NEW YORK
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13-3778988
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(State or Other Jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification No.)
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Large accelerated filer
☐
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Accelerated filer
☐
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Non-accelerated filer
☐
(Do not check if a smaller reporting company)
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Smaller reporting company
☒
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PART I
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PAGE
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Item 1.
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4
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Item 1A.
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7 | |
Item 1B.
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Unresolved Staff Comments
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N/A
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Item 2.
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12 | |
Item 3.
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12 | |
Item 4.
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12 | |
PART II
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||
Item 5.
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13 | |
Item 6.
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13 | |
Item 7.
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14 | |
Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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N/A
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Item 8.
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17 | |
Item 9.
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31 | |
Item 9A.
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31 | |
Item 9B.
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32 | |
PART III
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Item 10.
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33 | |
Item 11.
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34 | |
Item 12.
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35 | |
Item 13.
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35 | |
Item 14.
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36 | |
PART IV
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Item 15.
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37 | |
38 |
·
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Building relationships - developing and retaining relationships will convey how we believe that our solutions will provide the ability to reach more consumers at a low cost. We believe that this will also result in referrals to other customers.
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·
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Content Marketing - using targeted and carefully selected content through ad networks, social media and video networks (e.g. YouTube, Website) to develop relationships with clients through “shares” (i.e. sharing our product information and successes through the above media outlets.)
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·
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Online advertising - specifically targeted at businesses, using professional networks, such as LinkedIn.
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·
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Networking - at major industry conferences and technology events, seeking partners in the industry through the distribution of both on and offline marketing material.
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·
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Website - increased SEO and banner promotion, in order to drive more traffic to our website.
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·
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Blogs – we intend to develop and support blogs which we expect will be constantly updated in order to keep content fresh.
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●
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have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;
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●
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comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);
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●
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submit certain executive compensation matters to shareholder advisory votes, such as “say-on-pay” and “say-on-frequency;” and
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●
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disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the Chief Executive’s compensation to median employee compensation.
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●
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Our ability to raise capital necessary to sustain our anticipated operations and implement our business plan,
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●
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Our ability to implement our business plan,
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●
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Our ability to generate sufficient cash to survive,
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●
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The degree and nature of our competition,
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●
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The lack of diversification of our business plan,
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●
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The general volatility of the capital markets and the establishment of a market for our shares, and
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●
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Disruption in the economic and financial conditions primarily from the impact of past terrorist attacks in the United States, threats of future attacks, police and military activities overseas and other disruptive worldwide political and economic events and environmental weather conditions.
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·
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have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;
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·
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comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);
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·
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submit certain executive compensation matters to shareholder advisory votes, such as “say-on-pay” and “say-on-frequency;” and
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·
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disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation.
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Page
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Financial Statements
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18
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19
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20
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21
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22
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23-30
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/s/ ZBS Group LLP
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Plainview, NY
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April 2, 2017
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255 Executive Drive, Suite 40
0
Plainview, New York 11803
Tel: (516) 394-3344 Fax: (516) 342-6273
www.zbscpas.com
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December 31,
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December 31,
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|||||||
ASSETS
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2016
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2015
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||||||
Current Assets
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||||||||
Cash
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$
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20,043
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$
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87,639
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||||
Account receivable – related party
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9,310
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-
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||||||
Total Current Assets
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$
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29,353
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$
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87,639
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||||
Intangible Assets
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||||||||
Software Rights, net
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7,000
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67,156
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||||||
Total Intangible Assets
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7,000
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67,156
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||||||
Total Assets
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$
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36,353
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$
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154,795
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||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY)
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||||||||
Current Liabilities
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||||||||
Accrued expenses
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$
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46,875
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$
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7,500
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||||
Due to related party
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11,829
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-
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||||||
Redeemable Common Stock
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13,156
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-
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||||||
Deferred revenue
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4,185
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-
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||||||
Other current liabilities
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2,375
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2,729
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||||||
Total Current Liabilities
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78,420
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10,229
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||||||
Long Term Liabilities
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||||||||
Loan payable – related party
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50,000
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50,000
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||||||
Redeemable common stock
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-
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13,156
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||||||
Total Long Term Liabilities
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50,000
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63,156
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||||||
Total Liabilities
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128,420
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73,385
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||||||
Commitments and Contingencies (note 6)
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||||||||
Stockholders’ Equity (Deficiency)
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||||||||
Preferred Stock - no par value, 5,000,000 shares authorized, no shares issued and outstanding
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- | - | ||||||
Common stock - no par value, 70,000,000 shares authorized, at December 31, 2016 and 2015
29,826,659 and 30,801,659 shares issues and outstanding at December 31, 2016 and 2015
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130,511
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119,011
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||||||
Accumulated deficit
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(222,578
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)
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(37,601
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)
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||||
Total Stockholders’ Equity (Deficiency)
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(92,067
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)
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81,410
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|||||
Total Liabilities and Stockholders’ Equity (Deficiency)
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$
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36,353
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$
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154,795
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For the Years Ended
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||||||||
December 31,
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||||||||
2016
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2015
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|||||||
Revenue – Related Party
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$
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5,125
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$
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90,042
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||||
Cost of services provided
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-
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36,565
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||||||
Gross Profit
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5,125
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53,477
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||||||
Operating Expenses
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||||||||
Legal and professional fee
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91,222
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57,688
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||||||
Officer Payroll and Benefits
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9,994
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24,302
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||||||
Other general and administrative expenses
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37,304
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16,970
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||||||
Total operating expenses
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138,520
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98,960
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||||||
Loss from operations
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(133,395
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)
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(45,483
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)
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||||
Other Income (Expenses)
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||||||||
Impairment loss
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(50,082
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)
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-
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|||||
Interest expense
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(1,500
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)
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(875
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)
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Total Other Income (Expenses), Net
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(51,582
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)
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(875
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)
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||||
Net Loss before tax
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(184,977
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)
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(46,358
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)
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Provision for income taxes
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-
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-
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||||||
Net Loss
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$
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(184,977
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)
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$
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(46,358
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)
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Earnings per share
- basic and fully diluted
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$
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(0.01
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)
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$
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(0.00
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)
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Weighted-average number of shares of common stock
- basic and fully diluted
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30,314,295
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20,792,169
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Common Stock
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||||||||||||||||
Accumulated
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||||||||||||||||
Shares
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Amount
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Deficit
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Total
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|||||||||||||
Balance, January 1, 2015
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200
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$
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500
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$
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8,757
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$
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9,257
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|||||||||
Issuance of common stock
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16,101,459
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118,511
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-
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118,511
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||||||||||||
Issuance of common stock for purchase of software rights
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14,700,000
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13,156
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-
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13,156
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||||||||||||
Redeemable Common Stock
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-
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(13,156
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)
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-
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(13,156
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)
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||||||||||
Net loss for the year
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-
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-
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(46,358
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)
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(46,358
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)
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||||||||||
Balance, December 31, 2015
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30,801,659
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$
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119,011
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$
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(37,601
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)
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$
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81,410
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||||||||
Issuance of common stock
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25,000
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12,500
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-
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12,500
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||||||||||||
Correction to shares outstanding
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(1,000,000
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)
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(1,000
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)
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-
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(1,000
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)
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|||||||||
Net loss for the year
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-
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-
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(184,977
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)
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(184,977
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)
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||||||||||
Balance, December 31, 2016
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29,826,659
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$
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130,511
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$
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(222,578
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)
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$
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(92,067
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)
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For the Years Ended
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||||||||
December 31,
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||||||||
2016
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2015
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|||||||
Operating Activities:
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||||||||
Net loss
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$
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(184,977
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)
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$
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(46,358
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)
|
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Adjustments to reconcile net loss from operations to net cash
used in operating activities:
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||||||||
Amortization expense
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10,074
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-
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||||||
Impairment loss
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50,082
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-
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||||||
Adjustment to officer compensation
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(1,000
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)
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||||||
Change in assets and liabilities:
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||||||||
Accounts receivable
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(9,310
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)
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17,565
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|||||
Accounts payable
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-
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(5,376
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)
|
|||||
Accrued expenses
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39,375
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7,500
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||||||
Deferred revenue
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4,185
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-
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||||||
Other current liabilities
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(354
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)
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1,925
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|||||
Net Cash Used In Operating Activities
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(91,925
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)
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(24,744
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)
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||||
Investing Activities:
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||||||||
Acquisition of computer software rights
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-
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(54,000
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)
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|||||
Net Cash Used In Investing Activities
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-
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(54,000
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)
|
|||||
Financing Activities:
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||||||||
Proceeds from sale of common stock
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12,500
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118,511
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||||||
Proceeds from related party loans
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-
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50,000
|
||||||
Advance from related party
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11,829
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-
|
||||||
Bank overdraft
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-
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(2,128
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)
|
|||||
Net Cash Provided By financing activities
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24,329
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166,383
|
||||||
Net Increase (Decrease) in Cash
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(67,596
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)
|
87,639
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|||||
Cash, Beginning Of Year
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87,639
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-
|
||||||
Cash, End Of Year
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$
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20,043
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$
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87,639
|
||||
Supplemental Disclosure of Cash Flow Information:
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||||||||
Cash paid during the year:
|
||||||||
Interest paid
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$
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-
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$
|
-
|
||||
Income taxes paid
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$
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-
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$
|
-
|
||||
Supplemental Disclosure of Non-cash Investing and Financing Activities:
|
||||||||
Shares issued for acquisition of software costs
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$
|
-
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$
|
13,156
|
• |
Level one — Quoted market prices in active markets for identical assets or liabilities;
|
• |
Level two — Inputs other than level one inputs that are either directly or indirectly observable; and
|
• |
Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use.
|
December 31,
2016
|
December 31,
2015
|
|||||||
Software rights
|
$
|
67,156
|
$
|
67,156
|
||||
Less: Accumulated amortization
|
(10,074
|
)
|
-
|
|||||
Impairment loss
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(50,082
|
)
|
||||||
$
|
7,000
|
$
|
67,156
|
Total
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Total
|
Deferred Tax Asset
|
||||||||||||||
2016 | 2015 | 2016 |
2015
|
|||||||||||||
Net operating loss carry-forward
|
231,000
|
46,000
|
88,000
|
18,000
|
||||||||||||
Less: valuation allowance
|
(231,000
|
)
|
(46,000
|
)
|
(88,000
|
)
|
(18,000
|
)
|
||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
December 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
Tax benefit at U.S. federal statutory rate
|
$
|
(70,000
|
)
|
$
|
(18,000
|
)
|
||
State income taxes/(benefit) before valuation allowance, net of federal benefit
|
-
|
-
|
||||||
Increase in valuation allowance
|
70,000
|
18,000
|
||||||
Total provision for income tax benefit
|
$
|
-
|
$
|
-
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Name
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Age
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Position
|
||
Leonard Rosenfield
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60
|
President and Director
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||
Steven Edelman
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55
|
Director
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Name and Principal Position
|
Fiscal
Year
|
Salary
Paid
($)
|
Bonus
($)
|
Stock Awards
($)
|
Option
Awards
($)
|
All Other
Compensation
($)
|
Total
($)
|
|||||||||||||||||||
Leonard Rosenfield
|
2016
|
9,994
|
9,994
|
|||||||||||||||||||||||
2015
|
24,302
|
0
|
0
|
0
|
0
|
24,302
|
||||||||||||||||||||
2014
|
0
|
0
|
0
|
0
|
0
|
0
|
Name and Address of Beneficial Owners
|
Number of Shares Beneficially Owned
|
Percent of Class
|
||||||||
Abraham Rosenblum (Officer, Director)
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(1)
|
20,316,666
|
68.1
|
%
|
||||||
Robert Klein (Director)
|
2,200,000
|
7.4
|
%
|
|||||||
Rosenweiss Capital LLC
5702 21
st
Avenue
Brooklyn, NY 11204
|
(2)
|
3,000,000
|
10.1
|
%
|
||||||
All officers and directors as a whole (2 persons)
|
(3)
|
22,516,666
|
75.5
|
%
|
(1)
|
Excludes 3,000,000 shares owned by Rosenweiss Capital LLC of which Mr. Rosenblum is a manager and 50% owner. Including those shares would give him beneficial ownership of 78.2%
|
(2)
|
Owned 50% by Abraham Rosenblum. Mr. Rosenblum, manager of Rosenweiss, has sole voting and dispositive power over the shares beneficially held by Rosenweiss.
|
(3)
|
Excludes 3,000,000 shares owned by Rosenweiss Capital LLC of which Mr. Rosenblum is a manager and 50% owner. Including those shares would give the group beneficial ownership of 85.5%
|
EXHIBIT NUMBER
|
|
3.1
|
Certificate of Incorporation (incorporated by reference to exhibit 3.1 of the Company’s registration statement on Form S-1 filed with the Securities and Exchange Commission on January 19, 2016).
|
3.1.1
|
Amendment to Certificate of Incorporation (incorporated by reference to exhibit 3.1.1 of the Company’s registration statement on Form S-1 filed with the Securities and Exchange Commission on January 19, 2016).
|
3.2
|
|
10.1
|
Software Purchase Agreement dated April 27, 2015 between the Company, Green Tree Software LLC, Steven Edelman and Rosenweiss Capital LLC (incorporated by reference to exhibit 10.1 of the Company’s registration statement on Form S-1 filed with the Securities and Exchange Commission on March 28, 2016).
|
10.2
|
Promissory Note dated May 29, 2015 in favor of Rosenweiss Capital LLC (incorporated by reference to exhibit 10.2 of the Company’s registration statement on Form S-11 filed with the Securities and Exchange Commission on January 19, 2016).
|
10.3
|
Letter re Licensing Rights from Green Tree Software LLC to the Company dated January 11, 2016 (incorporated by reference to exhibit 10.3 of the Company’s registration Statement on Form S-1 filed with the Securities and Exchange Commission on January 19, 2016).
|
10.4
|
Software Sale Agreement with Green Tree Software LLC dated as of February 6, 2017
.(incorporated by reference to exhibit 10.1 of the Company’s current report on Form 8-K filed with the Securities and Exchange Commission on March 6, 2017).
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
Name
|
Title
|
Date
|
||
/s/ Abraham Rosenblum
|
President and Director
|
March 31, 2017
|
||
Abraham Rosenblum
|
(Chief Executive Officer and Principal Financial Officer)
|
|||
/s/ Robert Klein
|
Director
|
March 31, 2017
|
||
Robert Klein
|
||||
(a)
|
The submission to shareholders of any action as to which shareholders’ authorization is required by statute, the Certificate of Incorporation or by these By-Laws;
|
(b)
|
The filling of vacancies in the Board of Directors or in any committee thereof;
|
(c)
|
The fixing of compensation of the Directors for serving on the Board or on any committee thereof;
|
(d)
|
The amendment or repeal of these By-Laws or the adoption of new By-Laws; and
|
(e)
|
The amendment or repeal of any resolution of the Board of Directors which by its terms shall not be so amendable or repealable.
|