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| VCHS > SEC Filings for VCHS > Form 10-Q on 14-Sep-2012 | All Recent SEC Filings |
14-Sep-2012
Quarterly Report
This section of this report 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, which apply only as of the
date of this report. These forward looking statements are subject to certain
risks and uncertainties that could cause actual results to differ materially
from historical results or our predictions.
Overview
Vacation Home Swap, Inc. ("Vacation Home Swap", "the Company", "our" or "we") was incorporated in the State of Nevada as a for-profit company on March 31, 2009. The Company is a development stage company organized to enter into an Internet-based vacation home swapping company. The company plans to have a website where people can exchange homes for their holidays and travels.
As of the fiscal quarter ended July 31, 2012 we had no cash in the bank. We incurred operating expenses in the amount of $4,150 in the three month period ended July 31, 2012 as compared to $7,211 at three month period ended July 31, 2011. Since inception we have incurred operating expenses of $90,732.
The net decrease in cash provided by operating activities during the quarter ended July 31, 2012 was none compared to a net decrease in cash and cash equivalents for the quarter ended July 31, 2011 of $8,874.
The cash provided by financing activities during the quarter ended July 31, 2012 was none compared to $ 8,614 for the quarter ended July 31, 2011.
Plan of Operation
The Company has not yet generated any revenue from its operations. As of the fiscal quarter ended July 31, 2012 we had no cash. We incurred operating expenses in the amount of $4,150 in the quarter ended July 31, 2012. These operating expenses were comprised of professional fees and office and general expenses.
Our current cash holdings will not satisfy our liquidity requirements and we will require additional financing to pursue our planned business activities. We have registered 4,000,000 of or our common stock for sale to the public. Our registration statement became effective on April 8, 2010 and we are in the process of seeking equity financing to fund our operations over the next 12 months.
Management believes that if subsequent private placements are successful, we will generate sales revenue within the following twelve months thereof. However, additional equity financing may not be available to us on acceptable terms or at all, and thus we could fail to satisfy our future cash requirements.
If Vacation Home Swap is unsuccessful in raising the additional proceeds through a private placement offering it will then have to seek additional funds through debt financing, which would be
Over the 12 month period starting upon completion of the offering under this registration statement, Vacation Home Swap must raise capital and start its sales. The first stage of our operations over this period is to establish our office and acquire the computer and office equipment we need to begin operations during the initial 60 days after raising enough money to start our business. We believe that it will cost $8,000 to buy and secure the necessary computer equipment. We do not intend to hire employees. Our sole officer and director will handle our administrative duties.
The second stage is to hire consultants to develop the key part of the business:
create the website. Our Company`s website will include links to maps, weather
information, country habits, local services and stores, community information,
information about neighbourhood and special events. Concurrently we intend to
purchase a software system to comply with our needs, which the client can add
home pictures, videos from his home, indicate through a link the local services
and stores nearby, and create an internal inbox for messages received/sent. We
believe that it will cost $15,000 initially to have our website operational. The
initial operation of the website is anticipated to be ready in 120 days after
raising enough money to start our business.
The last stage is our Marketing and Sales campaign. We intend to include advertisements in travel and home design magazine and various Internet search engines; and promote and sell ads into our website along famous coffee shops, outlets, restaurants and bars, technology companies and airline companies. We believe that marketing and sales campaign will cost up to $45,000. We expect to be fully operational within 180 days after raising enough money to start our business.
We do not currently have any employees and management does not plan to hire employees at this time. We do not expect the purchase or sale of any significant equipment and has no current material commitments.
Limited Operating History; Need for Additional Capital
There is no historical financial information about us upon which to base an evaluation of our performance. We are a development stage corporation and have not generated any revenues from operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources.
If Vacation Home Swap is unsuccessful in raising the additional proceeds through a private placement offering it will then have to seek additional funds through debt financing, which would be highly difficult for a new development stage company to secure. Therefore, the company is highly dependent upon the success of the anticipated private placement offering and failure thereof would result in Vacation Home Swap having to seek capital from other sources such as debt financing, which may not even be available to the company. However, if such financing were available, because Vacation Home Swap is a development stage company with no operations to date, it would likely have to pay additional costs associated with high risk loans and be subject to an above market interest rate. At such time these funds are required, management would evaluate the terms of such debt financing and determine whether the business could sustain operations and growth and manage the debt load. If Vacation Home Swap cannot raise additional proceeds via a private placement of its common stock or secure debt financing it would be required to cease business operations. As a result, investors in Vacation Home Swap common stock would lose all of their investment.
Off Balance Sheet Arrangement
The company is dependent upon the sale of its common shares to obtain the funding necessary to carry its business plan. Our President, Donald MacDow has undertaken to provide the Company with operating capital to sustain its business over the next twelve month period, as the expenses are incurred, in the form of a non-secured loan. However, there is no contract in place or written agreement securing these agreements. Investors should be aware that Mr. MacDow expression is neither a contract nor agreement between him and the company.
Other than the above described situation the Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company's financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
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