10-Q 1 g8735.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 


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

For the quarterly period ended June 30, 2019

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

For the transition period from ______ to _______

Commission File No. 333-216086
 


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

Nevada
61-1787148
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
   
22 The Cedars Cruagh Wood,
Stepaside, Dublin 18, Ireland
 
(Address of principal executive offices)
(Zip Code)

941-363-6663
(Registrant’s telephone number, including area code)


(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
 
Trading Symbol(s)
 
Name of exchange on which registered
         
Common Stock   ALFA
  N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such fling requirements for the past 90 days. Yes   No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer 
 
Accelerated filer 
Non-Accelerated filer
Smaller reporting company
Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be fled by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class
 
Outstanding as of August 14, 2019
     
Common Stock: $0.001
 
7,315,000
 


 Table of Contents

PART I - FINANCIAL INFORMATION
 
   
Item1. Financial Statements
3
   
        Notes to the Financial Statements (Unaudited)
9
   
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
15
   
Item 3. Quantitative and Qualitative Disclosures about Market Risk.
18
   
Item 4. Controls and Procedures.
18
   
PART II - OTHER INFORMATION
 
   
Item 1. Legal Proceeding
19
   
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
19
   
Item 3. Default Upon Senior Securities
19
   
Item 4. Mine Safety Disclosures
19
   
Item 5. Other Information
19
   
Item 6. Exhibits
19
 
2


 
PART I - FINANCIAL INFORMATION
 
Item1.  Financial Statements
 
Alfacourse Inc.

Period Ended June 30, 2019

Index to the Financial Statements

Contents
Page(s)
   
Balance Sheets as of June 30, 2019 (unaudited) and December 31, 2018
4
   
Statements of Operations for the Three Months Ended June 30, 2019 and 2018 (unaudited)
5
   
Statements of Operations for the Six Months Ended June 30, 2019 and 2018 (unaudited)
6
   
Statements of Cash Flow for the Three Months Ended June 30, 2019 and 2018 (unaudited)
7
   
Statements of Shareholders Equity for the Three Months ended June 30, 2019 and 2018 (unaudited) 8
   
Notes to the Financial Statements (Unaudited)
9

3


Alfacourse Inc.
Balance Sheets
As of June 30, 2019 (Unaudited) and December 31, 2018


   
June 30, 2019
   
December31, 2018
 
   
(Unaudited)
       
ASSETS
           
             
Current Assets
           
Cashand Cash Equivalents
 
$
4,206
   
$
6,139
 
Total Current Assets
   
4,206
     
6,139
 
                 
Computer Equipment (Net)
   
430
     
1,240
 
                 
Total Assets
 
$
4,636
   
$
7,379
 
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
                 
Accounts Payable and accrued expenses
 
$
2,249
   
$
4,250
 
Income Tax Payables
   
-
     
-
 
Due to Related Party
   
13,224
     
3,224
 
Total Liabilities
   
15,473
     
7,474
 
                 
Stockholders’ Equity
               
Common Stock, $0.001 par value, 75,000,000 shares authorized,
               
7,315,000 shared issued and outstanding, respectively
   
7,315
     
7,315
 
Additional Paid-in Capital
   
20,835
     
20,835
 
Retained Earnings (Loss)
   
(38,987
)
   
(28,245
)
Total Stockholders’ Equity
   
(10,837
)
   
(95
)
                 
Total Liabilities and Stockholders’ Equity
 
$
4,636
   
$
7,379
 




The accompanying notes are an integral part of these financial statements.

4


Alfacourse Inc.
Statements of Operations
For the Three Months Ended June 30, 2019 and 2018
(Unaudited)


   
June 30, 2019
   
June 30, 2018
 
             
REVENUE
 
$
-
   
$
-
 
                 
EXPENSES
               
General and Administrative
   
657
     
10,772
 
Professional Fees
   
5,812
     
5,171
 
Total Expenses
   
6,469
     
15,943
 
                 
Income (Loss) from Operations
   
(6,469
)
   
(15,943
)
                 
Income Tax Expense (Recovery)
   
-
     
34
 
                 
Net Income (Loss) After Tax
 
$
(6,469
)
 
$
(15,977
)
                 
Basic and Diluted Net Loss per Common share
 
$
0.00
   
$
0.00
 
                 
Weighted-Average Number of Common Shared Outstanding
   
7,315,000
     
7,315,000
 




The accompanying notes are an integral part of these financial statements.

5


Alfacourse Inc.
Statements of Operations
For the Six Months Ended June 30, 2019 and 2018
(Unaudited)


   
June 30, 2019
   
June 30, 2018
 
             
REVENUE
 
$
-
   
$
-
 
                 
EXPENSES
               
General and Administrative
   
1,789
     
12,023
 
Professional
   
8,953
     
12,314
 
Total Expenses
   
10,742
     
24,337
 
                 
Income (Loss) from Operations
   
(10,742
)
   
(24,337
)
                 
Income Tax Expense (Recovery)
   
-
     
34
 
                 
Net Income (Loss) After Tax
 
$
(10,742
)
 
$
(24,371
)
                 
Basic and Diluted Net Loss per Common share
 
$
0.00
   
$
0.00
 
                 
Weighted-Average Number of Common Shared Outstanding
   
7,315,000
     
7,315,000
 




The accompanying notes are an integral part of these financial statements.

6



Alfacourse Inc.
Statements of Cash Flows
For the Six Months Ended June 30, 2019 and 2018
(Unaudited)


   
June30, 2019
   
June 30, 2018
 
CASH FLOWS FROM OPERATING ACTIVITES:
           
Net Income (Loss)
 
$
(10,742
)
 
$
(24,371
)
Depreciation
   
810
     
810
 
Changes in Operating Assets and Liabilities:
               
Accounts Payable and accrued expenses
   
(2,000
)
   
1,442
 
Income Tax Payable
   
-
     
(708
)
Net Cash from Operating Activities
   
(11,932
)
   
(22,827
)
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Related Party Note Payable
   
10,000
     
(250
)
Proceeds from Sale of Common Shares
   
-
     
-
 
Net Cash Provided by Financing Activities
   
10,000
     
(250
)
                 
Net Increase (Decrease) in Cash
   
(1,932
)
   
(23,078
)
                 
Cash, Beginning of Period
   
6,139
     
31,643
 
                 
Cash, End of Period
 
$
4,206
   
$
8,566
 
                 
Supplemental Disclosure of Cash Flow Information
               
                 
Cash Paid for:
               
Interest
 
$
-
   
$
-
 
Income Taxes
   
-
     
-
 
                 
Non-cash financing and investing activities
               
Assets acquired for debt and reduction in related party payable
 
$
-
   
$
-
 




The accompanying notes are an integral part of these financial statements.

7


Alfacourse Inc.
Statements of Stockholders Equity
For the Six Months ended June 30, 2019 (unaudited)


   
Common
Stock
   
Amount
   
Additional
Paid-in
Capital
   
Retained
Earnings
(Accumulated
Deficit)
   
Equity
 
                                         
Balance, December 31, 2018
   
7,315,000
   
$
7,315
   
$
20,835
   
$
(28,245
)
 
$
(95
)
Issuance of Common Shares for Cash
   
-
     
-
     
-
     
-
     
-
 
Net Income (Loss)
   
-
     
-
     
-
     
(10,742
)
   
(8,493
)
                                         
Balance, June 30, 2019
   
7,315,000
   
$
7,315
   
$
20,835
   
$
(38,987
)
 
$
(10,837
)




The accompanying notes are an integral part of these condensed financial statements.

8


Alfacourse Inc.
Notes to the Financial Statements
(Unaudited)


Note 1 - Organization and Operations

Alfacourse Inc. (the “Company”) was incorporated on February 29, 2016 under the laws of the State of Nevada.  The Company provides video editing services.

Note 2 - Summary of Significant Accounting Policies

The Management of the Company is responsible for the selection and use of appropriate accounting policies and the appropriateness of accounting policies and their application.  Critical accounting policies and practices are those that are both most important to the portrayal of the Company’s financial condition and results and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. The Company’s significant and critical accounting policies and practices are disclosed below as required by generally accepted accounting principles.

Basis of Presentation

The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2018 and notes thereto.

Development Stage Company

The Company is a development stage company as defined in ASC 915 “Development Stage Entities.”. The Company is devoting substantially all of its efforts on establishing the business and its planned principal operations have not commenced. All losses accumulated since inception have been considered as part of the Company's development stage activities.

The Company has elected to adopt application of Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. Upon adoption, the Company no longer presents or discloses inception-to-date information and other remaining disclosure requirements of Topic 915.

Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date(s) of the financial statements and the reported amounts of revenues and expenses during the reporting period(s).

Fair Value Measurements
 
The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.
 
The estimated fair value of certain financial instruments, including cash and cash equivalents are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments.

9



ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:
 
Level 1 — quoted prices in active markets for identical assets or liabilities
Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable
Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

The Company has no assets or liabilities valued at fair value on a recurring basis.

Cash Equivalents

The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents.

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation on property, plant and equipment is calculated on the straight-line method after taking into account their respective estimated residual values over the estimated useful lives of the assets as follows:

Tools and equipment 2 years

Maintenance and repair costs are expensed as incurred, whereas significant renewals and betterments are capitalized.

Related Parties

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

Pursuant to Section 850-10-20 the related parties include (a) affiliates of the Company (“Affiliate” means, with respect to any specified Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act); (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include:  (a) the nature of the relationship(s) involved; (b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

10


Revenue Recognition

In 2014, the FASB issued guidance on revenue recognition (“ASC 606”), with final amendments issued in 2016. The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. The Company has concluded that the new guidance did not require any significant change to its revenue recognition processes.
 
 The Company’s video-editing services are considered to be one performance obligation; therefore, revenue is recognized when services have been provided as each performance obligation is satisfied.
 
Net Income (Loss)per Common Share

Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification.  Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period.  Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants.

There were no potentially dilutive common shares outstanding for the period ended June 30, 2019.

Income Taxes

 Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.
 
Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
  
Earnings per Share
 
The Company has adopted ASC No. 260, “Earnings Per Share” which specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. Basic net loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted earnings per share are the same as basic earnings per share due to the lack of dilutive items in the Company.

Cash Flows Reporting

The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments.  The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification.

11


Subsequent Events

The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued.  Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases, replacing existing lease accounting guidance. The new standard introduces a lessee model that would require entities to recognize assets and liabilities for most leases, but recognize expenses on their income statements in a manner similar to current accounting. The ASU does not make fundamental changes to existing lessor accounting. However, it modifies what qualifies as a sales-type and direct financing lease and related accounting and aligns a number of the underlying principles with those of the new revenue standard, ASU No. 2014-09, such as evaluating how collectability should be considered and determining when profit can be recognized. The guidance eliminates existing real estate-specific provisions and requires expanded qualitative and quantitative disclosures. The standard requires modified retrospective transition by which it is applied at the beginning of the earliest comparative period presented in the year of adoption. The Company adopted the ASU on effective date January 1, 2019. The Company does not have any lease therefore this ASU did not have any impact on the Company’s results of operations and financial condition.

Note 3 – Going Concern

The financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

As reflected in the financial statements, the Company had retained loss of ($38,987) since inception with limited operations with reported loss of ($10,742) for the six months ended June 30, 2019.  These factors raise doubt about the Company’s ability to continue as a going concern.

Although the Company has recognized some nominal amount of revenues since inception, the Company is devoting substantially all of its efforts on establishing the business and its planned principal operations have not commenced.  The Company is attempting to commence operations and generate sufficient revenue; however, the Company’s cash position may not be sufficient to support its daily operations.  While the Company believes in the viability of its strategy to commence operations and generate sufficient revenue and in its ability to raise additional funds, there can be no assurances to that effect.  The ability of the Company to continue as a going concern is dependent upon its ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering.

The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Note 4– Property, Plant and Equipment

Property, Plant and Equipment as follows:

   
June 30, 2019
   
December 31, 2018
 
             
Tools and Equipment
 
$
3,240
   
$
3,240
 
Less: Accumulated Depreciation
   
(2,810
)
   
(2,000
)
Net
 
$
430
   
$
1,240
 

Depreciation expense were $810 and $810 for the six months ended June 30, 2019 and 2018, respectively.

12



Note 5– Stockholders’ Equity

Shares Authorized

Upon formation the total number of shares of all classes of stock which the Company is authorized to issue is Seventy-Five Million (75,000,000) shares of which Seventy-Five Million (75,000,000) shares shall be Common Stock, par value $0.001 per share.

Common Stock

As of June 30, 2019, there were 7,315,000 total shares issued and outstanding.

During the year ended December 31, 2017, the Company has issued 2,315,000 shares to 29 investors at a price of $0.01 per share for aggregate proceeds of $23,150.

Note 6– Related Party Transactions

Free Office Space

The Company has been provided office space by its President at no cost. Management determined that such cost is nominal and did not recognize the rent expense in its financial statement.

Advances from Stockholder

From time to time, the President of the Company advances funds to the Company for working capital purposes.  These advances are unsecured, non-interest bearing and due on demand.  The outstanding balance was $13,224 as of June 30, 2019.

Note 7– Income Taxes

Deferred Tax Assets

At June 30, 2019, the Company had net cumulative operating loss (“NOL”) carry–forwards for Federal income tax purposes of $38,987 that may be offset against future taxable income through 2039.  No tax benefit has been recorded with respect to these net operating loss carry-forwards in the accompanying financial statements as the management of the Company believes that the realization of the Company’s net deferred tax assets of approximately $8,187 was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by the full valuation allowance.

Deferred tax assets consist primarily of the tax effect of NOL carry-forwards which was used to offset tax payable from prior year’s operations.  The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realization.  The current valuation of tax allowance is n/a as of June 30, 2019.

Components of deferred tax assets are as follows:

   
June 30, 2019
 
Net Deferred Tax Asset Non-Current:
     
Net Operating Loss Carry-Forward before income taxes
 
(38,987
)
Income tax rate
   
21
%
Expected Income Tax Benefit from NOL Carry-Forward
   
8,187
 
Less: Valuation Allowance
   
(8,187
)
Deferred Tax Asset, Net of Valuation Allowance
 
$
-
 


13


Income Tax Provision in the Statement of Operations

A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows:

   
June 30, 2109
 
       
Federal statutory income tax rate
 
21.0
%
Increase (reduction) in income tax provision resulting from:
       
Net Operating Loss (NOL) carry-forward
   
(21.0
%)
Effective income tax rate
   
0.0
%

Tax Returns Remaining subject to IRS Audits

The Company has filed its corporation income tax return for the year ended December 31, 2018, which will remain subject to examination by the Internal Revenue Service under the statute of limitations for a period of three (3) years from the date it is filed.

Note 8 – Subsequent Events

The Company has evaluated all events that occur after the balance sheet date through the date when the financial statements were issued to determine if they must be reported. The Management of the Company determined that there were no reportable subsequent events to be disclosed.

14



Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

General

Alfacourse Inc. (the “Company”) was incorporated on February 29, 2016 under the laws of the State of Nevada.  The Company provides video editing services.

Description of Products and Services

Alfacourse Inc. is a new company specializing in providing video editing services to professional video production companies and end consumers.

The company is using the latest technology to achieve a level of quality previously reserved for only the most expensive video production companies and private consumers.  Our President has extensive industry experience and technical and creative expertise.

Our plans are to provide video-editing services using new UHD (Ultra-High Definition) 4K and 8K technologies as the market demand for UHD video continues to grow.  This will improve our position in the video production and editing market.  To secure a market segment, the company is working to determine trends in the industry, the needs of the customer, and come up with new creative ways to address those needs.  Our services geared towards several work streams, including television stations, animation and multimedia companies.

Our primary business is video editing services.  Every video project divided into three parts: pre-production, production, and post-production.  During pre-production, customer describes the business need and the purpose. We plan, design, and develop the process of video editing. Production is the part of the project in which we collect and create all of the raw material that we will need to produce your multi-media project. This might include videotaping material in a one, two, or three camera shoot, producing 2-D or 3-D motion graphics. Post-production is where everything is pulled together into a rough-cut of the product.  We make changes to accommodate customer preferences and desires during the post-production stage of the project.

Below is a list of services the company will provide:

1.
Postproduction video editing

2.
Inserts for live shows

3.
Web videos

4.
Corporate videos

5.
Presentation videos

6.
Promotional Video Production and Video Marketing

7.
Full range of post-production services

Target Market and Clients

Alfacourse Inc. will provide video editing and full range of post-production services to its target markets.

The target markets have been identified as:

1.
Media & Entertainment companies
a.
TV commercials
b.
Broadcast programs
c.
Music videos
d.
Documentaries
e.
TV drama
f.
Short films
g.
Feature films

2.
Video production companies

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3.
Animation and Multimedia companies

4.
Corporate customers

5.
YouTube commercial publishers

6.
Private consumers

Sources of Revenue

We have identified three main marketing client groups associated with the various streams of revenue:

Source #1 – The End Client

Our main source of revenue is the end client.

The end client is the company or individual that requires direct services of Alfacourse.

The End Client scenario expected to make up 75% of our total revenue.

Source #2 – Creative Agencies

In this scenario, the End Client hires the agency who in turn hires us to provide video services for a larger project.

The money flows from the End Client to the Creative Agency and then to Alfacourse.

In the corporate video arena, there are marketing, PR, advertising, interactive and website design agencies that develop projects for End Clients that will need to outsource professional video services.

In the wedding video arena, an agency might be a chapel or large wedding coordination company that provides turn-key services to brides and their families.

Creative agencies should make up about 18% of the revenues we generate for your video business.

Source #3 – Other Videographers and/or Producers

The Company plans to form strategic alliances with clients who require a freelancer to cover various events for them.  We will also develop strategic alliances with video production companies and work with them as a sub-contractor.

The other videographers and production segment are expected to generate 7% of the total revenue.

Competition and Competitive Strategy

There are many video production and editing companies in the market.

We expect to compete as a freelance video production company in the Media & Entertainment industry.

Currently, our competitive position within the industry is negligible in light of the fact that we have just recently started our operations.

Out competitive advantages are:

·
Expertise
·
Performance
·
Flexibility
·
Price

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Results of Operations for the Three and Six Months Ended June 30, 2019 and 2018

For the three months ended June 30, 2019, our operating expenses of $6,468 were comprised of professional fees of $5,812 and General and Administrative expenses of $657 as compared to $15,943 total expenses for the three months ended June 30, 2018, comprising of $10,772 professional fees and $5,171general and Administrative expenses. The decrease was primarily due to application fees paid for DTC in 2018.

For the six months ended June 30, 2019 our operating expenses of $10,472 were comprised of professional fees of $8,953 and General and Administrative expenses of $1,789 as compared to $24,337total expenses for the six months ended June 30, 2018, comprising of $12,314 professional fees and $12,023 General and Administrative expenses. The decrease was primarily due to application fees paid for DTC in 2018.

Activities To-date

A substantial portion of our activities to-date has been focused on developing a sound business plan. We have established the company's office. We will continue to work on Company website and presentation materials for prospective clients.

We sold 5,000,000 shares of common stock to our President for $5,000.

Off Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial conditions, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Liquidity and Capital Resources

As of June 30, 2019, the Company reported the cash orcash equivalent balance of $4,206and liabilities of $15,473. Our working capital deficit was ($11,267) at June 30, 2019 as compared to working capital deficit of ($1,334) at December 31, 2018.The available capital of the Company is not sufficient for the Company to remain operational for the next twelve months.

For the six months ended June 30, 2019, we have cash flows used in operating activities of ($11,932) as compared to ($250) for the same period of 2018 effected by depreciation expenses and accounts payables.

For the six months ended June 30, 2019, we have cash flows provided by financing activities of $10,000 as compared to ($22,828) for the same period of 2018 which the company received advances from related party to fund the operation of the Company.

Since inception, we have sold 5,000,000 shares of common stock to our President at a price of $0.001 per share, for aggregate proceeds of $5,000 and 2,315,000 shares to 29 investors at a price of $0.01 per share for aggregate proceeds of $23,150.Our President will provide additional capital via long-term note in order to complete the Offering and registration process if required.

We are attempting to raise funds to proceed with our plan of operation.  Our current cash balance will be used to pay the fees and expenses of this Offering.  We will have to obtain additional funding from our President.  However, he has no formal commitment, arrangement or legal obligation to loan funds to the Company.  To proceed with our operations for the next twelve months, we need a minimum of $25,000. Based on this estimate and on current cash and accounts receivable we cannot sustain operations. We cannot guarantee that we will be able to sell all the shares required to satisfy our 12 months financial requirement.  If we are successful, all funds raised will be applied to the items set forth in the Use of Proceeds section of this Prospectus.  In the long term we may need additional financing.  We do not currently have any arrangements for obtaining such additional financing.  Such additional funding will be subject to a number of factors, including general market conditions, investor acceptance of our business plan and initial results from our business operations.  These factors may impact the timing, amount, terms and conditions of additional financing available.  There is no assurance that any additional financing will be available or if available, on terms that will be acceptable to us.

Stockholders’ deficit balance as of June 30, 2019 was ($10,837) compare to $(95)as of December 31, 2018.

We anticipate that our legal and accounting fees will be $12,000 over the next 12 months as a result of being a reporting company with the SEC.

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Going Concern Consideration

Our auditors have issued a “going concern” opinion, meaning that there is substantial doubt for the company to continue as an on-going business for the next 12 months unless we obtain additional capital.  No substantial revenues are anticipated until we have completed the financing from this Offering and implemented our plan of operations.  Our only source for cash at this time is investments by others in this Offering.  We must raise cash to implement our strategy and stay in business.  If we sell at least 25% of the shares in the Offering we will have the resources to operate for the next 12 months, including for the costs of becoming a publicly reporting company.  The Company anticipates to incur approximately $12,000 in legal, professional fees, and public reporting cost over the next 12 months.

Limited operating history and need for additional capital

We have no historical financial information upon which to base an evaluation of our performance.  We are in a start-up operation stages and have generated revenues of $20,495 from four clients (inception to-date).  We cannot guarantee we will be successful in our business operations.  Our business is subject to risks inherent in the establishing a new business enterprise, including limited capital resources and possible overruns due to price and cost increases in services and products.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

No report required.

Item 4. Controls and Procedures

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

An evaluation has been conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2019. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Such officer also confirmed that there was no change in our internal control over financial reporting during the six months ended June 30, 2019 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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PART II – OTHER INFORMATION

Item 1. Legal Proceeding

Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

No report required.

Item 3. Default Upon Senior Securities

No report required.

Item 4. Mine Safety Disclosures

No report required.

Item 5. Other Information

No report required.

Item 6. Exhibits

Exhibit
Number
 
Description of Exhibit
     
31.1
 
Certification of Chief Executive Officer pursuant to section 302 of the Sarbanes-Oxley act of 2002
     
31.2  
Certification of Chief 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 Chief Executive Officer and Chief Financial Officer Pursuant Section 906 of the Sarbanes-Oxley Act
     
101   Interactve data files pursuant to Rule 405 of Regulation S-T
 
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SIGNATURES
 
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Stepaside, Dublin 18, Ireland on August 13, 2019.

 
Alfacourse  Inc.
 
 
 
 
 
By:
/s/ Oleg Jitov
 
 
 
Name: Oleg Jitov
 
 
Title: President, Secretary and Director
 
 
          (Principal Executive, Financial and Accounting Officer)

 

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