UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-K



[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


FOR THE FISCAL YEAR ENDED JULY 31, 2014


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


For the transition period from ___________ to ___________


COMMISSION FILE NO.  333-193467


DANLAX, CORP.

 (Exact name of registrant as specified in its charter)



Nevada

(State or Other Jurisdiction of Incorporation or Organization)


33-1229046

IRS Employer Identification Number

7389

Primary Standard Industrial Classification Code Number



Danlax, Corp.

Transportnaya Street, 58-7

Nizhneudinsk, Russia 665106

Tel. (702) 605-4427




 (Address and telephone number of principal executive offices)



Securities registered pursuant to Section 12(b) of the Act: None


Securities registered pursuant to Section 12(g) of the Act: None



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Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X]


Indicate by check mark if the registrant is not  required  to file  reports  pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]


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 shorter period that the registrant as required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]


Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K  is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Yes [ ] No [X]


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one):


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 Act) Yes [X ] No [  ]


As of October 28, 2014, the registrant had 11,740,000 shares of common stock issued and outstanding. No market value has been computed based upon the fact that no active trading market has been established as of October 28, 2014.



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TABLE OF CONTENTS



 

PART 1

 

ITEM 1

DESCRIPTION OF BUSINESS

4

ITEM 1A    

RISK FACTORS

4

ITEM 2   

DESCRIPTION OF PROPERTY

4

ITEM 3   

LEGAL PROCEEDINGS                                             

4

ITEM 4

MINE SAFETY DISCLOSURES

4

 

PART II

 

ITEM  5   

MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS      

5

ITEM  6  

SELECTED FINANCIAL DATA                                       

5

ITEM  7 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

5

ITEM 7A      

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK   

7

ITEM 8

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                  

8

ITEM 9    

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

17

ITEM 9A (T)

CONTROLS AND PROCEDURES

17

 

PART III

 

ITEM 10

DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS OF THE COMPANY

17

ITEM 11

EXECUTIVE COMPENSATION

19

ITEM 12

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

20

ITEM 13

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

20

ITEM 14

PRINCIPAL ACCOUNTANT FEES AND SERVICES                       

20

 

PART IV

 

ITEM 15

EXHIBITS

21




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PART I


ITEM 1. DESCRIPTION OF BUSINESS


FORWARD-LOOKING STATEMENTS


This annual report contains forward-looking statements. These statements relate to future events or our future financial performance. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.


 GENERAL

Danlax, Corp. was incorporated in the State of Nevada on April 10, 2013 and established a fiscal year end of July 31. We do not have revenues, have minimal assets and have incurred losses since inception. We are a development-stage company formed to develop and sell mobile games for the Apple and Android platforms. We have recently started our operation. As of today, we have developed our business plan and developed concepts of our first mobile game. We just started to develop a concept for our first mobile game and there is no guarantee that we ever develop this game. We will develop other mobile games when/if our first mobile game is successful and we have available funds for further development.

  

A mobile game is a video game played on a feature phone, smartphone PDA, tablet computer, portable media player or calculator. Mobile games are played using the technology present on the device itself. For networked games, there are various technologies in common use. Examples include text message (SMS), multimedia message (MMS) or GPS location identification. However, there are non-networked applications that simply use the device platform to run the game software. Mobile games are usually downloaded via the mobile operator’s network, but in some cases are also loaded in the mobile handsets when purchased, via infrared connection, Bluetooth, or memory card.


ITEM 1A.  RISK FACTORS

 

Not applicable to smaller reporting companies.

 


ITEM 2.  DESCRIPTION OF PROPERTY


We do not own any real estate or other properties.  


ITEM 3.  LEGAL PROCEEDINGS


We are not currently involved in any legal proceedings and we are not aware of any pending or potential legal actions.

ITEM 4.  MINE SAFETY DISCLOSURES


None.




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PART II


ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS      


Market Information


There is a limited public market for our common shares.  Our common shares are quoted on the OTC Bulletin Board under the symbol “DNLX”.  Trading in stocks quoted on the OTC Bulletin Board is often thin and is characterized by wide fluctuations in trading prices due to many factors that may be unrelated to a company’s operations or business prospects.  We cannot assure you that there will be a market in the future for our common stock.

 

OTC Bulletin Board securities are not listed or traded on the floor of an organized national or regional stock exchange.  Instead, OTC Bulletin Board securities transactions are conducted through a telephone and computer network connecting dealers in stocks.  OTC Bulletin Board issuers are traditionally smaller companies that do not meet the financial and other listing requirements of a regional or national stock exchange.


Number of Holders


As of October 21, 2014, the 11,740,000 issued and outstanding shares of common stock were held by a total of 30 shareholders of record.


Dividends

 

No cash dividends were paid on our shares of common stock during the fiscal years ended July 31, 2014.  We have not paid any cash dividends since our inception and do not foresee declaring any cash dividends on our common stock in the foreseeable future. 


Recent Sales of Unregistered Securities


None.


Purchase of our Equity Securities by Officers and Directors


None.


Other Stockholder Matters


None.



ITEM 6. SELECTED FINANCIAL DATA                                       


Not applicable.


ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs.  Our actual results could differ materially from those discussed in the forward looking statements.   Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.



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RESULTS OF OPERATIONS


We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.


We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.


FISCAL YEAR ENDED JULY 31, 2014 COMPARED TO PERIOD APRIL 10, 2013 (DATE OF INCEPTION) TO JULY 31, 2013.


Our net loss for the fiscal year ended July 31, 2014 was $26,979 compared to a net loss of $206 for the period April 10, 2013 (Date of Inception) to July 31, 2013. During fiscal year ended July 31, 2014, the Company did not generate any revenue.


During the fiscal year ended July 31, 2014, we incurred professional fees and general and administrative expenses of $26,979 compared to $206 in general and administrative expenses incurred during the period April 10, 2013 (Date of Inception) to July 31, 2013.  

 

Expenses incurred during fiscal year ended July 31, 2014 compared to the period April 10, 2013 (Date of  Inception) to July 31, 2013 increased primarily due to the  increased  scale and scope  of  business  operations.  General and administrative expenses generally include corporate overhead, financial and administrative contracted services, marketing, and consulting costs.


The weighted average  number of shares  outstanding  was  9,593,479  for the fiscal year ended July 31, 2014 compared to 9,000,000 for the period April 10, 2013 (Date of  inception) to  July 31, 2013.


LIQUIDITY AND CAPITAL RESOURCES


FISCAL YEAR ENDED JULY 31, 2014


As of July 31, 2014, our current assets were $9,521 and our total liabilities were $306. As of July 31, 2014, current assets were comprised of $9,521 in cash. As of July 31, 2014, total liabilities were comprised of $306 in advance from related party. As of July 31, 2014, our total assets were $9,521 comprised entirely of current assets.  Stockholders’ equity was $9,215 as of July 31, 2014.  


Cash Flows from Operating Activities


We have not generated positive cash flows from operating activities. For the fiscal year ended July 31, 2014, net cash flows used in operating activities was $26,979 consisting of a net loss of $26,979. Net cash flows used in operating activities was $206 for the period from April 10, 2013 (Date of Inception) to July 31, 2013.



Cash Flows from Financing Activities


We have financed our operations primarily from either advancements or the issuance of equity and debt instruments. For the fiscal year ended July 31, 2014 net cash provided by financing activities was $27,400, received from proceeds from issuance of common stock.  For the period from April 10, 2013(Date of Inception) to July 31, 2013, net cash provided by financing activities was $9,306    received from proceeds from issuance of common stock and from proceeds  from related party.



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PLAN OF OPERATION AND FUNDING


We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.


Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next six months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.


MATERIAL COMMITMENTS


As of the date of this Annual Report, we do not have any material commitments.


PURCHASE OF SIGNIFICANT EQUIPMENT


We do not intend to purchase any significant equipment during the next twelve months.


OFF-BALANCE SHEET ARRANGEMENTS


As of the date of this Annual Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.


GOING CONCERN


The independent auditors' report accompanying our July 31, 2014 and July 31, 2013 financial statements contains an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.


ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK   


Not applicable to smaller reporting companies.




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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                






Report of Independent Registered Public Accounting Firm

F-1


Balance Sheets as of July 31, 2014 and  July 31, 2013

F-2


Statements of Operations the year  ended July 31, 2014  and for the  period April 10, 2013 (Date of Inception) to July 31, 2013

F-3


Statement of Stockholders’ Equity

F-4


Statements of Cash Flows for the year  ended July 31, 2014 and for the period April 10, 2013(Date of Inception) to July 31, 2013

F-5


Notes to the Financial Statements

F-6– F-8


 







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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and

Stockholders of Danlax Corp


We have audited the accompanying balance sheets of Danlax Corp   as of July 31, 2014 and 2013, and the related statements of operation, stockholders’ equity, and cash flows for the year ended July 31, 2014 and for the period April 10, 2013 (Date of Inception) to July 31. 2013. Danlax Corp management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Danlax Corp as of July 31, 2014 and 2013, and the results of its operations and its cash flows for the year ended July 31, 2014 and the period April 10, 2013 (Date of Inception) to July 31 .2013 in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, The Company is in the development stage, has not earned significant revenue, has suffered net losses and has had negative cash flows from operating activities for the period April 10, 2013 (Date of Inception) to July 31, 2014. These matters raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans concerning these matters are also described in Note 2. The financial statements do not include any adjustments to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.


/s/ KLJ & Associates, LLP

KLJ & Associates, LLP

St. Louis Park, Minnesota

October 27, 2014


1660 Highway 100 South

Suite 500

St. Louis Park, Minnesota  55416

630.277.2330

F-1








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DANLAX, CORP.

  BALANCE SHEETS

 

JULY 31, 2014

JULY 31, 2013

ASSETS

 

 

Current Assets

 

 

 

Cash

$                     9,521

$      9,100

 

Total current assets

9,521

9,100

 

 

 

Total assets                                                         

$                    9,521

$      9,100

LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities

Current liabilities

 

Loans from Shareholders

306

306

Total liabilities

306

306

 

Stockholders’ Equity

  

Common stock, $0.001 par value, 75,000,000 shares authorized;

 

 

 

11,740,000 and 9,000,000 shares issued and outstanding as of July 31, 2014 and 2013 respectively

11,740

9,000

 

Additional paid-in-capital

24,660

-

 

Accumulated  deficit accumulated during the development stage

(27,185)

(206)

Total stockholders’ equity

9,215

8,794

Total liabilities and stockholders’ equity

$           9,521

$     9,100









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



F-2



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DANLAX, CORP.

  STATEMENT OF OPERATIONS

 

 

YEAR ENDED JULY 31, 2014

 

FOR THE PERIOD FROM INCEPTION (APRIL 10, 2013) to JULY 31, 2013

Revenues

 

$                   -

 

$                       -

 

 

 

 

 

Operating Expenses

 

 

 

 

General and administrative expenses

 


26,979

 


206

Total operating expenses

 

26,979

 

206

 

 

 

 

 

Net loss from operations

 

(26,979)

 

(206)

Net loss  

 

$         (26,979)

 

$          (206)

Loss per common share – Basic

 

-

 

-

Weighted Average Number of Common Shares Outstanding-Basic

 

9,595,123

 

9,000,000












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



F-3



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DANLAX, CORP.

STATEMENT OF STOCKHOLDERS’ EQUITY

FOR THE PERIOD FROM INCEPTION (APRIL 10, 2013) TO JULY 31, 2014

 

Number of

common

Shares


Amount

Additional

Paid-in-

Capital

Accumulated Deficit



Total

Balance at inception

-

$           -  

$               -  

$                      -  

$              -  

 Common shares issued for cash  at $0.001

9,000,000

9,000

-

-

9,000

 Net loss

-

-

-

(206)

(206)

Balance as of  July 31, 2013

9,000,000

$  9,000

$               -

$                 (206)

$    8,794

 Common shares issued for cash  at $0.01

2,740,000

2,740

24,660

-

27,400

 Net loss

-

-

-

(26,979)

(26,979)

Balance as of  July 31, 2014

11,740

$ 11,740

$      24,660

(27,185)

$  9,215





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



F-4



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DANLAX, CORP.

 STATEMENTS OF CASH FLOWS

 

YEAR ENDED JULY 31, 2014

FOR THE PERIOD FROM INCEPTION (APRIL 10, 2013) to JULY 31, 2013

Operating Activities

 

 

 

Net loss

$         (26,979)

$                  (206)

 

Net cash provided by (used in) operating activities

(26,979)

(206)

Financing Activities

 

 

 

Sale of common stock

27,400

9,000

 

Loans from Shareholders

-

306

 

Net cash provided by financing activities

27,400

9,306


Net increase (decrease) in cash and equivalents

421

9,100

Cash and equivalents at beginning of the period

9,100

-

Cash and equivalents at end of the period

$          9,521

$                9,100

 

Supplemental cash flow information:

 

 

 

Cash paid for:

 

 

 

Interest                                                                                               

$                 -                          

$                       -

 

Taxes                                                                                           

$                 -

$                       -

Non-Cash Financing Activities

                 -

$                       -






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


F-5



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DANLAX, CORP.

NOTES TO THE  FINANCIAL STATEMENTS

JULY 31, 2014


NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Organization and Description of Business

DANLAX, CORP. (“the Company”) was incorporated under the laws of the State of Nevada, U.S. on April 10, 2013.  The Company is a start-up company.  Since inception through JULY 31, 2014 the Company has not generated any revenue and has accumulated losses of $27,185. Company is in the business of mobile games development.


Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.


The Company's bank accounts are deposited in insured institutions. The funds are insured up to $250,000. At JULY 31, 2014 the Company's bank deposits did not exceed the insured amounts.


Basic Income (Loss) Per Share

The Company computes loss per share in accordance with “ASC-260”, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period.  Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.


Dividends

The Company has not adopted any policy regarding payment of dividends. No dividends have been paid during any of the periods shown.


Income Taxes

The Company follows the liability method of accounting for income taxes.  Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences).  The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.


Advertising Costs

The Company’s policy regarding advertising is to expense advertising when incurred. The Company incurred advertising expense of $0 during the period ended JULY 31, 2014.


Accounting Basis

The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting).  The Company has adopted July 31 fiscal year end.


Impairment of Long-Lived Assets

The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those


 F-6



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DANLAX, CORP.

NOTES TO THE  FINANCIAL STATEMENTS

JULY 31, 2014


NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED


assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.


Recent accounting pronouncements

On June 10, 2014, the Financial Accounting Standards Board ("FASB") issued update ASU 2014-10, Development Stage Entities (Topic 915).   Amongst other things, the amendments in this update removed the definition of development stage entity from Topic 915, thereby removing the distinction between development stage entities and other reporting entities from US GAAP.  In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information on the statements of income, cash flows and shareholders equity, (2) label the financial statements as those of a development stage entity;  (3) disclose a description of the development stage activities in which the entity is engaged and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage.  The amendments are effective for annual reporting periods beginning after December 31, 2014 and interim reporting periods beginning after December 15, 2015, however entities are permitted to early adopt for any annual or interim reporting period for which the financial statements have yet to be issued.  The Company has elected to early adopt these amendments and accordingly have not labeled the financial statements as those of a development stage entity and have not presented inception-to-date information on the respective financial statements.


Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles 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 the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.


Stock-Based Compensation

As of JULY 31, 2014 the Company has not issued any stock-based payments to its employees. Stock-based compensation is accounted for at fair value in accordance with SFAS No. 123 and 123(R) (ASC 718).  To date, the Company has not adopted a stock option plan and has not granted any stock options.


Revenue Recognition

The Company will recognize revenue when products are fully delivered or services have been provided and collection is reasonably assured.


NOTE 2 – GOING CONCERN


The accompanying financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern.  However, the Company had no revenues as of July 31, 2014.  The Company currently has limited working capital, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time.  


Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.



F-7



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DANLAX, CORP.

NOTES TO THE  FINANCIAL STATEMENTS

JULY 31, 2014


NOTE 3 – COMMON STOCK


The Company has 75,000,000 common shares authorized with a par value of $ 0.001 per share. On July 25, 2013, the Company issued 9,000,000 shares of its common stock at $0.001 per share for total proceeds of $9,000. In May 2014, the Company issued 2,740,000 shares of its common stock at $0.01 per share for total proceeds of $27,400


As of JULY 31, 2014, the Company had 11,740,000 shares issued and outstanding.


NOTE 4 – RELATED PARTY TRANSACTIONS


On July 25, 2013, the Company sold 9,000,000 shares of common stock at a price of $0.001 per share to its director.


Since inception through JULY 31, 2014, the Director loaned $306 to the Company to pay for incorporation expenses. This loan is non-interest bearing, due upon demand and unsecured.


NOTE 5 – INCOME TAXES


As of July 31, 2014, the Company had net operating loss carry forwards of approximately $27,185 that may be available to reduce future years’ taxable income in varying amounts through 2033. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.


The provision for Federal income tax consists of the following:


 

 

July 31,

2014

 

 

July 31, 2013

Federal income tax benefit attributable to:

 

 

 

 

 

Current Operations

$

9,173



70

Less: valuation allowance

 

(9,173)



(70)

Net provision for Federal income taxes

$

-



-


The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:


 

 

July 31,

2014

 

 

July 31, 2013

Deferred tax asset attributable to:

 

 

 

 

 

Net operating loss carryover

$

9,243



70

Less: valuation allowance

 

(9,243)



(70)

Net deferred tax asset

$

-



-


Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $27,185 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.



NOTE 6 – SUBSEQUENT EVENTS


The Company has evaluated subsequent events from JULY 31, 2014 to the date the financial statements were issued and has determined that there are no items to disclose.

  

F-8



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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE


None.


ITEM 9A(T). CONTROLS AND PROCEDURES


Management’s Report on Disclosure Controls and Procedures


Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.


An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of July 31, 2014. Based on that evaluation, our management concluded that our disclosure controls and procedures were effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Such officer also confirmed that there was no change in our internal control over financial reporting during the fiscal year period ended July 31, 2014 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.



PART III


Item 10. Directors, Executive Officers, Promoters and Control Persons of the Company


DIRECTORS AND EXECUTIVE OFFICERS


The name, address, age and position of our present officers and directors are set forth below:

Name and Address 

Age 

Position(s) 

Ivan Krikun

Transportnaya Street, 58-7,

Nizhneudinsk, Russia 665106

30 

President, Principal Executive Officer, Secretary, Treasurer,

 

Principal Financial Officer, Principal Accounting Officer

 

and sole member of the Board of  Directors. 


The person named above has held her offices/positions since inception of our company and are expected to hold her offices/positions until the next annual meeting of our stockholders.



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Biographical Information and Background of officers and directors


Ivan Krikun has acted as our President, Treasurer, Secretary and sole Director since our incorporation on April 10, 2013. Mr. Krikun owns 76.66% of the outstanding shares of our common stock. Mr. Krikun graduated from Law School of Baikal State University of Economics and Law in 2007. After graduation he set up a grocery distribution company. Since 2007 Mr. Krikun has been working as CEO of this company.  Mr. Krikun intends to devote 20 hours a week of his time to planning and organizing activities of Danlax, Corp.


During the past ten years, Mr. Krikun has not been the subject to any of the following events:


    1. Any bankruptcy petition filed by or against any business of which Mr. Krikun was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time.

    2. Any conviction in a criminal proceeding or being subject to a pending criminal proceeding.

     3. An order, judgment, or decree, not subsequently reversed, suspended or vacated, or any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting Mr. Krikun’s involvement in any type of business, securities or banking activities.

     4. Found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Future Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

5.  Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right to engage in any activity described in paragraph (f)(3)(i) of this section, or to be associated with persons engaged in any such activity;

6.  Was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;

7.  Was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:

i.

Any Federal or State securities or commodities law or regulation; or

ii.

Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or

iii.

Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

8.  Was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.



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AUDIT COMMITTEE

We do not have an audit committee financial expert. We do not have an audit committee financial expert because we believe the cost related to retaining a financial expert at this time is prohibitive. Further, because we have no operations, at the present time, we believe the services of a financial expert are not warranted.



ITEM 11. EXECUTIVE COMPENSATION


The table below summarizes all compensation awarded to, earned by, or paid to our executive officers by any person for all services rendered in all capacities to us for the fiscal period from our incorporation on April 10, 2013 to July 31, 2014.



SUMMARY COMPENSATION TABLE


Summary Compensation Table


Name and 

Principal

Position

 

Year

 

Salary

($)

Bonus

($)

Stock

Awards

($)

Option

Awards

($)

Non-Equity

Incentive Plan

Compensation

($)

Nonqualified

Deferred

Compensation

($)

All Other

Compensation

($)

Total

($)

 

 

 

 

 

 

 

 

 

 

 

 

Ivan Krikun, President and Treasurer

 

2013

 

 

-0-

 

-0-

 

-0-

 

-0-

 

-0-

 

-0-

 

-0-

 

-0-

2014




There are no current employment agreements between the company and its sole officer. The compensation discussed herein addresses all compensation awarded to, earned by, or paid to our named executive officer. There are no other stock option plans, retirement, pension, or profit sharing plans for the benefit of our officers and directors other than as described herein.


CHANGE OF CONTROL


As of July 31, 2014, we had no pension plans or compensatory plans or other arrangements which provide compensation in the event of a termination of employment or a change in our control.





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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS


The following table provides certain information regarding the ownership of our common stock, as of October 21, 2014 and as of the date of the filing of this annual report by:

 

 

 

each of our executive officers;

 

 

each director;

 

 

each person known to us to own more than 5% of our outstanding common stock; and

 

 

all of our executive officers and directors and as a group.


Title of Class

 

Name and Address of

Beneficial Owner

 

Amount and Nature of 

Beneficial Ownership

 

Percentage

 

 

 

 

 

 

 

 

 

Common Stock

 

Ivan Krikun

Transportnaya Street, 58-7, Nizhneudinsk, Russia 665106

 

9,000,000 shares of common stock (direct)

 

 

76.66

%

All officers and directors (1 person)

 

 

 

9,000,000 shares of common stock

 

 

76.66

%



The percent of class is based on 11,740,000 shares of common stock issued and outstanding as of the date of this annual report.



ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS


During the year ended July 31, 2014, we had not entered into any transactions with our sole officer or director, or persons nominated for these positions, beneficial owners of 5% or more of our common stock, or family members of these persons wherein the amount involved in the transaction or a series of similar transactions exceeded the lesser of $120,000 or 1% of the average of our total assets for the last three fiscal years.


On July 25, 2013, the Company issued 9,000,000 shares of common stock, to the sole officer and director, for $9,000 ($0.001/share).  

Since inception through July 31, 2014, the Director loaned $306 to the Company to pay for incorporation expenses. This loan is non-interest bearing, due upon demand and unsecured.



ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 


During  fiscal year ended July 31, 2014, we incurred  approximately  $6,000 in fees to our principal independent accountants for professional services rendered in connection  with the audit of our financial statements and for the  quarterly reviews of our financial  statements. 




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ITEM 15. EXHIBITS


The following exhibits are filed as part of this Annual Report.



Exhibits:


31.1

Certification of Chief Executive Officer  and Chief Financial Officer pursuant to Section 302(a) of the Sarbanes-Oxley  Act


32.1   

Certification   of  Chief   Executive   Officer  and  Chief Financial Officer Under Section 1350 as   Adopted Pursuant  Section 906 of the Sarbanes-Oxley Act.


101.INS

  

XBRL Instance Document

 

 

101.SCH

  

XBRL Taxonomy Extension Schema Document

 

 

101.CAL

  

XBRL Taxonomy Extension Calculation Linkbase Document

 

 

101.DEF

  

XBRL Taxonomy Extension Definition Document

 

 

101.LAB

  

XBRL Taxonomy Extension Label Linkbase Document

 

 

101.PRE

  

XBRL Taxonomy Extension Presentation Linkbase Document




SIGNATURES


In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


 

DANLAX, CORP.

Dated: October 28, 2014

By: /s/ Ivan Krikun

 

Ivan Krikun, President, Principal Executive and Financial and Accounting Officer


                                       







          




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