Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

  x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: July 31, 2020

 

or

 

  ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ________________ to ________________

 

Commission file number 001-36843

 

 

GREEN STREAM HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

Wyoming   20-1144153
(State or other jurisdiction of
incorporation or organization)
  (I.R.S. Employer
Identification No.)
     

16620 Marquez Ave

Pacific Palisades, CA

  90272
(Address of principal executive offices)   (Zip Code)

 

(310) 230-0240

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  x     No  ¨

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   x     No  ¨

 

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

 

Large accelerated filer  ¨ Accelerated filer  ¨
Non-accelerated filer  x Smaller reporting company  x
  Emerging growth company x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ¨    No   x

 

Securities registered pursuant to Section 12(b) of the Act:

  

Title of each class   Trading
Symbol(s)
  Name of each exchange on which
registered
Common Stock, $0.001 par value per share   GSFI   OTC Markets

 

The number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

 

Class   Outstanding as of September 18, 2020
Common Stock, $0.001 par value per share   65,903,165

 

 

 

     
 

 

Green Stream Holdings, Inc.

Form 10-Q

Table of Contents

 

 

  Page
   
PART I - FINANCIAL INFORMATION 3
   
Item 1 - Financial Statements 3
Consolidated Condensed Balance Sheets July 31, 2020 and July 31, 2019 3
Consolidated Condensed Statements of Operations for the Three Months Ended July 31, 2020 and July 31, 2019 4
Consolidated Condensed Statements of Cash Flows for the Three Months Ended July 31, 2020 and July 31, 2019 5
Consolidated Condensed Statements of Changes in Stockholders’ Deficit for the Three Months ended July 31, 2020 6
Notes to Consolidated Condensed Financial Statements 7
Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations 13
Item 3 - Quantitative and Qualitative Disclosures About Market Risk 16
Item 4 - Controls and Procedures 16
   
   
PART II - OTHER INFORMATION
 
Item 1 - Legal Proceedings 17
Item 1A - Risk Factors 18
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds 18
Item 3 - Defaults Upon Senior Securities 18
Item 4 - Mine Safety Disclosures 18
Item 5 - Other Information 18
Item 6 - Exhibits 18
Signature 19

 

 

 

  2  

 

  

PART I - Financial Information

ITEM 1. - Financial Statements

 

Green Stream Holdings, Inc.

CONSOLIDATED CONDENSED BALANCE SHEETS

 

    July 31, 2020     April 30, 2020  
    (Unaudited)     (Audited)  
ASSETS            
Current Assets                
Cash   $ 1,982     $ 14,727  
Total Current Assets     1,982       14,727  
                 
Fixed Assets                
Furniture and equipment net of depreciation (Note 3)     1,087,899       915,654  
Other Assets                
Intangible asset, net of amortization (Note 4)     185,000       185,000  
                 
TOTAL ASSETS   $ 1,274,881     $ 1,115,381  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                
                 
LIABILITIES                
Current Liabilities                
Accounts Payable   $ 55,898     $ 44,448  
Other Current Liabilities     60,000       60,000  
Accrued Interest Payable     7,751       4,872  
Due to related party (Note 7)     125,845       141,569  
Notes Payable (Note 8)     578,678       340,900  
                 
Total Current Liabilities     828,172       591,789  
                 
TOTAL LIABILITIES     828,172       591,789  
                 
STOCKHOLDERS’ EQUITY (DEFICIT)                
Preferred A Stock, $.001 par value 1,000,000 Authorized 53,000 Issued and Outstanding at July 31, 2020 and at April 30, 2020, respectively     53       53  
                 
Preferred B Stock, $.001 par value 1,000,000 Authorized 600,000 Issued and Outstanding at July 31, 2020 and at April 30, 2020, respectively     600       600  
                 
Preferred C Stock, $.001 par value 10,000,000 Authorized 760,000 Issued and Outstanding at July 31, 2020 and at April 30, 2020, respectively     760       760  
                 
Common Stock, $.001 par value 10,000,000,000 Authorized 65,395,665 Issued and Outstanding at July 31, 2020 and 26,700,665 at April 30, 2020     65,396       26,700  
                 
Additional paid-in-capital     1,355,602       864,540  
Accumulated deficit     (975,702 )     (369,062 )
Total Stockholders’ Equity (Deficit)     446,709       523,592  
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)   $ 1,274,881     $ 1,115,381  

 

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

 

 

  3  

 

 

Green Stream Holdings, Inc.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

   

For The Three Months Ended

 
   

July 31,

2020

   

July 31,

2019

 
REVENUES:            
             
Sales   $     $  
                 
TOTAL REVENUE            
                 
COST OF SALES            
                 
GROSS MARGIN            
                 
OPERATING EXPENSES:                
                 
Administrative expenses     318,799       22,055  
Advertising     4,098        
Insurance     770        
Legal Fees     42,450        
Professional Fees     153,175       28,727  
Rent     23,000       8,559  
Travel     9,308       12,252  
Total Operating expenses     551,600       71,593  
                 
NET OPERATING INCOME/ LOSS   $ (551,600 )   $ (71,593 )
                 
OTHER INCOME/(EXPENSES):                
                 
OID Discount     (27,778 )      
Finance and interest fees     (27,262 )     (11,472 )
                 
NET INCOME (LOSS)   $ (606,640 )   $ (83,065 )
                 
Basic and Diluted Loss per Common Share   $ (.00928 )   $ (.0032 )
                 
Weighted Average Number of Common Shares Outstanding     65,395,655       25,834,000  

 

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

 

 

 

  4  

 

 

Green Stream Holdings, Inc.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

 

    For The Three Months Ended  
   

July 31,

2020

   

July 31,

2019

 
             
CASH FLOWS FROM OPERATING ACTIVITIES                
Net loss for the period   $ (606,640 )   $ (83,065 )
Adjustments to reconcile net loss to net cash provided by operating activities:                
Amortization            
Depreciation            
Changes in operating assets and liabilities:            
Increase/(decrease) in accrued interest payable     2,879        
Increase/ (decrease) in accounts payable     11,450       45,951  
Net cash used in operating activities     (592,311 )     (37,114 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES                
Acquisition of Assets     172,245        
Net cash provided by (used in) investing activities     (172,245 )      
                 
CASH FLOWS FROM FINANCING ACTIVITIES                
Proceeds From Reg A     481,500        
Proceeds from loans from stockholder     (7,467 )     42,305  
Proceeds from Notes Payable     277,778        
Net cash provided by (used in) financing activities     751,811       42,305  
                 
Net increase (decrease) in cash and cash equivalents     (12,745 )     5,191  
                 
Cash and cash equivalents - beginning of period     14,727       0  
                 
Cash and cash equivalents - end of period   $ 1,982     $ 5,191  
                 
Supplemental Cash Flow Information                
Issuance of Common shares to for services   $ 15,975     $  
Conversion of loans for Common shares   $ 20,220     $  

 

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

 

 

 

  5  

 

 

Green Stream Holdings, Inc.

CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

For The Three Months Ended July 31, 2020

(Unaudited)

 

    Preferred Shares     Common Stock    

Additional

Paid-In

    Accumulated     Total
Stockholders'
 
    Shares     Value     Shares     Amount     Capital     Deficit     Equity  
                                           
Balance April 30 2017     11,000,000     $ 11,000       9,991,254,145     $ 9,991,254     $ (9,625,627 )   $ (1,683,465 )   $ (1,306,838 )
                                                         
Balance April 30, 2018     11,000,000       11,000       9,991,254,145       9,991,254       (9,625,627 )     (1,683,465 )     (1,306,838 )
                                                         
Reverse Split                     (9,990,917,378 )     (9,990,917 )     10,699,034       1,683,465       2,391,582  
                                                         
Issuance of Common Shares for Services                     25,497,233       25,497                       25,561  
Retirement of Preferred Shares     (11,000,000 )     (11,000 )                                     (11,000 )
Issuance of Preferred Shares for services     600,000       600                                       600  
Issuance of Preferred Shares for Services     760,000       760                                       760  
Issuance of Preferred Shares for Services     53,000       53                                       53  
Net Loss April 30, 2019                                             (112,714 )     (112,714 )
Balance, April 30, 2019     1,413,000       1,413       25,834,000       25,834       1,073,471       (112,714 )     987,940  
                                                         
Issuance of Common Shares for financing                     600,000       600                       600  
Issuance of Common Shares for Settlement with Prior Management                     266,655       266       (208,931 )             (208,664 )
Net Loss April 30, 2020                                             (256,348 )     (256,348 )
Balance April 30, 2020     1,413,000       1,413       26,700,655       26,700       864,540       (369,062 )     523,592  
                                                         
Commitment for share issuance                                     (193,000 )             (193,000 )
Issuance of Common shares for Reg A funding                     2,500,000       2,500       471,800               474,300  
Issuance of common shares for services                     15,975,000       15,975                       15,975  
Issuance of Common Shares for financing                     20,220,000       20,220       212,262               232,482  
Net Loss July 31, 2020                                             (606,640 )     (606,640 )
Balance July 31, 2020     1,413,000     $ 1,413       65,395,665     $ 65,396     $ 1,355,602     $ (975,702 )   $ 446,709  

 

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

 

 

 

  6  

 

 

Green Stream Holdings, Inc.

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

For the three months ended July 31, 2020

 

 

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

 

A. ORGANIZATION AND OPERATIONS

 

The Company was originally incorporated on April 12, 2004, in the State of Nevada under the name of Ford-Spoleti Holdings, Inc. On June 4, 2009, the Company merged with Eagle Oil Holding Company, a Nevada corporation, and the surviving entity, the Company, changed its name to “Eagle Oil Holding Company, Inc.” Inception of the current Company occurred February 8, 2019 when the Company was acquired by Green Stream Holdings Inc. Previously there was no activity from July 31, 2017 until the acquisition of February 8, 2019. On April 25, 2019, the Company changed its name to “Green Stream Holdings Inc.” and is deemed to be a continuation of business of Eagle Oil Holding Company, Inc. Additionally, the Company was reorganized that so that the Company became operating as a holding company of Green Stream Finance, Inc., a Wyoming Corporation. That reorganization, inter alia, gave Madeline Cammarata, President of Green Stream Finance, Inc., the majority of the voting power in the Company. On April 25, 2019 the Company also filed the certificate of Amendment to Articles of Incorporation with the Secretary of State of Nevada providing for reverse stock split: each thirty thousand shares of common stock of the Company issued and outstanding immediately prior to the “effective time” of the filing were automatically and without any action on the part of the respective holders thereof, be combined and converted into one (1) share of common stock, provided that no fractional shares were to be issued in connection with said reverse stock split. On May 15, 2019, the Company filed the articles of conversion with the secretary of state of Nevada, to convert the company from Nevada Corporation to Wyoming Corporation. The Company is in good standing in the State of Wyoming as of September 25, 2019. The Company’s common shares are quoted on the “Pink Sheets” quotation market under the symbol “GSFI.”

 

B. PRINCIPALS OF CONSOLIDATION

 

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Green Stream Finance, Inc. based in the state of Wyoming. All material inter-company balances and transactions were eliminated upon consolidation.

 

C. BASIS OF ACCOUNTING

 

The Company utilizes the accrual method of accounting, whereby revenue is recognized when earned and expenses when incurred.  The financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. As such, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and these adjustments are of a normal recurring nature.

 

D. 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

 

 

 

  7  

 

 

E. CASH AND CASH EQUIVALENTS

 

Cash and cash equivalents include cash on hand; cash in banks and any highly liquid investments with maturity of three months or less at the time of purchase. The Company maintains cash and cash equivalent balances at several financial institutions, which are insured by the Federal Deposit Insurance Corporation up to $250,000.

 

F. COMPUTATION OF EARNINGS PER SHARE

 

Net income per share is computed by dividing the net income by the weighted average number of common shares outstanding during the period. Due to the net loss, the options and stock conversion of debt are not used in the calculation of earnings per share because the stock conversions and options are considered to be antidilutive.

 

G. INCOME TAXES

 

The Company accounts for income taxes under the asset and liability 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 basis and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary 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 enactment date.

 

The Company’s management has reviewed the Company’s tax positions and determined there were no outstanding, or retroactive tax positions with less than a 50% likelihood of being sustained upon examination by the taxing authorities, therefore the implementation of this standard has not had a material effect on the Company.

 

H. REVENUE RECOGNITION

 

Revenue for license fees is recognized upon the execution and closing of the contract for the amount of the contract. Contract fees are generally due based upon various progress milestones. Revenue from contract payments are estimated and accrued as earned. Any adjustments between actual contract payments and estimates are made to current operations in the period they are determined.

 

I. FAIR VALUE MEASUREMENT

 

The Company determines the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amounts reported in the balance sheet for cash, accounts receivable, inventory, accounts payable and accrued expenses, and loans payable approximate their fair market value based on the short-term maturity of these instruments.

 

Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability.  US GAAP establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The established fair value hierarchy prioritizes the use of inputs used in valuation methodologies into the following three levels:

 

·   Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and must be used to measure fair value whenever available.

 

·   Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

 

·   Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. For example, level 3 inputs would relate to forecasts of future earnings and cash flows used in a discounted future cash flows method.

 

 

 

  8  

 

 

J. STOCK-BASED COMPENSATION

 

The Company measures and recognizes compensation expense for all share-based payment awards made to employees, consultants and directors including employee stock options based on estimated fair values. Stock-based compensation expense recognized for the years ended December 31, 2014 and 2013 was $24,000 and $0 respectively. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that vest during the period.

 

Share-based compensation expense recognized in the Company’s consolidated statement of operations for the years ended December 31, 2014 included compensation expense for share-based payment awards granted in December 31, 2014.

 

K. SALES AND ADVERTISING

 

The costs of sales and advertising are expensed as incurred.  Sales and advertising expense was $4,098 and $0 for the three months ended July 31, 2020 and 2019, respectively.

 

L. NEW ACCOUNTING PRONOUNCEMENTS

 

The Company reviews new accounting standards as issued. No new standards had any material effect on these financial statements. The accounting pronouncements issued subsequent to the date of these financial statements that were considered significant by management were evaluated for the potential effect on these consolidated financial statements. Management does not believe any of the subsequent pronouncements will have a material effect on these consolidated financial statements as presented and does not anticipate the need for any future restatement of these consolidated financial statements because of the retro-active application of any accounting pronouncements issued subsequent to July 31, 2020 through the date these financial statements were issued.

 

M. FURNITURE AND EQUIPMENT

 

Furniture and equipment are recorded at costs and consists of furniture and fixtures, computers and office equipment. We compute depreciation using the straight-line method over the estimated useful lives of the assets. Expenditures for major betterments and additions are charged to the property accounts, while replacements, maintenance, and repairs that do not improve or extend the lives of the respective assets are charged to expense.

 

N. INTELLECTUAL PROPERTY

 

Intangible assets (intellectual property) are recorded at cost and are amortized over the estimated useful life of the asset. Management evaluates the fair market value to determine if the asset should be impaired at the end of each year.

 

O. IMPAIRMENT OF LONG-LIVED ASSETS

 

The Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life.

 

Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances.

 

An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.

 

 

 

  9  

 

 

NOTE 2 - GOING CONCERN AND LIQUIDITY CONSIDERATIONS

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. At July 31, 2020 the Company had a loss from operations, for the three months ended, of $606,640, and an accumulated deficit of $975,702 and negative working capital of $633,190. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern.

 

The Company depends upon capital to be derived from future financing activities such as subsequent offerings of its common stock or debt financing in order to operate and grow the business.  There can be no assurance that the Company will be successful in raising such capital.  The key factors that are not within the Company's control and that may have a direct bearing on operating results include, but are not limited to, acceptance of the Company's business plan, the ability to raise capital in the future, the ability to expand its customer base, and the ability to hire key employees to provide services.  There may be other risks and circumstances that management may be unable to predict.

 

The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

 

NOTE 3 – PROPERTY AND EQUIPMENT

 

Property and equipment at July 31, 2020 and April 30, 2020 consists of the following:

 

    July 31, 2020     April 30, 2020  
             
Furniture and Fixtures   $ 915,654     $ 915,564  
Leasehold Improvements     172,245        
Less: Accumulated Depreciation            
Net Property and Equipment   $ 1,087,899     $ 915,564  


Depreciation has not been charged since the projects are not yet completed and the final cost has yet to be determined. Depreciation expense for the three months ended July 31, 2020 and 2019 was $0 respectively. Property and equipment are recorded at cost. Depreciation is computed on the straight-line method, based on the estimated useful lives of the assets.

 

NOTE 4 – INTANGIBLE ASSETS

 

Intangible Assets at July 31, 2020 and April 30, 2020 consists of the following:

 

    July 31, 2020     April 30, 2020  
             
Intangible Assets   $ 185,000     $ 185,000  
Less: Accumulated Amortization            
Net Intangible Assets   $ 185,000     $ 185,000  

 

The Company invests in various intellectual properties to be developed into future projects. By definition these intangible assets are amortized over a 15 year period. Amortization expense for the three months ended July 31, 2020 and 2019 was $0 respectively. At July 31, 2020, the Company has determined that the intangible asset should not be impaired.

 

 

 

  10  

 

 

NOTE 5 –STOCKHOLDERS’ EQUITY/(DEFICIT)

 

AUTHORIZED SHARES & TYPES

 

As of July 31, 2020, we had 65,395,665 shares of Common Stock and of:

 

  1,000,000 authorized shares of Convertible Series A Preferred Shares. Convertible Series A Preferred Shares are convertible into the shares of Common Stock at a ratio of 1,000 shares of Convertible Series A Preferred Shares to 1 share of Common Stock. There are 53,000 shares issued and outstanding or 53 votes.

 

  1,000,000 authorized shares of Convertible Series B Preferred Shares. Convertible Series B Preferred Shares are convertible into the shares of Common Stock at a ratio of 1,000,000 shares of Common Stock for each single Convertible Series B Preferred Share. Additionally, the Preferred B Shares are non-dilutive. There are 600,000 shares issued and outstanding or 600,000,000,000 votes.

 

  10,000,000 authorized shares of Convertible Series C Preferred Shares. Convertible Series C Preferred Shares are convertible into Common Stock at a ratio of 1,000 shares of Convertible Series C Preferred Share for one share of Common Stock. There are 760,000 shares issued and outstanding or 760 votes.

 

NOTE 6 – INCOME TAXES

 

Deferred tax assets arising as a result of net operation loss carry forwards have been offset completely by a valuation allowance due to the uncertainty of their utilization in future periods.

 

Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company’s evaluation was performed for the tax years ended July 31, 2020 and 2019 for U.S. Federal Income Tax and for the State of Wyoming.

 

A reconciliation of income taxes at statutory rates with the reported taxes follows:

 

    July 31, 2020     July 31, 2019  
             
Loss before income tax benefit   $ 975,702     $  
Expected income tax benefit     (243,900 )      
Non-deductible expenses            
                 
Tax loss benefit not recognized for book purposes, valuation allowance   $ 243,900     $  
Total income tax   $     $  

 

The Company has net operating loss carry forwards in the amount of approximately $975,702 that will expire beginning in 2029. The deferred tax assets including the net operating loss carry forward tax benefit of $975,702 total $243,900 which is offset by a valuation allowance. The other deferred tax assets include accrued officer compensation, stock based compensation, and amortization.

 

The Company follows the provisions of uncertain tax positions. The Company recognized approximately no increase in the liability for unrecognized tax benefits.

 

The Company has no tax position at July 31, 2020 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.

 

The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the periods presented. The Company had no accruals for interest and penalties at July 31, 2020. The open tax years are from 2019 through 2029.

 

 

 

 

  11  

 

 

NOTE 7 – RELATED PARTY TRANSACTIONS

 

During the three months ended July 31, 2020 and 2019 the Company’s CEO had advanced $0 and $42,305 respectively of personal funds. As of July 31, 2020 and 2019 the Company owed the CEO $125,846 and $42,305 respectively.

 

NOTE 8 –NOTES AND OTHER LOANS PAYABLE

 

On December 11, 2019 the company agreed to pay Cheryl Hintzen $40,000 in the form of a promissory note with a term of one year at 10 % interest compounded annually. The Company accrued interest for the Three months ended January, 31, 2020 in the amount of $559. On January 8, 2020 the Company signed a promissory note for $8,000 with Cheryl Hintzen. The note becomes due on March 8, 2020 and carries a per annum interest rate of 10%. The Company accrued interest for the Six months ended  June 30, 2020 in the amount of $1,321.64.

 

On February 21, 2020 the Company borrowed $25,000 from GPL Ventures with interest at a rate of 10% and a due date of July 31, 2020.

 

On March 12, 2020 the Company agreed to pay Dr. Jason Cohen 1,000,000 shares at a valuation of $.20 per share plus 8 % interest until the shares are issued. The interest accrued through end is $2,147.95 which equates to 10,740 shares.

 

In the month July 13, 2020 the Company borrowed $250,000 from Leonite Capital on a senior convertible note maturing in 6 months. The note had an Original Issue Discount of 10% and carries an interest rate of 12% annually. Additionally the lender received 1,500,000 shares of restricted common shares. The Note converts at the rate of $.10 per share had the Company has reserved 60,000,000 common shares for the conversion. For the three months ended July 31, 2020 $1,369,96 interest was accrued for this note.

 

The following schedule is Notes Payable at July 31, 2020 and April 30, 2020:

 

Description   July 31, 2020     April 30, 2020  
             
Note payable to Cheryl Hintzen due December 11, 2021; interest at 10%   $ 40,000     $ 40,000  
                 
Note Payable to Cheryl Hintzen due March 8, 2020: interest 10%     14,000       14,000  
                 
Note payable to GPL Ventures due March 8, 2020; interest at 10%           25,000  
                 
Note payable Dr. Jason Cohen 1,000,000 shares @ $.20     200,000       200,000  
                 
Note payable escrow attorney for REG A shares     46,900       46,900  
                 
Note Payable to Leonite Capital due January 13, 2021 interest at @10%     277,778        
                 
Total Notes Payable   $ 578,678     $ 340,900  

 

NOTE 9 - SUBSEQUENT EVENTS

 

On August 16, 2020, without either party admitting or denying any wrongdoing, the Company and certain of the Defendants (the “Settling Defendants”) reached an agreement to settle the Action in consideration for the dismissal of the Action, mutual general releases, the return, cancellation and retirement of the Settling Defendants’ 2,500,000 shares of the Company’s common stock and any and all rights to any and all allegedly owned securities or debt of the Company including, but not limited the 150,000 shares of Series B Convertible Preferred Stock the Settling Defendants asserted they owned in a Schedule 13G filing, plus any rights to any Purported Notes. The Company agreed to pay the Defendants the sum of Two Hundred Thousand Dollars ($200,000) by November 5, 2020 and the parties agreed to not make any disparaging statements about each other. Eagle Oil Parties and Green Stream Holdings Inc. have entered into a settlement agreement which either side admits any wrong doing, etc. as per the agreement.

 

 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

The following discussion and analysis should be read in conjunction with our unaudited interim condensed consolidated financial statements and related notes appearing elsewhere in this report on Form 10-Q. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including but not limited to those set forth under “Risk Factors” in our Form 10-K, as filed with the United States Securities and Exchange Commission, or the SEC, on August 19, 2020.

 

Cautionary Note Regarding Forward-Looking Statements

 

The information in this report contains forward-looking statements. All statements other than statements of historical fact made in this report are forward looking. In particular, the statements herein regarding industry prospects and future results of operations or financial position are forward-looking statements. These forward-looking statements can be identified by the use of words such as “believes,” “estimates,” “intends”, “plans”, “could,” “possibly,” “probably,” anticipates,” “projects,” “expects,” “may,” “will,” or “should,” “designed to,” “designed for,” or other variations or similar words or language. No assurances can be given that the future results anticipated by the forward-looking statements will be achieved. Forward-looking statements reflect management’s current expectations and are inherently uncertain. Our actual results may differ significantly from management’s expectations.

 

Although these forward-looking statements reflect the good faith judgment of our management, such statements can only be based upon facts and factors currently known to us. Forward-looking statements are inherently subject to risks and uncertainties, many of which are beyond our control. As a result, our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth below under the caption “Risk Factors.” For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You should not unduly rely on these forward-looking statements, which speak only as of the date on which they were made. They give our expectations regarding the future but are not guarantees. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.

 

Impact of COVID-19

 

In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic which continues to spread throughout the United States and globally and more recently in the United States there has been an increase in cases reported. The Company is monitoring the near term and longer term impacts of COVID-19 and the related business and travel restrictions and changes to behavior intended to reduce its spread, and its impact on operations, financial position, cash flows, inventory, supply chains, purchasing trends, customer payments, and the industry in general, in addition to the impact on its employees. The current COVID-19 pandemic has presented substantial health and economic risks, uncertainties and challenges to our business, the global economy and financial markets. It is not currently possible to predict how long the pandemic will last or the time it will take for economies to return to prior levels. The extent to which COVID-19 impacts our business, operations, financial results and financial condition, and those of our suppliers and customers will depend on future developments which are highly uncertain and cannot be predicted with certainty or clarity, including the duration and continuing severity of the outbreak and additional government actions to contain COVID-19.

 

 

 

 

  13  

 

 

General

 

Although Green Stream Holdings, Inc. ( the “Company”) was organized as a Nevada corporation in 2004, only the financial statements and operations following the Acquisition and Merger Agreement dated February 14, 2019 (the “Merger Agreement”) are relevant for the Company and applicable to its current business strategy. Pursuant to the Acquisition and Merger Agreement the Company acquired 96% of the capital stock of Green Stream Finance, Inc., a Wyoming corporation, in exchange for 600,000 shares of newly created Series B Preferred Stock of the Company. Subsequent to the Acquisition the Company began conducting business solely as a holding company of Green Stream Finance, Inc. Further, following the Acquisition, the Company changed its name, was converted into Wyoming Corporation, and changed its trading symbol to GSFI. Our Company’s current objective is to manage Green Stream Finance, Inc. and conduct business in the solar power energy sector by means of such managing.

 

As of the date of this registration statement, we have not entered into any arrangements creating a reasonable probability that we will acquire a specific property or other assets. The number of properties and other assets that we will acquire will depend upon the number of shares sold and the resulting amount of the net proceeds available for investment in properties and other assets.

 

Results of Operations

   

As of the date of this registration statement, we have not yet commenced business operations, as we are currently in our organizational and development stage. Our management is not aware of any material trends or uncertainties, favorable or unfavorable, other than national economic conditions affecting our targeted portfolio, the alternative energy real estate industry and real estate generally, that may be reasonably anticipated to have a material impact on either our capital resources, or the revenues or incomes to be derived from the operation of our assets.

 

We intend to operate on a fiscal year basis from May 1 to April 30 and report for tax purposes on a fiscal year basis.

 

We have also expended human capital and energy, as well as financial resources on identifying and sourcing future energy-related projects, in accordance with our two business models.

 

Selected Financial Data

 

We are a smaller reporting Company as defined by 17 C.F.R 229(10)(f)(i) and are not required to provide the information under this heading.

   

We have no off-balance sheet arrangements, including arrangements that would affect the liquidity, capital resources, market risk support, and credit risk support or other benefits.

 

The Company currently has no material commitments for capital expenditures.

 

Plan of Operations

 

We intend to pursue the development of our solar greenhouses, sales of Community Solar installations, and development of Company owned Community Solar installations. Development of solar greenhouses is dependent upon or continued relationship with RED and Anthony Morali. We also seek to capitalize on the agreements in principal we have with several commercial buildings owners where we hope to install solar systems where we will market our solar power solution to customers close to those facilities and capitalize on tax incentives for solar power generation and the sale of excess capacity back to local utilities. We will experience a relative increase in liquidity as we receive net offering proceeds and a relative decrease in liquidity as we spend net offering proceeds in connection with the acquisition, development, and operation of our assets. We have identified no additional material internal or external sources of liquidity as of the date of this offering circular.

 

 

 

 

  14  

 

 

We expect to use the net proceeds received from our Regulation A offering in our efforts related to research and development in conjunction with RED and exploration of market opportunities, as well as for working capital and other general corporate purposes. Our anticipated costs include employee salaries and benefits, compensation paid to consultants, capital costs for research and other equipment, costs associated with development activities including travel and administration, legal expenses, sales and marketing costs, general and administrative expenses, and other costs associated with a development-stage company. We do not anticipate increasing the number of employees because the Company intends to use independent contractors; however, this is highly dependent on the nature of our development efforts. We anticipate adding employees in the areas of sales and marketing, and general and administrative functions as required to support our efforts. We expect to incur consulting expenses related to technology development and other efforts as well as legal and related expenses to protect our intellectual property.

 

The amounts that we actually spend for any specific purpose may vary significantly, and will depend on a number of factors including, but not limited to, the pace of progress of our commercialization and development efforts, actual needs with respect to product testing, research and development, market conditions, and changes in or revisions to our marketing strategies, as well as any legal or regulatory changes which may ensue. In addition, we may use a portion of any net proceeds to acquire complementary products, technologies or businesses; however, we do not have plans for any acquisitions at this time. We will have significant discretion in the use of any net proceeds. Investors will be relying on the judgment of our management regarding the application of the proceeds of any sale of our common stock.

  

There is a current market trend of declining prices in solar power cells and solar power modules. Although our solar power greenhouse is projected to have both a significant advantage of both cost and efficiency, which we believe would minimize the effects of the trend, there is no certainty that government, commercial and retail consumers will continue to enter into the solar market.

 

If we are unable to raise the net proceeds from our Regulation A Offering that we believe are needed to fund or business plan, we may be required to scale back our development plans by reducing expenditures for employees, consultants, business development and marketing efforts, and other envisioned expenditures. This could reduce our ability to commercialize our technology or require us to seek further funding earlier, or on less favorable terms, than if we had raised the full amount of the offering.

 

If management is unable to implement its proposed business plan or employ alternative financing strategies, it does not presently have any alternative proposals. In that event, investors should anticipate that their investment may be lost and there may be no ability to profit from this investment.

  

We cannot assure you that our development products will be approved or accepted, that we will ever earn revenues sufficient to support our operations or that we will ever be profitable. Furthermore, since we have no committed source of financing, we cannot assure you that we will be able to raise money as and when we need it to continue our operations. If we cannot raise funds as and when we need them, we may be required to severely curtail, or even to cease our operations.

 

Critical Accounting Policies and Estimates

 

This discussion and analysis of our financial condition and results of operations are based on our financial statements that have been prepared under accounting principle generally accepted in the United States of America. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

A summary of significant accounting policies is included in Note 2 to the consolidated financial statements included in this Registration Statement. Of these policies, we believe that the following items are the most critical in preparing our financial statements.

 

 

 

 

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Use of Estimates

 

Preparing financial statements in conformity with accounting principles generally accepted in the United States of America 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.

  

Stock-Based Compensation

 

The Company accounts for its stock-based compensation in accordance with ASC 718, Compensation — Stock Compensation, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors to be recognized in the financial statements, based on their fair value. The Company measures share-based compensation to consultants in accordance with ASC 505-50, Equity-Based Payments to Non-Employees, and recognizes the fair value of the award over the period the services are rendered or goods are provided. 

  

Most Recent accounting pronouncements

 

Refer to Note 1 in the accompanying consolidated financial statements.

 

Impact of Most Recent Accounting Pronouncements

 

There were no recent accounting pronouncements that have had a material effect on the Company’s financial position or results of operations.

  

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

We are a smaller reporting company as defined by 17 C.F.R. 229 (10)(f)(i) and are not required to provide information under this item.

  

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

Our management carried out an evaluation, with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”).

 

Based upon their evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that a material weakness existed and that the Company’s disclosure controls and procedures are not effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

 

Because of our limited operations we have a small number of employees which prohibits a segregation of duties. As we grow and expand our operations, we intend to engage additional employees and experts as needed. However, there can be no assurance that our operations will expand.

 

Changes in Internal Controls Over Financial Reporting

 

There have not been any significant changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

   

 

 

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PART II - OTHER INFORMATION

  

Item 1. Legal Proceedings.

 

From time to time, we may become involved in various legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may compromise our business.

 

We are currently aware of certain claims against the Company that may result in the Company’s inability to conduct its business in the manner described in this Offering Circular. Subsequent to the Company’s acquisition of Green Stream Finance Inc. (the “Acquisition”), disputes arose between certain holders of the shares of the Company’s preferred stock (the “Preferred Holders”), the Company, and Madeleine Cammarata personally.

 

The Company, Madeleine Cammarata, and Preferred Holders entered a settlement agreement on May 29, 2019 (the “Settlement”). The Settlement required the Preferred Holders to return their preferred shares for cancelation and accept common stock and certain payments. Additionally, the Preferred Holders and others have asserted the existence of certain outstanding promissory notes (the “Notes”) in the amount of approximately $16,427,143, not including accrued interest.

 

The Company, however, believes that the Notes are unverifiable therefore void or voidable. The Settlement was amended by the Parties on October 10, 2019, and the Settlement, as amended, required the Company to include certain provisions regarding the Notes and to qualify its Regulation A Offering by March 9, 2020, or the Company would be required to issue 150,000 shares of Series B Convertible Preferred Stock in an amount that would grant them significant voting rights though would not result in voting control of the Company. Notwithstanding the foregoing, the Preferred Holders claim that the Company broke the Settlement Agreement and that they are entitled to the Series B Preferred Shares. The Company disputes that there was any neglect in the Settlement Agreement by the Company and disputes the Preferred Holders’ entitlement to any shares of the Company’s Series B Preferred Stock.

 

In the event the Eagle Oil Parties file a lawsuit in a court of competent jurisdiction and prevail, the Preferred Holders may be entitled to a total of 150,000 shares Series B Preferred Stock, together with other and further relief awarded by the court.

 

On August 16, 2020, without either party admitting or denying any wrongdoing, the Company and the Eagle Oil Parties reached an agreement to settle the Action in consideration for the dismissal of the Action, mutual general releases, the return of the Eagle Oil Parties 2,500,000 shares of common stock and any and all rights to any and all allegedly owned securities or debt of the Company including, but not limited the 150,000 shares of Series B Convertible Preferred Stock the Eagle Oil Parties asserted they owned in a Schedule 13G filing plus any rights to any Purported Notes. The Company agreed to pay the Eagle Oil Parties the sum of Two Hundred Thousand Dollars ($200,000) by November 5, 2020, and the parties agreed to not make any disparaging statements about each other. A formal settlement agreement and stipulation to dismiss the Action has been entered into the record.

 

 

 

 

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Item 1A. Risk Factors.

 

We are a smaller reporting company as defined by 17 C.F.R. 229 (10)(f)(i) and are not required to provide information under this item.

  

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

In July 2020, the Company borrowed $250,000 from an unrelated third party on a senior convertible note maturing in 6 months. The note had an Original Issue Discount of 10% and carries an interest rate of 12% annually. Additionally, the lender received 1,500,000 shares of restricted common stock. The Note converts at the rate of $.10 per share had the Company has reserved 60,000,000 common shares for the conversion.

 

All of the securities referred to, above, were issued without registration under the Securities Act of 1933, as amended (the “Securities Act”) in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act as provided in Rule 506(b) of Regulation D promulgated thereunder. All of the foregoing securities as well the Common Stock issuable upon conversion or exercise of such securities, have not been registered under the Securities Act or any other applicable securities laws and are deemed restricted securities, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act.

 

   

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not Applicable.

  

Item 5. Other Information.

 

Effective September 14, 2020, Ashley C. Gordon resigned as a Member of the Company’s Board of Directors. Mr. Gordon did not indicate that his decision to resign was a result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices. Mr. Gordon will remain a consultant to the Company.

  

Item 6. Exhibits.

 

See the exhibits listed in the accompanying “Index to Exhibits.”

 

 

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

  GREEN STREAM HOLDINGS, INC.
   
     
Date: September 18, 2020 By: /s/ Madeleine Cammarata
    Madeleine Cammarata, President, Treasurer, Director,
    (Principal Executive Officer, Financial and Accounting Officer)

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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INDEX TO EXHIBITS

 

Exhibit       Incorporated by Reference   Filed or
Furnished
No.   Exhibit Description   Form   Date   Number   Herewith
31.1   Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended               Filed
32.1   Certification of Chief Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.               Furnished*
101.INS   XBRL Instance Document               Filed
101.SCH   XBRL Taxonomy Extension Schema Document               Filed
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document               Filed
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document               Filed
101.LAB   XBRL Taxonomy Extension Label Linkbase Document               Filed
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document               Filed

 

* This exhibit is being furnished rather than filed and shall not be deemed incorporated by reference into any filing, in accordance with Item 601 of Regulation S-X.

 

Copies of this report (including the financial statements) and any of the exhibits referred to above will be furnished at no cost to our shareholders who make a written request to our Corporate Secretary at 16620 Marquez Ave., Pacific Palisades, CA 90272.    

 

 

 

 

 

 

 

 

 

 

 

 

  20  

 

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