The following discussion provides information which management believes is relevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read along with our financial statements and notes thereto contained elsewhere in this Report. The following discussion and analysis contains forward-looking statements, which involve risks and uncertainties. Our actual results may differ significantly from the results, expectations and plans discussed in these forward-looking statements.
The following plan of operation provides information which management believes is relevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read along with our financial statements and notes thereto. This section includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.
Plan of Operations
Our plan of operation is to operate a real estate search engine portal website. We want to position our company as a national real estate search engine/social community network that matches buyers, sellers, brokers, and professionals anywhere in the world.
What Makes us Different
Real Estate professionals use the internet to generate leads. The top sources of internet leads are company and agent websites. Each real estate professional on our website will be the EXCLUSIVE agent in the city that they service in and will have their own profile page that contains the agent' s information and bios with links to their listings. Each agent will also have their own exclusive city page that will feature advertising banners from various other local businesses that work in the real estate field such as local mortgage brokers, title companies, real estate attorneys, contractors, among others in the real estate profession.
Products and Services
Our new real estate search website, https://realestatecontacts.com/, will allow real estate professionals and consumers to interact through the internet as a business medium and features the real estate professional' s current listings and profiles in their geographic service areas enabling potential home buyers to view real estate listings and homes that are for sale and featured on the real estate professional' s website. This format is called a "lead-generation" program for real estate professionals that are on the https://realestatecontacts.com/portal website.
We aim to offer real estate agents, brokers, and offices the opportunity to become the exclusive real estate contact in the city that they serve on https://realestatecontacts.com/for a yearly fee.
27 Table of Contents
We believe our services will empower consumers and drive more business for real estate professionals as well as small business owners. Participating real estate brokers, offices and agents receive coverage in the cities, areas and territories that they service.
The Company plans to generate its revenue from selling advertising to real estate professionals on our real estate portal.
Our business strategy is having the agent, broker, or office be exclusive in their city which will eliminate all of their competition for that city. For this reason we believe our concept will have a high level of interest from any real estate professional.
Currently, while there are other real estate directories and portals on the internet, no one features real estate agents on exclusive basis. We believe this approach will be attractive to real estate professionals in each locale.
We plan to grow revenues from the advertising sales from real estate professionals on our current website in the next 12 months by undertaking the following steps:
· Devote greater resources to marketing and selling our services such as
developing and creating a more productive advertising sales division within
our company by the hiring of advertising sales account executives.
· Focus to expand our network of advertisers and real estate professionals by
increasing our online presence to include various marketing channels such as
the major search engines, Google, Yahoo and Bing.
· Expand our company' s public relations by creating more brand awareness on
the internet. An example would be to focus on other social media websites
such as Facebook, Twitter, and LinkedIn.
· Develop other marketing programs to efficiently increase our brand awareness
such as email campaigns, newsletters, linking our website to other real
estate business websites, real estate portals and directories.
· We intend to continue, maintain and aggressively pursue to build our
advertising campaign around all internet related marketing concepts, such as
search engine optimization, banner advertising and social media networks to
help manage and geographically target consumer traffic and lead volume.
· We plan to increase our online Search Engine Marketing to create more unique
users Focus on driving more internet traffic and unique visitors to our websites by using these search engine marketing techniques.
The number of real estate professionals (advertisers) on our website is an important driver of revenue growth because each advertiser will pay a yearly fee to participate in the advertising of their services on our website.
Limited Operating History
We have generated a limited financial history and have not previously demonstrated that we will be able to expand our business through increased investment in marketing activities. We cannot guarantee that the expansion efforts described in this Registration Statement will be successful. The business is subject to risks inherent in growing an enterprise, including limited capital resources and possible rejection of our business model and/or sales methods.
Future financing may not be available to us on acceptable terms. If debt financing is not available or not available on satisfactory terms, we may be unable to continue expanding our operations. Equity financing will result in a dilution to existing shareholders.
For the three months ended
The Company earned no revenues for the three month periods ended
Operating expenses for the three months ended
For the six months ended
The Company earned no revenues for the six month periods ended
Operating expenses were
28 Table of Contents
Capital Resources and Liquidity
The Company is currently financing its operations primarily through loans, equity sales and advances from shareholders. We believe we can currently satisfy our cash requirements for the next six months with our expected capital to be raised in private placement and sales of our common stock. Additionally, we will begin to use our common stock as payment for certain obligations and to secure work to be performed.
At
As of
We do believe that we will have enough cash to support our daily operations, at
reduced levels of development, beyond the next 12 months while we are attempting
to expand operations and produce revenues. Although we believe we have adequate
funds to maintain our current operations for the near term, we do not believe
that we have the required funding to expand our product offering (web video
channel and other possible alternative service offerings). We estimate the
Company needs an additional
Future financing for our operations may not be available to us on acceptable terms. To raise equity will require the sale of stock and the debt financing will require institutional or private lenders. We do not have any institutional or private lending sources identified. If debt financing is not available or not available on satisfactory terms, we may be unable to continue expanding our operations. Equity financing will result in a dilution to existing shareholders.
The foregoing represents our best estimate of our cash needs based on current planning and business conditions. In the event we are not successful in reaching our initial revenue targets, additional funds may be required, and we may not be able to proceed with our business plan for the development and marketing of our core services. Should this occur, we will suspend or cease operations.
We anticipate that depending on market conditions and our plan of operations, we may incur significant continuing operating losses in the foreseeable future. Therefore, our auditors have raised substantial doubt about our ability to continue as a going concern.
Management Consideration of Alternative Business Strategies
In order to continue to protect and increase shareholder value management believes that it may, from time to time, consider alternative management strategies to create value for the company or additional revenues. Strategies to be reviewed may include acquisitions; roll-ups; strategic alliances; joint ventures on large projects; issuing common stock as compensation in lieu of cash; and/or mergers.
Management will only consider these options where it believes the result would be to increase shareholder value while continuing the viability of the company. At the current time, there have been no planned commitments to any independent considerations mentioned above.
Recent Accounting Pronouncements
The
29 Table of Contents
Critical Accounting Policies and Estimates
Use of Estimates
In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates. Our significant estimates include valuation of stock based compensation, derivative liabilities, and deferred tax valuation allowances. We evaluate our estimates on an ongoing basis. Actual results may differ from these estimates under different assumptions or conditions.
Revenue Recognition
ASU 2014-09, Revenue - Revenue from Contracts with Customers
On
In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collectability is reasonably assured.
Consideration for future advertising services are made by customers in advance of those services being provided. Advertising revenue is recognized ratably over the period that the services are subscribed, generally a one year period. The unearned portion of the advertising revenue is deferred until future periods in which the subscription is earned.
The Company has not issued guarantees or other warrantees on the advertising subscription success or results. The Company has not experienced any refund requests or committed to any adjustments for terminated subscriptions. The Company does not believe that there is any required liability.
Share-based Compensation
In
In
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements.
30 Table of Contents
© Edgar Online, source