JERRICK MEDIA HOLDINGS, INC., 10-Q filed on 8/11/2011
Quarterly Report
Document and Entity Information
3 Months Ended
Jun. 30, 2011
Aug. 2, 2011
Document and Entity Information
 
 
Entity Registrant Name
LILM, Inc. 
 
Document Type
10-Q 
 
Document Period End Date
Jun. 30, 2011 
 
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
2011 
 
Document Fiscal Period Focus
Q2 
 
CONSOLIDATED BALANCE SHEETS (USD $)
Jun. 30, 2011
Dec. 31, 2010
Current Assests
 
 
Cash
$ 160 
 
Inventory
3,374 
2,990 
Total Current Assets
3,534 
2,990 
Equipment-Production Mold, Net
1,530 
1,700 
Total Assets
5,064 
4,690 
Current Liabilities
 
 
Accounts Payable
27,693 
31,304 
Note Payable- Related Party
34,788 
24,774 
Total Current Liabilities
62,481 
56,078 
Stockholders' Deficiency
 
 
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
(207,612)
(201,583)
Total Stockholders' Deficiency
(57,417)
(51,388)
Total Liabilities and Stockholders' Deficiency
$ 5,064 
$ 4,690 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Jun. 30, 2011
Dec. 31, 2010
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 $)
3 Months Ended
Jun. 30,		 6 Months Ended
Jun. 30,
2011
2010
2011
2010
172 Months Ended
Jun. 30, 2011
Sales
$ 4,923 
$ 2,978 
$ 10,984 
$ 3,942 
$ 40,828 
Cost of Goods Sold
(578)
 
(1,426)
 
(1,426)
Gross Profit
4,345 
2,978 
9,558 
3,942 
39,402 
Expenses
 
 
 
 
 
General and administrative
7,507 
5,068 
15,265 
11,025 
217,807 
Royalties
76 
34 
152 
46 
387 
Depreciation and amortization
85 
 
170 
 
28,820 
Total expenses
7,668 
5,102 
15,587 
11,071 
247,014 
Net Loss
$ (3,323)
$ (2,124)
$ (6,029)
$ (7,129)
$ (207,612)
Net Loss Per Common Share
 
 
 
 
 
Basic and diluted
 
 
 
 
 
Weighted Average Outstanding Shares
 
 
 
 
 
Weighted Average Outstanding Shares - Basic
2,634,000 
2,623,000 
2,634,000 
2,623,000 
 
Weighted Average Outstanding Shares - Diluted
2,634,000 
2,623,000 
2,634,000 
2,623,000 
 
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
6 Months Ended
Jun. 30,
2011
2010
172 Months Ended
Jun. 30, 2011
Cash Flows From Operating Activities
 
 
 
Net Loss
$ (6,029)
$ (7,129)
$ (207,612)
Contributions to capital- expenses
 
 
100 
Issuance of common stock for expenses
 
 
8,700 
Depreciation and amortization
170 
 
28,820 
Change in inventory
(384)
 
(3,374)
Change in accounts payable
(3,611)
6,057 
24,472 
Net Cash Flows (Used in) Operations
(9,854)
(1,072)
(148,894)
Cash Flows From Investing Activities
 
 
 
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)
Cash Flows From Financing Activities
 
 
 
Notes Payable from related party
14,805 
1,545 
49,268 
Payments to related party
(4,791)
(5,870)
(14,480)
Proceeds from issuance of common stock
 
7,500 
146,712 
Net Cash Flows provided by Financing Activities
10,014 
3,175 
181,500 
Net Change in Cash
160 
2,103 
160 
Cash at Beginning of Period
 
257 
 
Cash at End of Period
160 
2,360 
160 
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES
 
 
 
Issuance of 922,900 common shares for a patent- 2000
 
 
11,963 
Contributions to capital- expenses- 2001
 
 
$ 100 
Organization
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
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 $.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, 2011.
 
Summary of Significant Accounting Policies
Significant Accounting Policies [Text Block]
2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Accounting Methods


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, 2011, the Company had a net operating loss available for carryforward of $152,181. The income tax benefit of approximately $45,654 from the carryforward has been fully offset by a valuation reserve because the use of the future tax benefit is doubtful since the Company has not started full operations.  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 other recent accounting pronouncements will have a material impact on its financial statements.
 
Inventory
Inventory Disclosure [Text Block]
3.    INVENTORY


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.
 
Equipment-Production Mold
Property, Plant and Equipment Disclosure [Text Block]
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 six months ended June 30, 2011 was $170.
 
Patent
Intangible Assets Disclosure [Text Block]
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.
 
Private Placement
Stockholders' Equity Note Disclosure [Text Block]
7.  PRIVATE PLACEMENT


On September 17, 2009 the Company commenced a private placement offering of 2,200,000 of its common shares $.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.
 
Going Concern
Going Concern Note
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.