(Note: The following Plan of Operations constituted our business plan during the
2007, and up to the end of fiscal 2009. After an analysis of the lack of
progress, the Company filed a Form 15 with the
This report contains forward-looking statements within the meaning of Section
21E of the Securities and Exchange Act of 1934 and Section 27A of the Securities
Act of 1933. These forward-looking statements involve a number of risks and
uncertainties that may cause actual results to differ materially from those
discussed in, or implied by, such forward-looking statements. The Company's
future operating results are dependent upon many factors, including but not
limited to: (i) whether the Company is able to complete its sale to
Plan of Operations
This plan of future operations contains forward-looking statements that involve risks, uncertainties, and assumptions. The actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including, but not limited to, those described elsewhere in this report.
This plan of future operations provides a summary of the intended operations of the Company's interim management following the closing of the DSPA.
8
The Product-The Children's Internet®
On
Under the terms of the DSPA,
We intend to sell the product for
Sales and Marketing Plan
Although The Children's Internet® service is not currently being offered, upon closing the DSPA, we intend to affect a broad based Sales and Marketing Plan. We will focus on establishing long term, value-driven relationships with:
· Parents and Kids · The School Market: School Administrators and Teachers · Major ISP's such as Comcast, Yahoo, AOL, etc. · Non-profit organizations such as religious groups,Boy Scouts andGirl Scouts , etc. · ISP customers with an interest in protecting their families
We will focus our sales and marketing programs on five distinct areas where we can produce revenue:
1. Consumer Sales- We intend to sell monthly subscriptions of the service directly to consumers via a nationwide Sales Agent program. Consumers may also acquire the product directly from the Company via our website at: www.thechildrensinternet.com. Previously, through grassroots efforts during 2006 the Company entered into sales agent agreements with ten individuals. In 2007, these agreements automatically terminated. 9 2. Wholesalers- We intend to sell the Children's Internet® to independent distributors, resellers and ISPs who will sell it as a value-added service to their current customer base. Targets would include companies such as Comcast, AT&T,EarthLink and the hundreds of "local" ISPs throughoutthe United States . In these situations, the business model changes dramatically as we would not be engaged in billing, collecting, customer service or level one technical support. 3. Charitable organizations- We intend to "partner" with non-profit organizations to have them market the product. Targets would include large religious organizations, various scout programs, Internet safety activists, law enforcement agencies, etc. Moreover, we may offer any age-appropriate school, public or private, 20 free licenses for a year. From there, we expect Parent Teacher Associations to use the product as a fund raiser, deepening our penetration into the homes of children. Channels of Distribution
Subject to securing financing in addition to the funds raised under the DSPA, we
will hire a direct sales force. The primary targets of our direct sales force
will be the largest Internet Service Providers as well as other national
organizations that market to the most appropriate demographic for our service.
We believe one or more of the largest ISPs in
The indirect channel, composed of non-salaried independent sales agents and wholesale distributors, will target a wide range of opportunities, from local charities to national organizations where they may have an influential contact. These sales agents may have the opportunity to employ secondary resellers to work for them, but we will not market using a multi-level marketing plan.
Future products and services
In the future, we anticipate generating revenues via advertising sold to the purveyors of children goods and services. After successfully distributing our core service, we intend to engage in the merchandising of The Children's Internet® themed products, from clothing to toys to books.
Future Staff and Employees
Where practicable we plan to contract with third party companies to outsource administrative support services that effectively support the growth of the business. These outsource providers will handle technical support, telemarketing and the order taking process and media placement. We intend to hire employees where their contributions to our business will be the most significant, such as in technology development and management.
Market Share, Cash Flow and Profitability
Although market data is not exact, and varies depending on the source, with a
mix of business generated from the respective channels of distribution, we
believe that, subject to the closing of the DSPA, we can be cash flow positive
and profitable within eighteen months of closing the DSPA. This estimate is
based on data that indicates that in
10
We accomplished none of these goals in the fiscal year 2008.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Overview
Management's discussion and analysis of financial condition and results of operations, or MD&A, is provided as a supplement to the consolidated financial statements and notes included elsewhere in this Form 10-K and are designed to provide an understanding of our results of operations, financial condition and changes in financial condition. Our MD&A is comprised of:
· Introduction. This section provides a general description of our business. This section also includes a table of selected financial data. · Results of Operations. This section provides our analysis of the significant line items on our consolidated statements of operations. · Going Concern Uncertainty. This section provides a discussion of our uncertainty to continue as a going concern. · Critical Accounting Policies. This section discusses the accounting policies we consider important to our financial condition and results of operations and that require us to exercise subjective or complex judgments in their application. This section also includes a discussion about recent accounting pronouncements and the impact those pronouncements are expected to have on our financial condition and results of operations. · Liquidity and Capital Resources, Debt and Lease Obligations. This section provides an analysis of our liquidity and cash flows as well as a discussion of our outstanding debt and commitments as ofDecember 31, 2008 . Introduction
We were incorporated in the
Results of Operations
The Company has no revenue for the year ended
Our total expenses decreased by
Net loss for the year ended
11 Going Concern Uncertainty
Based on our financial history since inception, our auditor has expressed
substantial doubt as to our ability to continue as a going concern. As reflected
in the accompanying financial statements, as of
Critical Accounting Policies and Estimates
The Company's financial statements have been prepared in accordance with
accounting principles generally accepted in
Liquidity and Capital Resources, Debt and Lease Obligations
Cash flows generated from operating activities were not enough to support all
working capital requirements for the years ended
We used (
Cash flows provided from investing activities were (
Cash flows from financing activities were
Off-Balance Sheet Arrangements
None.
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