UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
___________________
 

FORM 10-Q
 
_______________________
 
ý                                  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended September 30, 2014
 
or
 
o                                  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from______________ to______________
 
 
Commission file number 0-52493
 
VERACITY MANAGEMENT GLOBAL, INC.
(Exact Name Of Registrant As Specified In Its Charter)
 
Delaware
43-1889792
(State of Incorporation)
(I.R.S. Employer Identification No.)
   
21819 Town Place Dr.Boca Raton, FL
33433
(Address of Principal Executive Offices)
(ZIP Code)
 
Registrant's Telephone Number, Including Area Code:(561) 613-1888
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T 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 shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x No ¨
 
.Large Accelerated Filer o
 
Accelerated Filer o
 
Non-Accelerated Filer o (Do not check if a smaller reporting company)
 
Smaller Reporting Company þ
 

On November 23, 2015, the Registrant had 16,643,057 shares of common stock issued and outstanding.
 
 

 
 

 
TABLE OF CONTENTS
 
 
 
PART I - FINANCIAL INFORMATION
         
Page
 
           
ITEM 1.
 
Financial Statements. (Unaudited)
    
  3
 
           
ITEM 2.
    
Management's Discussion And Analysis And Results Of   Operation.
    
9
 
           
ITEM 3
 
Quantitative And Qualitative Discussion About Market Risk
 
10
 
           
ITEM 4.
 
Controls And Procedures
 
10
 
           
PART II – OTHER INFORMATION
           
ITEM 1.
    
Legal Proceedings.
    
11
 
           
ITEM 1A.    Risk Factors    11  
           
ITEM 2.
    
Recent Sales Of Unregistered Equity Securities And Use Of Proceeds
    
11
 
           
ITEM 3.
    
Default Upon Senior Securities.
    
11
 
           
ITEM 4.
    
Mine Safety Disclosures
    
11
 
           
ITEM 5.
    
Other Information.
    
11
 
           
ITEM 6.
 
Exhibits
 
12
 
           
   
Signatures
   13  
 
 
- 2 -

 
 
PART I - FINANCIAL INFORMATION
 
ITEM 1. FINANCIAL STATEMENTS (Unaudited)
 
 
VERACITY MANAGEMENT GLOBAL, INC.
 
BALANCE SHEETS
(A Development Stage Company)
(UNAUDITED)
 
 
   
September 30,
   
June 30,
 
ASSETS
 
2014
   
2014
 
         
Current Assets
       
    Cash
 
$
39
   
$
84
 
Total Current Assets
   
39
     
84
 
                 
                 
Total Assets
 
$
39
   
$
84
 
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT
               
                 
Current Liabilities
               
     Accounts Payable
 
$
3,750
   
$
750
 
     Accounts Payable - Related party
   
108,747
     
108,747
 
Total Current Liabilities
   
112,497
     
109,497
 
                 
Total Non - Current Liabilities
   
-
     
-
 
                 
Total Liabilities
   
112,497
     
109,497
 
                 
Stockholders' Deficit
               
     Preferred Stock, $.001 par value, 5,000,000 shares
               
     authrized, 0 shares issued and outstanding
   
-
     
-
 
     Common Stock, $.001 par value, 3,500,000,000 shares
               
     authorized, 16,643,057 and 16,643,057 shares issued and
               
     outstanding at September 30, 2014 and June 30, 2014 respectively
   
16,635
     
16,635
 
Additional paid-in capital
   
4,052,836
     
4,052,836
 
Accumulated deficit prior to development stage
   
(4,040,470
)
   
(4,040,470
)
Accumulated deficit during the development stage
   
(141,459
)
   
(138,414
)
                 
Total Stockholders' Deficit
   
(112,458
)
   
(109,413
)
                 
Total Liabilities and Stockholders' Defecit
 
$
39
   
$
84
 
                 
 
 
The accompanying notes to the financial statements are integral part of these financial statements
 
 
- 3 -

 
 
 

 

VERACITY MANAGEMENT GLOBAL, INC.
 
STATEMENTS OF OPERATIONS
For the Three Months Ended September 30, 2014 and 2013
and the period from July 1, 2008 to September 30, 2014
(A Development Stage Company)
(Unaudited)
 
   
For the Three Months
Ended September 30,
    Period re-entered development stage (July 1, 2008) to September 30,  
   
2014
   
2013
   
2014
 
Revenues
 
$
-
   
$
-
   
$
-
 
                         
Cost of Sales
   
-
     
-
     
-
 
                         
Gross Profit
   
-
     
-
     
-
 
                         
Expenses
                       
                         
Administrative Expenses
   
3,000
     
3,000
     
73,828
 
                         
General Expenses
   
45
     
1,380
     
67,731
 
                         
Total Expenses
   
3,045
     
4,380
     
141,559
 
Other Income
                       
Interest income
   
-
     
-
     
100
 
Net Income (Loss)
 
$
(3,045
)
 
$
(4,380
)
 
$
(141,459
)
                         
                         
Basic and Diluted Net Loss per Share
   
*
     
*
         
                         
Weighted Average Shares
   
16,643,057
     
16,643,057
         
                         
 
The accompanying notes to the financial statements are integral part of these financial statements
 
- 4 -

 
 
 
 
VERACITY MANAGEMENT GLOBAL, INC.
 
STATEMENT OF STOCKHOLDERS' DEFICIT
(A Development Stage Company)
(Unaudited)
 
 
 
   
Common Stock Shares
   
Amount
   
Additional Paid-in
Capital
   
Accumulated
Deficit during
developmnet
stage
   
Accumulated Deficit
   
Total
 
Balance at June 30, 2014
   
16,643,057
   
$
16,635
   
$
4,052,836
   
$
(138,414
)
 
$
(4,040,470
)
 
$
(109,413
)
     Net loss
                           
(3,045
)
           
(3,045
)
Balance at September 30, 2014
   
16,643,057
   
$
16,635
   
$
4,052,836
   
$
(141,459
)
 
$
(4,040,470
)
 
$
(112,458
)
                                                 
 
 
The accompanying notes to the financial statements are integral part of these financial statements
 
 
- 5 -

 
 
 
 
 
VERACITY MANAGEMENT GLOBAL, INC.
 
STATEMENTS OF CASH FLOW
(A Development Stage Company)
(Unaudited)
 
 
    
Three
Months Ended,
September 30,
   
Three
Months
Ended, September 30,
   
Period re-
entered
development
stage (July 1,
2008) to
September 30,
 
 
   
2014
   
2013
   
2014
 
CASH FLOWS FROM OPERATING ACTIVITIES
           
Net loss from continuing operations
 
$
(3,045
)
 
$
(4,380
)
 
$
(141,459
)
Adjustments to reconcile net loss to net cash
                       
   used in operating activities:
                       
Shares issued for services
   
-
     
-
     
50,000
 
Increase (decrease) in:
                       
    Accounts Payable
   
3,000
     
(750
)
   
7,274
 
                         
Net cash used in operating activities
   
(45
)
   
(5,130
)
   
(84,185
)
                         
CASH FLOWS FROM FINANCING ACTIVITIES
                       
Related party - acconts payable
   
-
     
5,335
     
83,639
 
                         
Net cash provided by financing activities
   
-
     
5,335
     
83,639
 
                         
NET INCREASE (DECREASE) IN CASH
   
(45
)
   
205
     
(546
)
                         
CASH - BEGINNING OF PERIOD
   
84
     
14
     
585
 
                         
CASH - END OF PERIOD
 
$
39
   
$
219
   
$
39
 
 
 
The accompanying notes to the financial statements are integral part of these financial statements
 
 
- 6 -

 
 
 
 
 
VERACITY MANAGEMENT GLOBAL, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED SEPTEMBER 30, 2014
(A Development Stage Company)
(Unaudited)

 
 
NOTE 1 – BASIS OF PRESENTATION

The accompanying financial statements of Veracity Management Global, Inc (the "Company", "VCMG") at September 30, 2014 have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in conformity with generally accepted accounting principles have been omitted or condensed pursuant to such rules and regulations. These statements should be read in conjunction with VCMG's audited financial statements and notes thereto included in VCMG's Form 10-K. In management's opinion, these unaudited interim financial statements reflect all adjustments (consisting of normal and recurring adjustments) necessary for a fair presentation of the financial position and results of operations for each of the periods presented. The accompanying unaudited interim financial statements for the three months ended September 30, 2014 are not necessarily indicative of the results which can be expected for the entire year.

 Basis of Presentation

The Company follows accounting principles generally accepted in the United States of America.  Certain prior period amounts have been reclassified to conform to the September 30, 2008 presentation.  On August 2, 2007, the Company's Board of Directors approved a 1 for 73 reverse split of the Company's common stock by Action of the Board and a majority of shareholders. All information related to common stock, warrants to purchase common stock and earnings per share have been retroactively adjusted to give effect to the stock split.

The statements of operations show the effect of a reclassification of the distribution of the subsidiary companies until July 1, 2008. The reclassification included all parts of the prior operations for both subsidiary companies as loss from discontinued operations for the prior reported period.

In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein.  The financial statements include the accounts of Veracity Management Global, Inc and the operations of Secured Financial Data, Inc and Veracity Management Group, Inc. are being reported as loss from discontinued operations. Any inter-company transactions have been eliminated as part of the transaction.

As a development stage company, the Company continues to rely on infusions of debt and equity capital to fund operations. The Company relies principally on cash infusions from its directors and affiliates, and paid a significant amount of personal services and salaries in the form of common stock.

Recently Issued Accounting Standards

In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The objective of ASU 2013-11 is to provide guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists.  ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this standard will not have an impact on the Company's consolidated financial statements.
 
 
- 7 -

 
 
 
 
 
VERACITY MANAGEMENT GLOBAL, INC.
 
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED SEPTEMBER 30, 2014
(A Development Stage Company)
(Unaudited)
 
 

Other accounting standards that have been issued or proposed by the FASB, or other standards-setting bodies, that do not require adoption until a future date are not expected to have a material impact on the Company's financial statements upon adoption.

Management does not anticipate that the adoption of these standards will have a material impact on the financial statements.


NOTE 2- GOING CONCERN

Veracity Management Global, Inc.'s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business for the foreseeable future. Since inception, the Company has accumulated losses aggregating to $4,181,929 and has insufficient working capital to meet operating needs for the next twelve months as of September 30, 2014, all of which raise substantial doubt about VCMG's ability to continue as a going concern.


NOTE 3 – ACCOUNTS PAYABLE – RELATED PARTY

The officers and directors of the Company have advanced funds to pay for the filing and other necessary costs of the Company. The following are the advances from the officers and directors:

   
September 30,
2014
   
June 30,
2014
 
         
Donald W Prosser (Director)
 
$
102,747
   
$
102,747
 
Gregory Paige (CEO & Director)
   
6,000
     
6,000
 
                 
Total
 
$
108,747
   
$
108,747
 



NOTE 4 – SUBSEQUENT EVENTS

The Company has received a letter of intent dated August 31, 2015 and an Exchange Agreement dated November 20, 2015 to merge an operating business before December 31, 2015.
 
 
- 8 -

 
 
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS AND RESULTS OF OPERATION
 
Forward-Looking Statement
 

Some of the statements contained in this quarterly report of Veracity Management Global, Inc., a Delaware corporation (hereinafter referred to as "we", "us", "our", "Company" and the "Registrant") discuss future expectations, contain projections of our plan of operation or financial condition or state other forward-looking information. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use of words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. From time to time, we also may provide forward-looking statements in other materials we release to the public.
 
General
 
The Registrant acquired its operating subsidiaries Veracity Management Group, a Florida corporation ("VMG") and Secured Financial Data Inc., a Florida corporation ("SFD") effective on July 1, 2006. Prior to the acquisition of its operating subsidiaries, during the period from May 2002 until the acquisition of its operating subsidiaries on July 1, 2006, the Registrant had only limited business operations. The Registrant operated the above named subsidiaries until July 1, 2008 until the when the Registrant rescinded the merger and the Registrant has no business operations and is in the business of acquiring a target company or business seeking the perceived advantages of being a publicly held corporation. Our principal business objective for the next 12 months and beyond such time will be to achieve long-term growth potential through a combination with a business rather than immediate, short-term earnings. The Registrant will not restrict our potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business.
The results of operations comparative information has no meaning as the operations were removed as part of the rescinding of the mergers of the operating businesses.
Results of Operations for the Three Months Ended September 30, 2014 Compared to Three Months Ended September 30, 2013
The results of the recession agreement made the Company a shell company as defined in Rule 12b-2 of the Exchange Act.
Revenues. The Company recorded revenue of $0 and $0 for the three months ended September 30, 2014 and 2013, respectively.
Cost of Services. The Company recorded cost of services of $0 and $0 for the three months ended September 30, 2014 and 2013, respectively.
Administrative Expenses: Our administrative expenses totaled $3,000 for the three-months ended September 30, 2014 as compared to $3,000 administrative expenses for the same period ended September 30, 2013.
General Expenses There was $45 of general expenses that were expensed during the three-months ended September 30, 2014. There was $1,380 in general expenses for the three months period ended September 30, 2013.
Net Loss. We incurred a net loss of $3,045 during the three-month period ended September 30, 2014, compared to a net loss of $4,380 during the three-month period ended September 30, 2013.
 
- 9 -

 
 
Liquidity and Capital Resources
 

At September 30, 2014 and June 30, 2014, we had total assets of 39 and $84, respectively. We had total current liabilities of $112,497 at September 30, 2014 compared to $109,497 at June 30, 2014. We had long-term liabilities of $0 as of September 30, 2014 compared to $0 at June 30, 2014.
We had a working capital deficit of $(112,458) at September 30, 2014. Net cash used in operations during the three-month period ended September 30, 2014 was $(45). For the three-month period ended September 30, 2013 the net cash used in operations was $(5,130).
During the three-month period ended September 30, 2014, financing activities provided no cash compared to $5,335 during the same three-month period in the prior year.
There are no limitations in the Company's articles of incorporation on the Company's ability to borrow funds or raise funds through the issuance of restricted common stock.
Plan of Current and Future for the fiscal year 2015
The Company has no business operations and is in the business of acquiring a target company or business seeking the perceived advantages of being a publicly held corporation. Our principal business objective for the next 12 months and beyond such time will be to achieve long-term growth potential through a combination with a business rather than immediate, short-term earnings. The Company will not restrict our potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business.



ITEM 3. QUANTITATIVE and QAULITATIVE DISCUSSION ABOUT MARKET RISK

The Company is defined by Rule 229.10 (f)(1) as a "Smaller Reporting Company" and is not required to provide or disclose the information required by this item.


ITEM 4. CONTROLS AND PROCEDURES
As of September 30, 2014, our Chief Executive Officer and Chief Financial Officer (the "Certifying Officers") conducted evaluations of our disclosure controls and procedures. As defined under Sections 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 Act, as amended (the "Exchange Act") the term "disclosure controls and procedures" means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer 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. 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 the Certifying Officers, to allow timely decisions regarding required disclosure. Based on this evaluation, the Certifying Officers have concluded that our disclosure controls and procedures were not effective to ensure that material information is recorded, processed, summarized and reported by our management on a timely basis in order to comply with our disclosure obligations under the Exchange Act, and the rules and regulations promulgated there under.

As of September 30, 2014, there were no other changes in our internal control over financial reporting during the subject fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
- 10 -

 
 
PART II - OTHER INFORMATION
 
 
ITEM 1. LEGAL PROCEEDINGS
 
None.
 
 
Item 1A - RISK FACTORS
 
There have been no material changes to the risk factors set forth in our Annual Report on Form 10-K for the year ended June 30, 2014, as filed with the SEC on October 14, 2014. The risk factors in our Annual Report on Form 10-K for the year ended June 30, 2013, in addition to the other information set forth in this quarterly report, could materially affect our business, financial condition or results of operations. Additional risks and uncertainties not currently known to us or that we deem to be immaterial could also materially adversely affect our business, financial condition or results of operations.
 
 
ITEM 2. RECENT SALES OF UNREGISTERED 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.
 
- 11 -

 
 
 
 
 

ITEM 6. EXHIBITS
(a) The following documents are filed as exhibits to this report on Form 10-Q or incorporated by reference herein.
 
 
 
Exhibit
Number
 
Exhibit Description
 
   
31.1
 
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
 
   
31.2
 
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
 
   
32.1
 
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 

101.DEF
 
XBRL Taxonomy Extension Definition Linkbase Document*
 
 
 
101.INS
 
XBRL Instance Document
 
 
 
101SCH
 
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 Definition Linkbase Document
 
- 12 -

 
 
Veracity Management Global, Inc.
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.
 
/s/Gregory L. Paige
Gregory L. Paige
   CEO
   Dated: December 8, 2015
 
 
/s/ Mark L. Baker
Mark L. Baker
   CFO
    Dated: December 8, 2015
 
 
 
 
 
 


- 13 -