Tofla Megaline Inc.
Tofla Megaline Inc.
11/26/2024 | Press release | Distributed by Public on 11/26/2024 10:37
Quarterly Report for Quarter Ending October 31, 2024 (Form 10-Q)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 2024
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number 333-260430
TOFLA MEGALINE INC.
(Exact name of registrant as specified in its charter)
| Nevada | 37-1911358 | |||
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
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Blvd Porta Trento 122 CP, Blvd Porta Fontana. C.P. Leon, Guanajuato, Mexico, 37134 (Address of principal executive offices, including Zip Code) |
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+52-5541607366 (Registrant's telephone number, including area code) |
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| Securities registered under Section 12(b) of the Exchange Act: | ||||
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||
| N/a | N/a | N/a | ||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes[X] No [ ]
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes[X] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act (check one):
| Large accelerated Filer | [ ] | Accelerated Filer | [ ] |
| Non-accelerated Filer | [X] | Smaller reporting company | [X] |
| (Do not check if a smaller reporting company) | Emerging growth company | [X] |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. [ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No[X]
State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 5,352,035 common shares issued and outstanding as of November 25, 2024.
TOFLA MEGALINE INC.
TABLE OF CONTENTS
| Page | ||
| PART I | FINANCIAL INFORMATION: | |
| Item 1. | Condensed Financial Statements (Unaudited) | 4 |
| Condensed Balance Sheets as of October 31, 2024 (Unaudited) and July 31, 2024 | 5 | |
| Condensed Statements of Operations for the three months ended October 31, 2024 and 2023 (Unaudited) | 6 | |
| Condensed Statements Changes in Stockholders' Equity (Deficit) for the three October 31, 2024 and 2023 (Unaudited) | 7 | |
| Condensed Statements of Cash Flows for the three months ended October 31, 2024 and 2023 (Unaudited) | 8 | |
| Notes to the Condensed Financial Statements (Unaudited) | 9 | |
| Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations. | 15 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk. | 18 |
| Item 4. | Controls and Procedures. | 18 |
| PART II | OTHER INFORMATION: | |
| Item 1. | Legal Proceedings. | 18 |
| Item 1A | Risk Factors. | 18 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. | 18 |
| Item 3. | Defaults Upon Senior Securities. | 18 |
| Item 4. | Mine Safety Disclosures. | 18 |
| Item 5. | Other Information. | 19 |
| Item 6. | Exhibits. | 19 |
| Signatures | 20 |
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PART I - FINANCIAL INFORMATION
| Item 1. | Financial Statements. |
The accompanying interim financial statements of Tofla Megaline Inc. ("the Company", "we", "us" or "our"), have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted principles have been condensed or omitted pursuant to such rules and regulations.
The interim financial statements are condensed and should be read in conjunction with the Company's latest annual financial statements.
In the opinion of management, the financial statements contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented.
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TOFLA MEGALINE INC.
CONDENSED BALANCE SHEETS
|
October 31, 2024 (Unaudited) |
July 31, 2024 | |||
| ASSETS | ||||
| Current Assets | ||||
| Prepaid Expenses | $ | 14,300 | $ | 39,200 |
| Total Current Assets | 14,300 | 39,200 | ||
| Intangible Assets, Net | 80,586 | 62,411 | ||
| TOTAL ASSETS | $ | 94,886 | $ | 101,611 |
| LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) | ||||
| Liabilities | ||||
| Current Liabilities | ||||
| Accounts Payable | $ | - | $ | 300 |
| Related Party Loan | 142,892 | 124,701 | ||
| Total Current Liabilities | 142,892 | 125,001 | ||
| Total Liabilities | 142,892 | 125,001 | ||
| Stockholders' Equity (Deficit) | ||||
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Common Stock, $0.001par value, 75,000,000shares authorized, 5,352,035shares issued and outstanding as of October 31, 2024 and July 31, 2024 |
5,352 | 5,352 | ||
| Additional Paid-in Capital | 24,709 | 24,709 | ||
| Accumulated Deficit | (78,067) | (53,451) | ||
| Total Stockholders' Equity (Deficit) | (48,006) | (23,390) | ||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) | $ | 94,886 | $ | 101,611 |
The accompanying notes are an integral part of these condensed financial statements.
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TOFLA MEGALINE INC.
CONDENSED STATEMENT OF OPERATIONS
(Unaudited)
| Three months ended October 31, 2024 | Three months ended October 31, 2023 | |||
| Revenues | ||||
| Software Sales | $ | 23,000 | $ | - |
| Total Revenues | 23,000 | - | ||
| Operating Expenses | ||||
| Amortization Expense | 9,225 | 4,902 | ||
| General and Administrative Expenses | 33,591 | 7,888 | ||
| Server Rental | 4,800 | 4,800 | ||
| Total Operating Expenses | 47,616 | 17,590 | ||
| Net Income (Loss) from Operations | (24,616) | (17,590) | ||
| Provision for Income Taxes | - | - | ||
| Net Income (Loss) | $ | (24,616) | $ | (17,590) |
| Income (Loss) per Common Share - Basic & Diluted | $ | (0.00) | $ | (0.00) |
| Weighted Average Number of Common Shares Outstanding-Basic & Diluted | 5,352,035 | 5,352,035 | ||
The accompanying notes are an integral part of these condensed financial statements.
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TOFLA MEGALINE INC.
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
For the three months ended October 31, 2024 and 2023
(Unaudited)
| Common Stock | Additional Paid-in- | Accumulated | |||||||
| Shares | Amount | Capital | Deficit | Total | |||||
| Balance as of July 31, 2023 | 5,352,035 | $ | 5,352 | $ | 24,709 | $ | (28,911) | $ | 1,150 |
| Net income for the period | - | - | - | (17,590) | (17,590) | ||||
| Balance as of October 31, 2023 | 5,352,035 | $ | 5,352 | $ | 24,709 | $ | (46,501) | $ | (16,440) |
| Balance as of July 31, 2024 | 5,352,035 | $ | 5,352 | $ | 24,709 | $ | (53,451) | $ | (23,390) |
| Net loss for the period | - | - | - | (24,616) | (24,616) | ||||
| Balance as of October 31, 2024 | 5,352,035 | $ | 5,352 | $ | 24,709 | $ | (78,067) | $ | (48,006) |
The accompanying notes are an integral part of these condensed financial statements.
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TOFLA MEGALINE INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
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Three months ended October 31, 2024 |
Three months ended October 31, 2023 |
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| OPERATING ACTIVITIES | ||||
| Net Income (Loss) | $ | (24,616) | $ | (17,590) |
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Adjustments to reconcile Net Income to net cash provided by operations: |
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| Amortization | 9,225 | 4,902 | ||
| Changes in operating assets and liabilities: | ||||
| Prepaid Expenses | (2,500) | 4,800 | ||
| Accounts Payable | (300) | (6,000) | ||
| Cash Flows Provided by (Used in) Operating Activities | (18,191) | (13,888) | ||
| INVESTING ACTIVITIES | ||||
| Purchase of Intangible Assets | - | (20,000) | ||
| Cash Flows Used in Investing Activities | - | (20,000) | ||
| FINANCING ACTIVITIES | ||||
| Repayments on related party loan | (23,000) | (1,650) | ||
| Proceeds from related party loan | 41,191 | 13,528 | ||
| Cash Flows Provided by Financing Activities | 18,191 | 11,878 | ||
| Net cash increase (decrease) for period | - | (22,010) | ||
| Cash at beginning of period | - | 22,010 | ||
| Cash at end of period | $ | - | $ | - |
| SUPPLEMENTAL CASH FLOW INFORMATION | ||||
| Cash paid during the period for: | ||||
| Interest | $ | - | $ | - |
| Income taxes | $ | - | $ | - |
| Non-cash investing and financing activities: | ||||
| Intangible Assets Reclassified from Prepaid Expenses | $ | (27,400) | $ | - |
The accompanying notes are an integral part of these condensed financial statements.
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TOFLA MEGALINE INC.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
OCTOBER 31, 2024
(Unaudited)
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Tofla Megaline Inc. ("the Company" or "we") was incorporated under the laws of the State of Nevada, U.S. on August 31, 2018 (Inception). We are a development-stage company operating in the business of developing software for security systems.
NOTE 2 - GOING CONCERN
The unaudited condensed financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future.
The Company incurred net loss of $24,616 for the three months ended October 31, 2024.The Company has limited revenues and an accumulated deficit of $78,067as of October 31, 2024and further losses are anticipated in the development of its business. Accordingly, there is substantial doubt about the Company's ability to continue as a going concern.
The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management expects revenue growth to continue over the next twelve months. In the event that revenue is not available to cover all expenses, the Company intends to finance operating costs with loans from directors and/or private placement of common stock.
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The financial statements of the Company are presented in US dollars and the Company has adopted a July 31 fiscal year-end.
The accompanying unaudited condensed financial statements have been prepared in accordance with the rules and regulations (Regulation S-X) of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the three months ended October 31, 2024, are not necessarily indicative of the operating results that may be expected for the year ending July 31, 2025. These unaudited condensed financial statements should be read in conjunction with the July 31, 2024 audited financial statements and notes thereto.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
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Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.
Fair Value of Financial Instruments
ASC 820 "Fair Value Measurements and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
These tiers include:
Level 1: defined as observable inputs such as quoted prices in active markets;
Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
The carrying value of cash and the Company's loan from shareholder approximates fair value due to their short-term maturity.
The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.
Impairment of Long-Lived Assets
The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.
Property and Equipment
Property and equipment are stated at cost and depreciated on the straight-line method over the estimated life of the asset, which is three years.
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Intangible Asset
The Company accounts for its intangible assets in accordance with ASC Subtopic 350-40, Internal-Use Software-Computer Software Developed or Obtained for Internal Use, and ASC Subtopic 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Subtopic 350-40 requires assets to be recorded at the cost to develop the asset and requires an intangible asset to be amortized over its useful life and for the useful life to be evaluated every reporting period to determine whether events or circumstances warrant a revision to the remaining period of amortization. If the estimate of useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. Costs incurred to renew or extend the life of an intangible asset are expensed as incurred. The Company recognizes amortization in the month after the asset is placed in service.
In September 2021 the Company capitalized website development costs of $6,325 and during the three months ended October 31, 2024 the Company capitalized $27,400 for additional website development, for a total cost of $33,725. The website development costs are being amortized over a three-year life. As of October 31, 2024, the accumulated amortization for the website development costs was $7,848.
In June 2022 the Company also purchased video recording software at a cost of $10,000, which will be amortized over three years. As of October 31, 2024, the accumulated amortization related to the software was $7,917.
In November 2022 the Company purchased software for solutions for designing a perimeter security system at a cost of $15,500 which will be amortized over three years. As of October 31, 2024, the accumulated amortization related to the software was $9,903.
In January 2023 the Company purchased a global brandmauer for remote management via the internet at a cost of $7,000 which will be amortized over three years. As of October 31, 2024, the accumulated amortization for the software was $4,083.
In August 2023 the Company bought navigation and mapping software at a cost of $20,000 which will be amortized over three years. As of October 31, 2024, the accumulated amortization for the software was $8,333.
In June 2024 the Company bought the threat detection suite software at a cost of $20,000 which will be amortized over three years. As of October 31, 2024, the accumulated amortization for the software was $2,222.
In July 2024 the Company bought the route management software at a cost of $16,000which will be amortized over three years. As of October 31, 2024, the accumulated amortization for the software was $1,333.
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The Company had the following intangible assets as of October 31, 2024 and July 31, 2024:
| As of October 31, 2024 | As of July 31, 2024 | |||
| Website Development Costs | $ | 33,725 | $ | 6,325 |
| Video Recording Software | 10,000 | 10,000 | ||
| Software for Solutions for Designing a Perimeter Security System | 15,500 | 15,500 | ||
| Global Brandmauer for Remote Management via the Internet | 7,000 | 7,000 | ||
| Navigation and Mapping Software | 20,000 | 20,000 | ||
| Threat Detection Suite Software | 20,000 | 20,000 | ||
| Route Management Software | 16,000 | 16,000 | ||
| Accumulated Amortization | (41,639) | (32,414) | ||
| Intangible Assets, Net | $ | 80,586 | $ | 62,411 |
During the three months ended October 31, 2024 and 2023 the Company recorded amortization expense of $9,225 and $4,902, respectively.
The Company expects to recognize amortization expense of $28,558 for the remainder of the fiscal year ending July 31, 2025, amortization expense of $30,689 for the fiscal year ending July 31, 2026, amortization expense of $20,578 for the fiscal year ending July 31, 2027, and amortization expense of $761 for the fiscal year ending July 31, 2028.
Income Taxes
The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
Revenue Recognition
The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers". The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying the following steps:
Step 1: Identify the contract with the customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4. Allocate the transaction price.
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
The Company generates revenue through the sale of software and by providing consulting or technical support services. For the sale of software, revenue is recognized at the point in time when the ownership of software (as approved by the customer) is transferred per the terms of a contract. The Company shall not be liable for any failure to perform its obligations if such failure is due to circumstances beyond its reasonable control. Any liability of the Company shall be limited to the total of all amounts paid by the customer for services under the contract. For consulting or technical support services, revenue is recognized as the services are provided.
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The Company generally collects payment from customers prior to transferring ownership of software or at the end of any service period and may require deposits from customers at the time an order is placed. When deposits are collected prior to transferring ownership of software or before services are performed the Company recognizes deferred revenue until the transfer is made or services are provided. During the three months ended October 31, 2024 and 2023, the Company's revenue was $23,000and $0, respectively. As of October 31, 2024 and July 31, 2024 the Company had no deferred revenue or accounts receivable balances.
During the three months ended October 31, 2024 one customer made up 100% of our total revenues.
Basic Income (Loss) Per Share
The Company computes earnings (loss) per share in accordance with ASC 260-10-45 'Earnings per Share, which requires the presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings (loss) per share excludes all potential common shares if their effect is anti-dilutive. The Company has no potential dilutive instruments, and therefore, basic and diluted earnings (loss) per share are equal.
Recent Accounting Pronouncements
The Company has reviewed all the recent accounting pronouncements issued to date of the issuance of these financial statements, and does not believe any of these pronouncements will have a material impact on the Company's financial reporting.
NOTE 4 - COMMON STOCK
The Company has 75,000,000 common shares authorized with a par value of $0.001 per share.
During the three months ended October 31, 2024 and 2023 the Company issued no shares of common stock.
As of October 31, 2024 and July 31, 2024 the Company had 5,352,035shares issued and outstanding.
NOTE 5 - RELATED PARTY TRANSACTIONS
In support of the Company's efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders or directors. Amounts represent advances or amounts paid in satisfaction of liabilities.
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Effective August 31, 2018 the Company's Chief Executive Officer ("CEO"), Rodolfo Guerrero Angulo, formally agreed to advance funds to the Company to pay for professional fees and operating expenses under a $50,000 Loan Agreement. Effective April 20, 2022 the Company's CEO formally agreed to advance additional funds to the Company to pay for professional fees and operating expenses under a second $50,000 Loan Agreement. Effective June 12, 2024 the Company entered into an amended and restated loan agreement with its CEO that consolidated all earlier loans and increased the loan amount by an additional $50,000. The outstanding loan agreement is non-binding and discretionary, bears no interest, is unsecured, and has no fixed due date, therefore, any amounts outstanding under the agreement is considered due on demand. The Company's CEO was due $142,892 as of October 31, 2024 under the amended and restated loan agreement, where during the three months ended October 31, 2024 $41,191was advanced to the Company and the Company made repayments of $23,000.
NOTE 6 - COMMITMENTS AND CONTINGENCIES
Contractual Commitments
The Company has entered into no contractual commitments as of October 31, 2024.
Litigation
The Company was not subject to any legal proceedings during the period from August 31, 2018 (Inception) to October 31, 2024 and no legal proceedings are currently pending or threatened to the best of our knowledge.
NOTE 7 - SUBSEQUENT EVENTS
The Company has evaluated subsequent events from October 31, 2024 to the date the financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements.
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Item 2. |
Management's Discussion and Analysis of Financial Condition and Results of Operations. |
DESCRIPTION OF BUSINESS
In General
Tofla Megaline Inc. ("Tofla" or "we" or "the Company") was incorporated in the state of Nevada on August 31, 2018. As a development stage company specializing in software for robotic devices, we provide cutting-edge AI solutions that enhance security and efficiency. Our focus is on developing easy-to-use, high-quality, and cost-effective automation solutions for both standalone and integrated applications. Our key feature is developing software for security purposes. We offer a comprehensive suite of software products designed to improve the capabilities of robotic units in surveillance, patrol, and navigation. Our solutions include advanced algorithms for real-time threat detection, intelligent software for precise route planning and management, and predictive maintenance capabilities to minimize downtime and reduce costs. Beyond our software offerings, we also provide comprehensive consulting and technical support services.
Our solutions can be integrated with established control equipment and security systems, or used as independent versions. Our current projects involve software integration with security and video surveillance systems, along with the development of customizable solutions that support long-distance navigation, and task completion.
Our technology integrates a modular system of specialized devices for data collection, advanced AI for real-time threat analysis, and sophisticated software for seamless integration and control. The modular system offers flexibility and scalability, allowing for easy updates, troubleshooting, and customization to meet diverse security requirements. AI processes collected data in real-time, detecting potential threats and initiating appropriate responses. Our software coordinates the various components, ensuring smooth communication and operation between the modular devices, AI algorithms, and other system elements.
By harnessing the power of our modular system, AI capabilities, and innovative software, we are redefining the future of security technology and delivering unparalleled protection to our clients.
Principal Products and Services
Tofla's primary business includes developing AI-powered software for robotic security systems. We offer a range of software products designed to enhance the capabilities of these robotic units, including:
- Threat Detection Software: This software utilizes advanced algorithms to analyze video footage in real time, identifying potential security threats such as unauthorized access, suspicious activities, and other violations.
- Route Optimization Software: Designed to optimize patrol routes for robotic units, ensuring efficient coverage of designated areas and minimizing redundant movements.
- Predictive Maintenance Software: This software leverages AI to predict potential maintenance issues based on usage patterns and sensor data, allowing for proactive interventions and minimizing downtime.
- Integration Software: Our solutions can be seamlessly integrated with existing security systems and control equipment, providing a unified and comprehensive security solution.
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These software products collectively enable robotic security systems to perform their duties more effectively, efficiently, and proactively, enhancing overall security and reducing the burden on human personnel.
Our Company is at the forefront of robotic security software development, leveraging years of investment in AI, autonomy, and efficiency. We offer a comprehensive suite of solutions designed to enhance the capabilities of robotic units in surveillance, patrol, and threat detection. Our software is tailored to meet the specific needs of both individual users and businesses seeking to improve their security posture. We are committed to providing personalized support and ensuring the highest standards of performance and reliability.
Marketing Plans
To enhance our market presence and drive growth, we will implement a comprehensive marketing strategy encompassing digital marketing, partnerships, and customer relationship management. Our digital marketing efforts will focus on SEO, PPC advertising, and email marketing to increase online visibility and generate leads. To foster customer loyalty and provide exceptional service, we will implement a robust CRM system and prioritize customer satisfaction. By effectively executing these marketing strategies, we aim to position our Company as a leading player in the security software market and achieve our business goals.
Competition
The software development market is highly competitive, with a large number of companies operating in the space. Entry barriers are relatively low, leading to intense competition. To differentiate ourselves, we will focus on providing tailored solutions that address the specific needs of each client.
We do not maintain any insurance and do not intend to maintain insurance in the future. Because we do not have any insurance, if we are made a party of a products liability action, we may not have sufficient funds to defend the litigation. If that occurs, a judgment could be rendered against us that could cause us to cease operations.
Employees; Identification of Certain Significant Employees.
Rodolfo Guerrero Angulo acts as Chief Executive Officer, President, Treasurer and Secretary of Board of Directors. On August 30, 2024, Marquez Hernandez was appointed as independent director of the Company.
Offices
Our business office is located at Blvd Porta Trento 122 CP, Blvd Porta Fontana. C.P., Leon, Guanajuato, Mexico, 37134. This office space is provided by our President for the Company's needs at no cost. There is no formal rent agreement. Our telephone number is +525541607366.
Government Regulation
We will be required to comply with all regulations, rules, and directives of governmental authorities and agencies applicable to our business in any jurisdiction which we would conduct activities. We do not believe that regulation will have a material impact on the way we conduct our business.
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Results of Operations for the three months ended October 31, 2024 and 2023:
Revenue
During the three months ended October 31, 2024 and 2023 we generated $23,000 and $0 of revenue, respectively, due to the general growth of our business and increased marketing and sales efforts.
Operating expenses
Total operating expenses for the three months ended October 31, 2024 and 2023 were $47,616 and $17,590, respectively. The operating expenses for the three months ended October 31, 2024 and 2023 included Amortization Expense of $9,225 and $4,902; General and Administrative expenses of $33,591 and $7,888; and Server Rental of $4,800 and $4,800, respectively. The increase in general and administrative expense was due to professional fees for the OTCQB Application Fee with no similar cost incurred in the prior period and website maintenance expenses incurred in the current period with no similar cost incurred in the prior period.
Net Income (Loss)
Our net income (loss) for the three months ended October 31, 2024 and 2023 was $(24,616) and $(17,590), respectively, due to the reasons explained above.
Liquidity and Capital Resources and Cash Requirements
As of October 31, 2024, the Company had no cash ($0 as of July 31, 2024) and had a negative working capital of $128,592 as of October 31, 2024 (negative $85,801 as of July 31, 2024).
During the three months ended October 31, 2024 the Company used $18,191 of cash in its operating activities due to its net loss $24,616, decrease in Accounts Payable $300, and an increase in Prepaid Expense of $2,500, offset by Amortization expense of $9,225. During the three months ended October 31, 2023 the Company had $13,888 of cash provided by its operating activities due to its net loss $17,590, decrease in Accounts Payable $6,000 and a decrease in Prepaid Expenses of $4,800, offset by Amortization expense of $4,902.
During the three months ended October 31, 2024 and 2023, the Company used $0 and $20,000 of cash in investing activities, respectively.
During the three months ended October 31, 2024 the Company generated $18,191 of cash from financing activities due to proceeds from related party loans of $41,191, offset by repayments on related party loans of $23,000. During the three months ended October 31, 2023 the Company generated $11,878 of cash from financing activities, made up of $13,528 of proceeds from related party loans, offset by $1,650 in repayments to related parties.
OFF-BALANCE SHEET ARRANGEMENTS
We have no off-balance sheet arrangements including arrangements that would affect our liquidity, capital resources, market risk support and credit risk support, or other benefits.
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| Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Not Applicable.
| Item 4. | Controls and Procedures. |
Evaluation of Disclosure Controls and Procedures
We carried out an evaluation as of October 31, 2024, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, who are one and the same, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(f) and 15d-15(e)). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting during our most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
| Item 1. | Legal Proceedings. |
During the period ending October 31, 2024, there were no pending or threatened legal actions against us.
| Item 1A. | Risk Factors. |
As a smaller reporting company, we are not required to provide the information required by this Item.
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Not Applicable.
| Item 3. | Defaults Upon Senior Securities. |
Not Applicable.
| Item 4. | Mine Safety Disclosures. |
Not Applicable.
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| Item 5. | Other Information. |
There is no other information required to be disclosed under this item that has not previously been reported.
| Item 6. | Exhibits. |
| Exhibit No. | Description | |
| 31.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act of 1933 Rule 13a-14(a) or 15d-14(a). | |
| 32.1 | Certifications pursuant to Securities Exchange Act of 1933 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| TOFLA MEGALINE INC. | ||
| Date: November 26, 2024 | By: | /s/ Rodolfo Guerrero Angulo |
|
Rodolfo Guerrero Angulo Chief Executive Officer President, Treasurer and Secretary (Principal Executive, Financial and Accounting Officer) |
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