Our offering is being made on a self-underwritten basis: no minimum number of shares must be sold in order for the offering to proceed. The offering price per share is $0.01. The following table sets forth the uses of
proceeds assuming the sale 100%, 75%, 50% and 25% respectively, of the securities offered for sale by the Company. There is no assurance that we will raise any amount as anticipated.
The following table does not give effect to any operating profits that we may realize during the next 12 months period. If, in fact, working capital is generated through operations (which cannot be assured) then
additional funds will be available to accomplish the corporate objectives.
None of the proposed allocations set forth in the following table is a firm commitment by us. Projected expenditures are estimations or approximations only. Actual expenditures will differ from projected expenditures
if: (1) less than the maximum offering is sold; (2) more funds than estimated are required to accomplish the objectives set by management in a particular area; (3) a particular objective can be obtained with less funding than anticipated; or (4) the
objectives set by management are determined to be unobtainable. To the extent that the proposed objectives cannot be achieved for the scheduled amounts, management may draw supplemental amounts from other categories of estimated expenses (if
available), from operating revenues (if any) or from additional financing, the availability of which cannot be assured. Any amounts not expended for scheduled purposes will be reallocated for general corporate purposes. In the event we are not
successful in selling all of the shares offered herein, the amount allocated in the below table will be reduced proportionately to the amount of proceeds actually received.
There is no minimum amount we are required to raise in this offering; any funds received from the sale of stock by the Company will be immediately available to us. The above figures represent only estimated costs. Mr.
Ivan Homici has agreed to loan us funds to implement our business plan and maintain our reporting status and quotation on the OTCBB or OTCQB until we raise funds from this offering. Mr. Ivan Homici is not obligated to loan us funds. Mr. Ivan Homici
will not be repaid from the proceeds of this offering. There is no due date for the repayment of the funds advanced by Mr. Ivan Homici and the loan bear interest at 0% per annum. Mr. Ivan Homici will be repaid from revenues of operations if and when
we generate revenues to pay the obligation.
Our sole director believes that the proceeds of this offering plus operating revenues will satisfy our net capital and cash requirements for at least 12 months following the completion of this offering, provided that
all of the shares offered herein are sold. Even if all of the shares are sold, it is anticipated we may need to obtain additional financing, either debt or equity, in order to fully implement our business plan described herein. We do not have
existing arrangements to raise additional capital through bank loans or otherwise should it be needed. There can be no assurance that any additional funds could be secured on terms favorable to us, or that they could be secured at all.
PLAN OF DISTRIBUTION
Offering Will be Sold by our Officers and Directors
Shares offered by the Company will be sold by our sole officer and director Mr. Ivan Homici. Mr.Homici will not purchase any shares in this offering.
This is a self-underwritten (“best-efforts”) Offering. This Prospectus is part of a prospectus that permits our sole officer and director to sell the shares being offered by the Company directly to the public, with no
commission or other remuneration payable to him for any shares he may sell. There are no plans or arrangements to enter into any contracts or agreements to sell the shares with a broker or dealer. Ivan Homici, our sole officer and director, will sell
the shares and intends to offer them to friends, family members and business acquaintances. In offering the securities on our behalf, our sole officer and director will rely on the safe harbor from broker dealer registration set out in Rule 3a4-1
under the Securities Exchange Act of 1934.
The sole officer and director will not register as a broker-dealer pursuant to Section 15 of the Securities Exchange Act of 1934, in reliance upon Rule 3a4-1, which sets forth those conditions under which a person
associated with an issuer, may participate in the offering of the issuer's securities and not be deemed to be a broker-dealer
|
a.
|
Our sole officer and director is not subject to a statutory disqualification, as that term is defined in Section 3(a)(39) of the Act, at the time of his participation; and,
|
|
b.
|
Our sole officer and director will not be compensated in connection with his participation by the payment of commissions or other remuneration based either directly or indirectly on transactions in securities; and
|
|
c.
|
Our sole officer and director is not, and will not be at the time of his participation in the offering, an associated person of a broker-dealer; and
|
|
d.
|
Our sole officer and director meets the conditions of paragraph (a)(4)(ii) of Rule 3a4-1 of the Exchange Act, in that he:
|
•
|
primarily perform, or is intended primarily to perform at the end of the offering, substantial duties for or on behalf of our Company, other than in connection with transactions in securities; and
|
•
|
is not a broker or dealer, or been an associated person of a broker or dealer, within the preceding twelve months; and
|
•
|
has not participated in selling and offering securities for any Issuer more than once every twelve months other than in reliance on Paragraphs (a)(4)(i) or (a)(4)(iii).
|
Terms of the Offering and Offering Proceeds
The Shares offered by us will be sold at the fixed price of $0.01 per share until the completion of this Offering. There is no minimum amount of subscription required per investor, and subscriptions, once received, are
irrevocable. This Offering commenced on the date the registration statement was declared effective (which also serves as the date of this Prospectus) and continues for a period of 180 days, unless we extend the Offering period for an additional 90
days, or unless the offering is completed or otherwise terminated by us (the "Expiration Date"). This Offering has no minimum and, as such, we will be able to spend any of the proceeds received by us.
Our Requirements for Subscriptions. Right to Reject Subscriptions
If you decide to subscribe for any shares in this offering, you will be required to execute a subscription agreement and tender it, together with a check or certified funds to us. Subscriptions, once received and
accepted by us, are irrevocable. All checks for subscriptions should be made payable to “NOWTRANSIT INC”
We have the right to accept or reject subscriptions in whole or in part, for any reason or for no reason. All monies from rejected subscriptions will be returned immediately by us to the subscriber, without interest or
deductions. Subscriptions for securities will be accepted or rejected within 48 hours after we receive them.
DESCRIPTION OF OUR BUSINESS
General Information
NOWTRANSIT INC will be an online platform service, matching people with items to be sent with drivers already headed in that direction. Senders can use this service to send documents, items, parcels, from one city to
another city or virtually anywhere else a match can be found. We will not hire any drivers for our company. Drivers will be deemed to be occasional independent contractors meaning the person driving from city A to city B is willing to earn some money
by picking up and delivering an item from city A to city B. The Company will serve as an online matching service and nothing more. Once matched, the Company will have no further involvement in the transaction between sender and driver.
Our source of operating revenue will be commissions from customers/senders payments to drivers. If funding for our plan of operation is $25,000 then our burn rate will be approximately $2,083 per month.
We have never been a party to any bankruptcy, receivership or similar proceeding, nor have we undergone any material reclassification, merger, consolidation, purchase or sale of a significant amount of assets not in
the ordinary course of business.
We have yet to commence operations. As of the date of this Prospectus we have had only limited start-up operations and have not generated revenues. We will not be profitable until we derive sufficient revenues and cash
flows from commissions for our services. We believe that, if we obtain the proceeds from this offering and borrow any additional necessary funds from Mr. Ivan Homici, we will be able to conduct business pursuant to our business plan.
Our administrative office is located Manchester, 20, Ayres Road, England, M16 9NB.Our fiscal year end is August 31.
Business Overview
We hope to create an easy internet based platform to match senders and drivers to make one-to-one deliveries of items at a reasonable cost and with minimal environmental impact. The Founder, Mr. Homici, recognized that
people are constantly driving from one place to another, for business, for pleasure or to visit. Usually these trips include space in the car or truck to transport additional items or packages. Consequently, it appeared an opportunity would exist if
anyone travelling could make some money by picking up an item from a sender and delivering it to the city or destination he/she is headed to. If we use that private capacity, people could save a lot of time needed for transferring delivery from one
sorting facility to another, from one truck or plane to another truck or plane used by commercial carriers and have a private person perform the same service much like Uber or Lyft have done in the personal transportation field. Also our future
service is designed to reduce the cost of such delivery.
The driver making the delivery gets paid a fee he/she can use to cover the cost of gas for the trip. Unlike a standard courier service, our company will make the most sense to use when a private driver is already going
somewhere. This could result in not burning extra fuel and helps make it much more affordable.
Our service will also eliminate the need for packaging. Unlike regular mail or commercial service courier (ie UPS, FedEx) it's not going to have to bounce through four-five trucks and an airplane to get there. It's
going to sit in a private vehicle safely in someone’s backseat or trunk. This could reduce the usage of packaging materials by at least 80%.
The concept is relatively simple. Customers who want to send a parcel or any other item will register on our website with customer’s debit or credit card. The drivers will register with debit/credit cards and will go
through our process of verification. The driver profile on social media (Facebook for example) will allow him/her to become a registered driver with our system. The sender must verify his/her phone number and email. In some cases we might ask for a
customer’s government issued ID. Also the driver will upload his/her picture on a profile page along with his/her vehicle make, model, year of manufacture and license plate. We hope our process of registration will eliminate or significantly reduce
the possibility of items being stolen. Clients could be any business, florist, dentist, tailor, online shop, etc. Clients also can be a private person sending their personal articles.
Next step for sender will be entering the details of delivery: pick up time and location, delivery time and location, size and what is exactly being delivered. Available drivers with their time and travel information
will appear on our web site platform. The sender will see the profile of the driver (rating, review of his/her previous deliveries with customers’ feedback). Once the driver is selected the sender will get the driver account contact information. The
sender will message a price offer for delivery from his/her account to the driver’s account. The driver will get sender’s phone number once he/she accepted a price for delivery. At the time of picking up, the driver will update the tracking system on
our platform as “Picked up.” This will trigger a text massage to be sent to the receiver with a verification code. The sender and receiver will be able to track the driver. On arrival, the driver will hand over the delivered item to the receiver who
will give him/her the verification code. The driver will update status of delivery as ‘Delivered” and enter the verification code. This entry will trigger an invoice to be generated and the cost of delivery will be deducted from the sender’s card and
credited to the driver’s account. The sender and the driver can rate and review each other. Our Company will retain 10-20% from the paid delivery and allocate the rest to the driver.
The Sender Benefits
The senders can use this service to send documents, items, parcels, from one city to another city. Using the drivers already heading to a delivery city will result in a faster, easier, eco-friendly delivery service. We
hope in most cases our delivery will be cheaper than delivery with a regular carrier. In some cases regular carriers can not accept oversized items or it will be extremely expensive to mail it by regular post office or DHL, FedEx, etc. We hope that
our future service will provide more flexibility and convenience to the sender.
The Driver Benefits
The driver can make spare money on his/her trip from city A to city B. On our future website we will have ’tips option’ to pay. Satisfied senders will have an option to pay a tip to the driver if they were satisfied
with the delivery service.
Company Website and Mobile Phone Application
Our main website page will consist of a description of our services and a registration form to fill out for drivers and senders. Our website will also provide contact information about our company and a forum for
drivers and senders to comment on their experiences with our service. Currently we have registered the domain http://nowtransitinc.com/. Customers with computer access will order delivery via our website. Customers will have an option to download our
mobile phone application on the customer’s mobile phones as well.
First step to promote our services will be creation of a simple one-two pages micro website. This will showcase our app to the web audience. We will create a blog and attach it to our microsite. We will hire
individuals to write interesting content that will draw people to our website. Next we will use social media such as Twitter, Facebook, Google+ and LinkedIn to market our service. Also we will create a promotional video telling the story people can
identify with. Press media will be the best way to kick start our services and the best way to get it, is to manually reach out to journalists. We will pitch to app review websites: 148apps, AppStore Apps, AppAdvice, etc. Management will contact
bloggers who write on our online service niche and ask to review our service and application. We might publish on iTunes and podcast on our website. We are going to use different websites and applications to advertise our services: Snapchat, Path,
Pinterest, etc. Placing six-second “how-to” on Vine.com will be useful for our promotion. Promoting our blog posts on Dubbler with 60-second audios on social networks will draw some interest to our blog and website. Also we will run a contest to
encourage people to tweet and share content on their social networks promoting our services. We will offer promotion pricing and reduce our fee from time to time.
We compete against a number of companies, most of which have substantially greater resources than we do. The online shipping business is characterized by vigorous competition throughout the world. Brand recognition,
advertising, promotion, quality, performance, availability and price are some of the factors that impact consumers’ choices among online shipping services. Biggest multinational competitors engaged in the online shipping business are: Uber, Lyft.
When someone is using Uber and Lyft, he/she is essentially summoning the drivers to come somewhere they weren't already going, to take delivery somewhere the drivers also weren't already going. We think this might be
our cost advantage against companies like Uber, Lyft. Also, we will concentrate from city to city delivery while our biggest competitors concentrate on inner city delivery.
Agreements
Currently we have no agreements.
Patents and Trademarks
At the present we do not have any patents or trademarks.
Research and Development Activities
Other than time spent researching our proposed business, we have not spent any funds on research and development activities to date.
Environmental Laws
Our operations are not subject to any environmental laws.
Description of Property
We do not own any real property. Our principal place of business is located Manchester, 20, Ayres Road, England, M16 9NB, which is provided to us on a rent free basis by our sole officer and director. Our telephone
number is +441618841268.
Upon the completion of our offering, and funding permitting, we intend to establish an office elsewhere but have not identified a location as of the date of this Prospectus.
Legal Proceedings
We are not currently a party to any legal proceedings nor are we aware of any action that has been threatened.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
NOWTRANSIT INC (“we,” “our” or the “Company”) was incorporated in the State of Nevada on July 08, 2019. To date we have not generated revenue from our business operations. Furthermore, as we are still in the early
stages of developing our business and expect to operate at a loss as we grow our business. There is little historical financial information about our Company upon which to base an evaluation of our performance or to make a decision regarding an
investment in our shares. We cannot guarantee that we will be successful in our business operations or that we will achieve significant, if any, level of market acceptance for our proposed business operations and products. Our business could be
subject to any or all of the problems, expenses, delays and risks inherent in the establishment of a new business enterprise, including limited capital resources, possible changes in consumer interest, possible cost overruns due to price and cost
increases in services we require.
We have never been subject to any bankruptcy proceeding. Our principal executive offices are located Manchester, 20, Ayres Road, England, M16 9NB. Our phone number is +441618841268.
Results of Operations
The period July 8, 2019 (inception) through August 31, 2019
During the period, we incorporated the Company and prepared a business plan. Our loss since inception is $(900). We have just recently started our business operation and incurred expenses related to incorporation.
As reflected in the accompanying financial statements, the Company had an accumulated deficit of $(900) and nil working capital at August 31, 2019, and a net loss of $(900) for the period then ended.
We have not yet generated revenue. We do not anticipate that we will generate significant revenues until we have raised the funds necessary to conduct a marketing program. There is no assurance we will ever generate
revenue even if we raised all necessary funds.
We have registered domain http://nowtransitinc.com/.
Plan of Operation
During 12 months period from the date of this Prospectus, we will concentrate on the development of our operations, including obtaining the equity capital from this offering and plan to have our common stock quoted
on the OTCQB or OTCBB. There is no assurance that we will raise any amount as anticipated or that our common stock will be approved for trading on any over-the-counter market.
Our main source of revenue from operations will be generated from customers paying a fee for our services. Our fee service will be 10-20% from the total delivery price. If our plan has no revenue, then our minimum
expenses for the next 12 months will be $25,000, or a burn rate of $2,083 per month. We would not be able to apply sufficient funds to any other areas of developing our business, such as advertising and marketing, and would only provide a minimal
amount to develop our website. This would seriously hinder the development of our business and our ability to generate revenues.
We intend to offer our services in Europe and North America (USA and Canada), and we plan to run our business from outside the United States during the first years of operation.
Milestones that we will need to accomplish in order to implement our business plan in the next twelve months are as follows:
SEARCHING FOR WEBSITE DEVELOPER, MOBILE APPLICATION DEVELOPER, OFFICE RENT.
Period: 1st - 2nd months.
The steps in this milestone are as follows:
Our sole director will search and negotiate with website and mobile application developer.
If we generate at least $25,000 in this offering we will search for a reasonably-priced office for rent.
Please see Use of Proceeds for the funds we allocate to this activity on page 14.
We plan to spend $500-$1,000 on office equipment.
We plan to start to search for a reasonably-priced contractor for developing our website.
CREATING COMPANY WEBSITE.
Period: 3rd - 4th months
The steps in this milestone are as follows:
We hire a contractor to develop the Company’s website.
Please see Use of Proceeds for the funds we allocate to this activity on page 14.
TESTING COMPANY WEBSITE. PROMOTE OUR WEBSITE.
Period: 5th - 6th months
The steps in this milestone are as follows:
We are going to test and launch our company web site.
We will hire contractors to work on SEO (searching engine optimizer).
If we generated 25,000 we can afford to spend on SEO approximately $7,500 per 12 months.
If we generated $50,000 or more in this offering we can spend on SEO approximately $700-$1,200 monthly.
CREATING AND TESTING MOBILE APPLICATION.
Period: 7th - 8th months
The steps in this milestone are as follows:
We are going to hire a mobile application developer.
Please see Use of Proceeds for the funds we allocate to this activity on page 14.
ADVERTISING
Period: 9th -10th month
We will create a company profile on Facebook and other social media resources. We will pay to advertise our services on social media such as Facebook, Google +, Linked-in, Twitter , etc. We will print advertising
brochures and flyers, andplace advertisements for our product in appropriate service websites.
If we generate $25,000, we will spend all funds to promote our website online (SEO).
Please see Use of Proceeds for the funds we allocate to this activity on page 14.
ADVERTISING.
Period: 11th -12th months.
We will keep up with social media advertising, and start to advertise on TV, newspapers and radio.
Please see Use of Proceeds for the funds we allocate to this activity on page .
To implement our plan of operations we require a minimum of $25,000 for the next twelve months as described in our Plan of Operations. The above figures represent only estimated costs. Mr. Ivan Homici has agreed to
loan us funds to implement our business plan. Mr. Ivan Homici will be repaid from revenues of operations if and when we generate revenues to pay the obligation.
Liquidity and Capital Resources
As of August 31, 2019, we had $nil in cash.
Since inception, we have sold 2,800,000 shares of our common stock to our sole officer and director at a price of $0.001 per share, to pay for start-up expenses.
Our auditors have issued a “going concern” opinion, meaning that there is substantial doubt if we can continue as an on-going business for the next twelve months unless we obtain additional capital. No substantial
revenues are anticipated until we have completed the financing from this Offering and implemented our plan of operations. Our only source for cash at this time is investments by others in this Offering. We must raise cash to implement our strategy
and stay in business. The amount of the Offering will likely allow us to operate for at least one year and have the capital resources required to cover the material costs with becoming a publicly reporting. The Company anticipates over the next 12
months the cost of being a reporting public company will be approximately $10,000.
We cannot guarantee that we will be able to sell all the shares offered herein. If we are successful, any money raised will be applied to the items set forth in the Use of Proceeds section of this Prospectus. We will
attempt to raise the necessary funds to proceed with all phases of our plan of operation. The sources of funding we may consider to fund this work include a public offering, a private placement of our securities or loans from our director or others.
As of the date of this registration statement, the current funds available to us is not sufficient to implement our business plan until we raise funds from this offering. Ivan Homici, has indicated that he may be
willing to provide funds required to maintain the reporting status in the form of an interest-free, unsecured loan until closing of this Offering. However, there is no contract in place or written agreement securing this arrangement. Management
believes if we do not raise sufficient funds in this Offering to cover the costs of implementing our business plan, as well as the costs associated with being a reporting company, we will have to cease all such efforts. As such, your investment may
be lost in its entirety. See “Risk Factors.”
If we need additional cash and cannot raise it, we will either have to suspend operations until we do raise the cash, or cease operations entirely. If we raise 25% of money from this offering, we believe it will fund
operations for approximately three months, but with limited funds available to build and grow our business. If we raise 100% of money from this offering, we believe the money will last for one year and also provide funds for a growth strategy.
To meet our need for cash we are attempting to raise money from this Offering. We believe that we will be able to raise enough money through this offering to expand operations but we cannot guarantee that once we
expand operations we will stay in business after doing so. If we are unable to successfully find customers we may quickly use up the proceeds from this offering and will need to find alternative sources. At the present time, we have not made any
arrangements to raise additional cash, other than through this Offering.
Management believes that the net proceeds, assuming a minimum of $25,000 is raised (provided that we are not required to raise any minimum amount of funding in the Offering), will be sufficient to implement our initial
plan of operations in the 12 months period. However, after one year we may need to raise additional financing.
We will be highly dependent upon the success of future private offerings of equity or debt securities, as described herein. Therefore, the failure thereof would result in the need to seek capital from other resources
such as taking loans, which would likely not even be possible for the Company. However, if such financing were available, because we are a start-up company with no operations to date, we would likely have to pay additional costs associated with high
risk loans and be subject to an above market interest rate. At such time these funds are required, management would evaluate the terms of such debt financing. If the Company cannot raise additional proceeds via a private placement of its equity or
debt securities, or secure a loan, the Company would be required to cease business operations as a result, investors would lose all of their investment.
We are not currently required to maintain an effective system of internal controls. We will be not be required to comply with the internal control requirements of the Sarbanes-Oxley Act until we either are required to
file an annual report pursuant to Section 13(a) or 15(d) of the Exchange Act (15 U.S.C. 78m or 78(d)) for the prior fiscal year or if we had filed an annual report with the Commission for the prior fiscal year.
When and if we do become subject to the internal control requirements of the Sarbanes-Oxley Act we may incur significant expense in meeting our public reporting responsibilities because it will take time, management
involvement and perhaps outside resources to determine what internal control improvements are necessary for us to meet regulatory requirements and market expectations for our operations. Becoming compliant may take longer than we expect, which may
increase our exposure to financial fraud or erroneous financing reporting.
Off-Balance Sheet Arrangements; Commitments and Contractual Obligations
We have not entered into 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 and would be considered material to investors.
Critical Accounting Policies and Estimates
The discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the
United States and are attached hereto. The preparation of these financial statements requires us to make estimates and judgments that affect the amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and
liabilities. On an on-going basis, we evaluate our estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. See additional accounting policies disclosed in the footnotes
to our accompanying financial statements.
Although our operations are influenced by general economic conditions, we do not believe that inflation had a material effect on our results of operations during the period of July 8, 2019 (inception) to August 31,
2019.
DIRECTORS, EXECUTIVE OFFICERS, PROMOTER AND CONTROL PERSONS
The board of directors elects our executive officers annually. A majority vote of the directors who are in office is required to fill vacancies. Each director is elected for the term of one year, and until his or her
successor is elected and qualified, or until his earlier resignation or removal. The name, address, age and position of our officers and directors are as follows:
Name and Address of Executive
Officer and/or Director
|
|
Age
|
|
Position
|
|
|
|
|
|
Ivan Homici
Manchester,
20, Ayres Road,
England, M16 9NB
|
|
35
|
|
President, Secretary, Treasurer and Director
|
The person named above has held his offices/positions since the inception of our Company and is expected to hold said offices/positions until the next annual meeting of our stockholders.
Resume
Ivan Homici has been our President, Secretary, Treasurer and sole Director since our incorporation on July 08, 2019. Mr. Homici graduated from the National Aviation University, Ukraine, in 2003. (Qualification:
computer’s science). From 2003 to 2007, Ivan worked as a computer engineer at Holding Ritzio Entertainment group in Kiev, Ukraine. His responsibilities were to manage computer networks and special software for accounting for money from slot
machines and casinos.
From 2006 to 2007, Mr. Homici worked as a purchase manager at Clio group where he purchased wholesale advertising products from Chinese suppliers. Since 2008 to 2015, Mr. Homici has been an owner of the companies RA
Fortuna LLC and Aquatelevision LLC in Kiev, Ukraine. Those companies deal with sales, advertising and promotional products, and also specialized equipment such as waterproof and mirror TVs, bio-ethanol fireplaces and other equipment. This business
had him dealing with Chinese manufacturers and distributors inside China. In 2015, Mr. Homici established a company called Go to the future ltd based in Manchester, UK. This company manufactures portable electric vehicles such as electric scooters,
skateboards, bikes, etc.
Committees of the Board
Our Company currently does not have nominating, compensation or audit committees or committees performing similar functions, nor does our Company have a written nominating, compensation or audit committee charter. Our
director believes that it is not necessary to have such committees, at this time, because the functions of such committees can be adequately performed by the sole director.
Our Company does not have any defined policy or procedural requirements for shareholders to submit recommendations or nominations for Directors. The sole director believes that, given the stage of our development, a
specific nominating policy would be premature and of little assistance until our business operations develop to a more advanced level. Our Company does not currently have any specific or minimum criteria for the election of nominees to the sole
director and we do not have any specific process or procedure for evaluating such nominees. The sole director, will assess all candidates, whether submitted by management or shareholders, and make recommendations for election or appointment.
A shareholder who wishes to communicate with our sole director may do so by directing a written request addressed to our president and director, at the address appearing on the first page of this Prospectus.
Corporate Governance
The Company promotes accountability for adherence to honest and ethical conduct; endeavors to provide full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with the
Securities and Exchange Commission (the “SEC”) and in other public communications made by the Company; and strives to be compliant with applicable governmental laws, rules and regulations. The Company has not formally adopted a written code of
business conduct and ethics that governs the Company’s employees, officers and directors as the Company is not required to do so.
In lieu of an Audit Committee, the Company’s sole director is responsible for reviewing and making recommendations concerning the selection of outside auditors, reviewing the scope, results and effectiveness of the
annual audit of the Company's financial statements and other services provided by the Company’s independent public accountants. The sole director reviews the Company's internal accounting controls, practices and policies.
EXECUTIVE COMPENSATION
Management Compensation
The following tables set forth certain information about compensation paid, earned or accrued for services by our sole officer and director from our inception on July 08, 2019 until August 31, 2019:
Name and
Principal
Position
|
Year
|
|
Salary
($)
|
|
Bonus
($)
|
|
Stock
Awards
($)
|
|
Option
Awards
($)
|
|
Non-Equity
Incentive Plan
Compensation
($)
|
|
Nonqualified
Deferred
Compensation
($)
|
|
All Other
Compensation
($)
|
|
Total
($)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ivan Homici, President,
|
2019
|
|
|
-0-
|
|
|
-0-
|
|
|
-0-
|
|
|
-0-
|
|
|
-0-
|
|
|
-0-
|
|
|
-0-
|
|
|
-0-
|
|
Treasurer and Secretary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Homici currently devotes approximately twenty hours per week to manage our affairs. He has agreed to work with no remuneration until such time as we generate profits from operations. At this time, we cannot
accurately estimate when this will occur, if ever, to implement this compensation, or what the amount of the compensation will be.
There are no annuity, pension or retirement benefits proposed to be paid to the officer or director or employees in the event of retirement at normal retirement date pursuant to any presently existing plan provided or
contributed to by the Company or any of its subsidiaries, if any.
Compensation of Directors
Our sole director is currently not being compensated and we expect no compensation to be paid for the foreseeable future. Although no payments to our director has been made, he may be reimbursed for actual expenses
incurred relating to our business.
We have not adopted a stock plan but may do so in the future.
The executive officer is currently not a party to any employment agreement with us.
Our securities are not currently traded on any public exchange and as such, we are not currently subject to corporate governance standards of listed companies, which require, among other things, that the majority of
the board of directors be independent. We are not currently subject to corporate governance standards defining the independence of our directors, and we have chosen to define an “independent” director in accordance with the NASDAQ Global Market’s
requirements for independent directors.
Under the NASDAQ rules, our current director does not qualify as an independent director.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
On July 24, 2019, we issued a total of 2,800,000 shares of our common stock to Ivan Homici, our sole officer and director for consideration of $2,800.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information concerning the number of shares of our common stock owned beneficially as of August 31, 2019 by: (i) each person (including any group) known to us to own more than
five percent (5%) of any class of our voting securities, (ii) our director, and or (iii) our officer. Unless otherwise indicated, the stockholder listed possesses sole voting and investment power with respect to the shares shown.
Title of Class
|
Name and Address
of
Beneficial Owner
|
Amount and
Nature of
Beneficial
Ownership
|
Percentage
Before
Offering
|
Percentage
Following
Offering
|
|
|
|
|
|
Common
|
Ivan Homici
|
2,800,000
|
100%
|
28%
|
|
|
|
|
|
Common
|
All Officers and Directors as a Group (1 person)
|
2,800,000
|
100%
|
28%
|
Future Sales by Existing Shareholders
A total of 2,800,000 common shares at $0.001 per share have been issued to our sole stockholder. They are restricted securities, as that term is defined in Rule 144 of the Rules and Regulations of the SEC promulgated
under the Act. Under Rule 144, such shares can be publicly sold, subject to volume restrictions and certain restrictions on the manner of sale, commencing six months after their acquisition.
Any sale of shares held by the existing stockholder (after applicable restrictions expire) and/or the sale of shares purchased in this offering (which would be immediately resalable after the offering), may have a
depressive effect on the price of our common stock in any market that may develop, of which there can be no assurance.
MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
No Public Market for Common Stock
There is presently no public market for our common stock. We anticipate upon the effectiveness of the registration statement that market maker will file an application on our behalf in order to be quoted on the OTC
Bulletin Board. We can provide no assurance that our shares will be traded on the bulletin board, or if traded, that a public market will materialize.
The Securities Exchange Commission has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00,
other than securities registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. The
penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the Commission, that: (a) contains a description of the nature and level of risk in the market for
penny stocks in both public offerings and secondary trading;(b) contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation to such duties or other
requirements of Securities' laws; (c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price;(d) contains a toll-free telephone
number for inquiries on disciplinary actions;(e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and;(f) contains such other information and is in such form, including language, type, size and
format, as the Commission shall require by rule or regulation.
The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with; (a) bid and offer quotations for the penny stock;(b) the compensation of the broker-dealer and its
salesperson in the transaction;(c) the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statements showing the market
value of each penny stock held in the customer's account.
In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules; the broker-dealer must make a special written determination that the penny stock is a
suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitability
statement.
These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our stock if it becomes subject to these penny stock rules. Therefore, because our common stock is subject
to the penny stock rules, stockholders may have difficulty selling those securities.
The Securities and Exchange Commission has also adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less
than $5.00 (other than securities registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or
system).
A purchaser is purchasing penny stock which limits the ability to sell the stock. The shares offered by this Prospectus constitute penny stock under the Securities and Exchange Act. The shares will remain penny stocks
for the foreseeable future. The classification of penny stock makes it more difficult for a broker-dealer to sell the stock into a secondary market, which makes it more difficult for a purchaser to liquidate his/her investment. Any broker-dealer
engaged by the purchaser for the purpose of selling his or her shares in us will be subject to Rules 15g-1 through 15g-10 of the Securities and Exchange Act. Rather than creating a need to comply with those rules, some broker-dealers will refuse to
attempt to sell penny stock. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document prepared by the Commission, which:
•
|
contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading;
|
•
|
contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation to such duties or other requirements of the
Securities Act of 1934, as amended;
|
•
|
contains a brief, clear, narrative description of a dealer market, including "bid" and "ask" prices for penny stocks and the significance of the spread between the bid and ask price;
|
•
|
contains a toll-free telephone number for inquiries on disciplinary actions;
|
•
|
defines significant terms in the disclosure document or in the conduct of trading penny stocks; and
|
•
|
contains such other information and is in such form (including language, type, size and format) as the Securities and Exchange Commission shall require by rule or regulation;
|
The broker-dealer also must provide, prior to effecting any transaction in a penny stock, to the customer:
•
|
the bid and offer quotations for the penny stock;
|
•
|
the compensation of the broker-dealer and its salesperson in the transaction;
|
•
|
the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and
|
•
|
monthly account statements showing the market value of each penny stock held in the customer's account.
|
In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules; the broker-dealer must make a special written determination that the penny stock is a
suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitability
statement. These disclosure requirements will have the effect of reducing the trading activity in the secondary market for our stock because it will be subject to these penny stock rules. Therefore, stockholders may have difficulty selling their
securities.
Upon completion of this offering, we will be subject to certain reporting requirements and will furnish annual financial reports to our stockholders, certified by our independent accountants, and will furnish unaudited
quarterly financial reports in our quarterly reports filed electronically with the SEC. All reports and information filed by us can be found at the SEC website, www.sec.gov.
Holders of Our Common Stock
Currently, we have one (1) holder of record of our common stock.
Dividends
We have not declared any dividends and we do not plan to declare any dividends in the foreseeable future.
DESCRIPTION OF SECURITIES TO BE REGISTERED
General
Our authorized capital stock consists of 75,000,000 shares of common stock, par value $0.0001 per share. As of August 31, 2019, there were 2,800,000 shares of our common stock issued and outstanding those were held by
one registered stockholder of record, our sole officer and director.
Common Stock
The following is a summary of the material rights and restrictions associated with our common stock.
The holders of our common stock currently have (i) equal ratable rights to dividends from funds legally available therefore, when, as and if declared by the Board of Directors of the Company; (ii) are entitled to share
ratably in all of the assets of the Company available for distribution to holders of common stock upon liquidation, dissolution or winding up of the affairs of the Company (iii) do not have preemptive, subscription or conversion rights and there are
no redemption or sinking fund provisions or rights applicable thereto; and (iv) are entitled to one non-cumulative vote per share on all matters on which stock holders may vote. Please refer to the Company’s Articles of Incorporation, Bylaws and the
applicable statutes of the State of Nevada for a more complete description of the rights and liabilities of holders of the Company’s securities.
Preferred Stock
We do not have an authorized class of preferred stock.
Share Purchase Warrants
We have not issued and do not have any outstanding warrants to purchase shares of our common stock.
Options
We have not issued and do not have any outstanding options to purchase shares of our common stock.
Convertible Securities
We have not issued and do not have any outstanding securities convertible into shares of our common stock or any rights convertible or exchangeable into shares of our common stock.
Anti-Takeover Law
Nevada Revised Statutes sections 78.378 to 78.379 provide state regulation over the acquisition of a controlling interest in certain Nevada corporations unless the articles of incorporation or bylaws of the corporation
provide that the provisions of these sections do not apply. Our articles of incorporation and bylaws do not state that these provisions do not apply. The statute creates a number of restrictions on the ability of a person or entity to acquire control
of a Nevada company by setting down certain rules of conduct and voting restrictions in any acquisition attempt, among other things. The statute is limited to corporations that are organized in the state of Nevada and that have 200 or more
stockholders, at least 100 of whom are stockholders of record and residents of the State of Nevada; and does business in the State of Nevada directly or through an affiliated corporation. Because of these conditions, the statute currently does not
apply to our company.
Dividend Policy
We have never declared or paid any cash dividends on our common stock. We currently intend to retain future earnings, if any, to finance the expansion of our business. As a result, we do not anticipate paying any cash
dividends in the foreseeable future.
INTERESTS OF NAMED EXPERTS AND COUNSEL
No expert or counsel named in this Prospectus as having prepared or certified any part of this Prospectus or having given an opinion upon the validity of the securities being registered or upon other legal matters in
connection with the registration or offering of the Common Stock was employed on a contingency basis, or had, or is to receive, in connection with the offering, a substantial interest, direct or indirect, in the Company or any of its parents or
subsidiaries. Nor was any such person connected with the Company or any of its parents or subsidiaries as a promoter, managing or principal underwriter, voting trustee, director, officer, or employee.
LEGAL MATTERS
The validity of the Common Stock offered hereby will be passed upon by Linn Law Corp., a professional law corporation.
EXPERTS
Our audited financial statements for the period from July 8, 2019 (inception) to August 31, 2019 included in this Prospectus, have been audited by Spiegel Accountancy Corp.,
independent registered public accountants, as indicated in their report with respect thereto, and are in reliance upon the authority of said firm as experts in accounting and auditing.
DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the “Act” or “Securities Act”) may be permitted to directors, officers or persons controlling our Company pursuant to the foregoing
provisions, or otherwise, we have been advised that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.
ADDITIONAL INFORMATION
We have filed this registration statement on Form S-1, including exhibits, with the SEC with respect to the shares being offered in this Offering. This Prospectus is part of the registration statement, but it does not
contain all of the information included in the registration statement or exhibits. If and when the SEC declares our registration statement effective, we will begin filing reports pursuant to the Securities Exchange Act of 1934, as amended. For
further information with respect to our Common Stock, and us we refer you to the registration statement and to the exhibits and schedules to the registration statement. Statements contained in this Prospectus as to the contents of any contract or any
other document referred to herein are not necessarily complete, and in each instance, we refer you to the copy of the contract or other document filed as an exhibit to the registration statement. Each of these statements is qualified in all respects
by this reference. You may inspect a copy of the registration statement without charge at the SEC’s principal office in Washington, D.C., and copies of all or any part of the registration statement may be obtained from the Public Reference Section of
the SEC, 100 F. St. NE, Washington, D.C. 20549, upon payment of fees prescribed by the SEC. The SEC maintains a worldwide website that contains reports, proxy and information statements and other information regarding registrants that file
electronically with the SEC. The address of the website is http://www.sec.gov. The SEC’s toll free investor information service can be reached at 1-800-SEC-0330.
FINANCIAL STATEMENTS
The audited financial statements for the period of July 8, 2019 (inception) to August 31, 2019 are set forth on pages F-1 through F-9.
YOU SHOULD RELY ONLY ON THE INFORMATION CONTAINED IN THIS PROSPECTUS. WE HAVE NOT AUTHORIZED ANYONE TO PROVIDE INFORMATION DIFFERENT FROM THAT CONTAINED IN THIS PROSPECTUS. WE ARE OFFERING TO SELL,
AND SEEKING OFFERS TO BUY, SHARES OF COMMON STOCK ONLY IN JURISDICTIONS WHERE OFFERS AND SALES ARE PERMITTED. THE INFORMATION CONTAINED IN THIS PROSPECTUS IS ACCURATE ONLY AS OF THE DATE OF THIS PROSPECTUS REGARDLESS OF THE TIME OF DELIVERY OF THIS
PROSPECTUS, OR OF ANY SALE OF OUR COMMON STOCK.
INDEX TO FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm
|
F-2
|
|
|
Financial Statements – July 08, 2019 (Inception) to August 31, 2019
|
F-3
|
|
|
Balance Sheet – August 31, 2019
|
F-3
|
|
|
Statement of Operations – July 08, 2019 (inception) through August 31, 2019
|
F-4
|
|
|
Statement of Changes in Stockholder’s Equity – July 08, 2019 (inception) through August 31, 2019
|
F-5
|
|
|
Statement of Cash Flows – July 08, 2019 (inception) through August 31, 2019
|
F-6
|
|
|
Notes to the Financial Statements
|
F-7
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the
Company’s Board of Director and Stockholder of NOWTRANSIT INC.
Manchester, England
Opinion on the Financial Statements
We have audited the accompanying balance sheet of NOWTRANSIT INC (the “Company”) as of August 31, 2019 and the related statements of operations, changes in stockholder’s equity, and cash flows for the period of July
8, 2019 (inception) through August 31, 2019. NOWTRANSIT INC’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audit.
Consideration of the Company’s Ability to Continue as a Going Concern
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 process of raising capital,
has generated no revenue and has expensed $900 for the period ended August 31, 2019. This raises substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters also are described in Note 2. The
financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our
audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (“United States”) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and
the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are
required to obtain an understanding of internal control over financial reporting, 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.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ Spiegel Accountancy Corporation
|
|
|
|
We have served as the Company’s auditor since 2019.
|
Pleasant Hill, California
October 29, 2019
NOWTRANSIT INC
Balance Sheet
(audited)
|
|
August 31, 2019
|
|
ASSETS
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
Deferred Offering Costs
|
|
$
|
1,900
|
|
|
|
|
|
|
Total Assets
|
|
$
|
1,900
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDER’S EQUITY
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
$
|
-
|
|
|
|
|
|
|
Stockholder’s Equity
|
|
|
|
|
Common stock, par value $0.0001; 75,000,000 shares authorized,
|
|
|
|
|
2,800,000 shares issued and outstanding
|
|
|
280
|
|
Additional paid-in capital
|
|
|
2,520
|
|
Accumulated deficit
|
|
|
(900
|
)
|
Total Stockholder’s Equity
|
|
|
1,900
|
|
|
|
|
|
|
Total Liabilities and Stockholder’s Equity
|
|
$
|
1,900
|
|
See accompanying notes, which are an integral part of these financial statements
NOWTRANSIT INC
Statement of Operations
|
|
Period of
July 8, 2019
(Inception) to
August 31, 2019
|
|
|
|
|
|
REVENUES
|
|
$
|
-
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
General and Administrative Expenses
|
|
|
900
|
|
TOTAL OPERATING EXPENSES
|
|
|
900
|
|
|
|
|
|
|
NET LOSS FROM OPERATIONS
|
|
|
(900
|
)
|
|
|
|
|
|
PROVISION FOR INCOME TAXES
|
|
|
-
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(900
|
)
|
|
|
|
|
|
NET LOSS PER SHARE: BASIC AND DILUTED
|
|
$
|
(0.00
|
)
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
|
|
|
|
|
BASIC AND DILUTED
|
|
|
1,970,370
|
|
See accompanying notes, which are an integral part of these financial statements
NOWTRANSIT INC
Statement of Changes in Stockholder’s Equity
For the Period of July 8, 2019 (Inception) to August 31, 2019
|
|
Common Stock
|
|
|
Additional
Paid-in
|
|
|
Accumulated
|
|
|
Total
Stockholder’s
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Deficit
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at July 8, 2019 (Inception)
|
|
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock issued to related party
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for cash consideration towards work
|
|
|
2,800
|
|
|
|
280
|
|
|
|
2,520
|
|
|
|
-
|
|
|
|
2,800
|
|
performed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the period ended August 31, 2019
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(900
|
)
|
|
|
(900
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at August 31, 2019
|
|
|
2,800,000
|
|
|
$
|
280
|
|
|
$
|
2,520
|
|
|
$
|
(900
|
)
|
|
$
|
1,900
|
|
See accompanying notes, which are an integral part of these financial statements
NOWTRANSIT INC
Statement of Cash Flows
|
|
Period of
July 8, 2019
(Inception) to
August 31, 2019
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
Net loss for the period
|
|
$
|
(900
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
Deferred Offering Costs
|
|
|
(1,900
|
)
|
CASH FLOWS USED IN OPERATING ACTIVITIES
|
|
|
(2,800
|
)
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
-
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
2,800
|
|
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
|
|
|
2,800
|
|
|
|
|
|
|
NET CHANGE IN CASH
|
|
|
-
|
|
|
|
|
|
|
Cash, beginning of period
|
|
|
-
|
|
|
|
|
|
|
Cash, end of period
|
|
$
|
-
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
Interest paid
|
|
$
|
-
|
|
Income taxes paid
|
|
$
|
-
|
|
See accompanying notes, which are an integral part of these financial statements
NOWTRANSIT INC
Notes to the Financial Statements
Period of July 8, 2019 (Inception) to August 31, 2019
Note 1 – ORGANIZATION AND NATURE OF BUSINESS
NOWTRANSIT INC (“the Company,”, “we,” “us” or “our”) was incorporated in the State of Nevada on July 8, 2019. We just recently started our operations. NOWTRANSIT INC will be an
online platform service, matching people with items to be sent with drivers already headed in that direction. Senders can use this service to send documents, items, parcels, from one city to another city or virtually anywhere else a match can be
found. We will not hire any drivers for our company. Drivers will be deemed to be occasional independent contractors meaning the person driving from city A to city B is willing to earn some money by picking up and delivering an item from city A to
city B. The Company will serve as an online matching service and nothing more. Once matched, the Company will have no further involvement in the transaction between sender and driver. We intend for this service to be provided in North America and
Europe.
Note 2 – GOING CONCERN
The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), which contemplate continuation of the Company as a going
concern. The Company has an accumulated deficit of $2,800 as of August 31, 2019. The Company currently has losses and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended
period of time. Therefore, there is substantial doubt about the Company’s ability to continue as a going concern. 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 will 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.
Note 3 – SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES
Basis of presentation
The accompanying financial statements have been prepared in accordance with GAAP. The Company’s year end is August 31.
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.
Deferred Offering Costs
Financial Accounting Standard Board Accounting Standards Codification number 340-10-S99-1, Other Assets and Deferred Costs, allows
specific, incremental costs directly related to securities offerings to be deferred and charged against the gross proceed of the offering. The Company defers applicable syndication expenses based on this criteria. The Company will write off all
deferred offering costs if a securities offering is aborted.
Fair Value of Financial Instruments
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820 "Fair Value Measurement" defines fair value as the exchange price that would be received for an asset or paid to
transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standards apply to recurring and nonrecurring fair value measurements of
financial and non-financial assets and liabilities. The Company determines the fair values of its assets and liabilities based on a fair value hierarchy that includes three levels of inputs that may be used to measure fair value.
The three levels are defined as follows:
Level 1:
|
defined as observable inputs such as quoted prices in active markets;
|
Level 2:
|
defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
|
Level 3:
|
defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
|
Due to its short-term nature, the carrying value of deferred offering costs approximated fair value at August 31, 2019.
Income Taxes
The Company is a C Corporation under the Internal Revenue Code and a similar section of the state code.
All income tax amounts reflect the use of the liability method under accounting for income taxes. Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes
currently due plus deferred taxes arising primarily from differences between financial and tax reporting purposes. Current year expense represents the amount of income taxes paid, payable or refundable for the period.
Deferred income taxes, net of appropriate valuation allowances, are determined using the tax rates expected to be in effect when the taxes are actually paid. Valuation allowances are recorded against deferred tax
assets when it is more likely than not that such assets will not be realized. When an uncertain tax position meets the more likely than not recognition threshold, the position is measured to determine the amount of benefit or expense to recognize in
the financial statements.
The Company’s income tax returns are subject to review and examination by federal, state and local governmental authorities. As of August 31, 2019, there is no year open to examination with federal, state and local
governmental authorities. To the extent penalties and interest are incurred through an examination, they would be included in the income tax section of the statement of operations and comprehensive loss.
Basic Income (Loss) Per Share
The Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share.” Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average
number of outstanding common shares during the period. Diluted income (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. As of August 31, 2019 there were no potentially dilutive debt or equity instruments issued or outstanding.
Recent Accounting Pronouncements
We have reviewed all the recently-issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.
Note 4 – COMMON STOCK
The Company has 75,000,000, $0.0001 par value shares of voting common stock authorized.
On July 24, 2019, the Company issued 2,800,000 to its sole officer and director at $.001 for $2,800. There were 2,800,000 shares of common stock issued and outstanding as of August 31, 2019.
Common Stock
All shares of common stock have voting rights and are identical. All holders of shares of common stock shall at every meeting of the stockholders be entitled to one vote for each share of the capital stock held by such
stockholder.
Note 5 – INCOME TAXES
The Company has net operating losses of approximately $200 for the period ended July 8, 2019, which has been offset by a valuation allowance. The net operating loss can be carried forward indefinitely.
Note 6 – COMMITMENTS AND CONTINGENCIES
In the normal course of business, the Company may become a party to litigation matters involving claims against it. At August 31, 2019, there are no current matters that would have a material effect on the Company’s
financial position or results of operations.
Note 7 – SUBSEQUENT EVENTS
In accordance with FASB ASC Topic 855 “Subsequent Events,” the Company has analyzed its operations through October 29, 2019 and the date the financial statements were issued, and there were no events to report
PROSPECTUS
10,000,000 SHARES OF COMMON STOCK
NOWTRANSIT INC
Dealer Prospectus Delivery Obligation
Until _____________ ___, 20___, all dealers that effect transactions in these securities whether or not participating in this offering, may be required to
deliver a prospectus. This is in addition to the dealers’ obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.
PART II
INFORMATION NOT REQUIRED IN THE PROSPECTUS
ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The estimated costs (assuming all shares are sold) of this offering are as follows:
SEC Registration Fee
|
|
$
|
12.98
|
|
Printing Expenses
|
|
|
89.92
|
|
Accounting Fees and Expenses
|
|
|
1,300.00
|
|
Legal Fees, Auditor Fees and Expenses
|
|
|
10,500.00
|
|
Edgar Agent Fees
|
|
|
1,700.00
|
|
TOTAL
|
|
$
|
13,602.90
|
|
(1) All amounts are estimates, other than the SEC’s registration fee.
ITEM 14. INDEMNIFICATION OF DIRECTOR AND OFFICERS
Our officers and directors are indemnified as provided by the Nevada Revised Statutes and our bylaws.
Under the governing Nevada statutes, director immunity from liability to a company or its shareholders for monetary liabilities applies automatically unless it is specifically limited by a company's articles of
incorporation. Our articles of incorporation do not contain any limiting language regarding director immunity from liability. Excepted from this immunity are:
|
1.
|
a willful failure to deal fairly with the company or its shareholders in connection with a matter in which the director has a material conflict of interest;
|
|
2.
|
a violation of criminal law (unless the director had reasonable cause to believe that his or her conduct was lawful or no reasonable cause to believe that his or her conduct was unlawful);
|
|
3.
|
a transaction from which the director derived an improper personal profit; and
|
Our bylaws provide that we will indemnify our directors and officers to the fullest extent not prohibited by Nevada law; provided, however, that we may modify the extent of such indemnification by individual contracts
with our directors and officers; and, provided, further, that we shall not be required to indemnify any director or officer in connection with any proceeding (or part thereof) initiated by such person unless:
|
1.
|
such indemnification is expressly required to be made by law;
|
|
2.
|
the proceeding was authorized by our Board of Directors;
|
|
3.
|
such indemnification is provided by us, in our sole discretion, pursuant to the powers vested us under Nevada law; or;
|
|
4.
|
such indemnification is required to be made pursuant to the bylaws.
|
Our bylaws provide that we will advance to any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, by reason of the fact that he is or was a director or officer, of the company, or is or was serving at the request of the company as a director or executive officer of another company, partnership, joint venture,
trust or other enterprise, prior to the final disposition of the proceeding, promptly following request therefore, all expenses incurred by any director or officer in connection with such proceeding upon receipt of an undertaking by or on behalf of
such person to repay said amounts if it should be determined ultimately that such person is not entitled to be indemnified under our bylaws or otherwise.
Our bylaws provide that no advance shall be made by us to an officer of the company, except by reason of the fact that such officer is or was a director of the company in which event this paragraph shall not apply, in
any action, suit or proceeding, whether civil, criminal, administrative or investigative, if a determination is reasonably and promptly made: (a) by the board of directors by a majority vote of a quorum consisting of directors who were not parties to
the proceeding, or (b) if such quorum is not obtainable, or, even if obtainable, a quorum of disinterested directors so directs, by independent legal counsel in a written opinion, that the facts known to the decision-making party at the time such
determination is made demonstrate clearly and convincingly that such person acted in bad faith or in a manner that such person did not believe to be in or not opposed to the best interests of the company.
Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended, may be permitted to directors, officers, or persons controlling the Company pursuant to the foregoing provisions, the
Company has been informed that, in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Securities Act of 1933, as amended, and is therefore unenforceable.
ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES
Set forth below is information regarding the issuance and sales of securities without registration since inception.
On July 24, 2019 NOWTRANSIT INC offered and sold 2,800,000 share of common stock to our sole officer and director, Ivan Homici, for a purchase price of $0.001 per share, for $2,800. NOWTRANSIT INC made the offer and
sale in reliance on the exemption from registration afforded by Section 4a(2) of the Securities Act of 1933, as amended (the “Securities Act”), on the basis that the securities were offered and sold in a non-public offering to a “sophisticated
investor” who had access to registration-type information about the Company. No commission was paid in connection with the sale of any securities and no general solicitations were made to any person.
We have not issued any other of our securities during the past three years.
ITEM 16. EXHIBITS
Exhibit
Number
|
|
Description of Exhibit
|
|
|
|
3.1
|
|
Articles of Incorporation of the Registrant
|
3.2
|
|
Bylaws of the Registrant
|
5.1
|
|
Opinion of Linn Law Corp., a professional law corporation. re: the legality of the shares being registered
|
10.1
|
|
Form of Subscription Agreement
|
23.1
|
|
Consent of Linn Law Corp., a professional law corporation (included in Exhibit 5.1)
|
23.2
|
|
Consent of Spiegel Accountancy Corp.
|
99.1
|
|
Minutes of a Meeting of the Directors of the Company
|
ITEM 17. UNDERTAKINGS
The undersigned Registrant hereby undertakes:
(a)(1) To file, during any period in which offers or sales of securities are being made, a post-effective amendment to this registration statement to:
|
(i)
|
Include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
|
|
(ii)
|
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) (§230.424(b) of this chapter) if, in the
aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement.
|
|
(iii)
|
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;
|
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(4) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:
|
(i)
|
If the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on
|
Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that
no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the
registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in
any such document immediately prior to such date of first use.
(5) That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: The undersigned registrant
undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to
such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
|
(i)
|
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
|
|
(ii)
|
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
|
|
(iii)
|
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or our securities provided by or on behalf of the undersigned registrant; and
|
|
(iv)
|
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
|
Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the “Act”) may be permitted to our directors, officers and controlling persons pursuant to the provisions above, or otherwise, we
have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act, and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities, other than the payment by us of expenses incurred or paid by one of our directors, officers, or controlling persons in the successful defense of
any action, suit or proceeding, is asserted by one of our directors, officers, or controlling persons in connection with the securities being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether such indemnification is against public policy as expressed in the Securities Act, and we will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in
Manchester, 20, Ayres Road, England, M16 9NB on November 4, 2019.
|
NOWTRANSIT INC
|
|
|
|
|
|
By: /s/ Ivan Homici
|
|
|
Name: Ivan Homici
Title: President
|
In accordance with the requirements of the Securities Act of 1933, this registration statement was signed by the following persons in the capacities and on the dates stated.
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
|
|
|
/s/ Ivan Homici
|
|
|
|
|
Ivan Homici
|
|
President, Treasurer, Secretary and Director
(Principal Executive, Financial and Accounting Officer)
|
|
November 4, 2019
|
II-4