WEB NEWS Comments & Business Outlook
POLLEX, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended
March 31,
2016
2015
REVENUES
$
34,136
$
21,759
COSTS AND EXPENSES
Selling, general and administrative
30,227
53,756
Related party service agreement
60,000
60,000
Total Costs and Expenses
90,227
113,756
OPERATING LOSS
(56,091
)
(91,997
)
OTHER EXPENSE
Interest expense
(18,187
)
(17,987
)
Total Other Expense
(18,187
)
(17,987
)
LOSS BEFORE INCOME TAXES
(74,278
)
(109,984
)
PROVISION FOR INCOME TAXES
-
-
NET LOSS
$
(74,278
)
$
(109,984
)
NET LOSS PER COMMON SHARE (Basic and Diluted)
$
(0.01
)
$
(0.02
)
WEIGHTED AVERAGE SHARES OUTSTANDING (Basic and Diluted)
5,121,689
5,121,688
Auditor trail
Item 4.01 Changes in Registrant’s Certifying Accountant
On April 18, 2016, Pollex, Inc., a Nevada corporation (the “Company”) was informed by its independent registered public accounting firm, Cowan, Gunteski & Co., P.A. (“Cowan”), that it has transferred its Securities and Exchange Commission practice to MSPC Certified Public Accountants and Advisors, P.C. (“MSPC”). As a result of the transfer and upon notice by Cowan to the Company on April 18, 2016, Cowan in effect has resigned as the Company’s independent registered public accounting firm and MSPC became the Company’s independent registered public accounting firm. The engagement of MSPC as the Company’s independent registered public accounting firm was ratified and approved by the Board of Directors of the Company on April 22, 2016.
The audit reports of Cowan on the financial statements of the Company as of and for the years ended December 31, 2016 and 2015 did not contain an adverse opinion or a disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles, except as to its ability to continue as a going concern.
During the Company’s two most recent fiscal years ended December 31, 2016 and 2015 and through April 18, 2016, the Company did not consult with MSPC on (i) the application of accounting principles to a specific transaction, either completed or proposed, or the type of audit opinion that may be rendered on the Company’s financial statements, and MSPC did not provide either a written report or oral advice to the Company that MSPC concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing, or financial reporting issue; or (ii) the subject of any disagreement, as defined in Item 304 (a)(1)(iv) of Regulation S-K or a reportable event, as defined in Item 304(a)(1)(v).
In connection with the audits of the Company’s financial statements for each of the fiscal years ended December 31, 2016 and 2015, and through the date of this current report, there were no disagreements between the Company and Cowan on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of Cowan, would have caused Cowan to make reference to the subject matter of the disagreement in their reports on the Company’s financial statements for such years.
The Company has provided Cowan a copy of the disclosures in this Form 8-K and has requested that Cowan furnish it with a letter addressed to the Securities and Exchange Commission stating whether or not Cowan agrees with the Company’s statements in this Item 4.01. A copy of the letter dated April 22, 2016 furnished by Cowan in response to that request is filed as Exhibit 16.1 to this Form 8-K.
Comments & Business Outlook
STATEMENTS OF OPERATIONS
For the year ended
December 31,
2015
2014
REVENUES
$
88,542
$
81,700
COSTS AND EXPENSES
Cost of goods sold
-
586
Selling, general and administrative
194,462
215,836
Related party service agreement
240,000
240,000
Impairment of license agreements
-
70,000
Depreciation and amortization
-
10,188
Total Costs and Expenses
434,462
536,610
OPERATING LOSS
(345,920
)
(454,910
)
OTHER EXPENSE
Interest expense
(72,948
)
(72,497
)
Total Other Expense
(72,948
)
(72,497
)
LOSS BEFORE INCOME TAXES
(418,868
)
(527,407
)
PROVISION FOR INCOME TAXES
-
-
NET LOSS
$
(418,868
)
$
(527,407
)
NET LOSS PER COMMON SHARE (Basic and Diluted)
$
(0.08
)
$
(0.10
)
WEIGHTED AVERAGE SHARES OUTSTANDING
5,121,689
5,121,689
Management Discussion and Analysis
Total revenue for the year ended December 31, 2015 was $88,542 compared to $81,700 for the year ended December 31, 2014. The increase of $6,842 or 8% was primarily due to an increase in revenue from our online game.
Our Net Loss for the year ended December 31, 2015 was $418,868 compared to $527,407 for the year ended December 31, 2014. The decrease of $108,539 or 21% was primarily due to decrease in total costs and expenses, primarily the impairment of licenses and contributed services, and increase in revenue.
Comments & Business Outlook
POLLEX, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
For the three months ended
For the nine months ended
September 30,
September 30,
2015
2014
2015
2014
REVENUES
$
23,086
$
24,905
$
65,861
$
60,625
COSTS AND EXPENSES
Cost of goods sold
-
-
-
586
Selling, general and administrative
41,340
71,098
151,006
220,871
Related party service agreement
60,000
60,000
180,000
180,000
Impairment of license agreements
-
-
-
70,000
Depreciation and amortization
-
-
-
10,188
Total Costs and Expenses
101,340
131,098
331,006
481,645
OPERATING LOSS
(78,254
)
(106,193
)
(265,145
)
(421,020
)
OTHER EXPENSE
Interest expense
(18,387
)
(17,944
)
(54,561
)
(54,110
)
Total Other Expense
(18,387
)
(17,944
)
(54,561
)
(54,110
)
LOSS BEFORE INCOME TAXES
(96,641
)
(124,137
)
(319,706
)
(475,130
)
PROVISION FOR INCOME TAXES
-
-
-
-
NET LOSS
$
(96,641
)
$
(124,137
)
$
(319,706
)
$
(475,130
)
NET LOSS PER COMMON SHARE (Basic and Diluted)
$
(0.02
)
$
(0.02
)
$
(0.06
)
$
(0.09
)
WEIGHTED AVERAGE SHARES OUTSTANDING
5,121,688
5,121,688
5,121,688
5,121,688
Management Discussion and Analysis
For the three months ended September 30, 2015, we generated $23,086 in revenue compared to $24,905 for the three months ended September 30, 2014. The decrease of $1,819 or 7% was primarily due to less revenue generated from our online games.
Our Net Loss for the three months ended September 30, 2015 was $96,641 compared to $124,137 for the three months ended September 30, 2014. The decrease of $27,496 or 22% was primarily due to decrease in selling and administrative expenses.
Comments & Business Outlook
POLLEX, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended
For the six months ended
June 30,
June 30,
2015
2014
2015
2014
REVENUES
$
21,016
$
16,894
$
42,775
$
35,720
COSTS AND EXPENSES
Cost of goods sold
-
-
-
586
Selling, general and administrative
55,910
78,967
109,666
149,773
Related party service agreement
60,000
60,000
120,000
120,000
Impairment of license agreements
-
70,000
-
70,000
Depreciation and amortization
-
5,082
-
10,188
Total Costs and Expenses
115,910
214,049
229,666
350,547
OPERATING LOSS
(94,894
)
(197,155
)
(186,891
)
(314,827
)
OTHER EXPENSE
Interest expense
(18,187
)
(18,998
)
(36,174
)
(36,166
)
Total Other Expense
(18,187
)
(18,998
)
(36,174
)
(36,166
)
LOSS BEFORE INCOME TAXES
(113,081
)
(216,153
)
(223,065
)
(350,993
)
PROVISION FOR INCOME TAXES
-
-
-
-
NET LOSS
$
(113,081
)
$
(216,153
)
$
(223,065
)
$
(350,993
)
NET LOSS PER COMMON SHARE (Basic and Diluted)
$
(0.02
)
$
(0.04
)
$
(0.04
)
$
(0.07
)
WEIGHTED AVERAGE SHARES OUTSTANDING
5,121,688
5,121,688
5,121,688
5,121,688
Management Discussion and Analysis
For the three months ended June 30, 2015, we generated $21,016 in revenue compared to $16,894 for the three months ended June 30, 2014. The increase of $4,122 or 24.4% was primarily due to an increase in game revenue from the Great Merchant generated for the three months ended June 30, 2015.
Our Net Loss for the three months ended June 30, 2015 was $113,081 compared to $216,153 for the three months ended June 30, 2014. The decrease of $103,072 or 47.7% was primarily due to impairment of license agreements and depreciation and amortization.
Comments & Business Outlook
POLLEX, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
For the three months ended
March 31,
2015
2014
REVENUES
$
21,759
$
18,826
COSTS AND EXPENSES
Cost of goods sold
-
586
Selling, general and administrative
53,756
70,806
Related party service agreement
60,000
60,000
Depreciation and amortization
-
5,106
Total Costs and Expenses
113,756
136,498
OPERATING LOSS
(91,997
)
(117,672
)
OTHER EXPENSE
Interest expense
(17,987
)
(17,168
)
Total Other Expense
(17,987
)
(17,168
)
LOSS BEFORE INCOME TAXES
(109,984
)
(134,840
)
PROVISION FOR INCOME TAXES
-
-
NET LOSS
$
(109,984
)
$
(134,840
)
NET LOSS PER COMMON SHARE (Basic and Diluted)
$
(0.02
)
$
(0.03
)
WEIGHTED AVERAGE SHARES OUTSTANDING
5,121,688
5,121,688
Management Discussion and Analysis
For the three months ended March 31, 2015, we generated $21,759 in revenue compared to $18,826 for the three months ended March 31, 2014. The increase of $2,933 or 15.6% was primarily due to increase in revenue from our online game.
Our Net Loss for the three months ended March 31, 2015 was $109,984 compared to $134,840 for the three months ended March 31, 2014. The decrease of $24,856 or 18.4% was primarily due to decrease in total costs and expense.
Comments & Business Outlook
POLLEX, INC.
For the year ended December 31,
2014
2013
REVENUES
$
81,700
$
120,678
COSTS AND EXPENSES
Cost of goods sold
586
33,977
Selling, general and administrative
215,836
130,265
Related party service agreement
240,000
240,000
Bad debt expense (recovery)
-
(97,842
)
Impairment of license agreements
70,000
19,996
Depreciation and amortization
10,188
39,212
Total Costs and Expenses
536,610
365,608
OPERATING LOSS
(454,910
)
(244,930
)
OTHER EXPENSE
Interest expense
(72,497
)
(77,958
)
Total Other Expense
(72,497
)
(77,958
)
LOSS BEFORE INCOME TAXES
(527,407
)
(322,888
)
PROVISION FOR INCOME TAXES
-
-
NET LOSS
$
(527,407
)
$
(322,888
)
NET LOSS PER COMMON SHARE (Basic and Diluted)
$
(0.10
)
$
(0.06
)
WEIGHTED AVERAGE SHARES
OUTSTANDING
5,121,688
5,121,688
Management Discussion and Analysis
Revenue
Total revenue for the year ended December 31, 2014 was $81,700 compared to $120,678 for the year ended December 31, 2013. The decrease of $38,978 or 32% was primarily due to a decrease in revenue from our online games.
The costs of services represent the Company's payments to the licensor for the online games which are active. The decrease in costs of services is due to the Company’s decision to no longer utilize its’ licenses in South Korea.
Our Net Loss for the year ended December 31, 2014 was $527,407 compared to $322,888 for the year ended December 31, 2013. The increase of $204,519 or 63% was primarily due to an increase in total costs and expenses, primarily the impairment of licenses and contributed services, and decrease in revenue.
Comments & Business Outlook
For the three months ended
For the nine months ended
September 30,
September 30,
2014
2013
2014
2013
REVENUES
$
24,905
$
23,563
$
60,625
$
101,312
COSTS AND EXPENSES
Cost of goods sold
-
6,891
586
30,718
Selling, general and administrative
71,098
22,574
220,871
97,887
Related party service agreement
60,000
60,000
180,000
180,000
Bad debt expense
-
8,932
-
37,442
Impairment of license agreements
-
-
70,000
-
Depreciation and amortization
-
8,651
10,188
26,373
Total Costs and Expenses
131,098
107,048
481,645
372,420
OPERATING LOSS
(106,193
)
(83,485
)
(421,020
)
(271,108
)
OTHER EXPENSE
Interest expense
(17,944
)
(19,649
)
(54,110
)
(58,308
)
Total Other Expense
(17,944
)
(19,649
)
(54,110
)
(58,308
)
LOSS BEFORE INCOME TAXES
(124,137
)
(103,134
)
(475,130
)
(329,416
)
PROVISION FOR INCOME TAXES
-
-
-
-
NET LOSS
$
(124,137
)
$
(103,134
)
$
(475,130
)
$
(329,416
)
NET LOSS PER COMMON SHARE (Basic and Diluted)
$
(0.02
)
$
(0.02
)
$
(0.09
)
$
(0.06
)
WEIGHTED AVERAGE SHARES
OUTSTANDING
5,121,688
5,121,688
5,121,688
5,121,688
Management Discussion and Analysis
For the three months ended September 30, 2014, we generated $24,905 in revenue compared to $23,563 for the three months ended September 30, 2013. The increase of $1,342 or 6% was primarily due to an increase in revenue from the Great Merchant in the current quarter.
Our Net Loss for the three months ended September 30, 2014 was $124,137 compared to $103,134 for the three months ended September 30, 2013. The increase of $21,003 or 20% was primarily due to increase in selling general and administrative expenses.
Comments & Business Outlook
For the three months ended
For the six months ended
June 30, June 30,
2014
2013
2014
2013
REVENUES
$ 16,894 $ 44,051 $ 35,720 $ 77,749
COSTS AND EXPENSES
Cost of goods sold
- 14,491 586 23,827
Selling, general and administrative
78,967 47,448 149,773 75,313
Related party service agreement
60,000 60,000 120,000 120,000
Impairment of license agreements
70,000 16,841 70,000 28,510
Depreciation and amortization
5,082 8,620 10,188 17,722
Total Costs and Expenses
214,049 147,400 350,547 265,372
OPERATING LOSS
(197,155 ) (103,349 ) (314,827 ) (187,623 )
OTHER EXPENSE
Interest expense
(18,998 ) (19,437 ) (36,166 ) (38,659 )
Total Other Expense
(18,998 ) (19,437 ) (36,166 ) (38,659 )
LOSS BEFORE INCOME TAXES
(216,153 ) (122,786 ) (350,993 ) (226,282 )
PROVISION FOR INCOME TAXES
- - - -
NET LOSS
$ (216,153 ) $ (122,786 ) $ (350,993 ) $ (226,282 )
NET LOSS PER COMMON SHARE (Basic and Diluted)
$ (0.04 ) $ (0.02 ) $ (0.07 ) $ (0.04 )
WEIGHTED AVERAGE SHARES
OUTSTANDING
5,121,688 5,121,688 5,121,688 5,121,688
Management Discussion and Analysis
For the three months ended June 30, 2014, we generated $16,894 in revenue compared to $44,051 for the three months ended June 30, 2013. The decrease of $27,157 or 62% was primarily due to less revenue generated from our online games.
Our Net Loss for the three months ended June 30, 2014 was $216,153 compared to $122,786 for the three months ended June 30, 2013. The increase of $93,367 or 76% was primarily due to impairment of license agreements.
Comments & Business Outlook
For the three months ended
March 31,
2014
2013
REVENUES
$ 18,826 $ 33,698
COSTS AND EXPENSES
Cost of services
586 9,336
Selling, general and administrative
70,806 27,865
Related party service agreement
60,000 60,000
Bad debt expense
- 11,669
Depreciation and amortization
5,106 9,102
Total Costs and Expenses
136,498 117,972
OPERATING LOSS
(117,672 ) (84,274 )
OTHER EXPENSE
Interest expense
(17,168 ) (19,222 )
Total Other Expense
(17,168 ) (19,222 )
LOSS BEFORE INCOME TAXES
(134,840 ) (103,496 )
PROVISION FOR INCOME TAXES
- -
NET LOSS
$ (134,840 ) $ (103,496 )
NET LOSS PER COMMON SHARE (Basic and Diluted)
$ (0.03 ) $ (0.02 )
WEIGHTED AVERAGE SHARES
OUTSTANDING
5,121,688 5,121,688
Management Discussion and Analysis
For the three months ended March 31, 2014, we generated $18,826 in revenue compared to $33,698 for the three months ended March 31, 2013. The decrease of $14,872 or 44% was primarily due to less revenue generated from our online games.
Our Net Loss for the three months ended March 31, 2014 was $134,840 compared to $103,496 for the three months ended March 31, 2013. The decrease of $31,344 or 30% was primarily due to decrease in total costs and expense and less interest expense.
Comments & Business Outlook
For the year ended
December 31,
2013
2012
REVENUES
$ 120,678 $ 160,808
COSTS AND EXPENSES
Cost of services
33,977 76,555
Selling, general and administrative
130,265 225,443
Related party service agreement
240,000 240,000
Bad debt expense (recovery)
(97,842 ) 97,842
Impairment of license agreements
19,996 53,000
Depreciation and amortization
39,212 26,413
Total Costs and Expenses
365,608 719,253
OPERATING LOSS
(244,930 ) (558,445 )
OTHER INCOME (EXPENSE)
Gain on license termination
- 5,000
Interest expense
(77,958 ) (74,216 )
Total Other Expense
(77,958 ) (69,216 )
LOSS BEFORE INCOME TAXES
(322,888 ) (627,661 )
PROVISION FOR INCOME TAXES
- -
NET LOSS
$ (322,888 ) $ (627,661 )
NET LOSS PER COMMON SHARE (Basic and Diluted)
$ (0.06 ) $ (0.12 )
WEIGHTED AVERAGE SHARES
OUTSTANDING
5,121,688 5,121,688
Management Discussion and Analysis
Revenue
Total revenue for the year ended December 31, 2013 was $120,678 compared to $160,808 for the year ended December 31, 2012. The decrease of $40,130 or 25% was primarily due a decrease in revenue from our online games.
Net Loss for the year ended December 31, 2013 was $322,888 compared to $627,661 for the year ended December 31, 2012. The decrease of $304,773 or 49% was primarily due to a decrease in bad debt expenses and less costs and expenses.
