U.S.
Securities and Exchange Commission
Washington,
D.C. 20549
FORM
10-K
[X]
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Annual
Report Under Section 13 or 15(d) of The Securities Exchange Act of 1934
for the Fiscal Year Ended December 31,
2008
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[
]
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Transition
Report Under Section 13 or 15(d) of The Securities Exchange Act of 1934
for the Transition Period from _______ to
_______
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Commission
File Number: 333-153589
EXERCISE
FOR LIFE SYSTEMS, INC.
(Exact
name of small business issuer as specified in its charter)
North Carolina
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22-3464709
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(State
or other jurisdiction of
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(IRS
Employer Identification No.)
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incorporation
or organization)
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East
Field Road, Suite 200-311
Huntersville,
NC 28078
(Address
of principal executive offices)
(704)
778-1700
(Issuer's
telephone number)
Securities
registered under Section 12(g) of the Exchange Act:
Common
Stock, $.0001 par value
(Title
of Class)
Indicate
by check mark whether the registrant (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 if disclosure of delinquent filers pursuant to Item 405 if
Regulation S-K (229.405 of this Chapter) is not contained herein, and will not
be contained, to the best of the registrant’s knowledge, in definitive proxy of
information statements incorporated by reference in Part III of this Form 10-K
or any amendments to this Form 10-K.
Yes
[ ] No
[x]
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
definitions of “large accelerated filer”, “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act.
Large
accelerated filer
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Non-accelerated
filer
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(Do
not check if a smaller reporting company)
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Accelerated
filer
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Smaller
reporting company
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Indicate
by check mark whether the registrant is a shell company (as defined in rule
12b-2 of the exchange act).
Yes
[ ] No
[X]
The
Registrant’s revenues for its fiscal year ended December 31, 2008 were
$42,424.
The
aggregate market value of the voting stock on April 14, 2009 (consisting of
Common Stock, $0.0001 par value per share) held by non-affiliates was
approximately $305,410 based upon the most recent sales price for such Common
Stock on said date ($0.20). April 14, 2009, there were 11,527,050 shares of our
Common Stock issued and outstanding, of which approximately 1,527,050 shares
were held by non-affiliates.
Number of
shares of common stock, par value $.0001, outstanding as of April 14, 2009:
11,527,050
DOCUMENTS
INCORPORATED BY REFERENCE
None
CAUTIONARY
STATEMENT REGARDING FORWARD LOOKING INFORMATION
The
discussion contained in this 10-K under the Securities Exchange Act of 1934, as
amended, contains forward-looking statements that involve risks and
uncertainties. The issuer's actual results could differ significantly from those
discussed herein. These include statements about our expectations, beliefs,
intentions or strategies for the future, which we indicate by words or phrases
such as "anticipate," "expect," "intend," "plan," "will," "we believe," "the
Company believes," "management believes" and similar language, including those
set forth in the discussions under "Notes to Financial Statements" and
"Management's Discussion and Analysis or Plan of Operation" as well as those
discussed elsewhere in this Form 10-K. We base our forward-looking statements on
information currently available to us, and we assume no obligation to update
them. Statements contained in this Form 10-K that are not historical facts are
forward-looking statements that are subject to the "safe harbor" created by the
Private Securities Litigation Reform Act of 1995.
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PART I:
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Item
1.
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Business
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4
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Item
1A.
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Risk
Factors
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8
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Item
1B.
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Unresolved
Staff Comments
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11
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Item
2.
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Properties
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11
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Item
3.
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Legal
Proceedings
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11
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Item
4.
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Submission
of Matters to a Vote of Security Holders
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12
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PART II:
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Item
5.
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Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
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15
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Item
6.
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Selected
Financial Data
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15
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Item
7.
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Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
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19
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Item
7A.
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Quantitative
and Qualitative Disclosures About Market Risk
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19
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Item
8.
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Financial
Statements and Supplementary Data
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33
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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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33
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Item
9A.
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Controls
and Procedures
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34
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Item
9A(T).
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Controls
and Procedures
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35
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Item
9B.
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Other
Information
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35
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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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37
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Item
11.
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Executive
Compensation
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38
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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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38
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Item
13.
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Certain
Relationships and Related Transactions, and Director
Independence
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39
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Item
14.
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Principal
Accounting Fees and Services
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PART IV:
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Item
15.
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Exhibits,
Financial Statement Schedules
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40
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SIGNATURES:
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41
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ITEM 1.
BUSINESS
Our
Company
Exercise
for Life Systems, Inc. is a full-service operator of personal fitness training
in and around the Lake Norman area of Charlotte, North Carolina. We operate from
our training facility located at East Field Road, Suite 200-311 Huntersville,
NC 28078. By operating our fitness center in a major metropolitan
area such as Charlotte, North Carolina, we are able to offer city-wide training
services, providing more value to clients and differentiating ourselves from
“mom and pop” competitors while achieving operating efficiencies.
We were
incorporated in New Jersey in August of 1996 until we re-domiciled to North
Carolina in September, 2008. Since inception, our business, markets, the
services we offer and the way we conduct our business have not changed
significantly and are not expected to change. Changes that have been made are
primarily the result of increasing awareness of the need for exercise, weight
control, good nutrition and a healthy lifestyle among adults and children in the
United States. We believe that through more targeted sales and marketing efforts
of our service offerings we can capitalize on the opportunities in our markets,
including the aging of America and generally higher awareness levels of fitness.
For many years our target market was the 18- to 34-year old middle-income
segment of the population. In recent years, we expanded our target market to
include 35- to 64-year olds. Currently, our clients range in age from
approximately 12 to 91, reflecting our many years in business and diverse client
base.
Beginning
in September, 2006, we changed our focus and our business plan by focusing on
improving operating margins and cash flows from our existing profit center of
personal fitness training. We first focused on operating efficiencies, enrolling
more new clients by expanding our service offerings to include discounted
services if a client purchases a bulk number of training sessions in
advance. These changes to our business model, when combined with
competitive conditions in key markets where well-financed competitors have
expanded their operations, have positively affected our operating results and
cash collections. We continue to evaluate strategic alternatives to enhance our
liquidity and make necessary investments in our ongoing business.
Business
Development
Exercise
for Life Systems was incorporated in New Jersey in 1996 as A.J. Glaser, Inc. and
later incorporated in North Carolina in 2006 also as A.J. Glaser,
Inc. In 2008, A.J. Glaser, Inc. amended its North Carolina Articles
of Incorporation to change its name to Exercise for Life Systems,
Inc. In September of 2008 we entered into a plan of exchange with
A.J. Glaser, Inc. whereby we exchanged 100 shares of our common stock for all of
the issued and outstanding shares of A.J. Glaser, Inc. We entered
into this transaction in order to re-domicile our company in North Carolina
where the majority of our business is conducted.
The
Company currently operates a full-service personal fitness training center in
Cornelius, North Carolina. Exercise for Life Systems’ product and
service offerings seek to help its clients and prospective clients achieve their
health and wellness goals while increasing its revenue, earnings, cash flow and
profitability. The Company’s primary focus is to improve operating margins and
cash flows from the Company’s existing profit center of personal fitness
training, as well as provide value added health and fitness services and to
continue helping clients achieve their health and wellness goals.
Exercise for Life
Systems, Inc. is headquartered in Cornelius, North Carolina.
When it
comes to the public’s increasing awareness of the need for exercise, weight
control, good nutrition, and a healthy lifestyle, we believe that through more
targeted sales and marketing efforts of our service offerings, we can capitalize
on the opportunities in our markets, including the aging of America and
generally higher awareness levels of fitness. Beginning in 2006, we changed our
focus and our business plan by focusing on improving operating margins and cash
flows from our existing profit center of personal fitness
training. We first focused on operating efficiencies, enrolling more
new clients by expanding our service offerings to include discounted services if
a client purchases a bulk number of training sessions in
advance. These changes to our business model, when combined with
competitive conditions in key markets where well-financed competitors have
expanded their operations, have positively affected our operating results and
cash collections. The Company will continue to evaluate strategic
alternatives to enhance our liquidity and make necessary investments in our
ongoing business as well as strive to nurture the best practices and talent of
our partners and share them broadly to create value for our customers,
shareholders, partners and employees.
By
operating our fitness center in a major metropolitan area such as Charlotte,
North Carolina, Exercise for Life Systems is able to offer city-wide training
services, providing more value to clients and differentiating ourselves from
“mom and pop” competitors while achieving operating efficiencies. Our
target market includes, but is not limited to, 18- to 64-year olds. Our industry
experience has allowed us to identify target markets that will be receptive to
our proprietary products and services while allowing the quickest market
penetration with as minimal competition as possible.
Business
of Issuer
Products
and Services
Our
fitness operations provide a unique platform for the delivery of value-added
services to our fitness, wellness and weight loss-conscious
clients. By integrating personal training, nutrition advice, and our
weight management program into our core fitness training operations, we have
positioned ourselves as the total source for most of our clients’ wellness and
fitness needs.
Personal
Training.
We offer fee-based personal training services with
professionally certified personal trainers currently on staff. Integrating
personal training into select programs has helped fuel the growth of this
service. All new clients are also offered a free first work-out with a personal
trainer as an important first step toward fitness at the beginning of their
training. Personal training package services are also offered
separately, giving customers a full range of personal training options at the
point of sale and beyond. We believe that further penetration into the existing
client base along with new personal training programs will continue to provide
revenue growth opportunities in personal training. Our multi-client personal
training sessions (small group personal training) are more affordable for our
clients, and on average, have a margin similar to or greater than one-on-one
training. We also offer a maintenance program after a client has completed a
personal training package. This allows a client who may have stopped
training otherwise to continue using our services. Maintenance
clients can come in once a week, bi-weekly, monthly or
quarterly. These maintenance clients continue to increase revenue by
retaining personal trainers services on a more limited basis. They
are also still a source for referrals in the future.
Supplements.
We
sell certain supplements which are scientifically-advanced formulas designed to
give the body the maximum benefit from vitamins and minerals. They are a
powerful combination of plant-derived bioflavonoid, known as oligomeric
proanthocyanidins, or OPC's. Made from a unique combination of grape seed, pine
bark and red wine extracts (in addition to bilberry and citrus extracts), these
OPC's are super-effective free radical neutralizers.* Our web site for this
product is located at
http://drink2health.isotonix.com
.
When one takes a daily vitamin or nutritional supplement tablet, the body must
work hard for up to four hours to digest and absorb the vitamins and minerals.
During that process, your body may not absorb enough nutrients to gain the
maximum benefit it needs to remain healthy. Our supplements use an isotonic
formula to speed nutrients to the body where they are needed most. An isotonic
formula utilizes a powder formula, that, when mixed with water, minimizes the
amount of digestion needed to deliver maximum benefit to your body. Through this
effective method, the supplements provide delivery and speed nutrients to the
body.
*The Food
and Drug Administration has not evaluated these statements. The product is not
intended to diagnose, treat, cure, or prevent any disease.
Nutrition and Weight Management
Program.
We offer a comprehensive nutrition and exercise program
customized to an individual’s unique metabolism. This program combines meal
plans, grocery lists, recipes, meal replacement bars and meal replacement shakes
to offer a comprehensive weight management program to all Exercise for Life
Systems, Inc. clients. Using computer-based or manual food logging methods, all
participants in our weight loss solution can track their progress towards
reaching their weight loss goals. This allows for the integration into a
comprehensive lifestyle, health, nutrition and fitness program. The
weight management program can be done individually or in a group
setting. The length of the program is 12 weeks and then we offer a
maintenance program for those who want to continue along their weight loss
journey. All participants are weighed and measured every four weeks
so we can monitor their improvement.
Fitness
Assessments.
We offer the Polar Body Age
Assessment. This state of the art assessment allows clients to see
their strengths and weaknesses compared to other people of their same age and
sex. It includes weight, blood pressure, flexibility, strength, girth
measurement, cardiovascular, risk factor and weight management
assessments. The most unique part of the Polar Body Age system is
that it takes the results of all the assessments and gives the client his or her
body age compared to chronological age. All members who sign up for personal
training are required to take the 20 page one hour assessment. Follow
up assessments are required every 3 months or at the completion of the personal
training program. This holds the client as well as the trainer
responsible for meeting the client’s goals. We also offer partial
assessments for those who only want to do certain aspects of the Polar Body Age
System. Individual body fat, blood pressure and cardiovascular
assessments are available.
Our
Business Model
Exercise
for Life Systems plans to generate income by integrating personal training,
nutrition advice, and the weight management program into its core fitness
training operations and by positioning itself as the total source for most of
its clients’ wellness and fitness needs. Through its product and
service offerings, the Company will increase its revenues by offering a wide
array of health and wellness products and services to clients of all
ages. By offering personal service, Exercise for Life Systems will
position itself to help its clients successfully achieve their goals and build
its brand recognition.
Strategy
and Implementation Summary
We will
watch our results very carefully. Believing that a business opportunity exists
is important. However, we will not pursue a business model if we cannot afford
to be in that business. We will strategically focus on retaining existing and
signing up new clients. Our business strategy is to quickly and
aggressively pursue and expand in areas of success and market dominance that
have not already been successfully penetrated by other businesses, or to provide
services and solutions not presently offered by our
competitors.
Marketing
and Sales Strategy
We devote
substantial resources to marketing and promoting our fitness services. We
believe strong marketing support is important to attracting new clients at both
existing and new fitness centers as well as promoting our various service
offerings to both new and current clients. We also believe that our sales and
marketing efforts compliment other actions and programs to improve client
retention.
We
advertise primarily through direct mail, newspapers, telephone directories,
on-line advertising, and other promotional activities. Our advertising programs
are local. Our marketing approach and organization, as well as our creative
approach is developed to reach multiple customer segments in the 18- to 64-year
old demographic.
Our sales
and marketing programs emphasize the benefits of health, physical fitness,
nutrition and exercise by appealing to the public’s desire to lose weight, look
and feel better, be healthier, experience an improved quality of life and live
longer. We believe providing clients a solution to their fitness and nutrition
needs, along with flexible payment plans (clients can pay at the time services
are rendered or may mail in their payment), our strong brand identity and the
convenience of multiple locations, constitute additional competitive
advantages.
Our
marketing efforts also include corporate and individual marketing programs. We
sell corporate services directly to businesses, as well as directly to their
employees through a combination of offsite sales activities and corporate
events. Open houses and other activities for clients and their guests are used
to foster client loyalty and introduce prospective clients to our fitness
training center. Referral incentive programs are designed to involve current
clients in the process of new enrollments and enhance client loyalty. Direct
mail and email reminders encourage referrals and renewals of
clients.
We also
attract interest from visitors to our Internet homepage at
http://www.drmikechandler.com/personaltraining.html and continue to explore ways
to use the Internet as a customer relationship management tool. Inquiries via
the Internet have become an important source of new clients. All Internet
visitors are encouraged to download a free trial visit, as well as set an
appointment for an initial visit.
Future
Fitness Centers and Operations
Site
selection.
Our objective is to select highly-visible locations with
high traffic volume, household density and proximity to other generators of
retail traffic. Most of our fitness centers will be located near regional, urban
and suburban shopping areas and business districts of major cities.
Fitness center
model.
Our current fitness center model offers those fitness
services our clients use most frequently, such as well-equipped cardiovascular,
strength and free weight training areas along with a wide variety of exercise
classes. These centers typically are small so as to maintain economic efficiency
while still getting a solid workout.
Fitness center
operations.
Our overall goal is to maximize our clients’
experiences by combining exercise instruction with nutrition guidance to assist
our clients in achieving all of their fitness and weight loss objectives. We
believe the most effective way to retain clients is by successfully assisting
them in reaching their fitness goals and experiencing a higher quality of life.
Our ultimate goal is that they continue to exercise for the rest of their life.
We strive to employ friendly, helpful and fitness informed personnel committed
to providing a high level of customer service, creating an environment that
meets the needs of our clients. We staff our fitness center with well-trained
health, fitness and nutrition professionals. Onsite personal trainers are
available to assist in the development of a customized training regimen. Our
weight management programs and nutrition products are available at all of our
domestic fitness centers and are becoming an increasingly important part of our
total fitness offering. All personal trainers are required to have a
four year degree in the fitness or physical education field.
Fitness
centers that we open in the future may vary in size, amenities and types of
services provided. Our current fitness center contains a wide variety
of progressive resistance, cardiovascular and conditioning exercise equipment,
as well as free weights and stretch areas with small apparatus equipment. Some
fitness centers in the future may contain amenities such as saunas, steam rooms,
whirlpools and swimming pools, but there is no guarantee as this would be
contingent upon raising capital in the future.
Competition
We
operate in a fragmented but highly competitive market. Several of our
competitors have access to capital which has fueled their expansion and growth,
including entry into key markets served by us. In several cases, these
competitors have a more favorable liquidity position than we do. Despite
increasing levels of competition, at this time we are an efficient operator of
our fitness training center in Cornelius, North Carolina in terms of clients,
revenues and square footage of our facility. We primarily compete with other
commercial fitness centers; physical fitness and recreational facilities
established by local governments, hospitals, and businesses for their employees;
the YMCA and similar organizations; and, to a certain extent, with racquet,
tennis and other athletic clubs, weight-reduction businesses, and the home-use
fitness equipment industry. We also compete, to some degree, with entertainment
and retail businesses for the discretionary income of consumers in our target
markets. In addition, we face regional competition with increasingly large
fitness companies such as 24 Hour Fitness Worldwide, Inc., L.A. Fitness, Inc.,
Town Sports International Holdings, Inc. (NSDQ: CLUB), Life Time Fitness, Inc.
(NYSE: LTM) and Gold’s Gym International, Inc. Other competition comes from new
small footprint, lower cost competitors such as Fitness 19, Anytime Fitness and
Planet Fitness.
Competition
has increased in certain markets from competitors expanding their scope of
operations, and due to the decrease in the barriers to entry into the market
with financing available from, among others, financial institutions, landlords,
equipment manufacturers, private equity sources and the public capital markets.
We believe several competitive factors influence success in the fitness center
business, including convenience, price, customer service, and quality of
operations, quality and innovative programming as well as the ability to secure
prime real estate. We believe we benefit from our flexible and affordable client
plans, and our diverse client base, although we have been adversely affected by
our lack of capital and the aging of our facility, which affects our ability to
compete. We expect the persisting increase in competition from well-financed
competitors to continue to have an adverse effect on our business.
We
believe we compete favorably in the principal competitive factors in our market,
which consist of the following:
·
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Knowledgeable
physical trainers,
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·
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Technologically
advanced products and services; and
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·
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Technical
capability and management experience and
expertise.
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Competitive
Edge
The
competitive edge of Exercise for Life Systems, Inc. is due to the
following:
Knowledge.
Through our strategic recruiting efforts at the nation’s best colleges that
offer four year degrees, we strive to hire only the best and most qualified
personal trainers and employees. All of our trainers are required to
have a four year degree in a fitness or physical education
curriculum. We do not experience a high turnover of personal
trainers, and as a result, our trainers are experienced with and knowledgeable
about our business, products and services.
Leading Edge Technology.
Our
product and service offerings are equipped with leading edge
technology. By offering scientifically advanced supplements,
customized nutrition and weight management programs, and state of the art
fitness assessments, we are able to offer our clients what they need to achieve
their desired goals.
People.
We have a history in
working with people and helping them achieve their goals. By hiring
our personal training managers from within the Company, our center is run by
professional managers who are familiar with our business, products and services
and who have also built a rapport with our existing clients.
ITEM 1A. RISK
FACTORS
In addition to the other information set forth in
this report, you should carefully consider the following factors, which could
materially affect our business, financial condition or future results. The risks
described below are not the only risks facing us. Additional risks and
uncertainties not currently known to us or that we currently deems to be
immaterial also may materially adversely affect our business, financial
condition or results of operations.
We have experienced relatively slow growth to this date
and without significant increases in the market penetration of our services and
improvements to our operating margins we will not achieve
profitability.
We
anticipate that we could incur significant losses for at least the
short-term. We will not achieve profitable operations until we
complete our offering and successfully attract and retain a significant number
of clients to, and users of, our services and customers for our other services
and generate revenues from these sources that are sufficient to offset the
substantial up-front expenditures and operating costs associated with developing
and commercializing our services. We may never be able to accomplish these
objectives.
It
is likely that we will require significant additional financing within the next
12 months and if we are unable to raise the needed funds on an acceptable basis,
we may be forced to cease operations.
Our
current business plan calls for raising a significant amount of additional funds
within the next 12 months. Under the plan, these new funds would be
utilized primarily for increased advertising and to expand the Company’s
infrastructure through hiring key employees. We believe that this future
financing is crucial to our ability to grow and develop our
business. If we are unsuccessful in our ability to raise additional
funds on acceptable terms when required, our business may wither and
die.
It
will be difficult for you to evaluate us based on our past performance because
we have only a limited operating history.
We have
been engaged in personal training services for a relatively short period of
time. Accordingly, we have only limited financial results on which you can
evaluate us and our operations. Accordingly, we should be viewed as
essentially a new business and therefore, we are subject to, and may not be
successful in addressing, the risks typically encountered by new enterprises and
companies operating in the rapidly evolving marketplace, including those risks
relating to:
o
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the
failure to develop brand name recognition and
reputation;
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o
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the
failure to achieve market acceptance of our
services;
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o
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a
slow down in the growth of general consumer acceptance of personal
training; and
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o
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an
inability to grow and adapt our business and technology to evolving
consumer demand.
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We
may not be able to successfully compete in our markets, which are characterized
by intense competition and the presence of large competitors.
Given our
relatively limited resources, we may not be able to effectively compete in our
target markets. These markets are characterized by intense
competition and increasing numbers of new market entrants who have developed or
are developing potentially competitive services. Most of our
competitors have significantly greater financial and operating resources
compared to us. Our ability to compete will be dependent on our ability to
enhance and upgrade our services.
Our
limited resources may restrict our ability to manage any growth we may
experience.
Growth of
our business will likely place a significant strain on our management systems
and resources and may require us to implement new operating systems, procedures
and controls. Our failure to manage our growth and expansion could
adversely affect our business, results of operations and financial condition.
Failure to implement new systems effectively or within a reasonable period of
time could adversely affect our business, results of operations and financial
condition.
If
we lose any of our key personnel or fail to hire and retain other talented
employees, our operations could be harmed.
Our
success is dependent, in part, on the personal efforts of Adam Slazer, our
President, and other key personnel that we hope to hire after this
Offering. Although, we plan to obtain "key-man" insurance on his life
in the amount of $1,000,000, the loss of Mr. Slazer's services could have a
material adverse effect on our business and prospects. Our success is also
dependent upon our ability to hire and retain additional qualified management,
marketing, technical, financial, and other personnel. Competition for qualified
personnel is intense and we may not be able to hire or retain additional
qualified personnel. Any inability to attract and retain qualified management
and other personnel would have a material adverse effect on our business and
operations.
We
may not be able to attract and retain a sufficient number of clients to maintain
or expand the business.
During
each of the last two fiscal years, our number of clients declined. The
profitability of our fitness operations is dependent, in large part, on our
ability to originate and retain clients. Numerous factors have
affected our client origination and retention at our fitness centers and that
could lead to a further decline in client origination and retention rates in the
future, including the inability of us to deliver quality service at a
competitive cost, the presence of direct and indirect competition in the areas
we are located and the public’s level of interest in fitness and general
economic conditions.
We
may not be able to continue to compete effectively in the future.
We expect
the persisting increase in competition to continue to have an adverse effect on
our business, liquidity, financial condition and results of
operations. In addition, the constraints on our liquidity have
limited our ability to invest our operating cash flow in improvements to our
fitness centers and address the aging of our facilities, which may affect our
ability to compete. Public perception of our declining liquidity,
financial condition and results of operations, in particular with regard to our
potential failure to meet our debt obligations, may result in additional
decreases in cash client revenues (particularly those associated with longer
term client contracts) and increases in client attrition. In
addition, if liquidity problems persist, our suppliers could refuse to provide
key products and services in the future. Continuing liquidity
concerns could also negatively affect our relationship with employees by
decreasing productivity and increasing turnover.
Competitors
could copy our business model and erode our market share, brand recognition and
profitability.
We cannot
assure you that our competitors will not attempt to copy our business model, or
portions thereof, and that this will not erode our market share and brand
recognition and impair our growth rate and profitability. In response to any
such competitors, we may be required to decrease our membership fees, which may
reduce our operating margins and profitability.
We
have significant operations concentrated in a certain geographic area, and any
disruption in the operations of our center in this area could harm our operating
results.
Any
prolonged disruption in the operations of our center, whether due to technical
difficulties, power failures or destruction or damage to the center as a result
of a natural disaster, fire or any other reason, could harm our operating
results. In addition, our concentration in this market increases our exposure to
adverse developments related to competition, as well as economic and demographic
changes in these areas.
We
could be subject to claims related to health or safety risks at our
center.
Use of
our center poses potential health or safety risks to members or guests through
exertion and use of our equipment, facilities and services. We cannot assure you
that claims will not be asserted against us for injury or death suffered by
someone using our facilities or services.
Certain
shareholders control a substantial portion of our outstanding common
stock.
Our
executive officers, directors and principal shareholders own a significant
portion of the outstanding shares of our common stock. Specifically,
Adam Slazer, our President, owns 10,000,000 shares of our common stock. In
addition, additional shares and/or options may be issued to our other officers,
directors and employees. Accordingly, these persons, acting together,
will be able to influence the election of our directors and thereby influence or
direct our policies.
No
dividends have been paid on our common stock.
To date,
we have not paid any cash dividends on our common stock and we do not expect to
declare or pay dividends on the common stock in the foreseeable future. In
addition, the payment of cash dividends may be limited or prohibited by the
terms of any future loan agreements.
The
Company does not have a prior public market, and there can be no assurance that
an active trading market will exist in our Stock after the
Offering.
Prior to
the Offering, there has been no public market for the Common Stock, and there
can be no assurance that an active trading market in the Common Stock will
develop after the Offering or be sustained. The initial public
offering price may not be indicative of the market price for the Common Stock
after the Offering. The liquidity of and the market price for the
Common Stock can be expected to vary with changes in market and economic
conditions, the financial condition and prospects of the Company and other
factors that generally influence the market prices of
securities. Such fluctuations may significantly affect liquidity and
market prices independent of the financial performance of and prospects for the
Company.
ITEM 1B. UNRESOLVED STAFF
COMMENTS
None.
ITEM 2.
PROPERTIES
Our
corporate headquarters are located at East Field Road, Suite
200-311 Huntersville, NC 28078. The Company has an
oral contract to lease the premises with its President. The lease is
gratuitous and consists of approximately 100 square feet of office
space. The effects of the fair value of rent of its headquarters that
is provided by a related party are immaterial to the financial statements taken
as a whole.
None.
Trading
Market for Common Equity
Our
common stock is quoted on the Electronic Bulletin Board under the symbol,
EFLS.OB. Trading in the common stock in the over-the-counter market has been
limited and sporadic and the quotations set forth below are not necessarily
indicative of actual market conditions. Further, these prices reflect
inter-dealer prices without retail mark-up, mark-down, or commission, and may
not necessarily reflect actual transactions. The following tables set forth the
high and low sale prices for our common stock as reported on the Electronic
Bulletin Board for the periods indicated.
Dividends
We have
never paid a cash dividend on our common stock. The payment of dividends may be
made at the discretion of our Board of Directors, and will depend upon, among
other things, our operations, capital requirements, and overall financial
condition. There are no contractual restrictions on our ability to declare and
pay dividends.
Preferred
Stock
We
currently have zero shares of preferred stock outstanding.
Number
of Holders
As of
March 12, 2009, we had 41 common shareholders of record.
Securities
Authorized for Issuance Under Equity Compensation Plans
As of the
date of this Report, we have not authorized any equity compensation plan, nor
has our Board of Directors authorized the reservation or issuance of any
securities under any equity compensation plan.
Recent
Sales of Unregistered Securities; Use of Proceeds from Registered
Securities
During
the past three years the Registrant has issued the following securities without
registration under the Securities Act of 1933, as amended:
During
2008, we issued 1,000 common shares each to William C. Moncrief Jr., Terri Lynn
Abel, Mark A. Dell, Judith A. Newland, Thomas F. Von Ohlen, Stephen Glaser,
Stacie K. Branham, Bradley E. Turner, Stacie Dyan Cottone, Angela Cottone, Nancy
Lea Hart/Doc Hart, Tracie Zehnal, Thomas A. Brophy, Vanessa Cottone, Tara
Cottone, and Michael W. Chandler at $0.10 per share for a total of $100 from
each investor and an aggregate of $1,600. We used the proceeds from these
offerings for working capital purposes. We relied on exemptions provided by
Section 4(2) of the Securities Act of 1933, as amended. We made these offerings
based on the following facts: (1) the issuances were isolated private
transactions which did not involve a public offering; (2) there was only one
offeree in each offering, (3) each offeree has agreed to the imposition of a
restrictive legend on the face of the stock certificate representing its shares,
to the effect that it will not resell the stock unless its shares are registered
or an exemption from registration is available; (4) the offerees were
sophisticated investors very familiar with our company and stock-based
transactions; (5) there were no subsequent or contemporaneous public offerings
of the stock; (6) the stock was not broken down into smaller denominations; and
(7) the negotiations for the sale of the stock took place directly between the
offeree and our management.
Also in
2008, we issued 35,000 common shares to Steven A. Bongiovanni at $0.10 per share
for an aggregate price of $3,500. We used the proceeds from these
offerings for working capital purposes. We relied on exemptions
provided by Section 4(2) of the Securities Act of 1933, as amended. We made this
offering based on the following facts: (1) the issuance was an isolated private
transaction which did not involve a public offering; (2) there was only one
offeree, (3) the offeree has agreed to the imposition of a restrictive legend on
the face of the stock certificate representing its shares, to the effect that it
will not resell the stock unless its shares are registered or an exemption from
registration is available; (4) the offeree was a sophisticated investor very
familiar with our company and stock-based transactions; (5) there were no
subsequent or contemporaneous public offerings of the stock; (6) the stock was
not broken down into smaller denominations; and (7) the negotiations for the
sale of the stock took place directly between the offeree and our
management.
In 2008,
we issued 10,000 common shares each to Richard A. West, Joseph M. Wilkins,
Valerie A. Garman, and Sunbelt Studios, LLC at $0.10 per share for a total of
$1,000 from each investor and an aggregate of $4,000. We used the
proceeds from these offerings for working capital purposes. We relied on
exemptions provided by Section 4(2) of the Securities Act of 1933, as amended.
We made these offerings based on the following facts: (1) the issuances were
isolated private transactions which did not involve a public offering; (2) there
was only one offeree in each offering, (3) each offeree has agreed to the
imposition of a restrictive legend on the face of the stock certificate
representing its shares, to the effect that it will not resell the stock unless
its shares are registered or an exemption from registration is available; (4)
the offerees were sophisticated investors very familiar with our company and
stock-based transactions; (5) there were no subsequent or contemporaneous public
offerings of the stock; (6) the stock was not broken down into smaller
denominations; and (7) the negotiations for the sale of the stock took place
directly between the offeree and our management.
During
2008, we issued 5,000 common shares each to Mark J. Koury, Christopher S.
Moseley, and George and Nellie Roth at $0.10 per share for a total of $500 from
each investor and an aggregate of $1,500. We used the proceeds from
these offerings for working capital purposes. We relied on exemptions provided
by Section 4(2) of the Securities Act of 1933, as amended. We made these
offerings based on the following facts: (1) the issuances were isolated private
transactions which did not involve a public offering; (2) there was only one
offeree in each offering, (3) each offeree has agreed to the imposition of a
restrictive legend on the face of the stock certificate representing its shares,
to the effect that it will not resell the stock unless its shares are registered
or an exemption from registration is available; (4) the offerees were
sophisticated investors very familiar with our company and stock-based
transactions; (5) there were no subsequent or contemporaneous public offerings
of the stock; (6) the stock was not broken down into smaller denominations; and
(7) the negotiations for the sale of the stock took place directly between the
offeree and our management.
Also in
2008, we issued 50,000 common shares to Kenneth Griffin Jr and Bryan Kuskie at
$0.10 per share for an aggregate price of $10,000. We used the
proceeds from these offerings for working capital purposes. We relied
on exemptions provided by Section 4(2) of the Securities Act of 1933, as
amended. We made this offering based on the following facts: (1) the issuance
was an isolated private transaction which did not involve a public offering; (2)
there was only one offeree, (3) the offeree has agreed to the imposition of a
restrictive legend on the face of the stock certificate representing its shares,
to the effect that it will not resell the stock unless its shares are registered
or an exemption from registration is available; (4) the offeree was a
sophisticated investor very familiar with our company and stock-based
transactions; (5) there were no subsequent or contemporaneous public offerings
of the stock; (6) the stock was not broken down into smaller denominations; and
(7) the negotiations for the sale of the stock took place directly between the
offeree and our management.
In 2008,
we issued 2,000 common shares each to Adam D.A. Matisko, Ray Moseley, William A.
Byrd, Richard Neil Younts, Rodney Slagter, and Dean A. Stewart for a total of
$200 from each investor and an aggregate of $1,200. We used the
proceeds from these offerings for working capital purposes. We relied on
exemptions provided by Section 4(2) of the Securities Act of 1933, as amended.
We made these offerings based on the following facts: (1) the issuances were
isolated private transactions which did not involve a public offering; (2) there
was only one offeree in each offering, (3) each offeree has agreed to the
imposition of a restrictive legend on the face of the stock certificate
representing its shares, to the effect that it will not resell the stock unless
its shares are registered or an exemption from registration is available; (4)
the offerees were sophisticated investors very familiar with our company and
stock-based transactions; (5) there were no subsequent or contemporaneous public
offerings of the stock; (6) the stock was not broken down into smaller
denominations; and (7) the negotiations for the sale of the stock took place
directly between the offeree and our management.
During
2008, we issued 2,050 common shares to Stacie D. Criscuolo at $0.10 per share
for an aggregate price of $205. We used the proceeds from these
offerings for working capital purposes. We relied on exemptions
provided by Section 4(2) of the Securities Act of 1933, as amended. We made this
offering based on the following facts: (1) the issuance was an isolated private
transaction which did not involve a public offering; (2) there was only one
offeree, (3) the offeree has agreed to the imposition of a restrictive legend on
the face of the stock certificate representing its shares, to the effect that it
will not resell the stock unless its shares are registered or an exemption from
registration is available; (4) the offeree was a sophisticated investor very
familiar with our company and stock-based transactions; (5) there were no
subsequent or contemporaneous public offerings of the stock; (6) the stock was
not broken down into smaller denominations; and (7) the negotiations for the
sale of the stock took place directly between the offeree and our
management.
Also in
2008, we issued 100,000 common shares to Lisa Derosa and Tray Rorie at $0.10 per
share for an aggregate price of $20,000. We used the proceeds from
these offerings for working capital purposes. We relied on exemptions
provided by Section 4(2) of the Securities Act of 1933, as amended. We made this
offering based on the following facts: (1) the issuance was an isolated private
transaction which did not involve a public offering; (2) there was only one
offeree, (3) the offeree has agreed to the imposition of a restrictive legend on
the face of the stock certificate representing its shares, to the effect that it
will not resell the stock unless its shares are registered or an exemption from
registration is available; (4) the offeree was a sophisticated investor very
familiar with our company and stock-based transactions; (5) there were no
subsequent or contemporaneous public offerings of the stock; (6) the stock was
not broken down into smaller denominations; and (7) the negotiations for the
sale of the stock took place directly between the offeree and our
management.
During
2008, we issued 7,500 common shares to Scott R. Tetterton at $0.10 per share for
an aggregate price of $750. We used the proceeds from these offerings
for working capital purposes. We relied on exemptions provided by
Section 4(2) of the Securities Act of 1933, as amended. We made this offering
based on the following facts: (1) the issuance was an isolated private
transaction which did not involve a public offering; (2) there was only one
offeree, (3) the offeree has agreed to the imposition of a restrictive legend on
the face of the stock certificate representing its shares, to the effect that it
will not resell the stock unless its shares are registered or an exemption from
registration is available; (4) the offeree was a sophisticated investor very
familiar with our company and stock-based transactions; (5) there were no
subsequent or contemporaneous public offerings of the stock; (6) the stock was
not broken down into smaller denominations; and (7) the negotiations for the
sale of the stock took place directly between the offeree and our
management.
In 2008,
we issued 7,000 common shares to Stanly Nicastro at $0.10 per share for an
aggregate price of $700. We used the proceeds from these offerings
for working capital purposes. We relied on exemptions provided by
Section 4(2) of the Securities Act of 1933, as amended. We made this offering
based on the following facts: (1) the issuance was an isolated private
transaction which did not involve a public offering; (2) there was only one
offeree, (3) the offeree has agreed to the imposition of a restrictive legend on
the face of the stock certificate representing its shares, to the effect that it
will not resell the stock unless its shares are registered or an exemption from
registration is available; (4) the offeree was a sophisticated investor very
familiar with our company and stock-based transactions; (5) there were no
subsequent or contemporaneous public offerings of the stock; (6) the stock was
not broken down into smaller denominations; and (7) the negotiations for the
sale of the stock took place directly between the offeree and our
management.
Also in
2008, we issued 10,000,000 common shares to Adam Slazer for his services to the
Company as Founder and President. We relied on exemptions provided by
Section 4(2) of the Securities Act of 1933, as amended. We made this offering
based on the following facts: (1) the issuance was an isolated private
transaction which did not involve a public offering; (2) there was only one
offeree, (3) the offeree has agreed to the imposition of a restrictive legend on
the face of the stock certificate representing its shares, to the effect that it
will not resell the stock unless its shares are registered or an exemption from
registration is available; (4) the offeree was a sophisticated investor very
familiar with our company and stock-based transactions; (5) there were no
subsequent or contemporaneous public offerings of the stock; (6) the stock was
not broken down into smaller denominations; and (7) the negotiations for the
sale of the stock took place directly between the offeree and our
management.
During
2008, we issued 92,500 common shares to Guardian Registrar and Transfer, Inc.
for its services to the Company as registrar and transfer agent. We
relied on exemptions provided by Section 4(2) of the Securities Act of 1933, as
amended. We made this offering based on the following facts: (1) the issuance
was an isolated private transaction which did not involve a public offering; (2)
there was only one offeree, (3) the offeree has agreed to the imposition of a
restrictive legend on the face of the stock certificate representing its shares,
to the effect that it will not resell the stock unless its shares are registered
or an exemption from registration is available; (4) the offeree was a
sophisticated investor very familiar with our company and stock-based
transactions; (5) there were no subsequent or contemporaneous public offerings
of the stock; (6) the stock was not broken down into smaller denominations; and
(7) the negotiations for the sale of the stock took place directly between the
offeree and our management.
In 2008,
we issued 1,000,000 common shares to Greentree Financial Group, Inc. for
professional services in connection with preparing this registration statement,
EDGAR services, selecting an independent transfer agent and advisement on blue
sky issues. These shares are valued at $.10 per share, yielding an aggregate
expense of $100,000 that will be included in our financial statements during
fiscal 2008. We relied on exemptions provided by Section 4(2) of the Securities
Act of 1933, as amended. We made this offering based on the following facts: (1)
the issuance was an isolated private transaction which did not involve a public
offering; (2) there was only one offeree, (3) the offeree has agreed to the
imposition of a restrictive legend on the face of the stock certificate
representing its shares, to the effect that it will not resell the stock unless
its shares are registered or an exemption from registration is available; (4)
the offeree was a sophisticated investor very familiar with our company and
stock-based transactions; (5) there were no subsequent or contemporaneous public
offerings of the stock; (6) the stock was not broken down into smaller
denominations; and (7) the negotiations for the sale of the stock took place
directly between the offeree and our management.
In 2008,
we issued 100 shares of common stock to A.J. Glaser, Inc. in connection with a
plan of exchange whereby we exchanged 100 shares of our stock for 100 shares of
A.J. Glaser, Inc. common stock constituting a 100% interest in A.J. Glaser,
Inc. We entered into this exchange transaction in order to redomicile
our company to the State of North Carolina. We chose North Carolina
because it is where the majority of our operations are conducted. A
copy of the plan of exchange is attached hereto as Exhibit 10.3. We
relied on exemptions provided by Section 4(2) of the Securities Act of 1933, as
amended. We made this offering based on the following facts: (1) the issuance
was an isolated private transaction which did not involve a public offering; (2)
there was only one offeree, (3) the offeree has agreed to the imposition of a
restrictive legend on the face of the stock certificate representing its shares,
to the effect that it will not resell the stock unless its shares are registered
or an exemption from registration is available; (4) the offeree was a
sophisticated investor very familiar with our company and stock-based
transactions; (5) there were no subsequent or contemporaneous public offerings
of the stock; (6) the stock was not broken down into smaller denominations; and
(7) the negotiations for the sale of the stock took place directly between the
offeree and our management.
Purchases
of Equity Securities by the Small Business Issuer and Affiliated
Purchasers
None.
Transfer
Agent
ITEM 6. SELECTED FINANCIAL
DATA
Forward
Looking Statements
Certain
statements in this report, including statements of our expectations, intentions,
plans and beliefs, including those contained in or implied by "Management's
Discussion and Analysis" and the Notes to Consolidated Financial Statements, are
"forward-looking statements", within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), that are
subject to certain events, risks and uncertainties that may be outside our
control. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”,
“will”, and similar expressions identify forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made. We undertake no obligation to
update or revise any forward-looking statements. These forward-looking
statements include statements of management's plans and objectives for our
future operations and statements of future economic performance, information
regarding our expansion and possible results from expansion, our expected
growth, our capital budget and future capital requirements, the availability of
funds and our ability to meet future capital needs, the realization of our
deferred tax assets, and the assumptions described in this report underlying
such forward-looking statements. Actual results and developments could differ
materially from those expressed in or implied by such statements due to a number
of factors, including, without limitation, those described in the context of
such forward-looking statements, our expansion strategy, our ability to achieve
operating efficiencies, our dependence on distributors, capacity, suppliers,
industry pricing and industry trends, evolving industry standards, domestic and
international regulatory matters, general economic and business conditions, the
strength and financial resources of our competitors, our ability to find and
retain skilled personnel, the political and economic climate in which we conduct
operations and the risk factors described from time to time in our other
documents and reports filed with the Securities and Exchange Commission (the
"Commission"). Additional factors that could cause actual results to differ
materially from the forward-looking statements include, but are not limited to:
1) our ability to successfully develop, manufacture and deliver our magazines on
a timely basis and in the prescribed condition; 2) our ability to compete
effectively with other companies in the same industry; 3) our ability to raise
sufficient capital in order to effectuate our business plan; and 4) our ability
to retain our key executives.
Critical
Accounting Policies And Estimates
The
preparation of our financial statements requires us to make estimates and
assumptions that affect the reported amount 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 reported
period. A critical accounting policy is one that is both very important to the
portrayal of our financial condition and results, and requires management’s most
difficult, subjective or complex judgments. Typically, the circumstances that
make these judgments difficult, subjective and/or complex have to do with the
need to make estimates about the effect of matters that are inherently
uncertain.
In
February 2007, the FASB issued SFAS No. 159 (SFAS 159), “THE FAIR VALUE
OPTION FOR FINANCIAL ASSETS AND FINANCIAL LIABILITIES, INCLUDING AN AMENDMENT TO
SFAS 115. ” SFAS No. 159 allows the measurement of many financial
instruments and certain other assets and liabilities at fair value on an
instrument-by-instrument basis under a fair value option. In addition, SFAS 159
includes an amendment of SFAS No. 115, “Accounting
for Certain Investments in Debt and
Equity Securities
,” and applies to all entities with available-for-sale
and trading securities. SFAS 159 is effective for fiscal years that begin after
November 15, 2007. We are currently evaluating the impact, if any, of
adopting SFAS 159 on our financial statements.
In
December 2007, the FASB issued SFAS No. 160, “NONCONTROLLING INTERESTS IN
FINANCIAL STATEMENTS—AN AMENDMENT OF ARB NO.51”. SFAS 160 is intended to improve
the relevance, comparability, and transparency of the financial information that
a reporting entity provides in its financial statements by establishing
accounting and reporting standards that require; the ownership interests in
subsidiaries held by parties other than the parent and the amount of net income
attributable to the parent and to the noncontrolling interest be clearly
identified and presented on the face of the statement of income, changes in a
parent’s ownership interest while the parent retains its controlling financial
interest in its subsidiary be accounted for consistently, when a subsidiary is
deconsolidated, any retained noncontrolling equity investment in the former
subsidiary be initially measured at fair value, and entities to provide
sufficient disclosures to clearly identify and distinguish between the interests
of the parent and the interests of the noncontrolling owners. SFAS No.160
affects those entities that have an outstanding noncontrolling interest in one
or more subsidiaries or that deconsolidate a subsidiary. SFAS No. 160 is
effective for fiscal years, and interim periods within those fiscal years,
beginning on or after December 15, 2008. Early adoption is prohibited. The
adoption of this statement is not expected to have an effect our financial
statements.
Off-Balance
Sheet Arrangements
We have
not entered into 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 and would be considered material to
investors. Certain officers and directors of the Company have provided personal
guarantees to our various lenders as required for the extension of credit to the
Company.
Accounting
Policies Subject to Estimation and Judgment
Management’s
Discussion and Analysis of Financial Condition and Results of Operations are
based upon our financial statements, which have been prepared in accordance with
accounting principles generally accepted in the United States. When preparing
our financial statements, we make estimates and judgments that affect the
reported amounts on our balance sheets and income statements, and our related
disclosure about contingent assets and liabilities. We continually evaluate our
estimates, including those related to revenue, allowance for doubtful accounts,
reserves for income taxes, and litigation. We base our estimates on historical
experience and on various other assumptions, which we believe to be reasonable
in order to form the basis for making judgments about the carrying values of
assets and liabilities that are not readily ascertained from other sources.
Actual results may deviate from these estimates if alternative assumptions or
condition are used.
RESULTS
OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2008 and 2007
Revenues
The
Company had revenues of $42,424 for the year ended December 31, 2008 compared
with $61,127 during the year ended December 31, 2007. The decrease in revenue
can be attributed to higher traveling expenses and less client retention due to
the downturn in the economy.
Cost of
Sales
Cost of
revenue primarily includes supplement costs, weight loss products, maintaining
equipment, and purchasing new equipment. During the year ended December 31,
2008, we had cost of revenues of $8,687, or approximately 20.4% of revenues,
versus cost of revenues of $14,867, or approximately 24% of revenues. The cost
of revenue as a percentage of revenue decreased because revenues all together
were down.
Operating
Expenses
The
Company had operating expenses of $179,794 for the year ended December 31, 2008.
Our operating expenses for the year ended December 31, 2007 were $27,210. The
cost of going public and the cost of advertising to try to build business are
the causes of the increase in operating expenses.
Other
Expenses
The
Company had no other expenses for the year ended December 31, 2008 and
2007.
Income/Losses
We had a
net (loss) of $(146,057) and $19,050 for the years ended December 31, 2008 and
2007, respectively. The net (loss) in these periods was due primarily to
operational expenses, which were $179,794 and $27,210 for the years
ended December 31, 2008 and 2007, respectively. It is also a function of
revenues, cost of sales and other expenses as described in the upcoming
paragraphs below.
Impact of
Inflation
We
believe that inflation has had a negligible effect on operations since
inception. We believe that we can offset inflationary increases in the cost of
operations by increasing sales and improving operating
efficiencies.
Liquidity And Capital
Resources
We had
only $1,895 cash for the year ended December 31, 2008. We will be required to
raise capital on an ongoing basis. Most recently we raised funds from unrelated
accredited investors through private placements of common stock. In the future
we will potentially need to raise capital to sustain operations through this
channel.
Going
concern
As shown
in the accompanying consolidated financial statements, we have suffered
recurring losses from operation to date. We have a retained deficiency of
$121,512 as of December 31, 2008. These factors raise substantial doubt about
our ability to continue as a going concern.
Management's
plans in regard to this matter are to raise equity capital and seek strategic
relationships and alliances in order to increase revenues in an effort to
generate positive cash flow. Additionally, we must continue to rely upon equity
infusions from investors in order to improve liquidity and sustain operations.
The consolidated financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
ITEM 7A. QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The
response to this Item is set forth under the caption “Quantitative and
Qualitative Disclosures About Market Risk” in Item 7, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations,” and
is incorporated herein by reference.
Financial
Summary Information
Because
this is only a financial summary, it does not contain all the financial
information that may be important to you. It should be read in conjunction with
the consolidated financial statements and related notes presented in this
section.
Audited
Financial Summary Information for the Years Ended December 31, 2008 and
2007
Statements
of Operations
|
|
For
the year ended December 31, 2008
|
|
|
For
the year ended December 31, 2007
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
42,424
|
|
|
$
|
61,127
|
|
Cost
of Sales
|
|
$
|
(8,687)
|
|
|
$
|
(14,867)
|
|
Gross
profit
|
|
$
|
33,737
|
|
|
$
|
46,260
|
|
Operating
expenses
|
|
$
|
179,794
|
|
|
$
|
27,210
|
|
(Loss)
from operations
|
|
$
|
(146,057
|
)
|
|
$
|
19,050
|
|
Interest
expense
|
|
$
|
-
|
|
|
$
|
-
|
|
Net
(loss)
|
|
$
|
(146,057
|
)
|
|
$
|
19,050
|
|
Net
loss per common share
|
|
|
**
|
|
|
|
**
|
|
** Less
than $.01
Balance
Sheet
|
|
As
of December 31, 2008
|
|
|
|
|
|
Cash
|
|
$
|
1,895
|
|
Total
current assets
|
|
$
|
1,895
|
|
Other
assets
|
|
$
|
22,743
|
|
Total
Assets
|
|
$
|
24,638
|
|
Current
liabilities
|
|
$
|
10,998
|
|
Long
term liabilities
|
|
$
|
0
|
|
Stockholders’
equity
|
|
$
|
13,640
|
|
Total
liabilities and stockholders’ equity
|
|
$
|
24,638
|
|
CONTENTS
|
|
|
|
REPORT
OF INDEPENDENT REGISTERED ACCOUNTING FIRM
|
21
|
|
|
BALANCE
SHEET
|
22
|
|
|
STATEMENTS
OF OPERATIONS
|
23
|
|
|
STATEMENT
OF STOCKHOLDERS’ EQUITY
|
24
|
|
|
STATEMENTS
OF CASH FLOWS
|
25
|
|
|
NOTES
TO FINANCIAL STATEMENTS
|
26-33
|
REPORT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the
Board of Directors:
Exercise
For Life Systems, Inc. (FKA A.J. Glaser, Inc.)
I have
audited the balance sheet of Exercise For Life Systems, Inc. (FKA A.J. Glaser,
Inc.) as of December 31, 2008, and the related statements of operations,
stockholders’ equity, and cash flows for the two years ended December 31, 2008.
These financial statements are the responsibility of the Company’s management.
My responsibility is to express an opinion on these financial statements based
on our audits.
I
conducted my audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that I 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 was I engaged to perform, an audit of its internal control
over financial reporting. My audit 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, I 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. I believe that my audits provide a reasonable
basis for my opinion.
In my
opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Exercise For Life Systems, Inc.
(FKA A.J. Glaser, Inc.) as of December 31, 2008, and the results of its
operations and its cash flows for the two years ended December 31, 2008 in
conformity with U.S. generally accepted accounting principles.
The
accompanying financial statements have been prepared assuming the Company will
continue as a going concern. The Company has suffered a loss in 2008, has
negative working capital, and generated a negative internal cash flow from
operations in 2008 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 6. The financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
Traci J.
Anderson, CPA
Huntersville,
North Carolina
April 7,
2009
EXERCISE
FOR LIFE SYSTEMS, INC.
|
(FKA
A.J. GLASER, INC.)
|
|
AS
OF DECEMBER 31, 2008 AND 2007
|
|
|
|
|
|
|
|
ASSETS
|
|
12/31/2008
|
|
|
12/31/2007
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
Cash
|
|
$
|
1,895
|
|
|
$
|
316
|
|
TOTAL
CURRENT ASSETS
|
|
|
1,895
|
|
|
|
316
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS:
|
|
|
|
|
|
|
|
|
Machinery
and equipment
|
|
|
56,090
|
|
|
|
56,090
|
|
Accumulated
depreciation
|
|
|
(33,347
|
)
|
|
|
(22,131
|
)
|
TOTAL
FIXED ASSETS
|
|
|
22,743
|
|
|
|
33,959
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
24,638
|
|
|
$
|
34,275
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
10,998
|
|
|
$
|
8,730
|
|
TOTAL
CURRENT LIABILITIES
|
|
|
10,998
|
|
|
|
8,730
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Common
stock ($.0001 par value, 100,000,000 shares authorized; 11,517,050 shares
issued and outstanding)
|
|
|
1,152
|
|
|
|
1,000
|
|
Common
stock subscribed but not yet issued (10,000 shares)
|
|
|
1
|
|
|
|
-
|
|
Additional
paid in capital
|
|
|
133,999
|
|
|
|
-
|
|
Retained
deficit
|
|
|
(121,512
|
)
|
|
|
24,545
|
|
TOTAL
STOCKHOLDERS' EQUITY
|
|
|
13,640
|
|
|
|
25,545
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
24,638
|
|
|
$
|
34,275
|
|
EXERCISE
FOR LIFE SYSTEMS, INC.
|
(FKA
A.J. GLASER, INC.)
|
|
FOR
THE YEARS ENDED DECEMBER 31, 2008 AND 2007
|
|
|
|
|
|
|
|
|
|
For
The Year
|
|
|
|
Ended
December 31,
|
|
|
|
2008
|
|
|
2007
|
|
REVENUES:
|
|
|
|
|
|
|
Sales
|
|
$
|
42,424
|
|
|
$
|
61,127
|
|
Cost
of sales
|
|
|
(8,687
|
)
|
|
|
(14,867
|
)
|
Gross
profit
|
|
|
33,737
|
|
|
|
46,260
|
|
|
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
|
|
179,794
|
|
|
|
27,210
|
|
Total
expenses
|
|
|
179,794
|
|
|
|
27,210
|
|
|
|
|
|
|
|
|
|
|
(Loss)
from operations
|
|
$
|
(146,057
|
)
|
|
$
|
19,050
|
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
NET
(LOSS)
|
|
$
|
(146,057
|
)
|
|
$
|
19,050
|
|
|
|
|
|
|
|
|
|
|
Basic
and fully diluted net loss per common share:
|
|
$
|
(0.01
|
)
|
|
$
|
*
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding
|
|
|
10,758,525
|
|
|
|
10,000,000
|
|
|
|
|
|
|
|
|
|
|
*
less than $.01 per share.
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial
statements
EXERCISE
FOR LIFE SYSTEMS, INC.
|
(FKA
A.J. GLASER, INC.)
|
STATEMENT
OF STOCKHOLDERS' EQUITY
|
FOR
THE YEAR ENDED DECEMBER 31 , 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
|
|
|
Common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock
|
|
|
Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscribed
|
|
|
Subscribed
|
|
|
Additional
|
|
|
Retained
|
|
|
|
Common
Stock
|
|
|
Not
Issued
|
|
|
Not
Issued
|
|
|
Paid-in
|
|
|
Earnings
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
(Deficit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances,
January 1, 2007
|
|
|
10,000,000
|
|
|
$
|
1,000
|
|
|
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
5,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income for the year ended December 31, 2007
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
19,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances,
December 31, 2007
|
|
|
10,000,000
|
|
|
$
|
1,000
|
|
|
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
24,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
proceeds from the sale of common stock
|
|
|
424,550
|
|
|
|
42
|
|
|
|
10,000
|
|
|
|
1
|
|
|
|
24,858
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance
of common stock for services rendered
|
|
|
1,092,500
|
|
|
|
109
|
|
|
|
-
|
|
|
|
-
|
|
|
|
109,141
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss for the year ended December 31, 2008
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(146,057
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances,
December 31, 2008
|
|
|
11,517,050
|
|
|
$
|
1,152
|
|
|
|
10,000
|
|
|
$
|
1
|
|
|
$
|
133,999
|
|
|
$
|
(121,512
|
)
|
The
accompanying notes are an integral part of these financial
statements
EXERCISE
FOR LIFE SYSTEMS, INC.
|
(FKA
A.J. GLASER, INC.)
|
STATEMENTS
OF CASH FLOWS
|
FOR
THE YEARS ENDED DECEMBER 31, 2008 and 2007
|
|
|
|
|
|
|
|
|
|
2008
|
|
|
2007
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
Net
(loss)
|
|
$
|
(146,057
|
)
|
|
$
|
19,050
|
|
Adjustments
to reconcile net (loss) to net cash (used in) operations:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
11,216
|
|
|
|
11,106
|
|
Common
stock issued for fair value of services rendered
|
|
|
109,250
|
|
|
|
-
|
|
Increase
(decrease) in operating liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
2,270
|
|
|
|
1,746
|
|
NET
CASH (USED IN) OPERATING ACTIVITIES
|
|
|
(23,321
|
)
|
|
|
31,902
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Purchase
of equipment
|
|
|
-
|
|
|
|
(963
|
)
|
NET
CASH (USED IN) INVESTING ACTIVITIES
|
|
|
-
|
|
|
|
(963
|
)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Repayment
of shareholder loans
|
|
|
-
|
|
|
|
(31,260
|
)
|
Proceeds
from sale of common stock to investors
|
|
|
24,900
|
|
|
|
-
|
|
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
|
|
24,900
|
|
|
|
(31,260
|
)
|
|
|
|
|
|
|
|
|
|
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
1,579
|
|
|
|
(321
|
)
|
|
|
|
|
|
|
|
|
|
CASH
AND CASH EQUIVALENTS,
|
|
|
|
|
|
|
|
|
BEGINNING
OF THE YEAR
|
|
|
316
|
|
|
|
637
|
|
|
|
|
|
|
|
|
|
|
END
OF THE YEAR
|
|
$
|
1,895
|
|
|
$
|
316
|
|
The
accompanying notes are an integral part of these financial
statements
EXERCISE
FOR LIFE SYSTEMS, INC. (FKA A.J. GLASER, INC.)
NOTES TO
FINANCIAL STATEMENTS
For the
Years Ended December 31, 2008 and 2007
NOTE
1
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Business
Activity
Exercise
For Life Systems, Inc. (FKA A.J. Glaser, Inc.), (the “Company”) offers personal
fitness training services and products and is located in the Charlotte, North
Carolina area. The Company was incorporated in the State of North Carolina on
September 27, 2006.
On June
9, 2008, the Company filed an amendment to the Articles of Incorporation with
the Secretary of State of North Carolina to change its corporate name to
Exercise For Life Systems, Inc. (FKA A.J. Glaser, Inc.). This amendment also
changed the par value of the common stock from $1 per share to $.0001 per share
and increased the authorized common shares from 100 shares to 100,000,000
shares.
Basis of
Presentation
The
financial statements include the accounts of Exercise For Life Systems, Inc.
(FKA A.J. Glaser, 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.
Income
Taxes
Income
taxes are provided in accordance with Statement of Financial Accounting
Standards No. 109 (SFAS No. 109),
“Accounting for Income
Taxes.”
A deferred tax asset or liability is recorded for all temporary
differences between financial and tax reporting and net operating loss-carry
forwards.
Deferred
tax assets are reduced by a valuation allowance when, in the opinion of
management, it is more likely than not that, some portion or all of the deferred
tax asset will not be realized. Deferred tax assets and liabilities are adjusted
for the effect of changes in tax laws and rates on the date of
enactment.
Fair Value of Financial
Instruments
The
Company’s financial instruments are cash and accounts payable. The recorded
values of cash and payables approximate their fair values based on their
short-term nature.
Comprehensive Income
(Loss)
- The Company adopted Financial Accounting Standards Board
Statement of Financial Accounting Standards No. 130,
“Reporting Comprehensive
Income”
, 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 period covered in the financial
statements.
EXERCISE
FOR LIFE SYSTEMS, INC. (FKA A.J. GLASER, INC.)
NOTES TO
FINANCIAL STATEMENTS
For the
Years Ended December 31, 2008 and 2007
NOTE
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
Loss Per
Share - The Company reports loss per share in accordance with Statement of
Financial Accounting Standard (SFAS) No.128. This statement requires dual
presentation of basic and diluted earnings (loss) with a reconciliation of the
numerator and denominator of the loss per share computations. Basic earnings per
share amounts are based on the weighted average shares of common outstanding. If
applicable, diluted earnings per share would assume the conversion, exercise or
issuance of all potential common stock instruments such as options, warrants and
convertible securities, unless the effect is to reduce a loss or increase
earnings per share. There were no adjustments required to net loss for the
period presented in the computation of diluted earnings per share. There were no
common stock equivalents necessary for the computation of diluted loss per
share.
Long-Lived Assets -
In accordance with SFAS No. 144, the Company reviews and evaluates its
long-lived assets for impairment whenever events or changes in circumstances
indicate that their net book value may not be recoverable. When such factors and
circumstances exist, including those noted above, the Company compares the
assets’ carrying amounts against the estimated undiscounted cash flows to be
generated by those assets over their estimated useful lives. If the carrying
amounts are greater than the undiscounted cash flows, the fair values of those
assets are estimated by discounting the projected cash flows. Any excess of the
carrying amounts over the fair values are recorded as impairments in that fiscal
period.
Property and Equipment -
Property and equipment is stated at cost. Depreciation is provided by the
straight-line method over the estimated economic life of the property and
equipment remaining from five to seven years.
When
assets are sold or retired, their costs and accumulated deprecation are
eliminated from the accounts and any gain or loss resulting from their disposal
is included in the statement of operations.
The
Company recognizes an impairment loss on property and equipment when evidence,
such as the sum of expected future cash flows (undiscounted and without interest
charges), indicates that future operations will not produce sufficient revenue
to cover the related future costs, including depreciation, and when the carrying
amount of the asset cannot be realized through sale. Measurement of the
impairment loss is based on the fair value of the assets.
Revenue Recognition
–
Revenue is recognized when fitness training services are completed provided
collection from the client of the resulting receivable is probable. Revenue from
product sales is recognized when the products are shipped.
EXERCISE
FOR LIFE SYSTEMS, INC. (FKA A.J. GLASER, INC.)
NOTES TO
FINANCIAL STATEMENTS
For the
Years Ended December 31, 2008 and 2007
NOTE
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
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.
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.
Share-Based Payments -
The Company accounts for share-based compensation using the fair value
method of Financial Accounting Standard No. 123R. Common shares issued for
services rendered by a third party (both employees and non-employees) are
recorded at the fair value of the shares issued or services rendered, whichever
is more readily determinable. The Company accounts for options and warrants
under the same authoritative guidance using the Black-Scholes Option Pricing
Model.
Advertising
Costs
- Advertising costs are expensed as incurred. The Company does
not incur any direct-response advertising costs.
Recent Accounting
Pronouncements
- In September 2006, the FASB issued SFAS No. 157,
Fair Value Measurements
(“SFAS 157”). SFAS 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles, and expands
disclosures about fair value measurements. SFAS 157 is effective for
financial statements issued for fiscal years beginning after
November 15, 2007. However, in February 2008 the FASB Staff Position
No. 157-2 was issued, which delays the effective date of the requirements
of SFAS 157 as to nonfinancial assets and nonfinancial liabilities except for
items that are recognized or disclosed at fair value in the financial statements
on a recurring basis. The effective date has been deferred to fiscal years
beginning after November 15, 2008 for these nonfinancial assets and
liabilities. The Company’s adoption of SFAS 157 on January 1, 2008 did not
have a material impact on its financial position, results of operations or cash
flows during the year ended December 31, 2008. The Company does not expect
the deferred portion of the adoption of SFAS 157 to have a material impact on
its financial statements.
In
December 2007, the FASB issued SFAS No. 141 (revised 2007), “Business
Combinations” (“SFAS 141R”). SFAS 141R establishes principles and
requirements for how the acquirer in a business combination recognizes and
measures in its financial statements the fair value of identifiable assets
acquired, the liabilities assumed and any noncontrolling interest in the
acquiree at the acquisition date. SFAS 141R determines what information to
disclose to enable users of the financial statements to evaluate the nature and
financial effects of the business combination. SFAS 141R is effective for
fiscal years beginning after December 15, 2008. The Company is currently
evaluating the impact of adopting SFAS 141R on its results of operations and
financial condition.
EXERCISE
FOR LIFE SYSTEMS, INC. (FKA A.J. GLASER, INC.)
NOTES TO
FINANCIAL STATEMENTS
For the
Years Ended December 31, 2008 and 2007
NOTE
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
Recent Accounting
Pronouncements (cont.)
- In December 2007, the FASB issued SFAS
No. 160, “Noncontrolling Interests in Consolidated Financial Statements”
(“SFAS 160”), an amendment of Accounting Research Bulletin No. 51,
“Consolidated Financial Statements” (“ARB 51”). SFAS 160 establishes
accounting and reporting standards for the noncontrolling interest in a
subsidiary and for the deconsolidation of a subsidiary. Minority interests will
be recharacterized as noncontrolling interests and will be reported as a
component of equity separate from the parent’s equity, and purchases or sales of
equity interests that do not result in a change in control will be accounted for
as equity transactions. In addition, net income attributable to the
noncontrolling interest will be included in consolidated net income on the face
of the income statement and upon a loss of control, the interest sold, as well
as any interest retained, will be recorded at fair value with any gain or loss
recognized in earnings. This pronouncement is effective for fiscal years
beginning after December 15, 2008. The Company is currently evaluating the
impact of adopting SFAS 160 on its results of operations and financial condition
and plans to adopt it as required in the first quarter of fiscal
2009.
In
March 2008, the FASB issued SFAS No. 161, “Disclosures about
Derivative Instruments and Hedging Activities — an amendment to FASB Statement
No. 133.” SFAS No. 161 is intended to improve financial standards for
derivative instruments and hedging activities by requiring enhanced disclosures
to enable investors to better understand their effects on an entity’s financial
position, financial performance, and cash flows. Entities are required to
provide enhanced disclosures about: (a) how and why an entity uses
derivative instruments; (b) how derivative instruments and related hedged
items are accounted for under Statement 133 and its related interpretations; and
(c) how derivative instruments and related hedged items affect an entity’s
financial position, financial performance, and cash flows. It is effective for
financial statements issued for fiscal years beginning after November 15,
2008, with early adoption encouraged. The adoption of this statement, which is
expected to occur in the first quarter of 2009, is not expected to have a
material effect on the Company’s financial statements.
In May
2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted
Accounting Principles.” SFAS No. 162 identifies the sources of accounting
principles and the framework for selecting the principles to be used in the
preparation of financial statements of nongovernmental entities that are
presented in conformity with generally accepted accounting principles in the
United States. It is effective 60 days following the SEC’s approval of the
Public Company Accounting Oversight Board amendments to AU Section 411, “The
Meaning of Present Fairly in Conformity With Generally Accepted Accounting
Principles.” The adoption of this statement is not expected to have a material
effect on the Company’s financial statements.
EXERCISE FOR LIFE SYSTEMS, INC. (FKA
A.J. GLASER, INC.)
NOTES TO
FINANCIAL STATEMENTS
For the
Years Ended December 31, 2008 and 2007
NOTE
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
Recent Accounting
Pronouncements (cont.)
- In May 2008, the FASB issued SFAS
No. 163, “Accounting for Financial Guarantee Insurance Contracts — An
interpretation of FASB Statement No. 60.” SFAS No. 163 requires that
an insurance enterprise recognize a claim liability prior to an event of default
when there is evidence that credit deterioration has occurred in an insured
financial obligation. It also clarifies how Statement No. 60 applies to
financial guarantee insurance contracts, including the recognition and
measurement to be used to account for premium revenue and claim liabilities, and
requires expanded disclosures about financial guarantee insurance contracts. It
is effective for financial statements issued for fiscal years beginning after
December 15, 2008, except for some disclosures about the insurance
enterprise’s risk-management activities. SFAS No. 163 requires that
disclosures about the risk-management activities of the insurance enterprise be
effective for the first period beginning after issuance. Except for those
disclosures, earlier application is not permitted. The adoption of this
statement is not expected to have a material effect on the Company’s financial
statements.
NOTE
2
INCOME TAXES
At
December 31, 2008 the Company had federal and state net operating loss carry
forwards of approximately $10,000 that expire in various years through the year
2022.
Due to
operating losses, there is no provision for current federal or state income
taxes for the years ended December 31, 2008 and 2007.
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 December 31, 2008 consists of net operating loss
carry forwards calculated using federal and state effective tax rates equating
to approximately $4,000 less a valuation allowance in the amount of
approximately $4,000. 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 $4,000 and $-0- for the years ended
December 31, 2008 and 2007, respectively.
The
Company’s total deferred tax asset as of December 31, 2008 is as
follows:
Net operating loss carry
forwards $ 4,000
Valuation
allowance
(4,000)
Net
deferred tax
asset $ --
=======
EXERCISE
FOR LIFE SYSTEMS, INC. (FKA A.J. GLASER, INC.)
NOTES TO
FINANCIAL STATEMENTS
For the
Years Ended December 31, 2008 and 2007
NOTE
2
INCOME TAXES (CONT.)
The
reconciliation of income taxes computed at the federal and state statutory
income tax rate to total income taxes for the years ended December 31, 2008 and
2007 is as follows:
Income tax computed at the federal
statutory
rate
34%
Income
tax computed at the state statutory
rate 6%
Valuation
allowance
(40%)
Total
deferred tax
asset
0%
NOTE
3
CAPITAL STOCK
The
Company is authorized to issue 100,000,000 common shares at $.0001 par value per
share.
During
the year ended December 31, 2007, the Company enacted a one hundred thousand for
one forward stock split. The effects of this split are retroactively reflected
in the financial statements as of the beginning of the period
presented.
During
the year ended December 31, 2008, the Company issued 1,000,000 and 92,500
restricted common shares to unrelated service providers in exchange for
consulting services to be rendered during such year pursuant to a private
placement made under Regulation 504. These shares were priced at the private
placement price which approximated the fair value of the services rendered. The
Company recorded $109,250 in non-cash consulting expense during the year ended
December 31, 2008 for these shares.
During
the year ended December 31, 2008, the Company issued 424,550 common shares to
accredited investors in exchange for $24,900 in capital contributions pursuant
to a private placement made under Regulation 504.
NOTE
4
INCOME (LOSS) PER SHARE
Income
(loss) per share is computed by dividing the net income (loss) by the weighted
average number of common shares outstanding during the period. Basic and diluted
loss per share was the same for the years ended December 31, 2008 and
2007.
NOTE
5
LEASE COMMITMENTS AND RELATED PARTY
TRANSACTIONS
The
Company has an oral, month-to-month lease with its President. The lease is
gratuitous and consists of approximately 100 square feet of office space. The
effects of the fair value of rent of its headquarters that is provided by a
related party are immaterial to the financial statements taken as a
whole.
EXERCISE
FOR LIFE SYSTEMS, INC. (FKA A.J. GLASER, INC.)
NOTES TO
FINANCIAL STATEMENTS
For the
Years Ended December 31, 2008 and 2007
NOTE
6
SUPPLEMENTAL CASH FLOW
INFORMATION
Supplemental
disclosures of cash flow information for the years ended December 31, 2008 and
2007 are summarized as follows:
Cash paid
during the period for interest and income taxes:
2008
2007
Income
Taxes $ -- $ --
Interest $ -- $ --
NOTE
7
GOING CONCERN AND
UNCERTAINTY
The
Company has suffered a loss from operations in 2008. In addition, the Company
has generated a negative internal cash flow from its business operations in 2008
and has negative working capital at December 31, 2008. 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 increase 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 9. CHANGES IN AND
DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
None.
ITEM 9A. CONTROLS AND
PROCEDURES
We
maintain disclosure controls and procedures designed to ensure that information
required to be disclosed in reports filed under the Securities Exchange Act of
1934 (“Exchange Act”) is recorded, processed, summarized and reported within the
specified time periods. Our Chief Executive Officer and our Chief Financial
Officer (collectively, the “Certifying Officers”) are responsible for
maintaining our disclosure controls and procedures. The controls and procedures
established by us are designed to provide reasonable assurance that information
required to be disclosed by the issuer in the reports that it files or submits
under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified in the Commission’s rules and forms.
To
evaluate the effectiveness of our internal controls over financial reporting, we
have adopted the framework prescribed by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). We believe that this
framework will assist in the provision of reasonable assurance of the
effectiveness and efficiency of operations, the reliability of financial
reporting, and compliance with applicable laws and regulations. In
adopting the COSO framework, we maintain a control environment, perform
risk assessments, carry out control activities, emphasize quality information
and effective communication, and perform monitoring. In the
maintenance of a control environment, we are committed to integrity and ethical
values as well as to competence. We strive to assign authority and
responsibility in a manner that supports our internal controls, and we also
maintain human resources policies and procedures designed to support our
internal controls. Our risk assessments are designed to ensure the
achievement of company-wide and process-level objectives as well as to identify
and analyze risks while managing change. We believe that all of these
components together form a foundation for sound internal control through
directed leadership, shared values and a culture that emphasizes accountability
for control.
As of the
end of the period covered by this report, the Certifying Officers evaluated the
effectiveness of our disclosure controls and procedures. Based on the
evaluation, the Certifying Officers concluded that our disclosure controls and
procedures were effective to provide reasonable assurance that information
required to be disclosed by us in the reports that we file or submit under the
Exchange Act is recorded, processed, summarized and reported, within the time
periods specified in the applicable rules and forms, and that it is accumulated
and communicated to our management, including the Certifying Officers, as
appropriate to allow timely decisions regarding required
disclosure.
The
Certifying Officers have also concluded, based on our evaluation of our controls
and procedures that as of December 31, 2008, our internal controls over
financial reporting are effective and provide a reasonable assurance of
achieving their objective.
Due to
its inherent limitations, internal control over financial reporting may not
prevent or detect misstatements under all potential conditions. Therefore,
effective internal control over financial reporting provides only reasonable,
and not absolute, assurance that a restatement of our financial statements would
be prevented or detected.
This
annual report does not include an attestation report of our registered
public accounting firm regarding internal control over financial reporting.
Management's report was not subject to attestation by our registered public
accounting firm pursuant to temporary rules of the Securities and Exchange
Commission that permit us to provide only management's report in this
annual report.
Changes
in Internal Control Over Financial Reporting
There
were no changes in the our internal control over financial reporting that
occurred during the period covered by this report that have materially affected,
or are reasonably likely to materially affect, our internal control over
financial reporting.
This annual report does not include an
attestation report of our registered public accounting firm regarding
internal control over financial reporting. Management's report was not subject
to attestation by our registered public accounting firm pursuant to
temporary rules of the Securities and Exchange Commission that permit us to
provide only management's report in this annual report.
ITEM
9A(T).
CONTROLS
AND PROCEDURES
(a)
Conclusions
regarding disclosure controls and procedures
. Disclosure controls and
procedures are the Company’s controls and other procedures that are designed to
ensure that information required to be disclosed by the Company in the reports
that the Company files or submits under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the Securities and
Exchange Commission’s rules and forms. Disclosure controls and procedures
include, without limitation, controls and procedures designed to ensure that
information required to be disclosed by the Company in the reports that it files
under the Exchange Act is accumulated and communicated to the Company’s
management, including its Chief Executive Officer and Chief Financial Officer,
as appropriate to allow timely decisions regarding required disclosure.
Management is responsible for establishing and maintaining adequate internal
control over financial reporting.
Under the
supervision and with the participation of our management, including our
principal executive officer and principal financial officer, we conducted an
evaluation of our disclosure controls and procedures, as such term is defined
under Rule 13a-14(c) promulgated under the Exchange Act as of December 31, 2008,
and, based on their evaluation, as of the end of such period, the our disclosure
controls and procedures were effective as of the end of the period covered by
the Annual Report,
(b)
Management’s
Report On Internal Control Over Financial Reporting
. It is management’s
responsibilities to establish and maintain adequate internal controls over the
Company’s financial reporting. Internal control over financial reporting is
defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act as a
process designed by, or under the supervision of, the issuer’s principal
executive and principal financial officers and effected by the issuer’s
management and other personnel, 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 and includes those policies and procedures that:
• Pertain
to the maintenance of records that in reasonable detail accurately and fairly
reflect the transactions and dispositions of the assets of the issuer;
and
•
|
Provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles and that receipts and expenditures of the issuer are
being made only in accordance with authorizations of management of the
issuer; and
|
• Provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the issuer’s assets that could have a
material effect on the financial statements.
As of the
end of the period covered by the Annual Report, an evaluation was carried out
under the supervision and with the participation of our management, including
our Chief Executive Officer and Chief Financial Officer, of the effectiveness of
our internal control over financial reporting.
Management
assessed the effectiveness of our internal control over financial reporting as
of December 31, 2008. In making this assessment, management used the criteria
set forth by the Committee of Sponsoring Organizations of the Treadway
Commission in Internal Control-Integrated Framework.
Based on
that evaluation, our Chief Executive Officer and Chief Financial Officer have
concluded that, as of the end of such period, internal controls over financial
reporting were effective as of the end of the period covered by the
Report.
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. 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 preparation and presentation. Because of the inherent
limitations of internal control, there is a risk that material misstatements may
not be prevented or detected on a timely basis by internal control over
financial reporting. However, these inherent limitations are known features of
the financial reporting process. Therefore, it is possible to design into the
process safeguards to reduce, though not eliminate, this risk.
This
Annual Report does not include an attestation report of our registered public
accounting firm regarding internal control over financial reporting.
Management’s report was not subject to attestation by our registered public
accounting firm pursuant to temporary rules of the Securities and Exchange
Commission that permit us to provide only management’s report in this Annual
Report.
(c)
Changes in
internal control over financial reporting
. There were no changes in our
internal control over financial reporting identified in connection with the
evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that
occurred during our last fiscal quarter that have materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting.
ITEM 9B. OTHER
INFORMATION
None.
PART
III
Directors
and Executive Officers
Our
directors are elected at the annual meeting of shareholders and hold office for
one year and until their successors are elected and qualified. Our officers are
appointed by the Board of Directors and serve at the pleasure of the Board. We
have not entered into any employment agreements with our executive
officers.
NAME
|
AGE
|
POSITION
|
|
|
|
Adam
Slazer
|
39
|
Founder,
President, Chief Executive Officer, and
Director
|
Adam
Slazer, Founder, President, CEO, and Director
Since
1991, Adam Slazer has lived by his deep-rooted inner vision of exercise and
fitness. He created Exercise for Life Systems, Inc. to teach people
the practical side and tremendous benefits of exercise. With spirited
enthusiasm and absolute professionalism, he instructs and motivates a wide range
of clients to achieve and maintain their health and fitness
goals. His knowledge and passion for fitness have helped many people
make a lifetime commitment to their health and to themselves. Adam is
a certified personal trainer with a Bachelor of Science degree in physical
education from Southern Connecticut State University. In addition to
guiding women, men, athletes, and executives down the fitness road, his
experience includes working with the strength coach for the New York
Yankees.
None.
Legal
Proceedings.
No
officer, director, or persons nominated for such positions and no promoter or
significant employee has been involved in legal proceedings that would be
material to an evaluation of our management.
Audit
Committee
We do not
have a separately designated standing audit committee. Pursuant to Section
3(a)(58)(B) of the Exchange Act, the entire Board of Directors acts as an audit
committee for the purpose of overseeing the accounting and financial reporting
processes, and audits of our financial statements. The Commission recently
adopted new regulations relating to audit committee composition and functions,
including disclosure requirements relating to the presence of an "audit
committee financial expert" serving on its audit committee. In connection with
these new requirements, our Board of Directors examined the Commission's
definition of "audit committee financial expert" and concluded that we do not
currently have a person that qualifies as such an expert. We have had minimal
operations for the past two (2) years. Presently, there are only four (4)
directors serving on our Board, and us are not in a position at this time to
attract, retain and compensate additional directors in order to acquire a
director who qualifies as an "audit committee financial expert", but we intend
to retain an additional director who will qualify as such an expert, as soon as
reasonably practicable. While neither of our current directors meets the
qualifications of an "audit committee financial expert", each of our directors,
by virtue of his past employment experience, has considerable knowledge of
financial statements, finance, and accounting, and has significant employment
experience involving financial oversight responsibilities. Accordingly, we
believe that our current directors capably fulfill the duties and
responsibilities of an audit committee in the absence of such an
expert.
Code of
Ethics
We have
adopted a code of ethic (the "Code of Ethics") that applies to our principal
chief executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions. The Code of
Ethics is being designed with the intent to deter wrongdoing, and to promote the
following:
•
|
Honest
and ethical conduct, including the ethical handling of actual or apparent
conflicts of interest between personal and professional
relationships
|
•
|
Full,
fair, accurate, timely and understandable disclosure in reports and
documents that a small business issuer files with, or submits to, the
Commission and in other public communications made by the small business
issuer
|
• Compliance
with applicable governmental laws, rules and regulations
The
prompt internal reporting of violations of the code to an appropriate person or
persons identified in the code
• Accountability
for adherence to the code
Section
16(a) Beneficial Ownership Reporting Compliance
Under
Section 16(a) of the Exchange Act, all executive officers, directors, and each
person who is the beneficial owner of more than 10% of the common stock of a
company that files reports pursuant to Section 12 of the Exchange Act, are
required to report the ownership of such common stock, options, and stock
appreciation rights (other than certain cash-only rights) and any changes in
that ownership with the Commission. Specific due dates for these reports have
been established, and we are required to report, in this Form 10-K, any failure
to comply therewith during the fiscal year ended December 2008. We believe that
all of these filing requirements were satisfied by our executive officers,
directors and by the beneficial owners of more than 10% of our common stock. In
making this statement, hawse have relied solely on copies of any reporting forms
received by it, and upon any written representations received from reporting
persons that no Form 5 (Annual Statement of Changes in Beneficial Ownership) was
required to be filed under applicable rules of the Commission.
ITEM 11. EXECUTIVE
COMPENSATION
The
following table sets forth for the fiscal year ended December 31, 2008,
2007, 2006, the compensation awarded to, paid to, or earned by, our executive
officers:
SUMMARY COMPENSATION
TABLE
|
|
Name
and principal position
(a)
|
Year
(b)
|
Salary
($)
(c)
|
Bonus
($)
(d)
|
Stock
Awards ($)
(e)
|
Option
Awards ($)
(f)
|
Non-Equity
Incentive Plan Compensation ($)
(g)
|
Nonqualified
Deferred Compensation Earnings ($)
(h)
|
All
Other Compensation ($)
(i)
|
Total
($)
(j)
|
Adam
Slazer
|
2008
2007
2006
|
$4,800
$6,000
$8,000
|
-
|
-
|
-
|
-
|
-
|
-
|
$4,800
$6,000
$8,000
|
Outstanding Equity Awards At Fiscal
Year-End Table
None.
Option
Exercises And Stock Vested Table
None.
Pension
Benefits Table
None.
Nonqualified
Deferred Compensation Table
None.
All
Other Compensation Table
None.
Perquisites
Table
None.
Potential
Payments Upon Termination Or Change In Control Table
None.
Long-Term
Incentive Plan Awards
We do not
have any long-term incentive plans that provide compensation intended to serve
as incentive for performance to occur over a period longer than one fiscal year,
whether such performance is measured by reference to our financial performance,
our stock price, or any other measure.
Compensation
of Directors
The
directors did not receive any other compensation for serving as members of the
board of directors. The Board has not implemented a plan to award options. There
are no contractual arrangements with any member of the board of
directors.
We do not
intend to pay any additional compensation to our directors. As of the date
hereof, we have not entered into employment contracts with any of our officers
and we do not intend to enter into any employment contracts until such time as
it profitable to do so
ITEM 12. SECURITY OWNERSHIP
OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCK HOLDER
MATTERS.
As of March 12, 2009, we had 41 stockholders of record and 11,527,050
shares of our Common Stock outstanding. The following table sets forth as of
March 12, 2009, certain information with respect to the beneficial ownership of
Common Stock by (i) each of our Director, nominee and executive officer; (i)
each person who owns beneficially more than 5% of the common stock; and (iii)
all Directors, nominees and executive officers as a group. The percentage of
shares beneficially owned is based on there having been 11,527,050 shares of our
Common Stock outstanding as of March 11, 2009.
OFFICERS,
DIRECTORS AND BENEFICIAL OWNERS, AS OF MARCH 12, 2009
Name of Beneficial Owner
|
|
Number of Shares
of Common Stock
(1)
|
|
|
Percent of
Class
|
|
Adam
Slazer
|
|
|
10,000,000
|
|
|
|
86.7
|
%
|
Greentree
Financial Group, Inc.
|
|
|
1,000,000
|
|
|
|
8.67
|
%
|
All Directors
and executive officers of the Company as a group (1
person)
|
|
|
10,000,000
|
|
|
|
87.7
|
%
|
(1)
|
Based
on 11,527,050 issued and outstanding shares of common
stock.
|
Changes
in Control
None.
ITEM 13.
CERTAIN RELATIONSHIPS AND
RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
None.
ITEM 14. PRINCIPAL
ACCOUNTING FEES AND SERVICES
Fees
Billed For Audit and Non-Audit Services
The
following table represents the aggregate fees billed for professional audit
services rendered to the independent auditor, Traci J. Anderson, CPA
("Anderson") for our audit of the annual financial statements for the years
ended December 31, 2008 and 2007. Audit fees and other fees of auditors are
listed as follows:
Year Ended December 31
|
|
2008
|
|
2007
|
|
|
|
|
|
Anderson
|
|
|
|
|
|
|
|
Audit
Fees
(1)
|
|
$
|
3,500
|
|
|
$
|
3,500
|
(3)
|
Audit-Related
Fees
(4)
|
|
|
|
|
|
|
--
|
|
Tax
Fees
(5)
|
|
|
|
|
|
|
--
|
|
All
Other Fees
(6)
|
|
|
|
|
|
|
--
|
|
Total
Accounting Fees and Services
|
|
$
|
3,500
|
|
|
$
|
3,500
|
|
|
(1)
|
Audit Fees
. These are
fees for professional services for the audit of our annual financial
statements, and for the review of the financial statements included in our
filings on Forms 10-Q, and for services that are normally provided in
connection with statutory and regulatory filings or
engagements.
|
|
(2)
|
The
amounts shown for Anderson relate to services in connection with consents
and assistance with and review of documents filed with the Securities and
Exchange Commission.
|
|
(3)
|
Audit-Related Fees
.
These are fees for the assurance and related services reasonably related
to the performance of the audit or the review of our financial
statements.
|
|
(4)
|
Tax Fees
. These are
fees for professional services with respect to tax compliance, tax advice,
and tax planning.
|
|
(5)
|
All Other Fees
. These
are fees for permissible work that does not fall within any of the other
fee categories, i.e., Audit Fees, Audit-Related Fees, or Tax
Fees.
|
Pre-Approval
Policy for Audit and Non-Audit Services
We do not
have a standing audit committee, and the full Board performs all functions of an
audit committee, including the pre-approval of all audit and non-audit services
before we engage an accountant. All of the services rendered to us by Traci J.
Anderson CPA were pre-approved by our Board of Directors.
We are
presently working with its legal counsel to establish formal pre-approval
policies and procedures for future engagements of our accountants. The new
policies and procedures will be detailed as to the particular service, will
require that the Board or an audit committee thereof be informed of each
service, and will prohibit the delegation of pre-approval responsibilities to
management. It is currently anticipated that our new policy will provide (i) for
an annual pre-approval, by the Board or audit committee, of all audit,
audit-related and non-audit services proposed to be rendered by the independent
auditor for the fiscal year, as specifically described in the auditor's
engagement letter, and (ii) that additional engagements of the auditor, which
were not approved in the annual pre-approval process, and engagements that are
anticipated to exceed previously approved thresholds, will be presented on a
case-by-case basis, by the President or Controller, for pre-approval by the
Board or audit committee, before management engages the auditors for any such
purposes. The new policy and procedures may authorize the Board or audit
committee to delegate, to one or more of its members, the authority to
pre-approve certain permitted services,
provided that
the estimated
fee for any such service does not exceed a specified dollar amount (to be
determined). All pre-approvals shall be contingent on a finding, by the Board,
audit committee, or delegate, as the case may be, that the provision of the
proposed services is compatible with the maintenance of the auditor's
independence in the conduct of its auditing functions. In no event shall any
non-audit related service be approved that would result in the independent
auditor no longer being considered independent under the applicable rules and
regulations of the Securities and Exchange Commission.
(a)
On December 31, 2008, our Chief Executive Officer and Chief Financial Officer
made an evaluation of our disclosure controls and procedures. In our opinion,
the disclosure controls and procedures are adequate because the systems of
controls and procedures are designed to assure, among other items, that 1)
recorded transactions are valid; 2) valid transactions are recorded; and 3)
transactions are recorded in the proper period in a timely manner to produce
financial statements which present fairly the financial condition, results of
operations and cash flows for the respective periods being presented. Moreover,
the evaluation did not reveal any significant deficiencies or material
weaknesses in our disclosure controls and procedures.
(b)
There have been no significant changes in our internal controls or in other
factors that could significantly affect these controls since the last
evaluation.
PART
IV
1. The
following financial statements of Exercise for Life Systems, Inc.. are included
in Part II, Item 8:
Report of
Independent Registered Public Accounting Firm Balance Sheet at December 31,
2008
Statements
of Operations - for the years ended
December 31, 2008 and
2007
Statements
of Cash Flows - for the years ended December 31, 2008 and 2007
Statements of Stockholders’ Equity -
for the years ended
December 31, 2008 and
2007
Notes to Financial
Statements
2.
Exhibits
14.1 Code
of Ethics *
* Filed
previously.
None
SIGNATURES
In
accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934,
the registrant has caused this report to be signed on its behalf by the
undersigned majority of the Board of Directors, thereunto duly
authorized.
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Exercise
for Life Systems, Inc.
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By:
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/s/
Adam Slazer
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Adam Slazer
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President
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Exercise For Life Systems (GM) (USOTC:EFLS)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Exercise For Life Systems (GM) (USOTC:EFLS)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024