JERRICK MEDIA HOLDINGS, INC., 10-Q/A filed on 9/6/2012
Amended Quarterly Report
Document and Entity Information
3 Months Ended
Jun. 30, 2012
Aug. 11, 2012
Document and Entity Information
 
 
Entity Registrant Name
LILM, Inc. 
 
Document Type
10-Q 
 
Document Period End Date
Jun. 30, 2012 
 
Amendment Flag
false 
 
Entity Central Index Key
0001357671 
 
Current Fiscal Year End Date
--12-31 
 
Entity Common Stock, Shares Outstanding
 
2,633,750 
Entity Filer Category
Smaller Reporting Company 
 
Entity Current Reporting Status
Yes 
 
Entity Voluntary Filers
No 
 
Entity Well-known Seasoned Issuer
No 
 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period Focus
Q2 
 
CONSOLIDATED BALANCE SHEETS (USD $)
Jun. 30, 2012
Dec. 31, 2011
Inventory
$ 2,047 
$ 2,454 
Total Current Assets
2,047 
2,454 
Equipment-Production Mold, Net
1,190 
1,360 
Total Assets
3,237 
3,814 
Accounts Payable and Accrued Expenses
26,903 
20,874 
Notes Payable- Related Party
48,351 
46,153 
Total Current Liabilities
75,254 
67,027 
Common Stock 25,000,000 shares authorized at $0.001 par value; 2,633,750 shares issued and outstanding
2,634 
2,634 
Capital in excess of par value
147,561 
147,561 
Accumulated deficit during development stage
(222,212)
(213,408)
Total Stockholders' Deficiency
(72,017)
(63,213)
Total Liabilities and Stockholders' Deficiency
$ 3,237 
$ 3,814 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Common stock par value
$ 0.001 
$ 0.001 
Common stock shares authorized
25,000,000 
25,000,000 
Common stock shares issued
2,633,750 
2,633,750 
Common stock shares outstanding
2,633,750 
2,633,750 
CONSOLIDATED STATEMENT OF OPERATIONS (USD $)
Share data in Thousands, unless otherwise specified
3 Months Ended 6 Months Ended 182 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Sales
$ 3,686 
$ 4,923 
$ 8,490 
$ 10,984 
$ 58,081 
Cost of Goods Sold
(421)
(578)
(991)
(1,426)
(3,517)
Gross Profit
3,265 
4,345 
7,499 
9,558 
54,564 
General and administrative
5,970 
7,507 
15,103 
15,265 
246,098 
Royalties
42 
76 
100 
152 
588 
Depreciation and amortization
85 
85 
170 
170 
29,160 
Total Expenses
6,097 
7,668 
15,373 
15,587 
275,846 
Interest expense
471 
 
930 
 
930 
Net Loss
$ (3,303)
$ (3,323)
$ (8,804)
$ (6,029)
$ (222,212)
Basic and diluted (stated in 1000's)
2,634 
2,634 
2,634 
2,634 
 
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
6 Months Ended 182 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Net Loss
$ (8,804)
$ (6,029)
$ (222,212)
Contributions to capital- expenses
 
 
100 
Issuance of common stock for expenses
 
 
8,700 
Depreciation and amortization
170 
170 
29,160 
Change in inventory
407 
(384)
(2,047)
Change in accounts payable
6,029 
(3,611)
23,682 
Net Cash Flows (Used in) Operations
(2,198)
(9,854)
(162,617)
Purchase of patent
 
 
(28,650)
Purchase of Equipment-Production Mold
 
 
(1,700)
Purchase office equipment
 
 
(2,096)
Net Cash Flows (Used in) Investing Activities
 
 
(32,446)
Notes Payable from related party
2,285 
14,805 
63,773 
Payments to related party
(87)
(4,791)
(15,422)
Proceeds from issuance of common stock
 
 
146,712 
Net Cash Flows provided by Financing Activities
2,198 
10,014 
195,063 
Net Change in Cash
 
160 
 
Cash at End of Period
 
160 
 
Issuance of 922,900 common shares for a patent- 2000
 
 
11,963 
Contributions to capital- expenses- 2001
 
 
$ 100 
1. Organization
1. Organization

1. ORGANIZATION

 

The Company was incorporated under the laws of the state of Nevada on December 30, 1999 with authorized common stock of 25,000,000 shares with a par value of $0.001.

 

The principal business activity of the Company is to manufacture and market the LiL Marc urinal used in the training of young boys.

 

During January 2005 the Company organized LiL Marc, Inc., in the state of Utah, and transferred all its assets, liabilities, and operations to LiL Marc Inc. in exchange for all of the outstanding stock of LiL Marc, Inc. for the purpose of continuing the operations in the subsidiary.

 

LiL Marc, Inc. (predecessor) was incorporated under the laws of the state of Nevada on April 22, 1997 for the purpose of marketing and sales of the LiL Marc training urinal for use by young boys. The marketing and sales activity was transferred to LILM, Inc. on December 30, 1999.

 

Included in the following financial statements are the combined statements of operations of LIL Marc, Inc. (predecessor) for the period April 22, 1997 to December 30, 1999 and LILM, Inc., and its subsidiary, for the period December 30, 1999 to June 30, 2012.

2. Summary of Significant Accounting Policies
2. Summary of Significant Accounting Policies

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Accounting Method

 

The Company recognizes income and expenses based on the accrual method of accounting.

 

Dividend Policy

 

The Company has not yet adopted a policy regarding payment of dividends.

 

Income Taxes

 

The Company utilizes the liability method of accounting for income taxes.  Under the liability method deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax bases of the assets and liabilities and are measured using the enacted tax rates and laws that will be in effect, when the differences are expected to reverse.  An allowance against deferred tax assets is recorded, when it is more likely than not, that such tax benefits will not be realized.

 

On June 30, 2012, the Company had a net operating loss available for carryforward of $166,781. The income tax benefit of approximately $50,000 from the carryforward has been fully offset by a valuation allowance as we have determined the ability to use the future tax benefit is doubtful.  The net operating loss will expire starting in 2017.

 

Revenue Recognition

 

Revenue is recognized upon the completion of the sale and shipment of the training urinal products.

 

Advertising and Market Development

 

The company expenses advertising and market development costs as incurred.

 

Financial Instruments

 

The carrying amounts of financial instruments, including cash and accounts payable, are considered by management to be their estimated fair values due to their short term maturities.

 

Basic and Diluted Net Income (Loss) Per Share

 

Basic net incomes (loss) per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net income (loss) per share amounts are computed using the weighted average number of common shares and common equivalent shares outstanding as if shares had been issued on the exercise of any common share rights unless the exercise becomes antidilutive and then the basic and diluted per share amounts are the same.

 

Financial and Concentrations Risk

 

The Company does not have any concentration or related financial credit risk.

 

Estimates and Assumptions

 

Management uses estimates and assumptions in preparing financial statements in accordance with accounting principles generally accepted in the United States of America.  Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses.  Actual results could vary from the estimates that were assumed in preparing these financial statements.

 

Principles of Consolidation

 

The accompanying consolidated financial statements include the accounts of the Company and its subsidiary from its inception. All significant intercompany accounts and balances have been eliminated in consolidation.

 

Recent Accounting Pronouncements

 

The Company does not expect that the adoption of recent accounting pronouncements will

have a material impact on its financial statements.

3. Inventory
3. Inventory

3. INVENTORY

 

The product is a stand alone product made of plastic consisting of a urinal produced  in California  using a blow  mold and a stand and base produced  in China with an injection mold.  All inventory is shipped to Salt Lake City, Utah, and stored in a small warehouse.  The product is sold via the Internet, is assembled at time of shipping by the Company, and is delivered to customers or to wholesale resellers using a ground courier service.  During December 2010, the Company paid a deposit of $2,990 to a China consortium for parts to be used in its training urinal product. 200 samples were delivered to the Company in January 2011 and sold to customers.  Another 2,100 were delivered to the company in February 2011 and are currently being sold to customers.

Inventory is reported at the lower of cost or net realizable value.

4. Equipment -production Mold
4. Equipment -production Mold

4.  EQUIPMENT –PRODUCTION MOLD

 

On August 2, 2010, the Company purchased an injection mold from a China consortium for $1,700 to produce the base and stand for the LiL Marc training urinal.  The Company has determined the mold went into service on or about January 1, 2011 and is being depreciated over a 5 year period. Depreciation expense for the 6 months ended June 30, 2012 and 2011 was $170, for each period.

5. Patent
5. Patent

5.  PATENT

 

The Company acquired a patent from a related party, for the LiL Marc training urinal and was recorded at the predecessor cost, less amortization. The patent was issued on July 16, 1991 and has been fully amortized.

 

The terms of the acquisition of the patent includes a royalty of $.25, due to the inventor, on the sale of each training urinal

7. Private Placement
7. Private Placement

7.  PRIVATE PLACEMENT

 

On September 17, 2009 the Company commenced a private placement offering of 2,200,000 of its common shares $0.001 par value at a price of $0.25 per share.  On November 3, 2009 the Company sold 20,000 shares of that offering. On April 6, 2010 the Company sold 20,000 shares of that offering.  On June 29, 2010 the Company sold 10,000 shares of that offering  The Company has since closed the offering.

 

8. Going Concern
8. Going Concern

8. GOING CONCERN

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company does not have sufficient working capital for its planned activity, and to service its debt, which raises substantial doubt about its ability to continue as a going concern.

 

Continuation of the Company as a going concern is dependent upon obtaining additional working capital and the management of the Company has developed a strategy, which it believes will accomplish this objective through short term loans from an officer-director, and additional equity investment, which will enable the Company to continue operations for the coming year.

2. Summary of Significant Accounting Policies: Revenue Recognition Policy (Policies)
Revenue Recognition Policy

Revenue Recognition

 

Revenue is recognized upon the completion of the sale and shipment of the training urinal products.

2. Summary of Significant Accounting Policies: Advertising and Market Development Policy (Policies)
Advertising and Market Development Policy

Advertising and Market Development

 

The company expenses advertising and market development costs as incurred.

2. Summary of Significant Accounting Policies: Financial Instruments Policy (Policies)
Financial Instruments Policy

Financial Instruments

 

The carrying amounts of financial instruments, including cash and accounts payable, are considered by management to be their estimated fair values due to their short term maturities.

2. Summary of Significant Accounting Policies: Basic and Diluted Net Income (loss) Per Share Policy (Policies)
Basic and Diluted Net Income (loss) Per Share Policy

Basic and Diluted Net Income (Loss) Per Share

 

Basic net incomes (loss) per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net income (loss) per share amounts are computed using the weighted average number of common shares and common equivalent shares outstanding as if shares had been issued on the exercise of any common share rights unless the exercise becomes antidilutive and then the basic and diluted per share amounts are the same.

2. Summary of Significant Accounting Policies: Financial and Concentrations Risk Policy (Policies)
Financial and Concentrations Risk Policy

Financial and Concentrations Risk

 

The Company does not have any concentration or related financial credit risk.

2. Summary of Significant Accounting Policies: Estimates and Assumptions Policy (Policies)
Estimates and Assumptions Policy

Estimates and Assumptions

 

Management uses estimates and assumptions in preparing financial statements in accordance with accounting principles generally accepted in the United States of America.  Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses.  Actual results could vary from the estimates that were assumed in preparing these financial statements.

2. Summary of Significant Accounting Policies: Principles of Consolidation Policy (Policies)
Principles of Consolidation Policy

Principles of Consolidation

 

The accompanying consolidated financial statements include the accounts of the Company and its subsidiary from its inception. All significant intercompany accounts and balances have been eliminated in consolidation.

2. Summary of Significant Accounting Policies: Recent Accounting Pronouncements Policy (Policies)
Recent Accounting Pronouncements Policy

Recent Accounting Pronouncements

 

The Company does not expect that the adoption of recent accounting pronouncements will

have a material impact on its financial statements.

3. Inventory: Inventory Policy (Policies)
Inventory Policy

Inventory is reported at the lower of cost or net realizable value.

1. Organization (Details) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Sep. 17, 2009
Dec. 30, 1999
Common stock shares authorized
25,000,000 
25,000,000 
 
25,000,000 
Common stock par value
$ 0.001 
$ 0.001 
$ 0.001 
$ 0.001 
3. Inventory (Details) (USD $)
Jun. 30, 2012
Deposit paid for parts to be used in production
$ 2,990 
4. Equipment -production Mold (Details) (USD $)
3 Months Ended 6 Months Ended 182 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Purchase of Equipment
$ 1,700 
 
 
 
$ 1,700 
Depreciation and amortization
$ 85 
$ 85 
$ 170 
$ 170 
$ 29,160 
5. Patent (Details) (USD $)
Jun. 30, 2012
Royalty Expense Per Unit
$ 0.25 
7. Private Placement (Details) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Jun. 29, 2010
Apr. 26, 2010
Nov. 3, 2009
Sep. 17, 2009
Dec. 30, 1999
Common Shares Offered
 
 
 
 
 
2,200,000 
 
Common stock par value
$ 0.001 
$ 0.001 
 
 
 
$ 0.001 
$ 0.001 
Offering Price
 
 
 
 
 
$ 0.25 
 
Common Shares Sold
 
 
10,000 
20,000 
20,000