**U. S. SECURITIES AND EXCHANGE COMMISSION**

**Washington, D. C. 20549**

**FORM 10-Q**
| [X]

**QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2011**

 

 

** **

**OR**

 

 

[ ] 

**TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____________ TO _____________**

**SECURE NetCheckIn Inc.**

(Name of Registrant in its Charter)

**Nevada**

**333-173172**

**27-3729742**

(State or Jurisdiction of

Incorporation or Organization)

(Commission File Number)

(I.R.S. Employer

Identification No.)

**13118 Lamar Ave**

**Overland Park, KS 66209**

 (Address of Principal Executive Offices)

Registrant’s telephone number, including area code: **913.945.1290**

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No  ̈

Indicate by check mark whether the registrant 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  ̈  Accelerated filer  ̈  Non-accelerated filer  ̈  Smaller reporting company x

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. 

 

**Common Stock**

 

**Outstanding Shares at December 31, 2011**

**Common Stock, par value $.001 per share**

 

**3,300,000**

 

**TABLE OF CONTENTS**

PART I

FINANCIAL INFORMATION

Item 1

Financial Statements (Unaudited)

1

Balance Sheet

2

Statement of Operations

3

Statement of Change in Stockholders Equity

4

Statement of Cash Flows

5

Notes to Financial Statements

6

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

8

Item 3

Quantitative and Qualitative Disclosures about Market Risk

10

Item 4

Controls and Procedures

10

PART II

OTHER INFORMATION

Item 1

Legal Proceedings

11

Item 1A

Risk Factors

11

Item 2

Unregistered Sales of Equity Securities and Use 

11

Item 3

Defaults Upon Senior Securities

11

Item 4

Submission of Matters to a Vote of Security Holder

11

Item 5

Other Information

11

Item 6

Exhibits

11

Signatures

12

Exhibits

**Part I. Financial Information (Unaudited).**

The accompanying are financial statements of SECURE NetCheckIn Inc. (the “Company”). These statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto, for the fiscal year ended December 31, 2010, previously filed with the Commission, which are included in the S-1 Registration Statement filed with the SEC on March 29, 2011.

**SECURE NETCHECKIN INC.**

**(A DEVELOPMENT STAGE COMPANY)**

**BALANCE SHEET**

**(Unaudited)**

 

 

 

 

December 31, 2011

December 31, 2010

 

ASSETS

 

 

 

CURRENT ASSETS

 

 

 

Cash

$

53

$

79

 

Accounts Receivable | Subscription

$

40,000

$

0

TOTAL CURRENT ASSETS

$

40,053

$

79

 

 

 

 

 

Deferred offering costs

$

6,760

$

6,760

 

Intellectual Property – Software

$

3,169

$

3,169

TOTAL ASSETS

$

49,982

$

10,008

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

CURRENT LIABILITIES

 

 

 

Accounts Payable

$

6,760

$

6,760

 

TOTAL CURRENT LIABILITIES

$

6,760

$

6,760

 

 

 

 

 

Commitments and contingencies 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

Preferred stock, $0.001 par value, authorized: 75,000,000 shares, Issued and outstanding: None

 

-

 

Common stock, $0.001 par value, authorized: 425,000,000 shares, Issued and outstanding: 3,100,000 shares

$ 

3,100

$

3,100

 

Common stock, $0.001 par value, authorized: 425,000,000 shares, Issued and outstanding: 200,000 shares

$

40,000

$

0

Additional Paid in Capital

$

815

$

169

Deficit accumulated during the development stage

$

(693)

$

(21)

)

TOTAL STOCKHOLDERS' EQUITY

$

43,222

$

3,248

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

49,982

$

10,008

 

The accompanying notes are an integral part of the financial statements.

**SECURE NETCHECKIN INC.**

**(A DEVELOPMENT STAGE COMPANY)**

**STATEMENT OF OPERATIONS**

**(Unaudited)**

 

For the period from

For the period form

 

January 1, 2011

to

October 12, 2010

(Inception) to

 

December 31, 2011

(Unaudited)

December 31, 2011

(Unaudited)

REVENUE

$

0

$

0

 

 

EXPENSES

 

Edgarization Expense

$

546

$

546

Bank Charges

$

127

$

148

Total Expenses

$

673

$

694

NET (LOSS)

$

(673)

$

(694)

 

 

NET LOSS PER SHARE

 

Basic and diluted

$

(0.000204)

$

(0.000210)

 

WEIGHTED AVERAGE NUMBER OF SHARES

 

Basic and diluted

3,300,000

3,300,000

The accompanying notes are an integral part of the financial statements.

**SECURE NETCHECKIN INC.**

**(A DEVELOPMENT STAGE COMPANY)**

**STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY**

**(Unaudited)**

**FOR THE PERIOD OCTOBER 12, 2010 (INCEPTION) TO DECEMBER 31, 2010**

**AND**

**FOR THE TWELVE MONTH PERIOD JANUARY 1, 2011 THROUGH DECEMBER 31, 2011**

Deficit Accumulated

Common Stock

Additional

During the

Total

$0.001 Par Value

Paid-in

Development

Stockholder’s

Shares

Amount

Capital

Stage

Deficit

Balance ,October 12, 2010

0

$

0

$

0

$

0

$

0

Shares issued at $0.001 per share on October 12, 2010

3,100,000

$

3,100

$

169

-

$

3,269

Net Loss, period ended December 31, 2010

-

(21)

$

(21)

Balance, December 31, 2010

3,100,000

$

3,100

$

169

$

(21)

$

3,248

Shares issued at $0.20 per share on August 31, 2011

200,000

$

40,000

$

646

40,646

Net Loss, period January 1, 2011 to December 31, 2011

-

-

-

(673)

$

(673)

Balance, December 31, 2011

3,300,000

$

43,100

$

815

$

(694)

$

43,222

The accompanying notes are an integral part of the financial statements.

**SECURE NETCHECKIN INC.**

**(A DEVELOPMENT STAGE COMPANY)**

**STATEMENT OF CASH FLOWS**

**(Unaudited)**

 

For the period

For the period from

 

January 1, 2011

October 12, 2010

 

To

(Inception) to

December 31, 2011

December 30, 2011

 

(Unaudited)

(Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:

 

Net (Loss)

$

(673)

$

(694)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

(Increase) in deferred offering costs

$

0

$

(6,760)

Increase in accounts payable

$

0

$

6,760

Subscription Receivable

$

(40,000)

$

(40,000)

NET CASH PROVIDED BY OPERATING ACTIVITIES

$

(673)

$

(694)

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

Proceeds from sale of common stock

$

40,000

$

40,100

Additional Paid In Capital

$

646

$

646

NET CASH PROVIDED BY FINANCING ACTIVITIES

$

40,646

$

40,746

 

 

INCREASE (DECREASE) IN CASH

$

(27)

$

58

 

 

CASH, BEGINNING OF PERIOD

$

79

$

0

 

 

CASH, END OF PERIOD

$

53

53

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

Interest paid

$

0

$

0

Income taxes paid

$

0

$

0

 

 

SUPPLEMENTAL NON-CASH TRANSACTIONS:

 

Intellectual property contributed for stock

$

3,169

$

3,169

Stock Subscription Receivable

$

40,000

$

40,000

The accompanying notes are an integral part of the financial statements.

**SECURE NETCHECKIN INC.**

**(A DEVELOPMENT STAGE COMPANY)**

**NOTES TO THE FINANCIAL STATEMENTS**

**(Unaudited)**

**FOR THE PERIOD OCTOBER 12, 2010 (INCEPTION) TO DECEMBER 31, 2010**

**AND**

**FOR THE PERIOD OCTOBER 12, 2010 (INCEPTION) TO DECEMBER 31, 2011**

**Note 1. Basis of Presentation**

The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has no revenues and has a very small amount of cash. These conditions raise substantial doubt about the ability of the Company to continue as a going concern.

In view of these matters, continuation as a going concern is dependent upon the continued operations of the Company, which in turn is dependent upon the Company's ability to meet its financial requirements, raise additional capital, and the success of its future operations. The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should the Company not continue as a going concern.

**Note 2.  Summary of Significant Accounting Policies**

a) Cash and Cash Equivalents

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

b) Use of Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts or revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

c) Fair Value of Financial Instruments

ASC Topic 820-10 requires disclosure of fair value information about financial instruments. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 30, 2011.

The respective carrying value of certain on-balance-sheet financial instruments approximates their fair values. These financial instruments include cash, stock subscriptions receivable, and accounts payable. Fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair value, or they are receivable or payable on demand. 

d) Revenue Recognition

The Company has not generated any revenues since entering the development stage. It is the Company's policy that revenues will be recognized in accordance with ASC Topic 605-10-25, "Revenue Recognition". Under ASC Topic 605-10-25, product revenues (or service revenues) are recognized when persuasive evidence of an arrangement exists, delivery has occurred (or service has been performed), the sales price is fixed and determinable, and collectability is reasonably assured.

e) Stock-based Compensation/

The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expense related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. To date, the Company has not adopted a stock option plan and has not granted and stock options.

 

f) Income Taxes

The Company follows FASB Codification Topic 740-10-25 (ASC 740-10-25) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change.

Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.

g) Basic and Diluted Net Loss per Share

The Company computes net loss per share in accordance with ASC Topic 260-10, "Earnings per Share". ASC Topic 260-10 requires presentation of both basic and diluted per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all potentially dilutive shares if their effect is anti-dilutive. The Company had no dilutive common stock equivalents as of December 31, 2011.

h) Development Stage Company

Based on the Company's business plan, it is a development stage Company since planned principle operations have not yet commenced in a significant manner. Accordingly, the Company presents its financial statements in conformity with the accounting principles generally accepted in the United States of America that apply to developing enterprises. As a development stage enterprise, the Company discloses its retained earnings (or deficit accumulated) during the development stage and the cumulative statements of operations and cash flows from commencement of development stage to the current balance sheet date. The development stage began on October 12, 2010, when the Company was organized.

i) Concentrations

The Company is not currently a party to any financial instruments that potentially subject it to concentrations of credit risk.

j) Recent Pronouncements

There were various accounting standards and interpretations issued during 2010 or 2011, none of which are expected to have a material impact on the Company's financial position, operations, or cash flows.

**Note 3. Going Concern.**

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred a net loss of ($21) for the period from October 12, 2010 (inception) to December 31, 2010, and a net loss of ($673) for the period January 1, 2011 to December 31, 2011, for a total loss of ($694) for the period October 12, 2010 (Inception) to December 31, 2011. The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development of its new business opportunities. 

The Company is contemplating conducting an offering of its debt or equity securities to obtain additional operating capital. The Company is dependent upon its ability, and will continue to attempt, to secure equity and/or debt financing. There are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. These conditions raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.

**Item 2. Management Discussion and Analysis of Financial Conditions and Results of Operations.**

**Forward-Looking Statements**

Some of the statements contained in this Form 10-Q that are not historical facts are "forward-looking statements" which can be identified by the use of terminology such as "estimates," "projects," "plans," "believes," "expects," "anticipates," "intends," or the negative or other variations, or by discussions of strategy that involve risks and uncertainties. We urge you to be cautious of the forward-looking statements, that such statements, which are contained in this Form 10-Q, reflect our current beliefs with respect to future events and involve known and unknown risks, uncertainties and other factors affecting our operations, market growth, services, products and licenses. No assurances can be given regarding the achievement of future results, as actual results may differ materially as a result of the risks we face, and actual events may differ from the assumptions underlying the statements that have been made regarding anticipated events. Factors that may cause actual results, our performance or achievements, or industry results, to differ materially from those contemplated by such forward-looking statements include without limitation:

 

·

the volatile and competitive nature of our industry,

·

the uncertainties surrounding the rapidly evolving markets in which we compete,

·

the uncertainties surrounding technological change of the industry, our dependence on its intellectual property rights,

·

the success of our marketing efforts,

·

the changing demands of customers, and

·

the arrangements with present and future customers and third parties.

Should one or more of these risks or uncertainties materialize or should any of the underlying assumptions prove incorrect, actual results of current and future operations may vary materially from those anticipated.

**Overview**

**Company Overview**

We are a technology company offering a cloud-based scheduling and notification product targeted to urgent care facilities and medical offices to increase the satisfaction of patients in scheduling and timing of appointments. 

The Company was incorporated in the State of Nevada on October 12, 2010. The Company’s principal offices are currently located at 13118 Lamar Ave., Overland Park, KS 66209. Our telephone number there is 913.945.1290. All operations, from administration to product development take place at this location. The company occupies space owned by Mark W. and Brandi L. DeFoor, the officers of the company, for which it currently pays no rent.

The Company is in the early stage of operations with no current revenues to date. From inception through July 26, 2011, the date on which the Company’s securities became effective by the SEC, the majority of the Company’s activities revolved around defining requirements, working with a beta test customer and getting feedback on the product and service from the beta test customer. From August 3, 2011 through August 31, 2011, the Company conducted its securities offering. During the remainder of the third and fourth quarter, the Company continued to develop its offering and working on identifying potential customers with whom it plans to establish contractual relationships for the use of the Company’s product and services.

**Organizational Structure**

Our President and Chief Executive Officer, Brandi L. DeFoor, and our Vice President, Mark W. DeFoor handle the operational business functions, including corporate administration and development responsibility. We have no employees. Our officers receive no salaries.

**Products and Services**

The Company offers a reliable and user-friendly web-based scheduling program that allows patients to schedule appointments online and allows the medical office staff to notify the patient via text or email if the doctor is running late. This system reduces the amount of time patients wait in the waiting room thereby increasing patient satisfaction The Company has developed the software and has over 1800 users at its test site. The beta test customer continues to use the service free-of-charge.

**Revenue**

We did not generate any revenue for the period ending December 31, 2011.

**Risks, Uncertainties and Trends Relating to the Company and Industry**

Web-based technology solutions are intensely competitive in the United States as many software development companies are focused on medical and healthcare applications. We have numerous competitors in the United States and elsewhere. Several of these competitors have already successfully marketed and commercialized products that compete with our products. Our success is dependent up our ability to effectively and profitably produce, market, and sell our products. Our business strategy and success is dependent on the skills and knowledge of our management team. The marketability and profitability of our products is subject to unknown economic conditions, which could significantly impact our business, financial condition, the marketability of our products and our profitability. We are vulnerable to the current economic crisis which may negatively affect our profitability. Our success depends, in part, on the quality and operability of our products.

**Significant Accounting Estimates**

 

We review all significant estimates affecting our consolidated financial statements on a recurring basis and record the effect of any necessary adjustment prior to their publication. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements; accordingly, it is possible that actual results could differ from those estimates and changes to estimates could occur in the near term. The preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of the contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates and judgments are used when accounting for revenue, stock-based compensation, accounts receivable and allowance for doubtful accounts, impairment of long-lived assets, depreciation and amortization, deferred income taxes, and contingencies among others.

**Earnings Per Share** - Earnings per share is computed in accordance with the provisions of Financial Accounting Standards (FASB) Accounting Standards Codification (ASC) Topic 260 (SFAS No. 128, "EARNINGS PER Share"). Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted-average number of common shares outstanding during the period, as adjusted for the dilutive effect of the Company's outstanding convertible preferred shares using the "if converted" method and dilutive potential common shares. Potentially dilutive securities include warrants, convertible preferred stock, restricted shares, and contingently issuable shares.

**Comprehensive Income (Loss)**- FASB ASC Topic 220 (Statement of Financial Accounting Standards No. 130, "REPORTING COMPREHENSIVE INCOME") establishes standards for reporting comprehensive income (loss) and its components in a financial statement that is displayed with the same prominence as other financial statements. Comprehensive income (loss), as defined, includes all changes in equity during the period from non-owner sources, such as foreign currency translation adjustments.

**Recently Issued Accounting Pronouncements.**There were various accounting standards and interpretations issued during 2009, 2010, and 2011, none of which are expected to have a material impact on the Company's financial position, operations, or cash flows.

**Operating Expenses.**Our operating expenses consist of bank charges. The Company is not accumulating any other expenses in its operations at this time. 

**Liquidity and Capital Resources**

Management believes that we will begin receiving revenue in the second quarter of 2012. Based on our anticipated level of revenues, we believe that funds generated from operations, together with existing cash and cash available from financing activities in 2011, will be sufficient to finance our operations and planned capital expenditures through the fourth quarter of 2012. 

 

We will continue to pursue traffic to our web site and actively seek new customers. We believe these actions will position us to capitalize on opportunities as they arise in the industry. However, there can be no assurance that these actions will be successful. Should volumes and revenues decline to a level significantly below our current expectations, we would reduce capital expenditures and implement cost-reduction initiatives which we believe would be sufficient to ensure that funds generated from operations, together with existing cash, would be sufficient to finance our current operations through the fourth quarter of 2012.

 

We had net cash of ($53) from operating activities for the twelve month period ended December 31, 2011. We ended the fourth quarter of 2011 with cash of $53.

The Company’s owners are not receiving salaries and are conserving cash by limiting expenses. We believe cash flow from operations will be sufficient to fund our current operations through 2012.

**Capital Resources**

We have financed our operations primarily through cash flows from equity financings. We commenced a public offering in the amount of $40,000 in July 2011. Our common stock was offered at a fixed price of $.20 per share. The investors purchased a 2% stake in the company for a total of 200,000 shares of the Company’s common stock.

We believe that our current cash and cash equivalents and anticipated cash flow from operations will be sufficient to meet our anticipated cash needs, including our cash needs for working capital and capital expenditures, for at least the next six months.

While we would like to grow our business with our cash flow, a robust increase in subscriptions to our service, delays in collection of our accounts receivable and/or the incurrence of unforeseen expenses may necessitate our engaging in a capital raising transaction in the fourth quarter of 2012.

We may also seek to raise additional cash to fund future investments or acquisitions we may decide to pursue. To the extent it becomes necessary to raise additional cash in the future, we may seek to raise it through the sale of debt or equity securities, funding from joint-venture or strategic partners, debt financing or loans, issuance of common stock, or a combination of the foregoing. We currently do not have any binding commitments for, or readily available sources of, additional financing. Nor do we have any current plans to raise additional capital. However we reserve the right to raise additional capital in the future in which case the percentage ownership of our shareholders would be diluted. We cannot provide any assurances that we will be able to secure the additional cash or working capital we may require to continue our operations.

**Contractual Obligations and Off-Balance Sheet Arrangements**

**Contractual Arrangements.**

As of December 31, 2011, the Company did not have any contractual arrangements.

**Off-Balance Sheet Arrangements.**

As of December 31, 2011, the Company did not have any off-balance sheet arrangements.

**Item 3. Quantitative and Qualitative Disclosure About Market Risk.**

As a smaller reporting company, we are not required to include disclosure under this item.

**Item 4. Controls and Procedures.**

Under the supervision and with the participation of our management, we have conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as of the end of the period covered by this report. Based on this evaluation, our management concluded as of the evaluation date that our disclosure controls and procedures were not fully effective such that the material information required to be included in our Securities and Exchange Commission reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms relating to our Company, particularly during the period when this report was being prepared.

We identified the following material weaknesses in our internal control over financial reporting as of December 31, 2011:

 

1.  

The Company has not established adequate financial reporting monitoring activities to mitigate the risk of management override, specifically because there are no employees and only two officers with management functions and therefore there is lack of segregation of duties. In addition, the Company has installed accounting software that does not prevent erroneous or unauthorized changes to previous reporting periods and does not provide an adequate audit trail of entries made in the accounting software. However, although our controls are not effective, these significant weaknesses did not result in any material misstatements in our financial statements.

2.  

In addition, there is insufficient oversight of accounting principles implementation and insufficient oversight of external audit functions.

3.  

There is a strong reliance on the external service providers to review and adjust the annual and quarterly financial statements, to monitor new accounting principles, and to ensure compliance with GAAP and SEC disclosure requirements.

4.  

There is a strong reliance on the external attorneys to review and edit the annual and quarterly filings and to ensure compliance with SEC disclosure requirements.

Because of the material weaknesses noted above, management has concluded that we did not maintain effective internal control over financial reporting as of December 31, 2011, based on Internal Control over Financial Reporting - Guidance for Smaller Public Companies issued by COSO.

*Remediation of Material Weaknesses in Internal Control over Financial Reporting*

As a small business, without a viable business and revenues, the Company does not have the resources to install a dedicated staff with deep expertise in all facets of SEC disclosure and GAAP compliance. As is the case with many small businesses, the Company will continue to work with its external service providers and attorneys as it relates to new accounting principles and changes to SEC disclosure requirements. The Company has found that this approach worked well in the past and believes it to be the most cost effective solution available for the foreseeable future.

The Company will conduct a review of existing sign-off and review procedures as well as document control protocols for critical accounting spreadsheets. The Company will also increase management's review of key financial documents and records.

As a small business, the Company does not have the resources to fund sufficient staff to ensure a complete segregation of responsibilities within the accounting function. However, Company management does review, and will increase the review of, financial statements on a monthly basis, and the Company's external auditor conducts reviews on a quarterly basis. These actions, in addition to the improvements identified above, will minimize any risk of a potential material misstatement occurring.

*Changes in Internal Control over Financial Reporting*

There were no changes in our internal control over financial reporting during the quarter ended December 31, 2011 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

**PART II – Other Information**

**Item 1. Legal Proceedings.**

The Company is currently not a party to any legal or administrative proceedings and are not aware of any pending or threatened legal or administrative proceedings against us in all material aspects

**Item 1A. Risk Factors.**

As a smaller reporting company, the Company is not required to provide the information required by this item.

**Item 2. Unregistered Sale of Equity and Use of Proceeds.**

None.

**Item 3. Defaults on Senior Securities.**

None.

**Item 4. Submission of Matters to a Vote of Security Holders.**

On October 25, 2011, the Company called a special meeting of the security holders to vote to elect Mark W. DeFoor to the Company’s board of directors. At that meeting of the security holders, Mr. DeFoor was elected to the Company’s board of directors.

**Item 5. Other Information .**

None.

**ITEM 6. EXHIBITS.**

See Exhibit Index below for exhibits required by Item 601 of regulation S-K.

**Exhibit Index**

List of Exhibits attached or incorporated by reference pursuant to Item 601 of Regulation S-K:

**Exhibit Number**

**Description**

31.1

Certification under Section 302 of Sarbanes-Oxley Act of 20022

32.1

Certification under Section 906 of Sarbanes-Oxley Act 20022

2Filed as an Exhibit to this Form 10-Q

**SIGNATURE**

 

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

 

 

SECURE NetCheckIn Inc.

 

 

 

 

 

 

Dated: March 30, 2012

By:

 /s/ *Brandi L. DeFoor*

 

 

Brandi L. DeFoor

 

 

President & Chief Executive Officer

 

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