U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
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Mark One
[ X] ANNUAL REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2013
[ ] TRANSITION REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to _______
Commission File No. 333-172850
Unique Underwriters, Inc.
(Exact name of registrant as specified in its charter)
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Texas
(State or Other Jurisdiction of Incorporation
or Organization)
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6361
(Primary Standard Industrial Classification
Number)
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27-0631947
(IRS
Employer
Identification Number)
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13601 Preston Road,
Suite 317 East Tower,
Dallas Texas 75240
(817) 281-3200
(Address and telephone
number of principal executive offices)
Securities Registered Under Section 12(b) of the Exchange Act:
None
Securities Registered Under Section 12(g) of
the Exchange Act:
Common Stock, $0.001 par value
(Title of class)
Indicate by check mark if the registrant is
a well-known seasoned issuer as defined by Rule 405 of the Securities Act Yes [ ] No [X].
Indicate by check mark if the registrant is
not required to file reports pursuant to Rule 13 or Section 15(d) of the Act
Yes [ ] No
[X].
Indicate by checkmark whether the issuer:
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted
and posted 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 and post such files). Yes [X ] No [ ]
Indicate by check mark if disclosure of delinquent
filers in response to Item 405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and will not be contained,
to the best knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K/A
or any amendment to this Form 10-K/A. [X]
Indicate by check mark whether the registrant
is a large accelerated filed, an accelerated filer, a non-accelerated filer, or a smaller reporting company.
Large accelerated filer [ ] Accelerated
filer [ ] Non-accelerated filer [ ] Smaller reporting company [X]
Indicate by checkmark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [ X ]
State the aggregate market value of the voting
and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or
the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed
fiscal quarter: $1,569,091.80. For purposes of this computation, all directors and executive officers of the registrant are considered
to be affiliates of the registrant).
Indicate the number of shares outstanding
of each of the issuer’s classes of common stock, as of the most practicable date:
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Class
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Outstanding as of June 30, 2013
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Common Stock: $0.001 par value
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77,460,612
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DOCUMENTS INCORPORATED BY REFERENCE
None
TABLE OF CONTENTS
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PART 1
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Item 1
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Description of Business
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Item 1A
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Risk Factors
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Item 1B
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Unresolved Staff Comments
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Item 2
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Properties
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Item 3
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Legal Proceedings
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Part II
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Item 4
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Market for Registrant’s Common Equity , Related Stockholder Matters and Issuer Purchases of Equity Securities
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Item 5
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Selected Financial Data
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Item 6
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Item 7
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Quantitative and Qualitative Disclosure of Market Risk
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Item 8
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Financial Statements and Supplementary Data
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Item 9
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Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
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Item 9A
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Controls and Procedures
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Item 9B
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Other Information
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PART III
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Item 10.
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Directors, Executive Officers and Corporate Governance
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Item 11
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Executive Compensation
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Item 12
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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Item 13
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Certain Relationships and Related Transactions, and Director Independence
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PART IV
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Item 14
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Principal Accountant Fees and Services
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Part 15
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Exhibits, Financial Statements and Schedules
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Cautionary Statement Regarding Forward-Looking
Statements
This annual report contains forward-looking
statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events
or our future financial performance. Some discussions in this report may contain forward-looking statements that involve risk and
uncertainty.
A number of important factors could cause our
actual results to differ materially from those expressed in any forward-looking statements made in this report. 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.
In some cases, you can also identify forward-looking
statements by terminology such as “may”, “will”, “should”, “plans”, “predicts”,
“potential” or “continue” or the negative of these terms or other comparable terminology. These statements
are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's
actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity,
performance or achievements expressed or implied by these forward-looking statements.
Although we believe that the expectations reflected
in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity or achievements. Except
as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking
statements to conform these statements to actual results.
The cautions outlined made in this statement
and elsewhere in this document should not be construed as complete or exhaustive. In many cases, we cannot predict factors
which could cause results to differ materially from those indicated by the forward-looking statements. Additionally, many
items or factors that could cause actual results to differ materially from forward-looking statements are beyond our ability to
control. The Company will not undertake an obligation to further update or change any forward-looking statement, whether
as a result of new information, future developments, or otherwise.
Our financial statements are stated in United
States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. References to
common shares refer to common shares in our capital stock.
In this reports, “Unique Underwriters”,
“the Company,” “we,” “us,” and “our,” refer to Unique Underwriters, Inc., unless
the context otherwise requires. Unless otherwise indicated, the term “fiscal year” refers to our fiscal year ending
June 30, 2013. Unless otherwise indicated, the term “common stock” refers to shares of the Company’s common stock,
par value $0.001 per share.
PART I
Item 1. Business.
Overview
Unique Underwriters, Inc. (the
“Company”) is a national, independent, mortgage protection insurance sales and marketing company located in the Dallas,
Texas area. The Company was incorporated in the State of Texas on July 28, 2009.
Unique Underwriters, Inc. offers the
following forms of insurance sales:
Mortgage life insurance is a form of
life insurance that will cover the cost of the mortgage in the event of policy holder’s death, so that his/her family doesn’t
have to worry about paying it off without the aid of primary income. Life insurance can be used for a variety of purposes, such
as: providing for your spouse and children, paying off a mortgage and other debts, transferring wealth or business interests, accumulating
cash on a tax advantaged basis, achieving estate tax liquidity, saving money for college expenses or retirement or other life events.
Disability Insurance pays the insured a monthly benefit if he/she becomes disabled, as a result of an accident or disease, and
cannot perform the duties of their own job.
Funeral expense insurance is an insurance
policy used to pay for funeral services and a burial when the named insured dies. Such a policy helps ease the financial burden
placed on a family when a loved one dies. It is no different than a traditional life insurance policy with a small monetary value.
Funeral expense insurance allows the named insured to feel safe knowing that funeral-related expenses are covered regardless of
the status of their estate at the time of death.
The Company provides sales and marketing
assistance for its agents by utilizing direct-mail lead programs, insurance sales training and agency-building opportunities. The
Company rents quality leads to its agents that allow the agent to generate sales of mortgage protection insurance policies, final
expense insurance policies, annuities and life insurance policies. UUI generates revenue from three sources: (1) commissions from
insurance carriers as a result of policies sold by our network of independent agents; (2) renting leads to our network of independent
agents; (3) and the sales of annual membership packages to our agents that provide various levels of access to leads, training,
personalized website, mentoring, customer support, company events and conventions.
We will require additional funding
in order to pursue our business objectives and there is no guarantee that we will be successful in this regard.
There have been no material reclassifications,
mergers, consolidations or purchases or sales of any significant amount of assets not in the ordinary course of business since
the date of incorporation. The Company has never been party to any bankruptcy, receivership or similar proceeding, nor has it undergone
any material reclassification, merger, consolidation, purchase or sale of a significant amount of assets not in the ordinary course
of business.
Plan of Operation
About Our Company
The Company has suffered recurring
losses from operations since inception and has a negative working capital. Investors should be aware that our independent auditors
have issued an audit opinion which includes a statement expressing substantial doubt as to our ability to continue as a going concern.
However, although still negative, the numbers contained herein continue to show greater increases toward overall profitability
and management is confident that the next quarter ending September 30, 2013 should indicate that the Company has finally achieved
a small level of profitability in its operations. In fact, since net loss for the nine months ended 3/31/2013 was (55,694) and
net loss for the year ended 6/30/2013 was (48,715), the last quarter ended 6/30/2013 had a small profit of $6,979.
The Company’s plans with regard
to alleviating its working deficiency encompass the following actions: 1) obtain funding from new investors, 2) obtain funding
from new equity or debt financing, and 3) implement a plan to generate sales and increase production. We have no plans to combine
with another business, and we are not aware of any events or circumstances that might cause these plans to change. Furthermore,
our working capital requirements are expected to increase in line with the growth of our business and we anticipate additional
increases in operating expenses and capital expenditures relating to: (i) mailing expenses; (ii) advertisement expenses; and (iii)
marketing expenses. Additional issuances of equity or debt securities could potentially 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. We anticipate that our operational, and general and administrative expenses for
the next 12 months will total approximately $1,500,000. We also do not expect any significant additions to the number of employees,
unless financing is raised. The Company’s continued existence is dependent upon its ability to resolve its liquidity problems
and increase profitability in its current business operations. However, the outcome of management’s plans cannot be ascertained
with any degree of certainty. The accompanying financial statements do not include any adjustments that might result from the outcome
of these risks and uncertainties.
The Company has filed a prospectus
that relates to the offering by the Company of a total of 77,460,612 shares of our common stock on a "self-underwritten"
basis at a fixed price of $0.15 per share. As of January 23, 2013, we became a public company and as a result of our listing on
the OTCBB are responsible for filing various forms with the United States Securities and Exchange Commission (the “SEC”)
such as this Form 10K and Form 10Qs. Investors and shareholders may read and copy any material filed by us with the SEC at the
SEC’s Public Reference Room at 100 F Street N.W., Washington, DC, 20549. The shareholders may obtain information on the operations
of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy
and information statements, and other information which we have filed electronically with the SEC by assessing the website using
the following address: http://www.sec.gov.
Item 1A Risk Factors
We are a smaller reporting company as defined by Rule 12b-2
of the Exchange Act and are not required to provide the information under this item.
Item 1B. Unresolved Staff Comments
None
Item 2 Properties
Our administrative offices are located
at 13601 Preston Road, Suite 317 East Tower, Dallas Texas 75240. We plan to use these offices until we require larger space.
Item 3. Legal Proceedings
On April 2, 2013, the Company was served
with the Original Petition of Crimson Gray LLC, a vendor that had provided web site hosting services to the Company until the Company
discovered that Crimson Gray LLC had, without the Company’s permission, set up a link on the Company’s web site designed
to divert the Company’s agents to a web site owned by Crimson Gray LLC for the purpose of selling products to the Company’s
customers. The actions of Crimson Gray LLC constituted breach of contract and fraud. Crimson Gray LLC is seeking payment for unpaid
fees in the total amount of $9,593.41. On April 22, 2013, the Company filed its answer by denying each and every allegation in
the Original Petition of Crimson Gray LLC and has filed a counterclaim against Crimson Gray LLC seeking damages for breach of contract
and fraud.
On May 9, 2013, the Company was served
with the Original Petition of Tonya Copeland, a former employee of the Company that had been terminated for cause. Tonya Copeland
is seeking payment for severance pay and other damages in the total amount of $10,425.27. The Company has filed its answer by denying
and each and every allegation in the Original Petition of Tonya Copeland.
As of the date of this report, the
Company is not aware of any other legal proceedings filed by any governmental authority or any other party involving our Company.
PART II
Item 4. Market for Registrant’s Common Equity, Related
Stockholder Matters and Issuer Purchases of Equity Securities
Market for Common Equity
As the Company is a “smaller
reporting company,” it is not required to provide the performance graph required in paragraph (e) of Item 201.
Market Information
As of June 30, 2013, our common stock
is posted for trading on the OTCBB and has the trading symbol “UUWR”. Our shareholders' list of our common shares showed
133 registered shareholders holding 77,460,612 shares; there are no shares held by broker-dealers.
The OTCBB is a regulated quotation
service that displays real-time quotes, last sale prices and volume information in over-the-counter (OTC) securities. The OTCBB
is not an issuer listing service, market or exchange. Although the OTCBB does not have any listing requirements, as such, to be
eligible for quotation on the OTCBB, issuers must remain current in their filings with the SEC or applicable regulatory authority.
Market makers are not permitted to begin quotation of a security whose issuer does not meet this filing requirement. Securities
already quoted on the OTCBB that become delinquent in their required filings will be removed following a 30 or 60 day grace period
if they do not make their required filing during that time.
Holders
As of June 30, 2013, 77,460,612 shares
of common stock were issued and outstanding. There are 133 shareholders of our common stock and each shareholder of our common
stock is entitled to one vote for each share on all matters submitted to a stockholder vote. Holders of common stock do not have
cumulative voting rights. Therefore, holders of a majority of the shares of common stock voting for the election of directors can
elect all of the directors. Holders of our common stock representing a majority of the voting power of our capital stock issued
and outstanding and entitled to vote, represented in person or by proxy, are necessary to constitute a quorum at any meeting of
our stockholders. A vote by the holders of a majority of our outstanding shares is required to effectuate certain fundamental corporate
changes such as liquidation, merger or an amendment to our Articles of Incorporation. Although there are no provisions in our charter
or by-laws that may delay, defer or prevent a change in control, we are authorized, without shareholder approval, to issue shares
of preferred stock that may contain rights or restrictions that could have this effect. Holders of common stock are entitled to
share in all dividends that the board of directors, in its discretion, declares from legally available funds. In the event of liquidation,
dissolution or winding up, each outstanding share entitles its holder to participate pro rata in all assets that remain after payment
of liabilities and after providing for each class of stock, if any, having preference over the common stock. Holders of our common
stock have no pre-emptive rights, no conversion rights and there are no redemption provisions applicable to our common stock.
Dividends
We have never declared or paid any
cash dividends on our common stock. For the foreseeable future, we intend to retain any earnings to finance the development and
expansion of our business, and we do not anticipate paying any cash dividends on common stock. Any future determination to pay
dividends will be at the discretion of the Board of Directors and will be dependent upon then existing conditions, including our
financial condition and results of operations, capital requirements, contractual restrictions, business prospects, and other factors
that the board of directors considers relevant.
Securities authorized for issuance under equity compensation
plans
We do not have any equity compensation
plans and accordingly we have no securities authorized for issuance hereunder.
Purchases of equity securities by the Issuer and affiliated purchasers
There were no shares of common stock
or other securities issued to the issuer or affiliated purchasers during the year ended June 30, 2013.
Penny Stock
Our common stock is considered to be
a “penny stock” under the rules of the Securities and Exchange Commission (the “SEC”) under the Securities
Exchange Act of 1934. The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny
stocks. Penny stocks are generally equity securities with a price of less than $5.00, other than securities registered on certain
national securities exchanges or quoted on the NASDAQ Stock Market System, provided that current price and volume information with
respect to transactions in such securities is provided by the exchange or quotation system. The penny stock rules require a broker-dealer,
prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the Commission, that:
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contains a description of the nature and level of risks in the market for penny stocks in both public offerings and secondary trading;
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contains a description of the broker’s or dealer’s duties to the customer and of the rights and remedies available to the customer with respect to a violation to such duties or other requirements of Securities’ laws; contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price;
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contains a toll-free telephone number for inquiries on disciplinary actions;
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defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and
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contains such other information and is in such form, including language, type, size and format, as the Commission shall require by rule or regulation.
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The broker-dealer also must provide,
prior to effecting any transaction in a penny stock, the customer with:
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bid and offer quotations for the penny stock;
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the compensation of the broker-dealer and its salesperson in the transaction;
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the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the marker for such stock; and
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monthly account statements showing the market value of each penny stock held in the customer’s account.
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In addition, the penny stock rules
that require that prior to a transaction in a penny stock not otherwise exempt from those rules; the broker-dealer must make a
special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s
written acknowledgement of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks,
and a signed and dated copy of a written suitably statement.
These disclosure requirements may have
the effect of reducing the trading activity in the secondary market for our stock.
Item 5. Selected Financial Data
As a smaller reporting company, we
are not required to provide the information required by this item.
Item 6. Management’s Discussion and Analysis of Financial
Condition and Results of Operations
The following discussion should
be read in conjunction with our financial statements and the notes thereto.
Forward-Looking Statements
As previously stated, this annual
report contains forward-looking statements relating to us that are based on the beliefs of our management as well as assumptions
made by, and information currently available to, our management. When used in this Report, the words “anticipate”,
“believe”, “estimate”, “expect”, “intend”, “plan” and similar expressions,
as they relate to us or our management, are intended to identify forward-looking statements. These statements reflect management’s
current view of us concerning future events and are subject to certain risks, uncertainties and assumptions, including among many
others: our potential inability to raise additional capital, the possibility that third parties hold proprietary rights that preclude
us from marketing our products, the emergence of additional competing technologies, changes in domestic and foreign laws, regulations
and taxes, changes in economic conditions, a general economic downturn, a downturn in the securities markets, Securities and Exchange
Commission regulations which affect trading in the securities of “penny stocks,” and other risks and uncertainties.
Should any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary
materially from those described in this Report as anticipated, estimated or expected.
Use of GAAP Financial Measures
We use GAAP financial measures in
the section of this annual report captioned “Management’s Discussion and Analysis of Financial Condition and Results
of Operations.” All of the GAAP financial measures used by us in this report relate to the inclusion of financial information.
Overview
This subsection of MD&A is an
overview of the important factors that management focuses on in evaluating our businesses, financial condition and operating performance,
our overall business strategy and our earnings for the periods covered.
General
Unique Underwriters, Inc. is a national
Independent Marketing Organization that focuses exclusively on the sale of mortgage protection insurance policies, final expense
insurance policies and life insurance policies. The Company provides sales and marketing assistance for its agents by utilizing
direct-mail lead programs, insurance sales training and agency-building opportunities. The Company rents quality leads to its agents
that allow the agent to generate sales of mortgage protection insurance policies, final expense insurance policies and life insurance
policies. UUI generates revenue from three (3) sources: commissions from insurance carriers as a result of policies sold by our
network of independent agents, renting leads to our network of independent agents, and the sales of annual membership packages
to our agents that provide various levels of access to leads, training, personalized website, mentoring, customer support, company
events and conventions.
Management has continued its policy
of reduction of expenses to insure the continued viability of the Company. Although future cash flow is always difficult to predict,
by eliminating expenses and increasing our marketing, lead generation and production efforts, management continues to believe that
net profits should improve due to the following factors:
(1) Advertising programs on Monster.com
and Craigslist.com and regular conference calls, which are designed to inform agents of (i) new direct mail areas of coverage,
(ii) where the leads were coming in from, and (iii) the benefits of our membership packages;
(2) Newly designed web site to
further aid our agents and streamline the order process for those individuals who submit inquiries through the site; and
3) Kramer Mailings (“Kramer”)
continues to show a very high rate of return on leads which equates to more leads coming in for our agents to pursue, which in
turn meant more lead revenue and ultimately more insurance policies being sold, which means even more revenue for the Company.
Results of Operations
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.
Revenues
We had revenue of $ 1,524,576
for the current fiscal year ended June 30, 2013, of which $811,136 was from commissions due to sales of insurance products, including
mortgage life insurance and funeral expense insurance, and $713,440 from the sales of leads during the current fiscal year ended
June 30, 2013.
Comparatively,
we had revenue of $ 2,492,664 for the fiscal year ended June 30, 2012, of which $1,741,975 was from commissions due to sales of
insurance products, including mortgage life insurance and funeral expense insurance, and $750,690 from the sales of leads during
the fiscal year ended June 30, 2012. The decrease by $968,088 or 39 %, during the current fiscal year ended June 30, 2013 was due
in large part to limited capital resources which caused the number of mailings to be decreased. Less mailings going out meant fewer
leads coming in which in turn resulted in less income from the sale of leads and less production from the sale of insurance policies.
Cost of Sales
The cost of sales was $649,161, or
43 % of revenues for the current fiscal year ended June 30, 2013.
Cost of sales includes the costs
directly attributable to revenue recognition, such as marketing and leads generation costs, leads purchased costs, and payments
to agents, which was $151,864, $173,949, and $323,348 for the current fiscal year ended June 30, 2013.
Comparatively, the cost of sales
was $1,183,810, or 47% of revenues, for the year ended June 30, 2012, including Marketing/Leads Generation of $408,854, Leads Purchased
Cost of $ 188,623 and agent expenses of $586,333 for the year ended June 30, 2012.
We recognized cost of sales in the
same manner in conjunction with revenue recognition, when the costs were incurred. Contract labor expenses were not directly related
to the generation of sales; rather, these were involved in the selling, general and administrative expenses of the business.
Expenses
We had operating expenses
of $914,255 during the current fiscal year ended June 30, 2013, compared to operating expenses of $1,933,593 during the fiscal
year ended June 30, 2012. The decrease by $1,019,338 during the current fiscal year ended June 30, 2013 was due primarily to the
decrease in consulting fees, contract labor, payroll and related taxes, stock issued for services rendered and other general and
administrative expenses by $81,401, $113,553, $336,732, $345,000 and $138,715, respectively.
Expenses included in other administrative
expenses in the accompanying statement of operations are miscellaneous and sundry expenses pertaining to office expenses and office
supplies that are immaterial to be presented separately on the face of the statement of operations.
Liquidity and Capital Resources
Operating Activities
Net cash used in operating activities
was $50,682 during the current fiscal year ended June 30, 2013. Negative cash flow from operation during the current fiscal year
ended June 30, 2013 was due to the net loss of $48,715, the increase in accounts receivable by $1,780, the increase in rent deposit
by 4,578, plus the decrease in accounts payable in amount of $31,987, offset by the increase in accrued payroll taxes by $25,892.
Comparatively, net cash used in
operating activities was $264,113 during the years ended June 30, 2012. Negative cash flow from operation during the year ended
June 30, 2012 was due to the net loss of $624,724, plus the decrease in customer deposit by 27,497, offset by the increase in accounts
payable and accrued payroll taxes in amount of $26,408 and $16,700, respectively, and the non-cash expenses of $345,000 resulting
from the stock issuance of 2,300,000 shares as compensation.
Investing Activities
Net cash used in investing activities
was $3,371 for the fiscal year ended June 30, 2013, due primarily to the purchase of furniture. Comparatively, we had no cash flow
from investing activities during the fiscal year ended June 30, 2012.
Financing Activities
Net cash provided by financing
activities was $45,484 for the current fiscal year ended June 30, 2013 due to proceeds from related party loans. Comparatively,
net cash provided by financing activities was $242,000 due to the proceeds of $250,000 from unsecured loan payable, offset by stock
redemption in amount of $8,000 for the fiscal year ended June 30, 2012.
Critical Accounting Policies
Revenue Recognition
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The Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes
revenue when services are realized or realizable and earned less estimated future doubtful accounts. The Company considers revenue
realized or realizable and earned when all of the following criteria are met:
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(i)
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persuasive evidence of an arrangement exists,
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(ii)
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the services have been rendered and all required milestones achieved,
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(iii)
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the sales price is fixed or determinable, and
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(iv)
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collectability is reasonably assured.
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The approval from the Company’s
insurance carriers, which occurs upon receipt of our commission check and the policy, is reviewed online, and related completion
of services to the client is an event that triggers revenue recognition.
No revenue is recognized
prior to receipt of the commission check.
The lead sales revenue
is recognized when one of our agents submits an order to rent leads and simultaneously their credit card is processed and the leads
are distributed to them. The Company recognizes revenue when the agent submits an order to rent the leads for 30 days. After thirty
days the leads become available for rental to another agent. Leads may be rented multiple times at decreasing rates due to the
lead’s age and number of times it has been rented.
Membership revenue
recognition occurs when an agent registers for one of the Company’s websites online and submits their payment information;
the agent must give 30 days notice of request to cancel their membership. The Company recognizes revenue related to our various
membership plans as income on a straight-line basis over the length of membership period.
The customer deposit
is strictly related to Executive Membership Package. After submitting a $500 deposit, an Executive Member can request that the
Company directly mail letters to new home owners and/or senior citizens to generate new direct mail response leads. The Company
refunds these deposits back to Executive Members when they no longer request that the Company directly mail letters to new home
owners and/or senior citizens to generate new direct mail response leads. However, the Executive Members may also apply these deposits
towards the leads sale or membership fees in the future. After the Executive Member cancels their direct mail service, they have
the choice to use these deposits for additional leads, request that the deposits be applied towards membership, or ask for refunds.
If deposits are used for additional leads, revenue is recognized when services are realized or realizable and earned. If deposits
are used for membership fees, revenue is recognized over the length of membership period. For the current fiscal year ended June
30, 2013, the Company refunded $0 to Executive Members.
Cost of Sales
- The
Company’s policy is to recognize cost of sales in the same manner in conjunction with revenue recognition, when the costs
are incurred. Cost of sales includes the costs directly attributable to revenue recognition and include marketing and leads generation
costs, leads purchased costs and agent expenses. Selling, general and administrative expenses are charged to expense as incurred.
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. In connection with our business plan, management
anticipates additional increases in operating expenses and capital expenditures relating to: (i) mailing expenses; (ii) advertisement
expenses; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and potentially
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 debt securities could potentially 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 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 had cash of $10,586 on hand as
of June 30, 2013, and the accumulated deficit as of June 30, 2013 was $11,357,862. The Company’s current cash on hand is
not sufficient to meet our working capital requirements for the next twelve month period. Completion of our plan of operations
is subject to attaining adequate revenue. We cannot assure investors that adequate revenues will be generated. Even without adequate
revenues within the next twelve months, we still anticipate being able to continue with our present activities, but we may require
financing to achieve operation and growth goals and to meet our working capital requirements. If we are able to conduct an equity
offering, there will be dilution to the current stockholders of the Company and to the investors that acquire shares in the offering;
and if we are able to conduct a debt offering, we will likely be subject to various covenants on our business operations and may
be required to make payments during the term of the securities.
We anticipate that our operational,
and general and administrative expenses for the next 12 months will total approximately $1,500,000. We also do not expect any significant
additions to the number of employees, unless financing is raised. The foregoing represents our best estimate of our cash needs
based on current planning and business conditions. The exact allocation, purposes and timing of any monies raised in subsequent
private financings may vary significantly depending upon the exact amount of funds raised and our progress with the execution of
our business plan.
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 Company has suffered recurring
losses from operations since inception and has a negative working capital. These factors raise substantial doubt as to the ability
of the Company to continue as a going concern. However, although still negative, the numbers contained herein continue to show
greater increases toward overall profitability and management is confident that the next quarter ending September 30, 2013 should
indicate that the Company has finally achieved a small level of profitability in its operations. In fact, since net loss for the
nine months ended 3/31/2013 was (55,694) and net loss for the year ended 6/30/2013 was (48,715), the last quarter ended 6/30/2013
had a small profit of $6,979.
Management’s plans with regard
to these matters encompass the following actions: 1) obtain funding from new investors to alleviate the Company’s working
deficiency, and 2) implement a plan to generate sales. The Company’s continued existence is dependent upon its ability to
resolve it liquidity problems and increase profitability in its current business operations. However, the outcome of management’s
plans cannot be ascertained with any degree of certainty. The accompanying financial statements do not include any adjustments
that might result from the outcome of these risks and uncertainties.
Item 7. Quantitative and Qualitative Disclosures About Market
Risk
We are a smaller reporting company
as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.
Item 8. Financial Statements and Supplementary Data
Our financial statements are stated
in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.
The Report of Independent Registered
Public Accounting Firm issued by Bongiovanni & Associates, CPAs for the audited financial statements for current fiscal
year ended June 30, 2013 is included herein immediately preceding the audited financial statements.
Our audited financial statements
are included following the signature page to this Form 10K.
Item 9. Changes in and Disagreements With Accountants on Accounting
and Financial Disclosure
There have been no disagreements
related to accounting principles or practices, financial statement disclosure, internal controls or auditing scope or procedure.
Item 9A. Controls and Procedures
We maintain disclosure controls and
procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange
Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such
information is accumulated and communicated to our management to allow for timely decisions regarding required disclosure. In designing
and evaluating our disclosure controls and procedures, our management recognizes that any controls and procedures, no matter how
well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management
is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
Our management does not expect that
our disclosure controls or our internal controls over financial reporting will prevent all error and fraud. A control system, no
matter how well conceived and operated, can provide only reasonable, but not absolute, assurance that the objectives of a control
system are met. Further, any control system reflects limitations on resources and the benefits of a control system must be considered
relative to its costs. These limitations also include the realities that judgments in decision-making can be faulty and that breakdowns
can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons,
by collusion of two or more people or by management override of a control. A design of a control system is also based upon certain
assumptions about potential future conditions; over time, controls may become inadequate because of changes in conditions, or the
degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control
system, misstatements due to error or fraud may occur and may not be detected.
As of June 30, 2013, the year end
period covered by this report, under the supervision and with the participation of the Company’s principal executive officer
and principal financial officer, we carried out an evaluation of the effectiveness of the design and operation of our disclosure
controls and procedures. Based on the foregoing, we have concluded that our disclosure controls and procedures were effective as
of the end of the period covered by this annual report. There have been no changes in our internal controls over financial reporting
that occurred during the fiscal year ended June 30, 2013 that have materially or are reasonably likely to materially affect our
internal controls over financial reporting.
Management's Report on Internal Control over Financial Reporting
Our management is responsible for
establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under
the Exchange Act. Management has employed a framework consistent with Exchange Act Rule 13a-15(c), to evaluate internal control
over financial reporting described below. Internal control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation and fair presentation of financial statements for
external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations,
internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness
to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.
The Company’s principal executive
officer and principal financial officer, conducted an evaluation of the design and operation of our internal control over financial
reporting as of June 30, 2013. As a result of this assessment, we concluded that, as of June 30, 2013, our internal control over
financial reporting was effective in providing reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted accounting principles.
All internal control systems, no
matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only
reasonable assurance with respect to financial statement preparations and presentations. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
Changes in Internal Control Over Financial Reporting.
There were no changes in our internal
controls or in other factors that could significantly affect these controls subsequent to the evaluation date.
Item 9B. Other Information
No items required to be reported
on Form 8-K during the fourth quarter ended June 30, 2013 covered by this report were not previously reported on Form 8-K.
PART III
Item 10. Directors, Executive Officers and Corporate Governance
The following individuals serve as
the directors and executive officers of our company as of the date of this annual report. All directors of our company hold office
until the next annual meeting of our shareholders or until their successors have been elected and qualified. The executive officers
of our company are appointed by our board of directors and hold office until their death, resignation or removal from office.
Name Age Title
Samuel Wolfe 31 Chief Executive Officer, President,
Director
Ralph Simpson 50 Chief
Financial Officer, Chairman, Director
Rudolph J. Renda 60 Director
None of our directors or officers
is a director in any other U.S. reporting companies. We are not aware of any proceedings to which any of our officers or directors,
or any associate of any such officer or director is a party adverse to us or has a material interest adverse to us.
Director and Executive Biographies
Samuel Wolfe, Co-founder,
Chief Executive Officer, President and Director.
Mr. Wolfe has served as Chief Executive
Officer, President, and Director since May of 2010 when he co-founded Unique Underwriters, Inc. Prior thereto, from 2003 to 2009,
Mr. Wolfe served as Chief Marketing Officer and eventually President for Equita Mortgage Group (EMG), a mortgage protection insurance
company. While employed at EMG, Mr. Wolfe was responsible for managing the Mortgage Protection insurance business, including providing
leads for agents nationwide specializing in the mortgage protection market, where he led the design and implementation of all sales
and marketing strategies. Since 2002, his primary focus has been the Mortgage Protection, Final Expense, Tax Shelter Annuities,
403b, and Annuity markets. Over the years, Mr. Wolfe aspired to create a more distinctive independent marketing organization that
brokered insurance and licensed leads to agents in a mentor-network environment. Using his experience and innovative designs for
networking organizations, Mr. Wolfe aligned his organizational and lead generation experience with Mr. Simpson’s experience
in the areas of recruiting, training and marketing in the insurance business.
Ralph Simpson, Co-founder,
Chief Operating Officer, Chairman, Director
Mr. Simpson has more than 20 years
in the real estate industry and over 10 years in the insurance industry. He serves as the co-founder, Chairman, Chief Operating
Officer and Director of UUI. Ralph purchased his first income producing property at the age of 18. After graduating college, Mr.
Simpson built and sold several businesses, and in 2001 after being recruited into the mortgage protection insurance market, Ralph
realized the need for standardized training for new agents and established an insurance pre-licensing training institute “Simpson
Sales Academy in Bedford Texas. Mr. Simpson was a licensed insurance agent for Conseco from 2001 to 2003, with National Agents
Alliance from 2003 – December of 2008, and Equita through April of 2010. In May of 2010, Mr. Simpson, in conjunction with
Sam Wolfe, co-founded Unique Underwriters, Inc. The Simpson Sales Academy continues to support pre-licensing training for insurance
agents, however, does not conflict with nor compete with Unique Underwriters, Inc. The Simpson Group was previously affiliated
with “National Agents Alliance” prior to the formation of Unique Underwriters Inc., however, is the company is now
used only for his personal real estate investments.
Rudolph J. Renda, Director
Mr. Renda is an independent board
member for Unique Underwriters, Inc. and serves on the Audit Committee, Compensation Committee, as well as the Nominating and Corporate
Governance Committee since November of 2011. Mr. Renda is the founder and CEO of Oscar Renda Contracting, listed as one of the
top 100 national utility water construction contractors engaged in the construction of environmental infrastructure, water and
wastewater treatment plants, cross-country pipelines, tunneling and river crossings. Renda is also fifty percent owner of Renda
Environmental, which engages in the recycling of bio-organics. Mr. Renda also owns a minority Interest in a medical research and
diagnostics firm, True- Bios LLC, and a minority interest in an advertising agency, The Integrated Advertising Agency. Prior to
the founding of Oscar Renda Construction, Mr. Renda was the majority owner of Landmark Banks Mid-cities, with three branches in
Euless Texas, Colleyville, Texas, and Fort Worth, Texas, which were sold to Southtrust Bank. After graduating from college in 1974
with a major in accounting, Mr. Renda became a staff auditor with PricewaterhouseCoopers for two years.
In light of the business and structure
of Unique Underwriters, it was important to choose directors with the particular experience, qualifications and skills in order
to serve as directors of the Company. The two persons affiliated with UUI who have the most experience in the insurance industry
are Samuel Wolfe and Ralph Simpson. In the case of Mr. Wolfe, he has previously co-founded a mortgage protection insurance company
and an independent marketing organization which focused on mortgage protection insurance. In the case of Mr. Simpson, he has worked
in the mortgage protection insurance industry since 2001 and previously founded his own insurance agency. In addition, both Mr.
Wolfe and Mr. Simpson have experience with developing, managing and supervising marketing, administrative and sales departments
for insurance marketing companies. The addition of Mr. Renda provides an unbiased, objective view to the Company’s business,
planning and governance. With over 35 years of successful business ownership, management and accounting experience, Mr. Renda is
well qualified to serve on the committees to which he has been appointed.
Involvement in Certain Legal Proceedings
During the past ten years, neither
Mr. Wolfe, Mr. Simpson, nor Mr. Renda has been the subject of the following events:
1. Any bankruptcy petition filed
by or against any business of which Mr. Wolfe, Mr. Simpson, or Mr. Renda was a general partner or executive officer either at the
time of the bankruptcy or within two years prior to that time.
2. Any conviction in a criminal proceeding
or being subject to a pending criminal proceeding.
3. An order, judgment, or decree,
not subsequently reversed, suspended or vacated, or any court of competent jurisdiction, permanently or temporarily enjoining,
barring, suspending or otherwise limiting Mr. Wolfe, Mr. Simpson, or Mr. Renda’s involvement in any type of business, securities
or banking activities.
4. Found by a court of competent
jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Future Trading Commission to have violated
a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.
Stockholder Communications with the
Board
We have not implemented a formal
policy or procedure by which our stockholders can communicate directly with our Board of Directors. Nevertheless, every effort
will be made to ensure that the views of stockholders are heard by the Board of Directors, and that appropriate responses are provided
to stockholders in a timely manner. During the upcoming year, our Board will continue to monitor whether it would be appropriate
to adopt such a process.
Board Committees
Our board of directors has established
an audit committee, a compensation committee and a corporate governance committee and staffed these three committees with the individuals
best suited to accomplish the duties and responsibilities associated with audit, compensation and governance within UUI. Those
individuals are Samuel Wolfe, Ralph Simpson and Rudolph Renda.
Audit Committee
Our audit committee oversees our
corporate accounting and financial reporting process and assists the board of directors in monitoring our financial systems and
our legal and regulatory compliance. Our audit committee is responsible for, among other things:
£
Appointing, compensating and overseeing the work of our independent auditors;
£
Approving engagements of the independent auditors to render any audit or permissible non-audit services;
£
Reviewing the qualifications and independence of the independent auditors;
£
Monitoring the rotation of partners of the independent auditors on our engagement team as required by law;
£
Reviewing
our financial statements and reviewing our critical accounting policies and estimates;
£
Reviewing the adequacy and effectiveness of our internal controls; and
£
Reviewing and discussing with management and the independent auditors the results of our annual audit, our quarterly financial
statements and our publicly filed reports.
Compensation Committee
.
Our compensation committee oversees
our corporate compensation policies, plans and programs. The compensation committee is responsible for, among other things:
£
Reviewing
and recommending policies, plans and programs relating to compensation and benefits of our directors, officers and employees;
£
Reviewing
and approving compensation and the corporate goals and objectives relevant to compensation of our Chief Executive Officer;
£
Evaluating the performance of our executive officers in light of established goals and objectives ; and
£
Administering
our equity compensation plans for our employees and directors.
Nominating and Corporate Governance Committee
.
Our nominating and corporate governance
committee oversees and assists our board of directors in reviewing and recommending corporate governance policies and nominees
for election to our board of directors. The nominating and corporate governance committee is responsible for, among other things:
£
Evaluating
and making recommendations regarding the organization and governance of the board of directors and its committees;
£
Assessing
the performance of members of the board of directors and making recommendations regarding committee and chair assignments;
£
Recommending
desired qualifications for board of directors membership and conducting searches for potential members of the board of directors;
and
£
Reviewing
and making recommendations with regard to our corporate governance guidelines.
Our board of directors may from
time to time establish other committees.
Item 11. Executive Compensation
General
The table below sets forth information
concerning compensation paid, earned or accrued by our chief executive officer and chief operating officer (“Named Executive
Officers”) from the years ended June 30, 2013 and 2012, respedtively.
|
SUMMARY COMPENSATION TABLE*
|
Name and principal
position
|
Year
|
Salary
($)
|
Bonus
($)
|
Stock Awards
($)
|
Option
Awards
($)
|
Non-Equity
Incentive Plan
Compensation
($)
|
Non-qualified
Deferred
Compensation
Earnings ($)
|
All Other
Compensation
($)
|
Total
($)
|
Samuel Wolfe, CEO/
President
|
2013
2012
|
130,000
130,000
|
0
0
|
0
0
|
0
0
|
0
0
|
0
0
|
4,487
120,795
(1)
|
134,487
250,795
|
Ralph Simpson,
COO/
Chairman
|
2013
2012
|
130,000
130,000
|
0
0
|
0
0
|
0
0
|
0
0
|
0
0
|
61,800
70,532
(2)
|
191,800
200,532
|
(1) The chief executive officer is
entitled to compensation in the amount of 5% of total annual revenue received by the Company. (2) Compensation for corporate housing
for respective officer. This corporate housing payment was as a one-time benefit.
Employment/Consultant Agreements
We currently do not have either an
employment or consultant agreement with our chief operation officer, Ralph Simpson.
We currently do have a consultant
agreement with our chief executive officer, Samuel Wolfe. The Company contracted with S. Wolfe & Associates, Inc. (the “
Consulting
Firm
”), a consulting firm that employs Mr. Wolfe and Mr. Wolfe accepted a consulting position with Company, for a period
commencing on March 5, 2013 and continuing until terminated as provided therein. The material terms of Mr. Wolfe’s consultant
agreement are as follows:
|
1.
|
annual compensation of $130,000.00, payable to the Consulting Firm on a weekly basis;
|
|
|
|
|
2.
|
an amount equal to 5% of Total Monthly Revenue received by the Company, determined on a cash basis during each calendar month within the Company’s fiscal year, provided and on the condition that this Agreement is not terminated by the Company pursuant to Article IV thereof. “
Total Monthly Revenue
” shall be defined therein as the total revenue received by the Company during each calendar month within the Company’s fiscal year from all sources, including but not limited to, insurance commissions, leads and sales of membership packages. All payments due under this Section shall be paid within seven calendar (7) days after determination of the Total Monthly Revenue by the Company;
|
|
|
|
|
3.
|
The Consultant Agreement shall immediately terminate upon the occurrence of any one of the following events:
|
a. Mr. Wolfe’s
death;
b. Mr. Wolfe’s
permanent disability as determined by the Company;
c. Mr. Wolfe is convicted by a court
of competent jurisdiction of fraud, misappropriation, embezzlement, dishonesty, or other similar act; or
d. if Mr. Wolfe
should voluntarily terminate his consulting position with the Company.
Equity Awards
The shares awarded to Messrs. Wolfe
and Simpson are fully vested. The fair value of the shares awarded was based on their service of forming the Company. These shares
were issued later because there were not an adequate number of authorized shares in the Company’s treasury at the foundation
of the company. No stock options or stock appreciation rights were outstanding with respect to any of our directors or executive
officers as of June 30, 2013.
Item 12. Security Ownership of Certain Beneficial
Owners and Management and Related Stockholder Matters
The following table lists, as of June 30, 2013,
the number of shares of our common stock that are beneficially owned by (i) each person or entity known to us to be the beneficial
owner of more than 5% of our common stock; (ii) each executive officer and director of our company; and (iii) all executive officers
and directors as a group. Information relating to beneficial ownership of Common Stock by our principal shareholders and management
is based upon information furnished by each person using “beneficial ownership” concepts under the rules of the Securities
and Exchange Commission. Under these rules, a person is deemed to be a beneficial owner of a security if that person has or shares
voting power, which includes the power to vote or direct the voting of the security, or investment power, which includes the power
to vote or direct the voting of the security. The person is also deemed to be a beneficial owner of any security of which that
person has a right to acquire beneficial ownership within 60 days. Under the Securities and Exchange Commission rules, more than
one person may be deemed to be a beneficial owner of the same securities, and a person may be deemed to be a beneficial owner of
securities as to which he or she may not have any pecuniary beneficial interest. Except as noted below, each person has sole voting
and investment power. The percentages below are calculated based on 77,460,612 shares of our common stock were issued and outstanding
as of the date of this 10-K.
Name of Beneficial Owner Number of Percent
of
Shares of Common Stock
Common Stock Beneficially Beneficially Owned
Owned
Samuel Wolfe 32,500,000 42.90 %
Ralph Simpson 32,500,000 42.90 %
Item 13. Certain Relationships and Related Transactions, and
Director Independence
Certain Relationships and Related Transactions
Educator Group Plans, Insurance Services Inc.
d/b/a Equita Mortgage Group and its affiliates, including Senior Advisor Services, are owned and operated by Richard Wolfe and
Robert Myer. Mr. Robert Wolfe is also the step-father of the co-founder of UUI, Samuel Wolfe. The Agency Agreement between Equita
and UUI contains the identical agreement terms and conditions as the agency agreements in place with other Equita agents. UUI does
not have or gain any competitive or monetary advantage as an agent for Equita.. The milestones for continuing the Agency Agreement
require that $3,000,000 in paid annual premium are maintained within any 12 month period which is the equivalent of $1.5 million
in annual revenue. Equita receives 10-15% of the any commissions paid to Unique Underwriters from the carriers. Richard Wolfe and
Educator Group Plans et al, have no personal or beneficial interests in UUI other than its participation in the Equita agency program.
Since Educator Group Plans is paid their override commission directly from the carriers the Company does not have any knowledge
of the aggregate amount of revenue that the Company has generated that was paid to Educator Group Plans.
Director Independence
Although we are not subject to listing
requirements of any national securities exchange or national securities association and, as a result, are not at this time required
to have our board comprised of a majority of “non-independent directors”, the Company has appointed Rudolph J. Renda,
as of November 2011, to serve as an independent director.
Item 14. Principal Accounting Fees and Services
The aggregate fees billed for the
most recently completed fiscal year ended June 30, 2013 for professional services rendered by the principal accountant for the
audit of our annual financial statements and review of the financial statements included in our quarterly reports on Form 10-Q
and services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for
these fiscal periods were as follows:
|
Year Ended
|
|
June 30 2013
|
June 30, 2012
|
Audit Fees
|
$20,000
|
$20,000
|
Audit Related Fees
|
$7,500
|
$7,500
|
Tax Fees
|
$0
|
$0
|
All Other Fees
|
$0
|
$0
|
Total
|
$27,500
|
$27,500
|
Audit Fees
: The aggregate fees billed
by the independent accountants for the last two fiscal years are for professional services for the audit of our annual financial
statements and the review of our Form 10-Q and other services that are normally provided by the accountants in connection with
statutory and regulatory filings or engagements.
Audit-Related Fees
: The aggregate fees
billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably
related to the performance of the audit or review for the audit or review of our annual financial statements and the review of
financial statements and are not reported under the previous item, Audit Fees.
Tax Fees
: During the last two fiscal
years any other fees charged by the principal accountants for tax services other than those disclosed above.
All Other Fees
: During the last two
fiscal years any other fees charged by the principal accountants other than those disclosed above.
Our board of directors has considered the nature
and amount of fees billed by our independent auditors and believes that the provision of services for activities unrelated to the
audit is compatible with maintaining our independent auditors’ independence.
PART IV
Item 15. Exhibits, Financial Statement Schedules
|
|
|
(a)
|
Financial Statements
|
|
(1)
|
Financial statements for our Company are presented after the signature of this document
|
(b)
|
Exhibits
|
|
|
Exhibit No.
|
Description
|
(3)
|
Articles of Incorporation and By-laws
|
3.1
|
Articles of Incorporation (1)
|
3.2
|
Bylaws (1)
|
|
|
(31)
|
Section 302 Certification
|
31.1 *
|
Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C.§ 1350, as adopted pursuant to § 302 of the Sarbanes-Oxley Act of 2002.
|
(32)
|
Section 906 Certification
|
32.1 *
|
Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
*
|
Filed herewith.
|
|
(1)
|
Previously filed with the Securities and Exchange Commission.
|
31. Certification of Chief Executive Officer and principal financial
officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002.
EXHIBIT 31
CERTIFICATION OF CHIEF EXECUTIVE
OFFICER PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Samuel Wolfe, certify that:
1. I
have reviewed this Annual Report on Form 10-K of Unique Underwriters, Inc., a Texas corporation (the "Registrant");
2. Based
on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
the period covered by this report;
3. Based
on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented
in this report;
4. I
am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act rules 13a–15(f) and 15d–15(f))
for the Registrant and have:
a) Designed such
disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;
b) Designed such
internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles;
c) Evaluated the
effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in
this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant’s
most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected,
or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and
5. I
have disclosed, based on my most recent evaluation of internal control over financial reporting, to the Registrant’s auditors
and the audit committee of the Registrant’s Board of Directors (or persons performing the equivalent functions):
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which
are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information;
and
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s
internal control over financial reporting.
Date: October 14, 2013
|
|
/s/SAMUEL WOLFE
|
|
Samuel Wolfe
President, Chief Executive Officer and principal financial officer)
|
|
32. Certification pursuant to Securities Exchange Act of 1934 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.
EXHIBIT 32
STATEMENT FURNISHED PURSUANT
TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
The undersigned
is the President, Chief Executive Officer and principal financial officer of Unique Underwriters, Inc. This Certification is made
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. This Certification accompanies the Annual Report on Form 10-K of Unique
Underwriters, Inc. for the fiscal year ended June 30, 2013.
The undersigned
certifies that such 10-K Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
1934 and that the information contained in such 10-K Report fairly presents, in all material respects, the financial condition
and results of operations of Unique Underwriters, Inc. as of June 30, 2013.
This Certification is executed as of October 14, 2013.
|
|
By:
|
/s/Samuel Wolfe
|
|
Samuel Wolfe
President, Chief Executive Officer and principal financial officer)
|
A signed
original of this written statement required by Section 906 has been provided to Unique Underwriters, Inc. and will be retained
by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
SIGNATURES
In accordance with the requirements of the
Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
Unique Underwriters, Inc.
|
Dated: October 14, 2013
|
By: /s/ Samuel Wolfe
|
|
Samuel Wolfe, President and Chief Executive Officer
|
--------
FINANCIAL STATEMENTS
UNIQUE UNDERWRITERS, INC.
June 30, 2013
--------
CONTENTS
REPORT OF INDEPENDENT REGISTERED ACCOUNTING FIRM……………………….26
BALANCE SHEETS………………………………………………………………………….
27
STATEMENTS OF OPERATIONS…………………………………………………………...28
STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)…………………………………29
STATEMENTS OF CASH FLOWS…………………………………………………………...30
NOTES TO THE AUDITED FINANCIAL STATEMENTS……………….…………………..31
Bongiovann
i
&
Associates,
CPA’s
|
FL Office
7951 SW 6th St., Suite. 216
Plantation, FL 33324
Tel: 954-424-2345
Fax: 954-424-2230
NC Office
19720 Jetton Road, 3rd Floor
Cornelius, NC 28031
Tel: 704-892-8733
Fax: 704-892-6487
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
To the Board of Directors
Unique Underwriters, Inc.
We have audited the accompanying balance sheets
of Unique Underwriters, Inc. (“the Company”) as of June 30, 2013 and 2012 and the related statements of operations,
changes in stockholders’ deficit, and cash flows for the years ended June 30, 2013 and 2012. These financial statements
are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with
the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits
included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control
over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements referred
to above present fairly, in all material respects, the financial position of Unique Underwriters, Inc. as of June 30, 2013 and
2012, and the results of its operations, changes in stockholders’ deficit and cash flows for the years ended June 30, 2013
and 2012 in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have
been prepared assuming the Company will continue as a going concern. The Company has suffered recurring losses, has negative working
capital, and has yet to generate an internal cash flow that raises substantial doubt about its ability to continue as a going concern.
Management’s plans in regard to these matters are described in Note 8. The financial statements do not include any adjustments
that might result from the outcome of this uncertainty
/s/ Bongiovanni & Associates, CPA’s
Bongiovanni & Associates, CPA’s
Cornelius, North Carolina
October 9, 2013
UNIQUE UNDERWRITERS, INC.
|
BALANCE SHEETS
|
AS OF JUNE 30, 2013 AND 2012
|
|
|
|
|
|
|
|
June 30, 2013
|
|
June 30, 2012
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
Cash
|
|
$
|
10,586
|
|
|
$
|
19,156
|
|
Rent deposit
|
|
|
4,578
|
|
|
|
—
|
|
Accounts receivable
|
|
|
1,780
|
|
|
|
—
|
|
TOTAL CURRENT ASSETS
|
|
|
16,944
|
|
|
|
19,156
|
|
|
|
|
|
|
|
|
|
|
Fixed assets, net
|
|
|
2,885
|
|
|
|
—
|
|
TOTAL ASSETS
|
|
$
|
19,829
|
|
|
$
|
19,156
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
32,008
|
|
|
$
|
63,995
|
|
Accrued payroll taxes
|
|
|
42,592
|
|
|
|
16,700
|
|
Customer deposit
|
|
|
1,500
|
|
|
|
1,500
|
|
Unsecured demand loan payable
|
|
|
250,000
|
|
|
|
250,000
|
|
Loans payable-related parties
|
|
|
45,484
|
|
|
|
—
|
|
TOTAL CURRENT LIABILITIES
|
|
|
371,584
|
|
|
|
332,195
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
Common stock ($0.001 par value, 1,000,000,000 shares authorized; 77,460,612 and 77,460,612 shares issued and outstanding at June 30, 2013 and 2012, respectively)
|
|
|
77,461
|
|
|
|
77,461
|
|
Class A preferred stock ($0.001 par value with 10:1 conversion and voting rights, 100,000,000 shares authorized; - and - shares issued and outstanding at June 30, 2013 and 2012, respectively)
|
|
|
—
|
|
|
|
—
|
|
Class B preferred stock ($0.001 par value with 1:1 conversion and voting rights, 50,000,000 shares authorized; - and - shares issued and outstanding at June 30, 2013 and 2012, respectively)
|
|
|
—
|
|
|
|
—
|
|
Additional paid in capital
|
|
|
10,928,611
|
|
|
|
10,918,611
|
|
Retained deficit
|
|
|
(11,357,826
|
)
|
|
|
(11,309,111
|
)
|
TOTAL STOCKHOLDERS' (DEFICIT)
|
|
|
(351,754
|
)
|
|
|
(313,040
|
)
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT)
|
|
$
|
19,829
|
|
|
$
|
19,156
|
|
The Report of Independent
Registered Public Accoutning Firm and accompanying notes are an integral part of these financial statement.
UNIQUE UNDERWRITERS, INC.
|
STATEMENTS OF OPERATIONS
|
FOR THE YEARS ENDED JUNE 30, 2013 AND 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended
|
|
|
June 30, 2013
|
|
June 30, 2012
|
REVENUES:
|
|
|
|
|
Insurance sales commissions
|
|
$
|
811,136
|
|
|
$
|
1,741,975
|
|
Lead sales commissions
|
|
|
713,440
|
|
|
|
750,690
|
|
Total commissions
|
|
|
1,524,576
|
|
|
|
2,492,664
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
(649,161
|
)
|
|
|
(1,183,810
|
)
|
Gross profit
|
|
|
931,854
|
|
|
|
1,308,854
|
|
|
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
Consulting fees
|
|
|
63,297
|
|
|
|
144,698
|
|
Contract labor
|
|
|
211,069
|
|
|
|
324,622
|
|
Payroll and related taxes
|
|
|
214,717
|
|
|
|
551,449
|
|
Computer/internet expenses
|
|
|
8,273
|
|
|
|
23,606
|
|
Credit card processing fee
|
|
|
17,987
|
|
|
|
18,114
|
|
Stock issued for services rendered
|
|
|
—
|
|
|
|
345,000
|
|
Professional fees
|
|
|
85,633
|
|
|
|
48,523
|
|
Insurance expenses
|
|
|
35,034
|
|
|
|
62,458
|
|
Rent
|
|
|
68,708
|
|
|
|
67,357
|
|
Depreciation
|
|
|
486
|
|
|
|
—
|
|
Other general and administrative expenses
|
|
|
209,052
|
|
|
|
347,767
|
|
Total expenses
|
|
|
914,225
|
|
|
|
1,933,593
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
$
|
(38,840
|
)
|
|
$
|
(624,739
|
)
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
125
|
|
|
|
15
|
|
Interest expense
|
|
|
(10,000
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes
|
|
|
(48,715
|
)
|
|
|
(624,724
|
)
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
|
|
$
|
(48,715
|
)
|
|
$
|
(624,724
|
)
|
|
|
|
|
|
|
|
|
|
Basic and fully diluted net (loss) per common share:
|
|
|
*
|
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
77,460,612
|
|
|
|
75,681,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*=less than $0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Report of Independent Registered Public Accoutning Firm and accompanying notes are an integral part of these financial statements.
|
STATEMENTS OF CASH FLOWS
|
FOR THE YEARS ENDED JUNE 30, 2013 AND 2012
|
|
|
|
|
|
|
|
For the year ended June 30,
|
|
|
2013
|
|
2012
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
Net (loss)
|
|
$
|
(48,715
|
)
|
|
$
|
(624,724
|
)
|
Adjustments to reconcile (net loss) to net cash
|
|
|
|
|
|
|
|
|
(used in) operations:
|
|
|
|
|
|
|
|
|
Stock issued for services rendered
|
|
|
—
|
|
|
|
345,000
|
|
Depreciation
|
|
|
486
|
|
|
|
—
|
|
Imputed interest
|
|
|
10,000
|
|
|
|
—
|
|
Increase (decrease) in operating assets and liabilities
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(1,780
|
)
|
|
|
—
|
|
Rent deposit
|
|
|
(4,578
|
)
|
|
|
—
|
|
Accounts payable
|
|
|
(31,987
|
)
|
|
|
26,408
|
|
Customer deposit
|
|
|
—
|
|
|
|
(27,497
|
)
|
Accrued payroll taxes
|
|
|
25,892
|
|
|
|
16,700
|
|
NET CASH (USED IN) OPERATING ACTIVITIES
|
|
|
(50,682
|
)
|
|
|
(264,113
|
)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Purchase of furniture
|
|
|
(3,371
|
)
|
|
|
—
|
|
NET CASH (USED IN) INVESTING ACTIVITIES
|
|
|
(3,371
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Loans from related parties
|
|
|
57,584
|
|
|
|
—
|
|
Repayment of loans from related parties
|
|
|
(12,100
|
)
|
|
|
|
|
Incurrence of unsecured demand loan payable
|
|
|
—
|
|
|
|
250,000
|
|
Stock redemption and cancellation
|
|
|
—
|
|
|
|
(8,001
|
)
|
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
|
|
45,484
|
|
|
|
242,000
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
(8,569
|
)
|
|
|
(22,113
|
)
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS,
|
|
|
|
|
|
|
|
|
BEGINNING OF THE YEAR
|
|
|
19,156
|
|
|
|
41,269
|
|
|
|
|
|
|
|
|
|
|
END OF THE YEAR
|
|
$
|
10,586
|
|
|
$
|
19,156
|
|
The Report of Independent
Registered Public Accoutning Firm and accompanying notes are an integral part of these financial statements.
UNIQUE UNDERWRITERS, INC.
|
STATEMENT OF STOCKHOLDERS' (DEFICIT)
|
FOR THE YEARS ENDED JUNE 30, 2013 AND 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
|
|
|
|
Common Stock
|
|
Paid-in
|
|
Retained
|
|
Stockholders'
|
|
|
Shares
|
|
Amount (Par value $0.001)
|
|
Capital
|
|
(Deficit)
|
|
(Deficit)
|
|
|
|
|
|
|
|
|
|
|
|
Balances, June 30, 2011
|
|
|
75,387,282
|
|
|
$
|
75,387
|
|
|
$
|
10,583,686
|
|
|
$
|
(10,684,387
|
)
|
|
$
|
(25,315
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock issued for services rendered
|
|
|
2,300,000
|
|
|
|
2,300
|
|
|
|
342,700
|
|
|
|
—
|
|
|
|
345,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock redemption and cancellations
|
|
|
(226,670
|
)
|
|
|
(227
|
)
|
|
|
(7,774
|
)
|
|
|
—
|
|
|
|
(8,001
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the year ended June 30, 2012
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(624,724
|
)
|
|
|
(624,724
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances, June 30, 2012
|
|
|
77,460,612
|
|
|
$
|
77,461
|
|
|
$
|
10,918,611
|
|
|
$
|
(11,309,111
|
)
|
|
$
|
(313,040
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Imputed interest
|
|
|
—
|
|
|
|
—
|
|
|
|
10,000
|
|
|
|
—
|
|
|
|
10,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the year ended June 30, 2013
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(48,715
|
)
|
|
|
(48,715
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances, June 30, 2013
|
|
|
77,460,612
|
|
|
$
|
77,461
|
|
|
$
|
10,928,611
|
|
|
$
|
(11,357,826
|
)
|
|
$
|
(351,754
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Report of Independent Registered Public Accoutning Firm and accompanying notes are an integral part of these financial statements.
|
Unique Underwriters, Inc.
Notes to audited financial statements
June 30, 2013
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Unique Underwriters, Inc. (the
“Company”) is a national, independent, mortgage protection insurance sales and marketing company located in the Dallas,
Texas area. The Company was incorporated in the State of Texas on July 28, 2009.
Unique Underwriters, Inc. offers the
following forms of insurance sales:
Mortgage life insurance is a form of
life insurance that will cover the cost of the mortgage in the event of policy holder’s death, so that his/her family doesn’t
have to worry about paying it off without the aid of primary income. Life insurance can be used for a variety of purposes, such
as: providing for your spouse and children, paying off a mortgage and other debts, transferring wealth or business interests, accumulating
cash on a tax advantaged basis, achieving estate tax liquidity, saving money for college expenses or retirement or other life events.
Disability Insurance pays the insured a monthly benefit if he/she becomes disabled, as a result of an accident or disease, and
cannot perform the duties of their own job.
Funeral expense insurance is an insurance
policy used to pay for funeral services and a burial when the named insured dies. Such a policy helps ease the financial burden
placed on a family when a loved one dies. It is no different than a traditional life insurance policy with a small monetary value.
Funeral expense insurance allows the named insured to feel safe knowing that funeral-related expenses are covered regardless of
the status of their estate at the time of death.
Annuities provide tax-deferred growth,
liquidity, and income options, plus a death benefit that may bypass the costs and delays of probate. An annuity could be right
if: a) prefer to delay taxes to a later date; b) are already contributing all you can to your IRA or qualified plan; c) are comfortable
that you won’t need extra money immediately; d) prefer a minimum guaranteed interest rate. The Company an array of products
that include fixed indexed annuities that are based on the performance of an Index, which provides you with all the upside potential
and none of the downside risk of the market.
Basis
of Presentation
The financial statements include
the accounts of Unique Underwriters, Inc. under the accrual basis of accounting.
Management’s Use of
Estimates
The preparation of financial statements
in conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The financial
statements above reflect all of the costs of doing business.
Reclassification
Certain amounts in the prior years'
consolidated financial statements have been reclassified to conform with the current year presentation.
Deferred Taxes
The Company accounts for income taxes
under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined
based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted
tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation
allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates
is recognized in the statements of operations in the period that includes the enactment date.
Cash and Cash Equivalents
- For purposes of the Statements of Cash Flows, the Company considers highly liquid investments with an original maturity of three
months or less to be cash equivalents.
Revenue Recognition
–
The Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes
revenue when services are realized or realizable and earned less estimated future doubtful accounts. The Company considers revenue
realized or realizable and earned when all of the following criteria are met:
|
(i)
|
persuasive evidence of an arrangement exists,
|
|
(ii)
|
the services have been rendered and all required milestones achieved,
|
|
(iii)
|
the sales price is fixed or determinable, and
|
|
(iv)
|
collectability is reasonably assured.
|
The approval from the Company’s
insurance carriers, which occurs upon receipt of our commission check and the policy, is reviewed online, and related completion
of services to the client is an event that triggers revenue recognition.
No revenue is recognized prior to receipt
of the commission check.
The lead sales revenue
is recognized when one of our agents submits an order to rent leads and simultaneously their credit card is processed and the leads
are distributed to them. The Company recognizes revenue when the agent submits an order to rent the leads for 30 days. After thirty
days the leads become available for rental to another agent. Leads may be rented multiple times at decreasing rates due to the
lead’s age and number of times it has been rented.
Membership revenue
recognition occurs when an agent registers for one of the Company’s websites online and submits their payment information;
the agent must give 30 days notice of request to cancel their membership. The Company recognizes revenue related to our various
membership plans as income on a straight-line basis over the length of membership period.
The customer deposit is strictly
related to Executive Membership Package. After submitting a $500 deposit, an Executive Member can request that the Company directly
mail letters to new home owners and/or senior citizens to generate new direct mail response leads. The Company refunds these deposits
back to Executive Members when they no longer request that the Company directly mail letters to new home owners and/or senior citizens
to generate new direct mail response leads. However, the Executive Members may also apply these deposits towards the leads sale
or membership fees in the future. After the Executive Member cancels their direct mail service, they have the choice to use these
deposits for additional leads, request that the deposits be applied towards membership, or ask for refunds. If deposits are used
for additional leads, revenue is recognized when services are realized or realizable and earned. If deposits are used for membership
fees, revenue is recognized over the length of membership period. For the year ended June 30, 2012, the Company refunded $9,845
to Executive Members. For the year ended June 30, 2013, the Company did not issue any refunds to Executive Members.
Cost of Sales
- The
Company’s policy is to recognize cost of sales in the same manner in conjunction with revenue recognition, when the costs
are incurred. Cost of sales includes the costs directly attributable to revenue recognition and include marketing and leads generation
costs, leads purchased costs and agent expenses. Selling, general and administrative expenses are charged to expense as incurred.
Comprehensive Income (Loss)
- The Company reports comprehensive income and its components following guidance set forth by section 220-10 of the FASB Accounting
Standards Codification which establishes standards for the reporting and display of comprehensive income and its components in
the financial statements. There were no items of comprehensive income (loss) applicable to the Company during the periods covered
in the financial statements.
Loss Per Share
-
Net
loss per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net loss per
share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.
Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially
outstanding shares of common stock during each period. There were no potentially dilutive shares outstanding as of June 30, 2013
and 2012.
Risk and Uncertainties
- The
Company is subject to risks common to companies in the service industry, including, but not limited to, litigation, development
of new technological innovations and dependence on key personnel.
Stock-Based Compensation
- The
Company accounts for stock-based compensation using the fair value method following the guidance set forth in section 718-10 of
the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity
to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value
of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide
service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized
for equity instruments for which employees do not render the requisite service.
Fair Value for Financial Assets
and Financial Liabilities-
The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures
about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph
820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for
measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures
about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph
820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value
into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for
identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined
by Paragraph 820-10-35-37 are described below:
Level 1
|
Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.
|
|
|
Level 2
|
Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.
|
|
|
Level 3
|
Pricing inputs that are generally observable inputs and not corroborated by market data.
|
The carrying amounts of the Company’s
financial assets and liabilities, such as cash, accounts receivable, rent deposit, accounts payable, customer deposits and notes
payable approximate their fair values because of the short maturity of these instruments.
The Company does not have any assets
or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair
value adjustments for assets and liabilities measured at fair value at June 30, 2013 and 2012 nor gains or losses are reported
in the statements of operations that are attributable to the change in unrealized gains or losses relating to those assets and
liabilities still held at the reporting date for the for the years ended June 30, 2013 and 2012.
Recent Accounting Pronouncements
The Company has reviewed all recently
issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may
be expected to cause a material impact on its consolidated financial condition or the consolidated results of its operations.
In May 2011, FASB issued Accounting
Standards Update No. 2011-04, “Fair Value Measurements (Topic 820): Amendments to Achieve Common Fair Value Measurement
and Disclosure Requirements in U.S. GAAP and IFRSs” (“ASU 2011-04”). ASU 2011-04 changes the
wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about
fair value measurements to ensure consistency between U.S. GAAP and IFRS. ASU 2011-04 also expands the disclosures for fair
value measurements that are estimated using significant unobservable (Level 3) inputs. This new guidance is to be applied
prospectively. The Company anticipates that the adoption of this standard will not materially expand its financial statement
note disclosures.
In June 2011, FASB issued ASU
No. 2011-05, “Comprehensive Income (ASC Topic 220): Presentation of Comprehensive Income” (“ASU 2011-05”),
which amends current comprehensive income guidance. This accounting update eliminates the option to present the components
of other comprehensive income as part of the statement of shareholders’ equity. Instead, the Company must report comprehensive
income in either a single continuous statement of comprehensive income which contains two sections, net income and other comprehensive
income, or in two separate but consecutive statements. ASU 2011-05 will be effective for public companies during the
interim and annual periods beginning after December 15, 2011, with early adoption permitted. The Company is reviewing
ASU 2011-05 to ascertain its impact on the Company’s financial position, results of operations or cash flows as it only requires
a change in the format of the current presentation.
In September 2011, the FASB issued
ASU 2011-08, “Testing Goodwill for Impairment”, which allows, but does not require, an entity when performing its annual
goodwill impairment test the option to first do an initial assessment of qualitative factors to determine whether it is more likely
than not that the fair value of a reporting unit is less than its carrying amount for purposes of determining whether it is even
necessary to perform the first step of the two-step goodwill impairment test. Accordingly, based on the option created in ASU 2011-08,
the calculation of a reporting unit’s fair value is not required unless, as a result of the qualitative assessment, it is
more likely than not that fair value of the reporting unit is less than its carrying amount. If it is less, the quantitative impairment
test is then required. ASU 2011-08 also provides for new qualitative indicators to replace those currently used. Prior to ASU 2011-08,
entities were required to test goodwill for impairment on at least an annual basis, by first comparing the fair value of a reporting
unit with its carrying amount. If the fair value of a reporting unit is less than its carrying amount, then the second step of
the test is performed to measure the amount of impairment loss, if any. ASU 2011-08 is effective for annual and interim goodwill
impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted. The Company
adopted ASU 2011-08 during the first quarter of fiscal 2013. The adoption of ASU 2011-08 did not impact the Company’s results
of operations or financial condition.
In December 2011, FASB issued Accounting
Standards Update 2011-11, “Balance Sheet - Disclosures about Offsetting Assets and Liabilities” to enhance disclosure
requirements relating to the offsetting of assets and liabilities on an entity's balance sheet. The update requires enhanced disclosures
regarding assets and liabilities that are presented net or gross in the statement of financial position when the right of offset
exists, or that are subject to an enforceable master netting arrangement. The new disclosure requirements relating to this update
are retrospective and effective for annual and interim periods beginning on or after January 1, 2013. The update only requires
additional disclosures, as such, the Company does not expect that the adoption of this standard will have a material impact on
its results of operations, cash flows or financial condition.
In July 2012, the FASB issued ASU No. 2012-02,
“Testing Indefinite-Lived Intangible Assets for Impairment”. The guidance allows companies to perform a “qualitative”
assessment to determine whether further impairment testing of indefinite-lived intangible assets is necessary, similar in approach
to the goodwill impairment test.
ASU 2012-02 allows companies the option
to first assess qualitatively whether it is more likely than not that an indefinite-lived intangible asset is impaired, before
determining whether it is necessary to perform the quantitative impairment test. An entity is not required to calculate the fair
value of an indefinite-lived intangible asset and perform the quantitative impairment test unless the entity determines that it
is more likely than not that the asset is impaired. Companies can choose to perform the qualitative assessment on none, some, or
all of its indefinite-lived intangible assets or choose to only perform the quantitative impairment test for any indefinite-lived
intangible in any period.
ASU 2012-02 is effective for annual
and interim impairment tests performed for fiscal years beginning after September 15, 2012, with early adoption permitted.
The Company is in the process of evaluating the guidance and the impact ASU 2012-02 will have on its consolidated financial statements.
In August 2012, the FASB issued ASU
2012-03, “Technical Amendments and Corrections to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting
Bulletin (SAB) No. 114. , Technical Amendments Pursuant to SEC Release No. 33-9250, and Corrections Related to FASB Accounting
Standards Update 2010-22 (SEC Update)” in Accounting Standards Update No. 2012-03. This update amends various SEC paragraphs
pursuant to the issuance of SAB No. 114. The adoption of ASU 2012-03 is not expected to have a material impact on our financial
position or results of operations.
In October 2012, the Financial Accounting
Standards Board (FASB) issued Accounting Standards Update (ASU) 2012-04, “Technical Corrections and Improvements” in
Accounting Standards Update No. 2012-04. The amendments in this update cover a wide range of Topics in the Accounting Standards
Codification.
These amendments include technical
corrections and improvements to the Accounting Standards Codification and conforming amendments related to fair value measurements.
The amendments in this update will be effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04
is not expected to have a material impact on our financial position or results of operations.
NOTE 2
INCOME
TAXES
At June 30, 2013, the Company
had federal and state net operating loss carry forwards of approximately $1,052,000 that expire in various years through the year
2033.
Due to operating losses, there
is no provision for current federal or state income taxes for the years ended June 30, 2013 and 2012.
Deferred income taxes reflect
the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes
and the amount used for federal and state income tax purposes.
The Company’s deferred tax
asset at June 30, 2013 consists of net operating loss carry forwards calculated using federal and state effective tax rates equating
to approximately $368,000 less a valuation allowance in the amount of approximately $368,000. Because of the Company’s lack
of earnings history, the deferred tax asset has been fully offset by a valuation allowance. The valuation allowance increased by
approximately $17,000 and $98,000 for the years ended June 30, 2013 and 2012, respectively.
The Company’s total deferred
tax asset as of June 30, 2013 and June 30, 2012 are as follows:
|
|
2013
|
|
2012
|
|
|
|
|
|
Total deferred tax asset
|
|
$
|
368,000
|
|
|
$
|
351,000
|
|
Valuation allowance
|
|
|
(368,000
|
)
|
|
|
(351,000
|
)
|
Net deferred tax asset
|
|
$
|
—
|
|
|
$
|
—
|
|
The reconciliation of income taxes computed at the
federal and state statutory income tax rate to total income taxes for the years ended June 30, 2013 and 2012 are as follows:
|
|
2013
|
|
2012
|
|
|
|
|
|
Income tax computed at the federal statutory rate
|
|
|
35%
|
|
|
|
35%
|
|
Valuation allowance
|
|
|
(35%)
|
|
|
|
(35%
|
)
|
Total deferred tax asset
|
|
|
0%
|
|
|
|
0%
|
|
NOTE 3
CAPITAL STOCK
The Company is currently authorized
to issue 1,000,000,000 common shares at $.001 par value per share.
The Company is currently authorized
to issue 100,000,000 Class A preferred shares at $.001 par value per share with 10:1 conversion and voting rights.
The Company is currently authorized
to issue 50,000,000 Class B preferred shares at $.001 par value per share with 1:1 conversion and voting rights.
No
stock has been issued for the year ended June 30
, 2013
.
NOTE 4
LEASE AND EMPLOYMENT COMMITMENTS
AND RELATED PARTY TRANSACTION
The Company assumed and renewed its
office lease with an unrelated party. The lease is for five years and expires on April 30, 2018. The monthly rent is as follows:
$3,875 per month
|
from May 1, 2013 to April 30, 2014
|
$4,014 per month
|
from May 1, 2014 to April 30, 2015
|
$4,152 per month
|
f
rom May 1, 2015 to April 30, 2016
|
$4,290 per month
|
from May 1, 2016 to April 30, 2017
|
$4,429 per month
|
from May 1, 2017 to April 30, 2018
|
The Company assumed and renewed a shopping
center lease from a party related through common ownership. The lease is for five years at $840 per month and expires on May 31,
2016.
Future minimum rental payments under
the leases for the next five years are as follows:
2014
|
56,580
|
2015
|
58,248
|
2016
|
59,904
|
2017
|
51,480
|
2018
|
53,148
|
|
$ 279,360
|
As of December 31, 2012, there were four (4)
full-time employees, including Samuel Wolfe, President and CEO. The remaining officers and staff of the Company at that time
were all full time consultants with Consulting Agreements. At the present time, Mr. Wolfe, Ralph Simpson, who is the Company’s
Chairman and COO, and all of its officers and directors are all full time consultants. Effective March 5, 2013, Mr. Wolfe
and Mr. Simpson signed new Consulting Agreements with the Company, wherein their Consulting Firms, R. Simpson & Associates,
Inc. and S. Wolfe & Associates, Inc., became full time consultants for the Company. In addition to retaining their current
positions in the Company, their Consulting Agreements each contain the following pertinent provisions:
1)
Compensation
.
As total compensation for Consultant’s services rendered hereunder, the Consulting Firm shall be entitled to receive from
Company the following:
|
a.
|
annual compensation of $130,000, payable to the Consulting Firm on a weekly basis; and
|
|
b.
|
an amount equal to 5% of Total Monthly Revenue received by the Company, determined on a cash basis during each calendar month within the Company’s fiscal year, provided and on the condition that this Agreement is not terminated by the Company pursuant to Article IV hereof. “
Total Monthly Revenue
” shall be defined herein the total revenue received by the Company during each calendar month within the Company’s fiscal year from all sources, including but not limited to, insurance commissions, leads and sales of membership packages. All payments due under this Section 3.1b shall be paid within seven calendar (7) days after determination of the Total Monthly Revenue by the Company; and
|
2)
Events Causing
Termination
. This Agreement shall immediately terminate, without liability to Company, upon the occurrence of any one of the
following events:
|
b.
|
Consultant’s permanent disability as determined by the Company;
|
|
|
|
|
c.
|
Consultant is convicted by a court of competent jurisdiction of fraud, misappropriation, embezzlement, dishonesty, or other similar act; or
|
|
|
|
|
d.
|
if the Consulting Firm should voluntarily terminate the Agreement.
|
NOTE
- 5 ACCOUNTS RECEIVABLE
Accounts receivable was comprised
of the following amounts as of June 30, 2013 and 2012:
|
|
2013
|
|
2012
|
|
|
|
|
|
Gross accounts receivable from customers
|
|
$
|
1,780
|
|
|
$
|
—
|
|
Allowance for doubtful customer accounts
|
|
|
—
|
|
|
|
—
|
|
Accounts receivable, net
|
|
$
|
1,780
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
There was no bad debt expense
recognized during the years ended June 30, 2013 and 2012, respectively.
NOTE
- 6 FIXED ASSETS
Fixed assets were comprised of
the following as of June 30, 2013 and 2012:
|
|
2013
|
|
2012
|
Cost:
|
|
|
|
|
Furniture
|
|
$
|
3,371
|
|
|
$
|
—
|
|
Total cost
|
|
|
3,371
|
|
|
|
—
|
|
Less: Accumulated depreciation
|
|
|
486
|
|
|
|
—
|
|
Property and equipment, net
|
|
$
|
2,885
|
|
|
$
|
—
|
|
NOTE 7
SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental disclosures of cash
flow information for
the years ended
June 30, 2013 and 2012 are summarized as follows:
Cash paid during the years ended
June 30, 2013 and 2012 for interest and income taxes:
|
|
2013
|
|
2012
|
Income Taxes
|
|
$
|
-0-
|
|
|
$
|
-0-
|
|
Interest
|
|
$
|
-0-
|
|
|
$
|
-0-
|
|
NOTE 8
GOING CONCERN AND UNCERTAINTY
The Company has suffered recurring
losses from operations since inception and has a negative working capital. In addition, the Company has yet to generate an internal
cash flow from its business operations. These factors raise substantial doubt as to the ability of the Company to continue as a
going concern.
Management’s plans with
regard to these matters encompass the following actions: 1) obtain funding from new investors to alleviate the Company’s
working deficiency, and 2) implement a plan to generate sales. The Company’s continued existence is dependent upon its ability
to resolve it liquidity problems and increase profitability in its current business operations. However, the outcome of management’s
plans cannot be ascertained with any degree of certainty. The accompanying financial statements do not include any adjustments
that might result from the outcome of these risks and uncertainties.
NOTE 9
UNSECURED DEMAND LOAN PAYABLE
As of June 30, 2013, the Company
had unsecured demand loan payable in amount of $250,000, which was borrowed from an unrelated party during the year ended June
30, 2012.There is no written agreement between the Company and the party. The loan is unsecured, interest free and repayable currently.
Interest of $10,000 was imputed at 4% annual interest rate.
NOTE 10
LOANS PAYABLE-RELATED PARTIES
The Company has various promissory
notes with some of the Company's directors and their spouses. The loans are unsecured, interest free and payable on demand.
The total amount outstanding of these loans is $45,484 as of June 30, 2013. The effects of imputed interest are immaterial to the
financial statements taken as a whole.
NOTE 11
SEGMENT REPORTING
The Company follows paragraph
280 of the FASB Accounting Standards Codification for disclosures about segment reporting. This Statement requires companies to
report information about operating segments in interim and annual financial statements. It also requires segment disclosures about
products and services, geographic areas, and major customers. The Company determined that it did not have any separately reportable
operating segments as of and for the years ended June 30, 2013 and 2012.
NOTE 12
SUBSEQUENT EVENTS
On August 28, 2013 Unique Underwriters,
Inc. (the “Company”) issued an 8% convertible note in the principal amount of $50,000 (the "Note") to an
Accredited Investor (the “Lender"). The Note was funded on or about September 3, 2013.
The Note bears interest at the
rate of 8% per annum. All interest and principal must be repaid on May 30, 2014. The Note is convertible any time during
the period beginning on the date which is one hundred eighty (180) days following the date of the Note into common stock of the
Company, at the Lender’s option, at a 58% discount to the average of the three lowest closing bid prices of the
common stock during the 10 Trading Day period prior to conversion as Trading Day is defined in the Note. In the event the
Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied
by 140% if prepaid 121 days following the Issue Date through 180 days following the Issue Date and (vi) 150% if prepaid 151 days
following the closing through 180 days following the Issue Date. After the expiration of 180 days following the date of the
Note, the Company has no right of prepayment.
The Lender has agreed to
restrict its ability to convert the Note and receive shares of common stock such that the number of shares of common stock held
by them in the aggregate and their affiliates after such conversion or exercise does not exceed 9.99% of the then issued and outstanding
shares of common stock. The total net proceeds the Company received was $47,500 less attorney’s fees of $2,500.
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