UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 April 30, 2010

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

Commission File Number: 333-138951
 
BLINK COUTURE, INC .
 (Exact name of registrant as specified in its charter)

Delaware
98-0568153
(State of organization)
(I.R.S. Employer Identification No.)

   c/o Regent Private Capital, LLC
152 West 57 th Street, 9 th Floor
New York, New York 10019
(Address of principal executive offices)

(212) 792-5300
(Registrant’s telephone number, including area code)

Not Applicable
(Former address if changed since last report)

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 o

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).   Yes  o   No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
             
Large Accelerated
Filer   o
 
Accelerated Filer   o
 
Non-Accelerated Filer  o
(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 o

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

The registrant had 393,169 shares of common stock, par value $0.0001 per share, outstanding at June 11, 2010.

 
 

 
 
TABLE OF CONTENTS
 

 
PART I - FINANCIAL INFORMATION

ITEM 1.
FINANCIAL STATEMENTS
  3
ITEM 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
10
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
12
ITEM 4T.
CONTROLS AND PROCEDURES
12
     
PART II - OTHER INFORMATION
     
ITEM 1.
LEGAL PROCEEDINGS
13
ITEM 1A.
RISK FACTORS
13
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
13
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES
13
ITEM 4.
RESERVED
13
ITEM 5.
OTHER INFORMATION
13
ITEM 6.
EXHIBITS
13
     
SIGNATURES
  14
EXHIBIT 10.11
 
EXHIBIT 31.1
 
EXHIBIT 32.1
 
 
 
2

 
 
PART I – FINANCIAL INFORMATION
 
ITEM 1.   FINANCIAL STATEMENTS  

BLINK COUTURE, INC.
BALANCE SHEETS

   
April 30,
   
July 31,
 
(in   US$)
 
2010
   
2009
 
   
(Unaudited)
   
(Audited)
 
Current Assets
           
Cash
  $ -     $ -  
Prepaid Expense
           
Inventory
           
Total Current Assets
           
                 
Property and Equipment (net)
           
                 
TOTAL ASSETS
  $ -     $ -  
                 
Current Liabilities
               
Accounts Payable
  $ 1,500     $ 1,075  
Accrued Interest
    7,181       2,763  
Notes Due to Related Parties
    141,125       77,653  
Total Current Liabilities
    149,806       81,491  
                 
Total Liabilities
    149,806       81,491  
                 
Stockholders Equity
               
Preferred stock, ($.0001 par value, 20,000,000 shares authorized;  none issued and outstanding)
           
Common stock, ($.0001 par value, 100,000,000 shares authorized; 393,169 shares outstanding as of April 30, 2010 and July 31, 2009)
    2,064       2,064  
Additional Paid-in Capital
    71,662       71,662  
Retained Deficit
    (223,532 )     (155,217 )
Total Stockholders Equity
    (149,806 )     (81,491 )
Total Liabilities & Stockholders Equity
  $ -     $ -  

See accompanying notes to financial statements

3

 
BLINK COUTURE, INC.
STATEMENTS OF OPERATIONS

   
Three Months Ended
   
Nine Months Ended
   
October 23, 2003 thru
 
   
April 30,
   
April 30,
   
April 30,
   
April 30,
   
April 30, 2010
 
(in   US$)
 
2010
   
2009
   
2010
   
2009
   
Since Inception
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
                               
Revenues
  $ -     $ -     $ -     $ -     $ -  
                                         
Operating Expenses
                                       
Amortization
                            741  
General and Administrative
    1,390       941       3,027       2,643       29,440  
Management Fees
    10,000       10,000       30,000       30,000       97,500  
Marketing
                            11,192  
Professional Fees
    5,250       2,020       30,870       10,799       76,711  
Rent
                            767  
Total Operating Expenses
    16,640       12,961       63,897       43,442       216,351  
                                         
Other Expenses
                                       
Interest Expense
    1,876       773       4,418       1,793       7,181  
                                         
Total Expenses
    18,516       13,734       68,315       45,235       223,532  
                                         
Net Income
  $ (18,516 )   $ (13,734 )   $ (68,315 )   $ (45,235 )   $ (223,532 )
                                         
Basic Earnings/Loss per share
  $ (0.05 )   $ (0.03 )   $ (0.17 )   $ (0.12 )        
Weighted Average Shares
    393,169       393,169       393,169       393,169          

See accompanying notes to financial statements

 
4

 

BLINK COUTURE, INC.
STATEMENTS OF CASH FLOWS

   
Three Months Ended
   
Nine Months Ended
   
October 23, 2003 thru
 
   
April 30,
   
April 30,
   
April 30,
   
April 30,
   
April 30, 2010
 
(in   US$)
 
2010
   
2009
   
2010
   
2009
   
Since   Inception
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
                               
Operating Activities
                             
Net Profit (Loss)
    (18,516 )     (13,734 )     (68,315 )     (45,235 )     (223,532 )
Amortization
                            741  
Change in Operating Assets and Liabilities:
                                       
Change in Prepaid expense
                             
Change in Inventory
                             
Change in Accounts Payable
    (539 )     (55 )     425       1,220       1,500  
Change in Accrued Liabilities
                             
Change in Accrued Interest
    1,876       773       4,418       1,793       7,181  
Net Cash from Operating Activities
    (17,179 )     (13,016 )     (63,472 )     (42,222 )     (214,110 )
                                         
Investing Activities
                                       
Purchase of Property & Equipment
                            (741 )
Net Cash from Investing Activities
                            (741 )
                                         
Financing Activities
                                       
Changes in Notes Due to Related Parties
    17,179       13,016       63,472       42,222       141,125  
Common Stock Issued for Services
                            300  
Donated Capital
                            23,636  
Proceeds from Common Stock
                            49,790  
Net Cash from Financing Activities
    17,179       13,016       63,472       42,222       214,851  
                                         
Net (decrease) increase in Cash
                             
                                         
Cash Beginning of Period
                             
                                         
Cash End of Period
  $ -     $ -     $ -     $ -     $ -  

See accompanying notes to financial statements
 
5

 
BLINK COUTURE, INC.
(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
April 30, 2010

NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS

Business description

Blink Couture, Inc. (the “Company”) was originally incorporated as Fashionfreakz International Inc. on October 23, 2003 under the laws of the State of Delaware. On December 2, 2005, Fashionfreakz International Inc. changed its name to Blink Couture Inc. Until March 4, 2008, the Company’s principal business was the online retail marketing of trendy clothing and accessories produced by independent designers. On March 4, 2008, the Company discontinued its prior business and changed its business plan. The Company’s business plan now consists of exploring potential targets for a business combination through the purchase of assets, share purchase or exchange, merger or similar type of transaction. The Company has limited operations and in accordance with SFAS # 7, the Company is considered a development stage company.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. BASIS OF ACCOUNTING

The financial statements have been prepared using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recorded as earned and expenses are recorded at the time liabilities are incurred. The Company has adopted a July 31 year-end.

B. CASH EQUIVALENTS

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

C. 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 of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

D. DEVELOPMENT STAGE

The Company continues to devote substantially all of its efforts to exploring potential targets for a business combination through the purchase of assets, share purchase or exchange, merger or similar type of transaction.

E. BASIC EARNINGS PER SHARE

In February, 1997, the FASB issued SFAS No. 128, “Earnings Per Share”, which specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. SFAS No. 128 supersedes the provisions of APB No. 15, and requires the presentation of basic earnings (loss) per share and diluted earnings (loss) per share.

Basic net loss per share amounts is computed by dividing the net income by the weighted average number of common shares outstanding. Diluted earnings per share are the same as basic earnings per share due to the lack of dilutive items in the Company.

 
6

 

BLINK COUTURE, INC.
(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
April 30, 2010

F. INCOME TAXES

Income taxes are provided in accordance with Statement of Financial Accounting Standards No. 109 (SFAS 109), Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.

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. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

G. REVENUE RECOGNITION

The Company has not recognized any revenues from its operations.

H. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
 
FASB Accounting Standards Codification
 
(Accounting Standards Update (“ASU”) 2009-01)
 
In June 2009, FASB approved the FASB Accounting Standards Codification (“the Codification”) as the single source of authoritative nongovernmental GAAP. All existing accounting standard documents, such as FASB, American Institute of Certified Public Accountants, Emerging Issues Task Force and other related literature, excluding guidance from the SEC, have been superseded by the Codification. All other non-grandfathered, non-SEC accounting literature not included in the Codification has become nonauthoritative. The Codification did not change GAAP, but instead introduced a new structure that combines all authoritative standards into a comprehensive, topically organized online database. The Codification is effective for interim or annual periods ending after September 15, 2009, and impacts the Company’s financial statements as all future references to authoritative accounting literature will be referenced in accordance with the Codification. There have been no changes to the content of the Company’s financial statements or disclosures as a result of implementing the Codification during the quarter ended October 6, 2009.
 
As a result of the Company’s implementation of the Codification during the quarter ended October 6, 2009, previous references to new accounting standards and literature are no longer applicable. In the current quarter financial statements, the Company will provide reference to both new and old guidance to assist in understanding the impacts of recently adopted accounting literature, particularly for guidance adopted since the beginning of the current fiscal year but prior to the Codification.
 
Subsequent Events
 
(Included in ASC 855 “Subsequent Events”, previously SFAS No. 165 “Subsequent Events”)
 
ASC 855 established general standards of accounting for and disclosure of events that occur after the balance sheet date, but before the financial statements are issued or available to be issued (“subsequent events”). An entity is required to disclose the date through which subsequent events have been evaluated and the basis for that date. For public entities, this is the date the financial statements are issued. ASC 855 does not apply to subsequent events or transactions that are within the scope of other GAAP and did not result in significant changes in the subsequent events reported by the Company. ASC 855 became effective for interim or annual periods ending after June 15, 2009 and did not impact the Company’s consolidated financial statements. The Company evaluated for subsequent events through June 11, 2010, the issuance date of the Company’s financial statements.
 
 
7

 

BLINK COUTURE, INC.
(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
April 30, 2010

NOTE 3. WARRANTS AND OPTIONS

There are no warrants or options outstanding to acquire any additional shares of common or preferred stock.

NOTE 4. GOING CONCERN

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company generated net losses of $223,532 during the period from October 23, 2003 (inception) to April 30, 2010. This condition raises substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on its ability to meet its obligations, to obtain additional financing as may be required and ultimately to attain profitability. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

The Company is dependent on advances from its principal shareholders for continued funding. There are no commitments or guarantees from any third party to provide such funding nor is there any guarantee that the Company will be able to access the funding it requires to continue its operations.

NOTE 5. RELATED PARTY TRANSACTIONS

On December 29, 2009, pursuant to that certain Stock Purchase Agreement (the “Purchase Agreement”) between Fountainhead Capital Management Limited (“Fountainhead”) and Regent Private Capital, LLC (“Regent”), Fountainhead sold an aggregate of 312,383 shares (the “Fountainhead Shares”) of common stock, par value $0.0001 of the Registrant (the “Common Stock”) to Regent in consideration for (i) Regent’s payment of $200,000 and (ii) Regent’s assignment to Fountainhead of all of Regent’s right, title and interest in a certain third party promissory note in the principal amount of $150,000.  The Fountainhead Shares represent approximately 79.45% of the issued and outstanding shares of Common Stock of the Registrant. Additionally, and also included in the consideration paid by Regent, Fountainhead assigned to Regent all of Fountainhead’s right, title and interest in a certain promissory note of the Registrant having an outstanding principal balance of $90,453, along with accrued interest in the amount of $3,937.

On January 1, 2010, Regent amended and extended the promissory note in the amount of $90,453 bearing simple interest at 6% per annum to be due and payable on January 30, 2011 (the “Note”). On January 31, 2010, the parties further amended the Note increasing the principal balance to $123,946 representing amounts advanced to the Company by the payee during the period November 1, 2009 through January 31, 2010. At January 31, 2010, the Company had loans and notes outstanding from a shareholder in the aggregate amount of $123,946, which represents amounts loaned to the Company to pay the Company’s expenses of operation.

Effective as of January 1, 2010, the Company entered into a Services Agreement with Regent Private Capital, LLC (“Regent”). The term of the Services Agreement is one year and the Company is obligated to pay Regent a quarterly fee in the amount of $10,000, in cash or in kind, on the first day of each calendar quarter commencing November 1, 2009. During the fiscal quarter ended April 30, 2010, the Company paid a total of $10,000 in fees to Regent.

 
8

 

BLINK COUTURE, INC.
(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
April 30, 2010

Effective as of April 30, 2010, the parties further amended the Note increasing the principal balance to $141,125 representing amounts advanced to the Company by the payee during the period February 1, 2010 through April 30, 2010. At April 30, 2010, the Company had loans and notes outstanding from a shareholder in the aggregate amount of $141,125, which represents amounts loaned to the Company to pay the Company’s expenses of operation.

NOTE 6. INCOME TAXES

The Company recognizes deferred income tax liabilities and assets for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. The Company has not incurred any income tax liabilities since its inception due to operating losses of approximately $223,532. The expected income tax benefit for the net operating loss carryforwards is approximately $61,695. The difference between the expected income tax benefit and non-recognition of an income tax benefit in each period is the result of a valuation allowance applied to deferred tax assets.

This results in a net deferred tax asset, assuming an effective tax rate of 28% or approximately $61,695 at April 30, 2010. A valuation allowance in the same amount has been provided to reduce the deferred tax asset, as realization of the asset is not assured.

NOTE 7. STOCKHOLDERS’ EQUITY

The stockholders’ equity section of the Company contains the following classes of capital stock as of April 30, 2010:

 
*
Preferred stock, $0.0001 par value: 20,000,000 shares authorized; -0- shares issued and outstanding.

 
*
Common stock, $0.0001 par value: 100,000,000 shares authorized; 393,169 shares issued and outstanding.

NOTE 8. REVERSE SPLIT

On November 23, 2009, the Company completed a one for fifty-two and one-half shares reverse split. All per share data in this report reflect the impact of this reverse split.

 
9

 

ITEM 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with our unaudited financial statements and the notes thereto.

Forward-Looking Statements

This quarterly report contains forward-looking statements and information (within the meaning of the Private Securities Litigation Reform Act of 1995) relating to Blink Couture, Inc. (“we,” “us,” “our” or the “Company”) that are based on the beliefs of our management as well as assumptions made by, and information currently available to, our management. When used in this report, the words “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan” and similar expressions, as they relate to us or our management, are intended to identify forward-looking statements. These statements reflect management’s current view of us concerning future events and are subject to certain risks, uncertainties and assumptions, including among many others: a general economic downturn; a downturn in the securities markets; federal or state laws or regulations having an adverse effect on proposed transactions that we desire to effect; Securities and Exchange Commission (“SEC”) regulations which affect trading in the securities of “penny stocks,”; and other risks and uncertainties.  Although the Company believes its assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance the forward-looking statements included in this quarterly report will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

Description of the Business
 
The Company was incorporated in the State of Delaware on October 23, 2003, under the name Fashionfreakz International Inc. On December 2, 2005, the Company changed its name to Blink Couture, Inc. Until March 4, 2008, the Company’s principal business was the online retail marketing of trendy clothing and accessories produced by independent designers. On March 4, 2008, the Company discontinued its prior business and changed its business plan. The Company’s business plan now consists of exploring potential targets for a business combination through the purchase of assets, share purchase or exchange, merger or similar type of transaction.

The Company is currently considered to be a “blank check” company. The SEC defines those companies as “any development stage company that is issuing a penny stock, within the meaning of Section 3(a)(51) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),   and that has no specific business plan or purpose, or has indicated that its business plan is to merge with an unidentified company or companies.” Many states have enacted statutes, rules and regulations limiting the sale of securities of “blank check” companies in their respective jurisdictions. The Company is also a “shell company,” defined in Rule 12b-2 under the Exchange Act as a company with no or nominal assets (other than cash) and no or nominal operations.

We will not be restricted in our search for business combination candidates to any particular geographical area, industry or industry segment, and may enter into a combination with a private business engaged in any line of business, including service, finance, mining, manufacturing, real estate, oil and gas, distribution, transportation, medical, communications, high technology, biotechnology or any other. Management’s discretion is, as a practical matter, unlimited in the selection of a combination candidate. Management will seek combination candidates in the United States and other countries, as available time and resources permit, through existing associations and by word of mouth. This plan of operation has been adopted in order to attempt to create value for our stockholders.
 
Results of Operations

The Company has not conducted any active operations since March 4, 2008, except for its efforts to locate suitable acquisition candidates. No revenue has been generated by the Company from October 23, 2003 (Inception) to April 30, 2010. It is unlikely the Company will have any revenues unless it is able to effect an acquisition or merger with an operating company, of which there can be no assurance. It is management’s assertion that these circumstances may hinder the Company’s ability to continue as a going concern. The Company’s plan of operation for the next twelve months shall be to continue its efforts to locate suitable acquisition candidates. 

 
10

 

Three Months ended April 30, 2010 Compared to Three Months ended April 30, 2009.

For the three months ended April 30, 2010, the Company had a net loss of $18,516 compared to a net loss of $13,734 for the three months ended April 30, 2009. This increase in net loss of $4,782 (approximately 35%) between the comparable periods was primarily attributable to an increase in legal fees and other professional fees and expenses from $12,961 for the three months ended April 30, 2009 to $16,640 for the three months ended April 30, 2010. The increase in legal fees and other professional fees and expenses for the three months ended April 30, 2010, was incurred in connection with a change of professional service providers, which was initiated as a result of the change of control of the Company effective as of December 29, 2009.

Nine Months ended April 30, 2010 Compared to Nine Months ended April 30, 2009.

For the nine months ended April 30, 2010, the Company had a net loss of $68,315 compared to a net loss of $45,235 for the nine months ended April 30, 2009. This increase in net loss of $23,080 (approximately 51%) between the comparable periods was primarily attributable to an increase in legal fees and other professional fees and expenses from $43,442 for the nine months ended April 30, 2009 to $63,897 for the nine months ended April 30, 2010. The increase in legal fees and other professional fees and expenses for the nine months ended April 30, 2010, was incurred in connection with certain transactions resulting in a change of control of the Company effective as of December 29, 2009, and the resulting change of professional service providers.

Liquidity and Capital Resources

We had no cash on hand at April 30, 2010 and had no other assets to meet ongoing expenses or debts that may accumulate. Since inception, we have accumulated a deficit of $223,532. As of April 30, 2010 we had total liabilities of $149,806.
 
We have no commitment for any capital expenditure and foresee none. However, we will incur routine fees and expenses incident to our reporting duties as a public company, and we will incur expenses in finding and investigating possible acquisitions and other fees and expenses in the event we make an acquisition or attempt but are unable to complete an acquisition. Our cash requirements for the next twelve months are relatively modest, principally accounting expenses and other expenses relating to making filings required under the Exchange Act, which should not exceed $50,000 in the fiscal year ending July 31, 2010. Any travel, lodging or other expenses which may arise related to finding, investigating and attempting to complete a combination with one or more potential acquisitions could also amount to thousands of dollars.
 
We will only be able to pay our future obligations and meet operating expenses by raising additional funds, acquiring a profitable company or otherwise generating positive cash flow. As a practical matter, we are unlikely to generate positive cash flow by any means other than acquiring a company with such cash flow. We believe that management members or stockholders will lend funds to us as needed for operations prior to completion of an acquisition. Management and the stockholders are not obligated to provide funds to us, however, and it is not certain they will always want or be financially able to do so. Our stockholders and management members who advance funds to us to cover operating expenses will expect to be reimbursed, either by us or by the company acquired, prior to or at the time of completing a combination. We have no intention of borrowing money to reimburse or pay salaries to any of our officers, directors or stockholders or their affiliates. There currently are no plans to sell additional securities to raise capital, although sales of securities may be necessary to obtain needed funds. Our current management has agreed to continue their services to us and to accrue sums owed them for services and expenses and expect payment reimbursement only.
 
Should existing management or stockholders refuse to advance needed funds, however, we would be forced to turn to outside parties to either lend funds to us or buy our securities. There is no assurance whatsoever that we will be able to raise necessary funds, when needed, from outside sources. Such a lack of funds could result in severe consequences to us, including among others:

·
failure to make timely filings with the SEC as required by the Exchange Act, which may also result in suspension of trading or quotation of our stock and could result in fines and penalties to us under the Exchange Act;
 
 
11

 

·
curtailing or eliminating our ability to locate and perform suitable investigations of potential acquisitions; or

·
inability to complete a desirable acquisition due to lack of funds to pay legal and accounting fees and acquisition-related expenses.
 
It is our intention to seek reimbursement from potential acquisition candidates for professional fees and travel, lodging and other due diligence expenses incurred by our management, in connection with our investigation, negotiation and consummation of a business combination with such acquisition candidates. There is no assurance that any potential candidate will agree to reimburse us for such costs.

Going Concern

Our independent auditors have added an explanatory paragraph to their audit issued in connection with the financial statements for the period ended July 31, 2009, relative to our ability to continue as a going concern. We had a working capital deficit of $149,806 at April 30, 2010; we had an accumulated deficit of $223,532 incurred through April 30, 2010; and recorded losses of $18,516 for the three months ended April 30, 2010 and $68,315 for the nine months ended April 30, 2010, respectively. The going concern opinion issued by our auditors means that there is substantial doubt that we can continue as an ongoing business for the twelve month period ending July 31, 2010 and thereafter. The financial statements do not include any adjustments that might result from the uncertainty about our ability to continue our business.
 
Off-Balance Sheet Arrangements

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 is material to investors.

Contractual Obligations

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.
 
ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.

ITEM 4T.   CONTROLS AND PROCEDURES
 
Evaluation of Disclosure Controls and Procedures 
 
Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of April 30, 2010. Based on this evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that our disclosure and controls are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
 
 
12

 

Changes in Internal Control Over Financial Reporting

There were no changes (including corrective actions with regard to significant deficiencies or material weaknesses) in our internal controls over financial reporting that occurred during the quarter ended April 30, 2010 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
 
PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

There are no legal proceedings which are pending or have been threatened against us or any of our officers, directors or control persons of which management is aware.

ITEM 1A.   RISK FACTORS.

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.

ITEM 2.   UNREGISTERED SALES OF EQUITY SECURITIES

There were no unregistered sales of our equity securities during the period covered by this quarterly report.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

None.
 
ITEM 4.   RESERVED

ITEM 5.   OTHER INFORMATION

Supplement to Fourth Amendment and Restatement of Loan Agreement and Promissory Note

Effective as of April 30, 2010, we executed a Supplement (the “Supplement”) to the Fourth Amendment and Restatement of Loan Agreement and Promissory Note (the “Fourth Loan Restatement”) with Regent Private Capital, LLC, the Company’s principal stockholder (“Regent”). The Fourth Loan Restatement was filed as Exhibit 10.9 to the Registrant’s Quarterly Report on Form 10-Q (filed with the Securities and Exchange Commission on March 17, 2010). The Supplement supplements and amends the Fourth Loan Restatement, by including, in the aggregate principal amount outstanding thereunder, additional advances made by Regent to the Company to pay operating expenses from February 1, 2010, through and until April 30, 2010, increasing the outstanding principal amount by $17,179 to $141,125. All other terms of the Fourth Loan Restatement were unchanged and continued in full force and effect, unless and until further supplemented or amended thereafter.

The foregoing description of the Supplement is only a summary and is qualified in its entirety by reference to the Supplement to Fourth Amendment and Restatement of Loan Agreement and Promissory Note, a copy of which is attached as an exhibit to this Quarterly Report on Form 10-Q.

ITEM 6.   EXHIBITS

Exhibit No.
 
Description
     
10.11
 
Supplement to Fourth Amendment and Restatement of Loan Agreement and Promissory Note, dated as of April 30, 2010.
     
31.1
 
Certification of Principal Executive Officer and Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
32.1
 
Certification of Principal Executive Officer and Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 
13

 

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.

 
BLINK COUTURE, INC.
     
Date: June 11, 2010
By:  
/s/ Lawrence D. Field
 
Lawrence D. Field
 
President, Chief Executive Officer, Chief Financial
Officer and Secretary
(Principal Executive Officer and Principal
Financial Officer)
 
 
14

 
 
Exhibit 10.11
 
SUPPLEMENT TO FOURTH AMENDMENT AND RESTATEMENT OF LOAN
AGREEMENT AND PROMISSORY NOTE

THIS SUPPLEMENT TO FOURTH AMENDMENT AND RESTATEMENT OF LOAN AGREEMENT AND PROMISSORY NOTE by and between BLINK COUTURE, INC., a Delaware corporation (the “Maker”) and REGENT PRIVATE CAPITAL, LLC, an Oklahoma limited liability company (the “Payee”) entered into as of April 30, 2010, supplements and amends that certain Fourth Amendment and Restatement of Loan Agreement and Promissory Note dated as of March 15, 2010 (the “Amendment and Note Restatement”). Capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Amendment and Note Restatement.

For value received, the Maker and Payee hereby agree, effective as of the date hereof, that the following provisions shall supplement and become part of the Amendment and Note Restatement:

1.            Additional Advances .  The Parties hereby agree that during the period from February 1, 2010 through April 30, 2010, the Payee has made additional advances to the Maker, in the aggregate amount of $17,179, in payment of the Maker’s operating expenses during that period, so that effective as of April 30, 2010, the total outstanding principal amount due and payable pursuant to the Note is $141,125.

2.            No Further Changes; Full Force and Effect .  The additional advances described in Paragraph 1 above reflect all changes to the Amendment and Note Restatement. All other terms of the Amendment and Note Restatement shall remain unchanged and in full force and effect, unless and until further supplemented or amended hereafter.

IN WITNESS WHEREOF, the Maker has caused this Supplement to Fourth Amendment and Restatement of Loan Agreement and Promissory Note to be duly executed and delivered as of the day and year first written above.
 
 
BLINK COUTURE, INC.
     
 
By:
/s/ Lawrence Field
   
 Name: Lawrence Field
   
 Title: President & CEO
     
 
REGENT PRIVATE CAPITAL, LLC
     
 
By:
/s/ Anurag Agarwal
   
 Name:  Anurag Agarwal
   
 Title: Managing Director
 
 
 

 

Exhibit 31.1
 
Certification of Principal Executive Officer and Principal Financial Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Lawrence D. Field, certify that:

1.
I have reviewed this Quarterly Report on Form 10-Q of Blink Couture, Inc.;

2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 
a.
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 
b.
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 
c.
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 
d.
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 
a.
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 
b.
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 Date: June 11, 2010
 
/s/ Lawrence D. Field
   
Lawrence D. Field
   
Principal Executive Officer and Principal Financial
Officer
 
 
 

 
Exhibit 32.1
 
Certification of Principal Executive Officer and Principal Financial Officer
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Blink Couture, Inc. (the “Company”) on Form 10-Q for the period ending April 30, 2010, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lawrence D. Field, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

 
1)
The Report complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 
2)
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 Date: June 11, 2010
 
/s/ Lawrence D. Field
   
Lawrence D. Field
   
Principal Executive Officer and Principal Financial
Officer