The accompanying notes are an integral part
of these unaudited condensed financial statements.
The accompanying notes are an integral part
of these unaudited condensed financial statements.
The accompanying notes are an integral part
of these unaudited condensed financial statements.
NOTES TO CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2016 AND 2015 (UNAUDITED)
NOTE 1 - CONDENSED INTERIM FINANCIAL STATEMENTS
The accompanying financial statements have
been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position, results of operations and cash flows at June 30, 2016 and for
all periods presented have been made.
Certain information and footnote disclosures
normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States
of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with
the financial statements and notes thereto included in the Company's March 31, 2016 audited financial statements. The results of
operations for the period ended June 30, 2016 are not necessarily indicative of the operating results for the full year.
Basis of Presentation
In the opinion of management, the accompanying
balance sheets and related interim statements of income, cash flows, and stockholders' equity include all adjustments, consisting
only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted
in the United States of America ("U.S. GAAP"). Preparing financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Actual results and outcomes may differ
from management's estimates and assumptions.
NOTE 2 - GOING CONCERN
These condensed financial statements have
been prepared in accordance with generally accepted accounting principles applicable to a going concern which contemplates the
realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As of June 30, 2016,
the Company has not recognized any revenue and has accumulated operating losses of approximately $56,718 since inception. The Company's
ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its
ability to achieve and maintain profitable operations. Management plans to raise equity capital to finance the operating and capital
requirements of the Company. Amounts raised will be used for further development of the Company's products, to provide financing
for marketing and promotion, to secure additional property and equipment, and for other working capital purposes. While the Company
is putting forth its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds
that will be available for operations.
These conditions raise substantial doubt
about the Company's ability to continue as a going concern. These condensed financial statements do not include any adjustments
relating to recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might
arise from this uncertainty.
NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of financial statements
in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Earnings per Share
The basic earnings (loss) per share is
calculated by dividing the Company's net income (loss) available to common shareholders by the weighted average number of common
shares issued and outstanding 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 as of the first year for
any potentially dilutive debt or equity.
FIRST HARVEST CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2016 AND 2015 (UNAUDITED)
Recent Accounting Pronouncements
The Company's management has evaluated
all the recently issued accounting pronouncements through the filing date of these financial statements and does not believe that
any of these pronouncements will have a material impact on the Company's financial position and results of operations.
NOTE 4 - RELATED PARTY TRANSACTIONS
On February 27, 2013, the Company issued
3,000,000 shares of its Common Stock to a founder for cash of $3,000.
On April 22, 2013 an officer loaned the
Company $500 for audit fees. On June 27, 2014 an officer loaned the Company an additional $1,993 for audit fees. On October 23,
2014 an officer loaned the Company an additional $6,000 for audit fees. On July 1, 2015 an officer loaned the Company an additional
$5,250 for audit fees. On March 9, 2016 an officer loaned the Company an additional $6,000 for audit fees. As of June 30, 2016
and March 31, 2016, $19,743 and $19,743 of this loan remained due. The loan bears no interest and is due upon demand.
On May 9, 2016, a shareholder loaned the
Company $7,500 for audit fees. On May 11, 2016 a shareholder loaned the Company $1,000 for audit fees. On June 20, 2016 a shareholder
loaned the Company $1,500 for audit fees. As of June 30, 2016 $10,000 of this loan remained due. The loan bears no interest and
is due upon demand.
The Company does not lease or rent any
property. Office services are provided without charge by a director. Such costs are immaterial to the financial statements and,
accordingly, have not been reflected therein. The officers and directors of the Company are involved in other business activities
and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available,
such persons may face a conflict in selecting between the Company and their other business interests. The Company has not formulated
a policy for the resolution of such conflicts.
NOTE 5 - STOCKHOLDERS' EQUITY AND CONTRIBUTED
CAPITAL
Series A Convertible Preferred Stock
The Company is authorized to issue 5,000,000
shares of $0.001 par value Series A Preferred Stock, of which 200,000 shares were registered, issued and outstanding as of June
30, 2016. Series A Preferred Stock have no liquidation rights. Series A Preferred Stock shall not be entitled to receive any dividends
nor are they entitled to any voting rights with respect to the Series A Preferred Stock. At any time and from time-to-time after
the issuance of the Series A Preferred Stock, any holder may convert any or all of the registered shares of Series A Preferred
Stock held by such holder at the ratio of one hundred (100) shares of Common Stock for every one (1) share of Series A Preferred
Stock. However, the beneficial owner of such Series A Preferred Stock cannot not convert their Series A Preferred stock where they
will beneficially own in excess of 4.9% of the shares of the Common Stock.
On March 29, 2013, the Company issued 200,000
shares of its Series A Preferred Stock to shareholders in exchange for cash of $10,000. Each share of the Series A Preferred Stock
can be exchanged for one hundred (100) shares of Common Stock of the Company. This Series A Preferred Stock was issued with a beneficial
conversion feature totaling $10,000. This non-cash expense related to the beneficial conversion features of those securities and
is recorded with a corresponding credit to paid-in-capital.
On November 4, 2015, a shareholder of Series
A Preferred Stock converted 990 preferred shares to 99,000 shares of Common Stock.
On December 7, 2015, a shareholder of Series
A Preferred Stock converted 750 preferred shares to 75,000 shares of Common Stock.
On February 15, 2016, a shareholder of
Series A Preferred Stock converted 600 preferred shares to 60,000 shares of Common Stock.
On April 12, 2016, a shareholder of Series
A Preferred Stock converted 1,000 preferred shares to 100,000 shares of Common Stock.
On May 3, 2016, a shareholder of Series
A Preferred Stock converted 1,800 preferred shares to 180,000 shares of Common Stock.
On May 5, 2016, a shareholder of Series
A Preferred Stock converted 1,600 preferred shares to 160,000 shares of Common Stock.
On May 19, 2016, a shareholder of Series
A Preferred Stock converted 1,850 preferred shares to 185,000 shares of Common Stock.
FIRST HARVEST CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2016 AND 2015 (UNAUDITED)
On May 20, 2016, a shareholder of Series
A Preferred Stock converted 500 preferred shares to 50,000 shares of Common Stock.
On May 25, 2016, a shareholder of Series
A Preferred Stock converted 2,200 preferred shares to 220,000 shares of Common Stock.
If the remaining 188,710 shares of issued
and outstanding Series A Preferred Stock were to be converted into Common Stock, and each beneficial owner held less than 4.9%
of the Company’s Common Stock after issuance, it would result in the issuance of 18,871,000 shares of Common Stock.
Series B Preferred Stock
The Company is authorized to issue 5,000,000
shares of $0.001 par value Series B voting preferred stock, of which no shares are issued and outstanding. The Series B voting
preferred stock is not entitled to receive any dividends and has no liquidation rights, however may vote each share at a weight
of ten votes of common stock.
Series C Preferred Stock
The Company is authorized to issue 5,000,000
shares of $0.001 par value Series C preferred stock, of which no shares are issued and outstanding. The designation of these shares
has yet to be determined by the Board of Directors.
Common Stock
The Company is authorized to issue 185,000,000
shares of its $0.001 par value Common Stock, of which 3,800,000 shares are issued and outstanding.
On February 27, 2013, the Company issued
3,000,000 shares of its Common Stock to a founder for cash of $3,000.
On March 26, 2014, the Company issued 300,000
shares of its Common Stock to approximately 31 shareholders for cash of $3,000.
On February 4, 2016, the Company underwent
a change of control of ownership. VERSAI Inc. returned the 3,000,000 control shares to the Company’s then sole officer and
director that it had previously purchased on September 24, 2015 in order that the company may continue as a going concern. In consideration
for the return of the 3,000,000 common shares, the Company issued 500,000 restricted common shares to the lending group who provided
to VERSAI, Inc. the cash consideration to purchase the 3,000,000 control shares on September 24, 2015.
On November 4, 2015, a shareholder of Series
A Preferred Stock converted 990 preferred shares to 99,000 shares of Common Stock.
On December 7, 2015, a shareholder of Series
A Preferred Stock converted 750 preferred shares to 75,000 shares of Common Stock.
On February 15, 2016, a shareholder of
Series A Preferred Stock converted 600 preferred shares to 60,000 shares of Common Stock.
On April 12, 2016, a shareholder of Series
A Preferred Stock converted 1,000 preferred shares to 100,000 shares of Common Stock.
On May 3, 2016, a shareholder of Series
A Preferred Stock converted 1,800 preferred shares to 180,000 shares of Common Stock.
On May 5, 2016, a shareholder of Series
A Preferred Stock converted 1,600 preferred shares to 160,000 shares of Common Stock.
On May 19, 2016, a shareholder of Series
A Preferred Stock converted 1,850 preferred shares to 185,000 shares of Common Stock.
On May 20, 2016, a shareholder of Series
A Preferred Stock converted 500 preferred shares to 50,000 shares of Common Stock.
On May 25, 2016, a shareholder of Series
A Preferred Stock converted 2,200 preferred shares to 220,000 shares of Common Stock.
As of June 30, 2016, there have been no
stock options or warrants granted.
FIRST HARVEST CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2016 AND 2015 (UNAUDITED)
NOTE 6 - SUBSEQUENT EVENTS
On July 22, 2016, a former officer and
director forgave loans made to the Company by him, of which $19,743 was outstanding, in exchange for the issuance of 19,743 restricted
shares of the common stock of the Company, to be registered by the Company at a later date. As of August 10, 2016, these shares
have not yet been issued.
Effective July 22, 2016, the Company changed
its legal corporate name to “First Harvest Corp.” from “American Riding Tours, Inc.”. The Company effectuated
the name change through a short-form merger pursuant to Section 92A of the Nevada Revised Statutes where a subsidiary formed
solely for the purpose of the name change was merged with and into the Company, with the Company as the surviving corporation in
the merger. The merger had the effect of amending the Company’s Articles of Incorporation to reflect its new legal name.