JERRICK MEDIA HOLDINGS, INC., 10-K filed on 3/30/2012
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2011
Mar. 21, 2012
Jun. 30, 2011
Document and Entity Information
 
 
 
Entity Registrant Name
LILM, Inc. 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 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 Public Float
 
 
$ 187,569 
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
FY 
 
 
CONSOLIDATED BALANCE SHEETS (USD $)
Dec. 31, 2011
Dec. 31, 2010
Cash
   
   
Deposits
 
2,990 
Inventory
2,454 
 
Total Current Assets
2,454 
2,990 
Equipment-Production Mold, Net
1,360 
1,700 
Total Assets
3,814 
4,690 
Accounts Payable
20,874 
31,304 
Notes Payable- Related Party
46,153 
24,774 
Total Current Liabilities
67,027 
56,078 
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
(213,408)
(201,583)
Total Stockholders' Deficiency
(63,213)
(51,388)
Total Liabilities and Stockholders' Deficiency
$ 3,814 
$ 4,690 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Dec. 31, 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 $)
12 Months Ended 176 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2011
Sales
$ 19,747 
$ 6,861 
$ 49,591 
Cost of Goods Sold
(2,526)
 
(2,526)
Gross Profit
17,221 
6,861 
47,065 
General and administrative
28,453 
20,279 
230,995 
Royalties
253 
75 
488 
Depreciation and amortization
340 
 
28,990 
Total Expenses
29,046 
20,354 
260,473 
Net Loss
$ (11,825)
$ (13,493)
$ (213,408)
Basic and dilluted
$ 0.00 
$ (0.01)
 
Weighted Average Outstanding Shares - Basic
2,634,000 
2,624,000 
 
Weighted Average Outstanding Shares - Diluted
2,634,000 
2,624,000 
 
STATEMENT OF STOCKHOLDERS' EQUITY (USD $)
Common Stock
Capital in Excess of Par Value
Accumulated Deficit during Development Stage
Total
Balance at Dec. 29, 1999
 
$ 51,977 
$ (51,977)
 
Issuance of common shares for cash and a patent at .0129-December 30, 1999
1,000 
11,963 
 
12,963 
Issuance of common shares for cash and a patent at .0129-December 30, 1999 - Shares
1,000,000 
 
 
 
Net operating loss
 
 
(8,867)
(8,867)
Balance at Dec. 31, 2000
   
   
   
   
Balance - Shares (end} at Dec. 31, 2000
   
   
   
   
Issuance of common shares for cash at .025-June 27, 2001
800 
19,200 
 
20,000 
Issuance of common shares for cash at .025-June 27, 2001 - Shares
800,000 
 
 
 
Issuance of common shares for cash at .025-August 31, 2001
20 
480 
 
500 
Issuance of common shares for cash at .025-August 31, 2001 - Shares
20,000 
 
 
 
Stock offering costs
 
(375)
 
(375)
Capital contribution- related party
 
100 
 
100 
Net operating loss
 
 
(13,537)
(13,537)
Balance at Dec. 31, 2001
   
   
   
   
Balance - Shares (end} at Dec. 31, 2001
   
   
   
   
Stock offering costs
 
(2,500)
 
(2,500)
Net operating loss
 
 
(13,858)
(13,858)
Balance at Dec. 31, 2002
   
   
   
   
Balance - Shares (end} at Dec. 31, 2002
   
   
   
   
Stock offering costs
 
(6,070)
 
(6,070)
Issuance of common shares for cash at .08 Feb 20 2003
764 
60,336 
 
61,100 
Issuance of common shares for cash at .08 Feb 20 2003 - Shares
763,750 
 
 
 
Net operating loss
 
 
(18,081)
(18,081)
Balance at Dec. 31, 2003
   
   
   
   
Balance - Shares (end} at Dec. 31, 2003
   
   
   
   
Net operating loss
 
 
(1,731)
(1,731)
Balance at Dec. 31, 2004
   
   
   
   
Balance - Shares (end} at Dec. 31, 2004
   
   
   
   
Net operating loss
 
 
(12,692)
(12,692)
Balance at Dec. 31, 2005
   
   
   
   
Balance - Shares (end} at Dec. 31, 2005
   
   
   
   
Net operating loss
 
 
(15,821)
(15,821)
Balance at Dec. 31, 2006
   
   
   
   
Balance - Shares (end} at Dec. 31, 2006
   
   
   
   
Net operating loss
 
 
(19,881)
(19,881)
Balance at Dec. 31, 2007
   
   
   
   
Balance - Shares (end} at Dec. 31, 2007
   
   
   
   
Net operating loss
 
 
(14,674)
(14,674)
Balance at Dec. 31, 2008
   
   
   
   
Balance - Shares (end} at Dec. 31, 2008
   
   
   
   
Issuance of common shares for cash at .25 Nov 03 2009
20 
4,980 
 
5,000 
Issuance of common shares for cash at .25 Nov 03 2009 - Shares
20,000 
 
 
 
Net operating loss
 
 
(16,971)
(16,971)
Balance at Dec. 31, 2009
   
   
   
   
Balance - Shares (end} at Dec. 31, 2009
   
   
   
   
Issuance of common shares for cash at .25 Apr 06 10
20 
4,980 
 
5,000 
Issuance of common shares for cash at .25 Apr 06 10 - Shares
20,000 
 
 
 
Issuance of common shares for cash at .25 Jun 29 10
10 
2,490 
 
2,500 
Issuance of common shares for cash at .25 Jun 29 10 - Shares
10,000 
 
 
 
Net operating loss
 
 
(13,493)
(13,493)
Balance at Dec. 31, 2010
2,634 
147,561 
(201,583)
(51,388)
Balance - Shares (end} at Dec. 31, 2010
2,633,750 
 
 
 
Net operating loss
 
 
(11,825)
(11,825)
Balance at Dec. 31, 2011
$ 2,634 
$ 147,561 
$ (213,408)
$ (63,213)
Balance - Shares (end} at Dec. 31, 2011
2,633,750 
 
 
 
STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical)
12 Months Ended
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2003
Dec. 31, 2001
Dec. 31, 2000
Issuance of common shares for cash and a patent at December 30, 1999 - price per share
 
 
 
 
$ 0.0129 
Issuance of common shares for cash at June 27, 2001 - price per share
 
 
 
$ 0.0250 
 
Inssuance of common shares for cash at August 31, 2001 - price per share
 
 
 
$ 0.0250 
 
Issuance of common shares for cash at Feb 20 2003 - price per share
 
 
$ 0.0800 
 
 
Issuance of common shares for cash at Nov 03 2009 - price per share
 
$ 0.2500 
 
 
 
Issuance of common shares for cash at Apr 06 10 - price per share
$ 0.2500 
 
 
 
 
Issuance of common shares for cash at Jun 29 10 - price per share
$ 0.2500 
 
 
 
 
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
12 Months Ended 176 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2011
Net Loss
$ (11,825)
$ (13,493)
$ (213,408)
Contributions to capital- expenses
 
 
100 
Issuance of common stock for expenses
 
 
8,700 
Depreciation and amortization
340 
 
28,990 
Change in inventory
536 
(2,990)
(2,454)
Change in accounts payable
(10,430)
11,249 
17,653 
Net Cash Flows (Used in) Operations
(21,379)
(5,234)
(160,419)
Purchase of patent
 
 
(28,650)
Purchase of Equipment
 
(1,700)
(1,700)
Purchase office equipment
 
 
(2,096)
Net Cash Flows (Used in) Investing Activities
 
(1,700)
(32,446)
Notes Payable from related party
27,025 
8,866 
61,488 
Payments to related party
(5,646)
(9,689)
(15,335)
Proceeds from issuance of common stock
 
7,500 
146,712 
Net Cash Flows provided by Financing Activities
21,379 
6,677 
192,865 
Net Change in Cash
 
(257)
 
Cash at Beginning of Period
   
257 
 
Cash at End of Period
   
   
   
Issuance of 922,900 common shares for a patent- 2000
 
 
11,963 
Contributions to capital- expenses- 2001
 
 
100 
Issuance of common stock for expenses
 
 
$ 8,700 
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 December 31, 2011.
Summary of Significant Accounting Policies
Significant Accounting Policies [Text Block]
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 December 31, 2011, the Company had a net operating loss available for carryforward of $157,977. The income tax benefit of approximately $47,000 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 recent accounting pronouncements will have a material impact on its financial statements.

Inventory
Inventory Disclosure [Text Block]
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, UT and stored in a small warehouse.  The product is sold over the internet and is assembled at time of shipping by the Company and is delivered direct 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.
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 12 months ended December 31, 2011 was $340.
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.