SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[x] Quarterly Report Pursuant to Section 13 or 15(d) Securities Exchange Act of 1934 for Quarterly Period Ended September 30, 2012
-OR-
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities And Exchange Act of 1934 for the transaction period from _________ to________
Commission File Number 333-39942
American Business Services, Inc.
(Exact name of registrant as specified in its charter)
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Colorado |
| 84-1194104 |
(State or other jurisdiction of incorporation or organization) |
| (I.R.S. Employer Identification Number) |
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4980 Silver Pine Drive Castle Rock, Colorado |
| 80108 |
(Address of principal executive offices) |
| (Zip Code) |
303-730-7939
(Registrant's telephone number, including area code)
Indicate by check mark whether the issuer (1) 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 (section 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 [ ] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerate filer, or a small reporting company as defined by Rule 12b-2 of the Exchange Act):
Large accelerated filer [ ] |
| Non-accelerated filer [ ] |
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 Exchange Act). Yes [ ] No [x]
The number of outstanding shares of the registrant's common stock, November 14, 2012: Common Stock - 6,480,000
2
AMERICAN BUSINESS SERVICES, INC.
FORM 10-Q
For the quarterly period ended September 30, 2012
INDEX
PART 1 FINANCIAL INFORMATION
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| Page |
Item 1. Financial Statements (Unaudited) |
| 4 |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |
| 10 |
Item 3. Quantitative and Qualitative Disclosure About Market Risk |
| 13 |
Item 4. Controls and Procedures |
| 13 |
PART II OTHER INFORMATION
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Item 1. Legal Proceedings |
| 14 |
Item 1A. Risk Factors |
| 14 |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
| 14 |
Item 3. Defaults upon Senior Securities |
| 14 |
Item 4. Mine Safety Disclosures |
| 14 |
Item 5. Other Information |
| 14 |
Item 6. Exhibits |
| 14 |
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SIGNATURES |
| 15 |
3
AMERICAN BUSINESS SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
| Dec. 31, 2011 |
| September 30, 2012 (Unaudited) |
ASSETS |
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Current assets |
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Cash | $ 3,059 |
| $ 13,456 |
Total current assets | 3,059 |
| 13,456 |
Total Assets | $ 3,059 |
| $ 13,456 |
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LIABILITIES & STOCKHOLDERS' EQUITY |
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Current liabilities |
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Accrued interest payable | $ - |
| $ 359 |
Note payable - related party - current portion | 11,800 |
| 11,800 |
Total current liabilities | 11,800 |
| 12,159 |
Notes payable - related party | 12,000 |
| 12,000 |
Total Liabilities | 23,800 |
| 24,159 |
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Stockholders' Equity |
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Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued and outstanding | - |
| - |
Common stock, $.001 par value; 90,000,000 shares authorized; 6,480,000 shares issued and outstanding | 6,480 |
| 6,480 |
Additional paid in capital | (1,680) |
| (1,680) |
Retained earnings (deficit) | (25,541) |
| (15,503) |
Total Stockholders' Equity | (20,741) |
| (10,703) |
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Total Liabilities and Stockholders' Equity | $ 3,059 |
| $ 13,456 |
The accompanying notes are an integral part of the consolidated financial statements.
4
AMERICAN BUSINESS SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended September 30, 2011 |
| Three Months Ended September 30, 2012 |
| Nine Months Ended September 30, 2011 |
| Nine Months Ended September 30, 2012 |
Revenue | $14,980 |
| $12,080 |
| $68,051 |
| $34,080 |
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Expenses |
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Depreciation | - |
| - |
| 459 |
| - |
Reserve expense - note receivable | 2,000 |
| - |
| 10,000 |
| - |
General and administrative | 42,583 |
| 1,832 |
| 119,515 |
| 23,683 |
| 44,583 |
| 1,832 |
| 129,974 |
| 23,683 |
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Income (loss) from operations | (29,603) |
| 10,248 |
| (61,923) |
| 10,397 |
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Other income (expense): |
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Other income | - |
| - |
| 151 |
| - |
Interest expense | - |
| (121) |
| - |
| (359) |
| - |
| (121) |
| 151 |
| (359) |
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Income (loss) before provision for income taxes | (29,603) |
| 10,127 |
| (61,772) |
| 10,038 |
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Provision for income tax | - |
| - |
| - |
| - |
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Net income (loss) | $(29,603) |
| $10,127 |
| $(61,772) |
| $10,038 |
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Net income (loss) per share |
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(Basic and fully diluted) | $ (0.00) |
| $ 0.00 |
| $ (0.01) |
| $ 0.00 |
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Weighted average number of common shares outstanding | 6,000,000 |
| 6,480,000 |
| 6,000,000 |
| 6,480,000 |
The accompanying notes are an integral part of the consolidated financial statements.
5
AMERICAN BUSINESS SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended September 30, 2011 |
| Nine Months Ended September 30, 2012 |
Cash Flows From Operating Activities: |
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Net income (loss) | $(61,772) |
| $10,038 |
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Adjustments to reconcile net loss to net cash provided by (used for) operating activities: |
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Depreciation | 459 |
| - |
Reserve expense - notes receivable | 10,000 |
| - |
Accrued payables | - |
| 359 |
Net cash provided by (used for) operating activities | (51,313) |
| 10,397 |
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Cash Flows From Investing Activities: |
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| - |
| - |
Net cash provided by (used for) investing activities | - |
| - |
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Cash Flows From Financing Activities: |
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| - |
| - |
Net cash provided by (used for) financing activities | - |
| - |
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Net Increase (Decrease) In Cash | (51,313) |
| 10,397 |
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Cash At The Beginning Of The Period | 60,900 |
| 3,059 |
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Cash At The End Of The Period | $ 9,587 |
| $ 13,456 |
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Schedule Of Non-Cash Investing And Financing Activities |
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None |
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Supplemental Disclosure |
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Cash paid for interest | $ - |
| $ - |
Cash paid for income taxes | $ - |
| $ - |
The accompanying notes are an integral part of the consolidated financial statements.
6
AMERICAN BUSINESS SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
(Unaudited)
NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
American Business Services, Inc. (the Company), was incorporated in the State of Colorado on September 20, 1991. The Company consults with companies in the area of marketing, raising capital, operations, going public, merging from a private company into a public company, going private and other areas of consulting. The Company may also engage in any other business permitted by law, as designated by the Board of Directors of the Company.
Basis of Presentation
The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of operations for a full year.
Principles of consolidation
The accompanying consolidated financial statements include the accounts of American Business Services, Inc. and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.
Cash and cash equivalents
The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents.
Accounts receivable
The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary.
7
Property and equipment
Property and equipment are recorded at cost and depreciated under accelerated and straight line methods over each item's estimated useful life.
Long-Lived Assets
In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that may suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value.
Revenue recognition
Revenue is recognized on an accrual basis after services have been performed under contract terms, the event price to the client is fixed or determinable, and collectability is reasonably assured. Standard contract policy calls for partial payment up front with balance due upon receipt of final billing.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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.
Income tax
The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. 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. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
8
Net income (loss) per share
The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share.
Financial Instruments
The carrying value of the Companys financial instruments, including cash and cash equivalents and accrued payables, as reported in the accompanying balance sheet, approximates fair value.
Stock based compensation
The Company accounts for employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable.
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ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
Trends and Uncertainties.
We are currently not aware of any trends that are reasonably likely to have a material impact on our liquidity. The company may never become profitable if it does not obtain sufficient funds or obtain alternate financing to complete our new business plan.
In October 2011, ABS changed its tax status from a Subchapter S corporation to a Subchapter C corporation.
Promissory Notes Outstanding
As of September 30, 2012, ABS had six promissory notes outstanding as described below:
1. A convertible promissory note to VentureVest Capital Corporation, dated December 31, 2007 in the amount of $11,800 for money which VentureVest Capital loaned to ABS in 2007, which loan was made to be used as working capital for ABS. This is not an arms length transaction and was a related party transactions, as VentureVest Capital Corporation is controlled by Mr. Ray, an officer and director of ABS. This note matured on December 31, 2011, and was renewed on January 1, 2012. The note now matures on December 31, 2012. The note bears an annual interest of 4% as of January 1, 2010. No interest has been paid on this note to date.
Promissory Notes Receivable as of September 30, 2012.
There were three convertible promissory notes made to Centennial Growth Equities in 2007 and 2008, for a total of $25,100, which was for funds loaned to Centennial Growth Equities and was used as working capital. These notes were not arms length transactions and were related party transactions as Mr. Ray, the president of ABS, was also a principal of Centennial Growth Equities at the time the transactions were made.
a. A note from Centennial Growth Equities, Inc. a company controlled by Mr. Ray, an officer and director at the time the note was made, dated January 10, 2007 in the amount of $17,000, for money that ABS loaned to Centennial Growth Equities in 2006. This note matured on December 31, 2008, and was renewed through December 31, 2012. The note has been accruing interest as of January 1, 2011 at an annual interest of 4% per annum. No interest has been paid on this note to date.
b. A note from Centennial Growth Equities, Inc. a company controlled by Mr. Ray, an officer and director at the time the note was made, dated January 10, 2007, in the amount of $4,200, for money that ABS loaned to Centennial Growth Equities in 2007. This note matured on December 31, 2011, and was renewed through December 31, 2013. The note
10
began accruing interest as of January 1, 2012 at a rate of 4% per annum. No interest has been paid on this note to date.
c. A note from Centennial Growth Equities, Inc. a company controlled by Mr. Ray, and officer and director at the time the note was made, dated January 10, 2007 in the amount of $3,900 for money that ABS loaned to Centennial Growth Equities in 2008. This note matured on December 31, 2011, and was renewed through December 31, 2012. The note began accruing interest as of January 1, 2012 at a rate of 4% per annum. No interest has been paid on this note to date.
d. A convertible note from Strategic Dental Management Corp., an unaffiliated entity controlled by Brian Ray, son of Mr. Phil Ray, an officer and director of ABS. This is a related party transaction. The note is dated June 26, 2010 in the amount of $6,000 for money that ABS loaned to Strategic Dental Management to be used as working capital. The note is non-interest bearing through December 2011, and bears a monthly compound interest thereafter at 6% per annum. The Note was renewed through December 31, 2013. No interest has been paid on this note to date.
e. A note from Original Source Music, Inc., an unaffiliated entity, dated June 1, 2010 in the amount of $2,000 for money loaned to Original Source Music by ABS in 2010. This amount was used as working capital.
The Company lends money through notes receivable on an ongoing basis to various companies related by common control. The notes are due to be repaid to the Company at various dates through December 2011. The notes are non-interest bearing through the due dates, bearing monthly compound interest thereafter at 4%-6% per annum. The Company recorded no interest revenue on the notes receivable in 2010 and 2011. The Company has established a reserve for any loans not repaid within one year. At December 31, 2010 and 2011 the Company had $35,100 in notes receivable outstanding, with a corresponding note reserve of $25,100 and $35,100. Note reserve expense in 2010 and 2011 was $3,900 and $10,000.
As of December 31, 2010 and 2011 the Company owed a related party under a note payable $11,800, due in full December 31, 2013, bearing no interest until December 31, 2013 with monthly compound interest thereafter at 4% per annum. The note is convertible anytime at the holders option into common shares of the Company at $.05 per share.
Liquidity and Capital Resources
For the nine months ended September 30, 2012 and 2011, we did not pursue any investing activities.
11
For the nine months ended September 30, 2012 and 2011, we did not pursue any financing activities.
Results of Operations
For the three months ended September 30, 2012, we had revenue of $12,080. We had general and administrative expenses of $1,832 and interest expenses of $121. As a result, we had net income of $10,127 for the three months ended September 30, 2012.
Comparatively, for the three months ended September 30, 2011, we had revenues of $14,980. We had reserve expense note receivable of $2,000, and general and administrative expenses of $42,583. As a result, we had net loss of $29,603 for the three months ended September 30, 2011.
The decrease in the loss from operations between the three months ended September 30, 2011 and 2012 was primarily due to reduced general and administrative costs as a result of our shift in business focus.
For the nine months ended September 30, 2012, we earned revenues of $34,080. We had general and administrative expenses of $23,683, and interest expense of $359. As a result, we had net income of $10,038 for the nine months ended September 30, 2012.
Comparatively, for the nine months ended September 30, 2011, we had revenues of $68,051. We had depreciation expenses of $459, reserve expense note receivable of $10,000, and general and administrative expenses of $119,515. We had other income of $151. As a result, we had net loss of $61,772 for the nine months ended September 30, 2011.
The decrease in the loss from operations between the nine months ended September 30, 2011 and 2012 was primarily due to reduced general and administrative costs as well as increased revenues as a result of our shift in business focus.
We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources. If we are unable to raise funds for the above purposes, it is uncertain if we will be able to continue as a going operation.
In June 2010, ABS sold shares of stock of Community Alliance, Inc. for a net amount of $109,494. There was 0 basis in this stock. The stock was received when Fresh Ideas Media, Inc., a company of which ABS owns stock, did a share for share spinout of Community Alliance, Inc. in May 2007.
ABS acquired 50,000 shares of Fresh Ideas Media, Inc. on May 23, 2007 for $0.10 per share for a total of $5,000.
12
In March 2009, Community Alliance, Inc., a wholly owned subsidiary, was spun out of the parent company, Fresh Ideas Media, Inc. This was done as a Form 10 spin-out, and done on a share for share basis. Thus, as a result of the spin, ABS received 50,000 shares of common stock of Community Alliance, Inc. While ABS did pay for the shares of Fresh Ideas Media, Inc., ABS received the 50,000 shares of Community Alliance, Inc. with no payment.
We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.
General and administrative expenses will continue to increase as we implement sales and marketing initiatives.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Not applicable for smaller reporting companies.
Item 4. Controls and Procedures
During the period ended September 30, 2012, there were no changes in our internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our chief executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended, as of September 30, 2012. Based on this evaluation, our chief executive officer and principal financial officers have concluded such controls and procedures to be effective as of September 30, 2012 to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act is recorded, processed, summarized and reported, within the time periods specified in the Commissions rules and forms and to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuers management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
13
PART II OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 1A. Risk Factors
Not applicable for smaller reporting companies
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None
Item 3. Defaults Upon Senior Securities.
None
Item 4. Mine Safety Disclosures
Not Applicable
Item 5. Other Information
None
Item 6. Exhibits
Exhibit 31* - Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32* - Certifications 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
* Filed herewith
**XBRL (Extensible Business Reporting Language) information is 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, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
14
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
Dated: November 14, 2012
American Business Services, Inc.
By:
/s/Phil E. Ray
Phil E. Ray
Chief Executive Officer
15
302 CERTIFICATION
I, Phil E. Ray, certify that:
1. I have reviewed this quarterly report on Form 10-Q of American Business Services, 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. I am 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 my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me 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 my 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 my 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants 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: November 14, 2012
/s/Phil E. Ray
Phil E. Ray
Chief Executive Officer
Chief Financial Officer
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
The undersigned officer of American Business Services, Inc. (the "Company"), hereby certifies, to such officer's knowledge, that the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 (the "Report") fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/Phil E. Ray
Phil E. Ray
Chief Executive Officer
Chief Financial Officer
November 14, 2012
Note 1. Organization, Operations and Summary of Significant Accounting Policies: Accounts Receivable (Policies)
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9 Months Ended |
---|---|
Sep. 30, 2012
|
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Accounts Receivable: | |
Accounts Receivable | Accounts receivable The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. |
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Note 1. Organization, Operations and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Cash and Cash Equivalents: | |
Cash and Cash Equivalents | Cash and cash equivalents
The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents. |
American Business Services, Inc. - Consolidated Balance Sheets (USD $)
|
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Cash | $ 13,456 | $ 3,059 |
Total Current Assets | 13,456 | 3,059 |
TOTAL ASSETS | 13,456 | 3,059 |
Accrued interest payable | 359 | 0 |
Note payable - related party - current portion | 11,800 | 11,800 |
Total Current Liabilities | 12,159 | 11,800 |
Notes payable - related party | 12,000 | 12,000 |
Total Liabilities | 24,159 | 23,800 |
Preferred stock, $0.001 par value, 10,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 90,000,000 shares authorized; 6,480,000 shares issued and outstanding | 6,480 | 6,480 |
Additional paid-in capital | (1,680) | (1,680) |
Retained earnings (deficit) | (15,503) | (25,541) |
Total Stockholders' Equity | (10,703) | (20,741) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 13,456 | $ 3,059 |
Note 1. Organization, Operations and Summary of Significant Accounting Policies: Business Description and Basis of Presentation (Policies)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Business Description and Basis of Presentation: | |
Business Description and Basis of Presentation | American Business Services, Inc. (the Company), was incorporated in the State of Colorado on September 20, 1991. The Company consults with companies in the area of marketing, raising capital, operations, going public, merging from a private company into a public company, going private and other areas of consulting. The Company may also engage in any other business permitted by law, as designated by the Board of Directors of the Company.
Basis of Presentation
The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of operations for a full year. |
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Note 1. Organization, Operations and Summary of Significant Accounting Policies: Principles of Consolidation (Policies)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Principles of Consolidation: | |
Principles of Consolidation | Principles of consolidation The accompanying consolidated financial statements include the accounts of American Business Services, Inc. and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. |
American Business Services, Inc. - Consolidated Statements of Operations (Unaudited) (USD $)
|
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Revenue | $ 12,080 | $ 14,980 | $ 34,080 | $ 68,051 |
Depreciation | 0 | 0 | 0 | 459 |
Reserve expense - notes receivable | 0 | 2,000 | 0 | 10,000 |
General and administrative | 1,832 | 42,583 | 23,683 | 119,515 |
Total operating expenses | 1,832 | 44,583 | 23,683 | 129,974 |
Income (loss) from operations | 10,248 | (29,603) | 10,397 | (61,923) |
Other income | 0 | 0 | 0 | 151 |
Interest expense | (121) | 0 | (359) | 0 |
Income (loss) before provision for income taxes | 10,127 | (29,603) | 10,038 | (61,127) |
Provision for income tax | 0 | 0 | 0 | 0 |
Net income (loss) | $ 10,127 | $ (29,603) | $ 10,038 | $ (61,772) |
Net income (loss) per share (Basic and fully diluted) | $ 0.00 | $ 0.00 | $ 0.00 | $ (0.01) |
Weighted Average Number of Common Shares Outstanding | 6,480,000 | 6,000,000 | 6,480,000 | 6,000,000 |
Note 1. Organization, Operations and Summary of Significant Accounting Policies: Stock Based Compensation (Policies)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Stock Based Compensation: | |
Stock Based Compensation | Stock based compensation
The Company accounts for employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable. |
Document and Entity Information (USD $)
|
9 Months Ended | |
---|---|---|
Sep. 30, 2012
|
Jun. 30, 2012
|
|
Document and Entity Information: | ||
Entity Registrant Name | American Business Services, Inc. | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2012 | |
Amendment Flag | false | |
Entity Central Index Key | 0001532882 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 6,480,000 | |
Entity Public Float | $ 0 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | Yes | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2012 | |
Document Fiscal Period Focus | Q3 |
American Business Services, Inc. - Consolidated Statements of Cash Flows (Unaudited) (USD $)
|
9 Months Ended | |
---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Net income (loss) | $ 10,038 | $ (61,772) |
Depreciation | 0 | 459 |
Reserve expense - notes receivable | 0 | 10,000 |
Accrued payables | 359 | 0 |
Net cash provided by (used for) operating activities | 10,397 | (51,313) |
Net cash provided by (used for) investing activities | 0 | 0 |
Net cash provided by (used for) financing activities | 0 | 0 |
Net Increase (Decrease) in Cash | 10,397 | (51,313) |
Cash Balance at beginning of period | 3,059 | 60,900 |
Cash Balance at end of period | 13,456 | 9,587 |
Cash paid for interest | 0 | 0 |
Cash paid for income taxes | $ 0 | $ 0 |
Note 1. Organization, Operations and Summary of Significant Accounting Policies: Revenue Recognition (Policies)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Revenue Recognition: | |
Revenue Recognition | Revenue recognition Revenue is recognized on an accrual basis after services have been performed under contract terms, the event price to the client is fixed or determinable, and collectability is reasonably assured. Standard contract policy calls for partial payment up front with balance due upon receipt of final billing. |
Note 1. Organization, Operations and Summary of Significant Accounting Policies: Long-lived Assets (Policies)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Long-lived Assets: | |
Long-lived Assets | Long-Lived Assets In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that may suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value. |
Note 1. Organization, Operations and Summary of Significant Accounting Policies: Net Income (loss) Per Share (Policies)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Net Income (loss) Per Share: | |
Net Income (loss) Per Share | Net income (loss) per share
The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share. |
Note 1. Organization, Operations and Summary of Significant Accounting Policies: Use of Estimates (Policies)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Use of Estimates: | |
Use of Estimates | Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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. |
Note 1. Organization, Operations and Summary of Significant Accounting Policies: Income Tax (Policies)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Income Tax: | |
Income Tax | Income tax
The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. 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. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
Note 1. Organization, Operations and Summary of Significant Accounting Policies: Financial Instruments (Policies)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Financial Instruments: | |
Financial Instruments | Financial Instruments The carrying value of the Companys financial instruments, including cash and cash equivalents and accrued payables, as reported in the accompanying balance sheet, approximates fair value. |
Note 1. Organization, Operations and Summary of Significant Accounting Policies
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Note 1. Organization, Operations and Summary of Significant Accounting Policies: | |
Note 1. Organization, Operations and Summary of Significant Accounting Policies: | NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
American Business Services, Inc. (the Company), was incorporated in the State of Colorado on September 20, 1991. The Company consults with companies in the area of marketing, raising capital, operations, going public, merging from a private company into a public company, going private and other areas of consulting. The Company may also engage in any other business permitted by law, as designated by the Board of Directors of the Company.
Basis of Presentation
The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of operations for a full year. Principles of consolidation The accompanying consolidated financial statements include the accounts of American Business Services, Inc. and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.
Cash and cash equivalents
The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents. Accounts receivable The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary.
Property and equipment
Property and equipment are recorded at cost and depreciated under accelerated and straight line methods over each item's estimated useful life. Long-Lived Assets In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that may suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value. Revenue recognition Revenue is recognized on an accrual basis after services have been performed under contract terms, the event price to the client is fixed or determinable, and collectability is reasonably assured. Standard contract policy calls for partial payment up front with balance due upon receipt of final billing.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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.
Income tax
The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. 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. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
Net income (loss) per share
The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share. Financial Instruments The carrying value of the Companys financial instruments, including cash and cash equivalents and accrued payables, as reported in the accompanying balance sheet, approximates fair value.
Stock based compensation
The Company accounts for employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable. |
Note 1. Organization, Operations and Summary of Significant Accounting Policies: Property and Equipment (Policies)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Property and Equipment: | |
Property and Equipment | Property and equipment
Property and equipment are recorded at cost and depreciated under accelerated and straight line methods over each item's estimated useful life. |