Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
GENERAL
We were incorporated in the State of Nevada on July 5, 2012. Our company is involved in the business of production and sale of fast food. Objective of our company is to establish a market in the Balkan region, particularly in the country of Serbia. Company intends to provide the community with authentic and traditional Serbian
fast food,
which includes barbequed
beef,
pork,
lamb, chicken, hamburgers, cheeseburgers, minced meat
pies,
French fries and traditional Serbian salads, pickles and garnish. We plan to generate revenue by selling traditional Serbian fast
food cuisine from a chain of fast food outlets. Company made a contract with Slavko Didic to rent a property in order to conduct our business at Save Jovsica 9e, Zvezdara 11000, Belgrade, Serbia. Since inception through April 30, 2013, the Company has not generated any revenue and has accumulated losses of $22,779.
DESCRIPTION OF PRODUCT
The ‘Pljeskavica’ will be our initial main sale product: a half-pound slab of grilled meat - a pork and beef compound mixed with a blend of herbs and spices – slapped in a lightly toasted sesame seed bun and served with a generous side portion of salad, pickles and garnish.
In the Balkans we get an impression that consumers don’t like their food dry and they seem to like to temper red meat with salads and spicy pepper garnishes. http://en.wikipedia.org/wiki/Serbian_cuisine
Leading sales we will seek to have from offering of the Cevap, Raznjic and Kobasica burgers. These will be quarter-pounders, grilled and made exclusively and respectively from beef, pork and lamb. Skewered
chicken kebabs and sausages as well as pastries with multiple meat
and vegetable options
will also
be on the
menu also offer of fries and fizzy drinks.
Our target clients will initially be students so we will look to establish our outlets close to the college campuses. We may also establish outlets in the malls and near student dormitories, districts heavily populated by student communities. We hope to use a marketing strategy of offering a cheap and moderately healthy alternative to established fast-food brands and initially targeting college communities, and then expanding to the wider adult and child population.
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INDUSTRY OF FAST FOOD:
Miami Days Corp. intends to work to be efficient and innovative in order to secure business and achieve success by offering a good product at competitive prices within this industry.
The Fast Food Service is very developed in Serbia, which is the region where the company will start its operations. Burger selling outlets are large in number and this is caused in part by the low cost of meat and an abundance of inexpensive Soya and additives. In a developed and competitive local market, Miami Days Corp. will also be competing with international well-known establishments. We believe that many of our competitors have greater financial resources and liquidity and may be able to withstand sales or price decreases better than we can at present time. We also expect to continue to face rivalry from new market entrants. We may be unable to continue to compete effectively with these
existing or new competitors, which could have a material adverse effect on the company. Company endeavors to research and apply marketing strategies, quality analysis and customer service reviews in order to sustain and gain customer loyalty
MAIN PRODUCTS:
Leading sales we will seek to have from offering of the Cevap, Raznjic and Kobasica burgers
WAGES: Average monthly wage for our employee: $340.00
AGREEMENT
On August 7, 2012, we signed a rental agreement with Slavko Didic to rent the premises located at
Save Jovsica 9E, Zvezdara 11000 in Belgrade, Serbia. The agreement provides for an initial 12-month term commencing on November 1, 2012 for a monthly rent of $1,000, and a $1,000 security deposit. The agreement is automatically renewable on a month-to-month basis after the end of the initial term, but may be terminated by either party giving to the other at least a 30-day prior written notice. On November 15, 2012, the rental agreement was amended to provide for a suspension of monthly rent payments of $1,000 until the Company raises funds sufficient to begin operations. However, the Company will not be entitled to occupy the premises until it is able to resume making monthly rent payments.
PRICING
Pljeskavica is a mixture of ground meat which will sell for $15.50 per kilogram, Cevap is a grilled dish of a minced meat, which will sell for $16.80 per kilogram, Raznjic is a type of skewered kebab, which will sell for $14.20 per kilogram, and Kobasica is type of sausage which will sell for $10.30 per kilogram. Kilograms are used to simplify pricing burgers are sold in smaller portions. There are 35.274 ounces in a Kilogram.
Results of Operation
Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.
We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.
Three and Nine Months Period Ended April 30, 2013
Our net loss for the three and nine month periods ended April 30, 2013 was $ 9,846 and $ 22,454. During the three and nine months periods ended April 30, 2013 we have not generated any revenue.
During the three months period ended April 30, 2013, our operating expenses were general and administrative expenses $9,828, and depreciation expenses $18. The weighted average number of shares outstanding was 4,903,333 for the three months period ended April 30, 2013. During the nine months period ended April 30, 2013, our general and administrative expenses were $ 22,404, and depreciation expenses $
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50. The weighted average number of shares outstanding was 4,301,111 for the nine months period ended April 30, 2013.
Liquidity and Capital Resources
Three Months Period Ended April 30, 2013
As at April 30, 2013, our total assets were $4,471 compared to $7,775 in total assets at July 31, 2012. Total assets were comprised of $4,171 in cash and fixed assets less accumulated depreciations of $ 300. Our current liabilities were $9,700.
Stockholders’ equity was $ (5,229) as of April 30, 2013 compare to stockholders' equity of $ 3,675 as of July 31, 2013.
Cash Flows from Operating Activities
We have not generated positive cash flows from operating activities. For the nine months period ended April 30, 2013, net cash flows used in operating activities was $(22,404). For the period from inception (July 5, 2012) to April 30, 2013, net cash from operating activities was $(22,729).
Cash Flows from Investing Activities
For the nine months period ended April 30, 2013 the Company generated $(350) cash flow
.
Cash Flows from Financing Activities
We have financed our operations primarily from either advancements or the issuance of equity. For the nine months period ended April 30, 2013, net cash provided by financing activities was $19,150. For the period from inception (July 5, 2012) to April 30, 2013, net cash provided by financing activities was $27,250 received from proceeds from issuance of common stock.
Plan of Operation and Funding
We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.
Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next three months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations. We will have to raise
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additional funds in the next twelve months in order to sustain and expand our operations. We currently do not have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of equity financing from the sale of our common stock. We have and will continue to seek to obtain short-term loans from our directors, although no future arrangement for additional loans has been made. We do not have any agreements with our directors concerning these loans. We do not have any arrangements in place for any future equity financing.
Off-Balance Sheet Arrangements
As of the date of this Quarterly Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
Going Concern
The independent auditors' review report accompanying our April 30, 2013 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.