UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM S-1

 

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

 

FWF HOLDINGS INC.

(Exact name of registrant as specified in its charter)

 

NEVADA

 

2033

 

47-1405387

(State or other jurisdiction

of incorporation or organization)

 

(Primary Standard Industrial

Classification Code Number)

 

(I.R.S. Employer

Identification No.)

 

Stiftstr 32, 20099 Hamburg, Germany

Telephone: (800) 873-0694

(Address, including zip code, and telephone number,

including area code, of registrant’s principal executive offices)

 

State Agent & Transfer Syndicate, Inc.

112 North Curry Street, Carson City, Nevada, 89703-4934

Telephone: (775) 882-1013

(Name, address, including zip code, and telephone number,

including area code, of agent for service)

 

The proposed date of sale will be as soon as practical

after this Registration Statement becomes effective.

(Approximate date of commencement of proposed sale to the public)

 

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act, check the following box: x

 

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨

 

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registrations statement number of the earlier effective registration statement for the same offering. ¨

 

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

¨

Smaller reporting company

x

(Do not check if a smaller reporting company)

 

 

 

 

 

 

 

 

CALCULATION OF REGISTRATION FEE

 

Title of Each Class of Securities to be Registered

 

Amount to be
Registered

   

Proposed Maximum
Offering Price Per Unit

   

Proposed Maximum
Aggregate Offering Price

   

Amount of
Registration Fee

 

Common stock, par value $0.001 per share

 

5,000,000

   

$

0.03

   

$

150,000

   

$

19.32

 

Total

   

5,000,000

   

$

0.03

   

$

150,000

   

$

19.32

 

 

(1)  Estimated in accordance with Rule 457(c) of the Securities Act solely for the purpose of computing the amount of the registration fee.

 

The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, or until this registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

 

 
2

 

The following table of contents has been designed to help you find important information contained in this prospectus. We encourage you to read the entire prospectus.

 

TABLE OF CONTENTS

 

Item

  Page No.  

 

   

SUMMARY

 

8

 

RISK FACTORS

   

9

 

FORWARD-LOOKING STATEMENTS

   

16

 

USE OF PROCEEDS

   

16

 

DETERMINATION OF OFFERING PRICE

   

17

 

DILUTION

   

17

 

PLAN OF DISTRIBUTION

   

19

 

DESCRIPTION OF SECURITIES TO BE REGISTERED

   

20

 

NEVADA ANTI-TAKEOVER LAWS

   

20

 

RULE 144 AND REGISTRATION AGREEMENTS

   

21

 

INTERESTS OF NAMED EXPERTS AND COUNSEL

   

21

 

DESCRIPTION OF BUSINESS

   

21

 

LEGAL PROCEEDINGS

   

25

 

FINANCIAL STATEMENTS

   

26

 

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

   

37

 

CHANGES IN AND DISAGREEENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

   

38

 

DIRECTORS, EXECUTIVE OFFICERS, PROMOTER AND CONTROL PERSONS

   

39

 

EXECUTIVE COMPENSATION

   

40

 

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

   

42

 

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

   

43

 

DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES

   

43

 

 

Part II – INFORMATION NOT REQUIRED IN THE PROSPECTUS

 

OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION

  44  

INDEMNIFICATION OF DIRECTORS AND OFFICERS

   

44

 

RECENT SALES OF UNREGISTERED SECURITIES

   

44

 

EHIBITS

   

45

 

UNDERTAKINGS

   

46

 

SIGNATURES

   

49

 

 

 
3

 

DEALER PROSPECTUS DELIVERY OBLIGATION

 

Until _________, 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.

 

 
4

 

SUBJECT TO COMPLETION

 

The information in this prospectus is not complete and may be changed. The securities may not be sold until the registration statement of which this prospectus forms a part is declared effective by the SEC. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

 

PROSPECTUS

 

FWF HOLDINGS INC.

a Nevada corporation

 

5,000,000 Shares of Common Stock

 

This is the initial offering of common stock of FWF Holdings Inc. and no public market currently exists for the securities being offered. We are offering for sale a total of 5,000,000 shares of common stock at a fixed price of $0.03 per share. There is no minimum number of shares that must be sold by us for the offering to proceed, and we will retain the proceeds from the sale of any of the offered shares. The offering is being conducted on a self-underwritten, best efforts basis, which means our President and Chief Executive Officer, Nami Shams, will attempt to sell the shares. This prospectus will permit our President and Chief Executive Officer to sell the shares directly to the public, with no commission or other remuneration payable to him for any shares he may sell. Mr. Shams will sell the shares and intends to offer them to friends, family members and business acquaintances. In offering the securities on our behalf, he will rely on the safe harbor from broker-dealer registration set out in Rule 314-1 under the Securities and Exchange Act of 1934. The shares will be offered at a fixed price of $0.03 per share for a period of one hundred and eighty (180) days from the effective date of this prospectus.

 

FWF Holdings Inc. is a development stage company and currently has no operations. The Company is an emerging growth company, but the company has irrevocably opted out of the extended transition period for complying with new or revised accounting standards pursuant to section 107(B) of the Jump Start Business Act of 2012. The purchase of the securities offered by this prospectus involves a high degree of risk. You should invest in our shares of common stock only if you can afford to lose your entire investment. Our independent registered public accountant has issued an audit opinion on FWF Holdings Inc. which includes a statement expressing substantial doubt as to our ability to continue as a going concern. You should carefully read and consider the section of this prospectus entitled “Risk Factors” beginning on page 9 before buying any shares of our common stock.

 

An emerging growth company could be capable of taking advantage of several exceptions, such as:

 

Say-On-Pay. Section 14A(e) of the Exchange Act has been amended to exempt emerging growth companies from the “say-on-pay”, “say-on-pay frequency” and “say-on-golden parachute” requirements that were enacted as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. After cessation of emerging growth company status, if an issuer was an emerging growth company for less than two years after its initial public offering date, it must hold a say-on-pay vote no later than the end of the three-year period beginning on the date it is no longer an emerging growth company. Any other company that has ceased to be an emerging growth company must hold a say-on-pay vote no later than the end of the one-year period beginning on the date it is no longer an emerging growth company. In addition, following cessation of emerging growth company status, a company will become subject to the say-on-pay-frequency and say-on-golden parachute provisions of Rule 14a-21 promulgated under the Exchange Act.

 

Pay-versus-Performance; Section 14(i) of the Exchange Act has been amended to exempt emerging growth companies from the pay versus-performance requirements that were enacted as part of the Dodd-Frank Act. The SEC has not yet finalized the regulations implementing the pay-versus-performance requirements of the Dodd-Frank Act.

 

CEO Pay Ratio Disclosure; Section 953(b)(1) of the Dodd-Frank Act has been amended to exempt emerging growth companies from the requirement to compare CEO compensation to the median of the annual total compensation of all employees of the issuer other than the CEO. The SEC has not yet finalized the regulations implementing the pay ratio disclosure requirements of the Dodd-Frank Act.

 

 
5

 

Compensation Disclosures; Emerging growth companies may comply with the less burdensome executive compensation disclosure requirements applicable to any issuer with a market value of less than $75 million of outstanding voting and nonvoting common equity held by non-affiliates. Currently these provisions are set forth in Item 402(l) through (r) of Regulation S-K as applicable to smaller reporting companies.

 

Financial Statement Requirements; Section 7 of the Securities Act has been revised to require that two years, rather than three years, of audited financial statements be included in any registration statement filed with the SEC by an emerging growth company. Similarly, an emerging growth company need only present its Management’s Discussion and Analysis of Financial Condition and Results of Operations for each period for which financial statements are presented rather than the periods required by Item 303 of Regulation S-K. Furthermore, an emerging growth company need not present selected financial data for any period prior to the earliest audited period presented in connection with its initial public offering. In addition, an emerging growth company need not comply with any new or revised financial accounting standard until such date that a company that is not an “issuer”, as defined in Section 2 of the Sarbanes Oxley Act of 2002 (generally, a nonpublic company), is required to comply with such new or revised accounting standard. Similar changes were also made to Section 13(a) of the Exchange Act.

 

Internal Control over Financial Reporting; Section 404(b) of Sarbanes-Oxley has been amended to exempt emerging growth companies from the requirement to obtain an attestation report on internal control over financial reporting from the issuer’s registered public accounting firm. Currently, this requirement is only applicable to “accelerated filers” and “large accelerated filers” as defined in Rule 12b-2 promulgated under the Exchange Act.

 

PCAOB Rules; The Public Company Accounting Oversight Board must exclude emerging growth companies from any rules it might adopt addressing mandatory audit firm rotation or requiring a supplement to the auditor’s report in which the auditor would provide additional information about the audit and the financial statements of the issuer (a so-called auditor discussion and analysis). No PCAOB rules adopted after the date of enactment of the JOBS Act will apply to an emerging growth company unless the SEC determines that the application of such rules is necessary or appropriate in the public interest, after considering the protection of investors and whether the action will promote efficiency, competition and capital formation.

 

We could also be entitled to exemptions under Section 14(a) and (b) of the Securities Exchange Act of 1934, as described below:

 

a.  Solicitation of proxies in violation of rules and regulations:

 

It shall be unlawful for any person, by the use of the mails or by any means or instrumentality of interstate commerce or of any facility of a national securities exchange or otherwise, in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors, to solicit or to permit the use of his name to solicit any proxy or consent or authorization in respect of any security (other than an exempted security) registered pursuant to section 12.

 

b.  Giving or refraining from giving proxy in respect of any security carried for account of customer:

 

1.

It shall be unlawful for any member of a national securities exchange, or any broker or dealer registered under this title, or any bank, association, or other entity that exercises fiduciary powers, in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors, to give, or to refrain from giving a proxy, consent, authorization, or information statement in respect of any security registered pursuant to section 12, or any security issued by an investment company registered under the Investment Company Act of 1940, and carried for the account of a customer.

   

2.

With respect to banks, the rules and regulations prescribed by the Commission under paragraph (1) shall not require the disclosure of the names of beneficial owners of securities in an account held by the bank on December 28, 1985, unless the beneficial owner consents to the disclosure. The provisions of this paragraph shall not apply in the case of a bank which the Commission finds has not made a good faith effort to obtain such consent from such beneficial owners.

 

There has been no market for our securities and a public market may never develop, or, if any market does develop, it may not be sustained. Our common stock is not traded on any exchange or on the over-the-counter market. After the effective date of the registration statement relating to this prospectus, we hope to have a market maker file an application with the Financial Industry Regulatory Authority (“FINRA”) for our common stock to be eligible for trading on the Over-the-Counter Bulletin Board. We do not have a market maker who has agreed to file such an application. There can be no assurance that our common stock will ever be quoted on a stock exchange or a quotation service or that any market for our stock will develop.

 

 
6

 

Since becoming incorporated, FWF Holdings Inc. has not been involved in any mergers, acquisitions or consolidations nor has the Company any plans nor do any of its stockholders have any plans to merge into an operating company, to enter into a change of control or similar transaction or to change our management. Neither management nor the Company’s shareholders have plans or intentions to be acquired.”

 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.

 

The date of this prospectus is ______ , 2014.

__________

 

 
7

 

In this prospectus, unless otherwise specified references to “the Company”, “our Company”, “we”, “us” or “our” mean FWF Holdings Inc., unless the context otherwise requires. All financial information is stated in United States dollars unless otherwise specified. Our financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.

 

SUMMARY

 

The following summary highlights selected information contained in this prospectus. This summary does not contain all the information you should consider before investing in the securities. Before making an investment decision, you should read the entire prospectus carefully, including the “Risk Factors” section, the financial statements and the notes to the financial statements.

 

The Company

 

FWF Holdings Inc. is a Hot Sauce product business that will focus on selling a planned hot sauce product with a blend of peppers, fruits, herbs and spices. The Company has targeted four main customer groups to sell its planned product. The first group is specialty food stores, the second is wholesale distributors, the third is restaurants and the last customer segment is through a company owned online website. We are considered a development stage company. We currently have no product to sell, but we intend to use an old family receipt in the manufacturing of the product. We intend to identify and distinguish ourselves by positioning our product at the high end of the market in price, targeting a broad base of consumers.

 

From inception until the date of this filing, we have had no operating activities. Our financial statements from inception (July 22, 2014) through the year end July 31, 2014, reports no revenues and a net loss of $2,204. Our independent registered public account has issued an audit for FWF Holdings Inc. which includes a statement expressing substantial doubt as to our ability to continue as a going concern.

 

FWF Holdings Inc. anticipates that it will derive its income from the sale of its proposed Hot Sauce product. We do not anticipate earning revenues until such time as we enter into commercial operations. Since we are presently in the development state of our business, we can provide no assurance that we will successfully identify and sell any products or services related to our planned act ivies.

 

We were incorporated under the laws of Nevada effective July 22, 2014. Our principal business offices are Stiftstr. 32, 20099 Hamburg, Germany and our telephone number is (800) 873-0694 and our fax number is (775) 882-8628.

 

The Offering

 

FWF Holdings Inc. has 10,000,000 of common stock issued and outstanding and is registering an additional 5,000,000 shares of common stock for offering to the public. The Company may endeavor to sell all 5,000,000 shares of common stock after the registration becomes effective. The price at which the Company offers these shares is fixed at $0.03 per share for the duration of the offering. There is no arrangement to address the possible effect of the offering on the price of the stock. FWF Holdings Inc. will receive all proceeds from the sale of the common stock.

 

The Issuer:

FWF Holdings Inc.

 

 

Securities Being Offered:

5,000,000 shares of common stock

 

 

Offering Price:

$0.03

 

 

Termination of the Offering:

This offering will conclude at when all the securities offered are sold or within 180 days after the registration statement becomes effective with the Securities and Exchange commission whichever occurs first.

 

 

Net Proceeds:

$138,000 (one hundred and thirty-eight thousand). (The $138,000 is Net of the $11,500 registration costs.)

 

 

Use of Proceeds:

See “Use of Proceeds” and the other information in this prospectus.

 

 

Outstanding Shares of Common Stock:

There are 10,000,000 shares of common stock issued and outstanding as July 22, 2014 held solely by our President and Chief Executive Officer, and Secretary, Nami Shams.

   

Risk Factors:

See “Risk Factors” and the other information in this prospectus for a discussion of the factors you should consider before deciding to invest in our securities.

 

You should rely only upon the information contained in this Prospectus. FWF Holdings Inc. has not authorized anyone to provide you with information different from that which is contained in this Prospectus. The Company is offering to sell shares of common stock and seeking offers only in jurisdictions where offers and sales are permitted. The information contained herein is accurate only as of the date of this Prospectus, regardless of the time of delivery of this Prospectus or of any sale of the common stock.

 

 
8

 

Summary of Financial Data

 

The following summary of financial data summarizes certain information from our audited financial statements as at July 31, 2014.

 

 

  As of July 31,
2014
 

 

   

Revenues

 

$

0

 

Operating Expenses

 

$

(2,204

)

Net Loss

 

$

(2,204

)

Working Capital

 

$

7,796

 

Shareholder’s Equity

 

$

7,796

 

 

RISK FACTORS

 

An investment in our common stock involves a number of very significant risks. You should carefully consider the following risks and uncertainties in addition to other information in this prospectus in evaluating our company and its business before purchasing shares of our common stock. Our business, operating results and financial condition could be seriously harmed due to any of the following risks. The risks described below may not be all of the risks facing our company. Additional risks not presently known to us or that we currently consider immaterial may also impair our business operations. You could lose all or part of your investment due to any of these risks.

 

Risks Related to Our Company

 

We are a recently organized development stage company but have not yet commenced operations in our business. We expect to incur operating losses for the foreseeable future.

 

We were incorporated on July 22, 2014 and to date have been involved primarily in organization activities. We have not yet commenced business operations. Further, we have not yet fully developed our business plan, or our management team, nor have we targeted or assembled any real or intangible property rights. Accordingly, we have no way to evaluate the likelihood that our business well be successfully. We have not earned any revenues as of the date of this prospectus. Potential investors should be aware of the difficulties normally encountered by a new niche market online sales activities and the high rate of failure for such enterprises. The likelihood of success must be considered in light of the problems, expenses, difficulties, complications and delays encountered in connection with the operations that we plan to undertake. These potential problems include, but are not limited to, unanticipated problems relating to production, the market acceptance of our product, online store, developing relationship with suppliers, distribution and challenges, and additional costs and expenses that may exceed current estimates. Prior to time that we are ready to market and distribute our prospective product, we anticipate that FWF Holdings Inc. will incur increased operating expenses without realizing any revenues. We expect to incur significant losses into the foreseeable future. We recognize that if the effectiveness of our business plan is not forthcoming we will not be able to continue business operations. There is no operating history upon which to base any assumption as to the likelihood that we will prove successful and it is doubtful that we will generate any operating revenues or ever achieve profitable operations. If we are unsuccessful in addressing these risks, our business will most likely fail.

 

We are an early-stage organization and have a correspondingly small financial and accounting organization. Being a public company may strain our resources, divert management’s attention and affect its ability to attract and retain qualified officers and directors .  

 

We are an early-stage company with no developed finance and accounting organization and the rigorous demands of being a public company require a structured and developed finance and accounting group. As a reporting company, we will be subject to the reporting requirements of the Securities Exchange Act of 1934. However, the requirements of these laws and the rules and regulations promulgated there under entail significant accounting, legal and financial compliance costs which may be prohibitive to us as we develop our business plan, services and scope. These costs have made, and will continue to make, some activities more difficult, time consuming or costly and may place significant strain on its personnel, systems and resources. 

 

The Securities Exchange Act requires, among other things, that companies maintain effective disclosure controls and procedures and internal control over financial reporting. In order to maintain the requisite disclosure controls and procedures and internal control over financial reporting, significant resources and management oversight are required. As a result, management’s attention may be diverted from other business concerns, which could have a material adverse effect on the development of our business, financial condition and results of operations. 

 

These rules and regulations may also make it difficult and expensive for us to obtain director and officer liability insurance. If we are unable to obtain adequate director and officer insurance, our ability to recruit and retain qualified officers and directors, especially those directors who may be deemed independent, will be significantly curtailed. 

 

 
9

 

Our Company’s Management has no prior experience in running a public company, the Company may be faced with additional costs to maintain its reporting requirements. Such costs could have a material adverse effect on our business financial condition and operating results.

 

Because the Company’s management has no prior experience in running a public company, the Company may be faced with additional costs to maintain its reporting requirements and as such may be reliant upon external consultants and additional accounting and legal advice. These cost may be significant and such costs may have and adverse affect on our ability to operate and our results of operations.

 

We have incurred net losses since our inception and expect losses to continue.

 

We have not been profitable since our inception. Since our inception on July 22, 2014 to July 31, 2014, we had a net loss of $2,204. We have not generated revenues from operations and do not expect to generate revenues from operations unless and until we are able to bring our concept. There is a risk that we may never bring our concept to the market place or that our business concept will attract customer. In addition there is no guarantee and that our operations will be profitable in the future and you could lose your entire investment.  

 

One of the biggest challenges facing us will be in securing adequate capital to continue to expand our business and increase operations. Secondarily, an ongoing challenge remains the maintenance of an efficient operating structure and business model. We must keep our expenses and the costs of marketing and distribution at a minimum in order to generate a profit from the revenues that we anticipate receiving from the sales of our product. Third, in order to expand, we will need to continue implementing effective sales and marketing strategies to reach and forge new business markets and consumers. We have devised our initial sales, marketing and advertising strategies, however, we will need to continue refinement of these strategies and also skillfully implement these plans in order to achieve ongoing and long-term success in its business. Fourth, we will continuously identify, attract, solicit and manage potential employee talent, which requires us to consistently recruit, incent and monitor various employees. High employee turnover or attrition is a significant risk for us as it requires expending substantial resources to locate and train new personnel and also to replace personnel for clients. These tasks require significant time and attention from our management, and employees may nevertheless become dissatisfied with their respective tenure with us. 

 

Due to financial constraints and the early stage of our life, we have to date conducted limited advertising and marketing to reach customers. In addition, we have not yet located the sources of funding for further development on a broader scale through acquisitions or other major partnerships. If we were unable to locate such financing and/or later develop strong and reliable sources of potential new business relationships and a means to efficiently reach new business partners and customers, it is unlikely that we will be able to develop its proposed expanded operations and business plan. Moreover, the above assumes that our products are consistently met with client satisfaction in the marketplace and exhibit steady success amongst the potential customer base, neither of which is reasonably predictable or guaranteed. 

 

Our auditors have questioned our ability to continue operations as a “going concern.” Investors may lose all of their investment if we are unable to continue operations and generate revenues . We hope to obtain significant revenues from future product sales.In the absence of significant sales and profits, we may seek to raise additional funds to meet our working capital needs, principally through the additional sales of our securities.However, we cannot guarantee that we will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to us. As a result, substantial doubt exists about our ability to continue as a going concern.

 

We may not be able to continue as a going concern if we do not obtain additional financing.

 

Our independent accountants’ audit report states that there is substantial doubt about our ability to continue as a going concern. We have incurred only losses since our inception raising substantial doubt about our ability to continue as a going concern. Therefore, our ability to continue as a going concern is highly dependent upon obtaining additional financing for our planned operations. There can be no assurance that we will be able to raise any additional funds, or we are able to raise additional funds, that such funds will be in the amounts required or on terms favourable to us.

 

Our competition is intense in all phase of our business.

 

The Hot Sauce market is dominated by Tabasco with a 19% market share and Frank’s RedHot at 12.3% as reported on Bloomberg.com (Source: Bloomberg TV “see Competition Section, page 23, for link” ) . Also according to Entrepreneur.com (Source: http://www.entreprenuer.com/article/224977-7 ) there are 218 manufactures of Hot Sauces in the United States, including such names as Cholula, Louisiana Original Hot Sauce, Tapatio, Sriracha and Valentina Hot-Sauce. They are many online avenues to purchase hot sauce products, as well as through supermarkets, food speciality stores and restaurants. Nearly all of our competitors are more experienced, have vastly greater financial and management resources and have more established proprietary trademarks and distribution networks than we do. These and other competitors are likely to have distribution channels for their products that we do not have, which places us at a significant disadvantage. Failure of the Company to achieve market acceptance could have a material adverse effect on our business, financial conditions and the results of our operations.

 

 
10

 

Our business is subject to many regulations and noncompliance is costly.

 

The production, marketing and sale of our Hot Sauce product are subject to the rules and regulations of various federal, state and local health agencies. If a regulatory authority finds that a current or future production run is not in compliance with any of these regulations, we may be fined, or production may be stopped, thus adversely affecting our financial conditions and operations. Similarly, any adverse publicity associated with any noncompliance may damage our reputation and our ability to successfully market our product. Furthermore, the rules and regulation are subject to change from time to time and while we closely monitor developments in this area, we have no way of anticipating whether changes in these rules and regulations will impact our business adversely. Additional or revised regulatory requirements, whether labeling, production, environmental, tax or otherwise, could have an adverse effect on our business, financial condition and results of operations.

 

Our president and chief executive officer does not have any formal training specific to the Hot Sauce business.

 

Our President and Chief Executive Officer is Nami Shams. While, Mr. Shams does have experience in sales and marketing, but he has no direct training or experience in developing and marketing a Hot Sauce product business for the general market place. Our management team may not be fully aware of the specific requirements related to working within this industry. Consequently, our operations, earnings and ultimate financial success could suffer irreparable harm due to management’s lack of experience in this industry.

 

Our current president and chief executive officer has other business interests.

 

Nami Shams, our President and Chief Executive Officer, currently devotes approximately fifteen hours per week providing management services to us. While he presently possesses adequate time to attend to our interest, it is possible that the demands on him from other obligations could increase, with the result that he would no longer be able to devote sufficient time to the management of our business. The loss of Mr. Shams to our company could negatively impact our business development.

 

We have requirements for and there is an uncertainty of access to additional capital.

 

At July 31, 2014, we had cash of $9,990 and working capital of $7,796. We will continue to incur development costs to fund our plan of operations and intend to fund our plan of operations from working capital, equity subscriptions and shareholders’ loans. Ultimately, our ability to continue our business operations depends in part on our ability to obtain financing through , debt financing, equity financing, or commence operations and generate revenues or some combination of these or other means. There can be no assurance that we will be able to obtain any such financing.

 

We have no cash flow from operations and depend on equity financing and shareholder loans for our operations.

 

Our current operations do not generate any cash flow. Our current operating funds are less than necessary to complete our intended plan of operations real and/or intangible property. We will need the funds from the offering to begin to operate our business only until Phase I of our Plan of Operation, which requires minimum funding of $150,000 for Phases I and II. Our failure to obtain such additional financing could result in delay or indefinite postponement of further operations which would have a material adverse effect on our business.

 

We lack an operating history .

 

We were incorporated on July 22, 2014 and we have not realized any revenues. We have very little operating history upon which an evaluation of our future success or failure can be made. Our ability to achieve and maintain profitability and positive cash flow is dependent upon the completion of this offering, our ability to attract customers and to generate revenues through our sales.

 

We expect to incur losses in the future.

 

Based upon current plans, we expect to incur operating losses in future periods because we will be incurring expenses and not generating revenues. We cannot guarantee that we will be successful in generating revenues in the future. Failure to generate revenues will cause us to go out of business.

 

 
11

 

Our operating results may prove unpredictable.

 

Our operating results are likely to fluctuate significantly in the future due to a variety of factors, many of which we have no control over. Factors that may cause our operating results to fluctuate significantly include: our ability to generate enough working capital from future equity sales; the level of commercial acceptance by the public of our proposed product; fluctuations in the demands of our products; the amount and timing operating costs and capital expenditures relating to expansion of our business, operations, infrastructure and general economic conditions. If realized, any of these factors could have a material effect on our business, financial condition and operating results, which could result in the complete loss of your investment.

 

We may not be able to gain any significant market acceptance.

 

The Company’s growth strategy is substantially dependent upon its ability to access the wholesale market and to market the proposed product successfully to the general consumer(s’) of Hot Sauce. However, its planned product may not achieve significant acceptance. Such acceptance, if achieved, may not be sustained for any significant period of time. Failure of the Company’s to produce product and achieve market acceptance could have a material adverse effect on our business, financial conditions and results of our operations.

 

RISKS ASSOCIATED WITH THIS OFFERING

 

There is no minimum number of shares that must be sold and no assurance that the proceeds from the sale of shares will allow the Company to meet its goals.   

 

We are selling our shares on a “best efforts” basis, and there is no minimum number of shares that must be sold by us in this Offering. Similarly, there are no minimum purchase requirements. We do not have an underwriter, and no party has made a firm commitment to buy any or all of our securities. We intend to sell the shares through our President and Chief Executive Officer, who will not be separately compensated for his efforts. Even if we only raise a nominal amount of money, we will not refund any funds to you. Any money we do receive will be immediately used by us for our business purposes. Upon completion of this Offering, we intend to utilize the net proceeds to finance our business operations. While we believe that the net proceeds from the sale of all shares in this Offering will enable us to meet our business plans and enable us to operate as other than a going concern, there can be no assurance that all these goals can be achieved. Moreover if less than all of the shares are sold, management will be required to adjust its plans and allocate proceeds in a manner which it believes, in our sole discretion, will be in our best interests. It is highly likely that if not all of the shares are sold there will be a need for additional financing in the future, without which our ability to operate as other than a going concern may be jeopardized. No assurance whatsoever can be given or is made that such additional financing, if and when needed, will be available or that it can be obtained on terms favorable to us. Accordingly you may be investing in a company that does not have adequate funds to conduct its operations. If that happens, you will suffer a loss of your investment.  

 

Our officers and directors may have a conflict of interest with the minority shareholders.

 

Nami Shams, our President and Chief Executive Officer and sole Director, beneficially owns 100% of our outstanding common stock. Assuming the sale of all 5,000,000 shares in this offering, Mr. Shams will own approximately 66.67% of all shares of common stock of the Company. The interest of Mr. Shams may not be, at all times, the same as that of our other shareholders. Mr. Shams is not simply a passive investor but is also an executive officer and director of the Company and his interests as an executive may, at times be adverse to those of passive investors. Where those conflicts exist, our shareholders will be dependent upon Mr. Shams exercising, in a manner fair to all of our shareholders, his fiduciary duties as an officer or as a member of the Company’s Board of Directors. Also, Mr. Shams has the ability to control the outcome of most corporate actions requiring shareholder approval, including the sale of all or substantially all of our assets, amendments to our Articles of Incorporation and the election of directors. This concentration of ownership may also have the effect of delaying, deferring or preventing a change of control of us, which may be disadvantageous to minority shareholders.

 

 
12

 

We Are An “Emerging Growth Company” And We Cannot Be Certain If The Reduced Disclosure Requirements Applicable to Emerging Growth Company Will Make Our Common Stock Less Attractive to Investors.

 

We are an “emerging growth company,” as defined in the Jumpstart our Business Start-ups Act of 2012, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. We cannot predict if investors will find our common stock less attractive because we will rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.

 

Under the Jumpstart Our Business Start-ups Act, “emerging growth companies” can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have irrevocably elected not to avail ourselves to this exemption from new or revised accounting standards and, therefore, we will be subject to the same new or revised accounting standards as other public companies that are not “emerging growth companies.”

 

There has been no prior public market for our securities and the lack of such a market may make resale of the stock difficult.  

 

No prior public market has existed for our securities and we cannot assure any investor that a market will develop subsequent to this offering. An investor must be fully aware of the long-term nature of an investment in us. We intend to apply for quotation of our common stock on the OTCQB as soon as possible which may be while this offering is still in process. However, we do not know if we will be successful in such application, how long such application will take, or, that if successful, that a market for the common stock will ever develop or continue on the OTCQB. If for any reason the common stock is not listed on the OTCQB or a public trading market does not otherwise develop, investors in the offering may have difficulty selling their common stock should they desire to do so. If we are not successful in our application for quotation on the OTCQB, we will apply to have its securities quoted by the Pink OTCQB Markets, Inc., real-time quotation service for over-the-counter equities. 

 

Our shares may not become eligible to be traded electronically which could result in brokerage firms being unwilling to trade them.  

 

Our shares of common stock may be eligible to be quoted on the OTCBB and OTCQB. Our shares are not eligible with Depository Trust Company (DTC) to trade electronically. Because we are not DTC eligible, our shares will not be electronically transferred between brokerage accounts, the practical effect of which means that our shares will not trade much, if at all, on the OTCBB or OTCQB. In order for our shares to trade on the OTCBB or OTCQB, our shares would need to be traded manually between broker dealers and their accounts, which is time consuming, costly and cumbersome. We cannot guaranty that our shares will ever become DTC eligible or, if in the event we apply for DTC eligibility, how long it will take to become eligible.

 

We do not intend to pay dividends to our stockholders so investors will not receive any return on investment in us prior to selling their equity interest .  

 

We do not project paying dividends but anticipate that we will retain future earnings for funding our growth and development. Therefore, investors should not expect us to pay dividends in the foreseeable future. As a result, investors will not receive any return on their investment prior to selling their shares, and if and when a market for such shares develops. Furthermore, even if a market for our securities does develop, there is no guarantee that the market price for the shares would be equal to or more than the initial per share investment price paid by any investor. There is a possibility that the shares could lose all or a significant portion of their value from the initial price paid in this offering.

 

Our stock will be a penny stock. Trading of our stock may be restricted by the SEC’s penny stock regulations and FINRA’s sales practice requirements, which may limit a stockholder’s ability to buy and sell our stock.

 

As the Company’s shares may be trading under $5.00 per share is the offering becomes effective, the shares may be traded as a “penny stock”. The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in "penny stocks." Penny stocks generally are 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). 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 SEC, which specifies information about penny stocks and the nature and significance of risks of the penny stock market. A broker-dealer must also provide the customer with bid and offer quotations for the penny stock, the compensation of the broker-dealer, and sales person in the transaction, and monthly account statements indicating 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 agreement to the transaction. These disclosure requirements may have the effect of reducing the trading activity in the secondary market for stock that becomes subject to those penny stock rules. If a trading market for our common stock develops, our common stock will probably become subject to the penny stock. 

 

 
13

 

We are not registered on any market or public stock exchange. There is presently no demand for our common stock and to public market exists for the shares being offered in this prospectus. We plan to contact a market maker immediately following the completion of the offering and apply to have our shares of common stock quoted on the Over-the-Counter Bulletin Board (“OTCBB”). The OTCBB is a regulated quotation service that displays real-time quotes, last sale prices and volume information in the over-the-counter securities. The OTCBB is not an issuer listing service, market or exchange. Although the OTCBB does not have any listing requirements per say, to be eligible for quotation on the OTCBB, issuers must remain correct in their filings with the SEC or applicable regulatory authority. Market makers are not permitted to begin quotation of a security whose issue does not meet the filing requirements. Securities already quoted on the OTCBB that become delinquent in their required filings will be removed following a 30 to 60 day grace period if they do not make their required filings during that time. We cannot guarantee that we will be able to find a market maker who will submit a Form 15c-211 application for us to FINRA or that application, if submitted, will be accepted or approved and our stock listed and quoted for sale. As of the date of this filing, there have been no discussions or understandings between FWF Holdings Inc. and anyone acting on our behalf, with any market maker regarding participation in a future trading market four our securities. If no market is ever developed for our common stock, it will be difficult for you to sell any shares you purchase in this offering. In such a case, you may find that you are unable to achieve any benefit from your investment or liquidate your shares without considerable delay, if at all. In addition, if we fail to have our common stock quoted on a public trading market, your common stock will not have a quantifiable value and it may be difficult, if not impossible, to ever resell your shares, resulting in an inability to realize any value from your investment.

 

Offering price has been arbitrarily set by company.

 

The offering price and other terms and conditions relative to the Company’s shares have been arbitrarily determined by us and do not bear any relationship to assets, earnings, book value or any other objective criteria of value. Additionally, as the Company was formed on July 22, 2014 and has only a limited operating history and no earnings, the price of the offered shares is not based on its past earnings and no investment banker, appraiser or other independent third party has been consulted concerning the offering price for the shares or the fairness of the offering price used for the shares, as such our stockholders may not be able to receive a return on their investment when they sell their shares of common stock.

 

Investing in the company is highly speculative investment.

 

A purchase of the offered shares is highly speculative and involves significant risks. The offered shares should not be purchased by any person who cannot afford the loss of their entire investment. The business objectives of the Company are also speculative, and it is possible that we could be unable to satisfy them. The Company’s shareholders may be unable to realize a substantial return on their purchase of the offered shares, or any return whatsoever, and may lose their entire investment. For this reason, each prospective purchaser of the offered shares should read this prospectus and all of its exhibits carefully and consult with their attorney, business and/or investment advisor.

 

Buyers will pay more for our common stock than the pro rata portion of the assets.

 

The offering price and other terms and conditions regarding the Company’s shares have been arbitrarily determined and to not bear any relationship to assets, earnings, book value or any other objective criteria of value. Additionally, no investment banker, appraiser or other independent third party has been consulted concerning the offering price for the shares or the fairness of the offering price used for the shares. Buyers of our shares pursuant to this offering will pay more for our common stock than the pro-rata portion of the assets are worth and as a result, investing in our Company may result in an immediate loss.

 

The Company’s management could issue additional shares.

 

The Company has 75,000,000 authorized common shares, of which 10,000,000 are currently issued and outstanding and only 15,000,000 will be issued and outstanding after this offering terminates. The Company’s management could, without the consent of the existing shareholders, issue substantially more shares, causing a large dilution in the equity portion of the Company’s current shareholders. Additionally, large share issuances would generally have a negative impact on the Company’s share price. It is possible that, due to additional share issuance, you could lose a substantial amount, or all, or your investment.

 

We do not have an escrow or trust account for investors’ subscriptions.

 

Invested funds for this offering will not be placed in an escrow or trust account. Accordingly, if we file for bankruptcy protection, or a petition for involuntary bankruptcy is filed by creditors against us, your funds will become part of the bankruptcy estate and administered according to bankruptcy laws. As such, you will lose your investment and your funds will be used to pay creditors.

 

 
14

 

Anti-takeover rules of certain provisions of the Nevada state law my hinder a potential takeover.

 

The Nevada Business Corporation Law contains a provision governing “Acquisition of Controlling Interest.” This law provides generally that any person or entity that acquires 20% or more of the outstanding voting shares of a publicly-held Nevada corporation in the secondary public or private market may be denied voting rights with respect to the acquired shares, unless a majority of the disinterested stockholders of the corporation elects to restore such voting rights in whole or in part. The control share acquisition act provides that a person or entity acquires “control shares” whenever it acquires shares that, but for the operation of the control share acquisition act, would bring its voting power within any of the following three ranges: (1) 20 to 33 1/3%, (2) 33 1/3 to 50%, (3) more than 50%. A “control share acquisition” is generally defined as the direct or indirect acquisition of either ownership or voting power associated with issued and outstanding control shares. The stockholders or board of directors of a corporation may elect to exempt the stock of the corporation from the provisions of the control share acquisition act through adoption of a provision to that effect in the Articles of Incorporation or Bylaws of the corporation. Our Articles of Incorporation and Bylaws do not exempt our common stock from the control share acquisition act. The control share acquisition act is applicable only to shares of “Issuing Corporations” as defined by the act. An Issuing Corporation is a Nevada corporation, which (1) has 200 or more stockholders, with at least 100 of such stockholders being both stockholders of record and residents of Nevada; (2) does business in Nevada directly or through an affiliated corporation. At this time, we do not have 100 stockholders of record of Nevada. Therefore, the provisions of the control share acquisition act do not apply to acquisitions of our shares and will not until such time as these requirements have been met. At such time as they may apply to us, the provisions of the control share acquisitions act may discourage companies or persons interested in acquiring a significant interest in or control of FWF Holdings Inc., regardless of whether such acquisition may be in the interest of our stockholders.  

 

Nevada law and our Articles of Incorporation may protect our director from certain types of lawsuits.   

 

Nevada law provides that our officers and directors will not be liable to us or our stockholders for monetary damages for all but certain types of conduct as officers and directors. Our Bylaws permit us broad indemnification powers to all persons against all damages incurred in connection with our business to the fullest extent provided or allowed by law. The exculpation provisions may have the effect of preventing stockholders from recovering damages against our officers and directors caused by their negligence, poor judgment or other circumstances. The indemnification provisions may require us to use our limited assets to defend our officers and directors against claims, including claims arising out of their negligence, poor judgment, or other circumstances.  

 

Failure to maintain effective interna l controls in accordance with Section 404 of the Sarbanes-Oxley Act would lead to loss of investor confident in our reports of financial information .  

 

Pursuant to proposals related to Section 404 of the Sarbanes-Oxley Act of 2002, after our Registration Statement is declared effective by the Securities and Exchange Commission, we intend to make a filing to which would result in the company becoming a mandatory filer under the Securities Exchange Act of 1934, as amended. For subsequent reports, we will be required to furnish a report by our management on our internal control over financial reporting. If we cannot provide reliable financial reports or prevent fraud, then our business and operating results could be harmed, investors could lose confidence in our reported financial information, and the trading price of our stock could drop significantly. 

 

To maintain compliance with Section 404 of the Act, we intend to engage in a process to document and evaluate our internal control over financial reporting, which is both costly and challenging and requires management to dedicate scarce internal resources and to retain outside consultants. 

 

During the course of our testing, we may identify deficiencies which we may not be able to remediate in time for securities disclosure reporting deadlines. In addition, if we fail to maintain the adequacy of our internal controls, as such standards are modified, supplemented or amended from time to time, we may not be able to ensure that we can conclude on an ongoing basis that we have effective internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act. Moreover, effective internal controls, particularly those related to revenue recognition, are necessary for us to produce reliable financial reports and are important to helping prevent financial fraud.

 

We do not anticipate paying dividends.

 

We do not anticipate paying dividends on our common stock in the foreseeable future, but plan rather to retain earnings, if any for the operation, growth and expansion of our business. Because the Company does not anticipate paying cash dividends in the foreseeable future which may lower expected returns for investors, and as such our stockholders will not be able to receive a return on their investment unless they sell their shares of common stock.

 

Risks Related to Investing in Our Company

 

We lack an operating history .

 

We were incorporated on July 22, 2014 and we have not realized any revenues. We have very little operating history upon which an evaluation of our future success or failure can be made. Our ability to achieve and maintain profitability and positive cash flow is dependent upon the completion of this offering, our ability to attract customers and to generate revenues through our sales. 

 

 
15

 

We expect to incur losses in the future.

 

Based upon current plans, we expect to incur operating losses in future periods because we will be incurring expenses and not generating revenues. We cannot guarantee that we will be successful in generating revenues in the future. Failure to generate revenues will cause us to go out of business.

 

Our operating results may prove unpredictable.

 

Our operating results are likely to fluctuate significantly in the future due to a variety of factors, many of which we have no control over. Factors that may cause our operating results to fluctuate significantly include: our ability to generate enough working capital from future equity sales; the level of commercial acceptance by the public of our services/products; fluctuations in the demands of our products; the amount and timing operating costs and capital expenditures relating to expansion of our business, operations, infrastructure and general economic conditions. If realized, any of these factors could have a material effect on our business, financial condition and operating results, which could result in the complete loss of your investment.

 

Please read this prospectus carefully. You should rely only on the information contained in this prospectus. We have not authorized anyone to provide you with different information. You should not assume that the information provided by the prospectus is accurate as of any date other than the date on the front of this prospectus.

 

FORWARD-LOOKING STATEMENTS

 

The information in this prospectus contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Exchange Act. These forward-looking statements involve risks and uncertainties, including statements regarding our capital needs, business plans and expectations. Further any safe harbor protections implied or stated do not apply to any statements made in connection with the offer. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “will”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue”, the negative of such terms or other comparable terminology.

 

USE OF PROCEEDS

 

FWF Holdings Inc. 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 $0.03. The following table sets forth the uses of proceeds assuming the sale of 25%, 50%, 75% and 100%, respectively, of $37,500 is raised in this offering, the Company will operate on a limited basis, meeting only its obligations to file its reports with the Securities and Exchange Commission, and seek financing. However, the Company currently has no source of additional funding, will not commence seeking additional financing until this registration statement is effective, and we cannot provide investors with any assurance that we will be able to raise sufficient funds to proceed with any work or activities.

 

Use of Proceeds

  25% of Shares Sold ($37,500)     50% of Shares Sold ($75,000)     75% of Shares Sold ($112,500)     100% of Shares Sold ($150,000)  

Operational Expenses

  $     $     $     $  

Legal & Accounting

 

9,000

   

9,000

   

9,000

   

9,000

 

Printing

   

500

     

500

     

500

     

500

 

Transfer Agent

   

2,000

     

2,000

     

2,000

     

2,000

 

Logo development

   

1,000

     

2,500

     

2,500

     

2,500

 

Website development & Support

   

3,000

     

5,500

     

8,500

     

9,500

 

Presentation Materials

   

2,500

     

4,000

     

8,000

     

9,000

 

Office supplies and telephone

   

1,500

     

3,000

     

5,000

     

5,000

 

Advertising & SOE costs

   

2,000

     

15,000

     

21,000

     

26,500

 

Product manufacturing

   

5,500

     

11,000

     

30,000

     

46,000

 

Travel – trade show costs

   

10,500

     

22,500

     

26,000

     

40,000

 

Totals

 

$

37,500

   

$

75,000

   

$

112,500

   

$

150,000

 

 

FWF Holdings Inc. will establish a separate bank account and all proceeds will be deposited into that account. If necessary, Nami Shams, our sole officer and director, has verbally agreed to loan the company funds to complete the registration process in the event that the Company depletes its current cash reserves prior to effectiveness of this registration statement, but we will require full funding to begin to implement our complete business plan.

 

 
16

 

DETERMINATION OF OFFERING PRICE

 

The offering price of the shares has been determined arbitrarily by us. The price does not bear any relationship to our assets, book value, earnings, or other established criteria for valuing a privately held company. In determining the number of shares to be offered and the offering price, we took into consideration our cash on hand and the amount of money we would need to begin to implement our business plan. Accordingly, the offering price should not be considered an indication of the actual value of the securities.

 

DILUTION

 

The price of the current offering is fixed at $0.03 per share which is the price purchasers of the shares must pay. This price is significantly different than the price paid by the Company’s sole director” and officer for common equity since the Company’s inception on July 22, 2014. Nami Shams, the Company’s sole officer and director purchased 10,000,000 (ten million) common shares at a price $0.001 per share a difference of $0.029 per share lower than the price in this offering, with $10,000 in net proceeds to the Company. The 10,000,000 shares of Mr. Shams valued at $10,000 are reflected as “Capital contributions” in the table entitled, “Existing Stockholders if all of the Shares are sold.” The purchase price for the shares in this offering, paid by purchasers of the shares, is reflected in the subsequent tables as, “Capital contributions.” Dilution represents the difference between the offering price and the net tangible book value per share immediately after completion of this offering. Net tangible book value is the amount that results from subtracting total liabilities and intangible assets from total assets. Dilution arises mainly as a result of our arbitrary determination of the offering price of the shares being offered. Dilution of the value of the shares you purchase is also a result of the lower book value of the shares held by our existing stockholders. The following table compares the differences of your investment in our shares with the investment of our existing stockholders.

 

Existing Stockholders if all of the Shares are Sold

   
     

Price per share

 

$

0.03

 

Net tangible book value (deficit) per share before offering

 

$

(0.0000

)

Potential gain to existing shareholders

 

$

150,000

 

Net tangible book value per share after offering

 

$

0.0089

 

Increase to present stockholders in net tangible book value per share after offering

 

$

0.0089

 

Capital contributions

 

$

150,000

 

Effective cash contributions of the Company’s existing sole shareholder (1)

 

$

10,000

 

Number of shares outstanding before the offering

   

10,000,000

 

Number of shares after offering held by existing stockholders

   

10,000,000

 

Percentage of ownership after offering

   

66.7

%

 

 
17

 

Purchasers of Shares if all of the Shares are Sold

   
     

Price per share

 

$

0.03

 

Dilution per share

 

$

0.0203

 

Capital contributions

 

$

150,000

 

Percentage of capital contributions

   

94.0

%

Number of shares after offering held by public investors

   

5,000,000

 

Percentage of ownership after offering

   

33.3

%

 

Purchasers of Shares in this Offering if 75% of Shares Sold

   

Price per share

 

$

0.03

 

Dilution per share

 

$

0.0221

 

Capital contributions

 

$

112,500

 

Percentage of capital contributions

   

92.0

%

Number of shares after offering held by public investors

   

3,750,000

 

Percentage of ownership after offering

   

27.0

%

 

Purchasers of Shares in this Offering if 50% of Shares Sold

   

Price per share

 

$

0.03

 

Dilution per share

 

$

0.0243

 

Capital contributions

 

$

75,000

 

Percentage of capital contributions

   

88.0

%

Number of shares after offering held by public investors

   

2,500,000

 

Percentage of ownership after offering

   

20

%

 

Purchasers of Shares in this Offering in 25% of Shares Sold

   

Price per share

 

$

0.03

 

Dilution per share

 

$

0.027

 

Capital contributions

 

$

37,500

 

Percentage of capital contributions

   

79.0

%

Number of shares after offering held by public investors

   

1,250,000

 

Percentage of ownership after offering

   

11.11

%

 

(1) Nami Shams, our sole shareholder (and President and Chief Executive Officer) acquired 10,000,000 shares of common stock at $0.001 per share for a total cost of $10,000.

 

 
18

 

PLAN OF DISTRIBUTION

 

FWF Holdings Inc. has 10,000,000 common shares of common stock issued and outstanding as of the date of this prospectus. The Company is registering an additional 5,000,000 shares of its common stock for sale at the price of $0.03 per share. There is no arrangement to address the possible effect of the offering on the price of the stock.

 

In connection with the Company’s selling efforts in the offering, Nami Shams will not register as a broker-dealer pursuant to Section 15 of the Exchange Act, but rather will rely upon the “safe harbor” provisions of SEC Rule 3a4-1, promulgated under the Securities Exchange Act of 1943 as amended (the “Exchange Act”). In general Rule 3a4-1 provides an exemption from the broker-dealer registration requirements of the Exchange Act for persons associated with an issuer that participated in an offering of the issuer’s securities. Mr. Shams is not subject to any statutory disqualification, as that term is defined in Section 3(a) (39) of the Exchange Act. Mr. Shams will not be compensated in connection with his participation in the offering by the payment of commissions or other remuneration based either directly or indirectly on transactions in our securities. Mr. Shams is not, nor has he been within the past 12 months, a broker or dealer, and he is not, nor has he been within the past 12 month), an associated person of a broker or dealer. At the end of the offering, Mr. Shams will continue to primarily perform substantial duties for the Company or on its behalf otherwise than in connection with transactions in securities. Mr. Shams will not participate in selling an offering of securities for any issuer more than once every 12 months other than in reliance on Exchange Act Rule 3a4-1(a)(4)(i) or (iii).

 

FWF Holdings Inc. will receive all proceeds from the sale of the 5,000,000 shares being offered. The price per share is fixed at $0.03 for the duration of this offering. Although our common stock is not listed on a public exchange or quoted or quoted over-the-counter, we intend to seek to have our shares of common stock quoted on the Over-the Counter Bulletin Board. In order to be quoted on the OTC Bulletin Board, a market maker must file an application on our behalf in order to make a market for our common stock. There can be no assurance that a market maker will agree to file the necessary documents with FINRA, nor can there be any assurance that such an application for quotation will be approved.

 

The Company’s shares may be sold to purchasers from time to time directly by and subject to the discretion of the Company. Further, the Company will not offer its shares for sale through underwriters, dealers, agents or anyone who may receive compensation in the form of underwriting discounts, concessions or commissions from the Company and/or the purchasers of the shares for whom they may act as agents. The shares of common stock sold by the Company may be occasionally sold in one or more transactions; all shares sold under this prospectus will be sold at a fixed price of $0.03 per share.

 

In order to comply with the applicable securities law of certain states, the securities will be offered or sold in those only if they have been registered or qualified for sale; an exemption from such registration or if qualification require is available and with which FWF Holdings Inc. has complied.

 

In addition and without limited the foregoing, the Company will be subject to applicable provisions, rules and regulations under the Exchange Act with regard to security transactions during the period of time when this Registration Statement is effective. FWF Holdings Inc. will pay all expenses incidental to the registration of the shares (including registration pursuant to the securities laws of certain states).

 

REGULATION M

 

Our officer and director, Nami Shams, who will offer and sell the shares, offered hereby, is aware that he is required to comply with the provisions of Regulation M promulgated under the Exchange Act. With certain exceptions, Regulation M precludes the officers and directors, sales agents, any broker-dealer or other person who participates in the distribution of shares in this offering from bidding for or purchasing, or attempting to induce any person to bid for or purchase any security which is the subject of the distribution until the entire distribution is complete.

 

 
19

 

DESCRIPTION OF SECURITIES TO BE REGISTERED

 

General

 

Our authorized capital stock consists of 75,000,000 shares of common stock at a par value of $0.001 per share. As of July 31, 2014 there were 10,000,000 shares of our common stock issued and outstanding that was held by one registered stockholder or record.

 

Common Stock

 

Each share of common stock is entitled to one vote with respect to the election of any director or any other matter upon which shareholders are required or permitted to vote. Holders of our common stock representing 50.1% of our capital stock issued and outstanding and entitled to vote, represented in person or by proxy, are necessary to constitute a quorum at any meeting of our stockholders, except as otherwise provided by statute. A vote by the holders of a majority of our outstanding shares is required to effectuate certain fundamental corporate changes such as liquidation, merger or an amendment to our Articles of Incorporation.

 

Holders of common stock are entitled to share in all dividends that the Board of Directors, in its discretion, declares from available funds. The payment of dividends is at the discretion of our Board of Directors. 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 liquidation, dissolution or winding up, each outstanding share entitles its holder to participate pro rata in all assets that remain after payment of liabilities.

 

Holders of our common stock have no pre-emptive rights, no conversion rights and there are no redemption provisions applicable to our common stock.

 

Our Bylaws provide that at all meetings of the stockholders for the election of directors, a plurality of the votes cast shawl be sufficient to elect. On all other matters except as otherwise required by Nevada law or the Articles of Incorporation, a majority of the votes cast at a meeting of the stockholders hall be necessary to authorize any corporate action to be taken by vote of the stockholders. A “plurality” means the excess of the votes cast for one candidate over any other. When there are more than two competitors for the same office, the person who receives the greatest number of votes has a plurality.

 

Please refer to the Company’s Articles of Incorporation, Bylaws and the applicable statues of the State of Nevada for a more complete description of the rights and liabilities of holders of the Company’s securities.

 

NEVADA ANTI-TAKEOVER LAWS

 

The Nevada Business Corporation Law contains a provision governing “Acquisition of Controlling Interest.” This law provides generally that any person or entity that acquires 20% or more of the outstanding voting shares of a publicly-held Nevada corporation in the secondary public or private market may be denied voting rights with respect to the acquired shares, unless a majority of the disinterested stockholders of the corporation elects to restore such voting rights in whole or in part. The control share acquisition act provides that a person or entity acquires “control shares” whenever it acquires shares that, but for the operation of the control share acquisition act, would bring its voting power within any of the following three ranges: (1) 20 to 33 1/3%, (2) 33 1/3 to 50%, (3) more than 50%. A “control share acquisition” is generally defined as the direct or indirect acquisition of either ownership or voting power associated with issued and outstanding control shares. The stockholders or board of directors of a corporation may elect to exempt the stock of the corporation from the provisions of the control share acquisition act through adoption of a provision to that effect in the Articles of Incorporation or Bylaws of the corporation. Our Articles of Incorporation and Bylaws do not exempt our common stock from the control share acquisition act. The control share acquisition act is applicable only to shares of “Issuing Corporations” as defined by the act. An Issuing Corporation is a Nevada corporation, which (1) has 200 or more stockholders, with at least 100 of such stockholders being both stockholders of record and residents of Nevada; (2) does business in Nevada directly or through an affiliated corporation. At this time, we do not have 100 stockholders of record of Nevada. Therefore, the provisions of the control share acquisition act do not apply to acquisitions of our shares and will not until such time as these requirements have been met. At such time as they may apply to us, the provisions of the control share acquisitions act may discourage companies or persons interested in acquiring a significant interest in or control of FWF Holdings Inc., regardless of whether such acquisition may be in the interest of our stockholders.

 

 
20

 

STOCK TRANSFER AGENT

 

We have not engaged the services of a transfer agent at this time. However, within the next twelve months we anticipate doing so. Until such time a transfer agent is retained, FWF Holdings Inc. will act as its own transfer agent.

 

RULE 144 AND REGISTRATION AGREEMENTS

 

All 10,000,000 shares of our issued and outstanding shares of our common stock are “restricted securities” under Rule 144, promulgated pursuant to the Securities Act of 1933, as amended, but none of those 10,000,000 shares can be resold under Rule 144 or are subject to any registration agreement.

 

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 offered hereby was employed on a contingency basis, or had, or is to receive, in connection with such offering, a substantial interest, direct or indirect, in our Company, nor was any such person connected with our Company as a promoter, managing or principal underwriter, voting trustee, director, officer, or employee.

 

Experts

 

Diane Dalmy, Attorney at Law, 2000 East 12 th Avenue, Suite 32/10B, Denver, Colorado, 80206 has rendered an opinion with respect to the validity of the shares of common stock covered by this prospectus.

 

The financial statements included in this registration statement have been audited by PLS CPA, A Professional Corporation, 4725 Mercury Street, Suite 210, San Diego, CA 92111, to the extent and for the periods set forth in their report appearing elsewhere herein and in the registration statement. The financial statements are included in reliance on such report given upon the authority of said firm as experts in auditing and accounting.

 

DESCRIPTION OF BUSINESS

 

Organization

 

FWF Holdings Inc. was incorporated on July 22, 2014 under the laws of the State of Nevada. Mr. Nami Shams has served as President, Chief Executive Officer and Secretary of our company from July 22, 2014 to the current date. No person other than Mr. Shams has acted as a promoter of FWF Holdings Inc., since our inception. There are no agreements with us pursuant to which Mr. Shams is to receive from us or provide to us anything of value.

 

General

 

FWF Holdings Inc. (“FWF”) is a development stage company that intends to focus on the manufacturing and the selling of its own hot sauce under the brand name Fruit With Fire Hot Sauce to the general hot sauce market place. We intend to focus on selling a hot sauce product with a blend of peppers, fruits, herbs and spices. The Company has targeted four main customer groups to sell its product. The first group is specialty food stores, the second is wholesale distributors, the third is restaurants and the last customer segment is through a company owned online website.

 

FWF Holdings Inc. intends to focus on selling a fruit based hot sauce product in a market segment filled with competition. Our approach is to take our proposed product image up-market because of our uncompromising view of our proposed product. Many low-end sauces are built around a base of vinegar; FWF sauce will be built around fresh peppers, fruit and other natural ingredients. Initially FWF intends to focus its marketing efforts to speciality food stores, through its own website, and attending and eventually becoming an exhibitor at national and regional food shows as the Company’s budget permits.

 

 
21

 

The keys to success will be the Company’s ability to differentiate ourselves from all others. We intend to stress authenticity of the ingredients and the heritage of the family recipe. We intend to position our proposed product at the high end of the market, in terms of price. To provide a specialty product that will be different in taste from the “large volume” producers such as Tabasco, Franks Red-Hot Sauce and Tapatio.

 

During the next 12 months, FWF Holdings Inc. intends to continue its ongoing research by attending three trade food shows; The Fancy Food Show held twice a year (winter held in San Francisco in January and the summer show in New York in June). The other trade show we hope to attend is the National Fiery Foods & Barbecue Show; usually held in March in Albuquerque. We also intend to develop a unique label and packaging for our proposed hot sauce product. We will also source third-party companies to produce and ship out our product; setting up the company’s website and begin to market and sell the Fruit With Fire Hot Sauce product.

 

We have not earned any revenues to date. Our independent registered public accountant has issued an audit opinion which includes statement expressing substantial doubt as to our ability to continue as a going concern.

 

There is the likelihood that we may never be able to market our niche hot sauce product that the Company would need to successfully complete its plan of operation and develop and implement the Company’s retail and web-site. If our company is not capable of building a market for its proposed product, all funds that we spend on development will be lost.

 

Product

 

FWF Holdings Inc. intends to sell a fruit based hot sauce product using a blend of peppers, fruits, herbs and spices. We intend to produce and market in a hot flavor only at this time.

 

Market Analysis

 

According to Entrepreneur .com (Source: http://www.entrepreneur.com/article/224977-7 ) manufacturing of the spicy condiment to be one of the 10 fastest-growing industries in the United States, with average company revenues jumping 9.3 percent per year over the last decade and with industry projected to grow over the next five years at an average annual rate of 4.1%. Hot sauce, like most other condiments, is purchased by both food-service providers and supermarkets for resale to the final consumer.

 

Even though the segment is small, roughly 5,500 people employed by 218 sauce companies, an industry valued at $1 billion – it packs an entrepreneurial punch according to Entrepeneur.com. Beyond established companies, thousands of kitchen and garage cooks have begun decocting their own spicy blends, with dozens of new sauces hitting local shelves and mail-order catalogs each year. A quick survey (Source: Entreprenuer.com “The Biggest Trends in Business 2013” see above link) recent entrepreneurial sauciers included a formerly homeless veteran who used hot sauce to rebuild his life and a Palo Alto, California, firefighter who grows his own peppers behind the station. Even the industry’s largest player, Avery Island, La., based Tabasco, which has the largest percentage of the market and has been privately held by the Mcllhenny family since 1868.

 

According to Dave DeWitt, producer of the annual National Fiery Foods & Barbecue Show held in Albuquerque, New Mexico, (Source: http://www.fieryfoodsshow.com ) and the authority on all things spicy, likens the hot sauce explosion to that of craft feet. “It’s similar because it’s an industry in which people have a vision of a product and that they want to create,” he says. “So just like in micro-brewing, people are using innovation as much as they can.” (refer to the Entrepreneur.com link).

 

According to IBIS World and Dave DeWitt both point to the increasing popularity of and exposure of international foods. With that comes demand for zippy condiments like Vietnamese Sriracha, Korean Chili paste and more complex versions of Mexican salsas. Research firm Mintel reports that sales of sauces and marinades—including hot sauces—jumped 20 percent between 2005 and 2010 and were expected to increase another 19% by 2015, mainly because people are increasingly cooking at home to save money and want to re-create those international flavors they have come to enjoy while eating out. (Source: http://www.entrepreneur.com/article/224977-7 )

 

 
22

 

According to Dave DeWitt, hot sauces are maturing, instead of focusing on extreme heat or crude names, companies are experimenting with fruit-based sauces and toning down some of the heat to appeal to a wider consumer base. “The micro-hot-sauce industry and all the new brands are slowly eroding Tabasco’s market position,” DeWitt says. (Source; http://www.entrepreneur.com/article/224977-7 )

 

Blair Lazar, who founded Highlands, H.J. based Blair’s Sauces and Snacks 23 years ago (and holds the Guinness World Record for the hottest product on Earth), believes technology is a major driver of the sauce boom. “When I started it was hard to even find bottles. Now people can order bottles and get labels off the internet,” Lazar says. But the most important reason for the trend, he contends that Americans, like much of the rest of the world, have simply fallen in love with heat. (As reported in Entrepreneur.com, “The Biggest Trends in Business for 2013”, See above link above).

 

Market Segmentation

 

We have broken down our target market into the following categories:

 

 

-

Specialty Food Stores – Sales of specialty foods, including hot sauce, continue to boom. From 2011 to 2013, sales increase by 18.4%, retail dollar sales grew an impressive 8 percent. According to the Specialty Food Industry 2014 Report; total food sales in 2013 topped $88.3 billion, approximately 80% of specialty food sales are retail; categories with the most significant penetration are salsa sauces and dips 49.8%. (Source: http://www.specialtyfood.com/knowledge-center/industry-info/state-industry-14/)

 

 

 
 

-

Large Grocery Stores – According to the Euromonitor International Report of 2014 reporting on Grocery retailers in the United States. The US continued its economic recovery in 2013 and there was some disparity between the relative success of many consumers. High income consumers were able to maintain their spending habits while many others look for ways to reduce their monthly spending. The grocery market bears this out and the results were evident when studying the performance of various market segments. The largest grocery retailer in the United States is Wal-Mart with a 25% market share, followed by Kroger Co. with 8%. According to IBIS World, August 2014 report the market in the United States is $574 billion, with a 1.5% growth rate. It is estimated over the next five years as the economy recovers consumers will increase purchases of premium-brands and private-label brands. (Source: http://www.euromonitor.com/grocery-retailers-in-the-us/report )

 

 

 
 

-

Restaurants – According to IBIS World Industry Report on Fast Food Restaurants in the USA. Included in the report was information on the 77,211 full service restaurants; 72,232 caterers in the USA; 72,233 street vendors in the USA and 72,241 bars and nightclubs in the USA accounting for $184 billion in sales and an annual growth rate project of 2.5% through 2015. The industry continues to evolve into providing a greater variety of healthier and fresh products to their consumer base . (Source:http://virtualbutterfly.files.wordpress.com/2010/04/72221-fast-food-restaurants-in-the-us-industry-report.pdf)

 

Target Market Strategy

 

The following are our market segments along with our reasoning for targeting each segment:

 

 

-

Speciality Food Stores – While mainstream supermarkets still account for more than two-third of speciality food sales, their shares has been steadily slipping over the past three years. This segment leaped by 42% during the past three years according to Speciality Food Industry 2014 Report. This group of retailers, such as WholeFoods, are continually looking for new products and tend to cater to higher income consumers. We believe this area is easier to access because of their willingness to carry new products in order to meet the ever increasing demand of the consuming public for hot sauce. Source: http://www.specialtyfood.com/knowledge-center/industry-info/state-industry-14/)

 

 

 
 

-

Large Grocery Stores – Other avenues to sell our product are growing rapidly. However, the large stores still account for two-thirds of speciality foods sold in the USA. We feel that thorough and persistent efforts we will be able to generate sales through major names grocery stores such as Wal-Mart, Kroger’s, Costco and Target. To this means we intend to interview distributors to assist us in marketing and distribution of our hot sauce. Key to the sale and distribution of our product through this channel is the constant care and feeding of the buyers for each of the organizations.

 

 

 
 

-

Restaurants and non-traditional outlets – While current brand names carry more weight in the marketplace, there is a rising demand from the food-service sector to meet consumer demand. We intend to access restaurants, fast food outlets, caterers and street venders to try our product by offering free samples.

 

 
23

 

 

-

Industry Analysis

 

 

 
 

 

The Industry manufactures spicy sauces made from chili peppers and other ingredients. These products are then packaged and sold directly to consumers or distributed to grocery, wholesales, supermarkets, specialty food stores and food-service contractors. With highly diverse product range, the industry has managed to remain resilient despite changing consumer trends, falling incomes and the economic recession. Major players have responded to these obstacles with timely and new product introductions and promotional strategies. Smaller players are gaining a larger share of the market by offering unique and clever new products with non-traditional ingredients.

 

 

 
 

 

The Hot Sauce Production industry continues to grow aided by positive demographic consumption trends, growing number of hot sauce producers and brands, rising demand from the food-service sector and growing supermarket shelf space for hot sauce in line with customer demand. (Source: IBIS World “Hot Sauce Production in the US: Market Research Report” – http://www.ibisworld.com/industry/hot-sauce-production.html )

 

Competition

 

The hot sauce market is dominated by the following producers;

 

 

-

Tabasco

-

19% market share with estimated sales of $200 million

 

 

 
 

-

Frank’s Red Hot

-

12.3% market share with estimated sales of $130 million

 

 

 
 

-

Sriracha Asian-Style Sauce

-

4.2% market share with estimated sales of $45 million

 

 

 
 

-

Texas Pete Hot Sauce

-

3.3% market share

 

 

 
 

-

Original Louisiana Hot Sauce

-

3.1% market share

 

 

 
 

-

(Source: Bloomberg TV-see link below)

 

 

 
 

-

( http://www.bloomberg.com/video/the-five-best-selling-hot-sauces-ZgWBQ1mi29rGYoYgOA.html) .

 

Other national brand companies include; Tapatio, Cholula, Valentina Hot-Sauce and Dave’s Gourmet Hot Sauce. According to IBS there are over 153 sauce companies in the United States. With sales, exceeding $1 billion. (Source: IBIS World “Hot Sauce Production in the US: Market Research Report” – http://www.ibisworld.com/industry/hot-sauce-production.html )

 

Strategy and Implementation Summary

 

The primary strategies of FWF Holdings Inc. are:

 

 

-

Sell niche high end product, with emphasis on its fruit based ingredients to Specialty food outlets, larger grocery retailers, restaurants and other food-sector outlets.

 

 

 
 

-

Attend Food Trade Shows and display our product at those shows, allowing us to access our target market retailers and consumers at the same time. During the next 12 months, FWF Holdings Inc. intends to attend (assuming we are successful in raising funding) at least three trade food shows; The Fancy Food Show held twice a year (winter held in San Francisco in January and the summer show in New York in June). The other trade show we hope to attend is the National Fiery Foods & Barbecue Show; usually held in March in Albuquerque. Last year the event had over 200 exhibitors and all-time record crowd of 20,500 trade and general public attendees from all over the world according to their news releases (Source: http://www.fieryfoodsshow.com ). Other trade shows available would include the Huston Hot Sauce Festival, Zest Fest and Pinellas Pepper Fest. Sell online through our web-site.

 

 
24

 

Competitive Edge

 

The primary competitive edge of Fruit On Fire, Inc. will be the taste of our blend fruit and spice based proposed hot sauce product.

 

Online Marketing Strategy

 

Our online marketing strategy will rely on our website to provide product information and answer the questions customers have about our product. The following are strategies we will use:

 

 

-

Search Engines – we will hire a firm that will assist in Search Engine Optimization (“SOE”). This will assist in FWF to achieve a top search engine ranking, get targeted traffic to its website and increase business leads.

 

 

 
 

-

Social Media – we intend to have a presence with a Facebook page, Blog and Twitter Account.

 

Research and Development Expenditures

 

We have not incurred any research or development expenditures since our incorporation

 

Patent and Trademarks

 

We do not own, either legally or beneficially, any patent or trademark

 

Bankruptcy or Similar Proceedings

 

There has been no bankruptcy, receivership or similar proceedings

 

Compliance with Government Regulations

 

We will be required to comply with all regulations, rules and directives of government authorities agencies to the construction and operation of any facility in any jurisdiction which we would conduct activities. In general, the operation of our business is subject to the Food and Drug Administration. All food items offered for sale or sample must comply with conditions under which it is prepared, stored and displayed and all other sanitary conditions related to food items must meet the food code.

 

LEGAL PROCEEDINGS

 

We are not a party to any material legal proceedings nor are we aware of any legal proceedings pending or threatened against us.

 

 
25

 

Facilities

 

We currently are supplied office space free of rent from our sole Director and President and Chief Executive Officer, Nami Shams, and do not own or rent any physical property, and do not own or rent any real property. Our current business address is Stiftstr 32, 20099 Hamburg, Germany. Our telephone number is (800) 873-0694. Our agent for service in the USA is State Agent & Transfer Syndicate, Inc., 112 North Curry Street, Carson City, Nevada, 89703. Their telephone number is (775) 882-1013.

 

Management believes that current arrangement is sufficient for its needs at this time. The company intends to lease its own offices and production facilities at such time as it has sufficient financing to do so. Management believes the current premises are sufficient for its needs at this time.

 

Employees and Employment Agreements

 

We have no employees as of the date of this prospectus. We have no employment or other agreement with Mr. Shams our President and Chief Executive Officer or any other person. Mr. Shams currently devotes approximately fifteen hours per week to company matters and after receiving funding, he plans to devote as much time as the Board of Directors determines is necessary to manage the affairs of the company. We anticipate we will conduct our business largely through consultants.

 

Available Information

 

We have not previously been required to comply with the reporting requirements of the Securities Exchange Act. We have filed with the SEC a registration statement on Form S-1 to register the securities offered by this prospectus. For future information about us and the securities offered under this prospectus, you may refer to the registration statement and to the exhibits filed as part of the registration statement. In addition, after the effective date of this prospectus, we will be required to file annual, quarterly and current reports, or other information with the SEC as proved by the Securities Exchange Act. You may read and copy any reports, statements or other information we file at the SEC’s public reference facility maintained by the SEC at 100F Street, N.E., Washington, D.C. 20549. You can request copies of these documents upon payment of a duplicating fee, by writing the SEC. Please call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference. Our SEC filings are also available to the public through the SEC Internet site at www.sec.gov.

 

FINANCIAL STATEMENTS

 

The financial statements of FWF Holdings Inc. for the fiscal years ended July 31, 2014 and related notes, included in this prospectus have been audited by PLS CPA, A Professional Corporation, 4725 Mercury Street, Suite 210, California 92111 and have been so included in reliance upon the opinion of such accountants given upon their authority as an expert in auditing and accounting.

 

 
26

 

PLS CPA, A PROFESSIONAL CORPORATION

 4725 MERCURY STREET #210  SAN DIEGO  CALIFORNIA 92111

 TELEPHONE (858)722-5953  FAX (858) 761-0341  FAX (858) 764-5480

 E-MAIL changgpark@gmail.com

 

Report of Independent Registered Public Accounting Firm

 

To the Board of Directors and Stockholders

 

FWF Holdings, Inc.

 

(A Development Stage Company)

 

We have audited the accompanying balance sheet of FWF Holdings, Inc. (A Development Stage “Company”) as of July 31, 2014 and the related financial statements of operations, changes in shareholder’s equity and cash flows for the period July 22, 2014 (inception) to July 31, 2014. These financial statements are the responsibility of the Company’s management.

 

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of FWF Holdings, Inc. as of July 31, 2014, and the results of its operation and its cash flows for the period from July 22, 2014 (inception) to July 31, 2014 in conformity with U.S. generally accepted accounting principles.

 

The financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company’s losses from operations raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

/s/ PLS CPA

 

PLS CPA, A Professional Corp.

 

September 30, 2014 

San Diego, CA. 92111  

  

Registered with the Public Company Accounting Oversight Board

  

 
27

 

Financial Statements

 

FWF HOLDINGS INC.

(A Development Stage Company)

 

FINANCIAL STATEMENTS

(Audited)

July 31, 2014

 

BALANCE SHEET

 

29

 
     

STATEMENT OF OPERATIONS

   

30

 
     

STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)

   

31

 
     

STATEMENT OF CASH FLOWS

   

32

 
     

NOTES TO FINANCIAL STATEMENTS

   

33

 

 

 
28

 

FWF HOLDINGS, INC.

(A Development Stage Company)

 

BALANCE SHEET

 

    July 31, 2014  
     

ASSETS

CURRENT ASSETS

   

Cash

 

$

9,990

 
       

TOTAL CURRENT ASSETS

 

$

9,990

 
     

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

       

Due to related party (Note 4)

 

$

2,194

 
       

TOTAL CURRENT LIABILITIES

   

2,194

 
       

STOCKHOLDERS’ EQUITY

       

Capital stock (Note 3)

       

Authorized

       

75,000,000 shares of common stock, $0.001 par value,

       

Issued and outstanding

       

10,000,000 shares of common stock

   

10,000

 

Deficit accumulated during the development stage

 

(2,204

)

       

TOTAL STOCKHOLDERS’ EQUITY

   

7,796

 
       

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

9,990

 

 

Going Concern (Note 1)

 

The accompanying notes are an integral part of these financial statements.

 

 
29

 

FWF HOLDINGS, INC.

(A Development Stage Company)

 

STATEMENT OF OPERATIONS

 

    Results of operations from inception (July 22, 2014) to July 31, 2014  
     

REVENUE

 

$

-

 
       

EXPENSES

       

Office and general

 

$

1,204

 

Professional fees

   

1,000

 
       

TOTAL EXPENSES

 

(2,204

)

       

NET LOSS

 

(2,204

)

       

BASIC NET LOSS PER COMMON SHARE

 

$

(0.00

)

       

WEIGHTED AVERAGE NUMBER OF BASIC COMMON SHARES O UTSTANDING

   

10,000,000

 

 

The accompanying notes are an integral part of these financial statements.

 

 
30

 

FWF HOLDINGS, INC. 

(A Development Stage Company)

 

STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE PERIOD FROM JULY 22, 2014 (INCEPTION) TO JULY 31, 2014

 

 

  Common Stock     Additional     Share     Deficit Accumulated During the      

 

  Number of
shares
    Amount    

Paid-in
Capital

    Subscription Receivable     Development Stage     Total  

 

                       

Common shares issued for cash – at $0.001 per share, July 30, 2014

 

10,000,000

   

$

10,000

   

$

-

   

$

-

   

$

-

   

$

10,000

 
                                               

Net loss for the year ended July 31, 2014

   

-

     

-

     

-

     

-

   

(2,204

)

 

(2,204

)

                                               

Balance, July 31, 2014

   

10,00,000

   

$

10,000

   

$

-

   

$

-

   

$

(2,204

)

 

$

7,796

 

 

The accompanying notes are an integral part of these financial statements.

 

 
31

 

FWF HOLDINGS, INC.

(A Development Stage Company)

 

STATEMENT OF CASH FLOWS

 

    From July 22, 2014 (date of inception) to July 31, 2014  
     

OPERATING ACTIVITIES

   

Net loss for the period

 

$

(2,204

)

Adjustments to reconcile net loss to net cash used in operating activities:

       

Changes in operating assets and liabilities:

       

Increase (decrease) in Accounts payables and accrued liabilities

   

-

 
       

NET CASH USED IN OPERATING ACTIVITIES

 

(2,204

)

       

CASH FLOW FROM INVESTING ACTIVITIES

   

-

 
       

CASH FLOW FROM FINANCING ACTIVITIES

       

Proceeds on sale of common stock

   

10,000

 

Proceeds from related parties

   

2,194

 
       

NET CASH PROVIDED BY FINANCING ACTIVITIES

   

12,194

 
       

NET INCREASE (DECREASE) IN CASH

   

9,990

 
       

CASH, BEGINNING

   

-

 
       

CASH, ENDING

 

$

9,990

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION AND NONCASH FINANCING ACTIVITIES;

 

 

 

 

 

Cash paid during the period for:

 

 

Interest

$

-

 

 

 

Income taxes

$

-

 

The accompanying notes are an integral part of these financial statements.

 

 
32

 

NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION

 

FWF HOLDINGS, INC. was incorporated in the State of Nevada as a for-profit Company on July 22, 2014 and established a fiscal year end of July 31. The Company is a development-stage Company organized to enter into the commercial production and distribution of the hot sauce business.

 

Going concern

 

To date the Company has generated no revenues from its business operations and has incurred operating losses since inception of $2,204. As at July 31, 2014, the Company has a working capital of $7,796. The Company requires additional funding to meet its ongoing obligations and to fund anticipated operating losses. The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company’s ability to continue as a going concern. The Company intends to continue to fund its business by way of private placements and advances from related parties as may be required. As of July 31, 2014, the Company has issued 10,000,000 founders shares at $0.001 per share for net proceeds of $10,000 to the Company. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The financial statements present the balance sheet, statements of operations, stockholders’ equity (deficit) and cash flows of the Company. These financial statements are presented in the United States dollars and have been prepared in accordance with accounting principles generally accepted in the United States.

 

Segmented Reporting

 

FSAB ASC 280, “Disclosure about Segments of an Enterprise and Related Information”, changed the way public companies report information about segments of their business in their quarterly reports issued to shareholders. It also requires entity-wide disclosures about the products and services the entity provides, the material countries in which it holds assets and reports revenues and its major customers.

 

Comprehensive Loss

 

“Reporting Comprehensive Income,” establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at July 31, 2014, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.

 

Use of Estimates and Assumptions

 

Preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Accordingly, actual results could differ from those estimates.

 

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

 

Financial Instruments

 

All significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practical the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.

 

 
33

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

Loss per Common Share

 

The basic earnings (loss) per share is calculated by dividing the Company’s net income available to common shareholders by the weighted average number of common shares during the year. The diluted earnings (loss) per share is calculated by dividing the Company’s net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Diluted earnings (loss) per share are the same as basic earnings (loss) per share due to the lack of dilutive items in the Company.

 

Income Taxes

 

The Company follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances and tax loss carry-forwards. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.

 

Stock-based Compensation

 

The Company follows ASC 718-10, "Stock Compensation", which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 is a revision to SFAS No. 123, "Accounting for Stock-Based Compensation," and supersedes Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees," and its related implementation guidance. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. The Company has not adopted a stock option plan and has not granted any stock options. As at July 31, 2014 the Company had not adopted a stock option plan nor had it granted any stock options. Accordingly no stock-based compensation has been recorded to date.

 

Development Stage Company

 

The Company is a development stage company, as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915. The Company’s planned principal operations have not fully commenced. Organizational and offering costs are, and will be, expensed as and when they are incurred.

 

Management plans to seek funding from its shareholders and other qualified investors to pursue its business plan.

 

Recent Accounting Pronouncements

 

FASB ASC 105-10, Generally Accepted Accounting Principles (Prior authoritative literature: FASB SFAS No. 165, Subsequent Events (“SFAS 165”), issued May 28, 2009), which establishes general standards of accounting for, and disclosure of, events that occur after the balance sheet date but before financial statements are issued or are available to be issued. FASB ASC 105-10 (SFAS 165) is effective for interim or annual financial periods ending after June 15, 2009. The adoption of FASB ASC 105-10 (SFAS 165) did not have a material effect on the company’s financial position or results of operations.

 

 
34

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

FASB ASC 105-10-65, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles (Prior authoritative literature: FASB SFAS No. 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles (“SFAS 168”, issued June 2009), establishes the FASB Accounting Standards Codification (the “Codification”) as the single source of authoritative nongovernmental U.S. GAAP. The Codification

 

is effective for interim and annual periods ending after September 15, 2009. The adoption of FASB ASC 105-10-65 (SFAS 168) did not have a material impact on the Company’s financial statements

 

In September 2009, the FASB issued guidance now codified as ASC 105, Generally Accepted Accounting Principles as the single source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. GAAP, aside from those issued by the SEC. ASC 105 does not change current U.S. GAAP, but is intended to simplify user access to all authoritative U.S. GAAP by providing all authoritative literature related to a particular topic in one place. The adoption of ASC 105 did not have a material impact on the Company’s financial statements, but did eliminate all references to pre-codification standards.

 

On February 24, 2010, the FASB issued guidance in the "Subsequent Events" topic of the FASC to provide updates including: (1) requiring the company to evaluate subsequent events through the date in which the financial statements are issued; (2) amending the glossary of the "Subsequent Events" topic to include the definition of "SEC filer" and exclude the definition of "Public entity"; and (3) eliminating the requirement to disclose the date through which subsequent events have been evaluated. This guidance was prospectively effective upon issuance. The adoption of this guidance did not impact the Company's results of operations of financial condition.

 

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

 

NOTE 3 – CAPITAL STOCK

 

The Company’s capitalization is 75,000,000 common shares with a par value of $0.001 per share. No preferred shares have been authorized or issued.

 

As of July 31, 2014, the Company has not granted any stock options and has not recorded any stock-based compensation.

 

On July 22, 2014, the Company issued 10,000,000 common shares at $0.001 per share to the sole director and President of the Company for cash proceeds of $10,000.

 

NOTE 4 – RELATED PARTY TRANSACTIONS

 

As of July 31, 2014, the Company has received $2,194. The amounts due to the related party are unsecured and non- interest-bearing with no set terms of repayment.

 

NOTE 5 – INCOME TAXES

 

Income taxes are provided in accordance with ASC 740 Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax asset and liabilities.

 

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

 

No provision was made for Federal Income tax.

 

 
35

 

NOTE 5 – INCOME TAXES (continued)

 

The Company did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. The Company provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carry forwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carry forward period.

 

NOTE 6 – SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events from the balance sheet date through September 30, 2014 the date the financial statements were available to be issued. Except the above disclosure, the Company has determined that there are no further events to disclose.

 

 
36

 

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

In section of the Registration Statement management discusses and analyzes forward looking statements that reflect the views of management in respect to the Company’s future financial performance. Words used in these forward-looking statements are words that refer to future rustic events and are not based on substantial evidence. These words could be words like believe, expect, estimate, anticipate and project these are the words management believes project to forward looking financial performance and statements but are not limited to these words only. A potential investor cannot be completely certain that these statements will be accurate.

 

Results of Operations

 

From the date of the Company’s inception July 22, 2014 to July 31, 2014, we have not started our plan of operation and have not generated any revenue. The Company had cash assets of $9,990 and liabilities of $2,194. For the period ended July 31, 2014, the company had expenses related to start-up costs categorized as Office and general expense of $1,204 and Professional fees of $1,000 resulting in a net loss of $2,204.

 

Liquidity and Capital Resources

 

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. With the exception of cash advances from our sole Officer and Director, 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.

 

FWF Holdings Inc. has no substantial revenues anticipated for the next twelve months. Mr. Nami Shams has advanced to the Company $12,194 comprised of $10,000 for sale of founders stock and $2,194 in loans. The founders stock is priced at $0.001 and Mr. Shams has 10,000,000 shares and is the holder of the majority of our common stock. He has verbally agreed to advance more funds to the company if needed. For the period ended July 31, 2014, the Company has $9,990 in cash.

 

The Company is attempting to raise capital by shares sold at the end of this offering. There can be no guarantee that if we are successful in this offering that we will be able to sell any of our common stock. Any capital raised by the company through this registration statement will be applied by the Company to actions set forth in the Use Of Proceeds on page 13. Should the company be unsuccessful in selling all its registered securities we will attempt to use the capital from this offering as per usages set out in the use of proceeds as per percentages.

 

Plan of Operations

 

During the next 12 months, FWF Holdings Inc. intends to continue its ongoing research by attending three trade food shows; The Fancy Food Show held twice a year (winter held in San Francisco in January and the summer show in New York in June). The other trade show we hope to attend is the National Fiery Foods & Barbecue Show; usually held in March in Albuquerque. We also intend to develop a unique label and packaging for our proposed hot sauce product. We will also source third-party companies to produce and ship out our product; setting up the company’s website and begin to market and sell the Fruit With Fire Hot Sauce product. We have not yet commenced any sales or marketing activities.

 

Over the 12 month period starting upon the effective date of this registration statement, our company must raise capital to introduce its planned product and start sales. We intend to market our product through wholesales, food trade shows and on the Internet. We have three planned phases to our operations over the next twelve months. The business activities and related expenses in each phase will be affected by the proceeds from the sales of shares in this offering received by the Company as discussed below.

 

 
37

 

The first phase of our planned operations will be to source out potential co-packing companies and manufactures to establish a hot sauce product. We will secure the services of contractors to develop our logo, label and develop our website. Estimated cost of logo design and development of the website is $12,000. The Company anticipates the first phase of our planned operations to be completed within 90 days of this offering.

 

The second phase of our planned operations, we intend to produce our product with inventory ready for marketing samples and for product sale. Estimate cost for production of our product is $46,000. We will engage a Search Engine Optimization firm that will assist us, not only identifying to successfully market our product over the internet but to ensure a high presence and to achieve a high search engine ranking. We also intend to do some traditional print advertising. Estimated annual cost for these services is $26,500. We expect to have the second phase completed within 180 days of this offering.

 

The third phase of our planned operations will be to launch our website and begin our sales and marketing campaign. Estimated cost for sales and marketing campaign and attending/exhibiting in trade shows as mentioned in phase 2 is $54,000. We expect to have the third phase completed with 280 days of this offering. With anticipate generating revenues within twelve months of this offering. Total estimate expenditures for the next twelve months will be $150,000 including expenses of issuance and distribution of $11,500.

 

If we received only nominal funds from this offering, we plan to operate on a limited basis for the limited purpose of meeting our reporting obligations to the Securities and Exchange Commission (“SEC”). The plans of operation for reduced funding are as follows:

 

In the event the Company sells 25% of the shares offered, the Company intends to scale back its planned meetings with co-packing and manufactures to $2,500 (reduction in travel budget on Use of Proceeds), reduce logo and website design to $4,000. A website site will be functional within 120 days of funding but scaled back due to the reduced funding. Product production will be scaled back to $5,500 with the majority of the product produced used for marketing. Advertising and Trade show costs will be reduced to $10,000. Presentation materials will be reduced to $2,500; office supplies and telephone to $1,500. The Company will also maintain its filing and reporting obligations with the SEC. (see Use of Proceeds page 15)

 

In the event the Company sells 50% of the shares offered, the Company intends to scale back its planned meetings with co-packing and manufactures to $5,000 (reduction in travel budget on Use of Proceeds), reduce logo and website design to $8,000. A website site will be functional within 120 days of funding but scaled back due to the reduced funding. Product production will be scaled back to $11,000 split between marketing (free samples) and product sale. Advertising and Trade show costs will be reduced to $32,500. Presentation materials will be reduced to $4,000; office supplies and telephone to $3,000. The Company will also maintain its filing and reporting obligations with the SEC. (see Use of Proceeds page 15)

 

In the event the Company sells 75% of the shares offered, the Company intends to scale back its planned meetings with co-packing and manufactures to $5,000 (reduction in travel budget on Use of Proceeds), reduce logo and website design to $11,000. A website site will be functional within 120 days of funding. Product production will be scaled back to $30,000 split between marketing (free samples) and product sale. Advertising and Trade show costs will be reduced to $42,000. Presentation materials will be reduced to $8,000; office supplies and telephone to $5,000. The Company will also maintain its filing and reporting obligations with the SEC. (see Use of Proceeds pages 15).

 

Changes in and Disagreements with Accountants on Accounting and Results of Operations

 

We have no changes in or disagreements with our independent registered accountant.

 

 
38

 

DIRECTORS, EXECUTIVE OFFICERS, PROMOTER AND CONTROL PERSONS

 

The names, ages and titles of our executive officers and directors are as follows:

 

Name and address of Executive Officer and/or Director

 

Age

 

Position

 

 

 

 

 

Nami Shams

Stiftstr 32, 20099

Hamburg, Germany

 

32

 

President and Chief Executive Officer, Secretary Treasure and Director

 

Nami Shams Biography

 

Prior to January 2010, Nami Shams was General Manager for an International trading company, East Corporation Asia located in Shanghai, China. He also worked as Organization Director for an Insurance company at MEG AG, located in Munich, Hamburg and Berlin Germany.

 

Since January 2010 Mr. Shams has been sales manager for AXA-PSV AG, an Insurance company located in Hamburg Germany.

 

Mr. Shams obtained his Bachelor of Business Administration from Fudan University in Shanghai, China in 2008.

 

Given Mr. Sham’s managerial and sales experience in Europe and China, the company believes that Mr. Sham’s background and experience make him well suited to serve as our sole officer and director.

 

Term of Office

 

Each of the directors is appointed to hold office until the next annual meeting of our stockholders or until his respective successor is elected and qualified, or until he resigns or is removed in accordance with the provisions of the Nevada Revised Statutes. Our officers are appointed by our Board of Directors and hold office until removed by the Board or until their resignation.

 

Director Independence

 

Our Board of Directors is currently composed of one member, Nami Shams, who does not qualify as an independent director in accordance with the published listing requirements of the NASDAQ Global Market. The NASDAQ independence definition includes a series of objectives test, such as that the director is not and has not been for a least three years, one of our employees and that neither the director, nor any of his family members has engaged in various types of business dealings with us. In addition, our Board of Directors has not made a subjective determination as to each director hat no relationships exist which, in the opinion of our Board of Directors, would interfere with the exercise of independent judgement in carrying out the responsibilities of a director, though such subjective determination is required by the NASDAQ rules. Had our Board of Directors made these determinations our Board of Directors would have reviewed and discussed information provided by the directors and us with regard to each director’s business and personal activities and relationships as they may relate to us and our management.

 

 
39

 

Significant Employees

 

We have not employees. Our, President and Chief Executive Officer and Secretary, Nami Shams, is an independent contractor to us and currently devotes approximately fifteen hours per week to company matters. After receiving funding pursuant to our business plan Mr. Shams intends to devote as much time as the Board of Directors deem necessary to management the affairs of the company.

 

Mr. Shams has not been the subject of any order, judgement, or decree of any court of competent jurisdiction, or any regulatory agency permanently or temporarily enjoining, barring, suspending or otherwise limited him from acting as an investment advisor, underwriter, broker or dealer in the securities industry, or as an affiliated person, director or employee of an investment company, bank, savings and loan association, or insurance company or from engaging in or continuing any conduct or practice in connection with any such activity or in connection with the purchase or sale of securities.

 

Mr. Shams has not been convicted in any criminal proceeding (excluding traffic violations) nor is he subject of any currently pending criminal proceeds.

 

We intend to conduct our business through agreements with consultants and arms-length third parties. Currently, we have no formal consulting agreements.

 

Management/Director Compensation

 

There are no current employment agreements between the company and its officers. Mr. Shams currently devotes approximately fifteen hours per week to manage the affairs of the company. He agreed to work with no remuneration until such time as the company receives sufficient revenues necessary to provide management salaries. At this time, we cannot accurately estimate when sufficient revenues will occur to implement this compensation, or what the amount of the compensation will be.

 

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 offered hereby was employed on a contingency basis, or had, or is to receive, in connection with such offering, a substantial interest, direct or indirect, in our Company, nor was any such person connected with our Company as a promoter, managing or principal underwriter, voting trustee, director, officer, or employee.

 

Executive Compensation

 

FWF Holdings Inc. has made no provisions for paying cash or non-cash compensation to its sole officer and director. No salaries are being paid at the present time, and none will be paid unless and until our operations generate sufficient cash flows and then, the Company may enter into employment agreements with its sole officer and directors

 

The table below summarizes all compensation awarded to, earned by, or paid to our named executive officer for all services rendered in all capacities to us for the period from inception (July 22, 2014) through July 31, 2014:

 

SUMMARY COMPENSATION TABLE

 

Name and principal position

  Year     Salary
($)
    Bonus
($)
    Stock Awards
($)
    Option Awards
($)
    Non-Equity Incentive Plan Compensation ($)     Nonqualified Deferred Compensation Earnings
($)
    All Other Compensation ($)     Total
($)
 

Nami Shams

 

2014

   

0

   

0

   

0

   

0

   

0

   

0

   

0

   

0

 

President

 

2014

             

0

     

0

     

0

     

0

     

0

     

0

     

0

 

 

We did not pay any salaries in 2014. We do not anticipate beginning to pay salaries until we have adequate funds to do so. There are no other stock option plans, retirement, pension, or profit sharing plans for the benefit of our officer and director other than as described herein.

 

 
40

 

Outstanding Equity Awards at Fiscal Year-End

 

The table below summarizes all unexercised options, stock that has not vested, and equity incentive plan awards for each named executive officer as of July 31, 2014:

 

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-ENDOPTION AWARDS STOCK AWARDS

 

Name (a)

  Number of Securities Underlying Unexercised Options (#) Exercisable     Number of Securities Underlying Unexercised Options (#) Unexercisable     Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)     Option Exercise Price ($) (e)     Option Expiration Date (f)     Number of Shares or Units of Stock That Have Not Vested (#)     Market Value of Shares or Units of Stock That Have Not Vested ($)     Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)     Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (#)  

Nami Shams

 

0

   

0

   

0

   

0

   

0

   

0

   

0

   

0

   

0

 

 

There were no grants of stock options since inception to the date of this Prospectus.

 

We do not have any long-term incentive plans that provide compensation intended to serve as incentive for performance.

 

The Board of Directors of FWF Holdings Inc. has not adopted a stock option plan. The Company has no plans to adopt it but may choose to do so in the future. If such a plan is adopted, this may be administered by the board or a committee appointed by the board (the “Committee”). The committee would have the power to modify, extend or renew outstanding options and to authorize the grant of new options in substitution therefore, provided that any such action may not impair any rights under any option previously granted. FWF Holdings Inc. may develop an incentive based stock option plan for its officers and directors and may reserve up to 10% of its outstanding shares of common stock for that purpose.

 

Stock Awards Plan

 

The Company has not adopted a Stock Awards Plan, but may do so in the future. The terms of any such plan have not been determined.

 

Director Compensation

 

The table below summarizes all compensation awarded to, earned by, or paid to our directors for all services rendered in all capacities to us for the period from inception (July 22, 2014) through July 31, 2014.

 

 
41

 

DIRECTORS COMPENSATION

 

Name

  Fees Earned or Paid in Cash
($)
    Stock Awards
($)
    Option Awards
($)
    Non-Equity Incentive Plan Compensation ($)     Change in Pension Value and Nonqualified Deferred Compensation Earnings
($)
    All Other Compensation ($)     Total
($)
 

Nami Shams

 

0

   

0

   

0

   

0

   

0

   

0

   

0

 

 

At this time, FWF Holdings Inc. has not entered into any employment agreements with its sole officer and director. If there is sufficient cash flow available from our future operations, the company may enter into employment agreements with our sole officer and director or future key staff members.

 

Security Ownership of Certain Beneficial Owners and Management

 

The following table sets forth, as of the date of this prospectus, the total number of shares owned beneficially by our sole officer and director, and key employees, individually and as a group, and the present owners of 5% or more of our total outstanding shares. The table also reflects what this ownership will be assuming completion of the sale of all shares in this offering. The stockholder listed below has direct ownership of her shares and possesses sole voting and dispositive power with respect to the shares .

 

Title of class

 

Name and Address

Beneficial Owner [1]

  Amount and nature of beneficial ownership     Percent of Class     Percentage of Ownership Assuming all of the Shares are Sold     Percentage of Ownership Assuming 75% of the Shares are Sold     Percentage of Ownership Assuming 50% of the Shares are Sold     Percentage of Ownership Assuming 25% of the Shares are Sold  

Common Stock

 

Nami Shams

Stiftstr 32, 20099 Hamburg, Germany

 

10,000,000

   

100

%

 

66.7

%

 

72.7

%

 

80.0

%

 

88.9

%

All Officers and Directors as a Group (1 person)

   

10,000,000

     

100

%

   

66.7

%

   

72.7

%

   

80.0

%

   

88.9

%

 

The person named above may be deemed to be a “parent” and “promoter” of our Company, within the meaning of such terms under the Securities Act of 1933, as amended, by virtue of his direct and indirect stock holdings. Mr. Shams is the only “promoter” of our Company.

 

Our sole officer and director will continue to own the majority of our common stock after the offering, regardless of the number of shares sold. Since he will continue to control the Company after the offering, investors will be unable to change the course of the operations. Thus, the shares we are offering lack the value normally attributable to voting rights. This could result in a reduction in value of the shares you own because of their ineffective voting power. None of our common stock is subject to outstanding options, warrants, or securities convertible into common stock.

 

The Company would consider bringing on addition directors that would be deemed independent under Item 407(a) of regulation S-K once the Company has more than one shareholder and is a reporting issuer under the 1934 Securities & Exchange Act as amended. As the Company currently has only one shareholder who is the Company’s director no value would be gained on increasing the board.

 

 
42

 

Changes in Control

 

We are not aware of any arrangement that might result in a change in control in the future.

 

Certain Relationships and Related Transactions

 

On July 22, 2014 we issued a total of 10,000,000 shares of common stock to Mr. Nami Shams, our sole officer and director, for total cash consideration of $10,000. The Company considered these securities as “Founders” shares. Mr. Nami Shams purchased his shares at par value being $0.001 per share, considerably lower than the $0.03 cents per share in this offering. This offer and sale was made pursuant to the exemption from registration afforded by Section 4(2)-Exempted Transactions of the Securities Act of 1933 transactions by an issuer not involving any public offering.

 

Our sole officer and director provides office space at no charge to the Company. As of July 31, 2014, Mr. Nami Shams had advanced funds to the Company in the amount of $2,194. The amount due to Mr. Shams is unsecured, non-interest bearing, payable on demand with no written terms of repayment.

 

Disclosure of Commission Position on Indemnification for Securities Act Liabilities

 

Our director and officer are indemnified as provided by the Nevada Statutes and our Bylaws. We have agreed to indemnify each of our directors and certain officers against certain liabilities, including liabilities under the Securities Act of 1933. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to our directors, officers and controlling persons pursuant to the provisions described above, 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 of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than our payment of expenses incurred or paid by our director, officer or controlling person in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person 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 by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

 

We have been advised that in the opinion of the Securities and Exchange Commission indemnification for liabilities arising under the Securities Act 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 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 legal counsel the matter has been settled by controlling precedent, submit the question of whether such indemnification is against public policy to a court of appropriate jurisdiction. We will then be governed by the court’s decision.

 

 
43

 

PART II - INFORMATION NOT REQUIRED IN THE PROSPECTUS

 

Other Expenses of Issuance and Distribution

 

The estimated costs of this offering are as follows:

 

Securities and Exchange Commission registration fee

 

$

19.32

 

Legal and Accounting fees and expenses

 

$

9,000.00

 

Printing costs

 

$

500.00

 

Transfer Agent

 

$

2,000.00

 

Total

 

$

11,519.32

 

 

All amounts are estimates other than the Commission’s registration fee. FWF Holdings Inc. is paying all expenses of the offering listed above.

 

Indemnification of Directors and Officers

 

Our articles of incorporation and Bylaws provide that we will indemnify an officer, director, or former officer or director, to the full extent permitted by law. We have been advised that in the opinion of the Securities and Exchange Commission indemnification for liabilities arising under the Securities Act of 1933 is against public policy as expressed in the Securities Act of 1933, and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities 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 legal counsel the matter has been settled by controlling precedent, submit the question of whether such indemnification is against public policy to a court of appropriate jurisdiction. We will then be governed by the court's decision.

 

Recent Sales of Unregistered Securities

 

FWF Holdings Inc.is authorized to issue up to 75,000,000 shares of common stock with a par value of $0.001. The Company is not listed for trading on any securities exchange in the United States and there has been no active market in the United States or elsewhere for the common shares.

 

Since inception, the Company has sold the following securities, which were not registered under the Securities Act of 1933, as amended:

 

On July 22, 2014 we have subscribed 10,000,000 common shares to our sole officer and director, Mr. Nami Shams for total consideration of $10,000, or $0.001 per share. The offer and sale was made pursuant to the exemption from registration afforded by Rule 903 (b)(3) of the Regulation S, promulgated under the Securities Act of 1933 as amended (the “Securities Act”), on the basis that the securities were sold outside of US, to a non-US person, with no directed selling efforts in the US, and where the offering restrictions were implemented.

 

We shall report the use of proceeds on our first periodic report filed pursuant to sections 13(a) and 15(d) of the Exchange Act after the effective date of this Registration Statement and thereafter on each of our subsequent periodic reports through the later of disclosure of the application of all the offering proceeds, or disclosure of the termination of this offering.

 

 
44

 

EXHIBITS

 

EXHIBIT NUMBER

 

DESCRIPTION

 

 

 

3.1

 

Articles of Incorporation

 

 

 

3.2

 

By-Laws

 

 

 

3.3

 

Subscription Agreement

 

 

 

5.1

 

Legal Opinion with Consent

 

 

 

23.1

 

Consent of Accountant

 

 
45

 

UNDERTAKINGS

 

The undersigned registrant hereby undertakes:

 

(a)(1)To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

 

i. To 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) 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;

 

Provided however, that:

 

A. Paragraphs (a) (1) (i) and (a) (1) (ii) of this section do not apply if the registration statement is on Form S-8, and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 15 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement; and

 

B. Paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if the registration statement is on Form S-3 or Form F-3 and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of 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. If the registrant is a foreign private issuer, to file a post-effective amendment to the registration statement to include any financial statements required by Item 8.A. of Form 20-F at the start of any delayed offering or throughout a continuous offering. Financial statements and information otherwise required by Section 10(a) (3) of the Act need not be furnished, provided that the registrant includes in the prospectus, by means of a post-effective amendment, financial statements required pursuant to this paragraph (a) (4) and other information necessary to ensure that all other information in the prospectus is at least as current as the date of those financial statements. Notwithstanding the foregoing, with respect to registration statements on Form F-3, a post-effective amendment need not be filed to include financial statements and information required by Section 10(a)(3) of the Act or Rule 3-19 of this chapter if such financial statements and information are contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the Form F-3.

 

 
46

 

5. That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:

 

i. If the registrant is relying on Rule 430B:

 

A. Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and

 

B. Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. 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 effective date, 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 effective date; or

 

ii. 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.

 

6. 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 its 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.

 

 
47

 

Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the “Act”) may be permitted to our director, 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 director, officers, or controlling persons in the successful defense of any action, suit or proceeding, is asserted by one of our director, officers, or controlling person sin connection with the securities being registered, we will, unless in the opinion of its 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.

 

 For the purposes of determining liability under the Securities Act for any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, 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.

 

 
48

 

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 the City of Hamburg, Germany, on October 24, 2014.

  

 

FWF Holdings Inc.

 
       
By: /s/ Nami Shams  
   

Nami Shams

 
   

President, Chief Executive Officer,

 
   

Principal Accounting Officer and a director

 

 

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 the City of Hamburg, Germany, on October 24, 2014.

  

 

FWF Holdings Inc.

 
       
By: /s/ Nami Shams  
   

Nami Shams

 
   

President, Chief Executive Officer,

 
   

Principal Accounting Officer and a director

 

 

 

 

49


 

EXHIBIT 3.1

 
1


 

 

 
2

 

 


3


 

EXHIBIT 3.2


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

EXHIBIT 3.3

 

SUBSCRIPTION AGREEMENT

 

FWF Holdings Inc.

112 North Curry Street

Carson City Nevada, 89703

 

A. Instructions.

 

Each person considering subscribing for the Shares should review the following instructions:

 

Subscription Agreement : Please complete, execute and deliver to the Company the enclosed copy of the Subscription Agreement. The Company will review the materials and, if the subscription is accepted, the Company will execute the Subscription Agreement and return one copy of the materials to you for your records.

 

The Company shall have the right to accept or reject any subscription, in whole or in part.

 

An acknowledgment of the acceptance of your subscription will be returned to you promptly after acceptance.

 

Payment : Payment for the amount of the Shares subscribed for shall be made at the time of delivery of the properly executed Subscription Agreement, or such date as the Company shall specify by written notice to subscribers (unless such period is extended in the sole discretion of the President of the Company), of a check or wire transfer of immediately available funds to the Company at the address set forth below or an account specified by the Company. The closing of the transactions contemplated hereby (the "Closing") will be held on 90 days from ___ __, 2014 or such earlier date specified in such notice (unless the closing date is extended in the sole discretion of the President of the Company by up to an additional 90 days). There is no minimum aggregate amount of Shares which must be sold as a condition precedent to the Closing, and the Company may provide for one or more Closings while continuing to offer the Shares that constitute the unsold portion of the Offering.

 

B. Communications.

 

All documents and check should be forwarded to:

 

FWF Holdings Inc.

112 North Curry Street

Carson City Nevada, 89703

 

THE PURCHASE OF SHARES OF FWF HOLDINGS INC. INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN BEAR THE RISK OF THE LOSS OF THEIR ENTIRE INVESTMENT.

 

EVERY POTENTIAL INVESTOR PRIOR TO ANY INVESTMENT OR PURCHASE OF FWF HOLDINGS INC.'S SHARES SHOULD READ THE PROSPECTUS RELATING TO THIS OFFERING.

 

 
1

  

SUBSCRIPTION AGREEMENT SIGNATURE PAGE

 

The undersigned (the "Subscriber") hereby irrevocably subscribes for that number of Shares set forth below, upon and subject to the terms and conditions set forth in the Corporation's Effective Final Prospectus filed on Form S-1 and dated on or around ___ __, 2014.

 

Total Number of Shares to be Acquired: _____________________________

 

Amount to be Paid (price of $0.03 per Share): _____________________________

 

IN WITNESS WHEREOF, the undersigned has executed this Subscription Agreement this ________ of _________________________, 2014.

 

NAME: (PRINT) as it should appear on the Certificate: __________________________

 

ADDRESS: _______________________________________________________________________

 

If Joint Ownership, check one (all parties must sign above):

¨  Joint Tenants with Right of Survivorship

¨  Tenants in Common

¨ Community Property

 

If Fiduciary or a Business or an Organization, check one:

¨ Trust

¨ Estate

¨  Power of Attorney

Name and Type of Business Organization: ____________________________

 

IDENTIFICATION AUTHENTICATION REQUIRED:

 

Below is my (circle one) Social Security # - Passport # - Drivers’ License # - Tax ID # - Other ___________________# ________________________________

 

SIGNATURE: ___________________________________

 

ACCEPTANCE OF SUBSCRIPTION

 

The foregoing Subscription is hereby accepted for and on behalf of FWF Holdings Inc. this _______ day of ____________________________, 2014.

 

By: _________________________________________

Nami Shams, President

 

 

2


EXHIBIT 5.1

 

DIANE D. DALMY 

ATTORNEY AT LAW  

2000 EAST 12TH AVENUE  

SUITE 32/10B  

DENVER , COLORADO 80206  

303.985.9324 (telephone)  

303.988.6954 (facsimile)  

ddalmy@earthlink.net

 

October 24, 2014

 

Mr. Nami Shams 

Chief Executive Office 

FWF Holdings Inc. 

Stiftstr 32 

20099 Hamburg, Germany

 

Re:

FWF Holdings Inc.

Registration Statement on Form S-1

  

Ladies and Gentlemen:

 

I have acted as securities legal counsel for FWF Holdings Inc., a Nevada corporation (the “Company”), in connection with the preparation of a registration statement on Form S-1 (the “Registration Statement”), filed with the Securities and Exchange Commission on October 24, 2014, and as subsequently amended, pursuant to the Securities Act of 1933, as amended (the “1933 Securities Act”). The Registration Statement includes a prospectus relating to the registration of a best efforts offering of an aggregate of 5,000,000 shares of common stock of the Company (the “Common Stock”) under the 1933 Securities Act for sale at a per share price of $0.03 by the Company.

 

In connection with this opinion, I have made such investigations and examined such records, including: (i) the Registration Statement; (ii) the Company’s Articles of Incorporation, as amended; (iii) the Company’s Bylaws; (iv) certain records of the Company’s corporate proceedings, including such corporate minutes as I deemed necessary to the performance of my services and to give this opinion; and (v) such other instruments, documents and records as I have deemed relevant and necessary to examine for the purpose of this opinion.

 

 
 

  

FWF Holdings Inc. 

Page Two 

October 24, 2014

 

I have examined and am familiar with the originals or copies, certified or otherwise identified to my satisfaction, of such other documents, corporate records and other instruments as I have deemed necessary for the preparation of this opinion. In expressing this opinion I have relied, as to any questions of fact upon which my opinion is predicated, upon representations and certificates of the officers of the Company.

 

In giving this opinion I have assumed: (i) the genuineness of all signatures and the authenticity and completeness of all documents submitted to me as originals; and (ii) the conformity to originals and the authenticity of all documents supplied to me as certified, photocopied, conformed or facsimile copies and the authenticity and completeness of the originals of any such documents. In giving this opinion, I have relied only upon such documents.

 

On the basis of the foregoing, and in reliance thereon, I am of the opinion that the shares of Common Stock, when sold and issued by the Company as described in the Registration Statement and the related Prospectus, and the including receipt of the consideration therefore, will be validly issued, fully paid and non-assessable.

 

I am providing this opinion to you in accordance with Item 601(b)(5) of Regulation S-K promulgated under the Securities Act for filing as Exhibit 5 to the Registration Statement. The opinions herein are limited to the Federal laws of the United States of America and the law of the State of Nevada, including all applicable provisions of the Constitution of the State of Nevada, statutory provisions of the State of Nevada and reported judicial decisions of the courts of the State of Nevada interpreting those laws. I do not express any opinion concerning any law of any other jurisdiction or the local laws of any jurisdiction.

 

I hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the use of my name in the Prospectus constituting a part thereof in connection with the matters referred to under the caption “Interests of Named Experts and Counsel”. 

 

Sincerely,
 
/s/ Diane D. Dalmy  
   
Diane D. Dalmy  
   

 

 

 

 


EXHIBIT 23.1

 

PLS CPA, A PROFESSIONAL CORP.

t 4725 MERCURY STREET #210  t SAN DIEGO  t CALIFORNIA 92111 t

t  TELEPHONE (858)722-5953  t FAX (858) 761-0341  t FAX (858) 433-2979

t  E-MAIL changgpark@gmail.com t

 

October 24, 2014

 

To Whom It May Concern:

 

We hereby consent to the use in this Registration Statement on Form S-1 of our report dated September 30, 2014, relating to the financial statements of FWF Holdings, Inc., which appears in such Registration Statement. We also consent to the references to us under the headings “Experts” in such Registration Statement.

 

 

Very truly yours,  

 

/s/ PLS CPA  

 

PLS CPA, A Professional Corp.  

San Diego, CA 92111  

 

 

Registered with the Public Company Accounting Oversight Board