Company Quick10K Filing
Gala Pharmaceutical
Price0.00 EPS-0
Shares108 P/E-0
MCap0 P/FCF-0
Net Debt0 EBIT-3
TEV0 TEV/EBIT-0
TTM 2019-05-31, in MM, except price, ratios
10-Q 2019-05-31 Filed 2019-07-23
10-Q 2019-02-28 Filed 2019-04-30
10-K 2018-11-30 Filed 2019-04-15
10-Q 2018-08-31 Filed 2018-10-26
10-Q 2018-05-31 Filed 2018-08-01
10-Q 2018-02-28 Filed 2018-05-08
10-K 2017-11-30 Filed 2018-04-06
10-Q 2017-08-31 Filed 2017-10-19
10-Q 2017-05-31 Filed 2017-07-28
10-Q 2017-02-28 Filed 2017-04-18
10-K 2016-11-30 Filed 2017-03-09
10-Q 2016-08-31 Filed 2016-11-04
10-Q 2016-05-31 Filed 2016-07-15
10-Q 2016-02-29 Filed 2016-05-10
10-K 2015-11-30 Filed 2016-03-22
10-Q 2015-08-31 Filed 2015-10-20
10-Q 2015-05-31 Filed 2015-07-30
10-Q 2015-02-28 Filed 2015-04-22
10-K 2014-11-30 Filed 2015-03-13
10-Q 2014-08-31 Filed 2014-10-20
10-Q 2014-05-31 Filed 2014-07-18
10-Q 2014-02-28 Filed 2014-04-28
10-K 2013-11-30 Filed 2014-04-18
10-Q 2013-08-31 Filed 2013-10-29
10-Q 2013-02-28 Filed 2013-04-15
10-K 2012-11-30 Filed 2013-03-14
10-Q 2012-08-31 Filed 2012-10-15
10-Q 2012-05-31 Filed 2012-07-18
10-Q 2012-02-29 Filed 2012-04-23
10-K 2011-11-30 Filed 2012-03-13
10-Q 2011-08-31 Filed 2011-11-09
8-K 2020-04-29
8-K 2019-10-16
8-K 2019-03-19
8-K 2019-01-10
8-K 2019-01-02
8-K 2018-11-30
8-K 2018-09-26
8-K 2018-07-09
8-K 2018-06-20
8-K 2018-01-10

GLAG 10Q Quarterly Report

Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Securities
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 exhibit311.htm
EX-32.1 exhibit321.htm

Gala Pharmaceutical Earnings 2014-05-31

Balance SheetIncome StatementCash Flow
0.4-0.3-1.0-1.6-2.3-3.02012201420172020
Assets, Equity
0.1-0.4-0.8-1.3-1.7-2.22012201420172020
Rev, G Profit, Net Income
0.30.20.1-0.1-0.2-0.32012201420172020
Ops, Inv, Fin

10-Q 1 form10q.htm FORM 10-Q Filed by OTC Filings Inc. - www.otcedgar.com - 1-866-832-FILE (3453) - Gala Global Inc. - Form 10-Q


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

þ  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended May 31, 2014

 

o TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT

 

For the transition period from _________ to _________

 

Commission File Number: 333-172744

 

GALA GLOBAL INC.

(Name of Small Business Issuer in its charter)

 

 

 

Nevada

42-1771014

(state or other jurisdiction of incorporation or organization)

(I.R.S. Employer I.D. No.)

 

 

1100 Quail Street, Suite 100, Newport Beach, CA

92660

(Address of principal executive offices)

(Zip Code)


 (775) 321-8238

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) 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 require to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  þ   No o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.  (Check one):


Large accelerated filer o      Accelerated filer o     Non-accelerated filer o     Smaller reporting company þ

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o     No þ 

 

APPLICABLE ONLY TO CORPORATE ISSUERS

 

As of July 18, 2014 the registrant had 5,907,000 shares of common stock outstanding.



                 

              


GALA GLOBAL INC.



TABLE OF CONTENTS


 

 

 

 

 

 

  

 

 

 

    PART I- FINANCIAL INFORMATION

  

 

 

 

 

 

 

 

 

 

 Item 1.

   Financial Statements (unaudited)

  

 

 

       Condensed Balance Sheets

  

F-1

 

  

       Condensed Statements of Operations

  

F-2

 

 

       Condensed Statements of Changes in Stockholders’ Equity (Deficit)

 

F-3

 

  

       Condensed Statements of Cash Flows

  

F-4

 

   Notes to Condensed Financial Statements

  

F-5

 Item 2.

Management Discussion & Analysis of Financial Condition and Results of Operations

  

4

 Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

  

7

 Item 4.

Controls and Procedures

  

7

 

 

 

 

 

 

 

 

 

 

 PART II - OTHER INFORMATION

  

 

 

 

 

 

 

 

 

 

 Item 1.

Legal Proceedings

  

8

 Item 2.

  

Unregistered Sales of Equity Securities and Use of Proceeds

  

8

 Item 3.

  

Defaults Upon Senior Securities

  

8

 Item 4.

  

Mine Safety Disclosures

  

8

 Item 5.

  

Other information

  

8

 Item 6.

  

Exhibits

  

9




2                

              




GALA GLOBAL INC.

(A Development Stage Company)


Condensed Financial Statements

(unaudited)


For the Three and Six Month Periods Ended May 31, 2014 and 2013 and the Period from March 15, 2010 (Inception) to May 31, 2014

 


Condensed Balance Sheets (unaudited) F-1
Condensed Statements of Operations (unaudited) F-2
Condensed Statements of Changes in Stockholders’ Equity (Deficit) (unaudited) F-3
Condensed Statements of Cash Flows (unaudited) F-4
Notes to the Condensed Financial Statements (unaudited) F-5
 


 

3                

              



GALA GLOBAL INC.

(A Development Stage Company)

Condensed Balance Sheets

(unaudited)

 

 

May 31,
2014
$

 

November 30,
2013
$

 

(unaudited)

     

(audited)

 

 

ASSETS

 

 

Current Assets

 

 

Cash

104

Total Current Assets

104

 

 

 

Total Assets

104

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

   Current liabilities

Accounts payable and accrued liabilities

3,227

8,902

Due to related parties

14,133

28,298

Loan payable to related party

10,000

Total Current Liabilities

27,360

37,200

 

 

 

Total Liabilities

27,360

37,200

 

 

 

STOCKHOLDERS’ DEFICIT

 

 

 

 

 

Common Stock

Authorized: 75,000,000 common shares with a par value of $0.001 per share

 

 

Issued and outstanding: 5,907,000 common shares

5,907

5,907

Additional paid-in capital

88,491

65,193

Deficit accumulated during the development stage

(121,758)

(108,196)

Total Stockholders’ Deficit

(27,360)

(37,096)

 

 

 

Total Liabilities and Stockholders’ Deficit

104



(The accompanying notes are an integral part of these condensed unaudited financial statements)


 

F-1                

              

 


GALA GLOBAL INC.

(A Development Stage Company)

Condensed Statements of Operations

(unaudited)


 

 

Three months ended

May 31, 2014

      

Three months ended

May 31, 2013

      

Six months ended

May 31, 2014

       

Six months ended

May 31, 2013

      

Accumulated from

March 15, 2010
(Date of Inception) to
May 31,
2014

 











Revenues

 

 $          –

 

 $            –

 

 $             –

 

 $             –

 

 $             –

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

118

 

 

236

 

1,420

General and administrative

 

2,100

 

8,311

 

7,562

 

18,301

 

40,036

Management fees

 

3,000

 

 

6,000

 

 

80,302

 

 

 

 

 

 

 

 

 

 

 

Total Operating Expenses

 

5,100

 

8,429

 

13,562

 

18,537

 

121,758

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

(5,100)

 

(8,429)

 

(13,562)

 

(18,537)

 

(121,758)

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

$ (5,100)

 

$  (8,429)

 

$  (13,562)

 

$  (18,537)

 

$ (121,758)

Net Loss per Share –
Basic and Diluted

 


$  (0.00)*

 


$   (0.00)*

 

$    (0.00)*

 

$    (0.00)*

 

 

Weighted Average Shares
Outstanding – Basic and Diluted

 


5,907,000

 


5,907,000

 

5,907,000

 

5,907,000

 

 

* Denotes a loss of less than $0.01 per share



(The accompanying notes are an integral part of these condensed unaudited financial statements)


 

F-2                

              

 

(A Development Stage Company)

Statements of Changes in Stockholders’ Equity (Defcit)

From March 15, 2010 (Inception) to May 31, 2014

(unaudited)


 

 

 

 

 

 

Common Stock

Additional

Accumulated

 

 

Shares

Par Value

Paid-In Capital

Deficit

Total

 

#

     

$

      

$

      

$

       

$

Balance – March 15, 2010 (date of inception)


 

 

 

 

 

 

Issuance of shares for cash

5,860,000

5,860

18,240

24,100

 

 

 

 

 

 

Net loss for the period

(621)

(621)

 

 

 

 

 

 

Balance – November 30, 2010

5,860,000

5,860

18,240

(621)

23,479

 

 

 

 

 

 

Net loss for the year

(19,445)

(19,445)

 

 

 

 

 

 

Balance – November 30, 2011

5,860,000

5,860

18,240

(20,066)

4,034

 

 

 

 

 

 

Issuance of shares for cash

47,000

47

46,953

47,000

 

 

 

 

 

 

Net loss for the year

(52,140)

(52,140)

 

 

 

 

 

 

Balance – November 30, 2012

5,907,000

5,907

65,193

(72,206)

(1,106)

 

 

 

 

 

 

Net loss for the year

(35,990)

(35,990)

 

 

 

 

 

 

Balance – November 30, 2013

5,907,000

5,907

65,193

(108,196)

(37,096)

 

 

 

 

 

 

Forgiveness of related party debt

23,298

23,298

 

 

 

 

 

 

Net loss for the period

(13,562)

(13,562)

 

 

 

 

 

 

Balance – May 31, 2014

5,907,000

5,907

88,491

(121,758)

(27,360)




(The accompanying notes are an integral part of these condensed unaudited financial statements)


F-3                

              

 

GALA GLOBAL INC.

(A Development Stage Company)

Condensed Statements of Cash Flows

(unaudited)

 

For the six months ended  
May 31, 2014

$

        

For the six monthsended

May 31, 2013

$

        

Accumulated from
March 10, 2010
(Date of Inception) to

May 31, 2014

$

Cash Flow Provided By (Used In) Operating Activities

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period

(13,562)

 

(18,537)

 

(121,758)

   Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

    Depreciation

 

236

 

1,420

Changes in operating assets and liabilities:

 

 

 

 

 

    Accounts payable and accrued liabilities

(5,675)

 

(1,261)

 

3,227

     Due to related party

(5,000)

 

524

 

23,297

 

 

 

 

 

 

Net Cash Used In Operating Activities

(24,237)

 

(19,038)

 

(93,813)

 

 

 

 

 

 

Cash Flow Provided By (Used In) Investing Activities

 

 

 

 

 

 

 

 

 

 

 

    Purchase of property and equipment

 

 

(1,420)

 

 

 

 

 

 

Net Cash Used In Investing Activities

 

 

(1,420)

 

 

 

 

 

 

Cash Flow Provided By (Used In) Financing Activities

 

 

 

 

 

 

 

 

 

 

 

   Proceeds from note payable related party

10,000

 

 

10,000

   Proceeds from issuance of shares

 

 

71,100

   Due to related party

14,133   

14,133      

 

 

 

 

 

 

Net Cash Provided By Financing Activities

24,133

 

 

95,233

 

 

 

 

 

 

Net decrease in Cash

(104)

 

(19,038)

 

 

 

 

 

 

 

Cash Beginning of Period

104

 

24,904

 

 

 

 

 

 

 

Cash End of Period

 

5,866

 

 

 

 

 

 

 

Supplemental Disclosures

 

 

 

 

 

Interest paid

 

 

Income tax paid

 

     –

 

 

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

 

 

Forgiveness of related party debt

23,298

 

 

23,298


 

(The accompanying notes are an integral part of these condensed unaudited financial statements)


F-4                

              


 


GALA GLOBAL INC.

(A Development Stage Company)

Notes to the Condensed Financial Statements

For the Three and Six Months ended May 31, 2014 and 2013, and the period from March 10, 2010 (Date of Inception) to May 31, 2014

(unaudited)



1.   Organization and Nature of Operations

 

Gala Global Inc. (the “Company”, “we”, “us” or “our”) was incorporated in the State of Nevada on March 10, 2010 (Inception). The Company was formed to provide garment tailoring and alteration services. The Company has conducted only limited operations and is in the development stage as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915, Development Stage Entities.  Among the disclosures required as a development stage entity, are that its financial statements are identified as those of a development stage company, and that the statements of operations, changes in stockholders’ equity (deficit), and cash flows disclose activity since the date of Inception as a development stage company(March 10, 2010).  

On May 19, 2014 a change in control of the Company occurred when IDG Ventures LTD sold all of its 3,547,000 common shares, representing 60.04% of our issued and outstanding common shares, in a private share purchase transaction to Messrs Haas, Lefevre and Naccarato as described in Item 2 below.

On June 26, 2014 the Company had a change in management when Mr. Robert Frei resigned as President and Director of the Company and Mr. George Lefevre was appointed as his successor.

 

Going Concern

These financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As at May 31, 2014, the Company has not generated any revenue since its inception, has a working capital deficit of $27,360, and an accumulated deficit of $121,758. The continuation of the Company as a going concern is dependent upon the continued financial support from its management, and its ability to identify future investment opportunities and obtain the necessary debt or equity financing, and generate profitable operations from the Company’s future operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.  


 

2.   Summary of Significant Accounting Policies

 

a) Basis of Presentation

The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) and are expressed in U.S. dollars. The Company’s fiscal year end is November 30.

 

b) Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the recoverability of mineral properties, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

 

c) Interim Financial Statements

The accompanying unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In management’s opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three and six months ended May 31, 2014 are not necessarily indicative of the results that may be expected for the year ended November 30, 2014. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended November 30, 2013 included in our Form 10-K filed with the SEC.

 

F-5                

              

 

GALA GLOBAL INC.

(A Development Stage Company)

Notes to the Condensed Financial Statements

For the Three and Six Months ended May 31, 2014 and 2013, and the period from March 10, 2010 (date of inception) to May 31, 2014

(unaudited)


 

2.   Summary of Significant Accounting Policies (continued)

 

d) Cash and Cash Equivalents

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. As of May 31, 2014 and November 30, 2013, there were no cash equivalents.

 

e) Financial Instruments

We have adopted the guidance of ASC 820, “Fair Value Measurement” which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

 

Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

 

Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

 

Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The Company’s financial instruments consist principally of cash, accounts payable and accrued liabilities, loan payable, and amounts due to related party.. The recorded values of all these financial instruments approximate their current fair values because of the short term nature of these financial instruments.

 

f) Long-Lived Assets

In accordance with ASC 360, “Property Plant and Equipment”, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.

 

g) Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Accounting for Income Taxes. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.


F-6                

              


GALA GLOBAL INC.

(A Development Stage Company)

Notes to the Condensed Financial Statements

For the Three and Six Months ended May 31, 2014 and 2013, and the period from March 10, 2010 (date of inception) to May 31, 2014

(unaudited)


 

2.   Summary of Significant Accounting Policies (continued)

 

h) Revenue Recognition

Revenue will be recognized only when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service has been provided, and collectability is assured.  The Company is not exposed to any credit risks as amounts are prepaid prior to performance of services.

 

i) Advertising Costs

The Company’s policy regarding advertising is to expense advertising when incurred. The Company incurred advertising expense of $0 during the three and six months ended May 31, 2014 and 2013.  

 

j) Stock-based Compensation

The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued.  No stock based compensation was issued or outstanding during the three and six month periods ended May 31, 2014 or 2013. 

 

k) Comprehensive Loss

Comprehensive income is defined as all changes in stockholders' equity (deficit), exclusive of transactions with owners, such as capital investments. Comprehensive income includes net income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. Our comprehensive loss was identical to our net loss for the three and six month periods ended May 31, 2014 and 2013.

 


 

F-7                

              


GALA GLOBAL INC.

(A Development Stage Company)

Notes to the Condensed Financial Statements

For the Three and Six Months ended May 31, 2014 and 2013, and the period from March 10, 2010 (date of inception) to May 31, 2014

(unaudited)

 


2.

Summary of Significant Accounting Policies (continued)

 

l) Basic and Diluted Net Loss per Share

The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive. No potentially dilutive debt or equity instruments were issued and outstanding during the three and six months ended May 31, 2014 and 2013.

m) Recent Accounting Pronouncements

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe that their future adoption of any such pronouncements may be expected to have a material impact on its financial condition of the result of its operations as reported in its financial statements. 

 

3.

Related Party Transactions

 

a) During the three and six months ended May 31, 2014, the Company incurred $3,000 (May 31, 2013 - $nil) and $6,000 (May 31, 2013 - $nil), respectively, in management fees to the former President and Director of the Company. During the three and six months ended May 31, 2014, the former President and Director of the Company was repaid $5,000 of the balance of his loan outstanding and forgave the balance of the loan outstanding totaling $23,298. The gain on the forgiveness of this related party debt was recognized in additional paid-in capital.  As at May 31, 2014, the Company owed $nil (November 30, 2013 - $28,298) to the former President and Director of the Company. The amounts owing had been unsecured, non-interest bearing, and due on demand.

 

b) During the three and six months ended May 31, 2014, the Company received advances of $14,133 (2013 - $nil) from a shareholder of the Company to fund payment of operating expenditures.  The amounts owing are unsecured, non-interest bearing, and due on demand.  

 

4.

Loan Payable – Related Party

 

On March 20, 2014, the Company issued a $10,000 promissory note to a shareholder of the Company.  Under the terms of the note, the amount is unsecured, non-interest bearing, and due on demand.  

 

5.

Subsequent Events

 

On June 26, 2014, Robert Frei resigned as President and Director of the Company, and George Lefevre was appointed as the Company’s new President and Director.

 In accordance with ASC 855-10 the Company has analyzed its operations subsequent to May 31, 2014 to July 18, 2014, the date these financial statements were issued, and has determined that, other than as disclosed above, it does not have any material subsequent events to disclose in these financial statements

 



F-8                

              


ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Safe Harbor Statement


This report on Form 10-Q contains certain forward-looking statements.  All statements other than statements of historical fact are “forward-looking statements” for purposes of these provisions, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operation; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statement of assumptions underlying any of the foregoing. Such forward-looking statements are subject to inherent risks and uncertainties, and actual results could differ materially from those anticipated by the forward-looking statements.


These forward-looking statements involve significant risks and uncertainties, including, but not limited to, the following: competition, promotional costs, and risk of declining revenues.  Our actual results could differ materially from those anticipated in such forward-looking statements as a result of a number of factors.  These forward-looking statements are made as of the date of this filing, and we assume no obligation to update such forward-looking statements.  The following discusses our financial condition and results of operations based upon our financial statements which have been prepared in conformity with accounting principles generally accepted in the United States.  It should be read in conjunction with our financial statements and the notes thereto included elsewhere herein.


The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this Form 10-Q.  The discussions of results, causes and trends should not be construed to imply any conclusion that these results or trends will necessarily continue into the future.


RESULTS OF OPERATIONS


Working Capital


                                               

May 31, 2014

$

   

November 30, 2013

$

Current Assets

-

104

Current Liabilities

27,360

37,200

Working Capital (Deficit)

(27,360)

(37,096)


Cash Flows

Six months ended

May 31, 2014

$

    

Six months ended

May 31, 2013

$

Cash Flows from (used in) Operating Activities

(24,237)

(19,038)

Cash Flows from (used in) Investing Activities

-

-

Cash Flows from (used in) Financing Activities

24,133

-

Net Increase (decrease) in Cash During Period

(104)

(19,038)


 


Operating Revenues

 

During the three and six months ended May 31, 2014, the Company did not recognize any revenues as it has not commenced operations as yet.

 

Operating Expenses 

 

Operating expenses for the three months ended May 31, 2014 were $5,100 compared with $8,429 for the three months ended May 31, 2013.  The decrease in operating expenses was attributed to a decrease in general and administrative expenses as the Company had limited cash flows for day-to-day operations.    

 

Operating expenses for the six months ended May 31, 2014 were $13,562 compared with $18,537 for the six months ended May 31, 2013.  The decrease in operating expenses was attributed to a decrease in general and administrative expenses as the Company had limited cash flows for day-to-day operations.    

 

Net Loss

 

Net loss for the three and six months ended May 31, 2014 was $5,100 (2013-$8,429) and $13,562 (2013- $18,537) respectively, due to the factors discussed above.


 

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Liquidity and Capital Resources

 

As at May 31, 2014, the Company had cash and total assets of $nil compared with cash and total assets of $104 as at November 30, 2013.  

 

As at May 31, 2014, the Company had total liabilities of $27,360 compared with $37,200 as at November 30, 2013.  

 

As at May 31, 2014, the Company had a working capital deficit of $27,360 compared with $37,096 as at November 30, 2013.  

 

The decrease in both total liabilities and our working capital deficit was largely attributed to the fact that the former President and Director of the Company forgave an outstanding loan balance of $23,298.

 

Cashflow from Operating Activities

 

During the six months ended May 31, 2014, the Company used $24,237 of cash in operating activities compared to  $19,038 of cash used in operating activities during the six months ended May 31, 2013. The increase in cash used in operations arose due to the reduction in the balance of our accounts payable by $5,675, a $5,000 repayment of a balance due to a related party, partially offset by reduced losses incurred in the six months ended May 31, 2014 as compared to the six months ended May 31, 2013.

 

Cashflow from Investing Activities

 

During the six months ended May 31, 2014 and 2013, the Company did not have any cash transactions related to investing activities.

 

Cashflow from Financing Activities

 

During the six months ended May 31, 2014, the Company received $10,000 in financing from the issuance of a promissory note to a related party and a further $14,133 in advances from a shareholder. These borrowings are unsecured, non-interest bearing, and due on demand.  During the six months ended May 31, 2013, the Company did not have any cash transactions related to financing activities.  

 

Off-Balance Sheet Arrangements


We have no 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.


Other events


On May 19, 2014, a change in control of Gala Global Inc. (the "Company") occurred when IDG Ventures Ltd. (“IDG”) sold all of its 3,547,000 common shares in a private share purchase transaction to the three individuals listed below.  The consideration paid was $125,000 in cash. The certificates will be processed into the names of the Purchasers and the appropriate SEC documentation filed.  The three individuals now have voting control over 60.04% in the aggregate of the Company’s issued and outstanding common stock.


Purchasers                                            Share position                         Percentage of outstanding


James Haas  

         1,773,500 shares                                       30.02%

George Lefevre                                    886,750 shares                                       15.01%

Owen Naccarato                                  886,750 shares                                       15.01%



Going Concern


We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.


Future Financings


We will continue to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund planned acquisitions and activities.



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Critical Accounting Policies


Our financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.


We regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. A summary of these policies is included in note (1) of the notes to our condensed unaudited financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.


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 amounts reported in the financial statements and accompanying notes for the reporting period. Significant areas requiring the use of management estimates relate to the valuation of its mineral leases and claims and our ability to obtain final government permission to complete the project.


Stock-Based Compensation


The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation, using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued.No stock based compensation was issued or outstanding during the three and six month periods ended May 31, 2014 or 2013.  

 

Recently Issued Accounting Pronouncements


The Company has reviewed the recently issued, but not yet effective, accounting pronouncements and does not believe that the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations as reported in its financial statements.


Contractual Obligations


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.


 

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ITEM 3.   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 4.  CONTROLS AND PROCEDURES

 

Management's Report on Internal Control over Financial Reporting.


Our Internal control over financial reporting is a process that, under the supervision of and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, was designed to provide reasonable assurances regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and our trustees; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our financial statements.


Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that our controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.


As management, it is our responsibility to establish and maintain adequate internal control over financial reporting.  As of May 31, 2014, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of our internal control over financial reporting using criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO").  Based on our evaluation, we concluded that the Company maintained effective internal control over financial reporting as of May 31, 2014, based on criteria established in the Internal Control Integrated Framework issued by the COSO.


This quarterly report does not include an attestation report of the company's registered public accounting firm regarding internal control over financial reporting.  Management's report was not subject to attestation by the company's registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the company to provide only management's report in this quarterly report.

 

Evaluation of disclosure controls and procedures.  


As of May 31, 2014, the Company's chief executive officer and chief financial officer conducted an evaluation regarding the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act. Based upon the evaluation of these controls and procedures, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective as of the date of filing this annual report applicable for the period covered by this report.


Changes in internal controls.  


During the period covered by this report, no changes occurred in our internal control over financial reporting that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.



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PART II – OTHER INFORMATION



ITEM 1.  LEGAL PROCEEDINGS


We were not subject to any legal proceedings during the three and six months ended May 31, 2014 or 2013 and as of May 31, 2014 there are no material pending legal proceedings, other than ordinary routine litigation incidental to our business, to which we or any of our subsidiaries are a party or of which any of our properties is the subject.  Also, our management is not aware of any legal proceedings contemplated by any governmental authority against us.


ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS SECURITIES


No sales of unregistered equity securities were completed in the three or six periods ended May 31, 2014 or 2013.

 

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

  

No senior securities were issued or outstanding during the three and six periods ended May 31, 2014 or 2013.  

 

ITEM 4.  MINE SAFETY DISCLOSURES


Not applicable.


ITEM 5.  OTHER INFORMATION


None.



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ITEM 6.  EXHIBITS


 

 

Exhibit

Number

Exhibit

Description

31.1

Certification of the Chief Executive Officer and Chief Financial Officer Pursuant to Rule 13a-14 or 15d-14 of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

EX-101.INS

XBRL Instance Document

EX-101.SCH

XBRL Taxonomy Extension Schema

EX-101.CAL

XBRL Taxonomy Extension Calculation Linkbase

EX-101.LAB

XBRL Taxonomy Extension Label Linkbase

EX-101.PRE

XBRL Taxonomy Extension Presentation Linkbase

EX-101.DEF

XBRL Taxonomy Extension Definition Linkbase


SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on our behalf by the undersigned thereunto duly authorized.



 

 

 

  

GALA GLOBAL INC.

 

 

(REGISTRANT)

  

 

Date:  July 18, 2014

/s/   George Lefevre

 

 

George Lefevre

  

 

President, Chief Executive Officer, Chief Financial Officer and Director

 

 

(Authorized Officer for Registrant)

 

 

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