The accompanying notes are an integral part of these interim consolidated financial statements.
The accompanying notes are an integral part of these interim consolidated financial statements.
The accompanying notes are an integral part of these interim consolidated financial statements.
The accompanying notes are an integral part of these interim consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2016
1. ORGANIZATION
The company, Viking Minerals Inc., was incorporated under the laws of the state of Nevada on March 24, 2006 with 75,000,000 authorized common shares, par value of $0.001 per share. In January 2011, the company filed an amendment with the state of Nevada to increase the authorized shares to 400,000 common shares, par value of $0.001 per share. The Companys fiscal year end is March 31
st
.
On April 14, 2014 the Company changed its name to Indie Growers Association and completed a 1:200 reverse stock consolidation.
The company was originally organized for the purpose of acquiring and developing mineral claims. On June 30, 2014, the company acquired River Ridge Sunshine Farms LLC, a Washington State corporation, and in so doing, changed its business to that of real estate development for the purpose of leasing land and infrastructure to licensed cannabis producers. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.
On April 4, 2016, the Company changed its name to Nexgen Applied Solutions Inc. and completed a 1:100 reverse stock consolidation.
All share amounts in these financial statements have been restated to reflect the stock consolidations on April 14, 2014 and April 4, 2016.
These financial statements are presented on the basis that we will continue as a going concern. The going concern concept contemplates the realization of assets and satisfaction of liabilities in the normal course of business.
At March 31, 2016, the Company had a working capital deficit, stockholders deficit and operating losses for the past two years. These circumstances raise substantial doubt about the Companys ability to continue as a going concern. While the Company is attempting to generate sufficient revenues, the Companys cash position may not be enough to support the Companys daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate sufficient revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to increase revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Companys ability to further implement its business plan and generate sufficient revenues.
The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash and Cash Equivalents
For the balance sheets and statements of cash flows, all highly liquid investments with a maturity date of 90 days or less are considered to be cash equivalents. The company had a cash balance of $129 and $4,469 as of March 31, 2016 and March 31, 2015, respectively.
Basic and Diluted Net Loss Per Share
Basic net loss per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net loss per share amounts are computed using the weighted average number of common and common equivalent shares outstanding as if shares had been issued on the exercise of the common share rights unless the exercise becomes anti-dilutive and then the basic and diluted per share amounts are the same.
F-6
Estimates and Assumptions
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain of the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. The most significant estimates with regard to these financial statements relate to the carrying values of the expected lives of buildings and infrastructure, determination of fair values of stock based transactions and valuation of deferred income taxes.
Asset Retirement Obligations
The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs an obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development and/or normal use of the assets. The estimated fair value of the asset retirement obligation is based on the current cost escalated at an inflation rate and discounted at a credit adjusted risk-free rate. This liability is capitalized as part of the cost of the related asset and amortized over its useful life. The liability accretes until the Company settles the obligation. To date the Company has not incurred any measurable asset retirement obligations.
Capital Assets
A Capital Asset is defined as a unit of tangible property that: (1) has an economic useful life of more than 12 months; and (2) was acquired or produced for a cost of more than $500, including acquisition and installation costs on the same invoice.
Capital Assets are stated at historical cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of operations during the financial period in which they are incurred.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the statement of operations.
Depreciation of capital assets is computed as follows:
|
|
Furniture and fixtures
|
7 year straight line
|
Computer equipment
|
5 year straight line
|
Buildings and infrastructure
|
30 year straight line
|
Leasehold Improvements
|
Straight line over the term of lease
|
Revenue Recognition
The Company recognizes revenue pursuant to revenue recognition principles presented in SAB Topic 13. First, there is persuasive evidence of an arrangement; Second, delivery has occurred or services have been rendered; Third, the sellers price to the buyer is fixed or determinable; and Fourth, collectability is reasonably assured.
The Company only source of income is from its sole tenant who subleases our land and buildings. We had no revenue in the fiscal year ended March 31, 2015 because our tenant did not occupy the property until May 1, 2015. For the fiscal year ended March 31, 2016, we recorded $416,000 in revenue in accordance with the sublease agreement between the tenant and our subsidiary. Our agreement with the tenant was that the lease amount payable would accrue monthly but payment was deferred until the tenant could harvest and sell his crop. This was anticipated to take place at or before the end of October 2015. After numerous delays, less than expected crop yield, and falling cannabis prices, we determined in the fourth quarter of the fiscal year ending March 31, 2016 that the tenant would be unable to meet their lease obligations. Therefore, no revenue was recognized in the fourth quarter as there was no reasonable assurance of collection and the revenue was offset by bad debt expense.
F-7
Liquidity and Capital Resources
Cash Flow -
During the year ending March 31, 2016 and 2015, the Company primarily received cash for the issuance of convertible debt notes. The notes are unsecured, due on demand, bear interest at 5%, and convertible at par value of $0.001 per share. The shares are not subject to forward or reverse stock splits unless the shares have been converted and issued prior to any such forward or reverse stock split. The Company received $107,258 and $432,309 of convertible debt financing in the fiscal years ended March 31, 2016 and 2015, respectively.
Cash flows used in operations for the years ended March 31, 2016 and 2015 were ($126,343) and ($99,118), respectively.
Since inception the Company has relied upon proceeds from convertible debt to fund its operations. The Company anticipates continuing to rely on such finding until its tenant is able to make lease payments. Conversion of the debt into shares will result in dilution to its existing stockholders. Until the growing season is completed, there is no assurance that the Company will receive any lease revenue or that it can arrange any other financing to fund our operations.
Capital Resources
As of March 31, 2016, the Company had cash of $129 compared to cash of $4,469 as of March 31, 2015.
Accounts Receivable and Concentration of Credit Risk
The Company has extended unsecured credit to its only tenant. Accounts receivable related to lease revenue is recorded monthly in accordance with the sublease agreement between the tenant and our subsidiary. At March 31, 2016, the tenant was unable to meet its financial obligations due to low crop yield and dropping cannabis prices. Consequently, the company wrote down accounts receivable from the tenant in its entirety.
As we currently only have one tenant and the cannabis industry is still in a state of unpredictable change, there is the potential risk that this could occur again. However, to mitigate the risk, commencing May 1, 2016, the monthly lease rate has been reduced and the tenant to making minimum monthly payments to pay down a portion of the receivable.
The Company will continue to evaluate the need for an allowance for doubtful accounts on a regular basis.
Convertible Debt
According to ASC 470-20-25-5 Recognition General Beneficial Conversion Features, an embedded beneficial conversion feature present in a convertible instrument shall be recognized separately at issuance by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital.
Paragraph 470-20-30-4 provides guidance on measuring intrinsic value that applies to both the determination of whether an embedded conversion feature is beneficial and the allocation of proceeds and paragraph 470-20-30-5 states that the effective conversion price based on the proceeds received for or allocated to the convertible instrument shall be used to compute the intrinsic value, if any, of the embedded conversion option.
According to paragraphs intrinsic value shall be calculated at the commitment date as the difference between the conversion price and the fair value of the common stock or other securities into which the security is convertible, multiplied by the number of shares into which the security is convertible.
In accordance with the convertible debt agreement, the conversion price is par value of $0.001 per share. Accordingly, the Company assessed the conversion option and determined that during the period the notes had a beneficial conversion feature with intrinsic values in excess of the debt. Therefore, the Company fully amortized the conversion benefit in each fiscal year and recorded is as an interest expense. The beneficial conversion feature was $107,258 and $432,309 in the years ended March 31, 2016 and 2015, respectively.
Impairment of Long-lived Assets
The Company reviews and evaluates long-lived assets for impairment at year end or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. The assets are subject to impairment consideration under ASC 360-10-35-17 if events or circumstances indicate that their carrying amounts might not be recoverable. When the Company determines that an impairment analysis should be done, the analysis will be performed using rules of ASC 930-360-35, Asset Impairment, and 360-10-15-3 through 15-5, Impairment or Disposal of Long-Lived Assets.
F-8
Stock Based Compensation
The Company accounts for share-based payments pursuant to ASC 718, Stock Compensation. Stock compensation expense is expensed immediately under ASC 718 and EITF 96-18 when stock or options are awarded for previous or current service without further recourse. The Company has issued stock to its director who continues to provide services to the Company. Consequently, under ASC 718 and EITF 96-18, these issuances were recognized as expense in the period issued because they were given as a form of payment for services already rendered with no recourse.
Since the Companys stock is publicly traded, the value is determined based on the number of shares issued and the trading value of the stock on the date of the transaction.
The company recognized $233,333 in expenses for stock based compensation to the Companys Director in the year ended March 31, 2016 and $31,072,222 in stock based compensation to the Companys current Director and two former Officers in the year ended March 31, 2015.
Investments
Investments in companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors, including, among others, ownership level. Under the equity method of accounting, an investee companys accounts are not reflected within the Companys Balance Sheets and Statements of Operations; however, the Companys share of the earnings or losses of the investee company is reflected in the Companys statements of operations and the Companys carrying value in an equity method investee company is reflected in the Companys balance sheets. The Company evaluates these investments for other-than-temporary declines in value each quarterly period. Any impairment found to be other than temporary would be recorded through a charge to earnings.
Fair Value of Financial Instruments
The Company has adopted the provisions of ASC Topic 820, Fair Value Measurements, which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. The fair value hierarchy distinguishes between assumptions based on market data (observable inputs) and an entitys own assumptions (unobservable inputs). The hierarchy consists of three levels:
·
Level one Quoted market prices in active markets for identical assets or liabilities;
·
Level two Inputs other than level one inputs that are either directly or indirectly observable; and
·
Level three Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use.
The only financial instrument on the Companys balance sheet is cash as outlined below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
March 31, 2015
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
Cash
|
|
|
$ 129
|
|
|
|
|
|
|
|
|
|
|
|
$ 4,469
|
|
|
|
|
|
|
|
Income Taxes
Income taxes are accounted for under the asset and liability method of ASC 740. Deferred tax assets and liabilities are recognized for net operating loss and other credit carry forwards and the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the tax effect of transactions are expected to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the year that includes the enactment date.
F-9
Deferred tax assets are reduced by a full valuation allowance since it is more likely than not that the amount will not be realized. Deferred tax assets and liabilities are classified as current or noncurrent based on the classification of the underlying asset or liability giving rise to the temporary difference or the expected date of utilization of the carry forwards.
Recent Accounting Pronouncements
On June 10, 2014, The Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, consolidation, which removes all incremental financial reporting requirements from GAAP for development stage entities, including the removal of Topic 915 from the FASB Accounting Standards Codification. For the first annual period beginning after December 15, 2014, the presentation and disclosure requirements in Topic 915 will no longer be required for the public business entities. The revised consolidation standards are effective one year later, in annual periods beginning after December 15, 2015. Early adoption is permitted. The Company adopted the amendment as of fiscal year ended March 31, 2015. Adopting this amendment did not have an impact on the presentation of these financial statements.
In January 2015, the FASB issued ASU 2015-01 eliminating the concept of extraordinary items for presentation on the face of the income statement. Under the new standard, a material event or transaction that is unusual in nature, infrequent or both shall be reported as a separate component of income from continuing operations. Alternatively, it may be disclosed in the notes to financial statements. The new accounting guidance is required for interim and annual periods beginning after December 15, 2015. Early adoption is permitted if applied from the beginning of a fiscal year. As applicable, this standard may change the presentation of amounts in the income statements. We elected to adopt ASU 2015-01 effective January 1, 2016. Adopting this amendment did not have an impact on the presentation of these financial statements.
There are several new accounting pronouncements issued by the Financial Accounting Standards Board (FASB) which are not yet effective. Each of these pronouncements, as applicable, has been or will be adopted by the Company. As of March 31, 2016, none of these pronouncements is expected to have a material effect on the financial position, results of operations or cash flows of the Company.
3. ACQUISITION OF A PROPERTY
On April 8, 2014, the Company entered into a share exchange agreement with the unit holders of Indie Growers Union LLC of Washington state wherein the Company would issue a total of 875,000 shares (87,500,000 pre-reverse split) shares of common stock and $185,000 cash in exchange for all of the outstanding member units and assets of Indie Growers Union LLC. The company advanced $185,000 but cancelled the agreement prior to issuing the shares. The company recovered $28,788 of the $185,000 cash and recorded an investment loss of $(156,212) during the fiscal year ended March 31, 2015.
On June 30, 2014, the Company acquired River Ridge Sunshine Farms LLC, a Washington state corporation in exchange for 620,000 shares (62,000,000 pre reverse split). The market value of the Companys shares on the July 15, 2014, the date the shares were issued, was $0.83 per share thereby valuing the acquisition at $51,460,000.
River Ridge Sunshine Farms LLC holds a 10 year lease on a 40 acre property which has been subleased to a licensed cannabis producer. The Net Book Value of the acquired assets and liabilities at June 30, 2014 was (22,198) therefore the transaction has been recorded as an acquisition of goodwill where goodwill is in excess of the purchase price as follows:
|
|
Share Value
|
51,460,000
|
Net book value of acquired assets
|
22,198
|
Goodwill
|
51,482,198
|
However, no revenue was generated from leases in the year ended March 31, 2015 so the company determined that the value of this acquisition should be fully impaired. An impairment of goodwill was recorded in the consolidated statement of operations effective as of the date of acquisition.
F-10
4. ASSET DEPRECIATION
|
|
|
|
|
Cost
|
Accumulated
Depreciation
|
Net Book Value
|
Buildings and Infrastructure
|
$ 292,900
|
$ (3,588)
|
$ 289,312
|
March 31, 2016
|
|
|
|
Buildings and Infrastructure
|
$ 293,695
|
$ (13,404)
|
$ 280,291
|
|
|
|
|
5. CAPITAL STOCK
The Companys authorized capital is 400,000,000 shares of common stock, par value $0.001, of which 2,633,027 shares are issued and outstanding as of March 31, 2016 (1,408,820 as at March 31, 2015). On April 14, 2014 the completed a 1:200 reverse stock split and on April 4, 2016, the Company completed a further 1:100 reverse stock split. All share amounts in these financial statements have been restated to reflect these reverse stock splits.
On May 2, 2014, the company issued 210,000 (21,000,000 pre reverse split) shares of its common stock for services to two of our former officers. The market value of the Companys shares on the May 2, 2014, the date the shares were issued, was $2.35 per share thereby valuing the management fees at $49,350,000. However, on December 28, 2014, one of the officers resigned and relinquished his title to 77,778 (7,777,778 pre reverse split) of the shares. The net effect of $31,072,222 has been recorded as management fees in the consolidated statements of operations for this transaction.
On May 14, 2014, the company issued 20,000 (2,000,000 pre reverse split) shares of its common stock for $2,000 of convertible debt. The stock was valued at par value in accordance with the convertible debt agreement.
On June 30, 2014, the company acquired River Ridge Sunshine Farms LLC and subsequently issued 620,000 (62,000,000 pre reverse split) shares our former Chief Operating Officer for the acquisition of River Ridge Sunshine Farms LLC. The market value of the Companys shares on June 30, 2014 was $0.83 per share thereby valuing the shares at $51,460,000.
On August 14, 2014, Lexington Ridge Holdings Inc., a funder of the company, sold $625,000 worth of it convertible debt to various parties. These parties subsequently converted their debt into equity for which the company issued 625,000 (62,500,000 pre-reverse split) shares of its common stock for the convertible debt. The stock was valued at par value in accordance with the convertible debt agreement. As of August 24, 2016, those parties still hold those shares.
On January 13, 2016, the company issued 77,778 (7,777,778 pre reverse split) shares of its common stock for services to its director. The market value of the Companys shares on the January 13, 2016 was $0.03 per share thereby valuing the issuance at $233,333. This has been recorded as management fees in the consolidated statements of operations.
On February 16, 2016, Lexington Ridge Holdings Inc., a funder of the company, sold $115,000 worth of its convertible debt to Caboose Partners Ltd., a Nevis based company (Caboose). Caboose subsequently converted the debt into equity for which the company issued 1,150,000 (115,000,000 pre reverse split) restricted shares for the convertible debt. The stock was valued at par value of $0.001 in accordance with the convertible debt agreement. As of August 24, 2016, Caboose still holds those shares.
6. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES
On January 13, 2016, the company issued 77,778 shares of its common stock to our director as remuneration for serving on our board. The market share price on January 13, 2016 was $3.00 per share thereby valuing these directors fees at $233,333.
During the year ended March 31, 2016 and 2015, the company received $15,542 and $70,217, respectively, from the former Chief Operating Officer of our subsidiary. The balances outstanding at March 31, 2016 and 2015 were $85,932 and $70,390, respectively. The advances have no set repayment terms and do not bear interest.
During the year ended March 31, 2016 and 2015, the company incurred land lease costs of $12,000 and $9,000, respectively, payable to our former Chief Operating Officer.
F-11
7. TENANT LEASE INCENTIVE
As an incentive to sign a five year lease, the Company provided the tenant with $30,000 of cash incentives consisting of $20,000 of planting supplies and $10,000 reduction in their lease. This incentive was amortized on a straight line basis over the 5 year initial lease term to reduce each months rental income.
When the tenant was unable to meet their financial obligations for the fiscal year ended March 31, 2016 and with the ongoing uncertainty in the cannabis industry, the Company determined that it is uncertain if it can collect on this incentive and should fully expense the remaining balance of $26,000 as bad debt.
8. VENDOR INCENTIVE
In December 2013, the Companys current transfer agent paid off the outstanding balance of $5,717 owed to the former transfer agent. This has been recorded as a deferred vendor incentive. It has been amortized on a straight line basis over the contract term of 5 years such that each years portion of the incentive will be offset against transfer agent fees in the statement of operations.
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|
|
For the Year Ended
|
Offset
|
Balance
|
March 31, 2014
|
-
|
$ 5,335
|
March 31, 2015
|
$ 1,143
|
$ 4,192
|
March 31, 2016
|
$ 1,143
|
$ 3,049
|
Subsequent to the March 31, 2016 year end, the Company changed transfer agents prior to the end of the 5 year contract term. For early termination, the Company was required to pay back the original amount of the vendor incentive which was added to the termination fees charged by the outgoing transfer agent.
9. INCOME TAXES
For the year ended March 31, 2016, the Company has incurred net losses from operations and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved.
The provision for Federal income tax at the expected rate of 34% consists of the following:
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|
|
|
|
|
|
|
March 31, 2016
|
|
March 31, 2015
|
Federal income tax benefit attributable to:
|
|
|
|
|
Current operations
|
|
$
|
171,482
|
|
$
|
28,314,666
|
Less: valuation allowance
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|
|
(171,482)
|
|
|
(28,314,666)
|
Net provision for Federal income taxes
|
|
$
|
-
|
|
$
|
-
|
The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:
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|
|
|
|
|
|
|
March 31, 2016
|
|
March 31, 2015
|
Deferred tax asset attributable to:
|
|
|
|
|
Net operating loss carryover
|
|
$
|
39,064,439
|
|
$
|
38,892,957
|
Less: valuation allowance
|
|
|
(39,064,439)
|
|
|
(38,892,957)
|
Net deferred tax asset
|
|
$
|
-
|
|
$
|
-
|
As the criteria for recognizing deferred income tax assets have not been met due to the uncertainty of realization, a valuation allowance of 100% has been recorded for the current and prior year.
F-12
10. CONVERTIBLE PROMISSORY NOTES
As of March 31, 2016, the Company had accumulated $ 436,512 in convertible promissory notes ($443,754 at March 31, 2015). The unsecured notes are due on demand, bear interest at 5%, and convertible at $0.001. The shares are not subject to forward or reverse stock splits unless the shares have been converted and issued prior to any such forward or reverse stock split. Therefore, if the balance outstanding was converted into common shares, the amount of stock to be issued would be 436,512,000 common shares.
During the year ended March 31, 2016, the company received $107,258 of convertible debt financing (Year ended March 31, 2015: $432,309). The Company assessed the conversion option and determined that during the period the note had a beneficial conversion feature with intrinsic values in excess of the debt. Therefore, the Company fully amortized a conversion benefit of $107,258 for the current period and recorded is as an interest expense as of March 31, 2016 (Year ended March 31, 2015: $432,309).
During the year ended March 31, 2016, the company issued 1,150,000 shares (115,000,000 pre reverse split) for the settlement of $115,000 of convertible debt. During the year ended March 31, 2015, the company issued 645,000 shares (64,500,000 pre reverse split) for the settlement of $64,500 of convertible debt.
The convertible notes have accrued interest in accordance with the following table:
|
|
|
Year ended
|
Interest Accrued During the Year
|
Total Accrued Interest
|
March 31, 2014
|
-
|
$ 71
|
March 31, 2015
|
$ 17,429
|
$ 17,500
|
March 31, 2016
|
$ 24,284
|
$ 41,784
|
Accrued interest has been recorded in Accounts Payable and Accrued Liabilities.
The weighted average number of shares outstanding has been computed on a post reverse split basis as if these shares were issued on the date the funds were advanced to the Company as follows:
|
|
|
|
|
|
Date
|
Issued Shares Outstanding
|
Potentially Dilutive Shares
|
Days
|
Weighting
|
Weighted Shares Outstanding
|
31-Mar-14
|
11,598
|
75,945,000
|
365
|
1.00
|
75,956,598
|
30-Apr-14
|
|
138,820,000
|
335
|
0.92
|
127,410,137
|
02-May-14
|
132,222
|
|
333
|
0.91
|
120,630
|
14-May-14
|
10,000
|
(1,000,000)
|
321
|
0.88
|
(870,658)
|
31-May-14
|
|
35,960,000
|
304
|
0.83
|
29,950,247
|
02-Jun-14
|
10,000
|
(1,000,000)
|
302
|
0.83
|
(819,123)
|
11-Jun-14
|
|
35,000,000
|
293
|
0.80
|
28,095,890
|
20-Jun-14
|
|
18,500,000
|
284
|
0.78
|
14,394,521
|
30-Jun-14
|
|
15,705,000
|
274
|
0.75
|
11,789,507
|
01-Jul-14
|
|
15,000,000
|
273
|
0.75
|
11,219,178
|
15-Jul-14
|
620,000
|
|
259
|
0.71
|
439,945
|
31-Jul-14
|
|
94,415,000
|
243
|
0.67
|
62,857,110
|
14-Aug-14
|
625,000
|
(62,500,000)
|
229
|
0.63
|
39,604,452
|
31-Aug-14
|
|
16,184,000
|
212
|
0.58
|
9,400,022
|
30-Sep-14
|
|
22,695,000
|
182
|
0.50
|
11,316,411
|
31-Oct-14
|
|
22,545,000
|
151
|
0.41
|
9,326,836
|
31-Jan-15
|
|
225,000
|
59
|
0.16
|
36,370
|
28-Feb-15
|
|
1,525,000
|
31
|
0.08
|
129,521
|
31-Mar-15
|
|
15,735,000
|
-
|
-
|
-
|
31-Mar-15
|
1,408,820
|
443,754,000
|
|
|
286,027,748
|
F-13
|
|
|
|
|
|
Date
|
Issued Shares Outstanding
|
Potentially Dilutive Shares
|
Days
|
Weighting
|
Weighted Shares Outstanding
|
31-Mar-15
|
1,408,820
|
443,754,000
|
366
|
1.00
|
445,162,820
|
30-Apr-15
|
|
785,000
|
336
|
0.92
|
720,656
|
28-May-15
|
|
10,000,000
|
308
|
0.84
|
8,415,301
|
31-May-15
|
|
2,595,000
|
305
|
0.83
|
2,162,500
|
17-Jun-15
|
|
395,000
|
288
|
0.79
|
310,820
|
30-Jun-15
|
|
28,535,000
|
275
|
0.75
|
21,440,232
|
30-Jul-15
|
|
10,000,000
|
245
|
0.67
|
6,693,989
|
31-Jul-15
|
|
6,930,000
|
244
|
0.67
|
4,620,000
|
30-Sep-15
|
|
450,000
|
183
|
0.50
|
225,000
|
16-Oct-15
|
|
225,000
|
167
|
0.46
|
102,664
|
13-Nov-15
|
|
7,500,000
|
139
|
0.38
|
2,848,361
|
16-Nov-15
|
|
180,000
|
136
|
0.37
|
66,885
|
13-Jan-16
|
77,778
|
-
|
78
|
0.21
|
16,576
|
22-Jan-16
|
|
14,741,000
|
69
|
0.19
|
2,779,041
|
31-Jan-16
|
|
225,000
|
60
|
0.16
|
36,885
|
16-Feb-16
|
1,150,000
|
(115,000,000)
|
44
|
0.12
|
(13,686,885)
|
29-Feb-16
|
|
6,642,000
|
31
|
0.08
|
562,574
|
31-Mar-16
|
|
18,055,000
|
-
|
-
|
-
|
31-Mar-16
|
(3,571)
|
|
-
|
-
|
-
|
31-Mar-16
|
2,633,027
|
436,012,000
|
|
|
482,477,417
|
11. SUBSEQUENT EVENTS
A.
On April 4, 2016, the Company changed its name to Nexgen Applied Solutions Inc.
B.
On April 4, 2016, the Company completed a 1:100 reverse stock split. All share amounts in these financial statements have been restated to reflect this stock consolidation.
C.
On April 18, 2016, the entered into an agreement with Bingo Nation Technologies Inc. for a business development contract and exclusive software technology license to a bingo-themed Class II game recognized by the Indian Gaming Regulatory Act and related television broadcast rights. Under the terms of the agreement, the Company issued 50 Million restricted shares of the Company to Bingo Nation in exchange for the aforementioned rights.
D.
On May 1, 2016, the Company modified the terms of the lease with the tenant as follows:
·
The lease rate was reduced from $2.50 per square foot of garden canopy to $0.63 per square feet of garden canopy;
·
The tenant will make a minimum payment of $3,000 per month towards the lease with the balance accruing until the tenant sells their crop; and
·
The tenant pays for all utilities and ground maintenance at the property.
E.
On June 30, 2016, Lexington Ridge Holdings Corp. sold its $469,370 of convertible debt to Ramsay Capital Corp. and will no longer be providing funding to the Company.
F.
On July 1, 2016, the Board of Directors and a stockholder representing 95% of the issued and outstanding stock of the company approved the filing of an amendment to the Companys Articles of Incorporation that will:
i.
Change the name of the Company to Bingo Nations Inc.; and
ii.
Create one hundred million (100,000,000) shares of Preferred Stock.
These changes are not yet effective.
F-14