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Pansoft CO LTD 10-Q 2009

Documents found in this filing:

  1. 10-Q
  2. Ex-31.1
  3. Ex-31.2
  4. Ex-32.1
  5. Ex-32.2
  6. Ex-32.2
pci10q063009.htm
 


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 FORM 10-Q
 
[X]
QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2009
   
OR
 
   
[ ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Commission file number 000-53183
 
PRINTING COMPONENTS INC.
(Exact name of registrant as specified in its charter)
 
NEVADA
(State or other jurisdiction of incorporation or organization)
 
2795 Barton Street, East
Unit 5
Hamilton, Ontario
Canada L8E 2J8
 (Address of principal executive offices, including zip code.)
 
(905) 578-3232
(Registrant’s telephone number, including area code)
 
Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days.YES [X] NO [ ]>
 
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 the definitions of “large accelerated filer, “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
 
Large Accelerated Filer
[  ]
 
Accelerated Filer
[  ]
 
Non-accelerated Filer
[  ]
 
Smaller Reporting Company
[X]
 
 
 State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 16,721,502 as of August 6, 2009.
 
 


 
 
 

 
 

 

PART I – FINANCIAL INFORMATION
 
 ITEM 1.     FINANCIAL STATEMENTS

 
PRINTING COMPONENTS INC
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
               
       
June 30, 2009
   
December 31, 2008
       
 (unaudited)
   
 
   
ASSETS
     
Current assets:
           
Cash
 $
                 1,834
 
 $
                   629
 
Total Current Assets
 
                     1,834
   
                       629
Fixed assets, net (Note 5)
 
                     8,102
   
                     9,674
       
 
     
 
TOTAL ASSETS
 
 $
             9,936
 
 $
               10,303
               
   
LIABILITIES AND SHAREHOLDERS' DEFICIENCY
     
Current liabilities:
           
Accrued liabilities - other
 $
                18,545
 
 $
               4,500
Accrued officers' salaries
 
                 150,000
   
                 150,000
Due to officer/shareholder
 
                   10,799
   
                            -
               
 
Total Current Liabilities
 
                 179,344
   
                 154,500
               
               
Shareholders' Deficiency (Note 2)
         
Preferred Stock, $0.00001 par value,
         
 none issued and outstanding
 
                            -
   
                            -
Common Stock, $0.00001 par value, 100,000,000 shares authorized
     
  16,721,502 shares issued and outstanding at
         
  June 30, 2009 and December 31, 2008
 
                       167
   
                       167
Paid-In-Capital
   
                 172,508
   
                 172,508
               
Deficit Accumulated during the Development Stage
 
                (342,083)
   
                (316,872)
               
Total Shareholders' Deficiency
 
                (169,408)
   
                (144,197)
               
 
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIENCY
 $
                 9,936
 
 $
                10,303
 
 
 
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
F-1
 
 

 
-2-

 

 
PRINTING COMPONENTS INC
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
(UNAUDITED)
                     
                   
December 12
   
 Three Months
 
 Three Months
 
 Six Months
 
 Six Months
 
2006
   
 Ended
 
 Ended
 
 Ended
 
 Ended
 
 (inception) to
   
June 30, 2009
 
June 30, 2008
 
June 30, 2009
 
June 30, 2008
 
June 30, 2009
                     
Revenue:
 $
                     -
  $
                    -
  $
                     -
  $
                  -
  $
         15,887
                     
Cost of Sales:
                 
Inventory - beginning of period
                        -
 
                 5,245
 
                        -
 
                 5,245
 
                        -
Purchases
                        -
 
                        -
 
                        -
 
                        -
 
               12,840
Inventory - end of period
                        -
 
                        -
 
                        -
 
                        -
 
                        -
   
                        -
 
                 5,245
 
                        -
 
                 5,245
 
               12,840
Gross Profit
                        -
 
                (5,245)
 
                        -
 
                (5,245)
 
                 3,047
                     
                     
Expenses:
                 
Salaries
 
                        -
 
                        -
 
                        -
 
                        -
 
             150,000
Professional fees
                 5,677
 
               13,037
 
               19,438
 
               19,733
 
             113,261
Travel
 
                        -
 
                        -
 
                        -
 
                        -
 
               22,717
Meals and entertainment
                        -
 
                        -
 
                        -
 
                        -
 
               11,145
Rent
 
                 1,225
 
                 1,573
 
                 2,815
 
                 3,163
 
               14,800
Bad debts
 
                        -
 
                 8,555
 
                        -
 
                 8,555
 
                 8,555
Web page design
                        -
 
                        -
 
                        -
 
                        -
 
                 5,600
Office
 
                 1,020
 
                    881
 
                 1,117
 
                 1,527
 
                 6,484
Registration fees
                        -
 
                        -
 
                        -
 
                 1,375
 
                 3,700
Depreciation
                    786
 
                    786
 
                 1,572
 
                 1,572
 
                 6,316
Bank charges
                    106
 
                    183
 
                    257
 
                    340
 
                 1,601
Exchange
 
                    (54)
 
                    277
 
                     12
 
                    277
 
                    950
   
                 8,761
 
               25,292
 
               25,211
 
               36,542
 
             345,130
                   
 
Net Loss
              (8,761)
  $
         (30,537)
  $
            (25,211)
  $
          (41,787)
  $
          (342,083)
                     
Basic and diluted net income per share  
  $ 
 $ 
   
                     
Weighted average shares used in calculating                    
Basic and diluted net loss per share  $   16,721,502   16,721,502   16,721,502   16,721,502    
 
 
 
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
F-2
 
 

 
-3-

 

 
PRINTING COMPONENTS INC
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
(UNAUDITED)
               
               
             
December 12,
     
 Six Months
Ended
 
 Six Months
Ended
 
2006
(inception) to
     
June 30, 2009
 
June 30, 2008
 
June 30, 2009
               
CASH FLOWS FROM OPERATING ACTIVITIES:
           
Net loss
$
         (25,211)
  $
               (41,787)
  $
               (342,083)
Adjustments to reconcile net income to cash used
           
By operating activities
           
 
Depreciation
 
                     1,572
 
                     1,572
 
                     6,316
Changes in operating assets and liabilities
           
 
Decrease in accounts receivable
 
                            -
 
                     8,088
 
                            -
 
Increase/(decrease) in accounts payable
 
                    14,045
 
                       (934)
 
                  168,545
 
Decrease/(increase) in inventory
 
                            -
 
                     5,245
 
                            -
NET CASH USED BY OPERATING ACTIVITIES
 
                    (9,595)
 
                   (27,816)
 
                 (167,222)
               
CASH FLOWS FROM INVESTING ACTIVITIES:
           
 
Purchase of fixed assets
 
                            -
 
                            -
 
                   (14,418)
CASH USED BY INVESTING ACTIVITIES
 
                            -
 
                            -
 
                   (14,418)
               
CASH FLOWS FROM FINANCING ACTIVITIES
           
 
Officers advances (repayments)
 
                    10,799
 
                   (32,932)
 
                    10,799
 
Proceeds from sale of common stock
 
                            -
 
                            -
 
                  172,675
CASH PROVIDED BY FINANCING ACTIVITIES
 
                    10,799
 
                   (32,932)
 
                  183,474
               
NET INCREASE (DECREASE) IN CASH
 
                     1,205
 
                   (60,748)
 
                     1,834
               
CASH
           
Cash - Beginning of period
 
                        629
 
                    87,375
 
                            -
Cash - End of period
                   1,834
  $
                26,627
  $
                   1,834
               
Supplemental Disclosure of Cash Flow Information
           
 
Taxes paid
                           -
  $
                         -
$
                          -
 
Interest paid
                           -
  $
                         -
  $
                           -
               
 
 
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
F-3
 
 

 
-4-

 

PRINTING COMPENTS INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2009
(UNAUDITED)
 
 
NOTE 1 – ACCOUNTING POLICES AND OPERATIONS
 
INTERIM FINANCAIL INFORMATION
 
The interim financial statements of Printing Components Inc. are unaudited.  However, in the opinion of management, the interim data includes all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the results of the interim period.  The results of operation of the period ended June 30, 2009 are not necessarily indicative of the operation results for the entire year.
 
The interim financial statements are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair statement of the Company’s financial position, results of operations and cash flows for the periods presented. These adjustments consist of normal, recurring items. The results of operations for any interim period are not necessarily indicative of results for the full year. The interim financial statements and notes are presented as permitted by the requirements for Quarterly Reports on Form 10-Q. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s financial statements and notes included in its 2008 Annual Report on Form 10-K.
 
ORGANIZATION
 
Printing Components Inc. (the "Company"), a development stage company, was incorporated in Nevada on December 12, 2006.  The Company offers media, inks, printing and graphic design services to the large format digital printing industry. At June 30, 2009, the Company has commenced business operations.  The Company’s fiscal year ends on December 31st.
 
CASH AND CASH EQUIVALENTS
 
The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents.
 
EARNINGS PER SHARE
 
The Company computes earnings per share in accordance with Statement of Accounting Standards No. 128 “Earnings per Share (“SFAS No. 128”).  Under the provision of SFAS No. 128, basic earnings per share is computed by dividing the net income (loss) for the period by the weighted average number of commons hares outstanding during the period.  Diluted earnings per share is computed by dividing the net income (loss) for the period by the weighted average number of common and potentially dilutive common shares outstanding during the period.  There were no potentially dilutive common shares outstanding during the period.
 
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 certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.
 
INVENTORY
 
Inventory is valued at the lower of cost or market on the first in, first out basis.  The inventory at June 30, 2009 consisted entirely of finished goods.
 
DEPRECIATION
 
The cost of computers and furniture is depreciated over the estimated useful life of the related assets from 3 to 7 years.
 
F-4
-5-

 
PRINTING COMPENTS INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2009
(UNAUDITED)
 
 
INCOME TAXES
 
The company accounts for income taxes in accordance with Statement of Financial Accounting Standards No. 109, “Accounting for Income Taxes” Under the assets and liability method of Statement 109, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled.
 
The Company adopted FASB Interpretation (“FIN”) No. 48, “Accounting for Uncertainty in Income Taxes,” which prescribes a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on a tax return (including a decision whether to file or not to file a return in a particular jurisdiction).
 
REVENUE RECOGNITION
 
Revenue from sale of printing products is reported on the accrual basis of accounting, whereby the sale is recorded upon the delivery or transfer of title of the goods.
 
FAIR VALUE OF FINANCIAL INSTRUMENTS
 
The Company considers that the carrying amounts of financial instruments, including accounts payable, approximates fair value because of the short maturity of these instruments
 
RECENT ACCOUNTING PRONOUNCMENTS
 
Effective January 1, 2009, the Company adopted FSP No. FAS 141(R)-1, "Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies," (FSP FAS 141(R)-1), which was issued on April 1, 2009. FSP FAS 141(R)-1 applies to all assets acquired and liabilities assumed in a business combination that arise from certain contingencies as defined in this FSP and requires (i) an acquirer to recognize at fair value, at the acquisition date, an asset acquired or liability assumed in a business combination that arises from a contingency if the acquisition-date fair value of that asset or liability can be determined during the measurement period otherwise the asset or liability should be recognized at the acquisition date if certain defined criteria are met; (ii) contingent consideration arrangements of an acquiree assumed by the acquirer in a business combination be recognized initially at fair value; (iii) subsequent measurements of assets and liabilities arising from contingencies be based on a systematic and rational method depending on their nature and contingent consideration arrangements be measured subsequently in accordance with the provisions of SFAS 141(R); and (iv) disclosures of the amounts and measurement basis of such assets and liabilities and the nature of the contingencies.
 
In April 2009, the FASB issued FSP No. FAS 157-4, "Determining Fair Values When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly." This FSP provides guidance on (1) estimating the fair value of an asset or liability when the volume and level of activity for the asset or liability have significantly declined and (2) identifying transactions that are not orderly. The FSP also amends certain disclosure provisions of SFAS No. 157 to require, among other things, disclosures in interim periods of the inputs and valuation techniques used to measure fair value as well as disclosure of the hierarchy of the source of underlying fair value information on a disaggregated basis by specific major category of investment. For the Company, this FSP was effective prospectively beginning April 1, 2009. The adoption of this standard did not have a material impact on the Company's results of operations or financial condition.
 
F-5
-6-

 
PRINTING COMPENTS INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2009
(UNAUDITED)
 
RECENT ACCOUNTING PRONOUNCMENTS (continued)
 
In April 2009, the FASB issued FSP No. FAS 115-2 and FAS 124-2, "Recognition and Presentation of Other-Than-Temporary Impairments" (FSP 115-2). This FSP modifies the requirements for recognizing other-than-temporarily impaired debt securities and changes the existing impairment model for such securities. The FSP also requires additional disclosures for both annual and interim periods with respect to both debt and equity securities. Under the FSP, impairment of debt securities will be considered other-than-­temporary if an entity (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its cost, or (3) does not expect to recover the security's entire amortized cost basis (even if the entity does not intend to sell). The FSP further indicates that, depending on which of the above factor(s) causes the impairment to be considered other-than-temporary, (1) the entire shortfall of the security's fair value versus its amortized cost basis or (2) only the credit loss portion would be recognized in earnings while the remaining shortfall (if any) would be recorded in other comprehensive income. FSP 115-2 requires entities to initially apply the provisions of the standard to previously other-than-temporarily impaired debt securities existing as of the date of initial adoption by making a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The cumulative-effect adjustment potentially reclassifies the noncredit portion of a previously other-than-temporarily impaired debt security held as of the date of initial adoption from retained earnings to accumulated other comprehensive income. For the Company, this FSP was effective beginning April 1, 2009. The adoption of this standard did not have a material impact on the Company's results of operations or financial condition.
 
In April 2009, the FASB issued FSP No. FAS 107-1 and APB 28-1, "Interim Disclosures about Fair Value of Financial Instruments." This FSP essentially expands the disclosure about fair value of financial instruments that were previously required only annually to also be required for interim period reporting. In addition, the FSP requires certain additional disclosures regarding the methods and significant assumptions used to estimate the fair value of financial instruments. This FSP was effective for the Company beginning April 1, 2009 on a prospective basis.
 
In May 2009, the FASB issued SFAS No. 165, "Subsequent Events." This standard incorporates into authoritative accounting literature certain guidance that already existed within generally accepted auditing standards, with the requirements concerning recognition and disclosure of subsequent events remaining essentially unchanged. This guidance addresses events which occur after the balance sheet date but before the issuance of financial statements. Under SFAS No.165, as under previous practice, an entity must record the effects of subsequent events that provide evidence about conditions that existed at the balance sheet date and must disclose but not record the effects of subsequent events which provide evidence about conditions that did not exist at the balance sheet date. This standard added an additional required disclosure relative to the date through which subsequent events have been evaluated and whether that is the date on which the financial statements were issued. For the Company, this standard was effective beginning April 1, 2009.
 
In June 2009, the FASB issued SFAS No. 166, "Accounting for Transfers of Financial Assets-an amendment of FASB Statement No. 140," amending the guidance on transfers of financial assets to, among other things, eliminate the qualifying special purpose entity concept, include a new unit of account definition that must be met for transfers of portions of financial assets to be eligible for sale accounting, clarify and change the derecognition criteria for a transfer to be accounted for as a sale, and require significant additional disclosure. For the Company, this standard is effective for new transfers of financial assets beginning January 1, 2010. Because the Company historically does not have significant transfers of financial assets, the adoption of this standard is not expected to have a material impact on the Company's results of operations or financial condition.
 
F-6
-7-

 
PRINTING COMPENTS INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2009
(UNAUDITED)
 
RECENT ACCOUNTING PRONOUNCMENTS (continued)
 
In June 2009, the FASB issued SFAS No. 167, "Amendments to FASB Interpretation No. 46(R)," which revised the consolidation guidance for variable-interest entities. The modifications include the elimination of the exemption for qualifying special purpose entities, a new approach for determining who should consolidate a variable-interest entity, and changes to when it is necessary to reassess who should consolidate a variable-interest entity. For the Company, this standard is effective January 1, 2010. The Company is currently evaluating the impact of this standard, but would not expect it to have a material impact on the Company's results of operations or financial condition.
 
In June 2009, the FASB issued SFAS No. 168, "The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles a replacement of FASB Statement No. 162," and approved--the FASB Accounting Standards CodificationTM (Codification) as the single source of authoritative nongovernmental US GAAP. The Codification does not change current US GAAP, but is intended to simplify user access to all authoritative US GAAP by providing all the authoritative literature related to a particular topic in one place. All existing accounting standard documents will be superseded and all other accounting literature not included in the Codification will be considered non-authoritative. For the Company, the Codification is effective July 1, 2009 and will require future references to authoritative US GAAP to coincide with the appropriate section of the Codification. Accordingly, this standard will not have an impact on the Company's results of operations or financial condition.
 
GOING CONCERN
 
The accompanying financial statements have been prepared assuming the Company will continue as a going concern which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The assets and the satisfaction of liabilities in the normal course of business.  The amounts of assets and liabilities in the financial statements do not purport to represent realizable or settlement values.  However, the Company has incurred an operating loss.  Such loss may impair its ability to obtain additional financing
 
This factor raises substantial doubt about the Company’s ability to continue as a going concern.  The financial statements do no include any adjustments that might result from the outcome of this uncertainty.  The Company has met its historical working capital requirements from sale of capital shares.  Owners of the share, in order not to burden the Company, have agreed to provide funding to the Company to pay its annual audit fees, filing costs and legal fees as long as the board of directors deems it necessary.  However, there can be no assurance that such financial support shall be ongoing or available on terms or conditions acceptable to the Company
 
NOTE 2 – SHAREHOLDERS EQUITY
 
On December 12, 2006 the Company issued 5,000,000 shares of common stock, par value $0.00001 per share, to its initial shareholders in exchange for $50 in cash.  In the year ending December 31, 2007, the company sold 490,500 shares of common stock at $0.25 per share for total proceeds $122,625 and 83,334 shares of common stock at $0.60 per share for total proceeds of $50,000.
 
NOTE 3 – RELATED PARTY TRANSACTIONS
 
A shareholder/officer has provided funding to pay for the initial operating expenses of the Company. The amount of $10,799 was provided to the company in supporting company’s operation for the first half of the year 2009.
 
 
 
F-7
-8-

PRINTING COMPENTS INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2009
(UNAUDITED)
 
 
NOTE 4 – DUE TO SHAREHOLDER
 
Amounts due to shareholder are non-interest bearing and have no definite terms of repayment
 
NOTE 5 – EQUIPMENT
 
         
            
 
             Net Book Value
     
 
 
            Accumulated
 
              June 30,
 
              June 30,
     
  Cost
 
  Depreciation
 
              2009
 
             2008
                   
 
Furniture
 $
                      8,694
  $
                      2,180
  $
                        6,204
  $
                       7,754
 
             Computer
 
                            5,724
 
                            3,350
 
                             1,898
 
                             4,278
   
 $
                  14,418
  $
                       5,530
  $
                   8,102
  $
                    12,032
                   
 
 
 
 
 
 
 
 
 
 
 
 
F-8

 
-9-

 
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
 
    This section of the report includes a number of forward-looking statements that reflect out current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.
 
    Our auditors have issued a going concern opinion. This means that our auditors believe there is substance doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay out bills. This is because we have not generated substantial revenues and do not anticipate generating on-going revenue until we complete the development of our website and engage suppliers and customers to buy out products. Our only other source for cash at this time is investments by others in our company. Accordingly, we have raised a total of $172,625 in gross proceeds from our initial public offering and a December 28, 2007 share sale. We are using the proceeds to implement our project.
 
    We have opened our office, purchased furniture and computers, installed phone lines and acquired finished goods for resale and made sales in the amount of $15,887.   Suppliers have been contacted and initial inventory has been purchased at cost allowing for resale at reasonable margins. We have negotiated with our suppliers delivery timetable which minimizes the amount of inventory required on hand to meet sales demand.
 
Plan of Operation
 
          Our specific goal is to profitably introduce a comprehensive supply of products on our internet website to the printing industry. We are presently interviewing people with a background in graphics and computer programming. Once a suitable candidate is selected we will begin programming and designing the site providing us better control of the content and design of the site. This candidate once selected will start part time for the first 90 days and phase into a full time position.
 
    By attending Trade Shows, we are able to observe firsthand which new products are introduced and the interest generated by print shop owner/operators in the printing industry. Each show we attend provides us the opportunity to meet personally with key management of small and medium size manufacturers to discuss the opportunity of marketing and distributing their products on a non-exclusive basis. This will prove to be a valuable tool for providing us with a current list of suppliers, key management contacts, and an insight into upcoming products being released to the industry. We can also ascertain what the manufacturers deem to be key advantages of their products.
 
    Once this information is complied, we will enter it into our database: contact person, date we met, location of the meeting and product used. This information can then be tailored to create a personalized approach for e-mailing, telemarketing, direct mailing and/or personal visits. Where possible, we would like to offer products and services by direct link to their website.
 
Limited operating history; need for additional capital
 
          There is no historical financial information about us upon which to base an evaluation of our performance. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price increases in services and products.
 

 
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    To become profitable and competitive, we have to locate and negotiate agreements with manufacturers to offer their products for sale to us at pricing that will enable us to establish and sell the products to our clientele.
 
    We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop, or expand out operations. Equity financing could result in additional dilution to existing shareholders.
 
Results of operations
 
    During the year 2007, we incorporated the company, hired the attorney and the auditor and began to negotiate contracts and sell product.
 
    During the year 2008, we have continued with negotiating with suppliers and sourcing products. Our loss since inception is $347,794. We have started our proposed business operations, we have completed our public offering and completed a subsequent share offering.
 
    Since inception, we sold 5,000,000 pre-dividend shares of common stock to our officers and directors for $50; 490,500 pre-dividend shares of common stock at $0.25 per share for $122,625; and, 83,334 pre-dividend shares of common stock at $0.60 per share for $50,000.
 
    Over the past year, we attended several trade shows establishing contacts with many manufactures through out the USA, working closely with an agent who has developed similar relationships.
 
    Our research found a demand for third party high quality inks and demand for refillable ink cartridges for large format printers.
 
 
    As of the date of this report, we have generated $15,887 in revenues from our business operations.
 
    In December 2006, we issued 5,000,000 pre-dividend shares of common stock pursuant to the exemption contained in Reg. S of the Securities Act of 1933. This was accounted for as a sale of common stock.
 
    On June 25, 2007, we completed our public offering of 490,500 shares of pre-dividend common stock at an offering price of $0.25 per share. We raised $122,625.
 
    On December 28, 2007, we sold 83,334 restricted pre-dividend shares of the Company common stock pursuant to the exemption contained in Reg. S of the Securities Act of 1933, as amended at an offering price of $0.60 per share we raised $50,000.
 
    A stock dividend was declared on February 11, 2008, wherein two additional common shares were issued for each one common share issued and outstanding as at February 25, 2008.
 
    As of June 30, 2009, our total assets were $9,936 in cash, fixed assets and our total liabilities were $178,144 comprised of $17,345 in accrued liabilities and $150,000 in accrued officer salaries.
 
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
 
          We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.
 
 

 
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ITEM 4.
CONTROLS AND PROCEDURES.
 
    Under the supervision and with the participation of our management, including the Principal Executive Officer and Principal Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer have concluded that these disclosure controls and procedures are effective. There were no changes in our internal control over financial reporting during the quarter June 30, 2009 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
 
 
PART II. OTHER INFORMATION
 
ITEM 6.
EXHIBITS.
 
    The following documents are included herein:
 
Exhibit No.
Document Description
31.1
Certification of Principal Executive Officer pursuant Section 302 of the Sarbanes-Oxley Act of 2002.
   
31.2
Certification of Principal Financial Officer pursuant Section 302 of the Sarbanes-Oxley Act of 2002.
   
32.1
Certification of Chief Executive Officer pursuant Section 906 of the Sarbanes-Oxley Act of 2002.
   
32.2
Certification of Chief Financial Officer pursuant Section 906 of the Sarbanes-Oxley Act of 2002.
 
 
 
 
 
 
 
 
 
 
 

 
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SIGNATURES
 
    Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities on this 13th  day of August, 2009.
 
 
PRINTING COMPONENTS INC.
     
 
BY:
HERB ADAMS
   
Herb Adams
President, Principal Executive Officer, and a member of the Board of Directors
     
 
BY:
VINOD GANDHI
   
Vinod Gandhi
Treasurer, Principal Financial Officer, and Principal Accounting Officer.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-13-

 
EXHIBIT INDEX
 
Exhibit No.
Document Description
31.1
Certification of Principal Executive Officer pursuant Section 302 of the Sarbanes-Oxley Act of 2002.
   
31.2
Certification of Principal Financial Officer pursuant Section 302 of the Sarbanes-Oxley Act of 2002.
   
32.1
Certification of Chief Executive Officer pursuant Section 906 of the Sarbanes-Oxley Act of 2002.
   
32.2
Certification of Chief Financial Officer pursuant Section 906 of the Sarbanes-Oxley Act of 2002.
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
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