Nevada
|
2591
|
26-2840468
|
||
(State or Other Jurisdiction of
|
(Primary Standard Industrial
|
(IRS Employer
|
||
Incorporation or Organization)
|
Classification Number)
|
Identification Number)
|
Large accelerated filer
|
o |
Accelerated filer
|
o |
Non-accelerated filer
|
o |
Smaller reporting company
|
x |
(Do not check if a smaller reporting company)
|
|
Proposed Maximum
|
Proposed Maximum
|
||||||||||||||
|
Amount to Be
|
Offering Price
|
Aggregate
|
Amount of
|
||||||||||||
Title of Each Class
of Securities
to be Registered
|
Registered
(1)
|
per Share
|
Offering Price
|
Registration Fee
|
||||||||||||
Common Stock, par value $0.001 per share
|
900,080
|
(2)
|
$
|
0.125
|
(2)
|
$
|
112,510
|
$
|
12.89
|
|||||||
Common Stock, par value $0.001 per share
|
1,599,920
|
(3)
|
$
|
0.125
|
(4)
|
$
|
199,990
|
22.91
|
||||||||
TOTAL
|
2,500,000
|
$
|
0.125
|
$
|
312,500
|
35.80
|
·
|
has not received enough proceeds from the offering to begin operations; and
|
·
|
has no market for its shares.
|
Page
|
||||
Prospectus Summary
|
4 | |||
Risk Factors
|
6 | |||
Risk Factors Relating to Our Company
|
6 | |||
Risk Factors Relating to Our Common Stock
|
9 | |||
Use of Proceeds
|
11 | |||
Determination of Offering Price
|
12 | |||
Selling Security Holders
|
12 | |||
Plan of Distribution
|
13 | |||
Description of Securities
|
13 | |||
Description of Business
|
15 | |||
Experts
|
16 | |||
Interests of Named Experts and Counsel
|
16 | |||
Description of Business
|
16 | |||
Our Executive Offices
|
25 | |||
Legal Proceedings
|
25 | |||
Market for Common Equity and Related Stockholder Matters
|
26 | |||
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
27 | |||
Directors, Executive Officers, Promoters and Control Persons
|
29 | |||
Executive Compensation
|
31 | |||
Security Ownership of Certain Beneficial Owners and Management
|
31 | |||
Certain Relationships and Related Transactions
|
32 | |||
Disclosure of Commission Position on Indemnification for Securities Act Liabilities
|
32 | |||
Where You Can Find More Information
|
32 | |||
Changes In and Disagreements with Accountants on Accounting and Financial Disclosure
|
32 | |||
Financial Statements
|
F-1 |
April 30, 2011 ($)
|
||||
Financial Summary
|
||||
Cash and Deposits
|
437
|
|||
Total Assets
|
26,869
|
|||
Total Liabilities
|
53,089
|
|||
Total Stockholder’s Equity (Deficit)
|
(26,220
|
)
|
Accumulated From
May 22, 2008
(Inception) to
April 30, 2011 ($)
|
||||
Statement of Operations
|
||||
Total Expenses
|
26,485
|
|||
Net Loss for the Period
|
26,485
|
|||
Net Loss per Share
|
0.01
|
Financial Summary (Unaudited)
|
July 31, 2011 ($)
|
|||
Cash and Deposits
|
6,003
|
|||
Total Assets
|
32,435
|
|||
Total Liabilities
|
73,089
|
|||
Total Stockholder’s Equity (Deficit)
|
(40,654)
|
·
|
has not received enough proceeds from the offering to continue operations beyond the initial start-up phase; and
|
·
|
has no market for its shares of common stock.
|
·
|
a reduction in sales or delay in market acceptance of our services;
|
·
|
sales credits or refunds to our customers;
|
·
|
loss of existing customers and difficulty in attracting new customers;
|
·
|
diversion of development resources;
|
·
|
harm to our reputation; and
|
·
|
increased warranty and insurance costs.
|
·
|
elect or defeat the election of our directors;
|
·
|
amend or prevent amendment of our articles of incorporation or bylaws;
|
·
|
effect or prevent a merger, sale of assets or other corporate transaction; and
|
·
|
affect the outcome of any other matter submitted to the stockholders for vote.
|
If 25% of
Shares
Sold
|
If 50% of
Shares
Sold
|
If 75% of
Shares
Sold
|
If 100% of
Shares
Sold
|
|||||||||||||
GROSS PROCEEDS FROM THIS OFFERING
|
$
|
28,125
|
$
|
56,255
|
$
|
84383
|
$
|
112,510
|
||||||||
Legal
|
4,000
|
5,000
|
5,000
|
5,000
|
||||||||||||
Accounting and auditing
|
10,500
|
14,000
|
14,000
|
14,000
|
||||||||||||
Printing
|
500
|
500
|
500
|
500
|
||||||||||||
TOTAL
|
$
|
15,000
|
$
|
19,500
|
$
|
19,500
|
$
|
19,500
|
||||||||
GENERAL BUSINESS DEVELOPMENT
|
||||||||||||||||
Travel expenses
|
$
|
3,000
|
$
|
6,000
|
$
|
7,500
|
$
|
9,000
|
||||||||
TOTAL
|
$
|
3,000
|
$
|
6,000
|
$
|
7,500
|
$
|
9,000
|
||||||||
ADMINISTRATION EXPENSES
|
||||||||||||||||
Rent
|
7,200
|
7,200
|
7,200
|
7,200
|
||||||||||||
Management salaries
|
$
|
0
|
$
|
6,000
|
$
|
12,000
|
$
|
24,000
|
||||||||
Consultant fees
|
$
|
0
|
$
|
3,000
|
$
|
3,000
|
$
|
9,000
|
||||||||
Office supplies, Stationery, Telephone
|
$
|
1,000
|
$
|
1,000
|
$
|
1,000
|
$
|
1,000
|
||||||||
TOTAL
|
$
|
8,200
|
$
|
17,200
|
$
|
23,200
|
$
|
41,200
|
PRODUCTION AND SALES
|
||||||||||||||||
Inventory
|
$
|
-
|
$
|
3,555
|
$
|
10,000
|
$
|
15,000
|
||||||||
Sales and Marketing Costs
|
$
|
1,928
|
$
|
10,000
|
$
|
24,183
|
$
|
27,810
|
||||||||
TOTAL
|
$
|
1,928
|
$
|
13,555
|
$
|
34,183
|
$
|
42,810
|
||||||||
TOTALS
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
Name of
Selling Shareholder
|
Shares
Owned
Before
the Offering
|
Total
Number of
Shares to be
Offered for
the
Security
Holder’s
Account
|
Total Shares
Owned After
the
Offering is
Complete
|
Percentage of
Shares owned
After
the Offering is
Complete
|
||||||||||||
Brian Keasberry (1)
|
1,275,000
|
0
|
1,275,000
|
31.0%
|
||||||||||||
Melissa Carroll
|
1,225,000
|
0
|
1,225,000
|
29.8%
|
||||||||||||
Blue Diamond Equities (2)
|
199,920
|
199,920
|
0
|
0
|
||||||||||||
0832322 BC Ltd. (3)
|
200,000
|
200,000
|
0
|
0
|
||||||||||||
Elco Securities (4)
|
200,000
|
200,000
|
0
|
0
|
||||||||||||
Blackstone Energy Solutions Inc. (5)
|
200,000
|
200,000
|
0
|
0
|
||||||||||||
Justin Mongiardo
|
200,000
|
200,000
|
0
|
0
|
||||||||||||
Sungate Capital (6)
|
200,000
|
200,000
|
0
|
0
|
||||||||||||
Capilano Capital (7)
|
200,000
|
200,000
|
0
|
0
|
||||||||||||
Christina Mongiardo
|
200,000
|
200,000
|
||||||||||||||
Total
|
4,099,920
|
1,599,920
|
2,500,000
|
0
|
(1)
|
Sole officer and director of BRK, Inc.
|
(2)
|
|
(3)
|
Voting or investment power for 0832322 BC Ltd. is held by Paul Oteman.
|
(4)
|
Voting or investment power for Elco Securities is held by Lawrence Collie.
|
(5)
|
Voting or investment power for Blackstone Energy Solutions Inc. is held by Paul Donion.
|
(6)
|
Voting or investment power for Sungate Capital is held by
Geva Rémy.
|
(7)
|
Voting or investment power for Capilano Capital Inc. is held by Steven Drayton.
|
Existing Stockholders if all of the Shares are Sold
|
||||
Price per share
|
$
|
.005
|
||
Net tangible book value per share before offering
|
$
|
0
|
|
|
Potential gain to existing shareholders
|
$
|
514,490
|
||
Net tangible book value per share after offering
|
$
|
.010
|
||
Increase to present stockholders in net tangible book value per share after offering
|
$
|
.016
|
||
Capital contributions
|
$
|
0
|
||
Number of shares outstanding before the offering
|
4,099,920
|
|||
Number of shares after offering held by existing stockholders
|
900,080
|
|||
Percentage of ownership after offering
|
81.0
|
%
|
Purchasers of Shares in this Offering if all Shares Sold
|
||||
Price per share
|
$
|
.125
|
||
Dilution per share
|
$
|
.10
|
||
Capital contributions
|
$
|
112,510
|
||
Percentage of capital contributions
|
100
|
%
|
||
Number of shares after offering held by public investors
|
900,080
|
|||
Percentage of ownership after offering
|
19.0
|
%
|
Purchasers of Shares in this Offering if 75% of Shares Sold
|
||||
Price per share
|
$
|
.125
|
||
Dilution per share
|
$
|
.11
|
||
Capital contributions
|
$
|
84,383
|
||
Percentage of capital contributions
|
100
|
%
|
||
Number of shares after offering held by public investors
|
675,060
|
|||
Percentage of ownership after offering
|
14.1
|
%
|
Purchasers of Shares in this Offering if 50% of Shares Sold
|
||||
Price per share
|
$
|
.125
|
||
Dilution per share
|
$
|
.11
|
||
Capital contributions
|
$
|
56,255
|
||
Percentage of capital contributions
|
100
|
%
|
||
Number of shares after offering held by public investors
|
450,040
|
|||
Percentage of ownership after offering
|
9.8
|
%
|
Purchasers of Shares in this Offering if 25% of Shares Sold
|
||||
Price per share
|
$
|
.125
|
||
Dilution per share
|
$
|
.11
|
||
Capital contributions
|
$
|
28,128
|
||
Percentage of capital contributions
|
100
|
%
|
||
Number of shares after offering held by public investors
|
225,020
|
|||
Percentage of ownership after offering
|
5.2
|
%
|
·
|
privately raised funds;
|
·
|
rented start-up operating space;
|
·
|
designed the first purpose built machine to manufacture blind repair kits; and
|
·
|
hired a machinist to build the machine – now complete.
|
Activity
|
Amount
|
|||
Web/graphic design / hosting
|
$ | 600 | ||
Marketing & Company collateral
|
$ | 5,000 | ||
Advertising
|
$ | 3,000 | ||
Office Lease
|
$ | 10,000 | ||
Office Equipment & Supplies
|
$ | 2,500 | ||
Offices expenses
|
$ | 500 | ||
Telephone
|
$ | 5,000 | ||
Miscellaneous
|
$ | 2,000 | ||
Legal and Accounting
|
$ | 15,000 | ||
Transfer Agent
|
$ | 2000 | ||
TOTAL
|
$ | 45,600.00 |
Name
|
Age
|
Positions
|
||
Brian Keasberry
|
48 |
President, Treasurer, Secretary and sole Director
|
Non-Equity
|
||||||||||||||||||||||||||||||||||
Incentive
|
Nonqualified
|
|||||||||||||||||||||||||||||||||
Name and
|
Stock
|
Option
|
Plan
|
Deferred
|
All Other
|
|||||||||||||||||||||||||||||
Principal
Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Awards
($)
|
Awards
($)
|
Compensation($)
|
Compensation($)
|
Compensation($)
|
Total
($)
|
|||||||||||||||||||||||||
Brian Keasberry
(1)
|
2011
|
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
2010
|
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Fees
|
Non-Equity
|
Nonqualified
|
||||||||||||||||||||||||||
Earned
|
Incentive
|
Deferred
|
||||||||||||||||||||||||||
Paid in
|
Stock
|
Option
|
Plan
|
Compensation
|
All Other
|
|||||||||||||||||||||||
Name
|
Cash($)
|
Awards($)
|
Awards($)
|
Compensation($)
|
Earnings($)
|
Compensation($)
|
Total($)
|
|||||||||||||||||||||
Brian Keasberry
|
0-
|
0-
|
0-
|
0-
|
0-
|
0-
|
0-
|
|
Number of Shares
|
|||||||||
Title of Class
|
Name and Address
of Beneficial Owner
(2)
|
Owned Beneficially
(3)
|
Percent of
Class Owned
|
|||||||
Common Stock:
|
Brian Keasberry, President, Treasurer, Corporate Secretary and Director (1)
|
1,275,000
|
31.09
|
%
|
||||||
Common Stock:
|
Mel Carroll, VP Marketing (1)
|
1,424,920
|
34.75
|
%
|
||||||
All executive officers and directors as a group
(one person)
|
1,275,000
|
31.09
|
%
|
·
|
ordinary brokerage transactions and transactions in which the broker solicits purchasers;
|
·
|
privately negotiated transactions;
|
·
|
market sales (both long and short to the extent permitted under the federal securities laws);
|
·
|
at the market to or through market makers or into an existing market for the shares;
|
·
|
through transactions in options, swaps or other derivatives (whether exchange listed or otherwise); and
|
·
|
a combination of any of the aforementioned methods of sale.
|
1. | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | F-2 | |||||
2. | BALANCE SHEETS | F-3 | |||||
3. | STATEMENTS OF OPERATIONS | F-4 | |||||
4. | STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT) | F-5 | |||||
5. | STATEMENTS OF CASH FLOWS | F-6 | |||||
6. | NOTES TO FINANCIAL STATEMENTS | F-7 |
July 31,
|
April 30,
|
|||||||||||
2011
|
2011
|
2010
|
||||||||||
Unaudited
|
||||||||||||
ASSETS
|
||||||||||||
Current assets:
|
||||||||||||
Cash
|
$ | 6,003 | $ | 437 | $ | 24 | ||||||
Prepaid expense
|
6,242 | 6,242 | -- | |||||||||
Total current assets
|
12,245 | 6,679 | 24 | |||||||||
Fixed assets
|
||||||||||||
Construction in progress
|
20,190 | 20,190 | -- | |||||||||
Total assets
|
32,435 | 26,869 | 24 | |||||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
||||||||||||
Current liabilities:
|
||||||||||||
Convertible notes payable – current portion
|
8,814 | 3,814 | 179 | |||||||||
Notes payable-related party
|
-- | -- | 1,220 | |||||||||
Total current liabilities
|
8,814 | 3,814 | 1,399 | |||||||||
Long term liabilities
|
||||||||||||
Convertible notes payable – long term
|
64,275 | 49,275 | -- | |||||||||
Total long term liabilities
|
64,275 | 49,275 | -- | |||||||||
Total liabilities
|
73,089 | 53,089 | 1,399 | |||||||||
Stockholders’ deficit:
|
||||||||||||
Preferred stock, 0.001 par value, 1,000,000 authorized, none outstanding
|
-- | -- | -- | |||||||||
Common stock, 0.001 par value 100,000,000 authorized 2,500,000 issued and outstanding
|
2,500 | 2,500 | 2,500 | |||||||||
Additional paid in capital
|
(2,500 | ) | (2,500 | ) | (2,500 | ) | ||||||
Accumulated deficit
|
(40,654 | ) | (26,220 | ) | (1,375 | ) | ||||||
Total stockholders’ deficit
|
(40,654 | ) | (26,220 | ) | (1,375 | ) | ||||||
Total liabilities and stockholders’ equity(deficit)
|
$ | 32,435 | $ | 26,869 | $ | 24 |
Quarter Ended July 31,
|
Year Ended April 30,
|
From Inception May 22, 2008 through July 31,
|
||||||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
2011
|
|||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||
Operating expenses:
|
||||||||||||||||||||
General and administrative expense
|
14,434 | 4,752 | 24,845 | 1,294 | 40,654 | |||||||||||||||
Loss from operations
|
(14,434 | ) | (4,752 | ) | (24,845 | ) | (1,294 | ) | (40,654 | ) | ||||||||||
Net loss
|
$ | (14,434 | ) | $ | (4,752 | ) | $ | (24,845 | ) | $ | (1,294 | ) | (40,654 | ) | ||||||
Net loss per share, basic and diluted
|
$ | (0.01 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.00 | ) | ||||||||
Weighted average number of shares outstanding
|
2,500,000 | 2,500,000 | 2,500,000 | 2,500,000 |
Total
|
||||||||||||||||||||
Additional
|
Stockholders’
|
|||||||||||||||||||
Common Stock
|
Paid-In
|
Accumulated
|
Equity
|
|||||||||||||||||
Shares
|
Amount
|
Capital
|
Deficit
|
(Deficit)
|
||||||||||||||||
Balances at May 22, 2008
|
$ | -- | $ | -- | $ | -- | $ | -- | $ | -- | ||||||||||
Founder shares issued
|
2,500,000 | 2,500 | (2,500 | ) | -- | -- | ||||||||||||||
Net loss
|
-- | -- | -- | (81 | ) | (81 | ) | |||||||||||||
Balances at April 30, 2009
|
2,500,000 | 2,500 | (2,500 | ) | (81 | ) | (81 | ) | ||||||||||||
Net loss
|
-- | -- | -- | (1,294 | ) | (1,294 | ) | |||||||||||||
Balance at April 30, 2010
|
2,500,000 | 2,500 | (2,500 | ) | (1,375 | ) | (1,375 | ) | ||||||||||||
Net loss
|
-- | -- | -- | (24,845 | ) | (24,845 | ) | |||||||||||||
Balances at April 30, 2011
|
2,500,000 | 2,500 | (2,500 | ) | (26,220 | ) | (26,220 | ) | ||||||||||||
Net loss
|
-- | -- | -- | (14,434 | ) | (14,434 | ) | |||||||||||||
Balances at July 31, 2011 (unaudited)
|
2,500,000 | $ | 2,500 | $ | (2,500 | ) | $ | (40,654 | ) | $ | (40,654 | ) |
Quarter Ended July 31,
|
Year Ended April 30,
|
From inception (May 22, 2008) through
July 31,
|
||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||
Net loss
|
$ | (14,434 | ) | $ | (4,752 | ) | $ | ( 24,845 | ) | $ | (1,294 | ) | $ | (40,654 | ) | |||||
Adjustments to reconcile net loss to net cash
|
||||||||||||||||||||
provided by (used in) operating activities:
|
||||||||||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||||||
Prepaid expense
|
-- | (6,242 | ) | -- | (6,242 | ) | ||||||||||||||
Net cash provided by (used in) operating activities
|
(14,434 | ) | (4,752 | ) | (31,087 | ) | (1,294 | ) | (46,896 | ) | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Payment for construction in progress
|
-- | -- | (20,190 | ) | -- | (20,190 | ) | |||||||||||||
Net cash used in investing activities
|
(20,190 | ) | -- | (20,190 | ) | |||||||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||
Net borrowings on notes payable
|
20,000 | 5,000 | 52,190 | 179 | 73,089 | |||||||||||||||
Net borrowings (payment) on notes payable from related party
|
25 | (1,220 | ) | 120 | -- | |||||||||||||||
Net cash provided by (used in) financing activities
|
20,000 | 5,025 | 51,690 | 299 | 73,089 | |||||||||||||||
Net increase (decrease) in cash
|
5,556 | 273 | 413 | (995 | ) | 6,003 | ||||||||||||||
Cash – beginning of year
|
437 | 24 | 24 | 1,019 | -- | |||||||||||||||
Cash – end of year
|
$ | 6,003 | $ | 297 | $ | 437 | $ | 24 | 6,003 | |||||||||||
SUPPLEMENT DISCLOSURES:
|
||||||||||||||||||||
Interest paid
|
$ | -- | $ | -- | $ | -- | $ | -- | $ | -- | ||||||||||
Income taxes paid
|
-- | -- | -- | -- | -- |
2011
|
2010
|
|||||||
Net operating loss
|
$ | 26,220 | $ | 1,375 | ||||
Total deferred tax asset
|
9,177 | 481 | ||||||
Valuation allowance
|
(9,177 | ) | (481 | ) | ||||
Net deferred tax asset
|
$ | - | $ | - |
Amount (1)
|
||||
Item
|
(US$)
|
|||
SEC Registration Fee
|
$ |
36
|
||
Transfer Agent Fees
|
$ |
0
|
||
Legal Fees
|
$ |
10,000
|
||
Accounting Fees
|
$ |
5,000
|
||
Printing Costs
|
1,000
|
|||
TOTAL
|
$
|
16,036
|
·
|
indemnify officers and directors against certain liabilities that may arise because of their status as officers or directors;
|
·
|
advance expenses, as incurred, to officers and directors in connection with a legal proceeding, subject to limited exceptions; or
|
Exhibit
|
Description
|
|
3.1.1
|
Articles of Incorporation of the Registrant
|
|
3.1.2
|
Certificate of Amendment to Articles of Incorporation of the Registrant
|
|
3.2
|
Bylaws of the Registrant
|
|
5.1
|
Opinion of Law Offices of Thomas E. Puzzo, PLLC, regarding the legality of the securities being registered
|
|
23.1
|
Consent of Law Offices of Thomas E. Puzzo, PLLC (included in Exhibit 5.1)
|
|
23.2
|
Consent of Malone Bailey, LLP
|
Signature
|
Title
|
Date
|
||
/s/ Brian Keasberry
|
President, Secretary, Treasurer and Director
(Principal Executive Officer,
Principal Financial Officer and Principal Accounting Officer)
|
November 8, 2011
|
||
Brian Keasberry
|
Exhibit
|
Description
|
|
3.1.1
|
Articles of Incorporation of the Registrant
|
|
3.1.2
|
Certificate of Amendment to Articles of Incorporation of the Registrant
|
|
3.2
|
Bylaws of the Registrant
|
|
5.1
|
Opinion of Law Offices of Thomas E. Puzzo, PLLC, regarding the legality of the securities being registered
|
|
23.1
|
Consent of Law Offices of Thomas E. Puzzo, PLLC (included in Exhibit 5.1)
|
|
23.2
|
Consent of Malone Bailey, LLP
|
Re:
|
BRK, Inc. a Nevada corporation;
Registration Statement on Form S-1, as amended
|
Very truly yours, | |
/s/ Law Offices of Thomas E. Puzzo, PLLC |