**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

 

**FORM 10-Q**

 

| [  ]

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

**For the quarterly period ended June 30, 2013**

 

[  ]

** TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934:**

**For the transition period from ____to____**

 

Commission File Number: **000-51465**

 **Massive Dynamics, Inc.**
(Exact name of registrant as specified in its charter)

**Nevada**

**4812**

**45-0836120**

(State or jurisdiction of incorporation

or organization) 

Primary Standard Industrial

Classification Code Number 

IRS Employer

Identification Number 

**** 

**1057 East Henrietta Rd**

**Rochester, New York 14623**

(Address of principal executive offices)

** 800-962-5650**

(Issuer’s telephone number)

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

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  [X] Yes  [  ] No

 

Indicate by check mark whether the registrant is a large accelerated file, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the 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

[   ]

(Do not check if a smaller

reporting company)

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   [X] No

 

As of August 22, 2013, there were 42,475,000 shares of the issuer's $.001 par value common stock issued and outstanding.

 

**TABLE OF CONTENTS**

 

 

**  PART I**

 

**FINANCIAL INFORMATION**

 

 

Page

Item 1.

Financial Statements

3

Item 2.

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

13

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

14

Item 4.

Controls and Procedures

14

 

**PART II**

    

**OTHER INFORMATION**

 

 

 

Item 1.

Legal Proceedings

15

Item 1A.

Risk Factors

15

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

15

Item 3.

Defaults Upon Senior Securities

15

Item 4.

Mine Safety Disclosures

15

Item 5.

Other Information

15

Item 6.

Exhibits

15

2

**PART I - FINANCIAL INFORMATION**

  

**MASSIVE DYNAMICS, Inc.**

**(A Development Stage Company)**

**CONDENSED FINANCIAL STATEMENTS**

**June 30, 2013**

**Unaudited**

3

**CONDENSED BALANCE SHEETS                                                                                                           5**

 

**CONDENSED STATEMENTS OF OPERATIONS                                                                                   6**

 

**CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)                                        7**

 

**CONDENSED STATEMENTS OF CASH FLOWS                                                                                   8**

 

**NOTES TO UNAUDITED CONDENSED INTERIM AUDITED FINANCIAL STATEMENTS           9**

 

4

**MASSIVE DYNAMICS, Inc.**

**(A Development Stage Company)**

**CONDENSED BALANCE SHEETS**

**Unaudited**

 

 

 

 

 

 

 

 

 

**June 30,**

**2013**

 

**March 31,**

**2013**

 

 

 

 

 

 

 

 

 

 

 

 

**ASSETS**

 

 

 

 

 

 

 

 

 

 

**CURRENT ASSETS**

 

 

 

 

Cash

$

21,328 

$

5,862 

Prepaid expenses

 

510,254 

 

- 

Inventory

 

22,845 

 

22,846 

**TOTAL CURRENT ASSETS**

$

554,427 

$

28,707 

 

 

 

 

 

 

**FIXED ASSETS**

 

 

 

 

Plant & Machinery, net of $2,822 depreciation

 

22,578 

 

24,694 

**TOTAL FIXED ASSETS**

$

22,578 

$

24,694 

 

 

 

 

 

 

**TOTAL ASSETS**

$

577,005 

$

53,402 

 

 

 

 

 

 

**LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)**

 

 

 

 

 

 

 

 

 

 

**CURRENT LIABILITIES**

 

 

 

 

Accounts payable and accrued liabilities

$

18,564 

$

21,036 

Loan payable

 

435,000 

 

365,000 

Accrued interest on loan payable

 

 

23,745 

 

13,558 

**TOTAL CURRENT LIABILITIES**

$

477,309 

$

399,594 

 

 

 

 

 

 

**STOCKHOLDERS' EQUITY (DEFICIT)**

 

 

 

 

Capital stock 

 

 

 

 

Authorized 

 

 

 

 

          75,000,000 shares of common stock, $0.001 par value,

 

 

 

 

Issued and outstanding 

 

 

 

 

        42,475,000 shares at June 30, 2013 & 50,000,000 at March 31, 2013

$

42,475 

$

50,000 

        Additional Paid in Capital

 

5,042,129 

 

(9,146)

Deficit accumulated during the development stage

 

(4,984,908)

 

(387,046)

**TOTAL STOCKHOLDERS' EQUITY/(DEFICIT)**

 

$

99,696 

$

(346,192)

**TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT)**

 

$

577,005 

$

53,402 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements

5

**MASSIVE DYNAMICS, Inc.**

**(A Development Stage Company)**

**CONDENSED STATEMENTS OF OPERATIONS**

**Unaudited**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Cumulative results**

 

 

 

 

 

 

 

**From**

**inception**

 

 

 

**3 months**

**ended**

 

**3 months**

**ended**

 

**(March 15,**

**2011) to**

 

 

 

**June 30,**

**2013**

 

**June 30,**

**2012**

 

**June 30,**

**2013**

**REVENUE**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

- 

$

- 

$

5,000 

**Total Revenue**

 

$

- 

$

- 

$

5,000 

 

 

 

 

 

 

 

 

**EXPENSES**

 

 

 

 

 

 

 

Inventory abandonment

$

- 

$

- 

$

26,955 

Amortization of cost of share issue for services

 

108,496 

 

- 

 

108,496 

Bad Debt

 

 

- 

 

- 

 

121,649 

Office and general

 

43,062 

 

95 

 

115,827 

Impairment of website costs

 

- 

 

- 

 

45,900 

Research & Development

 

4,425,000 

 

 

 

4,425,000 

Depreciation

 

 

2,117 

 

- 

 

2,822 

Professional fees

 

 

9,000 

 

25,215 

 

70,263 

Professional fees - related party

 

- 

 

- 

 

49,250 

**Total Expenses**

$

4,587,675 

$

25,310 

$

4,966,162 

 

 

 

 

 

 

 

 

Interest expense

 

 

10,188 

 

- 

 

23,745 

Provision for income taxes

 

- 

 

- 

 

- 

 

 

 

 

 

 

 

 

**NET LOSS**

 

$

(4,597,862)

$

(25,310)

$

(4,984,908)

 

 

 

 

 

 

 

 

**BASIC AND DILUTED LOSS PER COMMON SHARE**

$

(0.11)

$

- 

 

 

 

 

 

 

 

 

 

 

**WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING**

 

42,110,714 

 

100,207,088 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements

6

**MASSIVE DYNAMICS, Inc.**

**(A Development Stage Company)**

**CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)**

**From inception (March 15, 2011) to June 30, 2013**

**Unaudited**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Deficit**

 

 

 

**Common Stock**

 

 

 

**accumulated**

 

 

 

 

 

**Additional**

 

**during the**

 

 

 

**Number of**

 

 

 

**Paid-in**

 

**development**

 

 

 

**shares**

 

**Amount**

 

**Capital**

 

**stage**

 

**Total**

Balance on inception, March 15, 2011

- 

$

- 

$

- 

$

- 

$

- 

 

 

 

 

 

 

 

 

 

 

Founder's shares issued for services at

 

 

 

 

 

 

 

 

 

$0.00005 per share on March 21, 2011

100,000,000 

 

100,000 

 

(95,000)

 

- 

 

5,000 

 

 

 

 

 

 

 

 

 

 

Net loss for the period from inception

 

 

 

 

 

 

 

 

 

to March 31, 2011

- 

 

- 

 

- 

 

(7,785)

 

(7,785)

 

 

 

 

 

 

 

 

 

 

**Balance, March 31, 2011**

**100,000,000 **

**$**

**100,000 **

**$**

**(95,000)**

**$**

**(7,785)**

**$**

**(2,785)**

Net loss for the year ended 

 

 

 

 

 

 

 

 

 

March 31, 2012

- 

 

- 

 

- 

 

(17,795)

 

(17,795)

 

 

 

 

 

 

 

 

 

 

**Balance, March 31, 2012**

**100,000,000 **

**$**

**100,000 **

**$**

**(95,000)**

**$**

**(25,580)**

**$**

**(20,580)**

Common shares issued for services on

 

 

 

 

 

 

 

 

 

June 29, 2012, at $0.002125 per share

9,422,500 

 

9,422 

 

10,578 

 

- 

 

20,000 

 

 

 

 

 

 

 

 

 

 

Common shares cancelled on 

 

 

 

 

 

 

 

 

 

September 10, 2012

(59,422,500)

 

(59,422)

 

59,422 

 

- 

 

- 

 

 

 

 

 

 

 

 

 

 

Contributed capital by former CEO

 

 

- 

 

15,854 

 

- 

 

15,854 

 

 

 

 

 

 

 

 

 

 

Net loss for the year ended 

 

 

 

 

 

 

 

 

 

March 31, 2013

 

 

 

 

 

 

(361,466)

 

(361,466)

 

 

 

 

 

 

 

 

 

 

**Balance, March 31, 2013**

**50,000,000 **

**$**

**50,000 **

**$**

**(9,146)**

**$**

**(387,046)**

**$**

**(346,192)**

Common shares issued for asset, on 

 

 

 

 

 

 

 

 

 

April 16, 2013, at $0.295 per share

15,000,000 

 

15,000 

 

4,410,000 

 

 

 

4,425,000 

 

 

 

 

 

 

 

 

 

 

Founder's shares cancelled on 

 

 

 

 

 

 

 

 

 

April 16, 2013

(25,000,000)

 

(25,000)

 

25,000 

 

 

 

- 

 

 

 

 

 

 

 

 

 

 

Common shares issued for services, on

 

 

 

 

 

 

 

 

 

June 14, 2013, at $0.25 per share

2,475,000 

 

2,475 

 

616,275 

 

 

 

618,750 

 

 

 

 

 

 

 

 

 

 

Net loss for the period ended 

 

 

 

 

 

 

 

 

 

June 30, 2013

- 

 

- 

 

- 

 

(4,597,862)

 

(4,597,862)

 

 

 

 

 

 

 

 

 

 

**Balance, June 30, 2013**

**42,475,000 **

**$**

**42,475 **

**$**

**5,042,129 **

**$**

**(4,984,908)**

**$**

**99,696 **

 

 

 

 

 

 

 

 

 

 

On September 17, 2012 the company had a 20:1 forward split, which has been retrospectively reflected above.

 

The accompanying notes are an integral part of these financial statements

7

**MASSIVE DYNAMICS, Inc.**

**(A Development Stage Company)**

**CONDENSED STATEMENTS OF CASH FLOWS**

**Unaudited**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 15, 2011

 

 

 

3 months

ended

 

3 months

ended

 

(date of

inception) to

 

 

 

June 30, 2013

 

June 30, 2012

 

June 30, 2013

 

 

 

 

 

 

 

 

** OPERATING ACTIVITIES**

 

 

 

 

 

 

**Changes in:**

 

 

 

 

 

 

 

Net loss

$

(4,597,862)

$

(25,310)

$

(4,984,908)

 

Inventory

 

- 

 

- 

 

(22,846)

 

Bad Debt

 

- 

 

- 

 

121,649 

 

Expenses paid by a related party

 

- 

 

3,655 

 

- 

 

Accounts payable

 

(2,472)

 

1,692 

 

18,564 

 

Non-cash Research & Development costs

 

4,425,000 

 

- 

 

4,425,000 

 

Shares issued for services

 

108,496 

 

20,000 

 

133,496 

 

Depreciation

 

2,117 

 

- 

 

2,823 

 

Accrued Interest

 

10,188 

 

- 

 

23,745 

 

 

 

 

 

 

 

 

**NET CASH PROVIDED USED BY OPERATING ACTIVITIES**

$

(54,534)

$

37 

$

(282,477)

 

 

 

 

 

 

 

 

**FINANCING ACTIVITIES**

 

 

 

 

 

 

 

Advances from 3rd party lender

 

70,000 

 

- 

 

435,000 

 

Capital contributed by former CEO

 

- 

 

- 

 

15,854 

**NET CASH PROVIDED BY FINANCING ACTIVITIES**

$

70,000 

$

- 

$

450,854 

 

 

 

 

 

 

 

 

**INVESTING ACTIVITIES**

 

 

 

 

 

 

 

Loans under licensing agreements - Net of payments

 

- 

 

- 

 

(121,648)

 

Fixed assets

 

- 

 

- 

 

(25,400)

**NET USED BY INVESTING ACTIVITIES**

$

- 

$

- 

$

(147,048)

 

 

 

 

 

 

 

 

**NET INCREASE (DECREASE) IN CASH**

$

15,466 

$

37 

$

21,328 

 

 

 

 

 

 

 

 

**CASH, BEGINNING OF PERIOD**

$

5,862 

$

(35)

$

- 

 

 

 

 

 

 

 

 

**CASH, END OF PERIOD**

$

21,328 

$

2 

$

21,328 

 

 

 

 

 

 

 

 

Supplemental cash flow information and noncash financing activities:

 

 

 

 

 

 

 

 

 

 

Common stock issued for Research & Development

$

4,425,000

$

-

$

4,425,000 

 

 

 

 

 

 

 

 

 

Common stock issued for services

$

618,750

$

20,000

$

643,750 

 

 

 

 

 

 

 

 

 

Income taxes

$

-

$

-

$

- 

 

The accompanying notes are an integral part of these financial statements

8

**MASSIVE DYNAMICS, Inc.**

**(A Development Stage Enterprise)**

**NOTES TO THE UNAUDITED FINANCIAL STATEMENTS**

**June 30, 2013**

**NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION**

Massive Dynamics, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on March 15, 2011.  The Company changed its fiscal year ending to be on March 31. On July 11, 2011, the Company entered into a services agreement with a communications tower operator and ceased to be a shell company.  During the year ending March 31, 2012, the Company started generating its first revenues from the business activity of providing services to communication tower operators.

In the opinion of management, the accompanying balance sheets and related interim statements of income and cash flows include all adjustments, consisting only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management's estimates and assumptions.

Interim results are not necessarily indicative of results for a full year. The information included in this Form l0-Q should be read in conjunction with information included in the Form 10-K.

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis of Presentation**

These financial statements are prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.

**Advertising**

Advertising costs are expensed as incurred.  As of June 30, 2013, advertising costs of $35,800 have been incurred. At March 31, 2012, $25,169 had been incurred.****

**Property**

The Company does not own or rent any property.  The Company rented office space for the six months from October 1, 2012 through June 30, 2013 at approximately $1,027 per month. The rental agreement was cancelled in June 2013, resulting in a rent expense of $3,081 for the 3 months ended June 30, 2013.****

**Fixed Assets**

The cost value of the Company’s 3D printers is $25,400 and has been depreciated at 33.34% per year, a rate that reflects the 3-year useful life of the assets. The value of these assets at June 30, 2013 is $22,578.  At March 31, 2013, this value was $24,694.****

**Inventory**

The Company carries inventory at cost on a first in/first out basis.  Inventory is evaluated on a quarterly basis as to salability. On January 24, 2013, the Company purchased 1,000 battery chargers for $17,565 and separately packaged for a cost of $8,075, for a per unit cost of $25.64.  At June 30, 2013, there were 891 units with a value of $22,846. The value of these units at March 31, 2013 was $22,846.

**Stock Issued for Services**

On June 14, 2013 the Company issued 2,475,000 shares to various Company advisors at $0.25 per share for a total of $618,750.  The agreements with these advisors provide that the services are to be rendered over the course of 6 months (except for one agreement, 

9

which has a term of 4 months). As a result, the cost has been amortized over 6 months, with $108,496 being amortized in the 3 months to June 30, 2013.

**Research & Development**

During the quarter ended June 30, 2013, the Company purchased a prototype 3D scanner and camera for 15,000,000 restricted common shares valued at $0.295 per share for $4,425,000. As there is no additional use to the prototype other than the research that it is currently being used for, the full cost has been expensed in the quarter to June 30, 2013.

**Revenue and Cost Recognition**

The Company had no source of revenue in the period to June 30, 2013, though in a previous year there was $5,000 of revenue. The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition.

**Cash and Cash Equivalents**

The Company considers all highly liquid investments with maturity of three months or less to be cash equivalents. As of June 30, 2013, the Company had cash on hand in the amount of $21,328. At March 30, 2013, the Company had cash in hand of $5,682.

**Income Taxes**

The Company follows the liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances.  Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.  

**Net Loss per Share**

Basic loss per share includes no dilution and is computed by dividing loss available to common stockholders by the weighted average number of common shares outstanding for the period.  Dilutive loss per share reflects the potential dilution of securities that could share in the losses of the Company.  Because the Company does not have any potentially dilutive securities, the accompanying presentation is only of basic loss per share.

**Recent Accounting Pronouncements**

The company has evaluated all the recent accounting pronouncements and believes that none of them will have a material effect on the company’s financial statement.

**NOTE 3 – GOING CONCERN**

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  As shown in the accompanying financial statements, the Company has incurred net losses and negative cash flows from operating activities for the period ending June 30, 2013 and has an accumulated deficit of $4,984,908 as of June 30, 2013.  The Company has relied upon its officers to fund its ongoing operations to date, and expects to continue to do so.  These factors raise substantial doubt about the Company’s ability to continue as a going concern until it completes its financing activities. The Company’s officers intend on borrowing money, restructuring debt, reducing or delaying expenditures and/or increasing ownership equity to ensure the Company continues operations. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

The officers and directors have committed to advancing certain operating costs of the Company, including Legal, Audit, Transfer Agency and Edgarizing costs

**NOTE 4 - THIRD PARTY LOAN PAYBLE**

On January 15, 2013, the Company signed a credit agreement with a third party lender whereby the Company may borrow an amount up to $500,000, repayable one year after the date of the advance, at a 10% rate of interest. At June 30, 2013 and March 31, 2013 the Company had borrowed $435,000 and $365,000 respectively.

10

**NOTE 5 - FAIR VALUE OF FINANCIAL INSTRUMENTS**

The Company has determined the estimated fair value of financial instruments using available market information and appropriate valuation methodologies.  The fair value of financial instruments classified as current assets or liabilities approximate their carrying value due to the short-term maturity of the instruments.

**NOTE 6 – CAPITAL STOCK**

The Company’s total authorized stock is 75,000,000 shares of common stock with a par value of $0.001 per share.  No preferred shares have been authorized or issued.

On June 30, 2013, the Company had 42,475,000 shares of common stock issued and outstanding. On March 31, 2013, the Company had 50,000,000 shares of common stock issued and outstanding.

On March 21, 2011, 100,000,000 shares of common stock were issued to three founders at $0.00005 for an equivalent of $5,000 in services.

On June 29, 2012, 9,422,500 shares of common stock to Globex Transfer for professional services rendered towards DTC filing and eligibility.  These shares were issued for an equivalent of $20,000 of services at $0.002125 per share.

Upon the change of control on September 10, 2012, the Company and its majority shareholder agreed to cancel 59,422,500 shares of common stock.

On September 17, 2012, the Company effected a 20:1 forward stock split.  This split has been retroactively reflected throughout.

On April 16, 2013 the Company issued 15,000,000 restricted shares of the Company at $0.295 per share to Mr. Jonathan J Howard, to acquire certain prototype 3D technologies. Upon conclusion of this purchase, the Company's largest shareholder, Kylemore Corp., agreed to return 25,000,000 common shares for cancellation.

On June 14, 2013, the Company issued 2,475,000 shares to various Company advisors for services, at $0.25 per share.

**NOTE 7 – RELATED PARTY TRANSACTIONS**

During the period from inception on March 15, 2011 through September 10, 2012, the Company entered into promissory notes with the original******sole officer of the Company, Donald Calabria.  The notes are for reimbursement of payments made by Mr. Calabria on the Company’s behalf. As of March 31, 2012 the amount owed to Mr. Calabria was $12,201. On September 10, 2012, Mr. Calabria forgave the debt owed in the amount of $15,854.  The Company considers the forgiven amount to be contributed capital and has accounted for it accordingly.

**NOTE 8 – INCOME TAXES**

We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. Under ASC 740, *Accounting for Uncertainty in Income Taxes*,**when it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit.  We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carry forwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carry forward period.

The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate to the income tax amount recorded as of June 30, 2013 and 2012 are as follows: 

 

**June 30, 2013**

**March 31, 2013**

Net operating loss carry forward

4,984,908  

387,046  

Effective Tax rate

35%

35%

Deferred Tax Assets

1,744,718  

135,466  

Less: Valuation Allowance

(1,744,718) 

(135,466) 

Net deferred tax asset

$

0  

$

0.  

 

11

The net federal operating loss carry forward will expire between 2032 and 2033.  This carry forward may be limited upon the consummation of a business combination under IRC Section 381.

**NOTE 9 - SUBSEQUENT EVENTS**

The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and has determined that no such events have occurred.

12

**Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.**

**FORWARD-LOOKING STATEMENTS**

**NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Quarterly Report of Massive Dynamics, Inc., on Form 10-Q contains forward-looking statements. Such forward-looking statements contained herein involve risks and uncertainties, including statements as to:

*our future operating results;

*our business prospects;

*any contractual arrangements and relationships with third parties;

*technological innovations in our industry;

*the dependence of our future success on the general economy;

*any possible financings; and

*the adequacy of our cash resources and working capital.

These forward-looking statements can generally be identified as such because the context of the statement will include words such as we "believe, "anticipate," "expect," "estimate" or words of similar meaning. Similarly, statements that describe our future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which are described in close proximity to such statements and which could cause actual results to differ materially from those anticipated as of the date of this report. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. 

*Operations*

We were founded as a Nevada corporation on March 15, 2011. The incorporation effort included the Company issuing 100,000,000 shares (post-split equivalent) of common stock to our founders.

The Company was previously engaged in the business of providing services to cellular phone tower companies. The Company then changed its business focus to selling cellular phone accessories. On April 16, 2013, we purchased certain a printer prototype 3D scanner and camera valued at $15,000 for 15,000,000 restricted common shares from RV3D, LLC (“RV3D”), a company owned by our CEO, Jonathan Jay Howard. As a result of this transaction, Mr. Howard was named CEO of the Company and we entered the 3D imaging technology business. 

Our independent registered auditors included an explanatory paragraph in their opinion on our financial statements for the period from inception on March 15, 2011 through June 30, 2013 that states that this lack of resources causes substantial doubt about our ability to continue as a going concern. To maintain operations as a going concern, we are keeping day-to-day operating costs to a minimum and seeking leads for new revenue opportunities. We hope that we can raise sufficient capital through operations and financing activities to dispel such concerns and qualifications.

We have developed technology around an imaging technology known as "structured light" that allows for the rapid capture and processing of the digital signal capture 3D images of objects or real time 3D video of a desired target.Utilizing structured light technology, an object is first placed on a rotating stage that is marked in the edge in degrees for calibration. The subject is then rotated and an initial 360 degree texture image (picture) is taken, followed by the taking of a structured light image in the same manner. A structured light image is a calibrated grid of lines that is projected on the subject. These projected lines deviate as they fall over the subject. An image of these lines is captured. Real View 3D software can extract Z-axis data from these line deviations and a topographical map is created. To image a complete subject, the subject is rotated 360 degrees for the image and then another 360 degree rotation for capturing the structured light for the Z axis map information. The resulting Z-axis map and the image are then fused into a 360 degree renderable image. This image can then be exported into many other formats for viewing.

*Results of Operations*

13

Revenue

Revenue was $0 for the three months ended June 30, 2013 and June 30, 2012.  The Company has discontinued its prior business of operating cellular phone towers and entered into the 3D imaging business. We are unsure of the revenues that we may generate from the 3D imaging business, if any.

Expenses

Expenses of operation increased to $4,597,862 in the three months ended June 30, 2013. In June 30, 2012, our operating expenses were $25,310. The greatest factor in this increase was the purchase of the RV3D assets which have been classified as a research and development expense. 

Net Loss 

Our net loss for the three months ended June 30, 2013 was $4,567,862. For the quarter ended June 30, 2012, our net loss was $25,310. The greatest factor in this increase was the purchase of the RV3D assets which have been classified as a research and development expense for the quarter ended June 30, 2013. 

*Liquidity*

As of June 30, 2013, we had cash of $21,328, compared to cash of $5,862 for the quarter ended March 31, 2013. 

We have an agreement with Infinite Funding, Inc. (“Infinite”) whereby we can borrow up to $500,000 by putting promissory notes to Infinite. At June 30, 2013, we had borrowed $435,000 under this agreement. These loans have a maturity of one year and carry an interest rate of 10% per year.

*Off-Balance Sheet Arrangements   *

We have no off-balance sheet arrangements as of June 30, 2013.

 

**Item 3. Quantitative and Qualitative Disclosures about Market Risk.**

 

Because the Company is a smaller reporting company, it is not required to provide the information required by this Item 3.

**Item 4. Controls and Procedures**

***Disclosure Controls and Procedures***

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that are designed to ensure that information that would be required to be disclosed in Exchange Act reports is recorded, processed, summarized and reported within the time period specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including to our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. . Based upon the evaluation by our principal executive and principal financial officer, of those controls and procedures, performed as of the end of the period covered by this report, our principal executive and principal financial officer concluded that our disclosure controls and procedures were not effective due to our over reliance on consultants in our accounting and financial statement closing processes.  To address the need for more effective internal controls, management has plans to improve the existing controls and implement new controls as our financial position and capital availability improves.

**Changes in internal controls**

There were no changes in our internal control over financial reporting that occurred during the fiscal quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

14

**PART II — OTHER INFORMATION**

 

**Item 1. Legal Proceedings.**

 

We are not currently a party to any legal proceedings. From time to time in the future, we may be party to various legal proceedings. 

 

**Item 1A. Risk Factors.**

 

There have been no material changes from the risk factors previously disclosed in the Company’s Form 10-K filed with the Commission on August 15, 2013, which risk factors are incorporated by reference herein. Investors are encouraged to read and review the risk factors included in the Form 10-K prior to making an investment in the Company.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

On April 16, 2013, the Company issued 15,000,000 restricted shares of the Company to Mr. Jonathan J. Howard to acquire the RV3D assets. 

 

**Item 3.  Defaults Upon Senior Securities.**

 

None.

 

**Item 4.  Mine Safety Disclosures.**

Not applicable.

 

**Item 5.  Other Information**

None.

**Item 6.  Exhibits.**

 

Exhibit No. 

Description

3.1

Articles of Incorporation (incorporated by reference to Exhibit 3.1 to our Form 10 filed on May 2, 2011)

3.2

By–Laws (incorporated by reference to Exhibit 3.2 filed to our Form 10 filed on May 2, 2011)

10.1

Services Agreement between the Company and Horizon Towers, LLC, dated July 11, 2011 (incorporated by reference to Exhibit 10.1 of our Form 10 filed on May 2, 2011)

10.2

Independent Contractor Agreement dated as of November 8, 2011 with Charles White (incorporated by reference to Exhibit 10.2 of our Form S-1/A filed on November 21, 2011)

10.3

Asset Purchase Agreement dated April 16, 2013 (incorporated by reference to Exhibit 10.1 to our Form 8-K filed on May 8, 2013)

10.4

Master Credit Agreement with Infinite Funding, Inc. (incorporated by reference to Exhibit 10.4 to our Form 10-K filed on August 15, 2013)

31.1

Certifications of the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

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

15

**SIGNATURES**

 

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, thereunto duly authorized.

 

**Massive Dynamics, Inc.**

 

 

 

Date: August 22, 2013

By:

/s/ Jonathan Jay Howard

 

 

Jonathan Jay Howard

 

 

Chief Executive Officer, Chief Financial Officer, and sole director

(Principal Executive Officer and Principal Financial Officer)

 

 

 

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