Emo Capital Corp.

What they do

Emo Capital Corp. was incorporated in Nevada on August 23, 2006. It currently describes its business focus as promoting and distributing health and beauty care products over the internet. The company also acquired the ME4Free brand in 2013, which it says will market natural health products. As of the latest 10-Q, the ME4Free division sells online non-prescription herbal products, with initial products described as capsules to boost testosterone levels.

Revenue drivers

• ME4Free herbal products — The company states the ME4Free division sells online non-prescription herbal products, with initial products being capsules made from natural ingredients to support sexual health by boosting testosterone. No revenue figures are given in the excerpts.
• Internet marketing channels — The company plans to use display advertising, search marketing on sites like Google, and email marketing through affiliates to drive traffic to its website and sell products. No revenue has been reported from these channels.
• Health and beauty web portal — The company says it will provide an all-inclusive web portal for diet, health and fitness products, with customers required to be over 18. No revenue is reported from this portal in the excerpts.

Recent performance

For the three-month period ended April 30, 2017, the company reported general and administration expenses of $nil and $nil for the three-month period ended April 30, 2017 and April 30, 2016, respectively. For the nine-month period ended April 30, 2017, the company experienced a net loss of $nil and had a total deficit of $92,415 since inception. As of April 30, 2017, the company had cash on hand of $nil and total assets of $0.00. Shareholder equity was negative $60,415 at April 30, 2017. Annual net income has been negative every year from 2011 through 2015, ranging from a loss of $3,721 in 2014 to a loss of $19,529 in 2013.

Strategy

The company states it plans to promote its products and services to internet users in the USA and Canada, focusing on adults seeking to address obesity. It intends to use display advertising, search marketing, and affiliate email marketing as its primary channels. The company also says it may acquire customers through its ME4Free brand and is seeking to expand its business. Management does not have any arrangements in place for future financing and expects current cash is not sufficient to fund operations for the next twelve months. The company states it will rely on loans from officers and directors to continue operations.

Risks

• Going concern — The company's auditors issued a going concern opinion as at July 31, 2015, citing substantial doubt about its ability to continue without additional financing or profits.
• No cash and no revenue — As of April 30, 2017, the company had $0.00 in cash, $0.00 in total assets, and negative shareholder equity of $60,415, with no revenue reported in the excerpts.
• Dependence on officer loans — The company states it has satisfied working capital needs through loans from its officer and expects to rely on such loans to continue operations.
• Foreign enforcement and operations — Substantially all assets and one officer and director are located outside the United States, making it difficult to enforce U.S. judgments.

Outlook

Management states that it does not expect its current level of cash on hand to be sufficient to fund operations for the next twelve-month period. It anticipates needing additional funding and expects any additional funding to be in the form of equity financing from the sale of common stock. However, no arrangements are in place for any future equity financing. The company also states it may seek short-term loans from its director if needed.