Filing identity and reporting period
Important source mismatch: The supplied filing is for Bear Lake Recreation, Inc., not Modular Medical, Inc. It reports the quarter and nine months ended March 31, 2014, not 2013 Q3. The summary below reflects the supplied filing only; verify the correct filing before relying on it.
Bear Lake describes itself as a development-stage company and checked the SEC shell-company box. It reported no operations as of the filing date.
Financial results and position
Amounts are U.S. dollars. The company reported no revenue in the current or comparable three- and nine-month periods. With no revenue, a gross margin is not meaningful.
| Metric | Three months ended Mar. 31, 2014 | Three months ended Mar. 31, 2013 | Nine months ended Mar. 31, 2014 | Nine months ended Mar. 31, 2013 |
|---|---|---|---|---|
| General and administrative expense | $2,150 | $2,050 | $9,030 | $8,870 |
| Related-party imputed interest expense | $3,052 | $2,506 | $8,839 | $7,222 |
| Net loss | $5,202 | $4,556 | $17,869 | $16,092 |
At March 31, 2014, total assets and cash were $0. Current liabilities were $126,760, comprising $100,072 payable to a related party and $26,688 accrued related-party interest. Stockholders’ deficit was $126,760. At June 30, 2013, liabilities were $108,891 and stockholders’ deficit was $108,891. The filing reports no cash from operating, investing, or financing activities for the nine months ended March 31, 2014; expenses were paid on the company’s behalf by a principal shareholder.
Changes, outlook, and risks
Year-over-year losses increased by $646 for the quarter and $1,777 for the nine-month period. General and administrative costs and imputed interest both rose. Related-party payables increased from $91,042 at June 30, 2013 to $100,072; accrued interest rose from $17,849 to $26,688.
Management’s plan was to consider industries, select a business plan, and seek to commence operations through funding or acquiring a going concern. The notes state an intent to seek a merger with a well-capitalized operating company, but no acquisition or venture had been identified. Management said it did not anticipate needing additional funds in the next 12 months because a principal shareholder had been paying operating costs; further funding needs were uncertain.
The company has no assets or established operations and accumulated losses since inception. Management disclosed substantial doubt about its ability to continue as a going concern. Related-party loans are unsecured, non-interest-bearing, and payable on demand, although the company imputes interest at 10% annually. The financial statements include no adjustments for the going-concern uncertainty. Forward-looking statements are subject to risks, including the ability to raise capital. Management reported effective disclosure controls; no material change in internal control, legal proceedings, or off-balance-sheet arrangements was reported.
Key facts for investors to verify
- Confirm the issuer and period: the supplied text identifies Bear Lake Recreation, Inc. and March 31, 2014, despite the request specifying Modular Medical, Inc. and 2013 Q3.
- Verify the company’s current status, business plan, and any subsequent merger, acquisition, or operating activity.
- Assess the company’s ability to meet its obligations with no cash or assets and $126,760 of liabilities, including related-party amounts payable on demand.
- Review the going-concern disclosure and the extent to which operations depend on continued shareholder support.