudited)
NOTE 5 - PROPERTY AND EQUIPMENT
At June 30, 2014, property and equipment consisted of office furniture purchased during the six months ended June 30, 2014 for $1,180 with an estimated useful life of 3 years.
Depreciation expense for the six months ended June 30, 2014 totaled $147.
NOTE 6 - NOTE PAYABLE
On June 30, 2013, the Company entered into a senior loan agreement with Realty Capital Management Limited (the “Note”) for a loan of $100,000. The loan, which becomes due 365 days after cash proceeds are received by the Company, bears interest at 12% per annum with interest payable in four quarterly payments commencing 90 days after cash proceeds from the loan is received by the Company. The Company received the proceeds from the loan on July 11, 2013.
The Note is senior to all other notes or obligations that the Company may enter into in the future before the Note is repaid. It also places limits on the number of common shares or instruments convertible into common shares that the Company may issue.
The Company also agreed to issue 1,000,000 newly-issued shares of its common stock to the lender. These shares have piggyback registration rights. These shares were issued on July 26, 2013 at which time there were 99,800,000 shares of common stock outstanding. The Company capitalized the $1,000 as debt issue costs at the time of issuance of these shares which will be amortized over the life of the debt. The valuation for this issuance was based on the par value of the shares issued or $0.001 per share. At the time of issuance, the Company had a stockholders’ deficit, no shares had been purchased for cash and there was no market in the shares.
The President of the Company has pledged 42,900,000 shares of his common stock of the Company as collateral for the loan. In the event of an Event of Default that is not remedied as defined in the Loan Agreement, the lender would also have the right to convert the principal balance of the loan into common shares of the Company at the rate of $0.001 per share (for up to 100 million shares).
If an Event of Default occurs and the lender converts the Note, the lender will have a controlling interest in the Company.
On January 31, 2014, the debt holder entered into a securities settlement agreement whereby the note was transferred over to a third party. In connection with the transfer, an additional $5,000 of principal was recorded which was treated as debt issue costs, interest was changed to a guaranteed 10% and a conversion clause was added. The conversion price equals 25% of the lowest traded price during the 20 trading days prior to the conversion.
The Company identified conversion features embedded within this convertible debt. The Company has determined that the features associated with the embedded conversion option should be accounted for at fair value as a derivative liability and recorded a derivative liability and derivative expense of $518,396 on the day of the amendment - See note 5.
During the six months ended June 30, 2014, the Company entered into the following conversion agreements in connection with this note agreement to pay the principal and accrued interest in full:
Principal/Interest | Shares | Conversion | ||||||||||
Date | Converted | Issued | Price | |||||||||
January 31, 2014 | 12,450 | 4,980,020 | 0.0025 | |||||||||
February 11, 2014 | 10,457 | 5,228,555 | 0.0020 | |||||||||
February 19, 2014 | 7,521 | 5,489,425 | 0.0014 | |||||||||
February 26, 2014 | 8,289 | 6,050,000 | 0.0014 | |||||||||
March 4, 2014 | 7,953 | 6,362,400 | 0.0013 | |||||||||
March 11, 2014 | 7,700 | 6,695,400 | 0.0012 | |||||||||
March 20, 2014 | 7,046 | 7,045,950 | 0.0010 | |||||||||
March 27, 2014 | 6,457 | 7,421,840 | 0.0009 | |||||||||
April 2, 2014 | 6,795 | 7,810,710 | 0.0009 | |||||||||
April 22, 2014 | 7,151 | 8,219,950 | 0.0009 | |||||||||
April 28, 2014 | 9,083 | 8,650,637 | 0.0010 | |||||||||
May 9, 2014 | 9,559 | 9,103,800 | 0.0011 | |||||||||
May 20, 2014 | 8,144 | 9,580,800 | 0.0009 | |||||||||
May 23, 2014 | 6,896 | 11,033,040 | 0.0006 |
As of June 30, 2014 and December 31, 2013, the convertible note balance and accrued interest totals $0 and $106,152, respectively.
F-8 |
EHOUSE GLOBAL, INC.
dba Nutraliquids
Notes to Financial Statements
(Unaudited)
NOTE 7 - CONVERTIBLE DEBT
On November 27, 2013, the Company entered into an agreement whereby the Company will issue up to $53,000 in a convertible note. The note matures on August 27, 2014 and bears an interest rate of 8%. The conversion price equals the “Variable Conversion Price”, which is 58% of the “Market Price”, which is the average the three lowest closing bid prices for the common stock during the fifteen (15) trading day period prior to the conversion. The holder converted the principal balance of the note and most of the accrued interest to common shares during the second quarter of 2014. The Company received $50,000 proceeds, less debt issue costs of $3,000. As of June 30, 2014 and December 31, 2013, the convertible note balance and accrued interest is $307 and $53,388, respectively.
During the six months ended June 30, 2014, the Company entered into the following conversion agreements in connection with this note agreement to pay the principal and accrued interest:
Principal/Interest | Shares | Conversion | ||||||||||
Date | Converted | Issued | Price | |||||||||
June 19, 2014 | 15,000 | 11,538,462 | 0.0013 | |||||||||
June 20, 2014 | 12,900 | 9,923,077 | 0.0013 | |||||||||
June 24, 2014 | 14,980 | 11,523,077 | 0.0013 | |||||||||
June 26, 2014 | 10,120 | 9,415, 385 | 0.0011 |
On January 28, 2014, the Company entered into an agreement whereby the Company will issue up to $78,500 in a convertible note. The note matures on October 30, 2014 and bears an interest rate of 8%. The conversion price equals the “Variable Conversion Price”, which is 58% of the “Market Price”, which is the average the three lowest closing bid prices for the common stock during the fifteen (15) trading day period prior to the conversion. The Company received $75,000 proceeds, less debt issue costs of $3,500 on February 11, 2014. As of June 30, 2014, the convertible note balance and accrued interest is $81,168.
On January 30, 2014, the Company entered into an agreement whereby the Company will issue up to $335,000 in a convertible note subject to a $35,000 original issue discount (OID). The note matures on January 30, 2016, and bears an interest rate of 0% if note is repaid on or before 90 days from the effective date. If the note is not repaid within 90 days, a one-time interest charge of 12% will be applied to the principal. The conversion price equals the lesser of $0.012 or the “Variable Conversion Price”, which is 60% of the “Market Price”, which is lowest trading prices for the common stock during the twenty-five (25) trading day period prior to the conversion. The Company received $75,000 proceeds through June 30, 2014.
On January 31, 2014, the Company entered into an agreement whereby the Company will issue up to $100,000 in a convertible note. The note matures on July 31, 2014 and bears an interest rate of 10%. The conversion price equals the “Variable Conversion Price”, which is 25% of the “Market Price”, which is the lowest closing bid price for the common stock during the twenty (20) trading day period prior to the conversion. The Company received $50,000 proceeds on January 31, 2014 and the remaining $50,000 on February 14, 2014. As of June 30, 2014, the convertible note balance and accrued interest is $104,160.
On March 17, 2014, the Company entered into an agreement whereby the Company will issue up to $45,000 in a convertible note. The note matures on March 17, 2015 and bears an interest rate of 8%. The conversion price equals the “Variable Conversion Price”, which is 55% of the “Market Price”, which is the lowest closing bid price for the common stock during the fifteen (15) trading day period prior to the conversion. The Company received $42,750 proceeds, less debt issue costs of $2,250 on March 26, 2014. As of June 30, 2014, the convertible note balance and accrued interest is $46,036.
On April 7, 2014, the Company entered into an agreement whereby the Company will issue up to $ 112,000 in a convertible note. The note matures on October 7, 2014 and bears interest at an annual 12%. The conversion price equals 50% of the market price, which is the lowest trading price over the previous 20 trading days.
On April 8, 2014 the Company entered into an agreement whereby the Company will issue up to $ 53,000 in a convertible note. The note bears interest of 8% per year. The conversion price equals 58% of the market price, which is the average of the three lowest trading price over the previous 15 trading days. The company received $ 32,500 on April 30, 2014.
On April 11, 2014, the Company entered into an agreement whereby the Company will issue up to $57,836 in a convertible note. The note matures on 4/11/16 and bears interest at an annual rate of 12%. The conversion price equals 60% of the market price, which is the lowest trading price over the previous 25 trading days or $0.012.
On May 21, 2014, the Company entered into an agreement whereby the Company will issue up to $26,500 in a convertible note. The note matures on 5/21/15, and bears interest at an annual rate of 8%. The conversion price equals 55% of the market price, which is the lowest bid over the previous 15 trading days.
On May 23, 2014, the Company entered into an agreement whereby the Company will issue up to $37,500 in a convertible note. The note matures on 11/3/14, and bears interest at an annual rate of 0% The conversion price equals 58% of the market price, which is the average of the three lowest trading prices over the previous 15 trading days.
On June 27, 2014, the Company entered into an agreement whereby the Company will issue up to $25,000 in a convertible note. The note bears interest of 8% per year. The Company received $22,500 on June 27, 2014. The conversion price equals 58% of the market price, which is the average of the three lowest trading prices over the previous 15 trading days.
F-9 |
EHOUSE GLOBAL, INC.
dba Nutraliquids
Notes to Financial Statements
(Unaudited)
Debt Issue Costs
During the six months ended June 30, 2014 and year ended December 31, 2013, the Company paid debt issue costs totaling $10,750 and $4,000, which includes non-cash additions of $5,000 during the six months ended June 30, 2014 and fees paid through the issuance of common stock in the amount of $1,000 during the year ended December 31, 2013, respectively.
The following is a summary of the Company’s debt issue costs:
Six months ended | Year ended | |||||||
June 30, 2014 | December 31, 2013 | |||||||
Debt issue costs | 21,750 | 4,000 | ||||||
Accumulated amortization of debt issue costs | (12,036 | ) | (878 | ) | ||||
Debt issue costs - net | 9,714 | 3,122 |
Debt Discount
During the six months June 30, 2014 and the year ended December 31, 2013, the Company recorded debt discounts totaling $605,018 and $53,000, respectively.
The debt discount recorded pertains to convertible debt that contains embedded conversion options that are required to bifurcated and reported at fair value and original issue discounts.
The Company amortized $263,161 and $0 during the six months ended June 30, 2014 and 2013, respectively, to amortization of debt discount expense and relieved $14,199 during the six months ended June 30, 2014 due to conversions.
As of | As of | |||||||
June 30, 2014 | December 31, 2013 | |||||||
Debt discount | 605,018 | 53,000 | ||||||
Accumulated amortization of debt discount | (263,161 | ) | (6,601 | ) | ||||
Elimination of debt discount due to conversion | (14,199 | ) | ||||||
Debt discount - net | 327,658 | 46,399 |
Derivative Liabilities
The Company identified conversion features embedded within this convertible debt. The Company has determined that the features associated with the embedded conversion option should be accounted for at fair value as a derivative liability.
F-10 |
EHOUSE GLOBAL, INC.
dba Nutraliquids
Notes to Financial Statements
(Unaudited)
As a result of the application of ASC No. 815, the fair value of the conversion feature is summarized as follow:
Derivative liability - December 31, 2012 | - | |||
Fair value at the commitment date for convertible instruments | 144,346 | |||
Change in fair value of embedded derivative liability | (54,974 | ) | ||
Derivative liability - December 31, 2013 | 89,372 | |||
Fair value at the commitment date for convertible notes issued during 2014 | 1,614,294 | |||
Reclassification of derivative liability associated with convertible debt that ceased being a derivative liability to additional paid in capital | (517,459 | ) | ||
Fair value mark to market adjustment for convertible debt | (671,012 | ) | ||
Derivative liability - June 30, 2014 | 515,195 |
The Company recorded the debt discount to the extent of the gross proceeds raised, and expensed immediately the remaining value of the derivative as it exceeded the gross proceeds of the note. The Company recorded a derivative interest expense for the six months ended June 30, 2014 and 2013 of 1,095,904 and $0, respectively.
The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of June 30, 2014:
Assumption | Commitment Date | June 30, 2014 |
Expected dividends: | 0% | 0% |
Expected volatility: | 192% - 415% | 247% |
Expected term (years): | 0.5 - 2 years | 0.12 - 1.75 years |
Risk free interest rate: | 0.1% - .13% | 0.07% - 0.13% |
The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of December 31, 2013:
Assumption | Commitment Date | December 31, 2013 |
Expected dividends: | 0% | 0% |
Expected volatility: | 391% | 371% |
Expected term (years): | 0.75 | 0.65 |
Risk free interest rate: | 0.13% | 0.13% |
NOTE 8 - DEBT - RELATED PARTY
The Company’s President has made loans of $75,000 to the Company. The loans are interest-free and due on demand.
As of June 30, 2014 and December 31, 2013, the balance of the note is $75,000.
NOTE 9 - STOCKHOLDERS’ EQUITY
Common Stock
The share exchange agreement between NutraLiquids, Inc. as the accounting acquirer and Ehouse as the legal acquirer effective April 30, 2013 resulted in the retroactive recognition of the common stock issuance of Ehouse on inception of business of the accounting on December 14, 2010.
F-11 |
EHOUSE GLOBAL, INC.
dba Nutraliquids
Notes to Financial Statements
(Unaudited)
On May 3, 2012, the company received a $20,000 contribution to capital from an existing shareholder for no additional shares.
On July 19, 2013, the Company issued 1,000,000 shares of common stock in connection with an agreement with a finance corporation to actively seek additional financing for the company. As there was no active trading market for the company’s shares, the share issuance was reflected at par value of $1,000.
On March 19, 2014, the Company filed an amendment to the Company’s articles of incorporation with the Secretary of State of the State of Nevada, to increase the Company’s authorized common stock from two hundred fifty million (250,000,000) shares of common stock, par value $0.001 per share, to seven hundred fifty million (750,000,000) shares of common stock, par value $0.001 per share.
On March 19, 2014, the Company entered into a consulting agreement for the consultant to provide the Company general consulting services which could include financing introductions, business development opportunities and general marketing activities. In connection with this agreement, during the three months ended March 31, 2014, the Company issued 500,000 common shares valued at $62,500. The fair value of the stock issuance was based upon the quoted closing trading price on the date of issuance.
On June 25, 2014, the Company filed an amendment to the company's Articles of Incorporation with the Secretary of State of Nevada, to increase the Company's authorized common stock from seven hundred fifty million ( 750,000,000 )shares of common stock, par value $ 0.001, to two billion five hundred million ( 2,500,000,000) shares of common stock, par value $ 0.001 per share.
During the first six months of 2014, the Company issued common stock for conversions of debt and accrued interest as noted earlier. The total number of shares issued during the first six months of 2014 totaled 146,072,528 in exchange for $170,620 in convertible debt and accrued interest.
Series A Preferred Stock
In 2013, the Company determined that it was in their best interests to file a Certificate of Designation that authorized the issuance of up to one million (1,000,000) shares of a new series of preferred stock, par value $0.001 per share, designated “Series A Preferred Stock”.
Each holder of outstanding shares of Series A Preferred Stock shall be entitled to five hundred (500) votes for each share of Series A Preferred Stock held on the record date for the determination of stockholders entitled to vote at each meeting of stockholders of the Company; no liquidation value and no rights or dividends.
On March 18, 2014, the Company issued an aggregate of 500,000 shares of Series A Preferred Stock to the Company’s President, Chief Executive Officer, Secretary and Treasurer, in consideration for services rendered to the Company, including for and as incentive to continue to assist and provide services to the Company.
Based upon the voting control obtained, the Company recorded stock based compensation of $191,131.
NOTE 10 - SUBSEQUENT EVENTS
The Company has evaluated all events that occurred after the balance sheet date of June 30, 2014 through August 19, 2014, the date that these financial statements were available to be issued.
On July 3, 2014 the company received $ 37,500 from a Note at 8% per year having an Original Issue Discount of $ 12,500.
On July 31, 2014 Common Stock was issued for 11,291,685 shares in exchange for Notes. On August 5, 2014 11,883,300 common shares were issued in exchange for Notes.
F-12 |
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Note Regarding Forward-Looking Statements
Except for the historical information contained herein, the matters addressed in this Item 2 constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are subject to a variety of risks and uncertainties, including those discussed below under the heading "Risk Factors" and elsewhere in this Quarterly Report on Form 10-Q, that could cause actual results to differ materially from those anticipated by the Company's management. The Private Securities Litigation Reform Act of 1995 (the "Act") provides certain "safe harbor" provisions for forward-looking statements. All forward-looking statements made in this Quarterly Report on Form 10-Q are made pursuant to the Act. The Company undertakes no obligation to publicly release the results of any revisions to its forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected events. The Company cautions readers that important factors may affect the Company’s actual results and could cause such results to differ materially from forward-looking statements made by or on behalf of the Company. These factors include the Company’s lack of historically profitable operations, dependence on key personnel, the success of the Company’s business, ability to manage anticipated growth and other factors identified in the Company's filings with the Securities and Exchange Commission, press releases and/or other public communications. Unless the context otherwise requires, the words “Ehouse,” the "Company," "we," "us" and "our" refer to Ehouse Global, Inc.
Reverse Merger and Spinoff
Effective June 30, 2013, Ehouse entered into a Share Exchange Agreement (the “Exchange Agreement”) by and among (i) Ehouse (ii) NutraLiquids, LLC and (iii) the shareholders of NutraLiquids, pursuant to which the holders of 100% of the outstanding units of NutraLiquids transferred to Ehouse all of the units of NutraLiquids in exchange for the issuance of 52,000,000 shares (the “Shares”) of Ehouse common stock (the “Share Exchange”). As a result of the Share Exchange, NutraLiquids became a wholly-owned subsidiary of Ehouse.
Effective June 30, 2013, Ehouse entered into a Spinoff Agreement with Scott Corlett, its former President and largest shareholder, under which Ehouse assigned and transferred to Mr. Corlett all of Ehouse’s rights, title and interest in and to the operating assets specifically associated with its packaging business in exchange for which Mr. Corlett agreed to assume the operating liabilities specifically associated with the packaging business as defined in the Agreement and return 198,000,000 shares of Ehouse’s common stock owned by him.
As a result of the Spinoff Agreement, Ehouse ceased to be a company engaged in the commercial packaging market. Ehouse’s operations are now conducted through NutraLiquids and primarily consist of development of and plan to sell liquid nutritional beverages.
The merger was accounted for as a reverse acquisition and recapitalization. NutraLiquids is the acquirer for accounting purposes, and Ehouse is the issuer. Accordingly, NutraLiquids' historical financial statements for periods prior to the acquisition become those of the acquirer retroactively restated for the equivalent number of shares issued in the merger. Reported operations prior to the merger are those of NutraLiquids. No Ehouse operating results from prior to the merger date are included in reported financial statements of operations. Earnings per share for the period prior to the merger are restated to reflect the equivalent number of shares outstanding.
Operations
NutraLiquids is a development stage business that commenced formal operations on November 16, 2010. Prior to commencing formal operations, its President, Scott Corlett, and some colleagues incurred costs of approximately $500,000 to develop the idea of creating a comprehensive line of natural liquid dietary aids and nutritional supplements which could be packaged and sold in single serving pouches. These costs were incurred prior to the commencement of the formal operations and are not included in any of the Company’s financial statements.
Since commencing formal operations, the Company has continued developing the product line, developed marketing approaches and has located entities to manufacture products and packaging and distribute finished products. While no written agreements have been executed, the Company is confident that it has the operational structure in place.
13 |
From a marketing perspective, we will emphasize large supermarket and other convenience store chains and will also sell product on the Internet. The emphasis since developing the product line has been to obtain sources of debt and/or equity financing to enable the production and distribution of our products as well as undertaking a formal marketing program. We are actively seeking such funds but cannot provide a likely forecast as to the timing or success of our efforts. We will commence production and distribution as soon as funds are available to us.
Results of Operations
For the six months ended June 30, 2014 and June 30, 2013
A summary of our operations for the six months ended June 30, 2014 and 2013 follows:
2014 | 2013 | |||||||
Revenue | $ | - | $ | - | ||||
Operating Expenses | 633,556 | 7,993 | ||||||
Other (Income) Expense | 735,639 | - | ||||||
Net Income/(Loss) | $ | (1,369,195 | ) | $ | 7,993 |
Other Income (Expense) for the six months ended June 30, 2014 consists of the following:
Interest Expense | $ | (310,747 | ) | |
Derivative Interest Expenses | (1,095,904 | ) | ||
Change in fair value of embedded derivative liabilities | 671,012 | |||
Total | $ | (735,639 | ) |
Revenues
For the six months ended June 30, 2014 and June 30, 2013 the Company generated $0 in revenue.
Operating Expenses
Total operating expenses for the six months ended June 30, 2014 and June 30, 2013 were $635,556 and $7,993, respectively, representing an increase of $625,563. This increase in total operating expenses is mostly attributable to Shares issued for services.
Other Expenses
Other expenses for the six months ended June 30, 2014 and June 30, 2013 were 735,639 and $0, respectively. For the six months ended June 30, 2014, the other expenses were due to derivative interest expense of ($1,095,904), interest expenses of ($310,747), and changes in derivative liabilities of $671,012.
Net Loss
Net loss for the six months ended June 30, 2014 and June 30, 2013 were ($1,369,195) and $7,993 respectively. The increase in net loss is mostly attributable to the increase in operating expenses and derivative expenses.
Liquidity
The Company has 100,292 of cash on hand as of June 30, 2014. We currently have very limited cash to continue operations for 12 months.
We intend to rely upon the issuance of common stock and loans and advances from shareholders to fund administrative expenses pending acquisition of an operating company. However, our shareholders are under no obligation to provide such funding, and there can be no assurance, however, that any of the contemplated financing arrangements described herein will be available and, if available, can be obtained on terms favorable to the Company
As discussed above, the Company had a net loss of ($1,369,195) for the six months ended June 30, 2014. The Company also had a stockholder's deficiency of (1,224,621) and a working capital deficiency of ($705,493) as of June 30, 2014 and cash used in operations for the six month period ended June 30, 2014 was ($403,557).
14 |
Off Balance Sheet Arrangements
We do not have any transactions, arrangements and other relationships with unconsolidated entities that will affect our liquidity or capital resources. We have no special purpose entities that provide off-balance sheet financing, liquidity or market or credit risk support, nor do we engage in swap agreements, or outsourcing of research and development services, that could expose us to liability that is not reflected on the face of our financial statements.
Recently Issued Accounting Pronouncements
There were no new accounting pronouncements that had or are expected to have a significant impact on the Company’s operating results or financial position.
Critical Accounting Policies
The preparation of financial statements and related notes requires us to make judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.
An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the financial statements.
Financial Reporting Release No. 60 requires all companies to include a discussion of critical accounting policies or methods used in the preparation of financial statements. There are no critical policies or decisions that rely on judgments that are based on assumptions about matters that are highly uncertain at the time the estimate is made. Note 2 to the financial statements included in the Company’s Annual Report on Form 10K includes a summary of the significant accounting policies and methods used in the preparation of our financial statements.
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).
ITEM 4 CONTROLS AND PROCEDURES
Disclosure controls and procedures are controls and other procedures that are designed to provide reasonable assurances that information required to be disclosed by the Company in its periodic reports filed or submitted by the Company under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurances that information required to be disclosed by the Company in its periodic reports that are filed under the Exchange Act is accumulated and communicated to our Principal Executive Officer, as appropriate to allow timely decisions regarding required disclosure.
Evaluation of disclosure controls and procedures.
As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of management including our Principal Executive Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on the evaluation, the Company's Principal Executive Officer has concluded that the Company's disclosure controls and procedures are designed to provide reasonable assurances that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and are operating in an effective manner.
Changes in internal controls over financial reporting.
There were no changes in the Company's internal controls over financial reporting or in other factors that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
This quarterly report does not include an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management's report in this quarterly report.
15 |
PART II: OTHER INFORMATION
No legal proceedings were initiated by or served upon the Company in the three-month period ended June 30, 2014.
From time to time the Company may be named in claims arising in the ordinary course of business. Currently, no legal proceedings or claims, other than those disclosed above, are pending against or involve the Company that, in the opinion of management, could reasonably be expected to have a material adverse effect on its business and financial condition.
Not required of smaller reporting companies.
ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
On April 7, 2014, the Company entered into an agreement with an accredited investor whereby the Company will issue up to $112,000 in a convertible note. The note matures on October 7, 2014 and bears interest at an annual 12%. The conversion price equals 50% of the market price, which is the lowest trading price over the previous 20 trading days.
On April 8, 2014 the Company entered into an agreement with an accredited investor whereby the Company will issue up to $53,000 in a convertible note. The note bears interest of 8% per year. The conversion price equals 58% of the market price, which is the average of the three lowest trading price over the previous 15 trading days. The company received $ 32,500 on April 30, 2014.
On April 11, 2014, the Company entered into an agreement with an accredited investor whereby the Company will issue up to $57,836 in a convertible note. The note matures on April 11, 2016 and bears interest at an annual rate of 12%. The conversion price equals 60% of the market price, which is the lowest trading price over the previous 25 trading days or $0.012.
On May 21, 2014, the Company entered into an agreement with an accredited investor whereby the Company will issue up to $26,500 in a convertible note. The note matures on May 21, 2015, and bears interest at an annual rate of 8%. The conversion price equals 55% of the market price, which is the lowest bid over the previous 15 trading days.
On May 23, 2014, the Company entered into an agreement with an accredited investor whereby the Company will issue up to $37,500 in a convertible note. The note matures on November 3, 2014, and bears interest at an annual rate of 0%. The conversion price equals 58% of the market price, which is the average of the three lowest trading prices over the previous 15 trading days.
On June 27, 2014, the Company entered into an agreement with an accredited investor whereby the Company will issue up to $25,000 in a convertible note. The note bears interest of 8% per year. The Company received $22,500 on June 27, 2014. The conversion price equals 58% of the market price, which is the average of the three lowest trading prices over the previous 15 trading days.
On July 3, 2014 the Company entered into an agreement with an accredited investor whereby the company will issue up to $ 37,500 in a convertible note at 8% per year. The company received $25,000 cash.
All shares were issued in reliance upon Section 4(2) of the Securities Act of 1933. No underwriters were used in any of the above-referenced sales.
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4 - MINE SAFETY DISCLOSURES
Not applicable.
None.
16 |
Exhibit Number | Description | |
31.1 |
Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.1NS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definitions Linkbase Document |
Signature
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Ehouse Global, Inc. | ||
(Registrant) | ||
/s/ Scott Corlett | ||
Scott Corlett | ||
Title: President and Chief Financial Officer | ||
August 19, 2014 |
17 |
Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND
PRINCIPAL FINANCIAL OFFICER,
PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a)
AS ADOPTED PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Scott Corlett, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of EHouse Global, 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 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 controls 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; |
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; |
5. The registrant’s other certifying officer 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 function):
a) all significant deficiencies and material weaknesses in the design or operation of internal controls 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 controls over financial reporting.
Dated: August 19, 2014 | By: | /s/ Scott Corlett | |
Scott Corlett Chief Executive Officer (Principal Executive Officer and interim Principal Financial Officer) |
Exhibit 32.1
CERTIFICATION PURSUANT TO 18 U.SC. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of EHouse Global, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Scott Corlett, chief executive officer and interim principal financial officer of the Company, certifies, pursuant to 18 U.S.C. section 1350 of the Sarbanes-Oxley Act of 2002, that:
(1) | 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 the Company. |
Date: August 19, 2014 | By: | /s/ Scott Corlett | |
Scott Corlett Chief Executive Officer (Principal Executive Officer and interim Principal Financial Officer) |
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
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