UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

[x] Quarterly Report Pursuant to Section 13 or 15(d) Securities Exchange Act of 1934 for Quarterly Period Ended ~~June~~September 30, 2015

-OR-

[ ] 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 000-54985

American Business Services, Inc.

(Exact name of registrant as specified in its charter)



Colorado		84-1194104
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)



12200 N.W. Ambassador Drive, Suite 326 Kansas City, MO		64163
(Address of principal executive offices)		(Zip Code)

(816) 464-0508

(Registrant's telephone number, including area code)

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

Indicate by check mark whether the registrant 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 (section 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 [x] No [ ]

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

(do not check if a smaller reporting company)

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

The number of outstanding shares of the registrant's common stock as of ~~August~~November 612, 2015 was 7,030,000.

AMERICAN BUSINESS SERVICES, INC.

FORM 10-Q

For the quarterly period ended ~~June~~September 30, 2015

INDEX

PART 1 – FINANCIAL INFORMATION



		Page
Item 1. Financial Statements (Unaudited)		4
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		17
Item 3. Quantitative and Qualitative Disclosure About Market Risk		20
Item 4. Controls and Procedures		20

PART II – OTHER INFORMATION



Item 1. Legal Proceedings		22
Item 1A. Risk Factors		22
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		22
Item 3. Defaults upon Senior Securities		22
Item 4. Mine Safety Disclosures		22
Item 5. Other Information		22
Item 6. Exhibits		22

SIGNATURES		23

AMERICAN BUSINESS SERVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2015	December 31, 2014
	(Unaudited)	(Audited)
ASSETS
Current assets	$ -	$ -
Total Assets	$ -	$ -
LIABILITIES & STOCKHOLDERS' DEFICIT
Current liabilities Bank overdraft	22	-
Related party payable	84,683	11,128
Total current liabilities	84,705	11,128
Total Liabilities	84,705	11,128
Stockholders' Deficit
Preferred stock, $0.001 par value;
10,000,000 shares authorized;
none issued and outstanding	-	-
Common stock, $0.001 par value;
90,000,000 shares authorized;
7,030,000 (2015) (unaudited) and 7,030,000
(2014) shares issued and outstanding	7,030	7,030
Additional paid in capital	40,380	40,380
Retained deficit	(132,115)	(58,538)
Total Stockholders' Deficit	(84,705)	(11,128)
Total Liabilities and Stockholders' Deficit	$ -	$ -

(Unaudited)


	Sept 30, 2015	December 31, 2014

ASSETS

Current assets	$ -	$ -


Total Assets	$ -	$ -


LIABILITIES & STOCKHOLDERS' DEFICIT
Current Liabilities

Related party payable	89,980	11,128
Total current liabilities	89,980	11,128



Total Liabilities	89,980	11,128

Stockholders' Deficit
Preferred stock, $0.001 par value;
10,000,000 shares authorized;
none issued and outstanding	-	-
Common stock, $0.001 par value;
90,000,000 shares authorized;
7,030,000 (2015) and 7,030,000
(2014) shares issued and outstanding	7,030	7,030
Additional paid in capital	40,380	40,380
Accumulated deficit	(137,390)	(58,538)
Total Stockholders' Deficit	(89,980)	(11,128)

Total Liabilities and Stockholders' Deficit	$ -	$ -

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

AMERICAN BUSINESS SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months	Three Months	~~Six~~Nine Months	~~Six~~Nine Months
	Ended	Ended	Ended	Ended
	June 30, 2015	June 30, 2014	June 30, 2015	June 30, 2014
	Sept 30, 2015	Sept 30, 2014	Sept 30, 2015	Sept 30, 2014
Revenue - related party	$ -	$ ~~1,000~~-	$ -	$ 4,000
Operating Expenses:
General and administrative	545,~~110~~275	65,~~935~~179	7378,~~577~~852	1217,~~423~~602
Total operating expenses	545,~~110~~275	65,~~935~~179	7378,~~577~~852	1217,~~423~~602
Income (loss) from operations	(545,~~110~~275)	(5,~~935~~179)	(7378,~~577~~852)	(813,~~423~~602)
Other income (expense)
Repayment of loan previously reserved
against as non-collectible	-	-	-	2,000
Other income (expense) net	-	-	-	2,000
Income (loss) before provision	(545,~~110~~275)	(5,~~935~~179)	(7378,~~577~~852)	(611,~~423~~602)
for income taxes
Provision (credit) for income tax	-	-	-	-
Net income (loss)	$ (545,~~110~~275)	$ (5,~~935~~179)	$ (7378,~~577~~852)	$ (611,~~423~~602)
Net income (loss) per share
(Basic and fully diluted)	$ (0.0100)*	$ (0.00)*	$ (0.0102)	$ (0.00)*
Weighted average number of
common shares outstanding: (Basic and fully diluted)	7,030,000	7,030,000	7,030,000	7,030,000

* denotes a loss of less than $(0.01) per share.

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

AMERICAN BUSINESS SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months	Six Months
	Nine Months	Nine Months
	Ended	Ended
	June 30, 2015	June 30, 2014
	Sept 30, 2015	Sept 30, 2014
Cash Flows From Operating Activities:
Net income (loss)	$ (7378,~~577~~852)	$ (611,~~423~~602)
Adjustments to reconcile net income (loss) to
net cash provided by (used for)
operating activities:
Gain on repayment of loan formerly reserved against	-	(2,000)
Changes in Operating Assets and Liabilities
Income Tax Payable		1,571
Net cash provided by (used for)
operating activities	(7378,~~577~~852)	(812,~~423~~031)
Cash Flows From Investing Activities:
Repayment of loan formerly provided against	-	2,000
Transfer of cash on sale of subsidiary, net of sales
proceeds	-	(3,630)
Proceeds from sales of marketable securities	-	6,000
Net cash provided by (used for)	-	4,370
investing activities
Cash Flows From Financing Activities:
Related party payable	7378,~~555~~852	-3,562
Bank overdraft	22	-
Net cash provided by (used for)
financing activities	7378,~~577~~852	-3,562
Net Increase (Decrease) In Cash	-	(4,~~053~~099)
Cash At The Beginning Of The Period	-	4,099
Cash At The End Of The Period	$ -	$ 46-

During the three months ended ~~June~~September 30, 2015, the Company ~~opened~~closed a bank account with Bank Midwest N.A., ~~however,~~the nobank ~~cash~~reversed ~~was transferred into~~ the ~~account,~~service ~~which~~charges incurred ~~service~~and ~~charges~~closed ~~that~~the ~~created~~account aneffective ~~overdraft~~August of7, ~~the account~~2015. All of the Company’s operating expenses were paid for by its parent company, Smith Electric Vehicles Corp. (“Smith”), from Smith’s corporate bank account. Prior to this, the Company did not maintain a bank account, and subsequent to August 7, 2015 no longer maintains a bank account.

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

AMERICAN BUSINESS SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Continued from previous page

Schedule of Non-Cash Investing and Financing Activities
Liabilities transferred with sale of subsidiary	$ -	$ 12,740
Supplemental Disclosure
Cash paid for interest	$ -	$ -
Cash paid for income taxes	$ -	$ -

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

AMERICAN BUSINESS SERVICES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS,

FOR THE THREE AND ~~SIX~~NINE MONTH PERIODS ENDED ~~JUNE~~SEPT 30, 2015 AND 2014

(Unaudited)

NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

American Business Services, Inc. (the “Company”, “ABS”, “we”, “us” or “our”), was incorporated in the State of Colorado on September 20, 1991. The Company provides merger and acquisition financial consulting services. The Company may also engage in any other business permitted by law, as designated by the Board of Directors of the Company.

Interim Financial Statements

The accompanying unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In management’s opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three and ~~six~~nine months ended ~~June~~September 30, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2014 included in our Form 10-K filed with the SEC.

Principles of consolidation

The accompanying consolidated financial statements include the accounts of American Business Services, Inc. and its wholly owned subsidiary, American Business Services Corp. to the date of its sale on March 28, 2014. American Business Services Corp. was sold to Phil E. Ray, then a director and officer of the Company, on March 28, 2014 for $100. ~~This sale was reflected in the Quarterly Report on Form 10-Q for the three months ended March 31, 2014.~~ All intercompany accounts and transactions have been eliminated in consolidation.

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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.

Net income (loss) per share

The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company’s preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share. No potentially dilutive debt or equity instruments were issued or outstanding during the three and ~~six~~nine months ended ~~June~~September 30, 2015 or 2014.

Income tax

The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. 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. To the extent that the Company has net operating loss or other tax carryforwards, a full valuation allowance has been applied resulting in no deferred tax expense or benefit. The Company does not anticipate any current tax expense payable or benefit receivable.

Revenue recognition

Revenue will be recognized only when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service has been provided, and collectability is assured. Specifically, revenue from consulting services is recognized subsequent to client services being performed at an agreed upon price, and collectability is reasonably assured.

Property and equipment

Property and equipment are recorded at cost and depreciated under the straight line method over each item’s useful life.

Financial Instruments

The Company’s financial instruments consist principally of bank overdraft and related party payable. The recorded values of these items approximate their current fair values because of the short term nature of these financial instruments.

Stock based compensation

The Company accounts for employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable. No stock based compensation was issued or outstanding during the three and ~~six~~nine months ended ~~June~~September 30, 2015 and 2014.

Recent Accounting Pronouncements

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe that their future adoption of any such pronouncements may be expected to have a material impact on its financial condition of the result of its operations as reported in its financial statements.

NOTE 2. GOING CONCERN

These financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business.

However, the Company has suffered a loss from operations and has negative cash flows from operations during the ~~six~~nine months ended ~~June~~September 30, 2015 and in all likelihood will be required to make significant future expenditures in connection with marketing efforts along with ongoing general administrative expenses. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through borrowings from financial institutions or related parties. By doing so, the Company hopes to generate sufficient capital to execute its business plan of providing financial consulting services on an ongoing basis. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern.

These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

NOTE 3. NOTES RECEIVABLE – RELATED PARTIES

Historically, the Company has loaned money through notes receivable on an ongoing basis to various companies related by common control. The notes were due to be repaid to the Company at various dates through December 2013. The Company recognized no interest income on the notes. The Company had established a reserve for any loans not repaid within one year.

At December 31, 2013, the Company had $27,100 in notes receivable outstanding with a corresponding note reserve of $27,100.

At March 31, 2014, all these notes had been sold or repaid as follows:

There were three convertible promissory notes made to Centennial Growth Equities in 2007 and 2008 for a total of $25,100, which was for funds loaned to Centennial Growth Equities and was used for working capital. These notes were not arms-length transactions and were related party transactions as Mr. Ray, the then president of ABS, was also a principal of Centennial Growth Equities at the time the transactions were made.

A note from Centennial Growth Equities, Inc., a company controlled by Mr. Ray, an officer and director at the time the note was made, dated January 10, 2007 in the amount of $17,000, for money that ABS loaned to Centennial Growth Equities in 2006. This note matured on December 31, 2008 and was renewed through December 31, 2013. The note had been accruing interest as of January 1, 2011 at an annual interest of 4% per annum. No interest had been paid on this note.

A note from Centennial Growth Equities, Inc., a company controlled by Mr. Ray, an officer and director at the time the note was made, dated January 10, 2007, in the amount of $4,200, for money that ABS loaned to Centennial Growth Equities in 2007. This note matured on December 31, 2011, and was renewed through December 31, 2013. The note began accruing interest as of January 1, 2012 at a rate of 4% per annum. No interest had been paid on this note.

A note from Centennial Growth Equities, Inc., a company controlled by Mr. Ray, an officer and director at the time the note was made, dated January 10, 2007 in the amount of $3,900 for money that ABS loaned to Centennial Growth Equities in 2008. This note matured on December 31, 2011 and was renewed through December 31, 2013. The note began accruing interest as of January 1, 2012 at a rate of 4% per annum. No interest had been paid on this note.

No formal extension of the term of these notes was executed, however, during the three months ended March 31, 2014, the Company exercised its right to convert the three notes receivable from Centennial Growth Equities, Inc. into 2,500,000 shares of its common stock. This stock was then sold to a related party for $6,000. As these notes receivable had been fully provided against in prior periods, the Company recognized a gain of $6,000 on the sale. As the sale was to a related party, the gain on sale has been recognized in additional paid in capital.

A note from Original Source Music, Inc., an unaffiliated entity, dated June 1, 2010 in the amount of $2,000 for money loaned to Original Source Music by ABS in 2010. This amount was used as working capital. The note matured on June 28, 2013.

No formal extension of the term of this note was executed, however, during the three months ended March 31, 2014, the Company received payment from Original Source Music, Inc. in the amount of $2,000 in complete satisfaction of the obligation. As this note receivable had been provided against in full in previous periods, we recognized a gain of $2,000 on repayment of this note receivable.

NOTE 4. OTHER RECEIVABLE

As of June 30, 2014, the Company recognized a balance of $1,577 as another receivable. This represents income tax repayable from the carry back of tax losses arising in 2013 to offset taxable profits arising in prior years which would generate a repayment of taxes paid in prior years. Due to collectability concerns, this tax receivable was written-off as of December 31, 2014.

NOTE 5. OTHER ASSETS

As of March 31, 2015, the Company had recognized a balance of $9,613 as an Other Asset. This balance consisted of costs associated with negotiations with Smith Electric Vehicles Corp. (“Smith”) (an 85.3% owner of American Business Services, Inc.) and FDG Electric Vehicles Ltd (“FDG”), a related party. These negotiations were in regards to Smith and FDG contributing funds and certain intellectual property (“IP”) to ABS for shares of stock in ABS. ABS was then to develop a strategy for business development using the IP acquired. Subsequent to March 31, 2015, these negotiations were terminated without any agreement being reached and this balance of $9,613 has been written off during the second quarter of 2015. An additional $24,188 of such costs were incurred and expensed during the second quarter of 2015. The charges for these terminated negotiations ~~was~~were $33,801 in total.

NOTE 6. FIXED ASSETS

The Company disposed of its fixed assets with the sale of its subsidiary, American Business Services Corp., on March 28, 2014.

All fixed assets were transferred at the time of the sale of the subsidiary, and were included in the consideration received at that time. Therefore the Company does not currently have any fixed assets.

No depreciation expense was recognized during the period ended March 28, 2014 as the cost of the fixed assets had already been fully depreciated.

NOTE 7. RELATED PARTY PAYABLE

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders or directors. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances were considered temporary in nature and were not formalized by a promissory note.

During the three and ~~six~~nine months ended ~~June~~September 30, 2015, the new majority stockholder, Smith Electric Vehicles Corp., advanced $445,~~475~~297 and $7378,~~555~~852, respectively, on behalf of the Company to pay current invoices received for services that had been rendered to the Company. As of ~~June~~September 30, 2015 and December 31, 2014, $8489,~~683~~980 and $11,128, respectively, has been advanced to the Company. These advances are unsecured, bear no interest and are repayable on demand.

NOTE 8. NOTE PAYABLE – RELATED PARTY

As of December 31, 2013, the Company owed a related party $12,000 under a note payable, repayable in full on December 31, 2014. The loan bore interest at 6% and a balance of $740 interest had been accrued on this loan at December 31, 2013.

On March 28, 2014, this note payable along with the accrued interest was transferred to the purchaser of the subsidiary, American Business Services Corp. and consequently is no longer disclosed as a liability of the Company.

NOTE 9. STOCKHOLDERS’ DEFICIT

Preferred Stock

The Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.001 per share.

No shares of preferred stock were issued and outstanding during the three and ~~six~~nine months ended ~~June~~September 30, 2015 or 2014.

Common Stock

The Company is authorized to issue 90,000,000 shares of ~~preferred~~common stock with a par value of $0.001 per share.

No shares of common stock were issued during the three and ~~six~~nine months ended ~~June~~September 30, 2015.

As of ~~June~~September 30, 2015 there were 7,030,000 shares of common stock issued and outstanding.

Additional Paid in Capital

During the three months ended March 31, 2014 the Company exercised its right to convert the three notes receivable from Centennial Growth Equities, Inc. into 2,500,000 shares of its common stock. This stock was then sold to a related party for $6,000. As these notes receivable had been fully provided against in prior periods, the Company recognized a gain of $6,000 on the sale. As the sale was to a related party, the gain on sale has been recognized in additional paid in capital.

During the three months ended March 31, 2014 we sold our subsidiary, American Business Services Corp., for $100 to a related party. As the subsidiary had net liabilities of $9,010 at the date of the sale, we recognized a gain of $9,110 on the sale. As the sale was to a related party, the gain on sale was recognized in additional paid in capital in our Quarterly Report on Form 10-Q for the three months ended March 31, 2014.

NOTE 10. OTHER INCOME

During the three months ended March 31, 2014, the Company received payment from Original Source Music, Inc. in the amount of $2,000 in complete satisfaction of an outstanding note receivable. As this note receivable had been provided against in full in previous periods, we recognized a gain of $2,000 on repayment of this note receivable.

NOTE 11. SALE OF SUBSIDIARY

On March 28, 2014 we sold our wholly owned subsidiary, American Business Services Corp., to a related party for $100. The subsidiary had assets of $3,730, liabilities of $12,740 for a net value of ($9,010). The Company had previously recognized these losses in the consolidated financial statements as the loss was carried on the books of the Company as a negative value. The Company had no other basis in the stock and accordingly recognized a gain of $9,110 on the sale. As the sale was to a related party, the gain on sale was recognized in additional paid in capital ~~in our Quarterly Report on Form 10-Q for the three months ended March 31, 2014~~.

NOTE 12. SALE AND TRANSFER OF A MAJOR STOCKHOLDER’S INTERESTS

On July 3, 2014 Phil E. Ray, the majority stockholder of American Business Services, Inc., sold 6,000,000 shares of common stock that he owned to Smith Electric Vehicles Corp., a Delaware corporation. These shares constituted the entire holding of Mr. Ray and comprised approximately 85.3% of the outstanding shares of the Company.

In addition to the sale of the stock, Mr. Ray resigned all positions as an officer of the Company. Upon his resignation the Board of Directors appointed Bryan L. Hansel as President and Chief Executive Officer and Mr. John Micek as the Chief Financial Officer and Jacques Schira as the Secretary. Mr. Ray later resigned his position as director of the Company.

Further details relating to this transaction are available in the Current Report on Form 8-K filed with the Securities and Exchange Commission on July 10, 2014.

NOTE 13. RELATED PARTIES

For the three and ~~six~~nine months ended ~~June~~September 30, 2014, we recognized revenue of $~~1,000~~0 and $4,000, respectively, from a related party for consulting fees.

We do not have any standard arrangements by which employees or directors are compensated for any services provided as employees or directors. No cash has been paid to employees or directors in their capacity as such.

The Company occupies office space provided by Smith Electric Vehicles Corp. at no cost. The value of the space is not considered materially significant for financial reporting purposes.

NOTE 14. COMMON STOCK PLEDGED AS COLLATERAL

On March 25, 2015 Smith Electric Vehicles Corp. entered into a $500,000 loan agreement with FDG Electric Vehicles Limited. The drawdown date of the agreement was March 30, 2015 with a repayment date of June 30, 2015. AsThe ~~of July 27, 2015, the~~ repayment date of this note was extended to August 31, 2015. The loan agreement does not have a stated interest rate. The collateral for this loan agreement is all common stock or other form of derivatives of American Business Services, Inc., now or at any time hereafter, and prior to the termination of the agreement, owned or acquired by Smith Electric Vehicles Corp. In the event of default, this could result in a change of control of American Business Services, Inc. As of ~~August~~October 68, 2015, this loan has ~~not~~ been repaid. ~~See NOTE 15. Subsequent Events below for further loan agreement default details.~~

On October 5 2015, Smith Electric Vehicles entered into a $1,000,000 loan agreement with Active Way International Limited. The drawdown date of the agreement was one business day after the agreement date for Loan A (repayment of the FDG Note) and Loan B (cash disbursement to Smith) was one business day after the payment to FDG to the borrower The collateral for this loan agreement is all common stock or other form of derivatives of American Business Services, Inc., now or at any time hereafter, and prior to the termination of the agreement owned or acquired by Smith Electric Vehicles Corp. In the event of default this could result in a change of control of American Business Services, Inc. See NOTE 15. Subsequent Events below for further loan agreement default details.

NOTE 15. SUBSEQUENT EVENTS

~~Due~~On toOctober ~~delays in receipt of additional cash from fundraising~~5, 2015 Smith Electric Vehicles Corp. ~~and~~entered ~~FDG~~into ~~Electric~~a ~~Vehicles~~loan agreement with Active Way International Limited. This ~~agreed~~agreement onrepaid ~~July~~the 27FDG Note of March 25, 2015 toand anthe ~~amendment~~Common toStock ~~the~~is ~~loan~~now ~~agreement~~pledged to ~~extend~~Active ~~the~~Way International Ltd under said agreement. The maturity ~~date~~of tothis ~~August~~note ~~31,~~is ~~2015.~~12 ~~See~~months ~~NOTE~~from ~~14.~~the ~~Common~~first ~~Stock~~drawdown ~~Pledged~~date aswhich ~~Collateral~~will ~~above~~be ~~for~~October ~~further~~8, ~~loan~~2016. The ~~agreement~~stated ~~details~~interest rate is 18%.

In accordance with ASC 855-10. “Subsequent Events” the Company has analyzed its operations subsequent to ~~June~~September 30, 2015 to the date these financial statements were available to be issued and has determined that other than as disclosed above, it does not have any material subsequent events to disclose in the financial statements.

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

Trends and Uncertainties.

We are currently not aware of any trends that are reasonably likely to have a material impact on our liquidity. The Company may never become profitable if it does not obtain sufficient funds or obtain alternate financing to complete our business plan.

Historically, the Company has loaned money through notes receivable on an ongoing basis to various companies related by common control. At March 31, 2014, all these notes had been sold or repaid as follows:

stock. This stock was then sold to a related party for $6,000. As these notes receivable had been fully provided against in prior periods the Company recognized a gain of $6,000 on the sale. As the sale was to a related party, the gain on sale has been recognized in additional paid in capital.

During the three and ~~six~~nine months ended ~~June~~September 30, 2015, the new majority stockholder, Smith Electric Vehicles Corp. advanced $445,~~475~~297 and $7378,~~555~~852, respectively, on behalf of the Company to pay current invoices received for services that had been rendered to the Company. As of ~~June~~September 30, 2015 and December 31, 2014, $8489,~~683~~980 and $11,128, respectively, has been advanced to the Company. These advances are unsecured, bear no interest and are repayable on demand.

We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.

General and administrative expenses will continue to increase as we implement sales and marketing initiatives.

Liquidity and Capital Resources

Operating activities

During the ~~six~~nine months ended ~~June~~September 30, 2015, we incurred a net loss of $7378,~~577~~852. As a result, we ~~had~~used net cash ~~used~~of ~~for~~$78,852 in our operating activities ~~of $73,577~~ during the ~~six~~nine months ended ~~June~~September 30, 2015.

During the ~~six~~nine months ended ~~June~~September 30, 2014, we incurred a net loss of $611,~~423~~602 adjusted for cash flow purposes by a gain of $2,000 on repayment of a loan previously provided against in full and recorded increase in accounts payable of $1,571, resulting in net cash used ~~for~~in operating activities of $812,~~423~~031 during the ~~six~~nine months ended ~~June~~September 30, 2014.

Investing activities

During the ~~six~~nine months ended ~~June~~September 30, 2015, we did not pursue any investing activities.

During the ~~six~~nine months ended ~~June~~September 30, 2014, we received $6,000 from the sales of marketable securities, $2,000 from the repayment of a loan and transferred cash of $3,630 on the sale of our subsidiary company, net of sales proceeds of $100. As a result, we generated cash from investing activities of $4,370 during the ~~six~~nine months ended ~~June~~September 30, 2014.

Financing activities

During the ~~six~~nine months ended ~~June~~September 30, 2015, we received $7378,~~555~~852 by way of advances under a related party payable from Smith Electric Vehicles Corp. (“Smith”) (an 85.3% owner of American Business Services, Inc.) Included within the advances was $33,801 in costs associated with negotiations with Smith and FDG Electric Vehicles Ltd (“FDG”), a related party. These negotiations were in regards to Smith and FDG contributing funds and certain intellectual property (“IP”) to ABS for shares of stock in ABS. ABS was then to develop a strategy for business development using the IP acquired. These negotiations were terminated without any agreement being reached. ~~We also received $22 from a bank overdraft.~~ As a result we generated net cash provided by financing activities of $7378,~~577~~852 during the ~~six~~nine months ended ~~June~~September 30, 2015.

During the ~~six~~nine months ended ~~June~~September 30, 2014, we ~~did~~received ~~not~~$3,562 ~~pursue~~by ~~any~~way ~~financing~~of ~~activities~~advances under a related payable from Smith Electric Vehicles Corp.

Results of Operations

Three months ended ~~June~~September 30, 2015 compared to the three months ended ~~June~~September 30, 2014

For the three months ended ~~June~~September 30, 2015, we did not receive any revenues. We ~~paid~~incurred general and administrative expenses of $545,~~110~~275. As a result, we incurred a net loss of $545,~~110~~275 for the three months ended ~~June~~September 30, 2015.

Comparatively, for the three months ended ~~June~~September 30, 2014, we ~~received~~did ~~related~~not ~~party~~receive ~~revenues~~any ~~of $1,000~~revenues. We ~~paid~~incurred general and administrative expenses of $65,~~935~~179. As a result, we incurred a net loss of $5,~~935~~179 for the three months ended ~~June~~September 30, 2014.

~~The~~Our ~~$48,175~~operating ~~increase~~expenses ~~in net loss~~ for the three months ended ~~June~~September 30, 2015 ~~compared~~and ~~to the three months ended June 30,~~ 2014 iswere ~~due~~virtually ~~primarily~~identical towas ~~recognizing~~we noincurred ~~revenue in 2015, coupled with a $47,175, or 680.25%, increase in our general and administrative expenses. These expenses increased as a result of~~ the ~~reorganization~~minimum ~~process~~costs ~~that~~necessary ~~occurred due~~ to ~~the~~remain ~~new~~current ~~ownership and negotiations~~ with ~~Smith~~our ~~and~~required ~~FDG~~SEC ~~to contribute funds and certain intellectual property to ABS in return for common shares~~filings. ~~However, these negotiations were terminated without any agreement being reached and all professional fees incurred with respect to the negotiations were expensed in full.~~

~~Six~~Nine months ended ~~June~~September 30, 2015 compared to the ~~six~~nine months ended ~~June~~September 30, 2014.

During the ~~six~~nine months ended ~~June~~September 30, 2015, we did not receive any revenues. We ~~paid~~incurred general and administrative expenses of $7378,~~577~~852. As a result, we incurred a net loss of $7378,~~577~~852 for the ~~six~~nine months ended ~~June~~September 30, 2015.

Comparatively, during the ~~six~~nine months ended ~~June~~September 30, 2014, we received related party revenue of $4,000. We paid general and administrative expenses of $1217,~~423~~602. We received $2,000 as repayment of a loan previously reserved against as non-collectible. As a result, we incurred a net loss of $611,~~423~~602 for the ~~six~~nine months ended ~~June~~September 30, 2014.

Our net loss increased by $67,~~154~~646 due to a $4,000 decrease in revenue and a $2,000 decrease in other income coupled with a $61,~~154~~250, or ~~492~~358.2628%, increase in our general and administrative expenses. These expenses increased as a result of costs incurred in the reorganization process that occurred due to the new ownership and in the abortive negotiations with Smith and FDG to contribute funds and certain intellectual property to ABS in return for common shares. ~~However~~As, these negotiations were terminated without any agreement being reached ~~and~~ all professional fees incurred with respect to the negotiations were expensed in full.

We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources. If we are unable to raise funds for the above purposes, it is uncertain if we will be able to continue as a going operation.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable for smaller reporting companies.

Item 4. Controls and Procedures

During the quarter ended ~~June~~September 30, 2015, there were no changes in our internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our chief executive officer and chief 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, as of ~~June 30, 2015. Based on this evaluation, our chief executive officer and chief financial officer have concluded that such controls and procedures are effective as of June 30, 2015, to~~

September 30, 2015. Based on this evaluation, our chief executive officer and chief financial officer have concluded that such controls and procedures are effective as of September 30, 2015, to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms and to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We were not subject to any legal proceedings during the ~~six~~three and nine month periods ended ~~June~~September 30, 2015 or 2014 and, to the best of our knowledge and belief, none are pending or threatened.

Item 1A. Risk Factors

Not applicable for smaller reporting companies.

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

No unregistered sales of equity took place during the ~~six~~three and nine month periods ended ~~June~~September 30, 2015 or 2014.

Item 3. Defaults Upon Senior Securities.

No senior securities were issued of outstanding during the ~~six~~three and nine month periods ended ~~June~~September 30, 2015 or 2014.

Item 4. Mine Safety Disclosures

Not applicable to our Company.

Item 5. Other Information

None

Item 6. Exhibits

Exhibit 31* - Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32* - Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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 Linkbase Document

101.LAB* XBRL Taxonomy Extension Label Linkbase Document

101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith

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.

Dated: ~~August~~November 612, 2015

American Business Services, Inc.

By:

/s/ Bryan L. Hansel

Bryan L. Hansel

Chief Executive Officer

/s/John Micek

John Micek

Chief Financial Officer

Filing Compare · American Business Services, Inc.