x
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 2010
|
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Nevada
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26-2477977
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|
(State of Incorporation)
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(I.R.S. Employer
Identification Number)
|
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Istanbul Trakya Serbest Bölgesi Atatürk Bulvari Ali Riza Efendi cd., A4 Blok Çatalca,
Istanbul Turkey
|
||
(Address of Principal Executive Offices, Including Zip Code)
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None
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Not Applicable
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(Title of each class)
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(Name of each exchange on which registered)
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Large Accelerated Filer
o
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Accelerated Filer
o
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Non-accelerated Filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
x
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TABLE OF CONTENTS
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||
Part I
|
||
Item 1.
|
Business.
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1 |
Item 1A.
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Risk Factors.
|
4 |
Item 2.
|
Properties.
|
9 |
Item 3.
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Legal Proceedings.
|
9 |
Item 4.
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Removed and Reserved.
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9 |
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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9 |
Item 6.
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Selected Financial Data.
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10 |
Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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11 |
Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk.
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17 |
Item 8.
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Financial Statements and Supplementary Data.
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17 |
Item 9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
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17 |
Item 9A.
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Controls and Procedures.
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18 |
Item 9B.
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Other Information.
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18 |
Part III
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||
Item 10.
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Directors, Executive Officers and Corporate Governance.
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19 |
Item 11.
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Executive Compensation.
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20 |
Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
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22 |
Item 13.
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Certain Relationships and Related Transactions, and Director Independence.
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22 |
Item 14.
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Principal Accounting Fees and Services.
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23 |
Part IV
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||
Item 15.
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Exhibits, Financial Statement Schedules.
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23 |
Signatures
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25 | |
-
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limited “public float” following the Share Exchange, in the hands of a small number of persons whose sales or lack of sales could result in positive or negative pricing pressure on the market price for our common stock;
|
-
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sales of our common stock; and
|
-
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our ability to execute our business plan.
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Fiscal Year Ending December 30, 2010
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||||
Quarter Ended
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High $
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Low $
|
||
March 31, 2010
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$0.000
|
$0.000
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||
June 30, 2010
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$0.388
|
$0.378
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||
September 30, 2010
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$0.286
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$0.263
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||
December 31, 2010
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$0.184
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$0.157
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- |
Machinery and equipment 2-6 years
|
- |
Motor vehicles 4 years
|
- |
Furniture, fixtures and office equipment 4-5 years
|
31/12/2010
|
31/12/2009
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|||||||
NET SALES
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3,577,881 | 2,029,074 | ||||||
COST OF SALES
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(2,502,037 | ) | (1,742,047 | ) | ||||
Gross profit
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1,075,844 | 287,027 | ||||||
MARKETING AND SELLING EXPENSE
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(504,329 | ) | (409,386 | ) | ||||
GENERAL AND ADMINISTRATIVE EXPENSES
|
(479,064 | ) | (140,121 | ) | ||||
Profit from operations
|
92,451 | (262,480 | ) | |||||
OTHER INCOME AND EXPENSES,net
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24,094 | 6,621 | ||||||
FINANCIAL INCOME AND EXPENSES, net
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(8,294 | ) | (8,741 | ) | ||||
Profit Loss before taxation and currency translation gain/(loss)
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60,063 | (264,600 | ) | |||||
TAXATION CHARGE
|
-- | |||||||
Taxation current
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-- | |||||||
Deferred
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-- | |||||||
CURRENCY TRANSLATION GAIN/(LOSS)
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60,063 | 2,422 | ||||||
Net income/(loss) for the year
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105,115 | (262,178 | ) | |||||
OTHER COMPREHENSIVE INCOME
|
-- | |||||||
Total comprehensive income
|
165,178 | (262,178 | ) |
31/12/2010
|
31/12/2009
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|||||||
NET SALES
|
3,577,881 | 2,029,074 | ||||||
COST OF SALES
|
(2,502,037 | ) | (1,742,047 | ) | ||||
As a percentage of sales
|
70 | % | 86 | % |
31/12/2010
|
31/12/2009
|
|||||||
MARKETING AND SELLING EXPENSE
|
(504,329 | ) | (409,386 | ) | ||||
As a percentage of revenue
|
14 | % | 20 | % | ||||
GENERAL AND ADMINISTRATIVE EXPENSES
|
(479,064 | ) | (140,121 | ) | ||||
As a percentage of revenue
|
13 | % | 7 | % |
31/12/2010
|
31/12/2009
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|||||||
Cash and cash equivalents
|
50,556 | 54,845 | ||||||
Trade receivables, net
|
705,225 | 274,802 | ||||||
Due from related parties
|
863,395 | 130,594 | ||||||
Due from Shareholders
|
50,585 | - | ||||||
Inventories
|
365,643 | 259,883 | ||||||
Other current assets
|
1,106 | 782 | ||||||
Total current assets
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2,036,510 | 720,906 | ||||||
NON CURRENT ASSETS
|
||||||||
Rights Net
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- | 14,976 | ||||||
Property, plant and equipment, net
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64,495 | 29,872 | ||||||
Intangible assets, net
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25,145 | - | ||||||
Other non current assets
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3,555 | 3,725 | ||||||
Total non current assets
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93,195 | 48,573 | ||||||
TOTAL ASSETS
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2,129,705 | 769,479 | ||||||
CURRENT LIABILITIES
|
||||||||
Borrowings
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2,351 | 11,282 | ||||||
Trade payables
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124,745 | 70,619 | ||||||
Due to shareholders
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47,257 | 75,584 | ||||||
Due to related parties
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1,145,992 | 670,976 | ||||||
Other current liabilities
|
73,233 | 120,619 | ||||||
Total current liabilities
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1,393,578 | 949,080 | ||||||
31/12/2010
|
31/12/2009
|
|||||||
Due from related parties
|
863,395 | 130,594 | ||||||
Due to related parties
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1,145,992 | 670,976 | ||||||
NET Amount
|
282,597 | 540,382 |
31/12/2010
|
31/12/2009
|
|||||||
Total current assets
|
2,036,510 | 720,906 |
31/12/2010
|
31/12/2009
|
|||||||
Due from related parties
|
863,395 | 130,594 | ||||||
Due to related parties
|
1,145,992 | 670,976 | ||||||
NET Amount
|
282,597 | 540,382 | ||||||
31/12/2010
|
31/12/2009
|
|||||||
Net income / (loss) for the period
|
165,178 | (262,178 | ) |
31/12/2010
|
31.12.2009 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|||||||||
Net income
|
165,178 | (262,178 | ) | ||||||
Adjustments to reconcile net income to net cash provided
|
-- | -- | |||||||
By operating activities:
|
-- | -- | |||||||
Depreciation and amortisation
|
17,516 | 17,133 | |||||||
Provision for employee benefit
|
801 | 727 | |||||||
Changes in operating assets and liabilities
|
|||||||||
Trade receivables, net
|
(430,428 | ) | (189,816 | ) | |||||
Due from shareholders
|
(773,544 | ) | 12,258 | ||||||
Due from related parties
|
203,282 | ||||||||
Inventories
|
(17,620 | ) | 22,993 | ||||||
Other current assets
|
98,467 | 3,896 | |||||||
Other non current assets
|
331 | (3,725 | ) | ||||||
Trade payables
|
54,126 | (272,925 | ) | ||||||
Due to shareholders
|
54,413 | 30,430 | |||||||
Due to related parties
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392,276 | 386,729 | |||||||
Other current liabilities
|
(47,386 | ) | 95,332 | ||||||
Share Purchase Advances
|
750,000 | ||||||||
Net cash generated from (used for) operating activities
|
67,197 | 44,136 |
Name
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Age
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Position(s) and Office(s) Held
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Andrew Brabin
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30
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Chief Financial Officer, and Director, Secretary and Treasurer
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Recep Tanisman
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57
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CEO and Director
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Ronald George Murphy
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45
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Officer and Director
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SUMMARY COMPENSATION TABLE
|
|||||||||
Name and
principal position
|
Year
|
Salary
($)
|
Bonus
($)
|
Stock
Awards
($)
|
Option
Awards
($)
|
Non-Equity
Incentive Plan
Compensation
($)
|
Non-qualified
Deferred
Compensation
Earnings ($)
|
All Other
Compensation
($)
|
Total
($)
|
Recep Tanisman,
CEO and director
|
2008
2009
2010
|
0
0
144,000
|
0
0
0
|
0
0
0
|
0
0
0
|
0
0
0
|
0
0
0
|
0
0
0
|
0
0
144,000
|
Ronald George Murphy,
Officer and Director
|
2008
2009
2010
|
0
0
144,000
|
0
0
0
|
0
0
0
|
0
0
0
|
0
0
0
|
0
0
0
|
0
0
0
|
0
0
144,000
|
Andrew Stuart Brabin,
CFO and Director
|
2008
2009
2010
|
0
0
144,000
|
0
0
0
|
0
0
0
|
0
0
0
|
0
0
0
|
0
0
0
|
0
0
0
|
0
0
144,000
|
DIRECTOR COMPENSATION
|
|||||||
Name
|
Fees Earned or
Paid in
Cash
($)
|
Stock
Awards
($)
|
Option Awards
($)
|
Non-Equity
Incentive
Plan
Compensation
($)
|
Non-Qualified
Deferred
Compensation
Earnings
($)
|
All
Other
Compensation
($)
|
Total
($)
|
Andrew Brabin
|
144,000
|
0
|
0
|
0
|
0
|
0
|
$144,000
|
Ronald Murphy
|
144,000
|
0
|
0
|
0
|
0
|
0
|
$144,000
|
Recep Tanisman
|
144,000
|
0
|
0
|
0
|
0
|
0
|
$144,000
|
Title of class
|
Name of beneficial owner
|
Amount of
beneficial ownership
|
Percent
of class*
|
Common
|
Andrew Brabin, UK
|
16,110,000
|
25.21%
|
Common
|
Recep Tanisman, Turkey
|
16,110,000
|
25.21%
|
Common
|
Ronald Murphy, USA
|
16,110,000
|
25.21%
|
Common
|
Total all executive officers and directors
|
48,330,000
|
75.63%
|
Common
|
5% Shareholders
|
None
|
None
|
Any of our directors or officers;
|
Any person proposed as a nominee for election as a director;
|
Any person who beneficially owns, directly or indirectly, shares carrying more than 10% of the voting rights attached to our outstanding shares of common stock;
|
Any of our promoters; and
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Any relative or spouse of any of the foregoing persons who has the same house address as such person.
|
Financial Statements for the
Year Ended December 31
|
Audit Services
|
Audit Related Fees
|
Tax Fees
|
Other Fees
|
2010
|
$16,600
|
$
|
$0
|
$0
|
2009
|
$0
|
$
|
$0
|
$0
|
Exhibit Number | Description |
3.1* | Amended and Restated Articles of Incorporation |
3.2
|
Bylaws of TouchIT Technologies, Inc. (incorporated by reference to Exhibit 3.2 of Form S-1 filed May 29, 2008)
|
10.1 |
Share Exchange Agreement (incorporated by reference to Exhibit 2.1of Form 8-K filed on May 12, 2010)
|
10.2 | The Credit Agreement (incorporated by reference to Exhibit 10.1 of Form 8-K filed February 23, 2011) |
21* | Subsidiaries of TouchIT Technologies, Inc. |
31.1* | Certification of Principal Executive Officer |
31.2* | Certification of Principal Financial Officer |
32.1* | Certification of Chief Executive Officer and Chief Financial Officer |
* Filed herewith |
By:
|
/s/ Andrew Brabin
|
Andrew Brabin, Chief Financial Officer
|
|
March 31, 2011
|
Signature
|
Title
|
Date
|
||
/s/ Recep Tanisman
|
Chief Executive Officer and Director (Principal Executive Officer)
|
March 31, 2011
|
||
Recep Tanisman
|
||||
/s/ Andrew Brabin
|
Chief Financial Officer, Corporate Secretary, Treasurer, and Director (Principal Financial and Accounting Officer)
|
March 31, 2011
|
||
Andrew Brabin
|
||||
/s/ Ronald George Murphy
|
Officer and Director
|
March 31, 2011
|
Notes
|
31.12.2010 | 31.12.2009 | ||||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents
|
5 | 3,274 | 2,204 | |||||||||
Trade receivables, net
|
6 | 35,288 | 5,408 | |||||||||
Due from related parties
|
7 | 863,395 | 130,594 | |||||||||
Due from shareholders
|
7 | 9,842 | -- | |||||||||
Inventories, net
|
8 | 191,417 | 93,435 | |||||||||
Other current assets
|
9 | 221 | 382 | |||||||||
Total current assets
|
1,103,437 | 232,023 | ||||||||||
Rights, net
|
10 | 13,312 | 14,976 | |||||||||
Total non-current assets
|
13,312 | 14,976 | ||||||||||
Total assets
|
1,116,749 | 246,999 |
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||
Trade payables
|
11 | 54,211 | 1,606 | |||||||||
Due to related parties
|
7 | 104,887 | 28,816 | |||||||||
Due to shareholders
|
7 | 22,147 | 19,924 | |||||||||
Other current liabilities
|
12 | 48,001 | 49,103 | |||||||||
Total current liabilities
|
229,246 | 99,449 | ||||||||||
Share purchase advances
|
1 | 750,000 | -- | |||||||||
Employee termination benefits
|
13 | -- | 1,041 | |||||||||
Total long-term liabilities
|
750,000 | 1,041 | ||||||||||
Shareholders' Equity
:
|
||||||||||||
Share capital
|
14 | 37,570 | 35,500 | |||||||||
Retained Earnings
|
111,009 | 53,743 | ||||||||||
Net income/ (loss) for the period
|
(11,076 | ) | 57,266 | |||||||||
Total shareholders’ equity
|
137,503 | 146,509 | ||||||||||
Total liabilities and shareholders’ equity
|
1,116,749 | 246,999 |
Notes
|
31.12.2010 | 31.12.2009 | ||||||||||
Sales
|
15 | 1,307,420 | 777,013 | |||||||||
Cost of sales
|
16 | (929,350 | ) | (649,708 | ) | |||||||
Gross profit
|
378,070 | 127,305 | ||||||||||
Marketing and selling expenses
|
17 | (154,275 | ) | (24,562 | ) | |||||||
General and administrative expenses
|
18 | (289,285 | ) | (55,690 | ) | |||||||
Total operating income
|
(65,490 | ) | 47,053 | |||||||||
Financial income / (expense), net
|
20 | (3,043 | ) | (2,172 | ) | |||||||
Other income / (expense), net
|
19 | 15,652 | 12,077 | |||||||||
Profit before provision for taxation
|
(52,881 | ) | 56,958 | |||||||||
Provision for taxation
|
||||||||||||
- Current
|
||||||||||||
- Deferred
|
||||||||||||
Net income for the period
|
(52,881 | ) | 56,958 | |||||||||
Other comprehensive income
|
||||||||||||
Currency translation differences
|
41,805 | 308 | ||||||||||
Total comprehensive income for the period
|
(11,076 | ) | 57,266 | |||||||||
31.12.2010 | 31.12.2009 | |||||||
Cash flow from operating activities
|
||||||||
Net income for the period
|
(11,076 | ) | 57,266 | |||||
Adjustments to reconcile net profit to net
cash provided by operating activities:
|
||||||||
Provision for employee termination benefit
|
(1,041 | ) | 727 | |||||
Depreciation
|
1,664 | 8,493 | ||||||
Net income adjusted to non-cash items
|
(10,453 | ) | 66,486 | |||||
Changes in operating assets and liabilities:
|
||||||||
Change in trade receivables
|
(29,880 | ) | (4,124 | ) | ||||
Change in due from related parties
|
(732,801 | ) | 203,282 | |||||
Change in due from shareholders
|
(9,842 | ) | 12,258 | |||||
Change in inventories
|
(97,982 | ) | (23,205 | ) | ||||
Change in other current assets
|
161 | 321 | ||||||
Change in trade payables
|
52,605 | (331,716 | ) | |||||
Change in due to related parties
|
84,963 | 19,924 | ||||||
Change in due to shareholders
|
(6,669 | ) | 14,847 | |||||
Change in other current liabilities
|
(1,102 | ) | 29,475 | |||||
Net cash provided from operating activities
|
(751,000 | ) | (12,452 | ) | ||||
Cash flows from investing activities:
|
||||||||
Change in share purchase advances
|
750,000 | -- | ||||||
Net cash provided from investing activities
|
(1,000 | ) | (12,452 | ) | ||||
Cash flows from financing activities:
|
||||||||
Increase of share capital
|
2,070 | -- | ||||||
Cash flows provided by financing activities
|
2,070 | -- | ||||||
Net decrease in cash and cash equivalents
|
1,070 | (12,452 | ) | |||||
Cash and cash equivalents at the beginning of the year
|
2,204 | 14,656 | ||||||
Cash and cash equivalents at the end of the period
|
3,274 | 2,204 | ||||||
Share capital
|
Retained Earnings
|
Net income for the year / period
|
Total Shareholders' Equity
|
|||||||||||||
Balances at 31 December 2008
|
35,500 | 7,749 | 45,994 | 89,243 | ||||||||||||
Transfer to retained earnings
|
-- | 45,994 | (45,994 | ) | -- | |||||||||||
Net income for the year
|
-- | -- | 57,266 | 57,266 | ||||||||||||
Balances at 31 December 2009
|
35,500 | 53,743 | 57,266 | 146,509 | ||||||||||||
Share capital increase
|
2,070 | -- | -- | 2,070 | ||||||||||||
Transfer to retained earnings
|
-- | 57,266 | (57,266 | ) | -- | |||||||||||
Net income for the year
|
-- | -- | (11,076 | ) | (11,076 | ) | ||||||||||
Balances at 31 December 2010
|
37,570 | 111,009 | (11,076 | ) | 137,503 |
31.12.2010 | 31.12.2009 | |||||||
USD
|
1.5460 | 1.5057 | ||||||
EURO
|
2.0491 | 2.1603 | ||||||
GBP
|
2.3886 | 2.3892 | ||||||
Average USD
|
1.4991 | 1.5454 |
31.12.2010 | 31.12.2009 | |||||||
Cash in hand
|
695 | -- | ||||||
Banks
|
2,579 | 2,204 | ||||||
0 | ||||||||
Total
|
3,274 | 2,204 |
31.12.2010 | 31.12.2009 | |||||||
Trade receivables
|
54,829 | 5,408 | ||||||
Provision for doubtful receivables (-)
|
(19,541 | ) | -- | |||||
Total
|
35,288 | 5,408 |
Due from related parties
|
31.12.2010 | 31.12.2009 | ||||||
Touch IT Technologies Koll. Şir. Ronald George Murphy ve Ortakları
|
587,308 | 25,528 | ||||||
Emko Yazı Tahtaları ve Eğitim Gereçleri A.Ş.
|
276,087 | 105,066 | ||||||
Total
|
863,395 | 130,594 |
Due from shareholders
|
31.12.2010 | 31.12.2009 | ||||||
Andrew Stuart Brabin
|
9,842 | -- | ||||||
Total
|
9,842 | -- |
Due to related parties
|
31.12.2010 | 31.12.2009 | ||||||
Kamron Inc
|
50,467 | -- | ||||||
Emko Yazı Tahtaları ve Eğitim Gereçleri A.Ş.
|
-- | 28,816 | ||||||
ASB Trading
|
54,420 | |||||||
Total
|
104,887 | 28,816 |
Due to shareholders
|
31.12.2010 | 31.12.2009 | ||||||
Ali Rıza Tanışman
|
22,147 | 19,924 | ||||||
Total
|
22,147 | 19,924 |
Major purchases from related parties
|
31.12.2010 | 31.12.2009 | ||||||
Tou
ch It Technologies Koll. Şir. Ronald George Murphy ve Ortakları
|
166,309 | 179,035 | ||||||
Emko Yazı Tahtaları ve Eğitim Gereçleri A.Ş.
|
-- | 15,734 | ||||||
Total
|
166,309 | 194,769 | ||||||
Major sales to related parties
|
31.12.2010 | 31.12.2009 | ||||||
Emko Yazı Tahtaları ve Eğitim Gereçler
i A.Ş.
|
660,520 | 280,000 | ||||||
Touch IT Technologies Koll. Şir. Ronald George Murphy ve Ortakları
|
255,201 | 156,524 | ||||||
Total
|
915,721 | 436,524 |
Service provided
|
31.12.2010 | 31.12.2009 | ||||||
Kamron Inc.
|
115,101 | -- | ||||||
Andrew Stuart Brabin
|
103,527 | -- | ||||||
Total
|
218,628 | -- |
31.12.2010 | 31.12.2009 | |||||||
Advances given for purchases
|
82,156 | 45,324 | ||||||
Trade goods
|
109,261 | 48,111 | ||||||
Total
|
191,417 | 93,435 |
31.12.2010 | 31.12.2009 | |||||||
License right
|
35,500 | 35,500 | ||||||
Depreciation allowance
|
(22,188 | ) | (20,524 | ) | ||||
Total
|
13,312 | 14,976 |
31.12.2010 | 31.12.2009 | |||||||
Trade payables
|
54,211 | 1,606 | ||||||
Total
|
54,211 | 1,606 |
31.12.2010 | 31.12.2009 | |||||||
Taxes and funds payable
|
2,471 | -- | ||||||
Social security withholdings payable
|
1,439 | 929 | ||||||
Accrued expenses
|
1,250 | -- | ||||||
Advances received
|
40,731 | 48,174 | ||||||
Due to personnel
|
2,110 | |||||||
Total
|
48,001 | 49,103 |
31.12.2010
|
31.12.2009
|
||||||
Shareholding
|
Shareholding
|
||||||
Amount
|
%
|
Amount
|
%
|
||||
Andrew Stuart Brabin
|
27,050
|
72
|
26,625
|
75
|
|||
Ali Rıza Tanışman
|
1,503
|
4
|
8,875
|
25
|
|||
Recep Tanışman
|
7,515
|
20
|
--
|
--
|
|||
Cansın Tanışman
|
751
|
2
|
--
|
--
|
|||
Volkan Tanışman
|
751
|
2
|
--
|
--
|
|||
37,570
|
100
|
35,500
|
100
|
31.12.2010 | 31.12.2009 | |||||||
Electronic set
|
1,023,279 | 383,466 | ||||||
Remote Control for classroom
|
153,335 | 6,297 | ||||||
EBEAM whiteboard and devices
|
-- | 194,890 | ||||||
Touch IT board
|
62,288 | -- | ||||||
Triumph board
|
-- | 173,606 | ||||||
Writing pad
|
47,745 | 5,067 | ||||||
Others
|
20,773 | 14,392 | ||||||
Returns (-)
|
-- | (705 | ) | |||||
Total
|
1,307,420 | 777,013 |
31.12.2010 | 31.12.2009 | |||||||
Beginning inventory of trade goods
|
48,111 | 70,230 | ||||||
Purchases
|
990,500 | 627,589 | ||||||
Ending inventory of trade goods (-)
|
(109,261 | ) | (48,111 | ) | ||||
Total
|
929,350 | 649,708 |
31.12.2010 | 31.12.2009 | |||||||
Shareholders expenses (*)
|
105,773 | 10,834 | ||||||
Export expenses
|
32,858 | 12,657 | ||||||
Web site design expenses
|
8,587 | -- | ||||||
Other expenses
|
7,057 | 1,071 | ||||||
Total
|
154,275 | 24,562 |
31.12.2010 | 31.12.2009 | |||||||
Consultancy expenses (*)
|
209,806 | 2,291 | ||||||
Salaries
|
59,176 | 29,378 | ||||||
Rental expenses
|
12,283 | 12,930 | ||||||
Depreciation expenses
|
1,664 | 8,493 | ||||||
Other expenses
|
6,356 | 2,598 | ||||||
Total
|
289,285 | 55,690 |
31.12.2010 | 31.12.2009 | |||||||
Other income
|
2,508 | 1,023 | ||||||
Insurance compensation income
|
8,301 | -- | ||||||
Provision for doubtful receivables
|
(20,152 | ) | -- | |||||
Consultancy income
|
25,000 | 16,735 | ||||||
Other expense
|
(5 | ) | (5,681 | ) | ||||
Total
|
15,652 | 12,077 |
31.12.2010 | 31.12.2009 | |||||||
Bank charges
|
(3,043 | ) | (2,172 | ) | ||||
Total
|
(3,043 | ) | (2,172 | ) |
31 December2010
|
Financial assets
at amortized cost
|
Loans and
receivables
|
Financial liabilities
at amortized cost
|
Carrying
value
|
Fair
value
|
Note
|
Financial assets
|
||||||
Cash and cash equivalents
|
--
|
3,274
|
--
|
3,274
|
3,274
|
5
|
Trade receivables (including related parties)
|
--
|
898,683
|
--
|
898,683
|
898,683
|
6-7
|
Financial liabilities
|
||||||
Trade payables (including related parties)
|
--
|
159,098
|
--
|
159,098
|
159,098
|
7-11
|
31 December 2009
|
Financial assets
at amortized cost
|
Loans and
receivables
|
Financial liabilities
at amortized cost
|
Carrying
value
|
Fair
value
|
Note
|
Financial assets
|
||||||
Cash and cash equivalents
|
--
|
2,204
|
--
|
2,204
|
2,204
|
5
|
Trade receivables (including related parties)
|
--
|
136,002
|
--
|
136,002
|
136,002
|
6-7
|
Financial liabilities
|
||||||
Trade payables (including related parties)
|
--
|
30,442
|
--
|
30,442
|
30,442
|
7-11
|
31.12.2010
|
31.12.2009
|
||||
F/C
|
Foreign
|
TRY
|
Foreign
|
TRY
|
|
Type
|
Currency
|
Currency
|
|||
Banks
|
USD
|
2,138
|
3,306
|
2,157
|
3,248
|
EUR
|
19
|
38
|
|||
Due from related parties
|
USD
|
587,308
|
907,979
|
123,953
|
186,636
|
Trade receivables
|
USD
|
34,731
|
53,694
|
3,843
|
5,786
|
Advances given
|
USD
|
72,544
|
112,153
|
45,324
|
68,244
|
(Inventories)
|
|||||
Trade payables
|
USD
|
(43,480)
|
(67,220)
|
--
|
--
|
Advances received
|
USD
|
(40,731)
|
(62,970)
|
(48,173)
|
(72,534)
|
(Other current liabilities)
|
|||||
Due to related parties
|
USD
|
(104,887)
|
(162,155)
|
--
|
--
|
Share purchase advances
|
USD
|
(750,000)
|
(1,159,500)
|
--
|
--
|
Net F/C Assets and Liabilities
|
(374,675)
|
191,380
|
Current
|
Noncurrent
|
Total
|
||||||||||
31 December 2010
|
||||||||||||
Trade payables (including related parties)
|
159,098 | -- | 159,098 | |||||||||
31 December 2009
|
||||||||||||
Trade payables (including related parties)
|
21,530 | -- | 21,530 |
Notes
|
31.12.2010 | 31.12.2009 | ||||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents
|
5 | 47,282 | 52,641 | |||||||||
Trade receivables, net
|
6 | 669,937 | 269,394 | |||||||||
Due from shareholders
|
7 | 40,743 | -- | |||||||||
Inventories, net
|
8 | 174,226 | 166,448 | |||||||||
Other current assets
|
9 | 885 | 400 | |||||||||
Total current assets
|
933,073 | 488,883 | ||||||||||
Property and equipment, net
|
10 | 64,495 | 29,872 | |||||||||
Intangible assets, net
|
11 | 11,833 | -- | |||||||||
Other non-current assets
|
12 | 3,555 | 3,725 | |||||||||
Total non-current assets
|
79,883 | 33,597 | ||||||||||
Total assets
|
1,012,956 | 522,480 |
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||
Short-term bank loans
|
13 | 2,351 | 11,282 | |||||||||
Trade payables
|
14 | 58,150 | 69,013 | |||||||||
Due to shareholders
|
7 | 37,494 | 55,660 | |||||||||
Due to related parties
|
7 | 1,041,105 | 642,160 | |||||||||
Other current liabilities
|
15 | 25,232 | 71,516 | |||||||||
Total current liabilities
|
1,164,332 | 849,631 | ||||||||||
Long-term bank loans
|
13 | -- | 2,321 | |||||||||
Employee termination benefits
|
16 | 1,842 | -- | |||||||||
Total long-term liabilities
|
1,842 | 2,321 | ||||||||||
Shareholders' Equity
:
|
||||||||||||
Share capital
|
17 | 90,000 | 90,000 | |||||||||
Accumulated deficit
|
(419,472 | ) | (100,028 | ) | ||||||||
Net profit/(loss) for the period
|
176,254 | (319,444 | ) | |||||||||
Total shareholders’ equity
|
(153,218 | ) | (329,472 | ) | ||||||||
Total liabilities and shareholders’ equity
|
1,012,956 | 522,480 |
Notes
|
31.12.2010 | 31.12.2009 | ||||||||||
Sales
|
18 | 2,270,461 | 1,252,061 | |||||||||
Cost of sales
|
19 | (1,572,687 | ) | (1,092,339 | ) | |||||||
Gross profit
|
697,774 | 159,722 | ||||||||||
Marketing and selling expenses
|
20 | (350,054 | ) | (384,824 | ) | |||||||
General and administrative expenses
|
21 | (189,779 | ) | (84,431 | ) | |||||||
Total operating profit
|
157,941 | (309,533 | ) | |||||||||
Financial income / (expense), net
|
23 | (5,252 | ) | (6,569 | ) | |||||||
Other income / (expense), net
|
22 | (39,745 | ) | (5,456 | ) | |||||||
Profit before provision for taxation
|
112,944 | (321,558 | ) | |||||||||
Provision for taxation
|
||||||||||||
- Current
|
-- | -- | ||||||||||
- Deferred
|
-- | -- | ||||||||||
Net profit for the period
|
112,944 | (321,558 | ) | |||||||||
Other comprehensive income
|
||||||||||||
Currency translation differences
|
63,310 | 2,114 | ||||||||||
Total comprehensive income for the period
|
176,254 | (319,444 | ) | |||||||||
31.12.2010 | 31.12.2009 | |||||||
Cash flow from operating activities
|
||||||||
Net profit for the period
|
176,254 | (319,444 | ) | |||||
Adjustments to reconcile net profit to net
cash provided by operating activities:
|
||||||||
Depreciation
|
15,852 | 8,640 | ||||||
Provision for employee termination benefit
|
1,842 | |||||||
Net profit adjusted to non-cash items
|
193,948 | (310,804 | ) | |||||
Changes in operating assets and liabilities:
|
||||||||
Change in trade receivables
|
(400,548 | ) | (185,692 | ) | ||||
Change in due from shareholders
|
(40,743 | ) | -- | |||||
Change in inventories
|
(7,778 | ) | 46,198 | |||||
Change in other current assets
|
(485 | ) | 3,575 | |||||
Change in other non current assets
|
170 | (3,725 | ) | |||||
Change in trade payables
|
(10,863 | ) | 58,791 | |||||
Change in due to shareholders
|
(18,166 | ) | 15,583 | |||||
Change in due to related parties
|
398,945 | 366,805 | ||||||
Change in other current liabilities
|
(46,284 | ) | 65,857 | |||||
Net cash used for operating activities
|
68,196 | 56,588 | ||||||
Cash flows from investing activities:
|
||||||||
Purchased of property and equipment and intangibles
|
(62,304 | ) | (17,324 | ) | ||||
Net cash outflows from investing activities
|
5,892 | 39,264 | ||||||
Cash flows from financing activities:
|
||||||||
Increase in short-term borrowings
|
(8,930 | ) | 6,815 | |||||
Decrease in long-term borrowings
|
(2,321 | ) | (2,797 | ) | ||||
Cash outflows generated by financing activities
|
(11,251 | ) | 4,018 | |||||
Net decrease in cash and cash equivalents
|
(5,359 | ) | 43,282 | |||||
Cash and cash equivalents at the beginning of the year
|
52,641 | 9,359 | ||||||
Cash and cash equivalents at the end of the period
|
47,282 | 52,641 | ||||||
Share
capital
|
Accumulated
deficit
|
Net (loss) /profit for the year/ period
|
Total Shareholders' Equity
|
|||||||||||||
Opening balance as of 1 January 2009
|
90,000 | -- | (100,028 | ) | (10,028 | ) | ||||||||||
Transfer to accumulated deficit
|
(100,028 | ) | 100,028 | ) | -- | |||||||||||
Loss for the year 2009
|
-- | -- | (319,444 | ) | (319,444 | ) | ||||||||||
Balances at 31 December 2009
|
90,000 | (100,028 | ) | (319,444 | ) | (329,472 | ) | |||||||||
Transfer to accumulated deficit
|
-- | (319,444 | ) | 319,444 | -- | |||||||||||
Net profit for the year 2010
|
-- | -- | 176,254 | 176,254 | ||||||||||||
Balances at 31 December 2010
|
90,000 | (419,472 | ) | 176,254 | (153,218 | ) |
Machinery and equipments
|
2-6 years
|
Motor vehicles
|
4 years
|
Furniture, fixtures and office equipments
|
4-5 years
|
31.12.2010
|
31.12.2009
|
|
USD
|
1.5460
|
1.5057
|
EURO
|
2.0491
|
2.1603
|
GBP
|
2.3886
|
2.3892
|
Average USD
|
1.4991
|
1.5454
|
31.12.2010 | 31.12.2009 | |||||||
Cash in hand
|
1,196 | 9,621 | ||||||
Banks
|
46,086 | 43,020 | ||||||
Total
|
47,282 | 52,641 |
31.12.2010 | 31.12.2009 | |||||||
PROFORMANCE PRODUCTS
|
526,077 | -- | ||||||
TRIUMPH BOARD S.R.O
|
-- | 204,913 | ||||||
Others ( less than USD 60,000)
|
143,860 | 64,481 | ||||||
Total
|
669,937 | 269,394 |
Due from shareholders
|
31.12.2010 | 31.12.2009 | ||||||
Recep Tanışman
|
40,743 | -- | ||||||
Total
|
40,743 | -- |
Due to related parties
|
31.12.2010 | 31.12.2009 | ||||||
Emko Emaye ve Yazı Tahtaları ve Eğitim Gereçleri A.Ş.
|
417,709 | 570,532 | ||||||
Touch IT Educations Technologies Dış. Tic. Koll. Şirketi
|
587,308 | 25,529 | ||||||
Kamron Inc
|
36,088 | 46,099 | ||||||
Total
|
1,041,105 | 642,160 |
Due to shareholders
|
31.12.2010 | 31.12.2009 | ||||||
Ali Rıza Tanışman
|
22,549 | 22,657 | ||||||
Andrew Stuart Brabin
|
14,566 | -- | ||||||
Recep Tanışman
|
379 | -- | ||||||
Total
|
37,494 | 55,660 |
Major purchases from related parties
|
||||||||
Trade goods
|
31.12.2010 | 31.12.2009 | ||||||
Emko Emaye ve Yazı Tahtaları ve Eğitim Gereçleri A.Ş.
|
568,439 | 447,898 | ||||||
Touch IT Educations T
echnologies Dış. Tic. Koll. Şirketi
|
181,256 | 156,524 | ||||||
Total
|
749,695 | 604,422 |
Major sales from related parties
|
||||||||
Trade goods
|
31.12.2010 | 31.12.2009 | ||||||
Emko Emaye ve Yazı Tahtaları ve Eğitim Gereçleri A.Ş.
|
3,507 | -- | ||||||
Touch IT Educations Technologies Dış. Tic. Koll. Şirketi
|
167,270 | 179,035 | ||||||
Total
|
170,777 | 179,035 |
Services provided
|
||||||||
31.12.2010 | 31.12.2009 | |||||||
Kamron Inc.
|
55,364 | 88,181 | ||||||
Emko Emaye ve Ya
zı Tahtaları ve Eğitim Gereçleri A.Ş.
|
-- | 21,267 | ||||||
Total
|
55,364 | 109,448 |
31.12.2010 | 31.12.2009 | |||||||
Raw material and supplies
|
196,971 | 120,691 | ||||||
Finished goods
|
1,534 | 16,045 | ||||||
Advances given for purchases
|
11,232 | 22,632 | ||||||
Other inventories
|
2,738 | 7,080 | ||||||
Provision for damaged and slow moving stock (-)
|
(38,249 | ) | -- | |||||
Total
|
174,226 | 166,448 |
31.12.2010 | 31.12.2009 | |||||||
Deposits and Guarantees given
|
400 | 400 | ||||||
Other
|
485 | -- | ||||||
Total
|
885 | 400 |
1 January 2009
|
Additions
|
31 December 2009
|
Additions
|
31 December 2010
|
||||||||||||||||
Cost
|
||||||||||||||||||||
Machinery and equipment
|
3,655 | -- | 3,655 | 1,483 | 5,139 | |||||||||||||||
Vehicles
|
12,522 | 16,933 | 29,455 | -- | 29,455 | |||||||||||||||
Furniture and fixtures
|
5,911 | 391 | 6,302 | 46,165 | 52,467 | |||||||||||||||
Total
|
22,088 | 17,324 | 39,412 | 47,648 | 87,061 | |||||||||||||||
Depreciation
|
||||||||||||||||||||
Machinery and equipment
|
(171 | ) | (1,023 | ) | (1,194 | ) | (1,113 | ) | (2,308 | ) | ||||||||||
Vehicles
|
(522 | ) | (6,306 | ) | (6,828 | ) | (5,883 | ) | (12,711 | ) | ||||||||||
Furniture and fixtures
|
(207 | ) | (1,311 | ) | (1,518 | ) | (6,029 | ) | (7,547 | ) | ||||||||||
Total
|
(900 | ) | (8,640 | ) | (9,540 | ) | (13,025 | ) | (22,566 | ) | ||||||||||
Net book value
|
21,188 | 29,872 | 64,495 |
31 December 2009
|
Additions
|
31 December 2010
|
||||||||||
Cost
|
||||||||||||
Rights
|
-- | 10,774 | 10,774 | |||||||||
Other tangible assets
|
-- | 3,885 | 3,885 | |||||||||
Total
|
-- | 14,659 | 14,659 | |||||||||
Depreciation
|
||||||||||||
Rights
|
-- | 2,394 | 2,394 | |||||||||
Other tangible assets
|
-- | 432 | 432 | |||||||||
Total
|
-- | 2,826 | 2,826 | |||||||||
Net book value
|
-- | 11,833 |
31.12.2010 | 31.12.2009 | |||||||
Short term borrowings
|
||||||||
TRY bank loans
|
2,351 | 11,282 | ||||||
Sub total
|
2,351 | 11,282 | ||||||
Long term borrowings
|
||||||||
TRY bank loans
|
-- | 2,321 | ||||||
Sub total
|
-- | 2,321 | ||||||
Total
|
2,351 | 13,603 |
31.12.2010 | 31.12.2009 | |||||||
Within one year
|
2,351 | 11,282 | ||||||
Between one to two years
|
-- | 2,321 | ||||||
Total
|
2,351 | 13,603 |
31.12.2010 | 31.12.2009 | |||||||
Suppliers
|
58,150 | 65,831 | ||||||
Other trade payables
|
-- | 3,182 | ||||||
Total
|
58,150 | 69,013 |
31.12.2010 | 31.12.2009 | |||||||
Social security withholdings payable
|
6,010 | 685 | ||||||
Due to personnel
|
7,056 | -- | ||||||
Accrued expenses
|
1,350 | -- | ||||||
Advances received
|
10,776 | 68,597 | ||||||
Other liabilities
|
40 | 2,234 | ||||||
Total
|
25,232 | 71,516 |
31.12.2010 | 31.12.2009 | |||||||
Discount rate
|
10.00 | % | 11.00 | % | ||||
Expected rates of salary / limit increases
|
5.1 | % | 4.80 | % |
31.12.2010
|
31.12.2009
|
||||||
Shareholding
|
Shareholding
|
||||||
Amount
|
%
|
Amount
|
%
|
||||
Ali Rıza Tanışman
|
2,676
|
2.97%
|
29,700
|
33.00%
|
|||
Andrew Stuart Brabin
|
30,324
|
33.70%
|
30,600
|
34.00%
|
|||
Recep Tanışman
|
26,757
|
29.73%
|
--
|
--
|
|||
Ronald George Murphy
|
29,432
|
32.70%
|
29,700
|
33.00%
|
|||
Cansın Tanışman
|
811
|
0.90%
|
--
|
--
|
|||
90,000
|
100.00%
|
90,000
|
100.00%
|
31.12.2010 | 31.12.2009 | |||||||
Clever board
|
887,639 | 42,034 | ||||||
Touch it board 78 inch
|
628,105 | 254,816 | ||||||
Touch it board 80 inch
|
179,794 | 17,533 | ||||||
Triumph board 78 inch
|
136,867 | 423,203 | ||||||
Electronic circuit
|
222,100 | -- | ||||||
Touch it board 90 inch
|
121,048 | 9,462 | ||||||
Triumph board 80 inch
|
53,182 | 330,937 | ||||||
Touch it board 50 inch
|
34,589 | 17,578 | ||||||
Triumph board 50 inch
|
1,244 | 5,880 | ||||||
RM easyboard 78 inch
|
-- | 120,423 | ||||||
Triumph board 90 inch
|
-- | 34,114 | ||||||
RM easyboard 50 inch
|
9,299 | |||||||
Others
|
23,807 | 64,566 | ||||||
Returns and discounts(-)
|
(17,914 | ) | (77,784 | ) | ||||
Total
|
2,270,461 | 1,252,061 |
31.12.2010 | 31.12.2009 | |||||||
Direct material cost
|
1,334,558 | 1,028,469 | ||||||
Direct labor cost
|
125,833 | 23,697 | ||||||
General production overheads
|
108,283 | 51,715 | ||||||
Ending inventory (trade goods)
|
(1,534 | ) | (16,045 | ) | ||||
Depreciation
|
5,547 | 4,503 | ||||||
Total
|
1,572,687 | 1,092,339 |
31.12.2010 | 31.12.2009 | |||||||
Export expenses
|
156,185 | 169,528 | ||||||
Sales & marketing expenses of shareholders
|
45,748 | 109,381 | ||||||
Software expenses
|
44,506 | -- | ||||||
Fair expense
|
-- | 36,849 | ||||||
Salaries
|
-- | 8,782 | ||||||
Consultancy expenses
|
24,333 | -- | ||||||
Cargo expenses
|
5,626 | 6,208 | ||||||
Depreciation
|
748 | 2,780 | ||||||
Others
|
72,908 | 51,296 | ||||||
Total
|
350,054 | 384,824 |
31.12.2010 | 31.12.2010 | |||||||
Shareholders expenses
|
102,632 | 46,200 | ||||||
Consulting expenses
|
57,877 | 20,315 | ||||||
Food expenses
|
5,057 | 3,132 | ||||||
Depreciation
|
9,556 | 1,357 | ||||||
Tax and duties
|
931 | 918 | ||||||
Employee termination benefits
|
1,842 | -- | ||||||
Other
|
11,533 | 12,509 | ||||||
Total
|
189,428 | 84,431 |
31.12.2010 | 31.12.2009 | |||||||
Provision for impairment of inventory
|
(38,249 | ) | -- | |||||
Non tax deductable expenses
|
(4,990 | ) | (10,516 | ) | ||||
Other income
|
3,494 | 5,060 | ||||||
Total
|
(39,745 | ) | (5,456 | ) |
31.12.2010 | 31.12.2009 | |||||||
Interest expenses
|
1,224 | 4,284 | ||||||
Other banking expenses
|
4,028 | 2,285 | ||||||
Total
|
5,252 | 6,569 |
31 December 2010
|
Financial assets
at
amortized cost
|
Loans and
receivables
|
Financial liabilities
at amortized cost
|
Carrying
value
|
Fair
value
|
Note
|
Financial assets
|
||||||
Cash and cash equivalents
|
--
|
47,282
|
--
|
47,282
|
47,282
|
5
|
Trade receivables
|
--
|
669,937
|
--
|
669,937
|
669,937
|
6
|
Financial liabilities
|
||||||
Borrowings
|
--
|
--
|
2,351
|
2,351
|
2,351
|
13
|
Trade payables (including related parties)
|
--
|
1,111,639
|
--
|
1,111,639
|
1,111,639
|
7-14
|
31 December 2009
|
Financial assets
at amortized cost
|
Loans and
receivables
|
Financial liabilities
at amortized cost
|
Carrying
value
|
Fair
value
|
Note
|
Financial assets
|
||||||
Cash and cash equivalents
|
--
|
52,641
|
--
|
52,641
|
52,641
|
5
|
Trade receivables
|
--
|
269,394
|
--
|
269,394
|
269,394
|
6
|
Financial liabilities
|
||||||
Borrowings
|
--
|
--
|
13,603
|
13,603
|
13,603
|
13
|
Trade payables(including related parties)
|
--
|
711,173
|
--
|
711,173
|
711,173
|
7-14
|
31.12.2010
|
31.12.2009
|
||||
F/C
Type
|
Foreign
Currency
|
TRY
|
Foreign
Currency
|
TRY
|
|
Cash
|
USD
|
-
|
-
|
--
|
--
|
Banks
|
USD
|
45,538
|
70,401
|
41,901
|
63,090
|
EUR
|
78
|
160
|
|||
Trade receivables
|
USD
|
669,937
|
1,035,723
|
269,394
|
405,628
|
Advances Given (inventories)
|
USD
|
-
|
-
|
10,774
|
16,222
|
31,302
|
48,393
|
-
|
-
|
||
Trade payables
|
USD
|
(23,829)
|
(36,839)
|
(553,238)
|
(833,010)
|
Due to related parties
|
USD
|
(1,039,944)
|
(1,607,753)
|
-
|
-
|
EUR
|
(904)
|
(1,953)
|
|||
Due to shareholders
|
USD
|
(9,170)
|
(14,177)
|
(33,003)
|
(49,693)
|
Other current liabilities
|
USD
|
(10,776)
|
(16,660)
|
(68,598)
|
(103,288)
|
Net F/C Assets and Liabilities
|
(520,752)
|
(503,004)
|
Current
|
Noncurrent
|
Total
|
||||||||||
31 December 2010
|
||||||||||||
Borrowings
|
2,351 | -- | 2,351 | |||||||||
Trade payables
|
70,534 | -- | 70,534 | |||||||||
Due to related parties
|
1,041,105 | -- | 1,041,105 | |||||||||
31 December 2009
|
||||||||||||
Borrowings
|
11,282 | 2,321 | 13,603 | |||||||||
Trade payables
|
69,013 | -- | 69,013 | |||||||||
Due to related parties
|
642,160 | -- | 642,160 |
Name:
|
Address:
|
|
Andrew Brabin
|
Ataturk Bulvari Ali Riza Efendi cd.
|
|
A4 Blok No. 4, Trakya Serbest Bolge
|
||
Istanbul, Turkey
|
||
Ronald Murphy
|
Ataturk Bulvari Ali Riza Efendi cd.
|
|
A4 Blok No. 4, Trakya Serbest Bolge
|
||
Istanbul, Turkey
|
||
Recep Tanisman
|
Ataturk Bulvari Ali Riza Efendi cd.
|
|
A4 Blok No. 4, Trakya Serbest Bolge
|
||
Istanbul, Turkey
|
/s/ Andrew Brabin
|
|
Andrew Brabin
|
|
Chief Financial Officer
|
Subsidiary | Percentage of Ownership | |
TouchIT Technologies Koll Sti | Turkey | 100% |
TouchIT Education Koll | Turkey | 100% |
1.
|
I have reviewed this annual report on Form 10-K of TouchIT Technologies, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles of the United States;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Recep Tanisman
|
|
Recep Tanisman
Chief Executive Officer
(Principal Executive Officer)
|
1.
|
I have reviewed this annual report on Form 10-K of TouchIT Technologies, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles of the United States;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Andrew Brabin
|
|
Andrew Brabin
Chief Financial Officer
(Principal Financial Officer)
|
/s/ Recep Tanisman
|
|
Recep Tanisman
Chief Executive Officer
(Principal Executive Officer)
March 31, 2011
|
/s/ Andrew Brabin
|
|
Andrew Brabin
Chief Financial Officer
(Principal Financial Officer)
March 31, 2011
|